The Global Tech Fund (GTF) aim is to support the following three focus pillars:

1. Nurturing Global Champions
2. Driving Investments
3. Catalysing Digital Innovation Ecosystem

1.GTF FOR NURTURING GLOBAL CHAMPIONS
GTF targets local scale-up technology companies who are ready to go into their first global market or expand their existing global market presence via technology innovation and commercialisation of market-driven product/service. We want to see potential Malaysian unicorn in the making. Local technology companies are welcome to set up Centre of Excellence for the benefit of the ecosystem.

2.GTF FOR DRIVING INVESTMENTS IN R&D&C
GTF targets foreign technology companies to set up Centre of Excellence to conduct high value technology innovation/R&D activities leading to the development and commercialisation of market driven, innovative product/service for the global market as well as contribute to ecosystem development. (Source from Wikipedia: A centre of excellence (COE) is a shared facility that provides leadership, best practices, research, support and/or training for a focus area.)

GTF supports local and foreign technology companies to:

• Acquire new knowledge and/or
• Develop local talents in the identified technology area/s and/or
• Research and develop new, innovative and market-driven product/service for regional/global customers and/or
• Innovate on existing product/service transformatively for regional/global customers and/or
• Development of new technologies or innovation on existing technologies that will disrupt the market by the introduction of innovative, market-driven product/service and/or
• Establish Centre/s of Excellence to conduct R&D activities leading to development and commercialisation of innovative product/service and/or
• Develop the Malaysian ecosystem by conducting ecosystem development initiatives.

What are the GTF evaluation criteria for local and global technology companies?

I. TECHNOLOGICAL MERIT

• Solving a problem – does the product/service address a real challenge in the market or society?
• Disruptive – disrupting current methods or current market? Make a real impact in the marketplace or establish a new niche?
• Innovation – Unique selling point or first mover advantage? Has barriers of entry that will make replication difficult for competitors. This innovation creates new market, hence increases new customers, extending existing customer base.
• Proposed approach, technologies, system architecture/design – relevant, scalable, repeatable, flexible, not obsolete, in accordance to international standards.
• Key project challenges and mitigation plan – adequately addressed and well thought off
• Proposed project timeline, activities, deliverables and resource allocation – SMART (specific, measurable, achievable, realistic and timely)
• Composition of all the project personnel – necessary expertise and experience/track record to deliver the project. Involvement of local talents? Effective proposed local talent development plan?
• (If applicable) If the applicant is outsourcing/collaborating with Malaysian incorporated companies and/or universities/research institutions
  • Contribution is impactful and significant to the ecosystem development?
  • Justifications for not outsourcing/ collaborating with Malaysian incorporated entities valid and acceptable. Applicant has laid out plans to develop the ecosystem to address the ecosystem gaps.

II. COMMERCIAL MERIT

• Market –target market and its market size as well as annual growth defined. Applicant demonstrated can achieve a realistic potential market share.
• Competitive – does the applicant have a defensible market position? What other businesses are in competition with this project which are not identified?
• Revenue –demonstrated a realistic, scalable business/revenue model that can achieve explosive growth. Defined clear identifiable revenue streams with good gross/net margins.
• Proven model – demonstrated market validation of market’s acceptance of the proposed product/service.
• Sales & marketing expertise with proven track record to achieve sales target has been adequately identified.
• Proposed strategies (including COE if applicable), plans, approaches, and activities – impactful, significant, sustainable to the growth of Malaysian economy, brings catalytic impact to the ecosystem, creates economic spillover.
• Benefits derived from the project are credible, realistic and impactful and benefiting Malaysians and Malaysia. Proposed long term plan demonstrated the applicant’s long-term commitment in Malaysia.

III. VALUE FOR MONEY

• Proposed targets for KPIs are stretched and is value for money for the requested grant amount. Is the projected ROI low, reasonable or high?
• Integrity in cost estimates. Are the cost estimates reasonable and justifiable?
• How healthy is the company’s financial standing?
• Demonstrated evidence of financial management capabilities
• Adequately addressed the source of funding for this project. If the source of funding is from a 3rd party, the company has provided adequate evidence.

3.Catalysing Digital Innovation Ecosystem
GTF targets the Technology Accelerators who can fulfill the following GTF objective:

• Improve the prospects of innovative, high growth Malaysian technology startups achieving commercial success in international markets as well as scaling up the start-ups
• Assist innovative, high growth Malaysian technology start-ups by delivering a range of impactful activities to develop the capabilities required to realise their economic potential in international markets faster than they otherwise would; and
• Develop Malaysia’s digital ecosystem in the identified technology area/s through its initiatives in providing money, mentor and market access.

What are the GTF evaluation criteria for Technology Accelerator?

1. Expected impact, outcome and benefits of the project
   • Market gap addressed is critical and relevant.
   • Proposed strategies, plans, approaches, services, and activities are critical, impactful, significant, sustainable and achievable in:
     • Achieving the following GTF objectives:
     • Improve the prospects of innovative, high growth Malaysian technology start-ups achieving commercial success in international markets as well as scaling up the start-ups.
     • Assist innovative, high growth Malaysian technology start-ups by delivering a range of impactful activities to develop the capabilities required to realise their economic potential in international markets faster than they otherwise would; and
     • Develop Malaysia’s digital ecosystem in the identified technology area/s
       • Contributing to the growth of the Malaysian economy
       • Bringing catalytic impact to the ecosystem development
       • Leading to economic spillover
   • Benefits derived from the proposed project are credible, realistic and impactful. Proposed long term plan demonstrated the applicant’s long term commitment in Malaysia.
   • Proposed leveraging on network of contacts/partners (if applicable) is critical, significant and impactful towards achieving the GTF’s objectives of catalyzing digital innovation ecosystem and developing innovative, high growth Malaysian technology start-ups.
   • Contribution from proposed outsourcing/collaborating with Malaysian incorporated companies and/or universities/research institutions (if applicable) is impactful and significant to the ecosystem development. If there are any ecosystem gaps, the applicant has laid out credible plans to develop the ecosystem to address the gaps.
2. Management and Business Capability
   • Demonstrated the ability to assist Malaysian technology start-ups to develop the capabilities required to succeed in international markets.
   • Involvement of the key personnel and/or mentors and/or international expert advisors with the necessary expertise and experience / track record to deliver the desired outcomes. Indication of knowledge transfer to the local talents.
   • Proposed business structure and operating model of the technology accelerator and how it plans to foster the development of innovative startups in international markets are sustainable and impactful.
3. Value for money
   • Proposed targets for KPIs are stretched and is value for money for the requested grant amount. Is the projected ROI low, reasonable or high?
   • Integrity in cost estimates. Are the cost estimates reasonable and justifiable?
   • How healthy is the company’s financial standing?
   • Demonstrated evidence of financial management capabilities.
   • Adequately addressed the source of funding for this project. If the source of funding is from a 3rd party, the company has provided adequate evidence.

Applicable for ALL Focus Pillars

Your proposal for GTF funding must address the following desired KPIs:

1. Investment value (RM) – your portion of investment for this project including cash investment and/or benefits-in-kind
2. Export value (RM)
3. Number of new Job Creation in the identified technology area/s with at least average pay of RM6,000/month
4. Number of talent developed and work in the identified technology area/s
5. Number of Centre of Excellence (COE) (mandatory KPI for foreign technology company)
6. Number of innovative, commercial product/s
7. Number of Intellectual Property filed. it is mandatory to deliver at least one Intellectual Property (IP) filed (i.e. patent, trademark, copyright, etc.) during your project duration. If you intend to file patent, please perform prior art search first to confirm the proposed patent is patentable.
8. You are required to propose at most two Ecosystem KPIs that will measure the outcomes of your ecosystem development strategies, plans and activities.

For (3) and (4) above, you may state the direct (i.e. your own staffs) and indirect (i.e. not your staffs) figures.

You are required to maintain project team composition (minus the finance staffs) of at least 50% Malaysians throughout your proposed project funding duration.

Funding Duration

GTF funds your project duration for up to 2 years. We expect all GTF applicants to commit to doing more, over and above their business as usual activities by developing the Malaysian ecosystem. Your proposed plans, strategies, activities are required to bring benefits to Malaysia as well as bring catalytic impact to its ecosystem.

Due to the limited fund size, GTF is awarded to the most competitive proposal that offers value added proposition that is impactful, significant and sustainable to the growth of the following:

• Malaysian economy (i.e. export, creation of new jobs (direct/indirect), talents developed (direct/indirect) to meet talent demand-supply gap)
• Ecosystem development (ecosystem players i.e. industry (technology/nontechnology companies), B40 community and universities/research institutions) – for example, helping small & medium technology companies (SMEs) in solution stacking or complementary solutions packaging and provide them market access channel, helping non-technology companies in digitalization, research collaboration with universities, develop and nurture start-ups
• economic spillover (i.e. assisting non-related Malaysian entities to secure projects overseas, lead to creation of new start-ups, redomiciling foreign corporations to Malaysia).

GTF funds technology innovation activities in the following technology area/s

• Big Data Analytics
• IOT
• Artificial Intelligence/ Deep Learning
• Blockchain
• Cybersecurity
• Robotics
• Drone technology
• Virtual reality/ Augmented reality
• Other emerging technologies

Source: https://mdec.my/digital-economy-initiatives/global-tech-fund-gtf/