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SURUHANJAYA KOMUNIKASI DAN MULTIMEDIA MALAYSIA

MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION

Term of Reference
for
Creative Industry Development Fund
(CIDF-SKMM)

CONTENT & APPLICATIONS DEPARTMENT


BROADBAND MANAGEMENT DIVISION
MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION

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TABLE OF CONTENTS
1.
Creative Industry Development Fund (CIDF-SKMM)
1.1. Introduction 3
1.2. Objectives 3
1.3. Focus area of CIDF-SKMM ... 3
1.4. Eligibility for Funding.. 4
1.5. Assessment Criteria ... 5
1.6. Project Proposal.... 6
1.7 Disbursement of Funds.. 6
1.8. Project Monitoring and Reporting 7
1.9. Intellectual Property... 7
2.0. Confidentiality 7
2.1. Other Terms and Conditions .. 7
2.2. Submission Procedure .. 8
CDIF-SKMM Application Form ..9-10

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1.

Creative Industry
(CIDF-SKMM)

Development

Fund

1.1

Introduction

1.1.1.

The Malaysian Communications and Multimedia Commission


(MCMC/SKMM) has approved the establishment of Creative
Industry Development Fund (CIDF-SKMM) with the budget of
RM100 million for the next three years to fulfill the following
intents:
a)

To develop Malaysia as major global centre and hub for


multimedia information and content services;

b)

To develop creative digital multimedia content as a new


source of growth for Malaysia in achieving the high
income economy status;

c)

To populate the deploy networks with quality, valuebased and meaningful content in the achievement of
national agenda;

d)

To assist the development of television (TV) content


since there is no specific body responsible for the
development of TV content; and

e)

In cognizance with the introduction of Digital Terrestrial


Television Broadcasting (DTTB) and the increase in
broadband penetration.

1.2

Objectives

1.2.1

The CIDF-SKMM is a fund established by the Commission to


render assistance in the form of grants towards achieving the
above national aspiration on the development of local content.

1.2.2

The CIDF-SKMM aims to facilitate and encourage Malaysians


involvement in the creation, production and distribution of
highly creative, original and marketable multimedia content
for domestic and international markets.

1.3

Focus Area of the CIDF-SKMM

1.3.1

As a regulator for the converging communications networks,


the Commission defines its boundaries by introducing the
term networked content which is defined as all text, audio,
audio-accessible over publicly accessible electronic networks,
which includes broadcasting (TV and radio), moving pictures
(exclude cinema distribution and VCD/DVD sales), online
content, mobile/wireless data services (3G, Mobile TV etc) and
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interactive digital TV and other content which can be created,


manipulated, stored, retrieved and communicated through the
use of a network facilities and services.
1.3.2

Certain types of TV programmes have high universal values


and market potential. The local production of these types of
TV programmes should be nurtured through CIDF-SKMM in
order to reduce the dumping of foreign content in local
networks and increase the potential of local content to
penetrate global market.

1.3.3

The CIDF-SKMM will focus on the development of TV Content,


Mobile Content and Internet Content. The types of content
are:
i.

Documentary

ii.

Animation

iii.

Original programming format

iv.

Interactive Children Programming

v.

National Building Programming (1Malaysia)

vi.

New Media

1.4

Eligibility for Funding

1.4.1

For TV broadcast content, the amount of funding available


from the CIDF-SKMM will be up to a maximum of 50% of the
total project cost of RM50,000 per transmission hour,
whichever lower and not exceeding RM1 million.

1.4.2

The grant may be utilised to acquire the followings:

1.4.3

i.

Artists, crew and other relevant manpower;

ii.

Props, costumes and other supporting materials or


facilities;

iii.

Hardware and software;

iv.

Expert consultations; and

v.

Intellectual property registration.

For mobile and broadband content, the terms are similar to


the ones formerly practiced under the Networked Content
Development Grant (NCDG) which include the amount of
funding up to a maximum of 70% of the total project cost and
not exceeding RM1 million. This high funding ratio of 70% to
mobile and broadband content is comparison to 50% in the TV
broadcast content is due to the fact that the TV broadcast
content industry is well established compared to broadband
and mobile content.
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1.4.4

Procurement of infrastructure (consisting of hardware,


software, installation utilities etc) is allowed up to 20% of the
approved amount for both categories of content.

1.4.5

At one time, only one grant can be awarded to one applicant.


The applicant can apply for subsequent grants but not more
than three times based on the successful commercialisation of
the first project funded by the grant.

1.4.6

The following criteria may be considered in determining the


eligibility of the applicant for the grant:

1.5
1.5.1

i.

Applicant must be a Malaysian small and medium sized


company status as defined by SME Corp with at least
51% local shareholding;

ii.

Applicants receive content development fund from other


government agencies not more than 2 times;

iii.

Applicants are not blacklisted or have records of failure


in their past project implementation upon receiving
similar grants from other government agencies;

iv.

Government agencies, academic institution, nongovernment association, enterprise, partnership and


individual are not eligible to apply;

v.

Applicants proposal is in line with objectives and focus


areas of the CIDF-SKMM; and

vi.

The Intellectual Property rights (IP) shall be owned by


the content developers (grant recipients) and the
content has to be new and original.

Assessment Criteria
The following criteria will be considered in assessing the
viability of the project:
a)

Concept of the content should be:


i.

Creative and appealing;

ii.

Unique value proposition; and

iii.

Demonstrate export potential/universality.

b)

Business potential of the proposed content, among


others, is its ability to be exploited through different
platforms/channels, business model, market size,
marketing
strategies,
potential
revenues
and
subscribers.

c)

Operational capacity of the applicants, among others,


is key manpower experiences, technical and technology
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knowledge and strategic collaborations with any third


parties and financial commitments and investments.

1.6

Project Proposal

1.6.1

A comprehensive project proposal together with duly


completed application form is to be submitted to MCMC for
consideration. Companies shall submit the documents and/or
materials to support the evaluation of proposals, including but
not limited to:
a)

Concept of the Project


Focus area, brief description of the content concept,
characters, storyline, episodic synopsis, unique value
proposition and universality.

b)

Business Potential
Business model, three years revenue projection, target
market, marketing strategy, anticipated market sizes,
export potential, multi-platform distribution.

c)

Operational Capacity
Brief company track record, future manpower plan, brief
resume of key personnel, current business activities,
technology and technical arrangement, financial
commitments
and
investments,
third
party
collaboration (if any).

d)

Details of Project Costing


Procurement of hardware and software, manpower cost
and other direct cost. (Please incorporate the marketing
cost of the project, however it will not be covered under
the CIDF-SKMM funding).

e)

Project Timeline (not more than 12 months)

1.7

Disbursement of Funds

1.7.1

Payment will be disbursed based on the terms set by the


Commission and mutually agreed milestones. The proposed
terms are as follows:
a)

The initial 30% of the grant to be disbursed upon the


formalisation of the contract.

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b)

The balance of 50% of the grant to be drawn down in


phases based on delivery and acceptance of
deliverables.

c)

The final 20% of the grant to be disbursed upon


submission of the final report.

1.7.2

In case the actual spending is less than the projected cost,


the difference should be returned to the Commission or
deducted from the final 20% disbursement.

1.8

Project Monitoring and Reporting

1.8.1

Quarterly progress reports are to be submitted to CIDF-SKMM


Secretariat and monthly meetings shall be held to evaluate
progress in terms of timeliness and quality.

1.8.2

Site visit for auditing purpose will be carried out as and when
necessary.

1.8.3

Progress reports will be presented to the Content


Development Committee (CDC) to update and recommend
next step actions to be taken to ensure successful completion
of the projects.

1.9

Intellectual Property

1.9.1

If more than one party is involved in the project, a binding


letter of understanding between project partners, setting out
existing and proposed ownership, disposition of intellectual
property rights associated with the project, and exploitation of
the project result must be submitted to MCMC before funds
are disbursed.

1.9.2

The IP shall be owned by the content developers with MCMC


being recognised as a partner in the development of the
content and would be allowed to use the content for other
purposes except for commercial use.

2.0

Confidentiality

2.0.1

All information provided by the applicants shall be treated as


strictly confidential.

2.1

Other Terms and Conditions

2.1.1

Successful applicants shall enter into a contract with MCMC


upon approval.
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2.1.2

MCMC shall seek full reimbursement of funds disbursed in the


event of incompletion of project or termination due to
contravention of terms or failure to meet milestones
satisfactorily.

2.1.3

MCMC shall be acknowledged in the credits upon successful


distribution/commercialisation of the product.

2.2

Submission Procedure

2.2.1

Applicants have to use the application form provided by


MCMC. Forms are available on the website.

2.2.2

All fully completed applications will be processed and


applicants will be notified within 2 months of submission of
COMPLETE APPLICATION.

2.2.3

All inquiries and communications about CIDF-SKMM should be


directed to:
Director
Content & Applications Department
Broadband Management Division
Malaysian Communications and Multimedia Commission
Tel: +60 3 8688 8000
Fax: +60 3 8688 8469
Email: cidf@cmc.gov.my
Website: www.skmm.gov.my

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APPLICATION FORM
CREATIVE INDUSTRY DEVELOPMENT FUND (CIDF-SKMM)
A

APPLICANTS DATA

1.

Company Name

2.

Address

3.

Contact Person

4.

Designation

5.

Contact Number

PROJECT DETAILS

Fax:

1.
Project Name
Documentary
Animation
6.

Focus Area

Original Programming Format


Interactive Children Programming
Nation Building Programming (1Malaysia)
New Media

7.

Brief description of Project


(Please attach proposal
and supporting documents
as requested)

8.

Commencement Date

9.

Proposed Implementation
Period

CHECKLIST

Months

Malaysian small and medium sized company status as defined by SME Corp
Received content development fund from other government agencies not more
than 2 times
Project Proposal
A hardcopy of the companys latest audited financial statement (at least 2 years)
A hardcopy of the c ompanys profile (please include Form 9, Form 24, Form 49
and any relevant licenses)

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FINANCIAL DETAILS

Total Project Cost

RM

Total Grant Requested

RM

Total Grant Requested / Total Project Cost Ratio


max of 50% for TV content
max of 70% for Mobile & Internet content

DECLARATION
For Companies
a)

I, ___________________________ (IC.No:__________________) have been


duly authorised by the board of directors of (the Company) to execute this
declaration and hereby declare that the information contained in t his
application forwarded to the Malaysian Communications and Multimedia
Commission (MCMC) is true, accurate and complete to the best of my
knowledge and belief and that I have not withheld/distorted any material facts.

b)

I also declare that the company is free from any litigation, pending litigation,
claims, demands or actions pertaining to the proposed project. I understand
that if the grant is obtained by false or misleading statements, the company
may be prosecuted and in addition, MCMC may, at its discretion, withdraw the
grant and recover immediately from my company any amount of the grant that
may have been disbursed.

c)

I also agree to abide to the terms and conditions of the CIDF-SKMM.

d)

I acknowledge that the decision of MCMC shall be final and shall not be subject
to any appeal.

Signature:
Designation:

Date of Application:
Registered Company Stamp:

Name (in BLOCK letters):

For MCMC use only

CAAD COMMENTS
Date:
Recommend to be tabled to CIDF-SKMM Business and Technical Committee
To resubmit - incomplete
Reject

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