AIF Guidelines

APPLIED INNOVATION FUND (AIF)
GUIDELINES
Fund Division
Ministry of Science, Technology and Innovation
Level 4, Block C4, Complex C, Federal Government Administrative Centre 62662
Putrajaya
Tel.: 603 – 8885 8309 / 8367 / 8317 / 8552
E-mail: urusetia.aif@mosti.gov.my
APPLIED INNOVATION FUND (AIF) GUIDELINES
(17 JUNE 2021)
CHRONOLOGY OF APPLIED INNOVATION FUND GUIDELINES
No. Amendment Description of Amendment Date of

Enforcement
1. - Initial publication 1 January 2021
2. Paragraph 4: Addition of applicant groups
Categories of from Sole
Applicants Proprietorship/Partnership/
Limited Liability
Partnership
3. Paragraph 5.2: For a collaborating applicant,
Eligibility documentary proof shall consist
Criteria of at least a Letter of Acceptance
for Application (LoA) or its equivalent.
4. Paragraph 10: Paragraph 10.1:
Scope of
Funding Administration
i. Appointment of a Research
Officer (RO) is permitted for a
Sole
1 March 2021
Proprietorship/Partnership/Limit
ed Liability Partnership applicant
and the applicant shall
collaborate with IHL.
ii. Transport expenses associated
with the project are permitted but
shall not exceed 10% of the total
fund approved by MOSTI.
Paragraph 10.2
i. The fund recipients are
permitted to disburse allocations
to collaboration partners for the
items stated in Table 4.
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No. Amendment Description of Amendment Date of

Enforcement
5. Paragraph 6: Table 1 Amendments:
Application AIF evaluation criteria
Process
6. Amendment of 8.4:
Paragraph
8: 8.4 Registration of a minimum of
Research one (1) intellectual property right
Output related to the scope of the
project (if relevant).
to: 17 June 2021
8.4 Registration of a minimum of

one (1) intellectual property right
related to the scope of the
project is encouraged.
7. Paragraph 10: Amendment to funded

Scope of item
Funding
Pilot plant/prototype:
Engineering and design
activities (man-hours) excluding
the salaries of employees under
the supervision of the applicant.
MOSTI reserves the right to amend these guidelines at any time without any notice.
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TABLE OF CONTENTS
1. INTRODUCTION...................................................................................................... 5
2. OBJECTIVES .......................................................................................................... 5
3. PRIORITY AREAS ................................................................................................... 6
4. CATEGORIES OF APPLICANTS............................................................................ 6
5. ELIGIBILITY CRITERIA .......................................................................................... 6
6. APPLICATION PROCESS ...................................................................................... 8
7. PREPARATION OF CONTRACT AND FIRST DISBURSEMENT ........................ 10
8. RESEARCH OUTPUT ........................................................................................... 11
9. QUANTUM AND PERIOD OF FUNDING .............................................................. 11
10. SCOPE OF FUNDING .......................................................................................... 11
11. PAYMENT ............................................................................................................ 17
12. PROJECT MONITORING..................................................................................... 18
13. OWNERSHIP AND USE OF R&D EQUIPMENT.................................................. 19
14. INTELLECTUAL PROPERTY (IP) ....................................................................... 19
15. INTELLECTUAL PROPERTY INCENTIVES........................................................ 20
16. TERMINATION ..................................................................................................... 20
17. STATEMENT OF EXPENDITURE AND UNEXPENDED FUND .......................... 21
18. MALAYSIAN CODE OF RESPONSIBLE CONDUCT IN RESEARCH ................ 21
19. ETHICAL APPROVAL, INSTITUTIONAL BIOSAFETY COMMITTEE (IBC)
APPROVAL/NOTIFICATION AND COMPLIANCE WITH THE RELEVANT
REGULATIONS .................................................................................................... 21
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1. INTRODUCTION
Innovation contributes to increase productivity and economic growth as well as

societal well-being. It can be a combination, merging or integration of technologies
that leads to a new product, process, system or service even an enhancement of
existing technology through increased value or reduced costs.
The expected outcome of funding from the Applied Innovation Fund (AIF) is a new
product, process, system or intellectual property rights to benefit customers,
businesses and society.
Being mindful of the importance of innovation to wealth creation and social well-
being requires the Government to promote the idea of innovation to nurture a
scientific and innovative society.
2. OBJECTIVES
The aims of this fund are to increase innovator participation in innovative activities
and to promote technological innovation of new products, processes, systems or
services with commercial potential.
Technology Readiness Level (TRL), which is developed by the National

Aeronautics and Space Administration (NASA), is a method to determine the
maturity of technologies during the acquisition phase of a programme. Proposed
projects under the AIF must be at TRL 2 or TRL 3 and attain at least a level higher
than that of the current development of the project as shown in Figure 1, the details
of which are as set out in Appendix 1 (TRL 1 – 9).
Figure 1: Scope of AIF according to TRL
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3. PRIORITY AREAS
3.1 Project application shall encompass the 10-10 Malaysia Science, Technology,
Innovation & Economy (MySTIE) Framework by the Academy of Sciences
Malaysia. The socio-economic drivers are as follows and the priority areas are
as set out in Appendix 2.
i. Energy;
ii. Education;
iii. Water and Food;
iv. Agriculture and Forestry;
v. Environment and Biodiversity;
vi. Smart Cities and Transportation;
vii. Medical and Healthcare;
viii. Culture, Arts and Tourism;
ix. Business and Financial Services;
x. Smart Technology and Systems (Next-Generation Engineering and
Manufacturing)
4. CATEGORIES OF APPLICANTS
4.1 The AIF is available to:
i. Individuals;
ii. Sole Proprietorships/Partnerships/Limited Liability Partnerships; and
iii. Registered Associations/Cooperatives/NGOs
5. ELIGIBILITY CRITERIA
5.1 Sole Proprietorships/Partnerships/Limited Liability Partnerships shall comply
with the following conditions:
i. The businesses are registered with the Companies Commission of Malaysia
pursuant to the Registration of Businesses Act 1956 and Partnership Act
1961; or
ii. The businesses in Sabah and Sarawak are registered with the local
authorities; or
iii. The businesses of professional service providers shall also be registered
with statutory bodies.
5.2 The eligibility criteria for AIF application are as follows:

i. The proposed project shall contain elements of technological innovation
directed towards commercialization of a product, process, system or
innovative service.
ii. The project focuses on the development of a new or existing product,
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process, system or service with commercial potential.

iii. Project team members are to present evidence of their technical proficiency
in executing the proposed project. Curriculum vitae and supporting
documents of the project leader and each team member shall also be
presented.
iv. If a project team member is from a different institution, a letter of consent
from the head of department shall be submitted.
v. Only Malaysians are eligible to apply and lead the project. Non- citizens
from any international organizations or expatriates employed by any
registered association/cooperative/NGO may participate as project team
members.
vi. The project leader is permitted to lead only one project approved by MOSTI
at any one time.
vii. The project must be executed in Malaysia.
viii. Applicants that are individuals, registered associations, cooperatives or
NGOs are encouraged to collaborate with experts/researchers from public
and private higher education institutions or government research institutes
(GRIs) or science, technology and innovation (STI) agencies (documentary
evidence of at least a Letter of Acceptance (LoA) – or its equivalent).
ix. Applicants that are Sole Proprietorships, Partnerships and Limited Liability
Partnerships are also encouraged to collaborate with public and private
higher education institutions, GRIs or STI agencies. Should an applicant
intend to appoint a Research Officer, the applicant shall collaborate with a
public or private higher education institution (documentary evidence of at
least a Letter of Acceptance (LoA) – or its equivalent).
x. Applicants must have not been convicted of fraud nor declared bankrupt.
5.3 Individuals, Sole Proprietorships, Partnerships, Limited Liability Partnerships,

Registered Associations, Cooperatives or NGOs shall comply with the
following conditions in their AIF applications:
i. Applicants that are associations/cooperatives/NGOs shall be registered
with/recognized by the Government.
ii. Applicants shall provide proof of financial capacity to support the portion of
project costs that is not funded under this grant (example: bank statements
for the last three (3) months).
iii. Applications from individuals shall be accompanied by a letter of support
from a referee (referee being authorized body or individual).
iv. The project leader shall notify MOSTI in the event funds are received from
other parties for the same project.
5.4 Ineligible applications:
i. Work, activities and initiatives under the jurisdiction of a ministry,
department or agency
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ii. Applications from a research institute, public or private higher education

institution and STI organization
iii. Proposed project that is identical to a project previously approved and
completed
6. APPLICATION PROCESS
6.1 There are three (3) stages to AIF application, as set out in Figure 2:
Figure 2: Stages of Application Process
6.2 Stage 1: Application

i. Applicants are required to complete and submit the application form
together with supporting documents as set out in Appendix 3
to http://edana.mosti.gov.my within the period stipulated.
ii. Applicants must declare that the proposed project has never been funded
by any funding body.
iii. Applications will be vetted by MOSTI to ensure that the applications and
documents submitted are complete and fulfil the basic criteria for AIF
application. Incomplete applications will be returned to the applicants.
6.3 Stage 2: Evaluation

i. Complete applications will be assessed by the Jawatankuasa Penilaian
Dana (JPD) based on the criteria set out in Table 1.
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Table 1: AIF Evaluation Criteria
ii. Applicants will be invited to present their project proposals to the JPD. If
needed, they will be requested to amend or revise their proposals for
improvement. Due diligence will be carried out after the evaluation process
for validation (if needed).
iii. The result and recommendation of the JPD will be presented to the
committee at MOSTI level.
6.4 Stage 3: Notification of Result

i. Applicants will be notified of their application results via the eDana system
or e-mail.
ii. Successful applicants are to submit their acceptance or rejection of the offer
via the eDana system or e-mail.
iii. The decision of the committee at MOSTI level is FINAL.
iv. The process of evaluation up to notification of result shall take 45 days after
receipt of the complete documentations from applicants. The work flow
process is as set out in Figure 3.
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Figure 3: Work Flow Process
7. PREPARATION OF CONTRACT AND FIRST DISBURSEMENT

7.1 The successful applicants shall submit the following documents after receiving
a letter of offer from MOSTI.
i. Letter of Acceptance of offer;
ii. Copy of bank details (the applicants are required to have a designated
bank account for the purpose of project execution);
iii. Copy of e-vendor registration with details of designated bank account (if
applicable);
iv. Details of milestones for the allocation approved; and
v. Agreement between collaborators stating scope of work, IP ownership and
purchase of equipment during project execution. The agreement shall be
submitted to MOSTI within 30 days of the date of the letter of offer. MOSTI
reserves the right to withdraw its approval if the applicants fail to submit
the agreement.
7.2 The fund recipients will be invited to a discussion on the milestone details
based on the allocation approved by MOSTI.
7.3 Only the applicant (individual) and authorized officer of the Sole
Proprietorship/Partnership/Limited Liability Partnership/Registered
Association/Cooperative/NGO shall have the right to sign the AIF agreement.
7.4 The agreement will be signed by the top management of MOSTI and returned
to the fund recipients for stamping.
7.5 The first disbursement to the fund recipients will be made once MOSTI has
received the duly stamped agreement.
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8. RESEARCH OUTPUT
8.1 The expected output of the funding is a new product, process, system or
intellectual property that can benefit customers, businesses and society.
8.2 The output of the proposed research project must be related to the project
objectives and there has to be accurate means to determine/measure the
success of the project.
8.3 Project must produce a technology, process or product with proven feasibility
to ensure the project continues to its subsequent phase.
8.4 Registration of a minimum of one (1) intellectual property related to the scope
of the project (if relevant).
9. QUANTUM AND PERIOD OF FUNDING
MOSTI will fund the project based on Table 2.
Table 2: Quantum and Period of Funding
Category Funding Allocation (RM) Period

Method (Months)
Sole Full Maximum 500,000.00 12 – 18
Proprietorship/ disbursement months
Partnership/
Limited Liability
Partnership/
Registered
Association/
Cooperative/
NGO
Individual
10. SCOPE OF FUNDING

10.1 The scope of funding for the AIF is as set out in Table 3:
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Table 3: Scope of Funding for the AIF
SCOPE FUNDED BY MOSTI NOT FUNDED BY NOTE

MOSTI
G01: • Equipment and • Capital assets such as • If relevant
Pilot supporting infrastructure land, building, vehicle • Not exceeding
plant/prototype directly related to the and furniture 40% of fund
pilot plant or up-scaling • Rental of space, land approved by
prototype and building MOSTI
• Engineering and design • Laboratory apparatus
activities (man-hours) not • Equipment
including the salaries of maintenance
employees under the
supervision of the • Personal computer,
applicant laptop, printer, scanner,
• Rental/Minor repair of toner, etc.
equipment
G02: • Screening • Overhead costs (bills, • If relevant
Pre-clinical • Sampling etc.)
trial/clinical • Payment for • Rental of facilities
trial/non-clinical volunteers/subjects
trial/field • Data analysis (man-
trial/stress hours) – 20% of total
test/user approved
acceptance test
G03: • For registration in • Maintenance • If relevant

Intellectual Malaysia only, • Patent Cooperation
Property (IP) including drafting Treaty (PCT)
service
• IP resulting from
the project
i) patent
ii) industrial design
• IP incentives
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MOSTI
G04: • Sample development • Incentive for • If relevant
Market study cost respondents • Not exceeding
and evaluation • Data analysis (man- • Fees for rental of 10% of fund
hours) facilities and exhibition approved by
• Market validation valued MOSTI
up to RM15,000 • Sample size shall
• Payment for be in accordance
enumerators with statistical
(charge/sample) standard
G05: • Certification registration • Training • If relevant

Compliance • Compliance with
with regulations standards
and standards (local/international)
• Product testing for
certification
• GMP, HALAL and
HACCP
G06: • Consultation • Production outsourcing • If relevant
Special services (agreement/letter of • Travel and transport • Not exceeding
intent must be submitted • Arrangement of 20% of total fund
together with the project meetings approved by
proposal and • Journal subscriptions MOSTI
consultation particulars • Conference fees • Companies that
to be stated) apply for
• Consultants for market budget for
study and evaluation special services
(consultant for
market study
and evaluation)
are not eligible
to apply for
allocation under
the scope of
market study
and evaluation
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MOSTI
G07: • Raw materials • Product design and • If relevant
Raw materials/ • Consumables packaging • Not exceeding
consumables • Brochure 20% of total
directly related • Advertisement fund approved
to the project • Website design and by MOSTI
development
• Product launches
• Stationeries such as
paper, books
G08: Institute of Higher • Management fees • If relevant

Administration Learning (IHL) • Allowance/Bonus for
collaborator only management and
• Appointment of technical staff
Graduate Research • Office rental
Assistant (GRA) • Utilities such as
directly involved in telephone, broadband,
project water and electricity
• Allowance of GRA in bills
accordance with
academic qualification,
i.e. RM3,200 for PhD
holder and RM3,000
for master’s degree
holder. This allowance
includes SOCSO/EPF
deduction.
Application from Sole • Only applicant
Proprietorship/ that is Sole
Partnership/ Limited Proprietorship/
Liability Partnership Partnership/
• Appointment of Limited Liability
Research Officer (RO) Partnership shall
directly involved in collaborate with
project IHL.
• Allowance of RO in • Definition
accordance with of RO:
academic qualification: i. Individual
a) Bachelor’s degree appointed to
related to scope of assist in
project and research
allowance of activities
RM3,000 ii. Must have
academic
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MOSTI
b) Master’s qualification
degree/PhD related pertinent to the
to scope of project R&D project
and allowance of iii. Not an
RM3,200 employee in
applicants’
• Allowance inclusive of company
deductions for
SOCSO/EPF
Travel and transport Not exceeding 10%
expenditure related to of total fund
project approved by
MOSTI
Domestic travel and
transport expenses to
attend meetings or visits
as directed by MOSTI
Travel is limited to
economy class using the
shortest direct route of
airline service providers
except in pressing
circumstances
The entity shall apply for

MOSTI approval for travel
and transport claims other
than the items stated
above
G09: • Local and overseas - •If relevant
Technology/IP • Potential for up- scaling •Not exceeding
acquisition • Must prepare acquisition 50% of total fund
agreement/details of the approved by
technology and IP MOSTI
acquired
• Training related to
transfer of technology
carried out domestically
10.2 The fund recipients are permitted to disburse the allocation to collaboration
partners for items as set out in Table 4.
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Table 4: Scope of Funding Permitted for Collaboration
Scope Note
Pilot plant/Prototype Up to 20% of overall cost
Pre-clinical trial/clinical trial/field approved by MOSTI
trial/non-clinical trial/stress
test/user acceptance test
Raw materials/consumables
directly
related to the project
10.3 Procedure for purchase of equipment and services:
10.3.1 The fund recipients shall submit the quotation or proof of any
purchase or procurement of services such as consultation services;
10.3.2 Purchase of equipment or procurement of services in amounts

exceeding RM100,000.00 must be accompanied by 3 or more
quotations with proof. Breaking down the purchase of equipment or
procurement of services is not permitted;
10.3.3 All monetary transactions must be in order. All documentation for the
expenditures with expenses documents, including invoices, purchase
orders, delivery orders and receipts must be attached;
10.3.4 Purchase of equipment or procurement of services from any

company/institution, subsidiary or associated company are not
permitted;
10.3.5 The purchase order/quotation submitted must be based on the current

market price. Mark-up from the original price is not permitted;
10.3.6 The fund recipients shall not have any conflict of interest with the
collaborators and suppliers of research materials, equipment and
services for the project; and
10.3.7 Pertinent issues not included in clauses 10.3.1 to 10.3.6 must be

brought before the relevant committee at MOSTI for consideration and
approval.
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11. PAYMENT
11.1 Payment shall be by disbursement.
11.2 Advance payment will be processed after MOSTI receives the duly stamped
agreement.
11.3 Subsequent payments shall be based on the schedule of payment set out in
the agreement. Payments will be disbursed in stages based on milestones
achieved and project expenditure performance. The approved method of
payment is as set out in Figure 4.
11.4 The Government has the right to amend the allocation that has been
approved and will stipulate value of the first payment based on the cost of
the first milestone and recommendation by the panels.
Figure 4: Payment Method of Approved Application
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12. PROJECT MONITORING
12.1 The fund recipients are required to submit periodic reports based on project
milestone achievements (technical report and audited financial report) as well
as documents stated in the agreement. If the project shows non-compliance
with the agreement and non-adherence to the timeline stipulated, MOSTI has
the right to suspend the project or withdraw the approved funds.
12.2 Project monitoring activities cover meetings (physical or online) and site visits
to verify the progress of the project.
12.3 Payments will be made based on the performance of project milestones and
completed documents as per the terms and conditions set out in the project
agreement.
12.4 The project can be carried out once the project agreement is executed by
both parties and duly stamped. Expenditure made before the agreement is
duly stamped may not be claimed and will not be deemed to be part of the
project cost.
12.5 The fund recipients are required to submit the End of Project (EOP) Report
to MOSTI within three (3) months of the end date of the project. A project
completion letter will be issued once EOP verification is received from
MOSTI. All project output must include the name of MOSTI as fund provider.
The EOP Report shall contain the following information:
i. Deliverables and final project output;

ii. Achievement of project objectives;
iii. Commercialization/transfer of technology planning;
iv. Project benefits;
v. Impact of project on the nation; and
vi. List of equipment/facilities purchased
12.6 Notwithstanding the completion of the project, MOSTI has the right:
i. To obtain regular information on the project progress;
ii. To invite the fund recipients for seminar presentation;
iii. To invite the fund recipients to hold an exhibition; or
iv. To conduct a visit to the project location.
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12.7 All changes/variations to the project shall be subject to the consent in writing
from MOSTI. The fund recipients shall submit an application in writing at least
one (1) month for consideration and approval of MOSTI before the
changes/variations are affected.
Figure 5: Monitoring Work Flow Process
Progress Report
(milestone distance ≥
6 months)
•Submission of • Submission of
report report
• Monitoring •Submission of • Monitoring
meeting/site report meeting/site
• Payment • Monitoring • Payment
meeting/site visit
Milestone 1 Milestone 2
Report Report
13. OWNERSHIP AND USE OF R&D EQUIPMENT

13.1 All equipment purchased under the fund scheme shall be recorded and
tagged with the project number for purposes of monitoring and verification.
Such equipment belongs to the fund recipients and maintenance of the
equipment shall be the responsibility of the fund recipients after completion
of the project. However, the said equipment is not for the sole use of the fund
recipients and must be available for use by other research organizations
when needed.
13.2 The equipment purchased must be recorded in the Government repository

system and information on such equipment must be updated until expiry of
the agreement.
13.3 The equipment purchased using this fund may not be sold, transferred and
disposed of within two (2) years of completion of project.
14. INTELLECTUAL PROPERTY (IP)

14.1 Registration of the end product developed under the AIF is encouraged to be
in accordance with intellectual property laws and ownership (if needed).
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14.2 The fund recipients shall inform the Government in writing, through an official
letter or e-mail, of the existence of such project intellectual property no later
than sixty (60) days from the date of project completion.
14.3 The fund recipients shall obtain Government approval before continuing with
any licensing and commercialisation activities prior to expiry of the
agreement.
14.4 The fund recipients may apply to the Government to obtain ownership of the
project intellectual property wherein the Government shall have full discretion
to consider such application from the fund recipients.
14.5 MOSTI has the right to withdraw the intellectual property obtained, in the
event the fund recipients fail to develop or improve the technology developed
prior to this, 12 to 24 months after the date of project completion. This is to
ensure that the technology as well as products developed progress towards
commercialisation.
15. INTELLECTUAL PROPERTY INCENTIVES

15.1 The applicant may apply for the following incentives after completion of
project, provided that allocation for the incentives was stated in the fund
application:
i. Incentive for disclosure of project intellectual property: RM500.00;
ii. Incentive for filing of project intellectual property patent: RM5,000.00;
and
iii. Incentive for granting of project intellectual property patent:
RM10,000.00 Payment of such incentives shall be on a one-off basis.
15.2 MOSTI will disburse payments for:
i. Incentive for disclosure of project intellectual property after receiving
proof of project intellectual property disclosure;
ii. Incentive for filing of intellectual property patent after receiving proof of
filing of project intellectual property patent; and
iii. Incentive for granting of project intellectual property ownership after
receiving proof of patent granted.
16. TERMINATION
16.1 MOSTI has the right to withdraw the fund in the event of the following:
i. Any false information provided by the fund recipients;
ii. Change in project scope without written consent from MOSTI;
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iii. Change in project leader without written consent from MOSTI;

iv. Any misuse of the fund;
v. Project achievement/progress is not as stated in the agreement; and
vi. Breach of any clause in the agreement.
16.2 If the project is terminated by MOSTI, the fund recipients shall pay back the
amount of fund already disbursed.
16.3 MOSTI has the right, at any time, to revise, suspend or withdraw the approval
of any fund or payment.
16.4 MOSTI has the right to make a claim against the fund recipients for any loss
arises from any default on the part of the fund recipients as stated in the
agreement.
17. STATEMENT OF EXPENDITURE AND UNEXPENDED FUND

17.1 MOSTI has the right to request the fund recipients to hand over a statement
of expenditure at any time during the project period or to provide additional
information in support of any interim or final expenditure.
17.2 The fund recipients must return the unexpended fund to MOSTI within three
(3) months of the date of project completion. For a project that is terminated,
the fund recipients shall or must return to MOSTI the amount of fund
disbursed within one (1) month of the date of notice of termination.
18. MALAYSIAN CODE OF RESPONSIBLE CONDUCT IN RESEARCH

Those who are involved in the project implementation must comply with the code
and practices prescribed in the Malaysian Code of Responsible Conduct in
Research.
19. ETHICAL APPROVAL, INSTITUTIONAL BIOSAFETY COMMITTEE (IBC)

APPROVAL/NOTIFICATION AND COMPLIANCE WITH THE RELEVANT
REGULATIONS
19.1 The project leader shall or must obtain the approval and extend a copy of the
same from the relevant authority if necessary.
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19.2 For a project requiring testing on humans or animals, the project leader shall
or must obtain ethical clearance and submit a copy from the relevant
authority.
19.3 For a project involving living modified organisms (LMOs), the project leader
shall or must obtain clearance from the Institutional Biosafety
Committee/relevant body and submit a copy of the application for approval of
the National Biosafety Board.
19.4 Information on the use of biological resources and associated traditional
knowledge shall or must be completed by filling in the form set out in
Appendix 4.
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Appendix 1
TECHNOLOGY READINESS LEVELS
TRL Description Characteristics

TRL 1 Basic principle • Technology research
• Pure science begins translation to R&D
TRL 2 Formulation of • Early studies for application formulation
concept • Invention & practical application begins
TRL 3 Experimental proof of • Analytical validation & proof of concept

concept • Start active research & development
TRL 4 Lab validation • Validation in laboratory environment

• Ready to begin bridge for technology
transition
TRL 5 Validation in real • Validation in relevant environment
environment • Ready to enter technology development
TRL 6 Demonstration in real • Demonstrated in relevant environment
environment • Ready to enter system development
TRL 7 Demonstration of • Demonstrated in operational environment
prototype • Ready for limited production decision
TRL 8 Product/System • Compliant, qualified & test/demo complete
complete and • Ready for operational evaluation
qualified
TRL 9 Product/System • Completed operational evaluation
proven • Ready for full-rate
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Appendix 2
PRIORITY AREAS OF APPLIED INNOVATION FUND
SOCIO-ECONOMIC DRIVER PRIORITY AREA

Smart technology and • Advanced materials for a circular economy and
systems (next- generation sustainable society
engineering and • Next-gen smart factories
manufacturing) • Manufacturing of smart devices and technology
development
Medical and health care • Digital health
• Precision medicine
• Clinical trial hub for developing countries
Agriculture and forestry • High-value seafood
• Premium tropical fruits
• Local agricultural input
• Smart supply chain management for sustainable
forest
Water and food • Premium halal food
• Local superfood
• Integrated water resource management
Smart cities and transport • Integrated urban infrastructure and infostructure
management
• Smart systems for connected -rural-urban
• Human-centred design and analytics
Energy • Diversified renewable energy
• Energy storage system
• Microgrid
Environment and biodiversity • Precision biodiversity
• Innovative eco-products from waste
Business and financial • Subscription business model and sharing
services platform
• Digitalised & autonomous services
• Fintech in Islamic finance
Education • Personalised and experiential learning
• Micro-credentials
• Global online learning: promoting local content
Culture, arts and tourism • Creative and content heritage

• Digitalised tourism
• High-value tourism
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Appendix 3
i. SOLE PROPRIETORSHIP/PARTNERSHIP/LIMITED LIABILITY PARTNERSHIP
Sole Proprietorship Type of Mode of Applicant Collaborator
/Partnership/ Limited Liability Document Submission (if
Partnership applicable)
1 Signed AIF application form with Digital Upload to eDana √
declaration witnessed by a copy & & present during
Commissioner for Oaths (1 copy) printed evaluation
copy session
2 Registration Certificate form Digital copy Upload to √ √
(Registration of Businesses Act eDana
1956) (certified copy by
Commissioner for
Oaths)
3 Detailed curricula vitae Digital copy Upload to √ √
of project team members eDana
5 Contract/Letter of Acceptance or Digital copy Upload to √

equivalent between entity and eDana
Collaborator
6 Contract/Letter of Digital copy Upload to √
acceptance between entity and eDana
consultant
7 Insolvency search (of Digital copy Upload to √ √
company and all project team eDana
members)
8 One quotation for each type of Digital copy Upload to √
equipment listed eDana
for purchase
9 Latest audited financial report Digital copy Upload to √
(annual return, profit and loss eDana
statement, cash flow and others)
10 Letter of consent from head of Digital copy Upload to √ √
department (if project team eDana
members are from different
institutions) – if Applicable
25
(17 JUNE 2021)
ii. REGISTERED COOPERATIVE
Registered Cooperative Type of Mode of Applicant Collaborator

Document Submission (if
1 Signed AIF application form with Digital copy Upload to eDana & √
declaration witnessed by a & printed present during
Commissioner for Oaths (1 copy) copy evaluation session
2 Registration Certificate Digital copy Upload to eDana √ √
(Cooperative Societies Act 1993)
(copy certified by Commissioner
for
Oaths)
3 Letter of confirmation from main Digital copy Upload to eDana √ √
cooperative if
application is from branch
4 Minutes of latest annual Digital copy Upload to eDana √ √
general meeting
5 Detailed curricula vitae Digital copy Upload to eDana √ √
of project team members
6 Contract/Letter of Acceptance or Digital copy Upload to eDana √
equivalent between entity and
Collaborator
7 Contract/Letter of Digital copy Upload to eDana √
acceptance between entity and
consultant
8 Insolvency search (of Digital copy Upload to eDana √ √
company and all project team
members)
9 Ethical/IBC approval or Digital copy Upload to √
notification (if eDana
applicable)
10 One quotation for each type of Digital copy Upload to √
for purchase
11 Latest audited financial report Digital copy Upload to √ √
statement, cash flow and
others)
institutions) – if applicable
26
(17 JUNE 2021)
iii. REGISTERED ASSOCIATION
Registered Association Type of Mode of Applicant Collaborator

Document Submission (if applicable)
1 Signed AIF application form with Digital Upload to eDana √
declaration witnessed by a copy & & present during
Commissioner for Oaths (1 copy) printed evaluation
copy session
2 Form 3 of Societies Act 1966 Digital copy Upload to eDana √ √
(certified copy by Commissioner
for
Oaths)
3 Letter of confirmation from main Digital copy Upload to eDana √ √
association if
application is from branch
4 Minutes of latest annual Digital copy Upload to √ √
general meeting eDana
5 Detailed curricula vitae Digital copy Upload to √ √
of project team members eDana
6 Contract/Letter of Acceptance or Digital copy Upload to eDana √
equivalent between entity and
Collaborator
7 Contract/Letter of Digital copy Upload to eDana √
acceptance between entity and
consultant
8 Insolvency search (of Digital copy Upload to eDana √ √
company and project team
members)
9 Ethical/IBC approval or Digital copy Upload to √
notification (if eDana
applicable)
10 One quotation for each item of Digital copy Upload to √
for purchase
11 Latest audited financial report Digital copy Upload to √ √
statement, cash flow and
others)
institutions) – if applicable
27
(17 JUNE 2021)
iv. INDIVIDUAL
Individual Type of Mode of Applicant Collaborator (if
Document Submission applicable)
1 Signed AIF application form with Digital Upload to √
declaration witnessed by a copy & eDana &
Commissioner for Oaths (1 copy) printed present during
copy assessment
session
2 Identity card (certified copy by Digital Upload to √ √
Commissioner for Oaths or copy eDana
government officer of grade 41
and above)
3 Letter of support from Digital Upload to √ √
Referee copy eDana
4 Detailed curricula vitae Digital Upload to √ √
of project team members copy eDana
5 Contract/Letter of Acceptance or Digital Upload to √
equivalent between entity and copy eDana
Collaborator
6 Contract/Letter of Acceptance Digital Upload to √
between copy eDana
entity and consultant
7 Insolvency search for individual Digital Upload to √ √
copy eDana
8 Ethical/IBC approval or Digital Upload to √

notification (if applicable) copy eDana
9 One quotation for each item of Digital Upload to √
equipment listed copy eDana
for purchase
10 Last three (3) months’ Digital Upload to √
bank statements copy eDana
11 Letter of consent from head of Digital Upload to √ √
department (if project team copy eDana
institutions) – if
Applicable
28
(17 JUNE 2021)
Appendix 4
INFORMATION ON USE OF BIOLOGICAL RESOURCES AND ASSOCIATED

TRADITIONAL KNOWLEDGE (IF RELEVANT)
1. Were biological resources or traditional knowledge associated with biological

resources or information relating thereto utilised in the invention applied for?
Yes No
2. If yes, please provide details:

i. Country:
ii. State:
iii. Permit date:
iv. Date of benefit sharing agreement:
A copy of the permit is attached to this form.
3. Date of notification of this application for patent to the National Competent Authority
under the Access to Biological Resources and Benefit Sharing Act 2017.
A certified copy of the permit accompanies this form.
29

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APPLIED INNOVATION FUND (AIF)

CHRONOLOGY OF APPLIED INNOVATION FUND GUIDELINES

No. Amendment Description of Amendment Date of

No. Amendment Description of Amendment Date of

to: 17 June 2021

8.4 Registration of a minimum of

7. Paragraph 10: Amendment to funded

Innovation contributes to increase productivity and economic growth as well as

Technology Readiness Level (TRL), which is developed by the National

Figure 1: Scope of AIF according to TRL

5.2 The eligibility criteria for AIF application are as follows:

process, system or service with commercial potential.

5.3 Individuals, Sole Proprietorships, Partnerships, Limited Liability Partnerships,

ii. Applications from a research institute, public or private higher education

Figure 2: Stages of Application Process

6.2 Stage 1: Application

6.3 Stage 2: Evaluation

Table 1: AIF Evaluation Criteria

6.4 Stage 3: Notification of Result

Figure 3: Work Flow Process

7. PREPARATION OF CONTRACT AND FIRST DISBURSEMENT

9. QUANTUM AND PERIOD OF FUNDING

MOSTI will fund the project based on Table 2.

Table 2: Quantum and Period of Funding

Category Funding Allocation (RM) Period

10. SCOPE OF FUNDING

Table 3: Scope of Funding for the AIF

SCOPE FUNDED BY MOSTI NOT FUNDED BY NOTE

G03: • For registration in • Maintenance • If relevant

SCOPE FUNDED BY MOSTI NOT FUNDED BY NOTE

G05: • Certification registration • Training • If relevant

SCOPE FUNDED BY MOSTI NOT FUNDED BY NOTE

G08: Institute of Higher • Management fees • If relevant

SCOPE FUNDED BY MOSTI NOT FUNDED BY NOTE

The entity shall apply for

Table 4: Scope of Funding Permitted for Collaboration

10.3 Procedure for purchase of equipment and services:

10.3.2 Purchase of equipment or procurement of services in amounts

10.3.4 Purchase of equipment or procurement of services from any

10.3.5 The purchase order/quotation submitted must be based on the current

10.3.7 Pertinent issues not included in clauses 10.3.1 to 10.3.6 must be

11.1 Payment shall be by disbursement.

Figure 4: Payment Method of Approved Application

12. PROJECT MONITORING

i. Deliverables and final project output;

Figure 5: Monitoring Work Flow Process

13. OWNERSHIP AND USE OF R&D EQUIPMENT

13.2 The equipment purchased must be recorded in the Government repository

14. INTELLECTUAL PROPERTY (IP)

15. INTELLECTUAL PROPERTY INCENTIVES

iii. Change in project leader without written consent from MOSTI;

17. STATEMENT OF EXPENDITURE AND UNEXPENDED FUND

18. MALAYSIAN CODE OF RESPONSIBLE CONDUCT IN RESEARCH

19. ETHICAL APPROVAL, INSTITUTIONAL BIOSAFETY COMMITTEE (IBC)

TRL Description Characteristics

TRL 3 Experimental proof of • Analytical validation & proof of concept

TRL 4 Lab validation • Validation in laboratory environment

PRIORITY AREAS OF APPLIED INNOVATION FUND

SOCIO-ECONOMIC DRIVER PRIORITY AREA

Culture, arts and tourism • Creative and content heritage

5 Contract/Letter of Acceptance or Digital copy Upload to √

ii. REGISTERED COOPERATIVE

Registered Cooperative Type of Mode of Applicant Collaborator

iii. REGISTERED ASSOCIATION