Business Start-up Fund (BSF) is established to fund new start-up technology-based companies. The Fund incorporates elements of loan and equity, offering companies flexible funding via Convertible Notes (CN) and/or Preference Shares.

The objective of BSF is to support and encourage entrepreneurship and creation of new strategic businesses that are important and potentially scalable, and the funding of supporting companies within a technology eco-system.




Target Group

  • Entrepreneur with feasible tech-based businesses;
  • Business that can be up-scaled, with high growth potential and sustainable.

Basic Eligibility Criteria

  • Spin-off company incorporated under the Companies Act 1965;
  • Minimum 70% owned by a Malaysian entrepreneur or group of entrepreneurs;
  • The proposed technology to be commercialised must be from one of the Priority Technology Clusters;
  • The product must be significant in novelty/innovation.

Funding Structure

  • Flexible funding via Convertible Notes (CN) and/or Preference Shares at a maximum of RM5.0 million or 90% of the recognised project cost or whichever is lower.
  • CN repayment period from the first month of 4th year on monthly basis over 5 year period.


Evaluation Process

The evaluation process involves three main phases. The process starts upon receipt of an application form together with detailed business plan and other supporting documents.

The phases are:

1. Pre-Assessment

This process is to determine whether the application and documents submitted fulfil the set basic eligibility criteria. Incomplete submission or non eligible submission will be returned to the applicant.

2. Processing

This phase requires a thorough evaluation to ensure that the proposed project’s objectives and other requirements are in line with the fund’s objectives. During the process, applicants will be called upon for a presentation and discussion on the proposal. A visit by the Evaluation Officer to the company’s premises will also be conducted as part of the evaluation process.

3. Approval of Application

Once the applicant meets all the requirements, the Evaluation Officer will compile and prepare reports before presenting the proposal to the fund’s Technical Committee (TC) for deliberation and subsequently to the Approval Committee (AC) for endorsement of recommendations made by the TC. The applicants may also be required to present their proposal to the respective committees. All successful and unsuccessful applicants will be informed officially after decisions were made by the AC.

Application Procedures

Applicants can submit their application during office hours to MTDC. Applicants are advised to ensure that the submission have all the required supporting documents failing which it will be rejected and returned by the Evaluation Officer.

The documents required are:

1. Application Form;
2. Business Plan (softcopy & hardcopy);
3. Application Checklist with relevant documents in order.

Applicants are also advised to adhere to the format of the business plan according to MTDC’s standard format.

An acknowledgement letter will be sent to applicants to inform them of the status of the application. The letter will contain information regarding the application’s completeness of submission, eligibility and/or status of subsequent course of action.

One (1) copy of the application can be submitted to:-

Chief Executive Officer
Malaysian Technology Development Corporation (MTDC)
Block L, UPM-MTDC Technology Centre
Universiti Putra Malaysia
43400 Serdang


Contact Us

General Line: +6 03 8941-4100
Fax : +6 03 8941-4200

Muhd Shaman Bakar
Incubation & Nurturing Division
E-mail :

Rosliza Zukkafli
Assistant Vice President
BSF Department
E-mail :
Ext : 207

Mansor Harun
Assistant Vice President
BSF Department
E-mail :
Ext : 217


For more information, go to