NEWS: Less funding for technopreneurs this year

KUALA LUMPUR: Technopreneurs hoping for funding from the Ministry of Science, Technology and Innovation (Mosti) are in for a tougher time this year.

And the predicament has upset several applicants who are already not happy over the red-tape encountered when applying for such grants.

The ministry said its 2010 budget for such grants has been cut by RM1bil, leaving RM2.7bil in its coffers to be handed out to deserving applicants.

“Funds are quite limited for this year,” said Suhaimi Hamzah, deputy undersecretary for the commercialisation section at Mosti. “Sole proprietorships and certain partnerships and companies have about 10 months left to apply.”

“Our e-content grant funds have already run out,” he said.

Suhaimi was speaking at the National Chamber of Commerce and Industry Malaysia seminar on government grants and financial assistance for Malaysian companies, held in the capital on Tuesday.

Mosti has several funding programmes for various fields of research, development and commercialisation, including biotechnology, industrial, information and communications technology (ICT), sea to space technology, and science technology.

Another source of funding for technopreneurs is the Multimedia Development Corp (MDeC), which oversees the nation’s ICT initiatives.

The 10th Malaysia Plan, to be announced in June and which will only kick in next year, may or may not see an increase in the amount of future government grants.

Not happy

S. Mano, a grants application consultant in the trading and manufacturing industry who was at the seminar, complained to In.Tech about the funding programmes.

He said many of his clients are unhappy with the grants system at the various government agencies.

“There is so much bureaucracy in the application procedure that many of my clients are frustrated over it,” he said.

Mano claimed that some of the government agencies are unprofessional. “What is supposed to be a 60- to 90-day procedure takes as long as 10 or 11 months,” he said.

“Also, there is simply not enough money to go around and now, it looks like there will be even less after the cuts.”

Others among the seminar attendees expressed similar frustrations with the grants programmes but declined to be quoted.

Many technopreneurs have given up on government grants and are hoping to find finanical assistance from elsewhere, Mano said.

“Business is bad right now. It is going to be a tough year for us,” he added.

MDeC said delays are to be expected because there is money involved. The government agencies want to ensure that the funding goes to deserving technopreneurs, it said.

Mosti officials could not be reached for comment at press time.