DRIVING THE TECHNOLOGY SECTORS’S POST PANDEMIC GROWTH (MALAYSIA DEBT VENTURES BERHAD)

by Danial Siah
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On the 27th of October, Malaysia Debt Ventures Berhad (MDV) held a Media Briefing to share on the Company’s key 728417Technology Industry & Market Development Action Plans for the remainder of 2021 and onwards. During the briefing, MDV’s Chairman, Khairul Azwan Harun as he spoke to the media about MDV’s supporting the Government in stimulating the economy and to ensure that the technology sector is well equipped for the post-pandemic recovery period and MDV’s Chief Executive Officer, Nizam Mohamed Nadzri attended the briefing.

From the left: Aimi Aizreen Nasharuddin, Khairul Azwan Harun, Nizam Mohamed Nadzri, Adrian Khor

MDV implemented five key initiatives to strengthen the Company’s role in developing the technology sector. One of the immediate initiatives that will be undertaken by the Company is to extend the granted moratorium as the implementation of the moratorium by MDV started during the MCO in 2020 had benefitted 66 companies with deferments of RM134.30.

Liquidity Financing for Technology Start-Ups (LIFTS) facility was also introduced in 2020 where it was a RM100.00 million special programmes for technology companies who were affected by the COVID-19 pandemic. More than RM74.00 million in financing for 64 companies and has disbursed RM33.50 million to 35 companies in various technology sectors under this programme.

From the left: Aimi Aizreen Nasharuddin, Khairul Azwan Harun, Nizam Mohamed Nadzri, Adrian Khor

Evolving to LIFTS 2.0, its focus to provide affordable financing to eligible technology start-ups and MSMEs to implement their growth and development plans in achieving their post-pandemic growth potential. Similar to LIFTS, a low interest rate will be implemented and financing will be capped at RM10.00 million per applicant,” explained Nizam. To ensure long-term self-sustainability, MDV will be moving away from government-guaranteed Bonds and Sukuk, and looking to source its new RM2.00 billion Bond/Sukuk programme sometime in November directly from the Capital Market.

MDV’s planned to be as a provider of Venture Debt financing for VC-backed start-ups, by receiving approval by the MOF to establish a Venture Capital Company (VCC) and a Venture Capital Management Company (VCMC). Nizam added that another significant initiative planned by MDV is to establish a National Technology Financing Hub at Technology Park Malaysia (TPM), “We envision that the hub will also function as a Centre of Excellence (COE) for Venture Finance, which will provide support and assistance to start-ups for them to enhance their skills and technical knowledge further as part of the process of growing their businesses.”

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