Malaysia Debt Ventures Bhd (MDV) recently announced their RM50 million fund for the second tranche of the Liquidity Financing for Technology Start-Ups (LIFTS) program as an initiative to support start-up companies in the technology industry in Malaysia. The allocated RM50 million fund was an addition to last year’s budget of RM50 million for the LIFTS program.
Chief Executive Officer, Nizam Mohamed Nadzri, believes that these funds will strengthen the business operations and support the growth of start-up companies. He said that besides the Liquidity for Equipment and Asset Purchase Programme (MDV-LEAP) which was responsible for ICT assets, an alternative in hiring the purchase or leasing option, this program also aims to provide working capital financing for SMEs in the technology industry. He also added that the Ministry of Finance targets to benefit about 70 companies through the program by MDV.
Chairman of MDV, Khairul Azwan Harun, voiced MDV’s plans to expand its fund’s management strategy from the current fintech into MedTech fund and AgriTech fund by establishing a new variable capital company (VCC) that subsidiaries as a fund vehicle.
“We basically want to leverage the minimal funding from the government and enlarge the fund by getting private sector involvement,” added Khairul.
He said MDV has also approved over RM75 million in financing for 65 companies and disbursed approximately RM41.52 million to 39 companies in various technology sectors for the LIFTS program.