Malaysia earmarks RM1 billion for a “National Fund-of-Funds” to support start-ups and drive innovation. Additionally, agreements with 25 entities from various sectors aim to foster cutting-edge technology ventures, while plans for a city-to-city connection between Kuala Lumpur and Hangzhou are set to enhance Malaysia’s connectivity and access to major economies.
22 April 2024 – In a bid to drive innovation and support local start-ups, Malaysia has earmarked RM1 billion for the establishment of a “National Fund-of-Funds,” announced Datuk Seri Anwar Ibrahim during the inaugural KL20 Summit today.
The Prime Minister revealed that Khazanah Nasional will launch the “National Fund-of-Funds” with an initial allocation of RM1 billion to invest in innovative high-growth Malaysian companies. This move reflects the government’s commitment to assisting local companies, including bumiputra entrepreneurs, start-ups, and SMEs, in line with the Budget 2024 announcement.
Anwar also disclosed plans to centralize investment agencies such as Malaysia Venture Capital Management Bhd (Mavcap) and Penjana Kapital under Khazanah Nasional. Additionally, agreements involving 25 entities from various sectors of the start-up ecosystem were signed to foster cutting-edge technology ventures in Malaysia.
One notable initiative is the Asean Investment Initiative, involving Khazanah Nasional, Kumpulan Wang Persaraan, and Blue Chip Venture Capital, which will invest RM3 billion in the Southeast Asian and Malaysian business ecosystems. Furthermore, Anwar announced that 12 international venture capital firms will establish offices in Kuala Lumpur, facilitating the discovery and nurturing of Malaysian start-ups for global success.
Highlighting Malaysia’s prowess in the semiconductor sector, Anwar announced plans to establish Southeast Asia’s largest IC Design Park, which will collaborate with global companies such as Arm Holdings plc. This initiative, supported by the Selangor Information Technology and Digital Economy Corporation (Sidec) and the Selangor state government, aims to capitalize on Malaysia’s strength in integrated circuit (IC) design.
To enhance Malaysia’s connectivity and access to major economies, Anwar revealed plans for a city-to-city connection between Kuala Lumpur and Hangzhou, aimed at removing obstacles related to capital, talent, and market access.
Economy Minister Rafizi Ramli emphasized the goal of the KL20 Action Plan to attract the top 20 start-ups globally into Malaysia. This involves immediate measures to accelerate critical areas of the start-up ecosystem, positioning Malaysia as a choice destination for early-stage and growth capital, as well as a hub for world-class entrepreneurs and skilled talent. – ref: The Star
