Exchange of MoU Document between: [Right] Dr. Norida Abd Rahman, Managing Director of VentureTECH [Left] Mr Yoshihiro Ishiwata, Managing Director of SBI Ventures Malaysia

Co-investment aims to accelerate efforts to strengthen Bumiputera’s participation in high value added and emerging industries and boost economy.

CYBERJAYA, Sept 17 (Bernama) -- In a move to mark the company’s next chapter of growth, VentureTECH is geared towards realising its regional investment strategy, further intensifying the company’s developmental role in supporting the growth of local industry particularly Bumiputera businesses in high value-added and tech-driven industries at regional level.

This strategy will be carried out in partnership with SBI Ventures Malaysia Sdn Bhd (SBI Ventures Malaysia), a subsidiary of one of the largest private equity group in Japan, SBI Holdings Inc. Japan, through the establishment of a joint-venture investment company, targeting at least RM100 million of investments.

This timely move is aligned with both VentureTECH’s mandate as well as the government aspiration outlined in the recently announced Bumiputera Prosperity Council to drive and accelerate efforts to empower Bumiputera’s economy and socio-economic development by creating synergies with its regional peers, whilst addressing some of the challenges of these local companies to scale on a regional level.

“Forging for regional presence is imperative for Malaysian companies in view of the fairly small local market in some segments. We are always aiming to provide the window for new opportunities to our investee companies through value creation initiatives and regional collaboration, especially within the ASEAN market,” explained Dr. Norida Abd. Rahman, Managing Director of VentureTECH.

This strategic partnership with a reputable global private equity player supports the recent call by YB Dato’ Sri Mustapa Mohamed, Minister in the Prime Minister's Department (Economy), to attract foreign funds into the country, thus helping to improve liquidity in the country for investments in Malaysian companies in order to boost the economy. Other opportunities include to diversify sources of funds for VentureTECH’s Bumiputera Investment Program, in addition to levelling up its investees’ competencies to adopt best practices that is imperative to sustain their competitiveness especially in this challenging post-Covid-19 phase.

Additionally, this new chapter is in line with VentureTECH’s philosophy as an impact investment company as it joins other global impact investing firms that emphasises on socio-economic benefits and multiplier, apart from commercial returns.

“Backed by our track record, we always take a single-minded approach to help build our local companies particularly Bumiputera that promise to not just provide financial returns but importantly contribute in the short-term to creation of employment opportunities in high skilled jobs and generate socio-economic impacts to the country in the mid to long term,” Dr. Norida added.

The targeted investment by this joint investment vehicle include Malaysian and ASEAN based companies operating in the Biotechnology, Green Technology, Financial Technology and Emerging Technology in the areas of Artificial Intelligence (AI), Robotics & Automation and Internet of Things (IoT).

“Our investees should be excited about growing their businesses beyond Malaysia. In this chapter, we are providing them the platform and tools to measure themselves against their regional peers and satisfy their ‘hunger’ to scale,” Dr. Norida quipped.

The Memorandum of Understanding (MoU) was earlier signed between VentureTECH’s Managing Director, Dr Norida Abd Rahman and SBI Ventures Malaysia’s Managing Director, Mr Yoshihiro Ishiwata.

Since 2010, VentureTECH has invested and committed to invest in 20 technology industry leaders, mostly in mezzanine and growth stages in the targeted biobased, emerging and green industries, with an aggregate portfolio revenue of more than RM300 million, and investee collective net worth that has surpassed the RM1 billion mark.

About VentureTECH

VentureTECH (www.venturetech.my) is a government-backed impact investment company established to catalyse the growth of local industries particularly Bumiputera in the high value added and high technology areas through equity investment. VentureTECH was incorporated as a wholly owned subsidiary of the Malaysian Industry-Government Group for High Technology (MIGHT).

About SBI Holdings

The SBI Group was established in 1999 as a pioneer of Internet-based financial services in Japan. Since then, the SBI Group has formed the world's first Internet-based financial conglomerate, providing financial services in a broad range of fields including securities, banking and insurance. In addition, the SBI Group provides Asset Management Business, with a prime focus on investment in venture companies - an activity undertaken since before the Group's founding. In this sphere, the SBI Group has made focused investments in the IT and biotechnology sectors, which are the 21st century growth industries. Currently, the development of new technologies is accelerating within the FinTech, IoT, AI, Big Data and related fields, thus attracting global attention. The SBI Group is proactively investing in venture companies within these fields. www.sbigroup.co.jp/english/

SOURCE: VentureTECH

FOR MORE INFORMATION, PLEASE CONTACT:
VENTURETECH
Name: Mansurah Raisa Ab Rahim
Tel: +6016 668 1210
Email: raisa@venturetech.my

--BERNAMA