MDV Seeks to Implement Five (5) Key Initiatives to Support the Development of  Malaysia’s Tech Sector


• Extension of moratorium for MDV’s affected customers in supporting their post-pandemic recovery

• Proposed expansion of MDV’s Liquidity Financing for Technology Start-Ups (LIFTS 2.0) Programme to focus on start-ups in the postpandemic recovery and growth phase

• New source of funds - MDV’s new 2.0 Billion Bond/Sukuk Programme (Fourth Fund) to meet expected financing demand from tech companies in MDV’s mandated areas

• Establishment of MDV’s new Venture Capital subsidiary companies to create better financing opportunities for early-stage technology-based start-ups and companies

• Proposed establishment of a National Technology Financing Hub to complement the Technology Commercialisation Agency (TCA) in accelerating local technological innovation 

 
KUALA LUMPUR, Oct 27 (Bernama) --  Malaysia Debt Ventures Berhad (MDV), a wholly owned subsidiary of the Minister of Finance (Incorporated) [MOF Inc] and an agency under the purview of the Ministry of Science, Technology and Innovation (MOSTI), today held a Media Briefing to share on the Company’s key 728417Technology Industry & Market Development Action Plans for the remainder of 2021 and onwards. Present at the briefing were MDV’s Chairman, Khairul Azwan Harun and MDV’s Chief Executive Officer, Nizam Mohamed Nadzri.
 
Speaking to the media, Azwan said that MDV is committed to expediting its efforts to support the Government in stimulating the economy and to ensure that the technology sector is well equipped to navigate the post-pandemic recovery period and to regain its growth momentum. To achieve this, MDV is planning to implement five (5) key initiatives to strengthen the Company’s role in developing the technology sector, including to assist technology companies in facing the challenges arising from the pandemic and to ensure their growth during the economic recovery phase.
 
One of the immediate initiatives that will be undertaken by the Company is to extend the moratorium granted to some of MDV’s affected customers as they seek to recover their businesses and regain operational stability. The implementation of the moratorium by MDV since the start of the MCO in 2020 had benefitted 66 companies with total approximate deferments of RM134.30 million comprising principal and profit payments.
 
During the same period last year, MDV also introduced the Liquidity Financing for Technology Start-Ups (LIFTS) facility - previously known as TSFRF – which is a RM100.00 million special programme for technology companies who were badly hit by the COVID-19 pandemic, by supporting the companies’ short-term cash flow issues. MDV has so far approved more than RM74.00 million in financing for 64 companies and has disbursed approximately RM33.50 million to 35 companies in various technology sectors under this programme. 
 
Commenting on this, Nizam however said that entering this post-pandemic recovery phase, an increasing number of technology start-ups and MSMEs would require access to immediate and affordable financing assistance for them to rebuild their business capacity and profitability. 

“To assist these companies, MDV has proposed to the Government, to expand the LIFTS programme with an additional RM100.00 million in funds. This programme, dubbed as LIFTS 2.0, will focus on providing 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, LIFTS 2.0 will maintain a low interest rate threshold and financing will be capped at RM10.00 million per applicant,” explained Nizam.

As part of MDV’s funding diversification strategy in growing its funding capacity and ensuring liquidity, as well as 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. This will be MDV’s fourth fund, which also marks MDV’s first fund to be raised based on its own standalone credit rating. 

Further to this, in its capacity as a provider of Venture Debt financing for VC-backed start-ups, MDV has received the approval by the MOF to establish a Venture Capital Company (VCC) and a Venture Capital Management Company (VCMC), which will enable MDV to create better financing opportunities for early-stage technology-based start-ups and companies, typically in between the Seed and Series A funding cycle. A VCC would provide a more efficient platform to collaborate with various parties for the purpose of setting up Venture Debt Funds as an alternative investment asset class for investors, while a VCMC would allow MDV to carry on investment management activities as well as providing management and administrative support services and resources on behalf of the VCC.

Nizam added that another significant initiative planned by MDV is to establish a National Technology Financing Hub at Technology Park Malaysia (TPM), which focuses on serving the needs of start-ups such as incubators and accelerators, to complement the Technology Commercialisation Agency (TCA) under MOSTI in accelerating technological innovation in the country.

“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. The hub also aims to provide infrastructure support such as shared office spaces and training centres that will contribute to the strengthening of the start-up ecosystem in Malaysia,” he said.

To ensure the country’s continued wellbeing, MDV is committed in extending its full cooperation to assist the Government towards accelerating Malaysia’s post-pandemic economic recovery. MDV will strive to provide better access to financing for technology companies and to continue to contribute to job creations and economic sustainability in achieving the vision of “Keluarga Malaysia” for the revival of the country’s economy towards becoming a developed and high-income nation. 

About MDV – The Nation’s Technology Financier
 
Malaysia Debt Ventures Berhad (MDV) is a wholly owned subsidiary of the Minister of Finance (Incorporated) [MOF (Inc)] established in 2002 with the objective of providing flexible and innovative financing to develop high-impact and technology-driven sectors of the economy, identified and prioritised by the Government as future engines of growth. MDV’s strategic role in the technology financing ecosystem in Malaysia is defined by its approach to funding which is different from other financial institutions. MDV’s niche is helping to fund young technology-based companies or start-ups that are unable to secure financing from commercial financial institutions due to their novel business model, lack of proven operating track record and lack of collaterals. With the rapid rate of technological and digital advance, and Malaysia’s continued push towards becoming an advanced nation, MDV will continue to have a significant role to play particularly in financing emerging technology areas and in achieving its vision of becoming the Nation’s Technology Financier.
 
For more information on MDV, please visit http://www.mdv.com.my/.  


SOURCE : Malaysia Debt Ventures Berhad 

FOR MORE INFORMATION, PLEASE CONTACT:
Name : Amelia Ong Abdullah