KUALA LUMPUR, April 29 — Malaysia Debt Ventures Bhd (MDV) has expanded its second tranche of RM50 million fund for the Liquidity Financing for Technology Start-Ups (LIFTS) programme to assist technology start-up companies.
Chief executive officer Nizam Mohamed Nadzri said the fund was an addition to the RM50 million allocated last year for the LIFTS programme to provide cash line facilities to technology start-ups in Malaysia.
“So, with the additional RM50 million funded by the government to MDV, we want to help the technology start-ups affected by COVID-19 pandemic by providing immediate and targeted cash flow to strengthen their business operations and support growth,” he said at the MDV’s media briefing on “Empowering Technology-based Companies and Start-ups for the Next Stage of Economic Growth” here today.
He said the Minister of Finance (Incorporated)’s wholly-owned subsidiary is looking at receiving the fund in the next few weeks and targetting about 70 companies to benefit from the programme.
Besides that, he said MDV has also outlined Liquidity Financing for Technology Companies (LIFTS SME) to support the recovery and growth of these companies for this year.
He said the programme would provide working capital financing for small and medium enterprises related to technology besides the Liquidity for Equipment and Asset Purchase Programme (MDV-LEAP) which played the role as a financing solution option for ICT assets, an alternative to hire purchase or leasing option.
Meanwhile, Chairman Khairul Azwan Harun said MDV planned to expand its fund management strategy from the current fintech into medtech fund and also agritech fund by establishing new variable capital company (VCC) subsidiaries as fund vehicle.
“We basically want to leverage the minimal funding from the government and enlarge the fund by getting private sectors involvement,” he said.
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 programme so far.
“Last year, MDV has approved RM696.32 million in financing to fund 88 technology-based companies with RM218.08 million have been disbursed, of which, 32 companies were start-ups,” he said.
MDV was established in 2002 with the objective of providing flexible and innovative financing to develop high-impact and technology-driven sectors of the economy that were identified and prioritised by the government as future engines of growth. — Bernama
