CYBERJAYA: VentureTECH has launched a private equity co-investment fund of RM75 million for growth stage technology companies with Japan's SBI Ventures Malaysia.
The fund is designed to play a strategic role in supporting local and Bumiputera companies in the high value-added and emerging industry market segments to scale up to their full potential, and help attract additional investors to support the expansion of these companies during the economic recovery period.
The objective of VentureTECH through the joint venture is to create a bigger pool that will result in a multiplier effect to generate meaningful outcomes for Bumiputera industrial development, particularly in high-growth emerging industries such as IR4.0.
Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed(pix) said the joint venture would enable VentureTECH to raise the level of expertise for Malaysians, not only for human capital development but also investments into new emerging areas such as green technology.
“We hope this will boost private equity investment from Japanese, while transforming our micro, small medium enterprises (MSMEs) to be more digitalise and make them more competitive,“ he said in his speech at the launch of the co-investment fund here today.
Mustapa said Japan was one of the pioneers to invest in Malaysia and it was important to strengthen the bilateral ties between both countries post-pandemic.
“We are on track to become a high-income nation and we need to plan for the future. We have presented the 12th Malaysia Plan in Parliament -- to weather the storm and navigate the country through difficult waters.
“Most importantly, we want to return to the pre-Covid level in the second half of 2022,“ he added.
In addition to increasing the country's capital outflow and liquidity, VentureTECH managing director Dr Norida Abd Rahman said it was vital to continue to support the segment of high-growth market and the company was committed to fund local industry players, particularly Bumiputera.
Since its inception in 2009, VentureTECH has invested and committed to invest in 23 technology industry leaders in targeted bio-based, emerging and green industries, with aggregate investee net worth of at least RM1.2 billion. -Bernama