Kulim, 16 February 2023- Malaysia Debt Ventures Berhad (MDV) today announces its collaboration with the Northern Corridor Implementation Agency (NCIA) in an effort to accelerate technology development in the Northern Corridor Economic Region (NCER) by widening access to financing for technology MSMEs located in the region, particularly in the areas of energy efficiency, automation, and smart engineering.
MDV is a subsidiary of the Minister of Finance (Incorporated) [MOF (Inc)] and an agency under the purview of the Ministry of Science, Technology and Innovation (MOSTI) that was established more than two decades ago with a specific role to develop the nation’s technology sector by offering innovative and flexible financing to underserved but high-potential technology-related companies to ensure their growth and success.
The collaboration would see MDV offering access to several of its financing schemes and specialised funding programmes for eligible tech companies in the NCER involved in Energy Efficiency, Start-ups, and technology projects. A funding clinic session for targeted tech companies was also held today by MDV & NCIA at the Kulim Golf & Country Resort as part of the initial outreach initiatives.
MDV’s Chief Executive Officer, Nizam Mohamed Nadzri explained that MDV has continuously undertaken business development and marketing efforts throughout the Nation, where geographical focus has not only been in the Central Region but also the Northern and Southern regions, the East Coast, and Sabah & Sarawak. The inclusive approach fully supports the government’s aim to assist the development of local MSMEs, particularly innovative and high-growth companies capable of generating high-income jobs for the people and driving the country’s economic growth, in line with the Malaysia Madani vision of creating a sustainable and prosperous Malaysia.
“MDV intends to continue expanding the Company’s funding base to reach more technology MSMEs in different regions in Malaysia and in untapped sectors to ensure a more holistic coverage of our financing. The northern region in particular, with the strategic locations of its four states, carries an immense potential to become a world-class technology hub, boosted by its growing reputation as a centre for high-value industries in the country,” he said.
NCIA’s Chief Executive, Mohamad Haris Kader Sultan said that, “In catalysing a World Class
Economic Region and Technology Hub in this region, NCIA via the NCER Strategic Development Plan 2021-2025, focuses on Talent Development in Strategic and High Impact Industries as well as Development in Advanced Technologies. This is achieved through its existing matured ecosystem which include attractive customised incentives for priority sectors, talent ecosystem development via collaborations with academia and industries, vendor localisation programmes, as well as strategically located projects and industrial parks. NCIA’s collaboration with an agency such as MDV to empower the tech fraternity in NCER is one of the initiatives that will allow NCIA to realise this target.”
Mohamad Haris further explained that the establishment of the NCER Technology Innovation Centre (NTIC) in Penang will offer technology driven MSMEs a hub for technology and innovation activities in developing the industry ecosystem in NCER. MSMEs can thus leverage on NTIC as the centre offers incubators for start-ups, a shared services lab for engineering solutions, a centre for IR4.0, a networking platform consisting of industry players as well as state of the art facilities and thus help to considerably reduce the companies’ capital investment costs in R&D and the reskilling and upskilling of talent.
Nizam added that while the Government’s has extended significant efforts to funnel funds to MSMEs through strategic measures and stimulus packages such as PENJANA, PRIHATIN and PEMERKASA, MSMEs in Malaysia remained unserved or underserved with an estimated RM90.00 billion in financing gap, as outlined in the Capital Market Blueprint. Hence, MDV is intensifying efforts to enable and facilitate underserved MSMEs that are seeking available and suitable financing options to help bridge this financing gap and increase the companies’ likelihood to grow and succeed.
“With more than RM600.00 million in financing expected to be approved this year across different tech sectors within our mandate and risk appetite, MDV is determined to continue to strengthen Malaysia’s tech ecosystem, and to contribute to a stable, competitive and resilient business environment,” Nizam concluded.