VentureTECH has announced its RM10 million initial investment in Gaia Plas Bhd (Gaia), a Malaysian company principally involved in providing end-to-end solution for all-packaging products, for the development of plant-based biodegradable plastics and acquisition of assets to commercialise their green products.
In line with efforts to promote the competitiveness of Bumiputera companies by encouraging them to produce higher value green products, VentureTECH’s investment in Gaia will help the commercialisation of Malaysia’s first biodegradable jerry can in the near future driven by the company’s demand from the existing markets it is currently serving.
Presently, the plastic sector in Malaysia is faced with a major challenge with the country positioned among the top ten countries with mismanaged plastic waste in the world, in addition to leaving a significant carbon footprint — a drive for Gaia to heed the Government’s call to encourage the plastic industry to transition to eco-friendly products by leveraging on research and technologies to develop biodegradable products.
“Our mission to lend support for Bumiputera companies seeking investment in green technology bodes well with the national agenda as Malaysia hopes to boost market growth locally and regionally for new bio-based products in green packaging as well as other alternatives for plastics.
“VentureTECH is proud to be involved with a resilient and bold Bumiputera company like Gaia that despite facing the current business challenges in Covid-19 pandemic has continuously pushed their boundaries to develop biodegradable plastic in addressing the environment crisis, an effort that must be recognized and supported not just for the environment, but also for the wellbeing of the people at large,” expressed Dr. Norida Abd. Rahman, Managing Director of VentureTECH.
The investment in Gaia will also help materialise the government’s aim of ensuring green business contributes to about 1.5 percent of Malaysia’s GDP by 2030 or about RM60 billion, from RM8 billion in 2013, whilst fulfilling VentureTECH’s mandate of increasing Bumiputera’s industry participation in high growth, higher value-added industry.
“We at GAIA acknowledge that the plastic industry significantly contributes towards global warming, affecting the world ecosystem. GAIA is looking forward to producing bio-degradable plastic product that is safe for consumption whilst protecting the best interest of the people and the environment,” said by Abdul Qy’yum Fayed, CEO of Gaia Plas Berhad.
“The support from an investor like VentureTECH is vital to realize both Gaia’s vision and long-term strategy of producing sustainable products, and we look forward to collaborating with various stakeholders to further develop the industry and ensure that the collective goal is ultimately achieved,” added Rina Shahar, the Executive Chairman of Gaia Plas Berhad.
Additionally, Gaia is dedicated to developing local talent by providing the infrastructure and knowledge directly to students or researchers, via its existing collaboration with University Teknologi MARA (UiTM) to foster participation from both partner institutions in new product development as well as exchange of knowledge on innovative products and technologies.
Presently Gaia is serving both local and overseas clients from United States, Singapore, Pakistan, and Egypt. The company has ambitious business diversification plan to sell its green products both locally and overseas, primarily in Europe.
The Investment Agreement was cemented by Dr. Norida Abd Rahman, Managing Director and Ahmad Redzuan Sidek, Chief Investment Officer representing VentureTECH and Puan Rina Shahar, Executive Chairman and Abdul Qy’yum Mustaqem, CEO representing Gaia Plas Bhd.
In line with the impact investment company’s efforts to nurture the growth of local companies in targeted sectors, the investment in Gaia Plas marks VentureTECH’s third investment in green technology for the current year. Since its inception, and with the addition of Gaia, VentureTECH has invested and committed to invest in 23 Bumiputera technology industry leaders in the targeted biobased, emerging, and green industries, with aggregate investee net worth surpassed at least the RM1 billion mark.