Malaysia Debt Ventures Bhd today renewed its commitment to support the Government in stimulating the economy and to ensure that the technology sector is well equipped to regain its growth momentum in the post-pandemic recovery period.
Speaking to the media, Azwan said MDV is planning to implement five key initiatives to strengthen the Company’s role in developing the technology sector, including assisting technology companies in facing the challenges arising from the pandemic and ensuring their growth during the economic recovery phase.
One of the immediate initiatives that will be undertaken 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. 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.
CEO Nizam Mohamed Nadzri says 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 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.
Nizam adds that another significant initiative planned by MDV is to establish a National Technology Financing Hub at Technology Park Malaysia, which focuses on serving the needs of start-ups such as incubators and accelerators, to complement the Technology Commercialisation Agency under MOSTI in accelerating technological innovation in the country.
“We envision that the hub will also function as a Centre of Excellence 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 says.
