Malaysia Digital (MD) Status companies will gain access to a RM200 million financing pool under a new initiative by CapBay and the Malaysia Digital Economy Corporation (MDEC) aimed at supporting technology companies’ expansion, innovation and adoption of emerging technologies.
The MD Technology Financing Programme will provide eligible companies with financing of up to RM3 million, including early-stage and pre-profit start-ups that often face difficulties securing conventional funding due to limited physical assets.
Under the programme, companies can access financing rates from as low as 6% per annum, repayment tenures of up to 60 months and a six-month grace period before repayments begin. The initiative is also open to companies incorporated for as little as six months through a fully digital application process.
CapBay said the financing assessment will be supported by its artificial intelligence (AI)-powered credit assessment model, which evaluates applicants based on business fundamentals and growth potential rather than physical collateral.
“This partnership also demonstrates how strategic public-private collaboration can accelerate innovation and strengthen Malaysia’s digital ecosystem. Together, such partnerships enable more Malaysian companies to access growth opportunities, adopt emerging technologies such as AI, build globally competitive capabilities, and contribute meaningfully towards the nation’s AI Nation 2030 aspirations while driving long-term economic value creation,” said MDEC CEO Anuar Fariz Fadzil.
CapBay Co-Founder and Group CEO Ang Xing Xian said the programme aims to address challenges faced by technology companies whose key assets are intellectual property, talent and proprietary systems.
“Conventional credit frameworks often overlook technology companies because their assets are intellectual. The MD Technology Financing Programme addresses this by basing credit decisions on business fundamentals and growth trajectory rather than physical collateral, which aligns with how tech companies are actually structured,” he said.
The initiative forms part of efforts to strengthen Malaysia’s digital economy by improving access to non-dilutive financing for technology firms while supporting the country’s AI Nation 2030 ambitions.
