Frequently Asked Questions (FAQ)

Penjana Kapital Sdn Bhd ("PKSB") Overview

1) What is Penjana Kapital Sdn Bhd?

Penjana Kapital Sdn Bhd (Penjana Kapital) was incorporated on 1 July 2020 as part of the Government of Malaysia’s initiative to accelerate the development of a future innovation economy.

Its main role is to stimulate the Malaysia’s economy by futureproofing Malaysia businesses through innovation from start-ups, funded by private capital from strategic international and private domestic investors, matched by the government and in turn creating a vibrant and sustainable venture capital (VC) industry in Malaysia.

Penjana Kapital administers and facilitates the deployment of the Dana Penjana Nasional (Dana Penjana), a matching fund-of-funds program where the Government of Malaysia will match, on a 1:1 basis, funds raised by the VC fund managers from foreign and private local investors.

Governance & Operationalisation: Penjana Kapital Sdn Bhd

2) What is the role, governance set-up and operationalisation of Penjana Kapital Sdn Bhd?

Pembangunan Modal Penjana Sdn Bhd, a company under the Minister of Finance Incorporated, has established Penjana Kapital as its subsidiary to allocate the Government’s portion of the funding. Penjana Kapital will have a Board of Directors and an Investment Panel (IP).

Penjana Kapital will have three layers of governance.

  1. Board of Directors (BoD)
    The BoD will set the overall strategic direction of Penjana Kapital, under the guidance from the Ministry of Finance. They will also review and approve investments recommendation by the IP.

  2. Investment Panel (IP)
    The IP will leverage on their specialised expertise and experience to drive decision making for Penjana Kapital. They will review and refine investment strategies and guidelines; as well as assess the selection of venture capital by Penjana Kapital’s management team.

  3. Management team
    Penjana Kapital’s management team will be responsible to monitor the venture capital fund managers, amongst others. This will include the monitoring of financial and non-financial deliverables expected from each VC fund manager.

Penjana Kapital’s senior management personnel will also sit in the Investment Committee (IC) of the portfolio funds to ensure that funds remain aligned to Dana Penjana’s objectives.

Investment Process

7) Will Penjana Kapital be involved in managing the funds?

Penjana Kapital will be operating a Fund of Funds (FoF) model, which means Penjana Kapital will not be involved in the day-to-day management of the funds. However, to ensure that the funds remain aligned to Dana Penjana’s objectives, a representative from Penjana Kapital will sit in each fund’s Investment Committee (IC).

On that note, before the target investment can be deliberated in each fund’s Investment Committee, the deal company or potential investee must satisfy all requirements Penjana Kapital’s internal evaluation matrices.