BUKIT KIARA, Kuala Lumpur, 17 July 2023 – Penjana Kapital Sdn Bhd (Penjana Kapital) in collaboration with Permodalan Negeri Selangor Berhad (PNSB) and Selangor Information Technology and Digital Economy Corporation (Sidec) have signed a Memorandum of Understanding (MoU) to establish the Dana Penjana Selangor, the first Corporate Venture Capital initiative in Malaysia that is supported by the Federal Government and the Selangor State Government.

The signing ceremony were held in conjunction with the Corporate Venture Capital Programme, organised by Capital Markets Malaysia (CMM) and Bursa Malaysia at Securities Commission Malaysia (SC), Bukit Kiara, Kuala Lumpur.

Mr Taufiq Iskandar Jamingan, Chief Executive Officer of Penjana Kapital signed the Memorandum of Understanding along with YM Raja Ahmad Shahrir Iskandar bin Raja Salim, Chief Executive Officer of PNSB and Mr Yong Kai Ping, Chief Executive Officer of Sidec. The signing was witnessed by YB Tuan Sim Chee Keong, Deputy Finance Minister II and YBhg Dato’ Seri Dr. Awang Adek Hussin, SC Chairman.

Strategic partnerships and initiatives such as fund-of-fund programmes have proven effective in reducing the risk of investments in startups and promoting private capital flows. Penjana Kapital’s VC fund-of-funds programme has been successful at the Federal level, and there is hope that other Malaysian states may adopt the approach. These programs pool together capital from various sources to create dedicated funds that invest in a portfolio of venture capital funds, providing diversification and risk management.

Deputy Finance Minister, YB Tuan Steven Sim Chee Keong said, “Congratulations to the Selangor state government through its wholly owned PNSB and SIDEC agency as well as Penjana Kapital which have agreed to create a Federal-State partnership mechanism for venture capital investment to benefit local start-ups. This Federal-State partnership for coinvestment should be strengthened to achieve at-scale pooled fund. I hope this collaborative endeavour will crowd in private capital to invest alongside government via venture capital funds and stimulate growth of alternative fundraising in Malaysia.”

Today’s initiative signals the importance of venture capital (VC) and private equity (PE) as an essential part of the funding ecosystem in the Malaysian capital market. Over the years, the SC has enabled a comprehensive “funding escalator”, offering various options for startups to raise funding across the growth lifecycle.

These include crowdfunding platforms such as ECF and P2P financing platforms, as well as facilitative frameworks for VC and PE managers. Enhancements were made to the VC and PE framework last year. The SC’s framework remains facilitative at various segments of the business growth cycle of a company in their journey to grow and scale up.

To that end, the SC has been working closely with industry stakeholders and various government agencies in Penang, Selangor and several other states to create a vibrant and sustainable alternative financing ecosystem. SC Chairman Dato’ Seri Dr Awang Adek said “SC is committed to facilitate and support initiatives that develop the startup ecosystem in Malaysia. We recognise that startups are a vital source of innovation, job creation, and economic growth. By fostering a multi-stakeholder approach and encouraging public-private partnerships and co-investment models in startups, we can unlock the potential of Malaysia’s startup ecosystem and pave the way for a thriving innovation-driven economy.” Dana Penjana Selangor demonstrates the commitment of the Selangor state government and Federal government to foster a thriving startup ecosystem.

Through this initiative, corporates and other potential limited partners (LPs) can gain exposure to a diversified portfolio of high-potential startups, managed by experienced venture capital fund managers. Dana Penjana Selangor offers a structured and managed approach to startup investments, reducing risks and increasing the likelihood of success. This Federal-State co-investment initiative is hoped to attract private capital particularly corporate participation in the venture capital ecosystem, contributing to the growth and success of both start-ups and corporates.

Overall, the establishment of Dana Penjana Selangor represents a cooperative effort to maximise the startup ecosystem’s potential and build a vibrant, innovation-driven economy in Selangor and Malaysia as a whole.

Permodalan Negeri Selangor Berhad – PNSB (www.pnsb.com.my)

Permodalan Negeri Selangor Berhad, or as it is more widely known, PNSB is a Selangor State Government subsidiary, under the supervision of Menteri Besar Selangor (Incorporated) or MBI.

As a subsidiary organisation of the Selangor state government, PNSB focuses on real estate development as its core business, developing residential and commercial property as well as housing estate and townships that are sustainable and affordable in Selangor and the Klang Valley.

Through its subsidiary, PNSB offer insurance service via PNSB Insurance Brokers Sdn Bhd (PIBSB), project management consultancy services via PNSB Management Consultancy Sdn Bhd (PMC), mining activity through PNSB Trading Sdn Bhd (PTSB) and aeronautical exploration services via PNSB Aero Frontier Sdn Bhd. With its mission to diversify its business, PNSB has established PNSB Investment Venture Sdn Bhd (PIV) to spearhead its foray into the Venture Capital space.

PNSB also plays a vital role in carrying out corporate social responsibility obligations as it is a government subsidiary with conscience taking an active role in corporate social responsibility (CSR) on behalf of the Selangor state government and as well as for PNSB itself.

Penjana Kapital Sdn Bhd (www.penjanakapital.com.my)

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.

Through the first fund-matching programme under Penjana Kapital, the Dana Penjana Nasional (DPN), Penjana Kapital has approved investment into 55 start-up companies which amounts to RM547.7 million as of end of March 2023. The top three largest sector that received investment from Penjana Kapital are Financials & Cryptocurrency, Material & Industrials, as well as Consumer sector.

Selangor Information Technology & Digital Economy Corporation (Sidec) (www.sidec.com.my)

Selangor Information Technology and Digital Economy Corporation (Sidec) a state government agency under the purview of the Standing Committee of Trade and Investment of Selangor is a subsidiary company of Invest Selangor Berhad. Sidec has been mandated to play a significant role in fronting the digital transformation in Selangor through three key sectors of digital economy, namely E-Commerce, Startup and SME Digitalisation.

Sidec is committed to creating an innovative digital ecosystem that will inspire new talents to pursue their dreams fearlessly and build significant regional technology companies with lightning-fast speed that will propel Selangor to become the digital hub of Southeast Asia.

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