Malaysia Debt Ventures Berhad (578113-A)
The Nation’s Leading Technology Financier
MOSTI

Speech by YBhg. Tan Sri Zarinah Anwar Chairman Malaysia Debt Ventures Berhad, At the Launch of MDV’s New Corporate Strategy Mandarin Oriental Kuala Lumpur 18 December 2014

Yang Berhormat Datuk Hj. Ahmad Bin Hj. Maslan, Deputy Minister of Finance I,

Board of Directors and Management of MDV

Distinguished Guests

Ladies and Gentlemen

Assalamualaikum warahmatullahi wabarakatuh and a very good morning.

Welcome to the Launch of MDV’s New Corporate Strategy. I would like to express my sincere appreciation to the Deputy Minister of Finance I, Yang Berhormat Datuk Haji Ahmad Bin Haji Maslan for making time to be with us today. Thank you Yang Berhormat Datuk.

Ladies and Gentlemen

MDV has played a significant role in funding entrepreneurship and innovation in the ICT, biotechnology and green technology sectors, actively supporting SMEs in making their contribution to the Malaysian economy. Over the last 12 years, MDV has disbursed more than RM8.8 billion in financing to more than 700 technology projects undertaken by SMEs. While these projects are typically categorised as high risk, we believe that they hold great promise to become high-value technology projects in our mandated sectors.

The success of the many technology SMEs that we have financed is testimony of our ability to identify and catalyse high-value local innovation. We are pleased that some of these companies have enjoyed considerable success, both locally and internationally. Several have gone on to be listed not only on Bursa Malaysia, but also on other markets. For example, Platinum Nanochem is listed on AIM in London and MOL Global is listed on NASDAQ in New York. Many have also “graduated” and managed to secure loans from local financial institutions with ease. MDV is proud to have played a part in their success.

Ladies and Gentlemen,

ICT, Biotechnology and Green Technology have always been the core components of our funding portfolio. They remain strategically important sectors in Malaysia and hence will continue to be the core focus of our funding strategy. At the same time however, there is a need to keep abreast of developments in the technology sector and evaluate new areas in which we can provide funding support. In this regard we have identified several new sectors to be added to our portfolio. These include:

• Nanotechnology,
• Advanced Materials,
• Robotics & Artificial Intelligence,
• Electrical & Electronics,
• Aviation & Aerospace,
• Maintenance Repair & Overhaul (“MRO”),
• Oil & Gas, and
• Transportation.

The addition of these areas into our portfolio will reinforce MDV’s goal of being the nation’s leading technology financier. We have allocated RM200 million in financing to support these sectors which are aligned to the Government’s Economic Transformation Programme, and encourages private sector involvement in the 12 National Key Economic Areas (“NKEAs”). We see significant growth opportunities for SMEs in these sectors that will enable MDV to expand our scope of financing to facilitate the objectives of enhancing value of the various industries and creating employment opportunities in these sectors.

Ladies and Gentlemen,

In conjunction with the launch of our new corporate strategy, MDV has entered into a collaboration agreement with Unit Peneraju Agenda Bumiputra (“Teraju”), which has been entrusted by the Malaysian Government to carry out the Skim Usahawan Permulaan Bumiputra or better known as SUPERB.

The purpose of the SUPERB programme is to create a pipeline of quality and sustainable entrepreneurs who can contribute to economic growth and catalyse job creation. Since its launch in February 2014, TERAJU has received more than 3,000 applications throughout Malaysia. Under the SUPERB programme, MDV will play its role as a panel member for the selection of recipients through pitching sessions, as well as providing coaching and mentoring to selected recipients. TERAJU will allocate a RM500,000 grant for each winner of the SUPERB pitching session with MDV managing the disbursement of the grant in accordance with the Collaboration Agreement.

In addition, MDV has also signed a Collaboration Agreement with the Malaysian Global Innovation & Creative Centre (MaGIC) in relation to our investment of US$3 million in MaGIC’s Cerebro project. The Cerebro Project will be managed by 500 Start-ups, a world-class venture capitalist who will be investing in top start-ups globally and within Southeast Asia. The total funding for the project amounts to US$10 million, jointly contributed by MAVCAP, Kumpulan Modal Perdana and MDV.

It is anticipated that this US$10 million investment will help to position Malaysia in the regional start-up ecosystem, with a minimum of 20 startups per year, drawing foreign investees working from MaGIC’s headquarters, acting as a magnet to attract top foreign talents who will work alongside with and help develop local talents.

Ladies and Gentlemen,

MDV is pleased to be able to play a role in enabling the optimisation of opportunities offered by these various initiatives to facilitate the achievement of Malaysia’s vision of climbing up the value chain to increase the country’s global competitiveness and to become a high-income, developed nation. We hope that MDV’s role in this regard will contribute towards laying the foundation for the development of robust high growth sectors that will drive long-term economic growth.

We realise that to be effective in our role, we need to ensure the availability of suitable skills and competence as well as governance and management processes that will optimise our ability to contribute and add value. Towards this end, MDV has commenced a transformation programme that strongly emphasises the improvement of processes, development of skills and rationalisation of structure in order to strengthen our efficiency and effectiveness and our ability to cope with the enhanced role that will be undertaken. We are also tightening our governance structure to ensure discipline, accountability and transparency are in place and practised throughout the system.

Ladies and Gentlemen,

MDV will continue to explore opportunities to add value in playing our role as a technology financier and look forward to the continued support and assistance of our stakeholders; none more important than the Ministry of Finance (MOF) which has consistently offered guidance and advice as well tangible support that has allowed us to expand future portfolio growth and strengthen our expand our mandate to new sectors.

Once again I would like to convey my appreciation to Yang Berhormat Datuk Haji Ahmad Bin Haji Maslan for graciously accepting our invitation to be here this morning.

Thank you.

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