MDV aims to okay RM800mil loans

Category: MDV in the News Post Date: January 11, 2003

MDV aims to okay RM800mil loans

MALAYSIA Debt Ventures Bhd (MDV), a debt financier and development facilitator for information and communications technology (ICT) companies, aims to approve loans totalling over RM800mil to information technology (IT)-related firms incorporated in Malaysia by the end of this year.

MDV managing director and chief executive officer Jiro Suzuki said the company (formerly known as MAVCAP Ventures Bhd) had approved loans worth RM240mil in the past three to four months and expected a further increase in loan approvals.

“That’s about RM80mil a month,” Suzuki told reporters after the signing of a memorandum of understanding (MoU) between MDV and Multimedia Development Corp Sdn Bhd (MDC) in Cyberjaya yesterday. The event was witnessed by Energy, Communications and Multimedia Minister Datuk Amar Leo Moggie.

Jiro Suzuki

MDV, under an agreement with the Japanese government, has secured RM1.6bil of funds to help ICT-related companies obtain loans, which have to be utilised by 4½ years.

“If the funds are insufficient for the period, we will look for other sponsors,” Suzuki said.

The MoU signed yesterday was for the forging of a strategic alliance to create a platform to jointly market Malaysia as a global ICT hub and to attract ICT-related investors with regulatory incentives from MDC and access to financial loans from MDV.

Besides tapping MDC’s vast network and infrastructure, Suzuki said ICT-related companies incorporated in Malaysia could secure loans from the company at below market rates.

“They could be local or foreign,” he said, adding that they would benefit significantly from the combined facilities and resources offered by MDV and MDC.

He also said that under the MoU the two organisations had agreed to explore ways of providing additional incentives to local and foreign companies to set their base in Malaysia and expedite growth of the local ICT sector.

“However, we will first look at our base structures for synergistic opportunities,” Suzuki said, adding that the collaboration would also entail the development of a Web-based marketing campaign themed “Fast Track into Asia – the Malaysian Technology Route” to promote tripartite relationship between MDC, MDV and the shared IT service providers.

According to MDC chief executive officer Datuk Dr Mohamed Arif Nun, there are currently 812 Multimedia Super Corridor (MSC)-status companies, of which 50 are multinational corporations (MNCs) and about 120 are based in Cyberjaya.

“Our collaboration with MDV will further attract MNCs to set up regional and global shared services at the MSC, thereby providing a massive revenue base for them (MSC-status companies).

“Moreover, there will be spin-offs for MSC-status companies to accelerate the creation of a critical mass of knowledge workers and provide value for investors, who may be users and providers of the shared services,” Arif said.

Source: The Star

Share this post