MDV to promote more tech companies under 11th Malaysia Plan
KUALA LUMPUR: Malaysia Debt Venture Bhd (MDV) has submitted a strategic paper to the Government in its quest to promote more technology companies in the 11th Malaysia Plan (11MP).
Managing director and chief executive officer Datuk Md Zubir Ansori Yahaya said MDV had sought a RM100mil fund in the 11MP to help technology companies bridge the gap between post research and development, and pre-commercialisation.
He said a RM40mil fund managed by MDV to promote technology companies in the 10MP had been fully utilised.
“From our observation, many more early-stage technology companies require similar funding to spur business growth,” he told Bernama.
MDV lends money to technology companies at the pre-commercialisation stage to help improve the commercialisation rate of developed technologies and technology participation.
For the past 12 years, MDV has played a significant role in nurturing more than 600 technology projects by disbursing loans to the tune of over RM8bil.
Under the 10MP Commercialisation Fund, MDV had approved a Mudharabah facility worth RM40mil to finance technology companies and since 2012, had disbursed RM49mil to 18 technology companies.
“We want to emulate the success of the 10MP Commercialisation Fund in the 11MP,” Md Zubir Ansori said.
Apart from the 10MP Commercialisation Fund, MDV also manages the Intellectual Property Financing Scheme and the Bumiputra, Biotechnology and Bio-Industry Development Fund (in collaboration with the Science, Technology and Innovation Ministry, the Malaysian Biotechnology Corp and the Economic Planning Unit).
Md Zubir said MDV aspired to expand its funding portfolio in 2015 by venturing into new areas, namely aerospace, automobile and the oil and gas.
Information and communication technology (ICT) is still the mainstay of MDV’s portfolio, he said, adding: “ICT accounted for 65% of our portfolio of over RM1bil, followed by green technology between 25% and 28% while the rest is biotechnology.”
On the recent overnight policy rate (OPR) hike by Bank Negara, he said it would not affect MDV schemes, cost structure and business operations that catered for niche markets.
“However, in the medium and long term, should it continue on an uptrend, the OPR could have some impact on MDV’s financing structure, and depending on the financing tenure of loans,” he added.