MDV Introduces Vendor Development Programme - More Than RM50.0 million in Financing To Be Offered To Eligible Technology Companies Undertaking NFCP-Related Projects
KUALA LUMPUR, Nov 12 (Bernama) — In support of the Government’s aspirations to develop the country’s digital economy through the implementation of the National Fiberisation and Connectivity Plan (NFCP), Malaysia Debt Ventures Berhad (MDV), a subsidiary of the Minister of Finance Incorporated (MOF Inc.), has introduced its latest financing programme, the NFCP-Vendor Development Programme or NFCP – VDP. The NFCP – VDP is tailored to match the financing requirements of eligible technology companies that undertake any project related to the NFCP comprising contractors/sub-contractors and suppliers.
In conjunction with the rolling out of the new programme, MDV today hosted “MDV Funding Day 2019” to enhance awareness on opportunities available for players in the telecommunication industry. The seminar focusses on the implementation of the NFCP and related issues such as the adoption of the 5G technology and the future landscape of Malaysia’s technological progress. The seminar also touched on the subject of financing, with discussions on several financing issues including existing gaps, potential opportunities and available options for NFCP-players such as the newly-launched NFCP-VDP.
Speaking at the event, MDV Chief Executive Officer, Nizam Mohamed Nadzri expressed his optimism that MDV will be able to significantly contribute to the deployment of advanced yet affordable digital infrastructure in Malaysia under the NFCP through the Company’s latest financing offering, the NFCP-VDP, continuing MDV’s socio-economic role in building the nation’s technology infrastructure.
“With any strategic plan and initiatives, particularly those with a nation-building objective, the importance of sufficient access to financing in enabling related projects to be carried out and implemented, cannot be stressed enough,” said Nizam.
“At MDV, we understand this critical requirement, hence we always strive to ensure that we are able to play a role and to positively contribute to providing financing access in underserved areas within our mandate, specifically for projects undertaken by Technology SMEs and startups. And this is exactly what the NFCP-VDP aims to achieve—to bridge the financing gap faced by smaller companies that might otherwise hinder their contributions to the success of the NFCP.”
Although the implementation of the NFCP is expected to be primarily driven by major service providers or anchor companies such as Malaysia’s leading Telco players, the NFCP-VDP serves to cater to the financing needs of the appointed sub-contractors of these anchor companies in completing their work such as the laying of fibre cables, cabinets, pedestal boxes, civil works including plinth, roadworks and trenching, etc.
Under the NFCP-VDP, MDV has committed more than RM50.0 million in funds to be lent out to eligible technology companies undertaking NFCP-related projects. With up to RM5.0 million in financing limit per application, the programme also offers a competitive financing rate, simplified approval processes, a customised facility structure based on the contract requirements of each project, as well as a credit guarantee.
As to date, MDV has financed more than 880 technology projects in the areas of ICT, Green Technology, Biotechnology and Emerging Technology with more than RM11.8 billion in financing having been disbursed. In terms of the country’s network infrastructure development, MDV has helped to finance the building of more than 5,900 3G/4G towers across Malaysia. MDV is also currently the only financier in Malaysia offering Venture Financing, the Shariah-compliant equivalent of the Venture Debt models used by more developed markets, for high-growth venture capital-backed technology startups in Malaysia.