– MEDIA RELEASE –
MDV, NCIA COLLABORATES TO ACCELERATE TECHNOLOGY DEVELOPMENT IN NCER
MDV to widen financing access for tech MSMEs in the region and support NCER’s effort in becoming a world-class economic region and technology hub
KULIM, 15 FEBRUARY 2023: Malaysia Debt Ventures Berhad (MDV) today announces its collaboration with the Northern Corridor Implementation Agency (NCIA) in an effort to accelerate technology development in the Northern Corridor Economic Region (NCER) by widening access to financing for technology MSMEs located in the region, particularly in the areas of energy efficiency, automation, and smart engineering.
MDV is a subsidiary of the Minister of Finance (Incorporated) [MOF (Inc)] and an agency under the purview of the Ministry of Science, Technology and Innovation (MOSTI) that was established more than two decades ago with a specific role to develop the nation’s technology sector by offering innovative and flexible financing to underserved but high-potential technology-related companies to ensure their growth and success.
The collaboration would see MDV offering access to several of its financing schemes and specialised funding programmes for eligible tech companies in the NCER involved in Energy Efficiency, Start-ups, and technology projects. A funding clinic session for targeted tech companies was also held today by MDV & NCIA at the Kulim Golf & Country Resort as part of the initial outreach initiatives.
MDV’s Chief Executive Officer, Nizam Mohamed Nadzri explained that MDV has continuously undertaken business development and marketing efforts throughout the Nation, where geographical focus has not only been in the Central Region but also the Northern and Southern regions, the East Coast, and Sabah & Sarawak. The inclusive approach fully supports the government’s aim to assist the development of local MSMEs, particularly innovative and high-growth companies capable of generating high-income jobs for the people and driving the country’s economic growth, in line with the Malaysia Madani vision of creating a sustainable and prosperous Malaysia.
“MDV intends to continue expanding the Company’s funding base to reach more technology MSMEs in different regions in Malaysia and in untapped sectors to ensure a more holistic coverage of our financing. The northern region in particular, with the strategic locations of its four states, carries an immense potential to become a world-class technology hub, boosted by its growing reputation as a centre for high-value industries in the country,” he said.
NCIA’s Chief Executive, Mohamad Haris Kader Sultan said that, “In catalysing a World Class Economic Region and Technology Hub in this region, NCIA via the NCER Strategic Development Plan 2021-2025, focuses on Talent Development in Strategic and High Impact Industries as well as Development in Advanced Technologies. This is achieved through its existing matured ecosystem which include attractive customised incentives for priority sectors, talent ecosystem development via collaborations with academia and industries, vendor localisation programmes, as well as strategically located projects and industrial parks. NCIA’s collaboration with an agency such as MDV to empower the tech fraternity in NCER is one of the initiatives that will allow NCIA to realise this target.”
Mohamad Haris further explained that the establishment of the NCER Technology Innovation Centre (NTIC) in Penang will offer technology driven MSMEs a hub for technology and innovation activities in developing the industry ecosystem in NCER. MSMEs can thus leverage on NTIC as the centre offers incubators for start-ups, a shared services lab for engineering solutions, a centre for IR4.0, a networking platform consisting of industry players as well as state of the art facilities and thus help to considerably reduce the companies’ capital investment costs in R&D and the reskilling and upskilling of talent.
Nizam added that while the Government’s has extended significant efforts to funnel funds to MSMEs through strategic measures and stimulus packages such as PENJANA, PRIHATIN and PEMERKASA, MSMEs in Malaysia remained unserved or underserved with an estimated RM90.00 billion in financing gap, as outlined in the Capital Market Blueprint. Hence, MDV is intensifying efforts to enable and facilitate underserved MSMEs that are seeking available and suitable financing options to help bridge this financing gap and increase the companies’ likelihood to grow and succeed.
“With more than RM600.00 million in financing expected to be approved this year across different tech sectors within our mandate and risk appetite, MDV is determined to continue to strengthen Malaysia’s tech ecosystem, and to contribute to a stable, competitive and resilient business environment,” Nizam concluded.
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About MDV – The Nation’s Technology Financier
Malaysia Debt Ventures Berhad (MDV), which was established in 2002, is a subsidiary of the Minister of Finance (Incorporated) [MOF (Inc)] with the objective of providing flexible and innovative financing to develop high-impact and technology-driven sectors of the economy, identified and prioritised by the Government as future engines of growth. For two decades, MDV has supported, nurtured and guided Malaysian technology companies and startups while continuing to evolve as the ecosystem progresses and expands.
Since its establishment, MDV has grown from strength to strength as the nation’s technology financier, providing access to innovative and flexible financing solutions, and specialised funding programmes to more than 1,000 technology companies and projects, enabling it to contribute to the diversification and generation of new sources of high-value economic growth for the country. MDV’s diverse financing portfolio includes companies in the ICT, Green Technology, Biotechnology, Strategic Technology and Emerging Technology sectors. Throughout the years, MDV has charted many firsts, including being the pioneering, and largest, Venture Debt/Financing solutions provider in Malaysia. With the rapid rate of technological and digital advance, and Malaysia’s continued push towards becoming an advanced nation, MDV will continue to occupy a significant role in ensuring a thriving tech and start-up ecosystem in Malaysia while achieving its vision of becoming the Nation’s Technology Financier.
For more information on MDV, visit http://www.mdv.com.my/
About NCIA/NCER
The Northern Corridor Implementation Authority (NCIA) is a regional development authority responsible for establishing directions, devising policies and strategies related to the socioeconomic development of the Northern Corridor Economic Region (NCER). Incorporated in June 2008 under the Northern Corridor Implementation Authority Act 2008 (Act 687), NCER encompasses the four northern states of Kedah, Penang, Perak and Perlis in Peninsular Malaysia. NCIA’s Chief Executive is Mohamad Haris Kader Sultan.
NCIA drives the growth of NCER towards becoming an excellent economic region while catalysing and implementing high value-added development programmes in six (6) economic clusters: Manufacturing, Agribusiness, Petrochemical, Mining, Green Economy and Services (Inc. Tourism; Logistics and Connectivity; and Digital Economy).
For more information on NCIA and NCER, visit http://www.ncer.com.my.
For media enquiries, please contact:
Siti Ezrina Alias
Head, PR & Communications
Malaysia Debt Ventures Berhad
+6011 3306 5216