Malaysia launches chip fund to boost IPO-ready firms
BSIF I aims to future-proof Malaysia's high-tech manufacturing sector
by RUPINDER SINGH
IN A landmark move to fortify Malaysia's semiconductor ecosystem and accelerate the growth of IPOs-ready companies, the Malaysian Investment Development Authority (MIDA), Federation of Malaysian Manufacturers (FMM) and Bintang Capital Partners have launched the Bintang Semiconductor Impact Fund I (BSIF I) — a pioneering initiative that blends financial support with sustainability and social impact.
The tripartite collaboration was formalised through a memorandum of understanding (MOU) signed on April 16, 2025.
The fund aims to future-proof Malaysia's high-tech manufacturing sector by building resilience in the domestic semiconductor value chain, enhancing environmental and social performance, and preparing companies for eventual public listing.
MIDA CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid hailed the partnership as a turning point for the country's semiconductor ambitions.
'This transformative partnership marks a pivotal moment in Malaysia's semiconductor journey. By combining MIDA's strategic oversight, FMM's extensive industry network and Bintang Capital's financial expertise, we're creating a powerful ecosystem that will elevate local companies to global standards,' added Sikh Shamsul.
'Our focus is to develop world-class capabilities, attract premium investments and establish Malaysia as a trusted global semiconductor hub. This collaboration provides the perfect platform to nurture innovation, drive sustainable practices and create lasting economic impact for our nation,' he added.
The launch of BSIF I aligns with the objectives of Malaysia's National Semiconductor Strategy (NSS), a multi-pronged roadmap aimed at building up domestic capabilities and capturing greater value across the semiconductor supply chain.
The fund is designed to target investments in companies within and adjacent to the semiconductor space, particularly those engaged in high-tech manufacturing, advanced automation, and IR4.0 solutions.
FMM president Tan Sri Soh Thian Lai described the initiative as a critical enabler for small and medium enterprises (SMEs), which make up the backbone of Malaysia's manufacturing base.
'As the voice of the manufacturing sector, FMM is pleased to support this initiative, which will enable local businesses to enhance their capabilities, tap into funding opportunities and adopt best practices in governance and sustainability.
'At the same time, it aligns with FMM's ambitious aspiration to cultivate 100 IPO-ready companies within five years. Helping companies become IPO-ready and granting them access to financing are crucial steps in enabling their growth. By supporting these promising enterprises, FMM aims to strengthen Malaysia's manufacturing landscape, driving innovation and competitiveness across the region,' Soh added.
The fund also incorporates a strong environmental, social and governance (ESG) framework.
BSIF I will support businesses that are committed to carbon transition goals and promote women's empowerment through workforce development.
Portfolio companies will be expected to pursue B Corp certification, which signifies high standards in governance, environmental sustainability and social impact.
Bintang Capital CEO Johan Rozali-Wathooth described the collaboration as a holistic model that integrates financial capital with values-based investing.
'As the saying goes, it takes a village to raise a child — the collaboration between Bintang Capital, MIDA and FMM brings together three critical elements needed to 'raise' a vibrant and sustainable high-technology manufacturing industry.
'The collaboration combines Bintang Capital's investment and impact track record, MIDA's deep policy expertise, and FMM's extensive networks within Malaysia's manufacturing sector,' he said.
'On the impact front, Bintang Capital is a passionate advocate for building compa- nies which represent the very best ideals of responsible capitalism: Companies which meet the highest standards of governance and ethicality as represented by B Corp Certification, that also promote and support the empowerment of women, and who also champion environmental sustainability.'
BSIF I will serve as a catalytic platform to accelerate Malaysia's positioning in the global semiconductor supply chain at a time when geopolitical shifts and digitalisation are reshaping the sector.
By focusing on sustainable development and IPO-readiness, the fund aims not only to create financial returns but also to build a new generation of globally competitive, socially responsible Malaysian enterprises.
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