MIDA, FMM, Bintang Capital team up to launch fund to transform Malaysia's semiconductor industry
KUALA LUMPUR: The Malaysian Investment Development Authority (MIDA), the Federation of Malaysian Manufacturing (FMM), and Bintang Capital Partners Bhd have joined forces to introduce the Bintang Semiconductor Impact Fund I (BSIF I) to revolutionise Malaysia's semiconductor industry.
In a joint statement today, MIDA, FMM, and Bintang Capital said that the three parties have signed the memorandum of understanding on April 16, 2025.
The fund is designed to promote the industry's sustainable practices and social impact, while strengthening the domestic semiconductor value chain and preparing companies for potential initial public offerings (IPO), they said.
"BSIF I will target investments in companies within and adjacent to the semiconductor value chain, including high-tech manufacturing and automation.
"The fund emphasises carbon transition initiatives and promotes career development opportunities for women, while adhering to global 'B Corp' certification standards,' they said.
They said that, similar to a private equity fund, BSIF I aims to fund companies over a few years for them to grow and then transition to an IPO.
The three parties said the partnership aligns perfectly with Malaysia's National Semiconductor Strategy (NSS) goals, which focus on developing local semiconductor capabilities and supporting the growth of small and medium enterprises (SMEs).
MIDA chief executive officer (CEO) Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the alliance would focus on local companies 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 said.
Meanwhile, FMM president Tan Sri Soh Thian Lai said the collaboration 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.
"The FMM is dedicated to assisting SMEs in their journey to expand and thrive,' he said, adding that the FMM aims to strengthen Malaysia's manufacturing landscape, driving innovation and competitiveness across the region.
Bintang Capital CEO Johan Rozali-Wathooth said the firm is a passionate advocate for building companies that represent the very best ideals of responsible capitalism -- companies which meet the highest standards of governance and ethics, as represented by the "B Corp' certification.
"Our success will put Malaysia on the global map in terms of having a highly differentiated and impactful high-technology manufacturing ecosystem,' he said. - Bernama
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