Khazanah rolls out dual-track strategy to boost mid-tier firms
The initiative aims to benefit over 100 MTCs by strengthening capabilities, improving access to funding and driving innovation-led growth.
"Khazanah's private credit strategy under Dana Impak aims to accelerate the growth of Malaysian MTCs with non-dilutive financing solutions," it said in a statement.
Khazanah is partnering with Navis Capital Partners, a Kuala Lumpur-based Asean-focused investment firm, and Granite Asia, to provide customised credit solutions that support the growth of local MTCs.
Under its private equity track, the sovereign wealth fund is also working with experienced fund managers to help MTCs scale up, enter regional markets, and enhance operations.
It also announced a partnership with Malaysian private equity firm Creador, known for helping growth-stage companies expand regionally and unlock performance through value creation.
Khazanah managing director Datuk Amirul Feisal Wan Zahir said that through Dana Impak, the fund plays both a catalyst and connector role, addressing gaps in the ecosystem, providing long-term capital where the market falls short, investing in talent, and attracting private investors.
He said this requires a whole-of-nation effort to drive innovation and support sustainable growth.
"Our focus on levelling up Malaysian MTCs represent our Advancing Malaysia strategy to enhance Malaysia's economic competitiveness and resilience. We are pleased to welcome our partners on this journey to unlock the full potential of Malaysian MTCs," he said.
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Citing 2024 data, assistant manager of research at iFast Capital Kevin Khaw Khai Sheng pointed out that Malaysian exports of E&E products to the Unites States stood at approximately RM120bil, followed by RM113bil to Singapore, with the latter then re-exporting to other nations. Given the significant amount of US exports, he is expecting Malaysian semiconductor companies - whether they are outsourced semiconductor assembly and test (Osat) players or electronics manufacturing services (EMS) providers - to be impacted by the latest news, except for companies that are focused domestically or not exporting to the United States. 'The question is just the magnitude of how severe the impact to respective companies will be. That said, more clarity is still needed on how these new policies are going to be imposed and what would result from further negotiations. 'We believe global leaders will start to negotiate with the United States again regarding this new tariff and we will closely monitor the development,' Khaw said. On the other hand, head of equity sales and analyst at Rakuten Trade, Vincent Lau, believes it is too early to quantify the effect the new levies will have on Malaysian semiconductor companies, attributing the adverse reaction towards the share prices on industry players to a knee-jerk reaction. Performance of some Malaysian semiconductor stocks closed lower yesterday, with the notable exception of Inari Amertron Bhd which closed three sen up at RM1.89, having reached an intraday high of RM1.93. Globetronics Technology Bhd closed unchanged, Unisem (M) Bhd was five sen lower at 5pm yesterday, closing at RM2.32, while Malaysian Pacific Industries Bhd (MPI) retreated 20 sen to RM20.30, with Dagang Nexchange Bhd (Dnex) edged down one sen to close at 26 sen. 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Kenanga Research, in a note to clients yesterday, anticipated the new tariffs to disrupt the global semiconductor supply chain. It said the protectionist stance could accelerate the shift of manufacturing footprints into the United States, particularly among firms seeking to mitigate tariff risks. Nonetheless, the brokerage firm added that clarity is still lacking on the specific product categories that fall under the definition of 'semiconductors' covered by the tariff, leaving room for further interpretation. 'Until full policy details are unveiled, the industry is likely to adopt a wait-and-see approach. 'We maintain our 'neutral' stance on the sector,' the research house said.
