MDV powers Malaysia's tech innovation with over RM13bil financing

New Straits Times

30-04-2025

KUALA LUMPUR: Malaysia Debt Ventures Bhd (MDV) has emerged as a key enabler of the nation's innovation and digital transformation agenda, with more than RM13 billion channelled into over 1,000 high-impact, technology-driven projects.
Backed by the Ministry of Finance (MOF) and operating under the purview of the Ministry of Science, Technology and Innovation (MOSTI), MDV continues to play a pivotal role in financing the future of Malaysia's digital economy.
"Its focus spans strategic sectors such as information and communications technology, green technology, biotechnology, strategic and emerging technologies, as well as start-ups that are pushing boundaries in Malaysia and beyond.
"Through strategic financial support and access to critical resources/ services, MDV empowers promising tech enterprises to scale, innovate, and thrive, fueling Malaysia's ambition to become a leading digital and innovation hub," MDV told Bernama.
The financing institution's proven impact is already evident, whereby in the refurbished electronics sector, CompAsia Sdn Bhd, supported by MDV, has processed over 2.1 million second-hand mobile devices between 2019 and 2022, reducing 420 tonnes of e-waste and 181,000 tonnes of carbon emissions, and conserving 46 billion gallons of water.
MDV highlighted that the results significantly contribute to the country's greener and more circular digital economy.
Meanwhile, in the green technology space, Concord Green Energy Sdn Bhd has developed the award-winning Lepar Hilir Biogas Plant with MDV's financial backing.
MDV said the facility, which serves rural communities with renewable energy, helps cut over 40,000 tonnes of carbon emissions annually.
"Malaysia has the talent, ambition, and ideas. But innovation does not fund itself.
"By bridging the financing gap for high-risk, high-reward industries, MDV ensures that Malaysia does not just keep up with global trends — it leads," MDV said.
Financing Strategies Aligned With Country's Economic Aspirations
MDV's financing strategies aligned closely with the country's economic aspirations, offering tailored funding for every growth stage, from start-ups and small and medium enterprises (SMEs) to large-scale projects.
Its work directly supports national priorities, from digital transformation to energy transition, strengthening the country's long-term competitiveness.
Among the standout success stories is LiveIn Sdn Bhd, a pioneer in the PropTech sector. Its affordable and flexible co-living spaces for students and young professionals, which were made possible through MDV's support, have transformed urban housing solutions with a community-focused model.
In financial technology, MDV has helped fuel the rise of alternative financing platforms such as CapBay and Funding Societies Malaysia.
These platforms have unlocked new opportunities for SMEs across Malaysia by providing supply chain financing and peer-to-peer lending solutions, driving growth in underserved markets.
"Notably, CapBay has disbursed over RM2 billion to more than 400 SMEs, playing a vital role in driving growth in underserved markets and empowering businesses.
"Meanwhile, Funding Societies has facilitated over RM18 billion (US$4 billion) in business financing regionally, serving about 100,000 SMEs and achieving over RM6 billion (US$1.4 billion) in annualised gross transaction value since entering the payments space in 2022," MDV added.
It said Funding Societies offers various financing options to SMEs, including micro-financing up to RM200,000 and business-term financing up to RM500,000, contributing to the growth of SMEs in Malaysia.
Funding Portfolio
Far from a conventional lender, MDV operates as a strategic partner, assessing not just risk but also the people, technologies and potential that drive the businesses it funds.
"With an in-house team skilled in identifying emerging trends, evaluating technologies, and tracking market evolution, MDV's approach goes beyond financial analysis.
"It ensures that funding decisions contribute to long-term national goals such as digital transformation and energy transition," it said.
MDV's portfolio of funding options includes venture debt for start-ups looking to scale while minimising equity dilution, project financing for initiatives like renewable energy and digital infrastructure, and contract financing for SMEs undertaking large-scale commitments.
"As industries evolve and new challenges emerge, MDV remains committed to empowering the next generation of tech innovators.
"Financing the future is not just about funding businesses; it is about building a stronger, more resilient Malaysia," it said.