Latest news with #RegionalFundManagers'Initiative
The Star
14 hours ago
- Business
- The Star
Khazanah, unit pick first five venture capital firms
PETALING JAYA: Khazanah Nasional Bhd and its subsidiary, Jelawang Capital, have selected their first five venture capital (VC) firms under the Emerging Fund Managers' Programme (EMP) and Regional Fund Managers' Initiative (RFI) to nurture local VC fund managers and cultivate a more vibrant VC capital ecosystem. The firms selected under the EMP are Vynn Capital, Kairous Capital and First Move, while two firms chosen under the RFI were AppWorks and Granite Asia. The EMP programme is structured to support Malaysian fund managers in raising their first, second or third fund with the goal of creating regionally competitive VC fund managers by strengthening fund governance, building track record and crowding in capital, said a joint statement by the sovereign wealth fund and Jelawang Capital. The RFI initiative aims to attract regional and global fund managers who are committed to enriching the local startup ecosystem, through supporting the growth of Malaysian startups to be regional and global players, including facilitating the re-domiciliation of global companies in Malaysia to expand local job capabilities and attract quality talent in the Malaysian ecosystem. 'Through Dana Impak and Jelawang Capital, we act as both catalyst and connector – bringing together funders, founders, and institutions to strengthen a venture ecosystem that supports firms from nimble startups to medium enterprises and established corporates. 'Our focus is not just on capital, but on crowding in participants to build an ecosystem where innovation can thrive –enhancing Malaysia's economic competitiveness and resilience,' Khazanah's managing director Datuk Amirul Feisal Wan Zahir said in a statement yesterday. The VC firms were selected through a rigorous evaluation process focused on the funds' investment thesis, strength of core team, governance and alignment with strategic national development priorities. Jelawang Capital chairman Datuk Hisham Hamdan added: 'We began with a systems-driven approach to ecosystem building and, via the EMP and RFI, we are excited to support the next generation of Malaysian fund managers and deepen the pool of quality founders. 'In that respect, we are proud to work with this group of high calibre fund managers, while further crowding-in capital, talent, expertise and capabilities into this ecosystem. In shoring up this ecosystem, we look forward to working with like-minded partners and investors.' Jelawang Capital is a company under Dana Impak and will act as Malaysia's national fund-of-funds to strengthen the VC ecosystem with its allocation of RM1bil. Dana Impak plays a catalytic role in Khazanah's investment strategy, and works to catalyse the VC ecosystem, levelling up mid-tier companies and strengthening the country's position in semiconductor and advanced manufacturing. Khazanah and Jelawang Capital stated that Vynn Capital is a VC firm with a focus on the mobility and supply chain sectors across seed to Series A investment stages with a focus on the South-East Asia region. Kairous Capital's roots are in technology and has positioned itself as a cross-border specialist, supporting Malaysian startups in scaling into key South-East Asian markets, including Vietnam, Thailand, and Indonesia. It can also facilitate regional growth for high-potential companies and the transfer of innovation and know-how from technologically advanced countries like China. First Move, meanwhile, is a founder-led VC firm backing pre-seed stage startups across South-East Asia. AppWorks is an early-stage VC from Taiwan that fuses an equity-free accelerator with founder-first capital to scale Greater South-East Asia's tech startups – and has a top-quartile distribution to paid-in capital track record. Its investment mandate is in artificial intelligence, blockchain and digital economy in South-East Asia. Granite Asia is a leading multi-stage investor focused on transformative opportunities across Asia, with a track record of building over 115 unicorns and achieving 61 initial public offerings globally. Its early-stage fund will back transformative startups across Asia in sectors like consumer tech, enterprise software, healthcare, advanced manufacturing and automation.
The Sun
21 hours ago
- Business
- The Sun
Govt introduces new tax incentives to strengthen venture capital, private equity sectors
KUALA LUMPUR: The government has introduced new tax incentives to strengthen the venture capital (VC) and private equity (PE) sectors in the country, said Finance Minister II Datuk Seri Amir Hamzah Azizan. He said the new incentive offers a concessionary tax rate of 5% for up to 10 years for investment funds that invest at least 20% of their capital in local startups. In addition, VC and PE management companies registered with the Securities Commission Malaysia will benefit from a 10% tax rate. The incentives also apply to onshore limited liability partnership structures. 'Capital alone is not enough. For innovation to flourish, policy reform must walk hand in hand with investment,' he said in his speech at the announcement of the appointment of Fund Managers under Jelawang Capital's Emerging Fund Managers' Programme (EMP) and Regional Fund Managers' Initiative (RMI) today. Previously, Malaysia offered tax exemptions rather than concessionary rates. VC firms investing at least 70% of their funds in early-stage startups could apply for a 100% tax exemption on statutory income for five years, and could apply to extend it. Management companies also enjoyed exemptions, but only on income from VC management fees, and were subject to strict qualifying conditions and definitions. To complement these changes, Amir Hamzah said, Bank Negara Malaysia is enhancing the Foreign Exchange Policy (FEP) framework. 'VC and PE firms may now apply based on their fund mandate size, rather than on a transactional basis, for cross-border fundraising and investments exceeding standard FEP limits.' He said this streamlines VC and PE operations to enable capital to move more efficiently across Malaysia's borders and boosting regional competitiveness. 'These reforms mark meaningful progress in positioning Malaysia as a globally competitive hub for venture and private capital,' he added. Khazanah Nasional Bhd and its subsidiary Jelawang Capital have selected the first five VC firms under the EMP and the RMI. 'Together, these five managers are expected to deploy over RM200 million. A significant portion of this will be channeled into Malaysia-Nexus companies, supporting around 50 early-stage firms,' said Khazanah managing director Datuk Amirul Feisal Wan Zahir. Out of the first five fund managers appointed, three firms were selected under the EMP. The programme is structured to support Malaysian fund managers in raising their first, second, or third fund, with the aim of developing regionally competitive venture capital firms by improving governance, building investment track records and attracting capital. The first of the three is Vynn Capital, a home-grown venture capital firm focused on specific sectors. It was established in response to Malaysia's role within the regional innovation landscape. Vynn Capital will focus on the mobility and supply chain sectors, investing across seed to Series A stages, with a regional focus on Southeast Asia. The second firm, Kairous Capital, is a venture capital firm with roots in private equity. It invests in technology companies and is positioned as a cross-border specialist, supporting Malaysian startups in expanding into key Southeast Asian markets such as Vietnam, Thailand and Indonesia. Kairous also facilitates regional growth through the transfer of innovation and know-how from more advanced technology markets like China. The third is First Move, a venture capital firm that invests in pre-seed stage startups across Southeast Asia. The firm partners with second-time founders and domain experts, not just as early investors, but also as co-builders, to help turn ideas into scalable businesses. First Move often serves as the first institutional investor. In addition to these three EMP recipients, two regional firms were selected under the RMI, which is designed to attract regional and global fund managers who are committed to enriching Malaysia's startup ecosystem. This includes supporting the growth of Malaysian startups into regional and global players, facilitating the redomiciliation of global companies in Malaysia, expanding local job opportunities, and attracting high-quality talent. The first RMI partner is AppWorks, an early-stage venture capital firm based in Taiwan. AppWorks combines an equity-free accelerator with founder-first capital to help scale tech startups across Greater Southeast Asia. The firm has a performance track record, with top-quartile distributions to paid-in capital. AppWorks' investment focus includes artificial intelligence, blockchain and the digital economy. It plans to launch Malaysia-focused cohorts for Web 2.0 and Web 3.0, supported by in-market experts, capital, and a regional network of founders to help accelerate the growth of Malaysian startups. The second RMI partner is Granite Asia, a multistage investor with a record of building over 115 unicorns and achieving 61 initial public offerings globally. Through its early-stage fund, Granite Asia will invest in startups in sectors such as consumer tech, enterprise software, healthcare, advanced manufacturing and automation. The firm will collaborate with Khazanah and Jelawang Capital to give Malaysian founders access to ecosystem programmes, strategic guidance and Granite Asia's extensive network of top founders and industry players.
The Star
a day ago
- Business
- The Star
Govt approves venture capital tax incentives to boost investments in startups
Minister of Finance II Datuk Amir Hamzah Azizan KUALA LUMPUR: The government has approved new venture capital (VC) tax incentives to include a five per cent concessionary tax rate for up to 10 years for eligible fund entities investing at least 20 per cent in local startups, said Finance Minister II Datuk Seri Amir Hamzah Azizan. He said the new VC tax incentive also includes a 10 per cent tax rate for VC and private equity (PE) management companies registered with the Securities Commission, subject to conditions. "The new VC tax incentive extends to onshore limited liability partnerships, further broadening investor base to deepen capital pool for local startups,' he said in his keynote address after Khazanah Nasional Bhd and its subsidiary, Jelawang Capital, announced the selection of the first five VC firms under its Emerging Fund Managers' Programme and Regional Fund Managers' Initiative, event here today. These measures are part of the government's efforts to strengthen the venture capital ecosystem. Amir Hamzah said that Bank Negara Malaysia, in parallel, will facilitate a more efficient and investor-friendly application process under the Foreign Exchange Policy (FEP) framework. "VC and PE firms may now apply based on their fund mandate size, rather than on a transactional basis, for cross-border fundraising and investments exceeding standard FEP limits,' he said. Moreover, Amir Hamzah said that this streamlines VC and PE operations, enabling capital to move more efficiently across Malaysia's borders and boosting regional competitiveness, simultaneously positioning Malaysia as a globally competitive hub for venture and private capital. Today, Khazanah has selected the first five VC firms under the Jelawang Emerging Fund Managers' Programme and Regional Fund Managers' Initiative, reflecting its commitment to nurturing local fund managers and the VC ecosystem. The five VC firms are Vynn Capital, Kairous Capital, First Move, AppWorks and Granite Asia. Welcoming the selection of five fund managers, Amir Hamzah said that Jelawang Capital are not only financing startups but also encouraging them to scale across borders, solve real problems, and create real jobs. "We want an ecosystem where a university graduate with a bold idea can find a funder, mentor, regulatory path, and market. Where a Malaysian founder can raise capital locally, and benefit from Malaysia's conducive ecosystem, scale regionally across Asia, and ultimately list in Kuala Lumpur,' he said. This month, Kuala Lumpur entered the Top 20 Emerging Startup Ecosystems globally. Today, Malaysia's VC ecosystem remains modest, with just US$429 million (US$1 = RM4.29) in funding in 2024. - Bernama
The Sun
a day ago
- Business
- The Sun
Malaysia approves VC tax incentives to boost startup investments
KUALA LUMPUR: The government has approved new venture capital (VC) tax incentives to include a five per cent concessionary tax rate for up to 10 years for eligible fund entities investing at least 20 per cent in local startups, said Finance Minister II Datuk Seri Amir Hamzah Azizan. He said the new VC tax incentive also includes a 10 per cent tax rate for VC and private equity (PE) management companies registered with the Securities Commission, subject to conditions. 'The new VC tax incentive extends to onshore limited liability partnerships, further broadening investor base to deepen capital pool for local startups,' he said in his keynote address after Khazanah Nasional Bhd and its subsidiary, Jelawang Capital, announced the selection of the first five VC firms under its Emerging Fund Managers' Programme and Regional Fund Managers' Initiative, event here today. These measures are part of the government's efforts to strengthen the venture capital ecosystem. Amir Hamzah said that Bank Negara Malaysia, in parallel, will facilitate a more efficient and investor-friendly application process under the Foreign Exchange Policy (FEP) framework. 'VC and PE firms may now apply based on their fund mandate size, rather than on a transactional basis, for cross-border fundraising and investments exceeding standard FEP limits,' he said. Moreover, Amir Hamzah said that this streamlines VC and PE operations, enabling capital to move more efficiently across Malaysia's borders and boosting regional competitiveness, simultaneously positioning Malaysia as a globally competitive hub for venture and private capital. Today, Khazanah has selected the first five VC firms under the Jelawang Emerging Fund Managers' Programme and Regional Fund Managers' Initiative, reflecting its commitment to nurturing local fund managers and the VC ecosystem. The five VC firms are Vynn Capital, Kairous Capital, First Move, AppWorks and Granite Asia. Welcoming the selection of five fund managers, Amir Hamzah said that Jelawang Capital are not only financing startups but also encouraging them to scale across borders, solve real problems, and create real jobs. 'We want an ecosystem where a university graduate with a bold idea can find a funder, mentor, regulatory path, and market. Where a Malaysian founder can raise capital locally, and benefit from Malaysia's conducive ecosystem, scale regionally across Asia, and ultimately list in Kuala Lumpur,' he said. This month, Kuala Lumpur entered the Top 20 Emerging Startup Ecosystems globally.
The Sun
a day ago
- Business
- The Sun
Govt unveils new tax incentives to boost VC ecosystem
KUALA LUMPUR: The government has approved new venture capital (VC) tax incentives to include a five per cent concessionary tax rate for up to 10 years for eligible fund entities investing at least 20 per cent in local startups, said Finance Minister II Datuk Seri Amir Hamzah Azizan. He said the new VC tax incentive also includes a 10 per cent tax rate for VC and private equity (PE) management companies registered with the Securities Commission, subject to conditions. 'The new VC tax incentive extends to onshore limited liability partnerships, further broadening investor base to deepen capital pool for local startups,' he said in his keynote address after Khazanah Nasional Bhd and its subsidiary, Jelawang Capital, announced the selection of the first five VC firms under its Emerging Fund Managers' Programme and Regional Fund Managers' Initiative, event here today. These measures are part of the government's efforts to strengthen the venture capital ecosystem. Amir Hamzah said that Bank Negara Malaysia, in parallel, will facilitate a more efficient and investor-friendly application process under the Foreign Exchange Policy (FEP) framework. 'VC and PE firms may now apply based on their fund mandate size, rather than on a transactional basis, for cross-border fundraising and investments exceeding standard FEP limits,' he said. Moreover, Amir Hamzah said that this streamlines VC and PE operations, enabling capital to move more efficiently across Malaysia's borders and boosting regional competitiveness, simultaneously positioning Malaysia as a globally competitive hub for venture and private capital. Today, Khazanah has selected the first five VC firms under the Jelawang Emerging Fund Managers' Programme and Regional Fund Managers' Initiative, reflecting its commitment to nurturing local fund managers and the VC ecosystem. The five VC firms are Vynn Capital, Kairous Capital, First Move, AppWorks and Granite Asia. Welcoming the selection of five fund managers, Amir Hamzah said that Jelawang Capital are not only financing startups but also encouraging them to scale across borders, solve real problems, and create real jobs. 'We want an ecosystem where a university graduate with a bold idea can find a funder, mentor, regulatory path, and market. Where a Malaysian founder can raise capital locally, and benefit from Malaysia's conducive ecosystem, scale regionally across Asia, and ultimately list in Kuala Lumpur,' he said. This month, Kuala Lumpur entered the Top 20 Emerging Startup Ecosystems globally. Today, Malaysia's VC ecosystem remains modest, with just US$429 million (US$1 = RM4.29) in funding in 2024.
