21 Jul Government Urges GLCs, GLICs, MKDs and VCs to Finance Start-Up Fund to Grow Malaysia’s Digital Economy
The government have called on Government Linked Corporations (GLCs), Government Linked Investment Companies (GLICs), Minister of Finance Incorporated (MKD) and venture capitalists (VCs) to finance local technology start-ups and scale-ups. The digital economy which now accounts for over 17% of Malaysia’s GDP represents the future and more needs to be done to drive growth for Malaysian companies and SMEs in this sector. One of the most critical elements in building a vibrant and sustainable ecosystem in this sector is access to ready capital. To date, local GLCs have made initial investments into this area but more is needed as compared to other countries. Creating a new funding platform for start-ups and scale-ups with the support of various regulators and ministries is in line with the government’s efforts to drive the national agenda for growing the digital economy. It will also spur the GLCs, GLICs, MKDs and VCs to collaborate with each other as they work to nurture businesses that are starting up or moving to the next level of growth.