Malaysia Debt Ventures sets up more than RM50m fund to support digital economy development
KUALA LUMPUR,. Malaysia Debt Ventures Bhd (MDV) has committed more than RM50 million in funds under the National Fiberisation and Connectivity Plan-Vendor Development Programme (NFCP-VDP) to support the development of the digital economy.
Chief executive officer, Nizam Mohamed Nadzri said MDV always play a role and to positively contribute to providing financing access in underserved areas within its mandate, specifically for projects undertaken by technology SMEs and startups.
“This is exactly what the NFCP-VDP aims to achieve — to bridge the financing gap faced by smaller companies that might otherwise hinder their contributions to the success of the NFCP,” he said in a statement today.
The programme is tailored to match the financing requirements of eligible technology companies that undertake any project related to the NFCP comprising contractors or sub-contractors and suppliers.
With up to RM5.0 million in financing limit per application, the programme offers a competitive financing rate, simplified approval processes, a customised facility structure based on the contract requirements of each project, as well as a credit guarantee.
The programme serves to cater to the financing needs of the appointed sub-contractors of anchor companies in completing their work such as the laying of fibre cables, cabinets, pedestal boxes, civil works including plinth, roadworks and trenching.
As to date, it has financed more than 880 technology projects in the areas of ICT, green technology, biotechnology and emerging technology with more than RM11.8 billion in financing having been disbursed.
In terms of the country’s network infrastructure development, MDV has helped to finance the building of more than 5,900 3G and 4G towers across Malaysia.
MDV is also currently the only financier in Malaysia offering Venture Financing, the Shariah-compliant equivalent of the venture debt models used by more developed markets, for high-growth venture capital-backed technology startups. — Bernama