A venture capital fund is being established by Malaysia’s sovereign wealth fund Khazanah Nasional in collaboration with Blue Chip Venture Capital and the local retirement fund KWAP. The fund, which could be worth up to 3 billion ringgit (US $627 million), would focus on startups in Southeast Asia, according to Bloomberg.
Malaysia wants to rank among the top 20 startup hubs worldwide, and this move is a step toward that goal. By 2030, Malaysia wants to have doubled its venture capital investments to US $1.4 billion, and it intends to invite 12 foreign venture capital firms to establish offices there.
Global tech companies expanding into Malaysia are also being offered visa waivers and subsidies for office rentals. Plans to invest in Malaysia have already been revealed by multinational semiconductor company Arm Holdings and chemical company OCI Holdings.
From US $690.4 million in 2006 to US $3.68 billion in 2023, Malaysia’s venture capital and private equity fund market has experienced significant growth, according to data from the Securities Commission Malaysia.
CEO of KWAP Nik Amlizan Mohamed says that in order to boost returns, the pension fund intends to increase its investments in VCs and startups. This is a calculated strategic move by Malaysia to draw more foreign investment to Southeast Asia and support local startup companies that list in Kuala Lumpur.
The largest venture capital firm in the nation, state-owned Malaysia Venture Capital Management, recently announced that it would increase its investments to US$1.4 billion as part of the company’s Malaysia Venture Capital Roadmap, which is supported by the Ministry of Science, Technology, and Innovation of the nation.
The company will step up its efforts in funding, regulatory reform, and capacity expansion under this plan.
