Malaysia’s Digital Penang and OSK Ventures partner to expand financing for AI and Deeptech Startups
Digital Penang and OSK Ventures International Berhad have inked a one-year memorandum of understanding to improve access to growth capital for startups and SMEs in Penang, Malaysia, with an emphasis on AI, Hardtech, and Deeptech sectors.
According to a statement issued on Monday by Digital Penang, a government-owned organization focused on the digital economy, the collaboration would address enterprises’ limited access to growth-stage finance in capital-intensive and technology-driven sectors. Typically, these sectors have lengthier development cycles and more difficult commercialization paths than standard firms.
The alliance aims to strengthen connectivity between high-potential firms and institutional capital sources, resulting in a more robust pipeline of investment-ready companies.
Digital Penang will act as a state-backed ecosystem enabler, collaborating with startups and SMEs throughout Penang. Meanwhile, OSK Ventures will apply its venture financing skills, including venture debt and equity capital, to help businesses with scalable, innovation-driven strategies.
Zairil Khir Johari, Penang State EXCO for Infrastructure, Transport, and Digital, stated that improving access to strategic capital is becoming increasingly important as Penang places itself at the forefront of advanced technology and innovation. The executive noted that the collaboration demonstrates the state’s commitment to promoting the expansion of the AI, Hardtech, and Deeptech industries.
Ng Kwang Ming, CEO of Digital Penang, said Penang has a growing pipeline of companies developing specialized solutions across these sectors, but they often require long-term, structured capital to support extended development and commercialization cycles.
Amelia Ong, CEO of OSK Ventures, said access to strategic and patient capital will become increasingly important in determining which companies can scale successfully. The collaboration can reflect the firm’s commitment to supporting founders and SMEs building transformative solutions for the future, the executive highlighted.
