Players laud RM1bil allocation for tech startups

Grove: This can help put Malaysia on the map as a centre of tech especially in Asean. —Bloomberg

PETALING JAYA: The RM1bil allocation for startups under Budget 2018 will be provided by large government linked investment funds such as the Employees Provident Fund and the Retirement Fund Inc to venture capitalists on a matching basis.

Sources familiar with the plans explained that registered venture capital firms would have to match their own funds with how much they wish to tap from the RM1bil fund.

“Secondly and more importantly, the monies will need to be invested in Malaysian technology startup companies,” says the source.

The budget revealed that the allocation of the RM1bil would be coordinated by the Securities Commission but sources add that other agencies such as the Malaysia Digital Economy Corp and Malaysia Venture Capital Management Bhd would also have a role to play.

The move is welcomed by industry players. Catcha Group co-founder and group CEO Patrick Grove said: “It is great that the Government is supporting the tech scene in a massive way through Budget 2018. It is a game changer for Malaysian home-grown tech entrepreneurs like us at Catcha.

“This can help put Malaysia on the map as a centre of tech especially in Asean. Malaysia already has the talent with great ideas and skills. Now with the incentives for venture capitalists to invest in local tech startups, this gives a needed boost for Malaysia’s tech scene”.

Grove added that Catcha Group would be looking to work with the Government to find ways to assist in the deployment of these new funds given their track record of investing in tech companies.

“These funds are also inline with our plans for KL Internet City which is part of the digital free trade zone, as the funding will also allow us to continue to invest in new industry leaders as they emerge and become part of the technology ecosystem here in Malaysia.”