KUALA LUMPUR: An RM1bil National Fund-of-Funds will be established under Khazanah Nasional Bhd to support venture capital fund managers in investing in startups.
In his Budget 2024 speech, Prime Minister-cum-Finance Minister Datuk Seri Anwar Ibrahim said the fund, which will have an allocation of RM300mil for 2025, will begin operations next month.
Meanwhile, KWAP has also set aside RM1bil under the Pioneer Fund to support local startup activities, with RM200mil allocated for 2025.
The Cradle Fund has allocated RM65mil to help startups with potential to grow both regionally and globally.
According to Anwar, this includes an RM15mil matching grants as encouragement for GLCs to work with startups through corporate venture capital efforts.
"To strengthen the venture capital ecosystem so it remains competitive in attracting foreign investment, the approval process for cross-border fund flows under the current Foreign Exchange Administration Policy has been simplified and can be made based on the total size of the fund mandate," he said.
