Borneo Digital Capital launches RM100mil fund to boost Sarawak’s digital economy


Standing from left: Borneo Digital Capital general partner Ivan Leong Hong Chan and Invest Sarawak chief executive officer Timothy Ong Wye Ern. Seated from left: Borneo Digital Capital general partner Melvin Ong Sze Hua and Borneo Development Capital general partner Addy Ng Kok Wah.

KUALA LUMPUR: Borneo Digital Capital Fund PLT has launched a RM100mil private equity fund to support digital infrastructure and smart city projects in Sarawak, in line with the state’s target of achieving a gross domestic product (GDP) of RM282bil by 2030.

In a statement, the company said the fund, launched last Friday, would be managed by licensed private equity firm Aureus Strategies PE Sdn Bhd.

The fund will focus on three investment areas, namely digital infrastructure, smart city and artificial intelligence (AI) solutions, and digital enablement platforms covering renewable energy, utility systems and electric mobility (eMobility).

It aims to help eligible technology companies and project owners finance technology deployment through subscription models, service contracts and revenue-sharing arrangements.

The company said the fund would prioritise projects offering stable cash flows and long-term capital appreciation, with targeted projects supported by contractual cash flows backed by the Sarawak government.

During the launch, Borneo Digital Capital also signed a memorandum of understanding (MoU) with Borneo Development Capital I PLT to explore co-funding opportunities for eligible turnkey design-and-build projects.

Borneo Digital Capital Fund general partner Melvin Ong said the initiative would help bridge the financing gap faced by businesses seeking to adopt new technologies.

“When customers need technology but cannot absorb the entire upfront cost, a good idea remains just an idea.

“With the Borneo Digital Fund, we can now bring technology expertise and financing expertise together so more viable projects become a reality,” he said.

Ong said Sarawak was increasingly attracting digital infrastructure and renewable energy investments, supported by its natural resources and development potential.

He is also the group chief executive officer of Karuna Venture Holdings Sdn Bhd, chief executive officer of Karuna Sarawak and director of SDEC Karuna JV Sdn Bhd, a joint venture involving Sarawak Digital Economy Corporation Bhd, Karuna Venture Holdings and Property Axis Sdn Bhd.

Structured as a closed-end private equity fund, Borneo Digital Capital Fund is open to sophisticated investors, with a minimum investment of RM250,000.

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