KUALA LUMPUR – Malaysia’s sovereign wealth fund, Khazanah Nasional Sdn Bhd, will launch a RM1 billion fund to invest in innovative and high-growth Malaysian companies, Prime Minister Datuk Seri Anwar Ibrahim announced today.
Dubbed a “national fund-of-funds”, he said it is part of the government’s aim to centralise investment agencies such as Mavcap and Penjana Kapital under Khazanah.
Khazanah will also be involved with Retirement Fund Inc and Blue Chip Venture Capital to invest up to RM3 billion in the Southeast Asian and Malaysian ecosystems under the Asean investment initiative.
“(There will also be 12) venture capital firms that will be setting up offices and new funds here (in Kuala Lumpur), where they are international firms with assets under management sizes above billions and illustrious investment track records so that Malaysian start-ups will be discovered.
“Meanwhile, high-tech companies are also expected to set up their operations, research and development facilities, and regional headquarters to serve the Asian and Southeast Asian markets,” Anwar said in his speech launching the Kuala Lumpur 20 (KL20) Summit at the Kuala Lumpur Convention Centre Plenary Hall here today.
Anwar also announced the largest integrated circuit design park in Southeast Asia, which will house world-class anchor tenants and collaborate with global companies such as Arm.
This, he said, is being done with the support of the Selangor Information Technology and Digital Economy Corporation and the Selangor state government.
“Additionally, to make Malaysia a true gateway to major economies, we will also witness the city-to-city connection between Kuala Lumpur and Hangzhou so that capital, talent, and market access will no longer be a barrier to success.
“We are positioning Malaysia as an axis for leaders in semiconductors, clean energy, agritech, and Islamic fintech.”
Also present at the launch of the KL20 Summit today were Digital Minister Gobind Singh Deo and Economy Minister Rafizi Ramli.
Rafizi, in his speech, said Malaysia has a unique position in being “politically neutral” and open to trade, which is attractive to foreign investors.
“The renewed attention to profitability in startups also favours Malaysia, as a middle-income country that is often the first market to turn profitable for Southeast Asian startups.
“Apart from this, Malaysia must (also) be well prepared for the upcoming wave of venture capital, as our diverse population, combined with the high-quality digital amenities, makes Malaysia an ideal testbed for product launches and pilots,” he said.
On March 27, Rafizi said KL20’s blueprint for making the capital city an artificial intelligence and technology hub will bring huge investment opportunities to the country.
He also said that KL20 aims to establish an environment that is conducive to business so that Malaysia becomes a preferred location for internationally skilled individuals and high-potential, scalable start-ups.
The KL20 Summit 2024, which will be held today and tomorrow, aims to spearhead a strategic initiative that focuses on introducing sweeping reforms, aimed at enticing top-tier investments from around the world. – April 22, 2024