Friday 29 Mar 2024
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KUALA LUMPUR: The nation’s technology financier Malaysia Debt Ventures Bhd (MDV) has allocated RM200 million to support sectors like nanotechology, advanced materials, robotics and artificial intelligence, and electrical and electronics under its new corporate strategy.

Aviation and aerospace, maintenance, repair and overhaul, oil and gas, and transportation will also be considered.

“The actual amount of financing will be more than RM200 million,” MDV chairman Tan Sri Zarinah Anwar said after the launch of its new corporate strategy yesterday.

This is because when companies pay up their loans, MDV will then have more money to further finance the various sectors, Zarinah said, adding that the maximum financing for each company is RM100 million.

“The whole idea of MDV’s financing is to assist SMEs (small and medium enterprises) who are not able to secure funding from commercial banks because of their lack of track records and their high-risk business nature.”

In its 12 years of operation, MDV has disbursed over RM8.8 billion to more than 700 technology projects undertaken by SMEs, Zarinah said.

“We see significant opportunities for SMEs in these high-growth areas that will enable MDV to expand its scope of financing,” said Zarinah.

Additionally, she noted that information and communications technology (ICT), biotechnology and green technology will continue to be the core focus of its funding strategy.

Notably, some of the companies financed by MDV have gone on to be listed in other exchanges, she said, citing Platinum Nanochem — which is listed on the AIM in London — and MOL Global — which is listed on Nasdaq in New York — as examples.

“Many have also ‘graduated’ and managed to secure loans from local financial institutions with ease,” said Zarinah.

Deputy Finance Minister Datuk Ahmad Maslan, who officiated at the launch, said stable growth can still be seen in the local economy with 5% to 6% gross domestic product growth despite the depreciation of the ringgit against the greenback and the recent slump in crude oil prices.

He also noted that the contribution from the goods and services tax (GST) come April next year will be more than the initial projection — though he declined to say by how much — as more than 200,000 companies have registered under the tax regime.

The government had initially estimated that revenue from GST in 2015 will be RM23 billion, with a target of 150,000 registered companies.

 

This article first appeared in The Edge Financial Daily, on December 19, 2014.

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