MDV pledges to continue assisting technology companies amid Covid-19 pandemic and MCO 3.0

MDV pledges to continue assisting technology companies amid Covid-19 pandemic and MCO 3.0
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KUALA LUMPUR (May 31): Malaysia Debt Ventures Bhd (MDV) has pledged to assist technology companies to weather the current economic challenges due to the Covid-19 situation in Malaysia via uninterrupted access to its existing financing facilities.

In a statement today, MDV chairman Khairul Azwan Harun said MDV remains supportive of the government’s decision in regard to the present movement control order (MCO 3.0), including the recently announced nationwide lockdown, which is a necessary move to further contain the spread of Covid-19 cases in Malaysia, allow the public health system to recuperate from the strain of increasing Covid-19 cases and prevent more precious lives from being lost.

“As the nation’s technology financier, MDV understands that businesses are continuing to be affected by the current restrictions in the economy and we stand ready to support the government’s efforts to ensure the country’s continued economic resilience, which we intend to achieve through targeted, flexible and innovative financing solutions for technology companies that fall under MDV’s mandate,” he said.

According to MDV, since the initial onset of the Covid-19 pandemic in Malaysia, it has responded to the government’s call to assist its customers in navigating the economic crisis by providing relief measures, such as offering an extended loan moratorium and proactive account management, including providing options to selected customers to restructure their financing.

MDV said it had also introduced its liquidity financing facility for technology start-ups or LIFTS (previously known as the Technology Start-Ups Funding Relief Facility or TSFRF) to assist technology companies facing short-term cash flow and funding problems, particularly those compounded by the Covid-19 crisis.

To date, MDV has approved financing amounts totalling RM63.62 million under the facility, with RM18.58 million already disbursed to 25 companies in various technology sectors.

MDV said it plans to increase its approvals and disbursements to ensure that eligible technology companies will continue to benefit from this facility in view of the adverse economic impact that the lockdown may have on businesses.

Surin Murugiah