KUALA LUMPUR (Nov 4): The RM100 million Axiata Digital Innovation Fund (ADIF) aims to help Bumiputera companies upscale their products in the digital sector, to become regional champions.
ADIF is a venture capital fund established by mobile telecommunication network provider Axiata Group Bhd and Malaysia Venture Capital Management Bhd (Mavcap).
Axiata President and Group Chief Executive Officer Datuk Seri Jamaluddin Ibrahim said the largest Malaysian capital venture fund would complement the government's Bumiputera agenda.
Jamaluddin said the fund was open to all Malaysians based on an allocation target of 70% for Bumiputera firms. The remaining 30% portion is opened to all Malaysian firms.
Bumiputera company under ADIF's definition is a company with 51% Bumiputera ownership.
"Well, there is a 70:30 target we talked about for a 70% (allocation) to companies, with 51% Bumiputera ownership.
We do strongly urge them, at least from the Axiata's perspective, to work with other Malaysians as part of their partnership to create that sort of company. That would be the ideal situation for us, a win-win for all," Jamaluddin said.
Phase one of the ADIF will see Axiata contributing RM50 million, and MavCap committing RM20 million.
The remaining RM30 million will be raised from the private sector.
Jamaluddin said the AIDF was looking at supporting 10 to 15 companies in digital services, and build five to ten regional champions.
The fund is also hoping to encourage and spur innovation and growth in Malaysia's digital sector, according to him.