THE Science, Technology and Innovation Ministry (Mosti) will continue to finance the green economy, electric vehicle (EV) industry and semiconductors, electronics and electrical start-up companies to ensure they do not migrate to other countries for more opportunities.
Its minister Datuk Seri Dr Adham Baba said although the startup presence is small, it can be scalable.
“For Mosti will not exclude any startup from receiving assistance with several series of financing.
“We will also invite venture capital (VC) into the country and continue to support these startups to become large companies,” he said at the launch of Kuala Lumpur Venture Finance Forum 2022 (KLVF22) programme today.
He said with the availability of VC, Mosti will draw up an action plan for research, development, commercialisation and innovation for these startups to penetrate the global market.
“Mosti actively strives to perceive Malaysia’s wishes through the introduction of the National Science, Technology and Innovation Policy 2021-2030, as well as the Malaysian Science, Technology and Innovation 10-10 Framework.
“The combination of both will ensure that the progress of science and technology moves in tandem with the country’s economic growth,” he added.
Among the initiatives introduced by the government include the offering of a special financing programme amounting to RM100 million to help technology start-up companies affected by the pandemic.
To date, more than RM76.55 million has been approved to finance 66 companies and approximately RM33.5 million distributed to 35 companies in various technology sectors under the programme.
Meanwhile, Deputy Finance Minister II Yamani Hafez Musa said the development of technology and innovation in Malaysia is clearly seen during the pandemic, where various constraints that have arisen encouraged the adoption and use of digital technology.
“The government has launched eight economic stimulus packages, as well as two budgets that are collectively worth more than RM530 billion and RM650 billion respectively.
“Other government initiatives for the entrepreneurial community include SemarakNiaga under Budget 2022 worth RM40 billion which includes direct loans, financing guarantees and equity injections to be benefited by every group of entrepreneurs,” he said.
He added that through Penjana Kapital, the National Penjana Fund generated funds worth RM1.3 billion, more than the original target of RM1.2 billion.
Of this amount, RM717.4 million is a contribution from the private sector including RM525.6 million from foreign investors.
Indirectly, this initiative created 6,946 new jobs and boosted “knowledge transfer” in the local venture capital industry.
“Furthermore, the Finance Ministry together with Mosti have launched the ‘Liquidity Facility for Technology Startups’ (Lifts) programme with a total of RM100 million in funds to help start-up companies through simple financing methods, where 66 companies to date have received assistance,” he said.
On the digital transformation to drive sustainable and equitable economic growth, the government has established the new cloud region by Google Cloud to attract quality investment in the form of digital infrastructure to empower businesses and individuals.
This infrastructure is instrumental in moving 80% of government systems to the cloud by the end of 2022.
“In realising the country’s aspirations, Budget 2023 will focus on the rapid use of automation and digital technology, the development of a future-ready workforce, the strengthening of good regulatory practices and the ease of doing business,” Yamani said.
Source: https://themalaysianreserve.com/2022/09/12/mosti-focuses-on-financing-startups/