Malaysia Digital Economy Corporation (MDEC), the overseer of the development of the digital economy in Malaysia, has announced a partnership with regional venture capital firms to draw in up to 200 million ringgit (about $45 million) in capital investment.
The partnership with Singapore’s Ascent and Indonesia’s Central Capital Ventura (CCV) will focus on accelerating the growth of local startups to help strengthen Malaysia’s digital economy, per the announcement.
“The combined funding will be instrumental in fostering the growth of Malaysian startups, particularly in line with Malaysia’s KL20 initiatives, and reinforcing our country’s position as a key player in the Southeast Asian startup ecosystem,” MDEC said.
Under the memorandums of understanding, Ascent will invest in early-stage Malaysian startups in critical sectors such as fintech, embedded finance, healthcare, sustainable agriculture, SME enablers, artificial intelligence, and robotics.
On the other hand, CCV, the venture arm of Indonesia’s largest private bank, Bank Central Asia, has committed to open access for Malaysian startups to collaborate with its Southeast Asia ecosystem network.
“These collaborations will offer Malaysian startups access to international markets, mentorship from industry experts, and potential follow-on investments,” MDEC added.
The partnerships will also enhance cross-border innovation, allowing Malaysian companies to leverage the resources and expertise provided by Ascent and CCV to expand their operations and compete globally.
MDEC was established in 1996 as a government agency under the Ministry of Digital to lead the country’s digital economy.
The collaborations come as Malaysian startups raised $82 million from 21 equity transactions in the first nine months of the year, according to DealStreetAsia’s SE Asia Deal Review: Q3 2024.
In the entire Southeast Asia region, startups recorded 134 deals that raised $979 million in total, the first time since 2019 that quarterly proceeds have fallen below the $1-billion mark, according to the report.
Earlier, Malaysian sovereign wealth fund Khazanah announced new initiatives to boost its venture capital ecosystem, following the acquisition of Malaysia Venture Capital Management (MAVCAP) and Penjana Kapital in July this year.
