By FARA AISYAH / Pic By MUHD AMIN NAHARUL
Some RM100 million worth of funds will be allocated to local companies next year to promote the adoption of technologies in their operations, said Malaysian Technology Development Corp Sdn Bhd (MTDC).
CEO Datuk Norhalim Yunus said the funds will be disbursed for the Commercialisation of Research and Development Fund, Technology Acquisition Fund, Halal Technology Development Fund, Business Startup Fund, Business Growth Fund and Business Expansion Fund.
“We have RM315 million of funds to approve in 2016 and 2017. As of today, we have approved RM312.3 million of funds to 106 companies and the remaining is expected to be approved by year-end.
“Some RM145 mi l l ion was approved in 2016 and we have disbursed around RM75 to RM80 million of the funds,” he told reporters at the memorandum of understanding (MoU) signing with KAF Investment Bank Bhd in Kuala Lumpur last week.
For this year, almost RM170 million has been approved and MTDC has disbursed a quarter from that amount to local firms.
Meanwhile, the wholly owned subsidiary of Khazanah Nasional Bhd inked the MoU with KAF Investment Bank to offer strategic cooperation for its fund recipient companies to be subsequently listed on the relevant markets of Bursa Malaysia.
It is MTDC’s first MoU signing with an investment bank.
Norhalim said the MoU serves as a platform for both parties to collaborate for the betterment of the capital market ecosystem.
During the launch of the Leading Entrepreneur Accelerator Platform (LEAP) Market in July, MTDC was named as one of Bursa Malaysia strategic partners, in which its role will be to support the identification of potential small and medium enterprises (SMEs) to be listed on the LEAP Market, and to jointly develop the SME financing ecosystem and capacity building.
“This MoU basically signifies our intention for growing our companies, so that we can be a significant contributor to our economy’s growth.
“Moving forward, we are focusing on the Industry 4.0 which brings the role of technology companies in Malaysia to the fore, hence, the importance of technology for SMEs is becoming more critical,” Norhalim said in his speech earlier.
KAF Investment Bank will assist MTDC’s fund recipients in embarking on listing exercise on the newly introduced LEAP Market, as well as ACE Market and Main Market of Bursa Malaysia.
However, Norhalim said the partnership’s priority would be pushing the new companies into the listing, before assisting the established ones. Currently, there are three potential companies in MTDC’s ecosystem that will be ready for the LEAP Market next year.