The CIP contributed RM3.4b to the country’s economy between 2008 and 2016
By KEVIN WONG / Pic By ISMAIL CHE RUS
Cradle Fund Sdn Bhd said its Cradle Investment Programme (CIP) is expected to contribute RM30.8 billion to Malaysia’s GDP by 2030.
The Finance Ministry agency, which funds start-ups, added that the CIP contributed RM3.4 billion to the country’s economy between 2008 and 2016 through investments and job creation.
The impact study of the CIP — Value Creation in Startup Ecosystem by HELP University and Cradle, revealed that CIP had helped create 80,600 full-time jobs and attracted RM1.3 billion in private and foreign funds in the eight-year period.
The report concluded that with a public allocation of RM158.8 million between 2008 and 2016, Cradle was able to support local and regional investments.
“It significantly contributed to the build-up of a sustainable tech ecosystem in Malaysia,” the report stated.
Cradle Fund acting group CEO Razif Abdul Aziz said the CIP has demonstrated that funding and ecosystem development and support can bring far greater outcomes than from ordinary public spending.
“Entrepreneurs drive innovation and often much more quickly than established competitors. Successful entrepreneurs will have figured out ways to do things better,” he told reporters yesterday in Kuala Lumpur.
He added that entrepreneurs have to challenge the status quo and ask the tough questions and compete with established businesses.
“When entrepreneurs are able to innovate, they drive economic growth and create jobs at a fast rate,” he said.
Cradle now aims to focus on providing early financing to local start-ups in the Klang Valley, Johor and Penang.
“The move is part of our plan to manage funds more effectively in order to address the current economic constraints.
“There have been talks about reducing the funds allocated to Cradle but this is a challenge we have to overcome. We must act wisely and provide funding to the best sources,” he said adding that Cradle hopes to diversify its financing distribution to new tech industries like green technology, biotechnology and medical equipments.
Since its inception in 2003, Cradle has funded some 800 local tech start-ups through its CIP300, pre-commercialisation grant, DEQ800 equity investment programme and venture capital arm, Cradle Seed Ventures.