KUALA LUMPUR (Oct 15): Sovereign wealth fund Khazanah Nasional Bhd said it will launch the Emerging Fund Managers’ Programme (EMP) and the Regional Fund Managers’ Initiative (RMI).
The EMP aims to ensure the continued growth of local venture capital (VC) fund managers while the RMI aims to foster a dynamic VC ecosystem in Malaysia, said Khazanah in a statement.
The establishment of the programmes follows Khazanah’s completion of the acquisition of Malaysia Venture Capital Management (Mavcap) and Penjana Kapital in July this year, it added.
The EMP and RMI will be under the national fund-of-funds (NFOF), which focuses on investing in innovative, high-growth start-ups.
The EMP, which focuses on the growth of local VC fund managers, is scheduled to commence in November 2024. The programme will be open to all Malaysian general partners, focusing on VC fund managers who are raising their first, second or third fund based in Malaysia or overseas.
Meanwhile, the RMI seeks to attract international fund managers to enhance Malaysia's VC ecosystem, including supporting the growth of Malaysian start-ups, attracting talent and deepening innovation.
Khazanah said established international fund managers with global mandates can leverage their existing portfolio companies to create value and impact by expanding into Malaysia.
This strategic move seeks to foster collaborative partnerships with Malaysian companies to pilot initiatives that would result in technology and know-how transfer, increasing business productivity and efficiency, it added.
It also said the launch of the EMP and RMI underscores the NFOF’s commitment to enhancing access to capital for start-ups, driving innovation and spurring economic growth.
"This aligns with the aspirations of Ekonomi Madani to ‘raise the ceiling’ through digital, innovation-led industries and support high-growth companies to become regional champions," it further added.
“As innovation is borderless, the availability of capital, talent and technology will determine the future of Malaysia. This is why the NFOF will focus on the creation of local champions under the EMP, while attracting international capital and partners. These efforts will enable the fusion of local and international expertise, perspectives and knowledge to spur a vibrant ecosystem that fuels progress and advancements,” said its managing director Datuk Amirul Feisal Wan Zahir.
The establishment of the NFOF is aligned to Khazanah’s Advancing Malaysia strategy, anchored by ‘A Nation That Creates’ framework that aims to boost national productivity and competitiveness.
These initiatives are a part of Khazanah’s commitment under the GEAR-uP programme, led by the Ministry of Finance in synergising efforts across government-linked investment companies and catalysing growth in key economic sectors.