KUALA LUMPUR (July 16): The Malaysia Digital Economy Corporation (MDEC) has partnered with Bay Smart Capital Ventures Sdn Bhd (CapBay) to provide eligible Malaysia Digital (MD) status companies with access to a RM200 million growth financing pool.

The initiative by CapBay, a Malaysian financial technology (fintech) company specialising in supply chain finance and peer-to-peer (P2P) financing solutions, and MDEC will support both established technology companies and early-stage start-ups, including those incorporated for as little as six months.

If eligible, companies holding MD status will be able to apply for financing worth up to RM3 million for business use, paired with rates as low as 6% per annum and repayment tenures six months long alongside a further six-month grace period, according to a statement.

Additionally, the initiative, through the MD Technology Financing Programme, aims to support high-potential tech companies that may sometimes face difficulties in acquiring standard financing options due to their asset-light business models.

“Conventional credit frameworks often overlook technology companies because their assets are intellectual,” Ang Xing Xian, a co-founder and the group chief executive officer of CapBay, remarked.

“The MD Technology Financing Programme addresses this by basing credit decisions on business fundamentals and growth trajectory rather than physical collateral, which aligns with how tech companies are actually structured.”

Applicants for the initiative will be evaluated through CapBay’s AI-powered credit assessment model, with the base framework assessing fundamentals such as intellectual property, talent and proprietary systems.

“Through our collaboration with companies such as CapBay, we aim to bridge financing gaps and enable high-potential technology companies to access the resources needed to scale sustainably and compete regionally and globally,” said MDEC CEO Anuar Fariz Fadzil.