Malaysian sovereign wealth fund Khazanah Nasional has completed the acquisitions of Malaysia Venture Capital Management Bhd (MAVCAP) and Penjana Kapital, a step forward in advancing Malaysia’s venture capital ecosystem.

Khazanah said in a statement on Tuesday that it will then begin establishing a National Fund-of-Funds (NFOF) with an initial allocation of MYR 1 billion ($216 million) to invest in innovative and high-growth startups via venture capital and private equity funds.

According to the statement, following the acquisitions, MAVCAP and Penjana Kapital are now wholly owned subsidiaries of Khazanah.

Khazanah said these strategic acquisitions align with key objectives of the Malaysia MADANI Budget 2024, namely, strengthening Malaysia’s venture capital ecosystem and improving public institutions.

Upon completion, they are expected to enhance the coordination and centralization of government resources, facilitate efforts to advance Malaysia’s startup ecosystem and bolster its regional competitiveness.

“The integration of MAVCAP and Penjana Kapital represents an opportunity to build on the solid foundations of these entities while implementing new initiatives aimed at further strengthening Malaysia’s venture capital ecosystem,” Khazanah Managing Director Amirul Feisal Wan Zahir said.

“By consolidating investment platforms across multiple investment agencies, Malaysia will be better positioned to ensure greater sustainability of funding, crowd-in private capital, attract regional venture capital firms into the country and catalyze strategically important sectors,

“Furthermore, the establishment of a national fund-of-funds aligns with Khazanah’s Future Malaysia Program, which aims to support the local start-up ecosystem of entrepreneurs, start-ups, venture capital, and corporate venture programs through collaboration with domestic and international partners,” he added.

Khazanah said it is confident that the combined experience and resources of all the entities will enhance 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 noted.

Additionally, it opined that this initiative is a key pillar of Malaysia’s vision of becoming a preferred regional venture capital hub by 2030, as outlined in the Malaysia Venture Capital Roadmap 2024-2030 (MVCR) and the KL20 Action Paper.

“We recognize the contributions and commitment of MAVCAP and Penjana Kapital,

“Their vision and dedication to the venture capital ecosystem all these years have been instrumental, and we look forward to drawing on the teams’ strength and experience to achieve our collective vision of Advancing Malaysia,” concluded Amirul Feisal.

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