Digital Penang and OSK Ventures International Berhad have signed a one-year memorandum of understanding to strengthen access to growth capital for startups and SMEs in Penang, Malaysia, with a focus on AI, Hardtech, and Deeptech sectors.
In a statement on Monday, Digital Penang, a government-owned agency focusing on digital economy, said the collaboration can address limited access to growth-stage financing for companies in capital-intensive and technology-driven sectors. Normally, those sectors often face longer development cycles and more complex commercialization pathways than traditional businesses.
Through the partnership, the two organizations aim to improve connectivity between high-potential enterprises and institutional capital providers, supporting a stronger pipeline of investment-ready companies.
Under the collaboration, Digital Penang will serve as a state-backed ecosystem enabler engaging with startups and SMEs across Penang. Meanwhile, OSK Ventures will bring its expertise in venture financing, including venture debt and equity funding, to support businesses with scalable, innovation-driven models.
Zairil Khir Johari, Penang State EXCO for Infrastructure, Transport and Digital, said strengthening access to strategic capital is increasingly critical as Penang positions itself at the forefront of advanced technology and innovation. The collaboration underscores the state’s commitment to supporting the growth of AI, Hardtech, and Deeptech industries, the executive added.
Ng Kwang Ming, CEO of Digital Penang, said Penang has a growing pipeline of companies developing specialized solutions across these sectors, but they often require long-term, structured capital to support extended development and commercialization cycles.
Amelia Ong, CEO of OSK Ventures, said access to strategic and patient capital will become increasingly important in determining which companies can scale successfully. The collaboration can reflect the firm’s commitment to supporting founders and SMEs building transformative solutions for the future, the executive highlighted.