Bay Smart Capital Ventures Sdn Bhd (CapBay), a Malaysian FinTech company, is collaborating with the Malaysia Digital Economy Corporation (MDEC) through the MD Technology Financing Program to expand access to growth financing for Malaysia Digital (MD) Status companies.
Backed by a MYR 200 million ($49.11 million) financing pool, the initiative is designed to support business expansion and the continued growth of Malaysia’s digital economy, the duo said in a statement on Thursday.
The program leverages MDEC’s Malaysia Digital ecosystem with CapBay’s financing expertise to improve access to funding for eligible MD Status companies.
It is designed to support high-potential technology companies that may face challenges securing conventional financing due to their asset-light business models.
Eligible companies holding MD Status may apply for financing of up to MYR 3 million, with repayment tenures of up to 60 months, rates as low as 6 percent per annum, and a six-month grace period.
The program is open to both established technology companies and early-stage start-ups, including businesses incorporated for as little as six months, through a fully digital application process.
Financing decisions are supported by CapBay’s artificial intelligence (AI)-powered credit assessment model, which evaluates applicants based on business fundamentals and growth potential rather than physical collateral.
The framework is specifically designed for technology companies whose primary assets are intellectual property, talent, and proprietary systems.
Since 2016, CapBay has facilitated over RM5.6 billion in financing for more than 2,600 enterprises.
“Conventional credit frameworks often overlook technology companies because their assets are intellectual,
“The MD Technology Financing Program 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,” said Ang Xing Xian, Co-Founder and Group Chief Executive Officer of CapBay.
“We are proud to partner with MDEC to welcome early-stage start-ups from just six months of incorporation, offering non-dilutive debt financing at a stage where equity is often their only option, and broadening the financing options available to Malaysia’s technology sector,” he added.
MDEC Chief Executive Officer Anuar Fariz Fadzil said access to growth capital remains a critical enabler for technology companies to innovate, scale and compete in an increasingly dynamic digital economy.
Through the MD Technology Financing Program, he said MDEC continues to strengthen the digital ecosystem by connecting Malaysian technology companies with strategic financing opportunities that support their growth ambitions.
“Access to financing is often a key catalyst in enabling innovative companies to commercialize solutions, expand into new markets and accelerate their growth journeys,
“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,” he added.
He noted this partnership also demonstrates how strategic public-private collaboration can accelerate innovation and strengthen Malaysia’s digital ecosystem.
“Together, such partnerships enable more Malaysian companies to access growth opportunities, adopt emerging technologies such as AI, build globally competitive capabilities, and contribute meaningfully towards the nation’s AI Nation 2030 aspirations while driving long-term economic value creation,” he added.
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