TLDR:
Khazanah Nasional Bhd. is leading a venture capital fund of up to $627 million with partners to invest in startups in Southeast Asia. Malaysia is offering incentives to global tech firms to set up shop in the country. The goal is to transform the local startup ecosystem and create a vibrant VC funding scene.
Malaysia’s sovereign wealth fund Khazanah Nasional Bhd. is partnering with two other entities to set up a venture capital fund of up to 3 billion ringgit ($627 million) to invest in startups in Southeast Asia. Local pension fund KWAP and Blue Chip Venture Capital will also co-invest in the fund. Malaysia is offering incentives to global tech firms to set up shop in the country, including office space subsidies and visa exemptions. The aim is to transform the local startup ecosystem to be among the top 20 hubs globally and double VC funding to $1.4 billion by 2030. Funds committed to venture capital and private equity in Malaysia grew to 17.6 billion ringgit last year from 3.3 billion ringgit in 2006. Malaysia must capitalize on the $4 trillion global private capital industry and be well-positioned to capture the impending second wave of capital into Southeast Asia. KWAP is increasing investments in startups and venture capital to enhance its returns.
