Khazanah Nasional Launches Initiatives to Strengthen Malaysia’s Venture Capital Ecosystem

Malaysia’s sovereign wealth fund, Khazanah Nasional Berhad, has introduced two major initiatives aimed at enhancing the nation’s venture capital landscape. The initiatives, known as the Emerging Fund Managers’ Programme (EMP) and the Regional Fund Managers’ Initiative (RMI), are part of the broader National Fund of Funds (NFOF) strategy. These programs were launched following Khazanah’s recent acquisition of Malaysia Venture Capital Management (MAVCAP) and Penjana Kapital (PK) in July.

The Emerging Fund Managers’ Programme (EMP) is designed to support the growth of local venture capital fund managers, while the Regional Fund Managers’ Initiative (RMI) seeks to create a more vibrant venture capital environment in Malaysia by attracting established international fund managers. 

Khazanah’s Managing Director, Dato’ Amirul Feisal Wan Zahir, emphasized that the Emerging Fund Managers’ Programme (EMP) and the Regional Fund Managers’ Initiative (RMI) are crucial for enhancing Malaysia’s venture capital ecosystem. The EMP aims to support and develop local venture capital (VC) fund managers to boost their growth and competitiveness, while the RMI seeks to draw international fund managers to Malaysia, introducing global expertise to the country’s innovation scene.

The EMP, set to launch in November 2024, will support Malaysian general partners based locally or abroad who are raising their first, second, or third funds. 

Through capital commitments from the National Fund-of-Funds (NFOF), the program is expected to boost investor confidence and encourage additional investments from the private sector. By strengthening local fund managers, Khazanah seeks to enhance the growth of innovation-driven startups within the country.

The RMI, on the other hand, is targeted at international fund managers with global mandates. By encouraging these managers to establish or expand their presence in Malaysia, the initiative aims to foster partnerships between international and local companies. This collaboration is expected to accelerate technology transfer, enhance business productivity, and expand Malaysia’s startup ecosystem while also attracting talent and promoting innovation.

These initiatives align with Khazanah’s broader Dana Impak strategy and the government’s GEAR-uP program, which plans to stimulate growth in key economic sectors. By increasing access to capital and promoting collaborations between local and international players, the EMP and RMI will contribute to Malaysia’s vision of becoming a venture capital hub by 2030, supporting the nation’s innovation-driven economic development.

This program seeks to synergize efforts across Government-Linked Investment Companies (GLICs) and stimulate growth in key economic sectors. The launch of the EMP and RMI reflects the NFOF’s dedication to improving access to capital for startups, driving innovation, and promoting economic development. 

These efforts support the broader goals of Ekonomi MADANI, which focuses on digital and innovation-led industries to position high-growth companies as regional leaders.