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BUKIT KIARA, Kuala Lumpur, 17 July 2023 – Penjana Kapital Sdn Bhd (Penjana Kapital) in collaboration with Permodalan Negeri Selangor Berhad (PNSB) and Selangor Information Technology and Digital Economy Corporation (Sidec) have signed a Memorandum of Understanding (MoU) to establish the Dana Penjana Selangor, the first Corporate Venture Capital initiative in Malaysia that is supported by the Federal Government and the Selangor State Government.

The signing ceremony were held in conjunction with the Corporate Venture Capital Programme, organised by Capital Markets Malaysia (CMM) and Bursa Malaysia at Securities Commission Malaysia (SC), Bukit Kiara, Kuala Lumpur.

Mr Taufiq Iskandar Jamingan, Chief Executive Officer of Penjana Kapital signed the Memorandum of Understanding along with YM Raja Ahmad Shahrir Iskandar bin Raja Salim, Chief Executive Officer of PNSB and Mr Yong Kai Ping, Chief Executive Officer of Sidec. The signing was witnessed by YB Tuan Sim Chee Keong, Deputy Finance Minister II and YBhg Dato’ Seri Dr. Awang Adek Hussin, SC Chairman.

Strategic partnerships and initiatives such as fund-of-fund programmes have proven effective in reducing the risk of investments in startups and promoting private capital flows. Penjana Kapital’s VC fund-of-funds programme has been successful at the Federal level, and there is hope that other Malaysian states may adopt the approach. These programs pool together capital from various sources to create dedicated funds that invest in a portfolio of venture capital funds, providing diversification and risk management.

Deputy Finance Minister, YB Tuan Steven Sim Chee Keong said, “Congratulations to the Selangor state government through its wholly owned PNSB and SIDEC agency as well as Penjana Kapital which have agreed to create a Federal-State partnership mechanism for venture capital investment to benefit local start-ups. This Federal-State partnership for coinvestment should be strengthened to achieve at-scale pooled fund. I hope this collaborative endeavour will crowd in private capital to invest alongside government via venture capital funds and stimulate growth of alternative fundraising in Malaysia.”

Today’s initiative signals the importance of venture capital (VC) and private equity (PE) as an essential part of the funding ecosystem in the Malaysian capital market. Over the years, the SC has enabled a comprehensive “funding escalator”, offering various options for startups to raise funding across the growth lifecycle.

These include crowdfunding platforms such as ECF and P2P financing platforms, as well as facilitative frameworks for VC and PE managers. Enhancements were made to the VC and PE framework last year. The SC’s framework remains facilitative at various segments of the business growth cycle of a company in their journey to grow and scale up.


To that end, the SC has been working closely with industry stakeholders and various government agencies in Penang, Selangor and several other states to create a vibrant and sustainable alternative financing ecosystem.

SC Chairman Dato’ Seri Dr Awang Adek said “SC is committed to facilitate and support initiatives that develop the startup ecosystem in Malaysia. We recognise that startups are a vital source of innovation, job creation, and economic growth. By fostering a multi-stakeholder approach and encouraging public-private partnerships and co-investment models in startups, we can unlock the potential of Malaysia’s startup ecosystem and pave the way for a thriving innovation-driven economy.”

Dana Penjana Selangor demonstrates the commitment of the Selangor state government and Federal government to foster a thriving startup ecosystem. Through this initiative, corporates and other potential limited partners (LPs) can gain exposure to a diversified portfolio of highpotential startups, managed by experienced venture capital fund managers.

Dana Penjana Selangor offers a structured and managed approach to startup investments, reducing risks and increasing the likelihood of success. This Federal-State co-investment initiative is hoped to attract private capital particularly corporate participation in the venture capital ecosystem, contributing to the growth and success of both start-ups and corporates.

Overall, the establishment of Dana Penjana Selangor represents a cooperative effort to maximise the startup ecosystem’s potential and build a vibrant, innovation-driven economy in Selangor and Malaysia as a whole. #