Sovereign wealth fund Khazanah Nasional is set to revitalise Malaysia’s venture capital landscape with the launch of two new initiatives— the Emerging Fund Managers’ Programme (EMP) and the Regional Fund Managers’ Initiative (RMI).

These programmes, operating under the National Fund-of-Funds (NFOF), follow Khazanah’s recent acquisition of Malaysia Venture Capital Management (MAVCAP) and Penjana Kapital.

The EMP aims to strengthen the local venture capital sector by supporting emerging Malaysian fund managers both locally and overseas in their fundraising efforts.

By providing capital commitments, the NFOF seeks to attract further investment from private and other sources, fostering the growth of innovation-driven startups in Malaysia.

Open to all Malaysian fund managers raising their first, second, or third fund, the EMP is scheduled to begin in November 2024.

Complementing the EMP, the RMI focuses on attracting international fund managers to Malaysia.

The initiative encourages collaboration with Malaysian startups, aiming to cultivate their growth into regional and global players.

Additionally, the RMI seeks to attract global companies to Malaysia, facilitating the redomiciling of these companies to expand local job capabilities and foster innovation.

These initiatives align with Khazanah’s Dana Impak strategy and the government’s GEAR-uP programme, which aims to stimulate growth in key economic sectors.

By enhancing access to capital for startups and promoting innovation, the EMP and RMI support the Ekonomi MADANI’s vision of developing a robust digital economy and fostering regional champions.

Dato’ Amirul Feisal Wan Zahir, Managing Director, Khazanah said,

“With the launch of EMP, we aim to ensure the continued growth of our local VC fund managers, and we see the RMI as another critical step in our commitment to foster a dynamic VC ecosystem in Malaysia. As innovation is borderless, the availability of capital, talent and technology will determine the future of Malaysia.

This is why the NFOF will focus on the creation of local champions under the EMP, while attracting international capital and partners. These efforts will enable the fusion of local and international expertise, perspectives and knowledge to spur a vibrant ecosystem that fuels progress and advancements.”

Featured image credit: Edited from Freepik