RM131.5mn fund launched to support SMEs and MTCs in Malaysia

This fund will support businesses in the 21 sectors outlined in the NIMP 2030, as well as four emerging growth sectors.

The Strategic Co-Investment Fund (COSIF) is a public-private partnership that will see the government co-investing alongside private investors. Their focus will be on supporting businesses in the 21 sectors outlined in the New Industrial Master Plan 2030 (NIMP 2030), as well as four emerging growth sectors, namely, carbon capture, utilisation and storage (CCUS), electric vehicles (EV), renewable energy (RE), and advanced materials. The fund will be administered by the SC.

COSIF is a blended finance model that will tap into unconventional sources of funding, such as Equity Crowdfunding (ECF) and Peer-to-Peer Financing (P2P) platforms. This will allow SMEs and MTCs to access the capital market, which has been largely underserved. The goal is to mobilise significant resources to fund high-impact projects in areas such as advanced manufacturing, digitalisation and decarbonisation.

YB Senator Tengku Datuk Seri Utama Zafrul Aziz, Minister of Investment, Trade, and Industry said: “This initiative not only diversifies our financing options but also reflects our commitment to inclusivity by facilitating broad-based growth in our industry.”

SC Chairman, Dato’ Mohammad Faiz in his comments mentioned that the deployment of the NIMP COSIF through ECF and P2P platforms aligns with the SC's effort to democratise capital market financing access for MSMEs and MTCs. He added that the structured public-private co-investment mechanism aims to support the fundraising journey of these businesses.

In line with its efforts to enhance Malaysia's economy and business landscape, the government also plans to integrate renewable energy (RE) from the palm oil industry into the national grid. This will be achieved through a collaboration with Tenaga Nasional Bhd (TNB) and the Energy Commission (EC), which is expected to make a significant contribution to the national power supply.

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