KUALA LUMPUR: A hybrid public-private venture capital model broadens funding options for Malaysian startups, said Minister of Science, Technology and Innovation Chang Lih Kang.
He said Malaysia previously relied heavily either on private venture capital where investment decisions are driven primarily by financial returns or government funding, which often faces limitations due to smaller fund sizes.
“With an initial fund size of RM20 million, we hope this model can operate successfully and, if proven effective in helping more enterprises, it can be replicated to support more companies in the future,” he told reporters at the launch of MTDC-Tradeview Quantum Fund today.
Chang said the Modal Lestari structure where the government contributes 50% and the private sector contributes the other 50% could help expand the overall size of venture funding available for Malaysian startups. “We hope this capital model will run smoothly and successfully help more startups while further strengthening the startup ecosystem.”
As Malaysia aspires to become a technology-driven and innovation-led economy, Chang said, good ideas alone are not enough, and innovators must have access to capital, networks and strategic partnerships needed to grow and scale.
This direction, he added, is aligned with the government’s broader economic agenda under the Madani Economic Framework and the New Industrial Master Plan 2030, which emphasise technology adoption, advanced manufacturing, digital transformation and the development of high-value industries to support long-term economic growth.
According to the Department of Statistics Malaysia, more than 3,000 organisations across the country are actively involved in research and development activities, supported by thousands of researchers, engineers, technologists and innovators across universities, research institutions and government agencies, said Chang.
“Innovation in Malaysia is therefore no longer confined to laboratories or universities. Increasingly, it is becoming a key driver of industrial transformation, productivity growth and new economic opportunities.”
Malaysian Technology Development Corporation (MTDC) has partnered with Tradeview Capital Sdn Bhd to launch the RM20 million MTDC-Tradeview Quantum Fund, a public-private venture fund targeting seed to Series A technology startups.
The fund, established through a 50:50 joint venture under Modal Lestari Sdn Bhd, aims to strengthen Malaysia’s technology financing ecosystem by supporting startups in sectors such as semiconductors, Industry 4.0, industrial manufacturing, green energy, food technology, agriculture technology and financial technology.
These sectors complement MTDC’s broader investment focus, which includes electrical and electronics and semiconductors, Industry 4.0 and digital transformation, healthcare and life sciences, food security, aerospace and future mobility, as well as the green economy.
MTDC Group CEO Mohammad Hazani Hassan said the fund will have a tenure of about eight years and is expected to invest in five to six companies using its initial RM20 million capital. “Additional funds may be launched depending on the performance of the first fund, with plans to attract more private investors to participate.”
Tradeview Capital board member Norlin Abdul Samad said the firm will contribute its capital markets expertise, particularly in the small- and mid-cap space, along with listing insights to help portfolio companies prepare for potential public listings.
She said it will also leverage its network to ensure portfolio companies are not only funded but also structured with the governance and corporate frameworks needed to eventually access public markets.
