The Malaysia Digital Economy Corporation (MDEC) in collaboration with a fintech group recently announced a strategic partnership to enhance initiatives aimed at scaling up Malaysian fintech companies. Their collaborative efforts will focus on three key areas, namely deal flows, fintech ecosystem support and joint amplification.
MDEC will curate deal flows and funnel potential Malaysian fintech companies to the fintech group. The group, through its regional network, will explore funding facilitation opportunities for Malaysian Technology companies, especially Fintech start-ups, for potential investment and acquisition.
The company is no stranger to the fintech world as they are a venture corporation led by former founders/operators or C-suites of successful technology companies. By building an Integrated Fintech Value Chain through innovation, network and scale across four verticals; Payments, Lending/BNPL, Insurtech and Digital Wealth Management, the company increases interoperability of its current and future businesses.
The CEO of MDEC stated that by working closely with fintech ecosystem partners, MDEC is optimistic that the partnership will create more opportunities for these companies to advance their businesses with access to regional markets and funding.
The ‘synergistic partnership’ with MDEC will provide an opportunity for the tech company to propel start-ups and add value to the robust Malaysian fintech network through efficient capital provision, tech, infrastructure support, and an extensive network of key decision-makers and industry leaders from various sectors and companies.
The Executive Director of the company stated that Malaysia presents a conducive investment environment, backed by an abundance of talents and infrastructure and a thriving start-up ecosystem filled with high-potential ideas, products and services.
In addition, Malaysia recently launched its latest financial sector blueprint for 2022-2026 at MyFintechWeek 2022. Held virtually, the event themed “Advancing Digitalisation for Recovery, Sustainability, and Inclusion” was hosted by Malaysia’s central bank, Bank Negara Malaysia.
The blueprint’s implications are wide as it would affect both financial and non-financial sectors, particularly enterprises and businesses doing business in or with the country. The blueprint identified three broad themes that influence desired outcomes and targets for 2026 — finance for all, finance for transformation, and finance for sustainability.
Importantly, it proposes five strategic thrusts for 2022-2026. They include:
- Funding Malaysia’s economic transformation
- Elevating the financial well-being of households and businesses
- Advancing digitalization of the financial sector
- Positioning the financial system to facilitate the transition to a greener economy
- Advancing value-based finance through Islamic Finance leadership
Malaysia’s Finance Minister stated that the Malaysian government is committed to supporting local businesses through the Program Semarak Niaga Keluarga Malaysia (SemarakNiaga), worth RM40 billion; strengthening public healthcare facilities in managing COVID-19; and continuing the sustainability agenda, including the issuance of ringgit-denominated Sustainability Sukuk later this year.
Under Budget 2022, measures include:
- RM700 million for the nationwide digital connectivity initiative, JENDELA;
- RM1 billion under Bank Negara Malaysia’s SME Automation and Digitalisation Facility
- RM150 million for digital content creation for the creative industry
- RM200 million under the MSME Digitalisation Grant
Additionally, the MyDIGITAL Corporation has also been tasked to implement Malaysia’s Digital Blueprint with an emphasis on public sector digitalization efforts and nurturing digital talent. Further, the minister urged the financial sector to continue the inclusivity agenda while supporting the nation’s aspirations.
The key expected outcomes of the blueprint include:
- advancing digitalization of the financial sector;
- providing meaningful choice and access for consumers;
- increasing the vibrancy of the funding ecosystem to meet Malaysia’s economic needs;
- wider adoption of green finance and sustainability practices.
