The Malaysian government’s investment arm, Penjana Kapital, has signed a memorandum of understanding (MoU) with the Taiwanese government to invest in the deeptech sector.
Memorandum of Understanding with Taiwan’s Govt:
The MoU was signed by Penjana Kapital CEO, Tunku Ali Redhauddin Tuanku Muhriz, and Taiwan’s Minister of Economic Affairs, Wang Mei-hua, in Taipei on Monday.
Under the MoU, Penjana Kapital and the Taiwanese government will jointly invest in deeptech startups in Malaysia and Taiwan.
The Big Investment Will Lead The Country’s Economy:
The two parties will also collaborate on initiatives to promote deeptech innovation and entrepreneurship in both countries.
Penjana Kapital is a government-owned investment company that was set up in 2020 to support the Malaysian government’s economic recovery plan.
The company has a mandate to invest in high-growth sectors, including deeptech.
The Taiwanese government has been a major investor in deeptech in recent years.
In 2019, the government launched the National Development Plan for Deeptech Innovation, which aims to make Taiwan a global leader in deeptech by 2030.
The plan includes a number of initiatives to support deeptech startups, such as providing funding, training, and mentorship.
Major Change in Asia’s Deeptech Industry:
To make investments in Asia’s deeptech industry, Taiwan’s APAC Investment and Innovation Development Association (AIIDA) and Malaysia’s government-owned fund of funds, Penjana Kapital, have teamed up.
At the conclusion of a gaming conference hosted by Round Ventures, the investment arm of South Korean gaming company GXC, the two companies sealed a memorandum of agreement.
During the occasion, Tech in Asia was informed by Taufiq Iskandar, CEO of Penjana Kapital, that the company’s recent collaboration with AIIDA will facilitate the international growth of Malaysian entrepreneurs in Taiwan and vice versa. He continued by saying that Penjana Kapital uses the relationship to invest in gaming venture funds such as Round Ventures.
The general partner and CEO of Round Ventures, Rick Nahm, claims that Penjana Kapital has executed a letter of intent to invest in the company, signifying a “soft commitment.
“Round Ventures has raised its funding target in accordance with this, going from US$40 million to US$80 million from the previous year. By the next year, Nahm stated, it intends to complete its first round of investments.
This very collaboration actually helps the economy and sectors to grow and develop deep down in the country to make it prosperous.
The collaboration between Penjana Kapital and the Taiwanese government is expected to boost the development of deeptech in Malaysia and Taiwan.
What to Expect After the Deeptech Startups?
The two countries have complementary strengths in deeptech, with Malaysia having a strong manufacturing base and Taiwan having a strong research and development (R&D) ecosystem.
The collaboration is expected to help both countries to develop world-class deeptech startups and to attract global investment in deeptech.
