The Ministry of Finance (MoF) is providing funding of RM100 million in an effort to aid Malaysian technology startups affected by the current COVID-19 pandemic. The provision is allocated to Malaysia Debt Ventures Bhd (MDV) to facilitate the Technology Start-up Funding Relief Facility (TSFRF) initiative.
An agency under the Ministry of Science, Technology and Innovation (MOSTI), MDV provides financial assistance to sustain the cash flow for startups, as well as maintaining the continuity of the business operations of the selected companies. The TSFRF initiative is expected to benefit between 60 to 80 local technology startup companies, according to Science, Technology and Innovation minister Khairy Jamaluddin.
The minister explains that the initiative would ease the burden of startups and ensure legal fees and additional costs are exempted. These provisions are channeled to startup companies in the form of loans, grants, capacity development initiatives, operations support, market access and more.
TSFRF adalah program pembiayaan yang akan dilaksanakan oleh @mdvberhad – Malaysia Debt Ventures Berhad (MDV) – iaitu agensi di bawah MOSTI @officialmosti bermula 15 Mei. Maklumat lanjut boleh diperolehi di https://t.co/MfnqpbyCqM pic.twitter.com/pKdSCHq5G1
— Tengku Zafrul (@tzafrul_aziz) May 8, 2020
He added that the application process is made simple, thus allowing for shorter processing time, assessment period and quick disbursement – without compromising the credit assessment aspects from MDV. Khairy also stated that companies interested in applying for the TSFRF must fulfill four criterias in order to be eligible. Startups must have good strategic position, competitiveness position, growth potential and credit assessment.
The TSFRF initiative is slated to start on 15 May 2020. Additionally, Minister of Finance Tengku Zafrul Aziz also stated the MoF would consider increasing the financing facility if the number of applications for the initiative is high.