What is Jelawang Capital (“JC”)? Why was it established?
Jelawang Capital is the National Fund-of-Funds (NFOF).
Jelawang Capital was established to strengthen Malaysia’s Venture Capital ecosystem. It is expected to enhance the coordination and consolidation of government resources, facilitate efforts to advance Malaysia’s startup ecosystem, and bolster its regional competitiveness. A ‘fund-of-funds’ (FOF) model is adopted to invest in venture capital (VC) funds, who in turn, invest in innovative, high-growth start-up companies founded by entrepreneurs in Malaysia and regionally.
Per the Malaysia MADANI Budget 2024, Khazanah has been tasked to spearhead the strengthening of the local venture capital ecosystem, with the consolidation of Malaysia Venture Capital Management (“MAVCAP”) and Penjana Kapital. Following the acquisitions in July 2024, the two entities have been merged to establish Jelawang Capital which aims to promote a vibrant Malaysian startup ecosystem and invest in high-growth firms. As announced by YAB Prime Minister during the KL20 Summit, the National Fund of Funds will have an initial fund size of RM1 billion.
How will this fund benefit Malaysia?
The establishment of Jelawang Capital is in alignment with the Ekonomi MADANI framework, aimed at supporting the growth of startup companies as well as Malaysian Venture Capital fund managers. Jelawang Capital aims to help Malaysian companies with innovative technologies and/or business ideas to compete regionally and globally. Further, we target to sustain the growth of Malaysian Venture Capital fund managers.
Indirectly, Jelawang Capital will contribute to the growth of our economy, GDP, and development of local talent that will drive further innovations and advancements, as well as create jobs.
Jelawang Capital will support the country’s vision of increasing its venture penetration from USD758m in 2022 to USD 1.4 bn by 2030, as guided by the Malaysia Venture Capital Roadmap 2024 – 2040 (MVCR).
What is the fund size for Jelawang Capital?
As announced by YAB Prime Minister during the KL20 Summit in April 2024, Jelawang Capital will launch with an initial allocation of RM1 billion.
Alignment with Khazanah Nasional and Government Initiatives
How does the NFOF align with Khazanah’s long-term vision?
The establishment of the NFOF is aligned with Khazanah’s Advancing Malaysia strategy anchored by the ‘A Nation That Creates’ framework that aims to boost national productivity and competitiveness. These initiatives are a part of Khazanah’s commitment under the GEAR-uP programme, led by the Ministry of Finance (“MOF”), in synergising efforts across Government-Linked Investment Companies (“GLICs”) and catalysing growth in key economic sectors.
What is the Malaysia Venture Capital Roadmap 2024-2040 (MVCR) and how does it relate to Jelawang Capital?
Launched in April 2024, the MVCR seeks to support Malaysia’s vision as an emerging VC hub in Southeast Asia, with the vision of making it a preferred destination for VC within the region.
JC supports the coordination, tracking and monitoring of the eleven (11) MVCR interventions and acts as a key facilitation body for Malaysia’s VC ecosystem.
Besides the MVCR, how does the Jelawang Capital tie back to wider policy by the Government?
The establishment of Jelawang Capital aligns with the Ekonomi MADANI Budget 2024 initiatives to strengthen the VC ecosystem and improve public institutions.
Moreover, Jelawang Capital is in line with the Malaysia Startup Ecosystem Roadmap (SUPER) 2021 – 2030 to develop startups and their global market presence. Furthermore, Jelawang Capital aims to build strategic sectors creating social and environmental impact, in addition to making Malaysia a top 20 global startup ecosystem by 2030.
Jelawang Capital also supports the KL20 Action Paper's initiatives and Securities Commission Capital Market Masterplan to attract regional VC firms to set up presence in Malaysia, with an intent to engage with and invest in the local startup ecosystem. In addition, Jelawang Capital aims to support local venture capital firms to widen funding options for early-stage startups in Malaysia’s startup ecosystem.
Jelawang Capital, through Khazanah, also plays a pivotal role in the GEAR-uP program by allocating funds to support local entrepreneurs and industries, specifically targeting high-growth and high-value sectors.
Fund Programmes
What types of start-ups or industries is Jelawang Capital particularly interested in supporting?
