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In the venture capital (VC) industry, Malaysia faces some hard truths. Local fund managers have faced challenges such as limited fundraising capacity and depth, regulatory friction, and fragmented programmes. The country has historically lagged behind regional peers in VC investment, which has constrained competitiveness and limited the number of home-grown startups able to reach regional scale.

To address this, the Malaysia Venture Capital Roadmap (MVCR) was formulated to align national policy, regulatory reform, and private-market mobilisation under a single coordinated strategy. It charts 11 interventions to ensure capital can flow efficiently to promising Malaysian startups by turning ideas from capable founders into scalable businesses. These startups represent the enterprises that will lead the industries of tomorrow, create high-value jobs, and fuel new innovations that strengthen Malaysia’s economic resilience.

VC is a critical source of funding for startup founders pursuing frontier technologies and new business models. It is a key catalyst for supporting economic growth and unlocking new technological breakthroughs. In the US, VC-backed companies have consistently led the way in job creation and innovation. The ‘Magnificent 7’ companies – Apple, Microsoft, Amazon, Alphabet, Tesla and Nvidia – were all once VC-backed. Now these companies command about USD 15 trillion in market capitalisation, or about a third of the S&P 500 Index¹. 

This underscores why venture capital matters to national productivity where small allocations can produce outsized economic impact.

How the MVCR Shapes Malaysia’s VC Future

While the potential contribution of VC to a nation’s economy is immense, Malaysia’s VC industry remains relatively nascent and lags behind Southeast Asia peers including Singapore and Indonesia. The domestic VC ecosystem had just USD429 million in funding in 2024, a modest amount relative to our ambitions. 

However, according to DealStreetAsia’s Q3 2025 report, venture funding across Southeast Asia fell 34 percent year-on-year, marking a regional low, yet Malaysia showed renewed activity in mid-sized deals as policy reforms took hold.

This transformation requires coordinated effort among regulators, agencies, ecosystem builders and Government-linked Investment Companies (GLICs) which is nothing less than an ‘all-in’ approach.  This naturally folds into Khazanah Nasional’s ‘A Nation That Creates’ framework, linking venture development directly to Malaysia’s broader economic-complexity agenda.

The MVCR aligns the efforts of different stakeholders towards a common goal: to transform Malaysia into a preferred regional VC hub, and position the country as a top 20 startup ecosystem globally by 2030.

The MVCR’s 11 interventions span capital flow, fund structures, tax incentives, talent development and crowding in capital models which are designed to remove friction and deepen capital formation for fund managers to scale credibly. 
 

Signs of execution are already visible. Bank Negara Malaysia will facilitate a more efficient and investor-friendly application process under the Foreign Exchange Policy (FEP) framework, ensuring that capital can move more efficiently across borders, attracting foreign investments into local startups.

The government had also recently announced plans to enhance VC tax incentives for 10 years through special tax rates and dividend tax exemptions, further enhancing Malaysia’s attractiveness as a VC investment destination for capital allocators.

Jelawang Capital’s Role as an Ecosystem Builder

Under the purview of the Ministry of Finance, Jelawang Capital serves as the Secretariat of the MVCR, ensuring policy ambition and market delivery remain connected. As a Dana Impak initiative under Khazanah Nasional and a participant of the GEAR-uP Programme, Jelawang Capital channels catalytic capital into Malaysia’s venture ecosystem to crowd in private investment and build institutional capability. We help ensure that the goals of our stakeholders are aligned, setting clear outcomes to set Malaysia on the right path towards becoming a regional VC hub.

Through its flagship Emerging Fund Managers Programme (EMP) and Regional Fund Managers Initiative (RMI), Jelawang Capital anchors capital in credible Malaysian managers and forges partnerships with global peers, strengthening Malaysia’s role in regional innovation networks. 

The MVCR provides a holistic blueprint to close systemic gaps from capital supply to fund-manager capability and founder readiness, thereby positioning Malaysia to climb the economic-complexity curve by 2030. As DealStreetAsia observes, late-stage capital has begun returning to Southeast Asia after four years of contraction, serving as a turning point Malaysia aims to capture through the combined strength of the MVCR and GEAR-uP.

Malaysia’s opportunity is not to replicate others, but to redefine what a collaborative, nationally anchored venture ecosystem looks like in Southeast Asia. The MVCR and GEAR-uP are our collective test: to show that when purpose and policy align, capital follows conviction.

To learn more, visit the Jelawang Capital website for details on the MVCR and its interventions here.

¹ Harvard Business School Study, “VC Role in Financing Innovation: What We Know and How Much We Still Need to Learn”
² DealStreetAsia SE Asia Deal Review Q3 2025 Preview Report.

Khazanah Nasional’s Dana Impak to launch initiatives to advance the national venture capital ecosystem | Khazanah Nasional Berhad

KUALA LUMPUR: Khazanah Nasional Berhad “Khazanah” will launch the Emerging Fund Managers’ Programme “EMP” and the Regional Fund Managers’ Initiative “RMI” under the National Fund-of-Funds “NFOF”. These initiatives follow the acquisition of Malaysia Venture Capital Management “MAVCAP” and Penjana Kapital “PK” by Khazanah in July this year.

Khazanah Managing Director Dato’ Amirul Feisal Wan Zahir said, “With the launch of EMP, we aim to ensure the continued growth of our local VC fund managers, and we see the RMI as another critical step in our commitment to foster a dynamic VC ecosystem in Malaysia. As innovation is borderless, the availability of capital, talent and technology will determine the future of Malaysia. This is why the NFOF will focus on the creation of local champions under the EMP, while attracting international capital and partners. These efforts will enable the fusion of local and international expertise, perspectives and knowledge to spur a vibrant ecosystem that fuels progress and advancements.”

Khazanah Managing Director Dato’ Amirul Feisal Wan Zahir said, “The integration of MAVCAP and PK represents an opportunity to build on the solid foundations of these entities while implementing new initiatives aimed at further strengthening Malaysia’s VC ecosystem. By consolidating investment platforms across multiple investment agencies, Malaysia will be better positioned to ensure greater sustainability of funding, crowd-in private capital, attract regional VC firms into the country and catalyse strategically important sectors.”

The EMP represents a significant step under the NFOF in advancing Malaysia’s VC and innovation ecosystem as the NFOF will anchor fundraising efforts of emerging local fund managers. With capital commitment from the NFOF, the programme aims to signal stronger confidence to prospective fund investors to invest in fund managers who have the potential to be regionally competitive.

Thereafter, the start-up ecosystem will benefit from crowding-in of private and other capital into these managers, which in turn will boost the presence of innovation-driven startups in Malaysia. Scheduled to commence in November 2024, the EMP will be opened to all Malaysian GPs, focusing on VC fund managers who are raising their first, second, or third fund – based in Malaysia or overseas.

The RMI on the other hand, represents the NFOF’s initiative to attract international fund managers who are committed to enrich the ecosystem, including supporting the growth of Malaysian startups to be regional and global players, as well as facilitate the redomiciling of global companies in Malaysia to expand local job capabilities, attract talent and deepen innovation. Amongst others, the NFOF welcomes established venture generators to unearth new entrepreneurs and support the growth of existing ones.

Established international fund managers with global mandates can leverage their existing portfolio companies to create value and impact by expanding into Malaysia. This strategic move seeks to foster collaborative partnerships with Malaysian companies to pilot initiatives that would result in technology and know-how transfer with the aim to increase business productivity and efficiency.

The establishment of the NFOF is aligned to Khazanah’s Advancing Malaysia strategy, anchored by ‘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 catalyse growth in key economic sectors.

The launch of the EMP and RMI underscores the NFOF’s commitment to enhancing access to capital for startups, driving innovation and spurring economic growth. This aligns with the aspirations of Ekonomi MADANI to ‘raise the ceiling’ through digital, innovation-led industries and support high-growth companies to become regional champions.

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Khazanah Nasional Berhad “Khazanah” and its subsidiary, Jelawang Capital “Jelawang” today announced the selection of the first five (5) venture capital “VC” firms under its Emerging Fund Managers’ Programme “EMP” and Regional Fund Managers’ Initiative “RMI” at an event held today, graced by the presence of YB Senator Datuk Seri Amir Hamzah Azizan, the Minister of Finance II.

This milestone announcement comes on the heels of the EMP and RMI launch in October 2024, underscoring our unwavering commitment to nurturing local VC fund managers and cultivating a vibrant venture capital ecosystem in Malaysia.

Minister of Finance II YB Senator Datuk Seri Amir Hamzah Azizan said, “Aligning with the objectives of Ekonomi MADANI, the commitment into these fund managers marks a pivotal step towards catalysing our venture capital ecosystem. This announcement together with the recent progress of Kuala Lumpur entering the Top 20 Emerging Startup Ecosystems globally, is an encouraging step and testament to what coordinated ambitions can begin to unlock.”

Out of the first five (5), three (3) firms were selected under the EMP, a programme structured to support Malaysian fund managers in raising their first, second, or third fund with the goal of creating regionally competitive VC fund managers by strengthening fund governance, building track record and crowding in capital. The EMP recipients are:

• Vynn Capital – A homegrown sector-focused Malaysian venture capital firm that was established as a Malaysian response to the evolving regional innovation landscape. The firm will focus on the mobility & supply chain sectors across seed to Series A investment stages with a focus on the Southeast Asia region.
• Kairous Capital – A venture capital firm with roots in private equity that invests in technology, positioned as a cross-border specialist, supports Malaysian startups in scaling into key Southeast Asian markets, including Vietnam, Thailand, and Indonesia. Kairous Capital facilitates regional growth for high-potential companies and the transfer of innovation and know-how from technologically advanced countries like China.
• First Move – A founder-led venture capital firm backing pre-seed stage across Southeast Asia. Built by experienced operators, the firm partners with second-time founders and domain experts — not only as early investors, but increasingly as co-builders — to help transform bold ideas into scalable businesses. First Move often serves as the first institutional partner, providing hands-on support from day one.

Two (2) regional firms were selected as partners under the RMI, an initiative aimed to attract regional / global fund managers who are committed to enriching the local startup ecosystem, through supporting the growth of Malaysian startups to be regional and global players, facilitating the re-domiciliation of global companies in Malaysia to expand local job capabilities, and attract quality talent in the Malaysian ecosystem. The new RMI partners are:

• AppWorks – AppWorks is an early-stage VC from Taiwan that fuses an equity-free accelerator with founder-first capital to scale Greater Southeast Asia’s tech startups – and has a top-quartile distributions to paid-in capital “DPI” track record. AppWorks’ investment mandate is in artificial intelligence, blockchain, and digital economy in Southeast Asia. AppWorks will be rolling out Malaysia-focused cohorts for Web 2.0 and Web 3.0 respectively, backed by in-market experts, capital, and a regional founder network to accelerate growth of Malaysia startups.
• Granite Asia – Granite Asia is a leading multi-stage investor focused on transformative opportunities across Asia, with a track record of building over 115 unicorns and achieving 61 IPOs globally. Granite Asia’s through its early-stage fund, will back transformative startups across Asia in sectors like consumer tech, enterprise software, healthcare, advanced manufacturing and automation. Granite Asia will collaborate with Khazanah and Jelawang Capital to provide Malaysian founders access to ecosystem programs that offer strategic insights, connections to Granite Asia’s extensive network of top founders and industry stakeholders, and curated programs for entrepreneurs aiming to help Malaysian startups to scale beyond the local market into the region and globally.

Khazanah Managing Director Dato’ Amirul Feisal Wan Zahir said, “Through Dana Impak and Jelawang Capital, we act as both catalyst and connector — bringing together funders, founders, and institutions to strengthen a venture ecosystem that supports firms from nimble start-ups to mid-sized enterprises and established corporates. Our focus is not just on capital, but on crowding in participants to build an ecosystem where innovation can thrive — enhancing Malaysia’s economic competitiveness and resilience.”

The five (5) VC firms were selected through a rigorous evaluation process focused on the funds’ investment thesis, strength of core team, governance and alignment with strategic national development priorities.

Jelawang Capital Chairman Datuk Hisham Hamdan added, “We began with a systems-driven approach to ecosystem building and, via the EMP and RMI, we are excited to support the next generation of Malaysian fund managers and deepen the pool of quality founders. In that respect, we are proud to work with this group of high calibre fund managers, while further crowding-in capital, talent, expertise and capabilities into this ecosystem. In shoring up this ecosystem, we look forward to working with like-minded partners and investors.”

Overall, the selection of these partners under the EMP and RMI are in line with strategic approaches under the Malaysian Venture Capital Roadmap 2024 – 2030 to transform Malaysia into a preferred regional VC hub by 2030. The first group of appointees marks a milestone in the broader RM1 billion committed under the Ekonomi MADANI framework to support high-growth entrepreneurs and crowd-in institutional capital in early-stage fundraising.

Khazanah Nasional completes acquisitions of MAVCAP and Penjana Kapital, a step forward in advancing Malaysia’s venture capital ecosystem | Khazanah Nasional Berhad

KUALA LUMPUR: Khazanah Nasional “Khazanah” today announced the successful completion of the acquisitions of Malaysia Venture Capital Management “MAVCAP” and Penjana Kapital “PK”.

These strategic acquisitions align with key objectives of the Malaysia MADANI Budget 2024, namely, strengthening Malaysia’s venture capital “VC” ecosystem and improving public institutions. Upon completion, they are expected to enhance the coordination and centralisation of government resources, facilitate efforts to advance Malaysia’s startup ecosystem and bolster its regional competitiveness.

Following the acquisitions, MAVCAP and PK are now wholly owned subsidiaries of Khazanah. Khazanah will then begin establishing a National Fund-of-Funds “NFOF” with an initial allocation of RM1 billion to invest in innovative and high-growth startups via VC and PE funds.

Khazanah Managing Director Dato’ Amirul Feisal Wan Zahir said, “The integration of MAVCAP and PK represents an opportunity to build on the solid foundations of these entities while implementing new initiatives aimed at further strengthening Malaysia’s VC ecosystem. By consolidating investment platforms across multiple investment agencies, Malaysia will be better positioned to ensure greater sustainability of funding, crowd-in private capital, attract regional VC firms into the country and catalyse strategically important sectors.”

“Furthermore, the establishment of a national fund-of-funds aligns with Khazanah’s Future Malaysia Programme, which aims to support the local start-up ecosystem of entrepreneurs, start-ups, VC, and corporate venture programmes through collaboration with domestic and international partners.”

Khazanah is confident that the combined experience and resources of all the entities will enhance access to capital for start-ups, driving innovation and spurring economic growth. This aligns with the aspirations of Ekonomi MADANI to ‘raise the ceiling’ through digital innovation-led industries and support high-growth companies to become regional champions.

Additionally, this initiative is a key pillar of Malaysia’s vision of becoming a preferred regional VC hub by 2030, as outlined in the Malaysia Venture Capital Roadmap 2024-2030 “MVCR” and the KL20 Action Paper.

“We recognise the contributions and commitment of MAVCAP and PK. Their vision and dedication to the VC ecosystem all these years have been instrumental, and we look forward to drawing on the teams’ strength and experience to achieve our collective vision of Advancing Malaysia,” concludes Amirul Feisal.

The national fund-of-funds will empower and grow Malaysia’s startup ecosystem as part of Khazanah’s Dana Impak efforts

KUALA LUMPUR: Khazanah Nasional Berhad “Khazanah” today launched the national fund-of-funds, Jelawang Capital Sdn Bhd “Jelawang Capital”, following the consolidation of Malaysia Venture Capital Management and Penjana Kapital in July and pursuant to the announcement in YAB Prime Minister’s third MADANI Budget 2025 speech.

Khazanah Managing Director, Dato’ Amirul Feisal Wan Zahir said, “Jelawang Capital signifies our commitment to the growth of Malaysia’s venture capital “VC” ecosystem. Through this catalytic initiative, Jelawang Capital will continue to grow Malaysian fund managers while crowding-in regional fund managers with expertise and capital.”

He added, “The VC industry is an important source of innovation, economic growth and job creation for the nation. However, based on research by Startup Genome, only 1.5% of startups in the best US VC hubs enjoy meaningful financial returns on their investment i.e. a successful exit of US$50million or more, illustrating the high inherent risk and challenges associated with this asset class. As such, nothing short of an all-of-nation approach will be needed for us to increase the odds of success. While capital is a key building block to a vibrant VC ecosystem, other critical success factors include the ease of doing business, availability of talent, and deepening of technology and know-how. As innovation is borderless, it is this combination of capital, effective regulation, talent and technology that will determine the future of Malaysia.”

Jelawang Capital will be led by Bryan Lim as its Chief Executive Officer, who is also Khazanah’s Head of Dana Impak.

Bryan Lim said, “Jelawang Capital is named after the tallest waterfall in Malaysia. Our vision for the local VC ecosystem begins with the provision of capital to fund managers. In turn, we envision this capital and expertise of the managers to cascade to high-potential startups. Like a waterfall flowing into rivers that nourishes the local flora and fauna, we hope these high-potential investments will enrich the wider VC “rainforest” (ecosystem) with innovation and quality jobs. As with any healthy forest, success will depend not just on the availability of water (capital), but also on the abundance of sunlight and nutrients. In shoring up this ecosystem, we look forward to working with like-minded partners and investors.”

To accelerate the growth of Malaysia’s venture capital ecosystem, Jelawang Capital will spearhead two initiatives:

• The Emerging Fund Managers’ Program (EMP):
  
  The EMP aims to nurture promising Malaysian VC fund managers to raise their first, second or third fund.
  
  Open to Malaysian General Partners (“GPs”) based in Malaysia or abroad, the EMP seeks to support Malaysian fund managers to establish their track record and increase their competitiveness in the VC ecosystem. Jelawang Capital will act as an anchor for Malaysian GPs to gain traction and crowd-in further capital from other local or international investors. Aside from capital support, the EMP aspires to support GPs to develop crucial areas such as fund management, investment operations and talent management. In turn, this is expected to gradually institutionalise and improve the capabilities of GPs.
  
  Interested applicants can learn more about the qualifying criteria and download the application forms at www.www.jelawangcapital.com. The EMP is open for proposals until 31 December 2024 and completed applications are to be submitted to [email protected]. Further opportunities to participate in EMP will be available in the second half of 2025.
   
• The Regional Fund Managers’ Initiative (RMI):
  
  RMI aims to elevate Malaysia’s startup ecosystem through strategic partnerships with regional VC firms.
  
  The RMI represents Jelawang Capital’s effort to attract international fund managers who are committed to enrich the ecosystem. This includes supporting the growth of Malaysian startups to be regional and global players, as well as facilitating the redomiciling of global companies in Malaysia to expand local job capabilities, attract talent and deepen innovation. In addition, Jelawang Capital welcomes established venture generators to unearth new entrepreneurs and support the growth of existing ones in Malaysia.
  
  Regional managers aligned with these strategic objectives are invited to submit their proposals to [email protected].

Both the EMP and RMI initiatives will enable the fusion of local and international expertise, perspectives and knowledge to spur a vibrant ecosystem that fuels progress that Advances Malaysia.

As the national fund-of-funds, Jelawang Capital forms part of Dana Impak. Dana Impak is a key pillar of Khazanah’s Advancing Malaysia strategy anchored by ‘A Nation that Creates’ framework which aims to boost national productivity and competitiveness. Dana Impak initiatives aim to empower Malaysian business of all sizes and across different life cycles, including startups, small to mid-tier as well as large companies, with the objective of improving livelihood of communities.

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Malaysia’s Budget 2026, marking the start of the 13th Malaysia Plan (RMK-13), continues the Ekonomi MADANI framework and shifts Malaysia from subsidy-driven
spending to purposeful investment. It focuses on the building of future industries, with key commitments to semiconductors, energy transition, digitalisation, and startups through capital that is responsible, performance-based, and outcome-driven.

Catalytic capital is investment that enables innovation and attracts private participation while maintaining governance and accountability. It turns public policy into measurable market outcomes.

Undertaking this change requires investment in the high growth, high value (HGHV) startups who will shape tomorrow’s innovation driven economy. Startups currently contribute RM1 billion to Malaysia’s GDP, with 82,000 jobs created.

The combined allocation under KWAP’s Dana Perintis and Jelawang Capital has increased from RM550 million to RM750 million, strengthening Malaysia’s venture ecosystem and reflecting confidence in the country’s institutional capacity to manage capital with discipline. This increase also underscores our shared role in developing fund managers, attracting regional partners and backing innovation that builds industries, creates quality jobs and advances economic complexity for future generations.

To further encourage investment, the government also plans to enhance VC tax incentives for 10 years through special tax rates and dividend tax exemptions. This
initiative also supports the Malaysian Venture Capital Roadmap (MVCR) 2024-2030, for which Jelawang Capital serves as the Secretariat, ensuring that national policy and market execution remain connected.

VC’s Role in Nation Building

As part of Khazanah’s Dana Impak, Jelawang Capital supports national priorities by strengthening Malaysia’s venture ecosystem to secure Malaysia’s economic
competitiveness over the long term.

In his keynote address at the recent Khazanah Megatrends Forum, Prime Minister Datuk Seri Anwar Ibrahim stressed the importance of securing Malaysia’s long term
economic resilience through purposeful investment. When governance and capital discipline align, venture investment becomes a tool of nation-building.

“Khazanah’s investments in strategic sectors, from semiconductors and green technology to startups through Jelawang Capital, reflect an understanding that
resilience depends on depth and breadth. “

“By nurturing the local venture capital ecosystem, Khazanah strengthens Malaysia’s capacity to innovate from within, reducing dependence on external cycles.”

The Current State of Malaysia VC: Where Jelawang Capital Steps In

A recent report by DealStreetAsia and Kickstart Ventures highlights existing challenges in the Malaysian VC ecosystem. Early-stage deal counts have been
trending down since 2022, as part of what DealStreetAsia calls a “long winter in Southeast Asia’s funding startup cycle”. In Southeast Asia overall, VC dealmaking
has slowed to its weakest point in more than six years.

Source: Southeast Asia Startup Funding Report: H1 2025, DealStreetAsia, 11 September 2025

However, there are bright spots. Capital deployment has been more selective but substantial, suggesting that fund managers are waiting to back start-ups with strong fundamentals and scalable models. This underscores the need for strong institutional anchors that can provide stability and maintain confidence in the market. This is where Jelawang Capital’s steps in through the Emerging Fund Manager’s Programme (EMP) and the Regional Fund Managers’ Initiative (RMI). 

By institutionalising governance and risk taking, we are cultivating discipline, enabling our fund managers to better support their investee companies. A disciplined venture approach ensures that risk is calculated, and value creation sustained. This builds a pathway for long-term growth, where patient capital allows Malaysian innovators to refine their products, scale responsibly and create enduring businesses.

The managers under the EMP and RMI have gone beyond ideation to the execution phase, with several funds now initiating capital calls and ready to deploy.

What This Means for the Ecosystem

Budget 2026 reinforces our role under Dana Impak as stewards of responsible institutional capital. Venture capital is not only about financing startups but about building the structures, institutions and talent that sustain innovation for future generations.

Through discipline and purpose, Jelawang Capital will continue contributing to Malaysia's progress as A Nation That Creates.
 

Malaysia’s digital economy is gaining momentum. With e-commerce income surpassing RM1 trillion in 2024^[1] and widespread adoption of cashless and cloud-based services, we are not just embracing innovation. We are shaping it.

Another major shift is on the horizon. Web3 is the next frontier – a decentralised and open internet powered by blockchain technology. It represents a new internet model where users control their digital identity, value, and interactions.

Blockchain, the primary technology that powers Web3, enables this transformation by decentralising verification and ownership. It also underpins systems like decentralised finance, stablecoins, verifiable identity, and decentralised networks (DePIN).

Cryptocurrencies have led advances in blockchain, demonstrating real use cases. Bitcoin enabled peer-to-peer electronic transfers without a central controlling authority. Ethereum was the world’s first programmable blockchain and continues to dominate the smart contracts space. Solana’s consensus mechanism enables thousands of transactions per second with low fees, rivaling traditional payment processors.

But every leap forward depends on what lies beneath. Behind seamless apps and platforms are systems that build trust, reduce friction, and ensure accountability.
Blockchain is emerging as one of these foundational systems. It supports real-world outcomes in sectors like halal certification, public services, cross-border trade, and inclusive finance.

Blockchain tech needs to thrive to power Web3. This is where venture capital comes in, providing crucial funding for startups to unlock new technological breakthroughs. 

At Malaysia Blockchain Week, the Minister of Science, Technology, and Innovation, Chang Lih Kang emphasised its importance in driving the country’s economic advancement: “Blockchain is not just a tool. It is foundational infrastructure that must serve all levels of society.”

The Malaysia Blockchain Infrastructure (MBI), set to go live this year, is designed to promote interoperability, reduce duplication, and encourage innovation. Crucially, it offers open access to local startups, businesses, and communities, ensuring widespread participation in the digital economy. 

However, the infrastructure will only thrive when policy goes hand in hand with informed capital. Unlike quick-turnaround digital products, blockchain infrastructure takes longer to build. Many local builders with high-potential ideas still struggle to find the right type of early support. 

Through Jelawang Capital's Emerging Fund Managers’ Programme and the Regional Fund Managers’ Initiative, we are on the lookout for venture capital funds that invest in technologies that contributes towards deepening Malaysia’s economic complexity. This includes frontier areas such as Web3 and artificial intelligence.

Understanding Web3 and Blockchain

^[1] Department of Statistics, 2024; https://www.komunikasi.gov.my/en/public/news/21743-malaysia-s-e-commerce-revenue-to-reach-rm1-65-tril-by-2025

When starting a business, founders tend to rely on venture capitalists (VCs) for both capital and guidance. A VC’s role goes beyond just channelling money; instead, it is a long-term commitment with the founders, giving them the resources necessary to grow and succeed.

While a good founder knows when to seek advice and when to trust their instinct, a good VC knows when to offer support and when to step back, letting founders build.

For serial entrepreneur Thinesh Kumar, CEO of business-to-business (B2B) marketplace platform Lapasar, this dynamic relationship between founder and VC is central for startups to build resilient companies.

“People like me are not looking for a cheerleader but someone who can pressure test ideas, give hard truths when needed. A founder’s job is already lonely enough; it helps when your investor feels like a real partner.”

Founded in 2018, the company connects businesses with suppliers via its online marketplace. This makes procurement cheaper and easier, enabling companies to embrace digitisation and go paperless. Its customers range from small businesses to large corporations such as Petronas and Tenaga Nasional.

In 2024, with support from backers including Retirement Fund (Incorporated)(KWAP), Creador, Adaptive Capital Partners, and Dana Impak’s Gobi Dana Impak Ventures, Lapasar raised RM31 million to expand its presence in fast-moving consumer goods (FMCG), where it currently serves more than 6,000 SMEs and restaurants. Jelawang Capital, through MAVCAP’s investment in a VC fund, was also among its early backers in a prior fundraising round.

Founders and VCs: a Two-Way Relationship

In his entrepreneurial journey, Thinesh has seen the growth of Malaysia’s VC ecosystem first hand. He stresses the importance of having a collaborative relationship between founder and VC.

“The good VCs know how to balance instinct with data. They don’t just look at the numbers or trends, they take the time to understand the founder and the problem being solved.”

He argues that healthy ecosystems need diversity among capital allocators, including founder-turned-funders and operators who have scaled.

“Right now, some in the ecosystem still see startups through a purely corporate or financial lens, and that creates a disconnect. We need more people who have actually built stuff. These are founders who have been through the grind, and operators who have scaled,” he says.

Jelawang Capital reaffirms this by backing a diverse set of fund managers under the Emerging Fund Manager’s Programme (EMP), including First Move, led by former serial entrepreneurs.

More VCs mean more opportunities for investment, and just like entrepreneurs, embracing failure is part of the journey. This is how an ecosystem thrives – with experience, networks, and mutual support.

“Because the market evolves, we need new fund managers who see the next wave of opportunity, not just the last one. Every cycle brings fresh perspective & new networks, and that’s how the ecosystem keeps going,” he says.

Jelawang Capital’s Role in Boosting Malaysia VC

Under the EMP, Jelawang Capital supports Malaysian VC fund managers raising their first, second and third fund. The goal is to create regionally competitive managers by strengthening fund governance, building track record and crowding in capital.

By deepening talent and capital, capable VCs can channel funding to startups that form the backbone of Malaysia’s innovation economy.

As part of Dana Impak, we strive to play a catalytic role in strengthening Malaysia’s economic competitiveness over the long term.

Malaysia has many entrepreneurs, but too few consumer brands that scale beyond our borders. Montigo’s rise shows that the gap is not in talent. It is in mindset and the kind of support that helps founders think bigger.

Founded in 2017 by Melvin Chee, RPG Commerce began as an e-commerce company. Within five years its Montigo bottles became a regional phenomenon, sold in Singapore, the UAE, Thailand and Indonesia, with more than 60 physical stores. RPG has since expanded into cookware with Cosmic Cookware and family-focused products with OiYO, building a house of brands rather than relying on a single hit.

The real difference was intent. Chee’s goal from day one was to build with global ambition. “Montigo is drinkware, it’s a lifestyle product, and it’s a functional product. The total addressable market for us is so wide, so it’s a reflection of our global ambition from the start,” he explains. That mindset guided decisions on design, distribution and markets.

Capital translated that ambition into scale. RPG has raised USD34.5 million across two rounds, with a valuation of USD130 million. Investors provided networks and guidance as much as funding. Among the early backers was RHL Ventures via Penjana Kapital, now part of Jelawang Capital. That continuity underscores how aligned capital can help transform a founder’s vision into a regional force.

Going Where Few Startups Go

Montigo’s expansion into the Middle East shows how Malaysian companies can break new ground. Few ASEAN startups start there. Chee did, even if it meant learning the market from scratch. “It took us a while to set up our Middle East operations because we knew nobody there. We had to knock on every door to make sure we find the right partner to help us set everything up on the ground.”

For Chee, the experience highlights why ecosystem collaboration matters. “With a collaborative ecosystem, founders will be able to shortcut this process in the future, tapping into networks with existing know-how. The VC ecosystem helps bridge connections and shorten the learning curve for founders.”

Building in Malaysia, Scaling Beyond

Malaysia is now gaining recognition as a startup destination. In 2025, Kuala Lumpur broke into the world’s top 20 emerging startup ecosystems in rankings by Startup Genome. The report cited KL’s diversity, affordability and resilience. For founders, this creates an ideal environment to test and refine ideas before scaling regionally.

Chee agrees. “Malaysia has a strong talent pool. We value our diversity and the ability to communicate harmoniously across different backgrounds. The Government’s push towards digitalisation is also highly supportive of startups.”

Yet he is also clear-eyed about the next stage. Today most revenue comes from Malaysia and Singapore. Over the next few years, he expects those markets to account for less than half of revenues as Montigo’s globalisation plan takes shape. “Be ambitious and think global. You can be the champion in one market, but building something much larger requires the right partners when exploring new markets. Keep building, scale up and expand.”

What This Means for the Ecosystem

Montigo is not an anomaly. It is a signal. It proves Malaysian founders can compete regionally and globally if ambition and capital align. For this to happen more often, investors must encourage cross-border growth, policymakers must smooth pathways to internationalisation, and founders must set their sights beyond borders from the very start.

At Jelawang Capital, we see ambition matched with the right support as the key to Malaysia’s competitiveness.  This will be be measured by how many companies we help grow into regional and global leaders. Montigo shows what is possible and can be done. We bring capital, networks and a bias for scale so ambition turns into operating reality. Our task as an ecosystem catalyst is to make outcomes like this common.
 

As Malaysia deepens its push into innovation and venture capital (VC), the work of enabling is giving way to the work of building.  

The vision of transforming the country into a preferred regional VC hub is now being tested on the ground — by fund managers shaping new markets, and founders learning to scale with ambition, going beyond borders to chart a new path. 

500 Global managing partner Khailee Ng is no stranger to the tech ecosystem. He began building websites at the age of 15 and eventually started his own companies as he watched the internet boom and expand rapidly. 

After several successful exits as a founder, Ng moved into angel investing and eventually ended up in Silicon Valley. 

“After meeting 500 Global, a Silicon Valley-based VC firm, I saw an opportunity to bring their brand of VC back to South-East Asia,” he said. 

Ng launched its first fund for South-East Asia in 2014, and some of the early companies they backed include Grab, Carousell, and Carsome - startups with Malaysian founders that eventually grew to become companies valued at over US$1 billion.

Today, he believes the Malaysian startup ecosystem is still in its early innings, and being a VC is not just about investing capital—it’s about building a strong, collaborative ecosystem for all to rise. 

This vision is echoed by AppWorks Chairman and Partner Jamie Lin, who believes that startups should make an effort to regionalise – in terms of exploring new markets, and learning lessons from seasoned international entrepreneurs. 

Essentially, this requires Malaysian entrepreneurs to shift into a ‘can do’ mindset; to build with regional aspirations from the start, while localising in each market. 

As one of Southeast Asia’s leading startups accelerator, Lin says many Malaysian entrepreneurs have joined AppWorks’ accelerator program, benefiting from mentorship and scaling opportunities leveraging its massive regional network. “The 624 active startups in our ecosystem really serve as the best landing pod for startups targeting to go regional,” he says.  

As a founder-turned-funder, Lin understands both the entrepreneurial mindset as well as applying an investors’ lens towards backing founders that are both fundable and scalable.

“We put the founder’s interest before our interest. Because of that, we’ve been able to consistently attract high-quality founders to join us. They in turn benefit from being able to connect with our strong regional network of entrepreneurs. Community is very important, and cross-border sharing of knowledge ultimately benefits the whole ecosystem” Lin says. 

Collektr founder Adlin Yusman understands the trials and tribulations of entrepreneurship, noting that today’s founders are in a fortunate position thanks to better access to capital and liquidity in the local ecosystem.  

The livestream collectibles platform secured its pre-Series A funding last year, bringing its total investment to RM5.74 million. “A VC is critical because it allows you to scale at speed, and you can acquire markets while using the venture funding to multiply your growth, accelerate acquisitions, and develop the technology,” he said.  

A VC will also be able to identify if a business is viable, and in some form, offer mentoring.  “You have to nail the business model, have the right product for the right market, and then raise the money,” he said. 

As the National Fund-of-Funds, Jelawang Capital advances the VC ecosystem by seeding credible fund managers to support the growth of high value startups that will contribute  to Malaysia’s economic complexity. 

To learn more about these transformative efforts, read our Chairman’s thoughts on Jelawang Capital’s mission to ignite a more innovative, connected and self-sustaining national economy here: https://www.thestar.com.my/business/business-news/2025/07/26/malaysias-next-scrabble-move