KUALA LUMPUR, October 19 — Prime Minister Datuk Seri Anwar Ibrahim has announced the establishment of the National Fund-of-Funds (NFOF) under Khazanah Nasional Bhd, set to launch in November 2024 with a substantial fund of RM1 billion. This initiative aims to bolster local startups by providing necessary financial support through venture capital fund managers, with RM300 million specifically allocated for 2025.
During the presentation of Budget 2025 in the Dewan Rakyat, Anwar, who also serves as the finance minister, detailed the comprehensive financial framework supporting local innovation. In addition to the NFOF, the Kumpulan Wang Persaraan (Incorporated) (KWAP) will contribute RM1 billion to the Pioneer Fund, earmarking RM200 million for the same year to promote local startup activities.
To further enhance the startup ecosystem, the Cradle Fund will receive RM65 million to aid startups in expanding regionally and globally, which includes a RM15 million matching grant to incentivize government-linked companies (GLCs) to engage with startups through corporate venture capital initiatives. Anwar emphasized that simplifying the approval process for cross-border fund flows under the Foreign Exchange Administration Policy will make Malaysia’s venture capital ecosystem more competitive, attracting greater foreign investment.
