MIDA bridges Malaysian Fintech start-up, UK investment firm

KUALA LUMPUR: The Malaysian Investment Development Authority(MIDA) through its dedicated unit, the Domestic Investment Coordination Platform (DICP) tasked with facilitating local SMEs to develop further, has enabled a Malaysian financial technology (Fintech) start-up, Neurogine Sdn Bhd to seal an acquisition deal with Hadigy Ltd, an investment holding company based in the UK.

The signing of the shareholders' agreement would allow Hadigy Ltd to acquire a 30 per cent stake or 1.929 million ordinary shares of Neurogine, a Malaysian home-grown fintech start-up specialising in digitalisation of mobile banking, mobile payment and digital asset solutions.

The signing ceremony between Neurogine chief executive officer (CEO) Owen Chen Chee Onn and Hadigy Ltd executive director Hari Iyer was held virtually between Kuala Lumpur and London recently, witnessed by the MIDA CEO Datuk Azman Mahmud at MIDA headquarters here.

"Among the major challenges for SMEs and start-ups to scale up include limited access to funding. Hence, MIDA has taken a proactive approach through DICP in supporting local companies, SMEs and start-ups in addressing the funding gap.

"The presence of foreign funders such as Hadigy Ltd in this space would certainly help in accelerating the adoption of technology and stimulating the growth of fintech services in Malaysia," said Azman.

Azman said in the wake of COVID-19, the local technology segments of e-commerce, fintech and medical technology would be able to entice foreign equity or venture capital investments.

He said these sectors, which provide remote solutions by minimising and eliminating physical contacts, have emerged stronger, driven by the renewed demands from industry users in observing the standard operating procedures of COVID-19 as recommended by the World Health Organisation.

MIDA reckons fintech is poised as a growth driver in Malaysia in 2021 and beyond; and the country is ready to take advantage of fintech innovation.

The strong support and initiatives by the government for digital economy, supported by the growing middle class with 90.1 per cent of households having access to the Internet and 98.2 per cent access to mobile phones* are indications of the flourishing digital economy. (Source: DSOM report on ICT use and access by individuals and households - 2019).

In line with the national investment aspiration to increase economic complexity and build Malaysian conglomerates, the government, through MIDA and its DICP unit is committed to connecting Malaysian start-ups with international venture capital firms.

The unit will further facilitate a sustainable growth path and a vibrant ecosystem for high-profile start-ups to thrive and flourish.

-- BERNAMA