- Programme provides up to US$750k in financing to help MD Status companies scale and grow
- AI-powered credit assessment expands access to funding for asset-light technology companies
Bay Smart Capital Ventures Sdn Bhd (CapBay), a Malaysian fintech company specialising in supply chain finance and peer-to-peer (P2P) financing solutions, is collaborating with the Malaysia Digital Economy Corporation (MDEC) through the MD Technology Financing Programme to expand access to growth financing for Malaysia Digital (MD) Status companies.
Backed by a US$50 million (RM200 million) financing pool, the initiative is designed to support business expansion and the continued growth of Malaysia’s digital economy.
The programme leverages MDEC’s Malaysia Digital ecosystem with CapBay’s financing expertise to improve access to funding for eligible MD Status companies. It is designed to support high-potential technology companies that may face challenges securing conventional financing due to their asset-light business models.
Eligible MD Status companies may apply for financing of up to US$750,000 (RM3 million), with repayment tenures of up to 60 months, rates from 6% per annum and a six-month grace period. The programme is open to both established technology companies and early-stage startups, including businesses incorporated for as little as six months, through a fully digital application process.
[RM1 = US$0.25]
Financing decisions are supported by CapBay’s AI-powered credit assessment model, which evaluates applicants based on business fundamentals and growth potential rather than physical collateral. The framework is specifically designed for technology companies whose primary assets are intellectual property, talent and proprietary systems. Since 2016, CapBay has facilitated more than RM5.6 billion in financing for over 2,600 enterprises.
Ang Xing Xian, co-founder and group CEO of CapBay, said: “Conventional credit frameworks often overlook technology companies because their assets are intellectual. The MD Technology Financing Programme addresses this by basing credit decisions on business fundamentals and growth trajectory rather than physical collateral, which aligns with how technology companies are actually structured.
“We are proud to partner with MDEC to welcome early-stage startups from just six months of incorporation, offering non-dilutive debt financing at a stage where equity is often their only option, while broadening the financing options available to Malaysia’s technology sector.”
Anuar Fariz Fadzil, CEO of MDEC, said access to growth capital remains a critical enabler for technology companies to innovate, scale and compete in an increasingly dynamic digital economy through the MD Technology Financing Programme.
“Access to financing is often a key catalyst in enabling innovative companies to commercialise solutions, expand into new markets and accelerate their growth journeys. Through our collaboration with companies such as CapBay, we aim to bridge financing gaps and enable high-potential technology companies to access the resources needed to scale sustainably and compete regionally and globally,” he said.
“This partnership also demonstrates how strategic public-private collaboration can accelerate innovation and strengthen Malaysia’s digital ecosystem. Together, such partnerships enable more Malaysian companies to access growth opportunities, adopt emerging technologies such as AI, build globally competitive capabilities and contribute meaningfully towards the nation’s AI Nation 2030 aspirations while driving long-term economic value creation.”
Eligible companies are encouraged to apply through CapBay’s digital platform. For further information on the eligibility criteria and application process, visit: https://www.mdec.my/md-tech-financing
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