Digital Penang and OSK Ventures partner to strengthen financing access for AI, hardtech and deeptech startups in Penang

• Partnership aims to improve access to venture funding for AI, hardtech and deeptech startups
• Collaboration strengthens Penang’s innovation ecosystem by connecting founders with institutional capital

Digital Penang and OSK Ventures International Berhad (OSK Ventures) have announced a strategic collaboration through a one-year memorandum of understanding to strengthen access to growth capital for startups and small and medium enterprises (SMEs) in Penang, with a focus on AI, hardtech and deeptech.

The collaboration aims to address one of the key structural challenges facing innovation-driven companies in Penang—limited access to growth-stage financing. Businesses operating in AI, hardtech and deeptech typically face longer development cycles, higher capital requirements and more complex commercialisation pathways, making traditional financing models less suitable.

Through the partnership, Digital Penang and OSK Ventures will strengthen connections between high-potential enterprises and institutional capital providers, helping build a stronger pipeline of investment-ready companies while improving access to venture debt and equity financing.

The one-year collaboration also reflects broader efforts to improve capital efficiency across the ecosystem, supporting companies as they move from early-stage validation to scalable growth and contributing to Penang’s position as a hub for advanced technology and innovation.

The collaboration will focus on supporting startups and SMEs in high-growth, innovation-driven sectors, particularly AI, advanced manufacturing, engineering-led solutions and deeptech. Through enhanced access to venture financing solutions, including venture debt and equity funding, participating companies will be better positioned to scale operations, accelerate commercialisation, strengthen their market competitiveness and improve their investment readiness to engage institutional investors.

Under the collaboration, Digital Penang will leverage its role as the state’s ecosystem enabler to strengthen engagement with startups and SMEs across Penang, while OSK Ventures will contribute its expertise in venture financing and capital deployment to support businesses with scalable, innovation-driven models.

By aligning ecosystem development with institutional investment capabilities, the collaboration creates a more integrated approach to supporting business growth, particularly in sectors critical to Penang’s next phase of economic transformation.

Ng Kwang Ming, CEO of Digital Penang, said: “We are seeing a growing pipeline of companies in Penang developing highly specialised solutions across AI, hardtech and deeptech. However, these sectors often require long-term and structured capital to support extended development and commercialisation cycles.

“Through this collaboration, we aim to strengthen the ecosystem by improving access to the right forms of financing while enhancing the investment readiness of companies to scale more effectively.”

Zairil Khir Johari, Penang State EXCO for Infrastructure, Transport and Digital, said: “As Penang positions itself at the forefront of advanced technology and innovation, strengthening access to strategic capital becomes increasingly critical.

“This collaboration underscores the state’s commitment to supporting the growth of AI, hardtech and deeptech industries, ensuring that high-potential enterprises have the necessary foundation to scale and compete at both the regional and global levels.”

Meanwhile, Amelia Ong, CEO of OSK Ventures, said: “As technology sectors continue to evolve rapidly, access to strategic and patient capital will become increasingly important in determining which companies can scale successfully.

“We believe Penang has a strong foundation for nurturing the next generation of innovation-led businesses, and this collaboration reflects our commitment to supporting founders and SMEs developing transformative solutions for the future.”

By combining Digital Penang’s ecosystem network with OSK Ventures’ investment expertise, the collaboration aims to improve access to strategic capital for startups and SMEs developing next-generation technologies while reinforcing Penang’s position as a leading hub for advanced technology, innovation and high-value industries.