CapBay, MDEC launch RM200M financing pool for Malaysia's tech firms
What's the deal? CapBay and the Malaysia Digital Economy Corporation (MDEC) have opened a RM200 million financing pool for companies holding Malaysia Digital status. Under the MD Technology Financing Programme, eligible firms can borrow up to RM3 million with repayment periods of up to 60 months.
The terms: Rates start from 6% per annum and include a six-month repayment grace period. CapBay will assess applications using a credit model based on business fundamentals and growth potential.
Who qualifies? The programme covers established technology companies alongside early-stage and pre-profit startups that have operated for at least six months. It targets asset-light businesses that often struggle to secure conventional financing because they lack physical collateral.
Why now? The programme supports Malaysia's AI Nation 2030 ambitions, aiming to close financing gaps for high-potential firms.
"Access to financing is often a key catalyst in enabling innovative companies to commercialise solutions, expand into new markets and accelerate their growth journeys," said MDEC chief executive officer Anuar Fariz Fadzil. He added the collaboration aims to help companies "scale sustainably and compete regionally and globally."
What's the endgame? CapBay is positioning the pool as a non-dilutive alternative for young firms. "We are proud to partner with MDEC to welcome early-stage start-ups from just six months of incorporation, offering non-dilutive debt financing at a stage where equity is often their only option," said Ang Xing Xian, co-founder and group CEO of CapBay.
The signal: CapBay has facilitated more than RM5.6 billion in financing for over 2,600 enterprises since 2016. Extending debt to pre-profit startups marks a widening of credit access for a sector traditionally underserved by collateral-based lending. Eligible companies can apply through CapBay's digital platform.
Read more: Fintech News Malaysia
Image credit: Koen Muurling
