Establishment of National Fund of Funds to be completed by October 2024 — Amir Hamzah

KUALA LUMPUR (July 22): The establishment of the National Fund of Funds (NFOF) is now in the final phase of implementation and is expected to be fully completed by October 2024, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

He said the NFOF will operate with an initial allocation of assets under management of RM1 billion, as announced at the KL20 summit in April.

“Khazanah Nasional Bhd will contribute the bulk of the funding, while the rest will come from existing funds in Malaysia Venture Capital Management Bhd and Penjana Kapital Sdn Bhd,” he said in Dewan Negara on Monday, responding to a question from Senator Datuk Dr Mohd Hatta Md Ramli on the status and explanation regarding NFOF from a sustainability perspective, and the benefits that industry players will receive among Bumiputeras and non-Bumiputeras.

Amir Hamzah explained that the NFOF will contribute to economic development, gross domestic product (GDP) and local talent development, which will further stimulate innovation and progress.

The NFOF is also expected to contribute to an increase in the penetration of Malaysian venture capital funds (VCs) from US$332 million (approximately RM1.55 billion) in 2023 to US$1.4 billion (approximately RM6.55 billion) in 2030, as proposed in the Malaysia Venture Capital Roadmap 2024-2030.

“The NFOF investments targeting local fund managers will attract domestic direct investment (FDI).

“It will also be a limited partner for foreign fund managers interested in starting operations in Malaysia, provided they add value to the local ecosystem and allocate a portion of the funds to local start-ups,” he added.

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