Malaysian FinTech company Bay Smart Capital Ventures Sdn Bhd (CapBay) has partnered with the Malaysia Digital Economy Corporation (MDEC) to expand access to growth financing for Malaysia Digital (MD) Status companies through the MD Technology Financing Programme.
The initiative, backed by a RM200 million financing pool, aims to support technology companies in scaling their operations, accelerating innovation and strengthening Malaysia’s digital economy ecosystem.
Designed to address funding challenges faced by technology businesses with asset-light models, the programme provides eligible companies with access to up to RM3 million in financing, including early-stage and pre-profit start-ups that may struggle to secure conventional funding due to limited physical assets.
Through the programme, companies can benefit from financing rates starting from 6% per annum, repayment tenures of up to 60 months, and a six-month repayment grace period to provide businesses with greater runway to expand before beginning repayments.
Supporting Malaysia’s Growing Digital Economy
The collaboration combines MDEC’s Malaysia Digital ecosystem with CapBay’s expertise in alternative financing solutions to create more accessible funding pathways for technology companies.
Eligible MD Status companies, including start-ups incorporated for as little as six months, can apply through a fully digital process. The programme is open to both emerging technology ventures and established companies seeking capital to support business expansion, technology adoption and market growth.
Unlike traditional financing approaches that often rely heavily on physical collateral, the programme uses CapBay’s AI-powered credit assessment model to evaluate companies based on business fundamentals, growth potential and operational performance.
This approach is designed to support technology companies whose key assets often lie in intellectual property, specialised talent and proprietary technology systems.
Since 2016, CapBay has facilitated more than RM5.6 billion in financing for over 2,600 enterprises, supporting businesses across various sectors through its supply chain financing and Peer-to-Peer (P2P) financing solutions.
Enabling Start-ups to Scale Without Equity Dilution
Ang Xing Xian, Co-Founder and Group CEO of CapBay, said the programme aims to provide technology companies with alternative financing options that better reflect the way modern businesses operate.
“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 tech companies are actually structured,” he said.
He added that the initiative will provide early-stage start-ups with access to non-dilutive debt financing at a stage where equity funding is often their primary option.
“We are proud to partner with MDEC to welcome early-stage start-ups from just six months of incorporation, broadening the financing options available to Malaysia’s technology sector,” Ang said.
Strengthening Malaysia’s AI and Innovation Ambitions
MDEC CEO Anuar Fariz Fadzil highlighted that access to growth capital remains essential for technology companies seeking to commercialise solutions, expand into new markets and compete globally.
“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,” he said.
The partnership also supports Malaysia’s broader digital transformation goals, including the AI Nation 2030 vision, by enabling more companies to adopt emerging technologies, build competitive capabilities and contribute to long-term economic growth.
“This partnership 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 and contribute meaningfully towards the nation’s AI Nation 2030 aspirations,” Anuar added.
Helping Malaysian Tech Companies Access Growth Capital
The MD Technology Financing Programme is now open for applications from eligible Malaysia Digital (MD) Status companies. Interested companies can apply through CapBay’s digital platform and access further information on eligibility requirements and the application process via MDEC’s official channels, visit MD Technology Financing Programme | MDEC.
