VentureTECH has invested RM100 mln to support high-tech businesses

By Norsyafawati Ab Wahab

CYBERJAYA, June 4 (Bernama) -- VentureTECH Sdn Bhd, an investment company for high value-added and emerging industries, has invested about RM100 million in 13 investee companies since its inception a decade ago.

Its managing director, Dr Norida Abd Rahman said as an investor with deep roots in quality impact investment, VentureTECH places great emphasis in generating both commercial and societal returns.

"Presently, we have invested in 13 investee companies, who are technology leaders in niche sub-sectors, and we are proud of some of these companies for being able to penetrate some of the most challenging markets abroad," she told Bernama.

This, she said included the recent RM10 million investment in CMC Group Sdn Bhd to support the next stage of growth for the country’s leading engineering and construction service provider in the public transportation, info-communication, and power and energy segments.

"We have also invested RM20 million in Ain Medicare Sdn Bhd to further elevate its capacity to boost its export in the region, as well as meeting more local demand for critical dialysis products in Malaysia," she added.

Norida said as an investment company mandated by the government through the Economic Planning Unit, VentureTECH's growth was largely driven by the business performance of its investee companies. 

"While we are cautious on the macro front, we are overall optimistic on the growth trajectories of our investee companies moving forward. 

"Reasons for our optimism vary from specific market-moving events such as the announcement of the East Coast Rail Link revival that allows our investee companies the opportunity to participate in future tenders, to pervasive secular forces that will lift the entire industry top line growth in the long term such as increase in the government’s expenditure for healthcare," she added.

At the same time, Norida said VentureTECH has seen substantial growth since its inception, especially in the past three years.

"Portfolio aggregate revenue in 2018 stands at RM317 million, up from RM33 million in 2016, while total portfolio companies grew from three in 2016 to twelve in the current calendar year.

"Total capital invested is about RM100 million as at 2019 compared with RM28 million as at 2016," she added.

Norida said the investments made reflects VentureTECH’s journey from supporting start-ups in the bio-technology industry to current focus of nurturing high-growth entrepreneur-driven companies in three expanded core areas, namely bio-based, emerging and green industries.

"The companies that we have invested in and are continuing to look out for are those pioneering and  innovative technology-driven companies with clear long-term goals and aspiration.

"Their skills and technologies are typically very versatile and somewhat industry agnostic, which allows the different companies in our portfolio to collaborate to create synergistic strengths and opportunity in cross-over technology or multi-sector applications to further boost their growth," she added.

-- BERNAMA