MALAYSIA DEBT VENTURES BERHAD (MDV)

Introduction

MDV is a Premier Innovative Financier and Development Facilitator for the

Information and Communication (ICT), Biotechnology, Green Technology and other
emerging technology sectors in Malaysia. Incorporated on April 23, 2002 as a wholly-
owned subsidiary of the minister of Finance Inc., MDV has been entrusted to provide
financing for projects in these sectors at the point of commercialization. With a fund size
of RM4.1 billion, MDV offers innovative financing solutions and nurturing initiatives to
spur the growth of these sectors based on clients needs. MDV offers conventional and
Islamic financing facilities.

Background History

The Information and Communications Technology (ICT) industry in Malaysia

began its nascent growth with the launch of the Multimedia Super Corridor in 1997 the
countrys designated ICT zone, designed to leapfrog Malaysia into the information and
knowledge economy.

A funding infrastructure was developed to support the industrys research,

development and commercialization activities. Growth and expansion stage ICT
companies, however, found difficulty in accessing financing from financial institutions or
fulfilling their credit criteria.

To fill this funding gap, MDV was established, to provide Project Financing
facilities to ICT companies to finance procurement of the necessary project inputs, capital
expenditure and working capital. Through MDVs Partner Banks, MDV provides trade and
guarantee facilities as required by the project or contract. A second key role is to function
as development facilitators of key identified technology sectors.
 MDVs first fund was sourced from The Japanese Bank of International
Cooperation (JBIC), through the Ministry of Finance. The first fund totalled RM1.6
billion, for the purpose of providing project financing facilities to ICT companies. In 2007,
MOF approved RM2.5 billion for MDVs Second Fund. For the first tranche, MDV issued
an RM1.5 billion Islamic Medium Term Note (iMTN) to finance technology projects. In
conjunction with the Second Fund, MDV expanded its focus areas to include
Biotechnology.

The Second Fund was raised via the Islamic Capital Markets to among others
expand the depth and breadth of Islamic financing programmes and to support the
Governments and MOFs objectives of positioning Malaysia as an Islamic Financial
Center. As such, MDV now offers Islamic and Syariah Compliant project financing
facilities, based on Murabahah and Commodity Murabahah.

On 3rd May 2011, MDV has officially launched our new Green Technology
Financing Programme, marking MDVs third focus area.
Economy Analysis

The study of forces that determine the distribution of scarce resources. Economic
analysis provides insight into how markets operate, and offers methods for attempting to
predict future market behavior in response to events, trends, and cycles. Economic analysis
is also used by governments to determine tax rates and evaluate the financial health of the
nation or state.

Economy Impact/Policy Implication

Conclusion