Nora Mahpar
KUALA LUMPUR: Malaysia Venture Capital Management Bhd (MAVCAP) has achieved a significant milestone with the signing of the Memorandum of Understanding (MoU) with China Construction Bank Corporation (CCB) to set up the ASEAN Green Technology Fund worth US $200 million (RM782 million).
MAVCAP's chief executive officer Jamaludin Bujang said that this is the first of such fund in ASEAN which will focus on the final stages of growth and financing for emerging green innovation and technology projects in Malaysia and Southeast Asia.
"Currently, we have identified several high impact projects and further discussions are underway.
"For these funds, we will start with one or two projects in Malaysia and then look at the potential in other ASEAN countries," he said after the MoU signing in Hong Kong recently.
The MoU was signed by MAVCAP chairman Datuk Noharuddin Nordin while CCB was represented by the head of investment banking division Simon Lee and portfolio management chief Tony Hung.
Jamaludin said through the fund, it is hoped that more investments and expansions in the renewable energy sector can be identified while providing support for the development of green technology ecosystems in the region.
"We are aiming to spend about US$600 million in funding over the next two years. We see a return on investment of between 10 and 15 percent," he said.
He said Malaysia has great potential in the green technology sector as it is supported by government initiatives that encourage local companies to venture into the sector.
"Malaysia has a good structure for green technology and it helps us as an investor.
"Basically, the idea to set up this fund started over two years ago when we had a discussion with the Ministry of Energy Green Technology and Water (KeTTHA) and we want it to be implemented more widely (outside Malaysia)," he said.
Jamaludin said, about US $7.8 trillion worth of investments are needed in the renewable energy sector globally.
"Most demand comes from ASEAN countries, as most remote areas are still facing green technology constraints and require investments in mini hydro solar, so we think this is the right time to launch this fund," he said.