Business Growth Fund (BGF)

Business Growth Fund (BGF)

Invests in growth-stage Malaysian technology companies through convertible preference equity to support expansion capital needs.

The Business Growth Fund (BGF) is an equity investment programme administered by the Malaysian Technology Development Corporation (MTDC), a government-linked technology investment company. BGF targets technology-based Malaysian companies at the growth stage — defined as companies that have already surpassed RM 1.5 million in annual revenue and are not operating at a loss. The maximum investment per company is RM 10 million, delivered via Redeemable Convertible Preference Shares (RCPS) over a five-year funding period. Priority sectors align with MTDC's six strategic clusters: Electronics and Semiconductors, Fourth Industrial Revolution (4IR) technologies, Healthcare and Life Sciences, Food Security, Green Economy, and Aerospace and Mobility.

To be eligible, a company must be incorporated under Malaysia's Companies Act 2016, be a technology-based enterprise, and have a minimum of 51 percent Malaysian ownership. BGF focuses on companies seeking to expand production capacity, deepen market penetration, and strengthen corporate governance — the three pillars MTDC emphasises in its growth-stage investment thesis. Applications are submitted exclusively through the MTDC pitching portal at pitching.mtdc.com.my; there is no specific annual deadline, as the programme operates on a continuous rolling basis.

BGF is an equity instrument, not a grant. MTDC takes a preference share position in the investee company and exits at or before the end of the five-year period through redemption, conversion, or a secondary transaction. Founders should expect MTDC involvement in governance, reporting cadence, and milestone tracking consistent with institutional equity investment. Successful BGF companies have used the capital for factory expansion, production automation, export market entry, and international certification. Contact for programme queries is commsadmin@mtdc.com.my or +603-2172 6000.