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Malaysian Tech Lender Stung by Portfolio Firm's "Suspicious Transactions"
State-owned financing agency MDV sees losses after unnamed recipient fails to repay debt diverted to a separate account instead of the intended project
Sana Rizwan
November 28, 2023
• Malaysia's state-owned tech financing agency MDV sank into the red after an unnamed portfolio firm allegedly diverted its loan for fraud.
• MDV is pursuing legal action but saw income decline, which it attributed to the unpaid debt loss from "Company 10."
• MDV now plans to diversify into other digital assets to offset the impact.
Malaysia Debt Ventures faces setback due to allegations of fraud: A financial unravelling.
Malaysia Debt Ventures (MDV), the Malaysian government’s financing arm for technology companies and projects, sank into the red in 2022 due to an unnamed portfolio company failing to repay debt tied to alleged fraud.
In its annual audit presentation last week, MDV told the national Auditor-General that “Company 10” had channelled an undisclosed loan amount to a separate account instead of the intended project account per its financing agreement.
MDV has filed a police report and pursued legal action against Company 10 for nonpayment.
Financial turmoil: MDV's struggle amidst fraud allegations
Established in 2002, the state-owned MDV provides financing facilities, including equity investments, to nurture Malaysia’s technology sector.
While MDV has been profitable since 2019, the auditor flagged a year-on-year decline in operational income derived from its financing and investments.
The agency attributed this drop to Company 10's unpaid debt loss.
MDV outlined plans to diversify into other digital assets. It will consider taking direct equity stakes in tech firms and investing through peer-to-peer platforms and initial digital token offerings.
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