By Danial Dzulkifly
SHAH ALAM, March 10 — The Selangor Information Technology and Digital Economy Corporation (Sidec) has taken a bold step into deep technology, becoming the first state agency in Malaysia to establish a dedicated fund for hardware startups.
With an initial allocation of RM100 million, Sidec aims to support at least 10 companies, each with the potential to reach a valuation of RM100 million or more.
Sidec chief executive officer Yong Kai Ping said plans are in place to expand the fund to between RM200 million and RM300 million, reflecting the agency’s commitment to strengthening Malaysia’s semiconductor and artificial intelligence (AI) ecosystem.
He said hardware plays a crucial role in AI development, particularly as Malaysia pivots towards semiconductors and data centres, sectors that are increasingly vital to the global economy.
“The global venture capital market directs significant investments into AI-related hardware, especially amid ongoing trade tensions between China and the United States.
“Malaysia, positioned between these two economic giants, stands to benefit tremendously,” he said in an interview with Media Selangor.
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While Malaysia’s startup ecosystem has traditionally focused on software, Yong said the rising demand for hardware innovations, particularly AI-integrated solutions, presents a largely untapped opportunity.
The fund will prioritise semiconductor-related ventures and smart technology applications, including AI-driven solutions across various industries.
Yong also revealed Sidec is exploring partnerships with regional and international venture capital firms to accelerate the growth of its portfolio companies.
This initiative aligns with Selangor’s broader strategy to deepen its involvement in integrated circuit design and drive growth in the aerospace and aviation sectors.
Sidec has long been at the forefront of fostering global competitiveness among local startups, providing them with platforms to showcase their innovations and explore international business opportunities.
