MBSB commits RM4bil to Malaysia's high-growth industries

PETALING JAYA: MBSB Bank is ramping up its support for Malaysia's high-growth, high-value (HGHV) industries, committing RM4 billion across four strategic sectors as it positions itself to play a larger role in financing the country's industrial transformation. The bank has earmarked RM1 billion each for the rail, aerospace, automotive and renewable energy sectors, while mobilising more than RM4.7 billion in sustainable and transition financing to date. MBSB group chairman Datuk Wan Kamaruzaman Wan Ahmad said demand for financing under the bank's HGHV initiative has met expectations, with the lender prepared to increase its allocation if the pipeline of quality projects continues to grow. "We are prepared to consider a larger allocation if demand continues to grow and proposals meet the required financing and eligibility criteria," he told Business Times on the sidelines of the TechnoMART Malaysia: High Tech Financing 2026 event. The financing initiative is part of MBSB's strategy to diversify beyond its traditional strength in property financing by supporting companies operating in advanced manufacturing and technology-driven industries. Kamaruzaman said the bank's financing focus extends beyond the four priority sectors to companies involved in electrical and electronics, semiconductors, digital technology, artificial intelligence and green technology. Financing is available for machinery and equipment purchases, working capital, capacity expansion and technology commercialisation, helping businesses move from research and development into commercial production. He said the strategy is aligned with the government's aspirations under the 13th Malaysia Plan and the New Industrial Master Plan (NIMP) 2030, both of which aim to strengthen domestic industrial capabilities, encourage technology adoption and improve access to financing for innovation. "Our priority is to provide practical financing that helps Malaysian companies invest, scale and compete in the industries shaping the country's next phase of growth," he said. To support these ambitions, MBSB has established partnerships across key industries. In the rail sector, the bank has allocated up to RM1 billion through its collaboration with the Malaysia Rail Industry Corporation to support small and medium enterprises, technology providers and solution developers. For renewable energy, another RM1 billion has been set aside to finance solar projects and accelerate Malaysia's clean energy transition. The bank has also partnered with Weststar Group, providing RM1.3 billion in financing to support the company's aviation expansion plans. More recently, MBSB signed a memorandum of understanding with the Northern Corridor Implementation Authority (NCIA), backed by a RM1 billion financing line for eligible businesses, investors and strategic projects across the Northern Corridor Economic Region (NCER). The financing will help companies establish new operations, expand production capacity and participate in larger domestic and regional supply chains. Kamaruzaman said MBSB is working closely with industry bodies and development agencies to better understand sector-specific financing needs and identify credible investment opportunities. He said many high-technology companies require significant capital for specialised machinery, automation, commercialisation and business expansion, creating opportunities for banks to play a more active role in supporting industrial development. MBSB is also leveraging its subsidiary, Malaysian Industrial Development Finance Bhd (MIDF), to create a more integrated financing ecosystem. MIDF continues to administer government-backed financing schemes, including the Soft Financing Scheme for Automation and Modernisation and the Soft Financing Scheme for Digital and Technology. Meanwhile, MBSB Bank complements these offerings through Shariah-compliant commercial financing, transaction banking and deposit solutions, allowing companies to continue their banking relationship as they grow beyond the development stage. Kamaruzaman said businesses receiving development financing through MIDF can also channel their funds into MBSB Bank accounts to manage operating cash flow, payments and deposits within the same group. Speaking at the event, Kamaruzaman said Malaysia must continue investing in innovation despite growing global uncertainties driven by geopolitical tensions, fragmented trade policies and rapid advances in artificial intelligence (AI). He noted that AI is becoming one of the world's defining technologies, with global investment expected to reach US$2.53 trillion this year. He also pointed to the strong debut of integrated circuit design company SkyeChip, whose initial public offering gained more than 150 per cent from its offer price after being oversubscribed 95 times. However, he stressed that many promising technologies fail to reach commercialisation because of limited access to financing and industry support. "Many technologies developed work perfectly in the laboratory and still never reach the market. Not because the innovation was wrong, but because of the lack of infrastructure to turn it into a business. "That gap does not close on the strength of better ideas. It closes with capital, partnerships, and with institutions willing to understand what a technology company needs," he said. Kamaruzaman said initiatives such as TechnoMART Malaysia provide an important platform to connect innovators, investors, financial institutions and government agencies. He said this helps accelerate commercialisation and attract greater private sector investment into Malaysia's technology ecosystem. He added that backing innovation is ultimately about supporting Malaysia's long-term economic growth, with stronger local companies expected to play a larger role in global supply chains as the country advances towards a high-income, innovation-driven economy. © New Straits Times Press (M) Bhd