Key Takeaways
- • PNSB Innovation Ventures Sdn Bhd (PIV), the venture capital and private equity arm of Permodalan Negeri Selangor Bhd (PNSB), is pursuing two technology funds with a combined target size of RM150 million, according to The Edge Malaysia.
- • The Tanjung Innovation Fund (TIF) is being prepared with a RM50 million target, with PIV committing RM5 million as an anchor and the remaining RM45 million to be raised from other investors.
- • TIF will be co-managed with The Hive Southeast Asia Sdn Bhd and AxeHedge Inc. under a co-general partner model, with cheques of up to RM10 million per company from seed to Series A and first investments expected in the first half of 2027.
- • The Ehsan Semiconductor Fund (ESF), targeting RM100 million, has raised more than half its target and has invested between RM1 million and RM20 million in SkyeChip Bhd and GreatAsic Technology Sdn Bhd.
- • PNSB's venture push follows a shift from a self-funded model after PIV did not deploy its full RM30 million allocation, pivoting to co-GP fund partnerships to expand capital while retaining investment influence.
Summary
PIV, Malaysia's first state-backed venture capital management corporation, is bringing state and private capital together to help start-ups grow and to support Selangor's ambition to become a high-tech hub. According to a Digital Edge interview with PNSB CEO Raja Ahmad Shahrir Iskandar Raja Salim, the company is pursuing two technology funds with a combined target of RM150 million, published in The Edge Malaysia Weekly.
The Tanjung Innovation Fund (TIF) targets RM50 million and will back start-ups and established businesses seeking growth through technology adoption. PIV will contribute RM5 million, with the balance to come from other investors. The first close has not yet been finalised, and fundraising will continue until the target is reached. TIF is jointly managed by PIV, The Hive Southeast Asia Sdn Bhd and AxeHedge Inc., combining The Hive's venture and technology-building experience with AxeHedge's expertise in growing traditional businesses. Investments are expected in the first half of 2027.
The Ehsan Semiconductor Fund (ESF) targets RM100 million to support chip design companies, hire engineers and expand operations. It is managed by Ehsan Kapital PLT, whose founding partners are PIV, the Selangor Information Technology and Digital Economy Corporation (Sidec) and Artem Ventures Sdn Bhd. More than half of the target has been raised, per Raja Ahmad, and ESF has invested between RM1 million and RM20 million in SkyeChip Bhd (KL:SKYECHIP) and GreatAsic Technology Sdn Bhd. Its mandate is to take minority stakes in seven to 10 companies.
PNSB, founded in 1990 and known for affordable public housing and infrastructure through joint ventures with private developers, entered venture capital to diversify away from its property-heavy business. PIV was set up in 2024 and is registered with the Securities Commission Malaysia, starting with RM30 million from its parent. Its dual mandate is to generate financial returns and to build Selangor's technology ownership and IP pipeline. Raja Ahmad said investments must have a commercial case and a strategic rationale for Selangor. An early RM12 million Series A in iMotorbike, led by Gobi Partners and Ondine Capital, was a test of the approach, but competing capital needs in the property division meant PIV never deployed its full allocation. That led to the co-GP model.
PNSB also plans to connect investees with state agencies as potential customers, though Asyrul Ridzwan, head of investment at PNSB, said any resulting business remains subject to agency approval and tender processes, and PNSB backing does not allow companies to bypass those requirements.
The Tanjung Innovation Fund (TIF) targets RM50 million and will back start-ups and established businesses seeking growth through technology adoption. PIV will contribute RM5 million, with the balance to come from other investors. The first close has not yet been finalised, and fundraising will continue until the target is reached. TIF is jointly managed by PIV, The Hive Southeast Asia Sdn Bhd and AxeHedge Inc., combining The Hive's venture and technology-building experience with AxeHedge's expertise in growing traditional businesses. Investments are expected in the first half of 2027.
The Ehsan Semiconductor Fund (ESF) targets RM100 million to support chip design companies, hire engineers and expand operations. It is managed by Ehsan Kapital PLT, whose founding partners are PIV, the Selangor Information Technology and Digital Economy Corporation (Sidec) and Artem Ventures Sdn Bhd. More than half of the target has been raised, per Raja Ahmad, and ESF has invested between RM1 million and RM20 million in SkyeChip Bhd (KL:SKYECHIP) and GreatAsic Technology Sdn Bhd. Its mandate is to take minority stakes in seven to 10 companies.
PNSB, founded in 1990 and known for affordable public housing and infrastructure through joint ventures with private developers, entered venture capital to diversify away from its property-heavy business. PIV was set up in 2024 and is registered with the Securities Commission Malaysia, starting with RM30 million from its parent. Its dual mandate is to generate financial returns and to build Selangor's technology ownership and IP pipeline. Raja Ahmad said investments must have a commercial case and a strategic rationale for Selangor. An early RM12 million Series A in iMotorbike, led by Gobi Partners and Ondine Capital, was a test of the approach, but competing capital needs in the property division meant PIV never deployed its full allocation. That led to the co-GP model.
PNSB also plans to connect investees with state agencies as potential customers, though Asyrul Ridzwan, head of investment at PNSB, said any resulting business remains subject to agency approval and tender processes, and PNSB backing does not allow companies to bypass those requirements.
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