Venture capitalist aims to 'capture tsunami' with RM1b for M'sian start-ups

 

Lai Pin Yong, the co-founder and chairperson of Blue Chip Venture Capital, plans to invest in more than 10 start-ups related to the semiconductor industry, with the aim of advancing Malaysia in this sector.

“It is important now to capture this tsunami and it should stop in Malaysia, not elsewhere. We should not miss the opportunity,” he told Nikkei Asia in an interview.

Lai, who believes that Malaysia is still well positioned to stamp its mark in this sector, said his firm, founded last year, is targeting to raise RM1 billion through institutional investors and the response has been “encouraging”.

The businessperson, who said Malaysia “ought to think differently” to establish a robust semiconductor industry, added: “We have about US$200 million (RM947.9 million) for now. It is a small fund.

“But to transform the whole industry, we need more VCs, more big guys to participate. For me, Blue Chip VC can kick off the initiative as a start so that many people will join.”

Lim also pointed out that Malaysia and Singapore should work together and leverage each other’s strengths to attract more talent and investment.

While Singapore can attract the best artificial intelligence talents and be the “centre”, he said, Malaysia can benefit as a “base” for development.

With Singapore’s access to funds and Malaysia’s abundant land, Lai proposed that companies house “20 percent of (their) engineers in Singapore and 80 percent in Malaysia” to capitalise on the respective advantages of the two neighbouring countries.

‘Surprise investment destination’

Lai, a former Intel executive, co-founded the firm with Tim Chen, who is the chief executive. The latter had also served as the CEO of Microsoft in China.

Blue Chip’s senior advisers include Hong Kong-based Malaysian banker Andrew Sheng, who chaired the Hong Kong Securities and Futures Commission.

In March, the Financial Times reported that “neutral” Malaysia is emerging as the surprise winner from the US and China chip wars.

“The broadening US curbs on Chinese technology, especially for chipmaking, are a key reason for neutral Malaysia’s appeal, say industry groups.

“The US is jostling with China for global technology supremacy and has enlisted support from allies in Europe and Asia as it restricts sales of the most advanced chips and manufacturing equipment to its geopolitical rival,” it added.

Due to this, the Financial Times said companies are looking for a “backup to China to protect themselves from geopolitical disruptions.”

In the strategy, known as “China plus one”, it said: “Malaysia is becoming a surprise investment destination.”- Mkini