Borneo Digital Capital Fund PLT has introduced a RM100 million private equity fund aimed at advancing digital infrastructure and smart city initiatives in Sarawak, supporting the state’s goal of reaching a gross domestic product (GDP) of RM282 billion by 2030. The fund was officially launched last Friday and will be managed by licensed private equity firm Aureus Strategies PE Sdn Bhd.
The investment focus is divided into three main sectors: digital infrastructure, smart city and artificial intelligence (AI) solutions, and digital enablement platforms encompassing renewable energy, utility systems, and electric mobility (eMobility). The fund is designed to assist eligible technology companies and project owners in financing technology deployment through various financial models, including subscription services, service contracts, and revenue-sharing agreements.
Borneo Digital Capital emphasized that its priority will be projects that offer stable cash flows and opportunities for long-term capital appreciation. Many of these projects will be supported by contractual cash flows underpinned by the Sarawak state government, providing additional financial security.
At the launch event, Borneo Digital Capital also entered into a memorandum of understanding (MoU) with Borneo Development Capital I PLT to explore co-funding opportunities for qualifying turnkey design-and-build projects, indicating a collaborative approach to accelerating development in the region.
Melvin Ong, general partner of Borneo Digital Capital Fund, highlighted the initiative’s role in addressing the financing challenges faced by businesses adopting new technologies. Ong noted that the fund aims to overcome barriers where upfront costs can hinder the realization of promising technology projects. “When customers need technology but cannot absorb the entire upfront cost, a good idea remains just an idea,” he said, emphasizing the fund’s dual strength in combining technological know-how with financial expertise.
Ong further pointed out that Sarawak is gaining traction as an investment destination for digital infrastructure and renewable energy, benefiting from the state’s abundant natural resources and its strategic potential for development.
Structured as a closed-end private equity vehicle, the Borneo Digital Capital Fund is targeted at sophisticated investors, with a minimum commitment set at RM250,000. The fund’s establishment is aligned with broader efforts to digitalize Sarawak’s economy and to support sustainable growth in the region’s emerging technology sectors.