LANGKAWI – The Science, Technology and Innovation Ministry (Mosti) has called for finance and investment bodies to open their doors to funding space-related industries in Malaysia.
Mosti Deputy Minister Datuk Arthur Joseph Kurup said the call was made due to limited government financing for the sectors as of now, and other funding mechanisms such as venture capital, public-private partnerships, competitive financing instruments, and crowdfunding will all be helpful in realising the nation’s space aspirations.
“These financial mechanisms can be used to catalyse the local space industry. In 2021 alone, records have shown that the public and private markets put US$10 billion (RM4.62 billion) of fresh capital to work in space companies.
“The growing interest to pursue spin-offs, partnerships, and private-investment rounds is what fuels the interest of the public and private markets to fund these companies’ product roadmap, thus accelerating innovation and providing more competition among companies,” he said in his keynote address at the Langkawi International Space Forum 2023 at the Mahsuri International Exhibition Centre here today.
The forum is in conjunction with the Langkawi International Maritime and Aerospace Exhibition 2023.
Arthur said reports have shown that the global space economy recorded a tremendous growth of approximately US$447 billion, up from US$280 billion in 2010, and is expected to grow to US$1 trillion by 2030.
“Therefore, it is time for finance and investment bodies to consider space as the country’s new economic source. Financial innovation is a must for the space industry.
“New funding mechanisms such as competitive grants, debt financing, risk-sharing mechanisms and tax incentives can attract local and foreign players to contribute or establish businesses here,” he said.
Commenting on the Space Industry Strategic Plan 2030 launched yesterday, Arthur said the plan outlines a few initiatives to be implemented with the goal of creating a sustainable funding and investment ecosystem to promote space commercialisation.
He also urged insurance companies and lawmakers to catch up with the development to ensure the new era of space innovations reaches its full potential while stressing the need for a legal and regulatory framework for the governance of space for safety, political and defence reasons.
“The legal framework will also make investors and financial institutions comfortable with lending and get insurers comfortable insuring. It will help reduce the risk of participation.
“The recently enacted Malaysian Space Board Act, meanwhile, is aimed at establishing regulatory guidelines for conducting space-related activities in the country,” he said. – Bernama, May 25, 2023
