KUALA LUMPUR, The establishment of the National Fund-of-Funds (NFOF) is now in the final stage of implementation and is expected to be fully completed by October 2024, Finance Minister II Datuk Seri Amir Hamzah Azizan said. He said the NFOF will operate with an initial allocation or assets under management of RM1 billion as announced at the KL20 Summit in April. "Khazanah Nasional Bhd will contribute to the majority of the funding, while the rest is from existing funds in Malaysia Venture Capital Management Bhd and Penjana Kapital Sdn Bhd," he said at the Dewan Negara today in reply to a question raised by Senator Datuk Dr Mohd Hatta Md Ramli on the status and explanation regarding NFOF from a sustainability perspective and the benefits to be received by players in the industry among bumiputeras and non-bumiputeras. Amir Hamzah explained that the NFOF will contribute to economic development, gross domestic product (GDP) and local talent development, which will further drive innovation and progress. The N FOF is also expected to contribute to an increase in the penetration rate of Malaysian venture capitals (VCs) from US$332 million (US$1=RM4.68) in 2023 to US$1.4 billion by 2030, as suggested in the Malaysia Venture Capital Roadmap 2024-2030. "The NFOF investments that focus on local fund managers will attract domestic direct investment (DDI). "It will also be a limited partner to foreign fund managers interested in starting operations in Malaysia, on the condition that they add value to the local ecosystem and allocate part of the funds to local start-ups," he added. Source: BERNAMA News Agency