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SINGAPORE: Based on the data from Tracxn, analysts of UnaFinancial considered venture investments in fintech startups by various sectors. The world leader by fintech venture investment volume is North America with US$453 billion in 2023, which is projected to reach US$834 billion by 2028. Asia ranks second with $369 billion in 2023. The leading sectors of fintech there are e-commerce (59%), digital payments and transfers (17%) and digital lending (11%). According to the analysts, fintech venture investments may grow to US$548 billion by 2028, showing a 49%-increase. The experts said, “Drivers for positive change could include an evolving regulatory framework in the region as well as the high level of adaptation to newly developed technologies. This is confirmed by the EY FinTech Adoption Index, which shows that Asia retains its global leadership in fintech adoption.” The third continent with significant fintech investment volumes is Europe, with US$188.8 billion in 2023. The optimistic forecast for 2028 is US$383.8 billion (+103%). South America is fourth with US$30 billion invested in fintech startups in 2023, followed by Australia (US$12.8 billion) and Africa (US$9.6 billion). By 2028 these volumes will grow to US$35, US$22.4 andUS$ 22.2 billion respectively. The global volume of fintech venture investments amounted to US$1.06 trillion in 2023. According to UnaFinancial’s estimate, the volume of investments in fintech startups could increase by 77% to US$1.88 trillion by 2028.

KUALA LUMPUR: The withdrawal of BlackRock’s investment from Malaysia, if it happens, will have implications and negative impacts on efforts to realise the country’s investment agenda, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz. BlackRock is a shareholder in various listed companies worldwide, including sovereign funds from Saudi Arabia, the United Arab Emirates, Oman, Bahrain, and Indonesia. According to him, BlackRock, which is the largest asset manager in the world with assets under management worth US$10.5 trillion as at March 31, 2024, also holds equity investments in 100 public-listed companies in Malaysia as of May this year. “This includes the industrial sector, with the three largest entities being banking institutions in the country. Overall, BlackRock owns assets worth approximately RM27.5 billion in Malaysia,” he said during the Minister’s Question Time in the Dewan Rakyat, today. Tengku Zafrul said this in reply to a question from Lim Guan Eng (PH-Bagan) regarding the investment details by BlackRock in Malaysia and the impact on the economy if all of BlackRock’s investments over the past decades were divested. He said of that amount, RM20.5 billion of BlackRock’s investment was in the Bursa Malaysia stock market and around RM7 billion in government and corporate bonds in the country. Among BlackRock’s investments in the government-issued bond market include Malaysia Sukuk Global Bhd; Export-Import Bank of Malaysia Bhd; Malaysia Wakala Sukuk Bhd; Petroliam Nasional Bhd; and Malaysia Sovereign Sukuk Bhd. BlackRock is also a shareholder of several large multinational companies operating in Malaysia including Microsoft, Boeing, Intel, and Texas Instruments. “Companies such as Microsoft, Boeing, Intel, and Texas Instruments that have shares owned by BlackRock contribute to the development of the industry and the states through investment projects carried out in Malaysia. This includes Intel, which contributes to the growth of the semiconductor sub-sector in Penang; Infineon in Melaka and Kedah; Texas Instruments in the electrical and electronics industry in Melaka and Kuala Lumpur (KL); and Boeing’s subsidiary, Aerospace Composites Malaysia Sdn Bhd, in the aerospace industry in Kedah. Microsoft also recently announced an investment that will contribute to the development of data centre infrastructure at a new location to be determined later. “Overall, the companies that I mentioned just now represent foreign investments that have made significant investments in Malaysia, as well as create job opportunities, particularly in the high-tech and high-value sectors targeted by the country,” he explained. Elaborating further on these investments, Tengku Zafrul said Intel has invested RM32 billion and employs more than 10,000 workers, while Texas Instruments has invested RM13 billion and employs more than 2,000 workers in Malaysia. Boeing, through its subsidiary, Aerospace Composites Malaysia, has invested RM300 million and employs 900 workers, while ROHM Electronics (Malaysia) in Kelantan has invested RM3 billion and employs more than 2,000 workers. “Infineon, which has operations in Kedah and Melaka, has announced an additional investment commitment of RM25 billion, and to date employs more than 13,000 Malaysians. “At present, Microsoft employs over 200 workers in Selangor, Penang, and KL. On May 2, 2024, the company announced an additional investment commitment of RM10.5 billion,” he said. In terms of trade, Intel has contributed RM50 billion in export value for semiconductor components; Texas Instruments contributed RM20 billion in electronics components export value; and Microsoft has contributed RM15 billion in export value for information technology services. According to Tengku Zafrul, Malaysia does not practice any policies that prohibit investments from global companies like BlackRock and their involvement in public-listed companies on the stock market. “We do not have any involvement or policies that prevent them at this time,” he said. Regarding the sale of shares in Malaysia Airports Holdings Bhd, the minister said that this has already been addressed by Prime Minister Datuk Seri Anwar Ibrahim this week. “Regarding the Cabinet, perhaps I can provide some clarification in terms of governance. The decision was indeed made at the Khazanah Nasional Bhd level, so as a member of the Cabinet, I was only informed during the Cabinet meeting by the Prime Minister, and at that time, the decision had been made,” he said. – Bernama