WQM and Islamic Development Bank form strategic partnership through Reverse Linkage
On 17th December 2019, Warisan Quantum Management (WQM), a Malaysian-based private equity management company has signed a Memorandum of Understanding (MOU) on engaging in South-Souh Triangular cooperation with the Islamic Development Bank (IsDB) in Jeddah, Saudi Arabi. The agreement wa signed by His Excellency, Dr Bandar Hajjar, President, IsDB Group and Mr Joehary Ismail, Senior Director of WQM.
The purpose of the MOU is to establish a First Round of USD 15 Million Fund for Reverse Linkage. The Fun will facilitate Malaysia's Small and Medium Enterprises (SMEs) to benefit from potential market opportunities in IsDB's 56 other member countries as a result of Reverse Linkage projects and activities.
Reverse Linkage is a South-South Triangular Cooperation modality facilitated by the IsDB whereby member countries can exchange their knowledge, expertise, technology an resources to develop their capacities and devise solutionsfor their autonomous development.
WQM and IsDB will form a partnership in helping Malaysian SMEs to resolve cost barrier challenges when doing business in overseas markets. Furthermore, the Reverse Linkage modality is regarded as a mitigator of risk and a strong bridge for Malaysian SMEs to be able to expand overseas without investing millions in business development. "This is a strong value proposition for WQM as we get to leverage on IsDB's credibility and network in connecting Malaysian business with reputable and value-driven international partners. This will exponentially impact Malaysia's export growth in a positive term, "WQM Senior Director Joehary Ismail quoted.
Joehary views the partnership with IsDB as a strategic move to assist in development of IsDB member countries and this perception is gaining momentum. "WQM fully supports this movement as it matches with our ultimate corporate responsible vision to reduce the rate of poverty in IsDB member countries while creating new revenue stream responsibly. Reverse Linkage engagements will certainly improve IsDB member countries economic well-being through such sharing knowledge and experties on the basis of a mutually beneficial cooperation (i.e Win-Win scenario). We hope that the partnership will deliver the desired results thus growing business in these countries," Joehary noted.
Through the Reverse Linkage modality, the portfolio of companies under WQM will be able to penetrate these markets. For example, one of WQM's potential prospect company based in Sabah, Malaysia is involved in advance biomass technology and currently exports to developed countries such as Japan and South Korea.
The IsDB Reverse Linkage modality can assist the biomass business to source more raw materials from its member countries in Asia and Africa which will enable it to expand its export volume further.