PRIVATE SECTOR URGED TO CHIP IN
Active angel community lacking in Malaysia, says PNB chairman
PERMODALAN Nasional Bhd (PNB) is urging for more private venture capital funding in the country to boost innovation and transformation.
Chairman Tan Sri Abdul Wahid Omar said currently in Malaysia, the majority of such funding came from government-sponsored institutions.
He said nearly 70 per cent of venture capital funding in Malaysia was derived from the government, unlike in the United States where more than 80 per cent of such funding came from private institutions.
“The idea here is to get more of the private sector to allocate a portion of their wealth to start investing in start-ups, new ventures and venture capital funding,” said Wahid after launching a book entitled “Malaysia at a Crossroads: Diagnosing the Constraints to High-Income Status” at the Growth Diagnostics Forum organised by PNB Research Institute (PNBRI ), here, yesterday.
Wahid also observed a very active angel investor community in the US, which he said was lacking in Malaysia.
“We know some tycoons are doing it on the quiet. But we would like to see more of these highnet-worth individuals come on board to invest in start-ups and small and medium enterprises.”
Wahid highlighted the 10 recommendations in the book, which included upgrading risk capital and more private capital funding. The book also recommends greater regional and state-level approaches to understanding growth drivers to ensure transformation is felt at the district and local levels.
PNB would work with a few parties to see how these recommendations could be implemented, said Wahid.
The growth diagnostics study was commissioned by PNBRI and led by Universiti Kebangsaan Malaysia (UKM) vice-chancellor Prof Datuk Seri Dr Noor Azlan Ghazali, who is also a member of PNBRI, together with UKM economist-in-residence at the vice-chancellor’s office, Mpumelelo Nxumalo, and Bright Vision Consulting Sdn Bhd lead consultant Jared Glanz-Berger. Bernama
Permodalan Nasional Bhd (PNB) chairman Tan Sri Abdul Wahid Omar (centre) with PNB Research Institute chairman Datuk Dr Awang Adek Hussin (right) and Universiti Kebangsaan Malaysia vice-chancellor Prof Datuk Seri Dr Noor Azlan Ghazali at the launching of the book, ‘Malaysia at a Crossroads: Diagnosing the Constraints to High-Income Status’ in Kuala Lumpur yesterday.