Venture capital, private equity investments surge to RM570 mln

KUALA LUMPUR: Venture capital and private equity investments surged 237 per cent to RM570 million in 2016 from RM169 million recorded in 2006.

The Securities Commission (SC) said the number of registered venture capital and private equity corporations rose by 20 per cent to 109 in 2016 from 91 in 2006.

The SC Annual Report 2016, released today, said venture capital was an essential source of funding for start-ups to achieve growth and create value through innovation.

“The Malaysian venture capital industry was established in 1984 with the formation of Malaysian Ventures Sdn Bhd.

“Gradually, various venture capital funds were formed and the total capital available grew substantially to RM6.5 billion in 2016 from RM3.3 billion in 2006,” it said.

The SC said the popular sectors for venture capital investments included life sciences, information and communications technology, as well as, manufacturing.

The SC said it has always supported efforts to promote capital formation by having a facilitative framework for the venture capital and private equity industry, which was further augmented through its role as the chair of the Malaysian Venture Capital and Private Equity Development Council (MVCDC).

“The council is a one-stop coordinating entity which provides strategic direction and advice to the government on developmental initiatives for the industry,” it said.

To accelerate industry growth to the next level, the MVCDC has formed a dedicated working group, co-chaired by the Malaysia Venture Capital Management Bhd and Ekuiti Nasional Bhd to identify challenges and provide specific recommendations for industry development, it said.

“With all these in place, the capital market will continue to support businesses that are gearing up to deliver the right product, quality, solution and service at competitive prices, both in domestic and international markets,” it said.