KUALA LUMPUR: Malaysia Venture Capital Management Bhd (Mavcap) aims to almost double venture capital (VC) funding to US$1.4 billion from US$758 million currently, with the launch of its 2024-2030 roadmap.
This would grow VC contribution to the nation's gross domestic product (GDP) from 0.19 per cent to 0.35 per cent.
"Presently, Malaysia's VC funding amounts to US$758 million, in contrast to Singapore's total funding of US$9.5 billion in 2022.
"Meanwhile, our deal count from the previous year amounted to just 165, whereas in Singapore, it reached 1,111 deals," Its chief operating officer Noor Amy Ismail said.
Nevertheless, she highlighted that Malaysia's compound annual growth rate (CAGR) stands at 44 per cent, indicating significant potential for Malaysia, especially considering Singapore's CAGR at 13.1 per cent.
Today, MAVCAP launched the Malaysia Venture Capital Roadmap (MVCR) for 2024-2030 to establish Malaysia as a leading hub for VCs.
Hosted by the Ministry of Science, Technology & Innovation (MOSTI), the roadmap aims to stimulate entrepreneurship, innovation, and propel economic development throughout the country.
The MVCR is built upon three pillars of funding, regulatory reform and capacity building, which is aligned with Malaysia's vision for an inclusive innovation-driven economy.
"The roadmap underscores the strategic distribution of funds from both governmental bodies and private investors, prioritising key sectors vital for Malaysia's economic progress.
"It also calls for the implementation of a transparent governance framework, including policy oversight and development mechanisms, to facilitate a favourable regulatory landscape for VC endeavours."Additionally, it aims to cultivate an inclusive environment that appeals to both local and international talent, encouraging diverse viewpoints essential for enduring growth and innovation," it added.
Moreover, the MVCR stands out for its delineation of 11 interventions designed to stimulate growth within the VC ecosystem, organised into three main strategies.
The initial strategy focuses on enhancing the business environment by streamlining cross-border capital flow, establishing a centralised platform for VC management, and harmonising tax incentives to facilitate smoother VC operations.
The second strategy aims to improve access to funding by optimising the allocation of government funds, encouraging greater involvement from Government-Linked Investment Companies (GLICs), Government-Linked Companies (GLCs), and corporations in venture investments.
It also enhances the appeal of the government's matching fund-of-funds scheme.
The third strategy aims to strengthen Malaysia's VC expertise by nurturing new fund managers, promoting VC-specific educational programs, improving visa schemes to attract talent, and facilitating the growth of VC support functions.
MOSTI minister Chang Lih Kang said the MVCR represents a bold commitment by the government and VC related industry participants to nurture Malaysia's innovation-driven economy.
"By strategically allocating resources and fostering a conducive regulatory environment, we aim to position Malaysia as a preferred destination for venture capital within the region," he said.
