By MARK RAO / Pic By MUHD AMIN NAHARUL
The Securities Commission Malaysia (SC) is studying recommendations proposed by the Institute for Capital Market Research (ICMR) to spur growth and private participation in Malaysia’s venture capital (VC) industry.
“The independent report by ICMR highlighted the need for targeted government interventions to catalyse a greater private sector participation, more integrated cooperation among the VC ecosystem stakeholders and adoption of a global mindset,” the SC said in a statement yesterday.
Among the eight recommendations proposed by ICMR are the restructuring of existing public VCs to be more commercially-driven and the establishment of a dedicated government body to bridge the funding gap for VCs in the country.
The research firm also suggested establishing a fund of funds with matching elements and incentive mechanisms for the VC industry.
The creation of a single-market access platform to help domestic entrepreneurs overcome developmental challenges and facilitating the expansion of the venture debt sector are also among the recommendations proposed.
Lastly, ICMR recommended creating a centralised information gateway to assist in research, policy formulation and industry profiling, and establishing an inter-ministerial council.
The latter is to align the objectives across different ministries involved in Malaysia’s VC ecosystem.
The SC said it will engage with industry stakeholders, both directly and through the Malaysian Venture Capital and Private Equity Development Council, on the possible implementation of these recommendations.
As part of the study, ICMR conducted extensive consultations with the relevant industry players, including public and private VCs, entrepreneurs, equity crowdfunding operators, corporates and angel investors.
The study is part of SC’s ongoing efforts to facilitate the intermediation of risk capital and enhance access to financing for start-ups and early stage companies in the Malaysian capital market.