KUALA LUMPUR, April 1 — The Ministry of Science, Technology and Innovation (Mosti) foresees Malaysia’s venture capital penetration rate increasing by 0.25-0.35 per cent and valued at around US$1.4 billion (RM6.6 billion) by 2030, through the newly launched Malaysia Venture Capital Roadmap (MVCR) for 2024-2030.
The country’s venture capital penetration rate stood at 0.19 per cent in 2022, valued at US$758 million.
Malaysia Venture Capital Management Bhd (Mavcap) chief operating officer Noor Amy Ismail said the government has been focusing on building the local venture capital ecosystem, especially from the funding perspective.
“We hope that the MVCR will be able to address it (some of the crucial issues faced by the venture capital community at the moment) as we need to build a funnel,” she told reporters after the launch of the roadmap here, today.
Meanwhile, Mosti Minister Chang Lih Kang said the country has witnessed remarkable progress in the venture capital landscape over the years, where Malaysia’s venture capital industry has experienced notable growth with total funding increasing at a funding value compound annual growth rate (CAGR) of 44 per cent from 2018 to 2022.
“With a growing startup ecosystem and a supportive regulatory framework, Malaysia has become an increasingly attractive destination for investors seeking promising opportunities.
“From fintech to biotech, e-commerce to renewable energy, Malaysian startups are making waves across diverse sectors, showcasing the depth of talent and ingenuity within our borders,” he said in his speech.
Crafted through meticulous collaboration and strategic foresight, Chang said the roadmap is set to spark innovation, foster entrepreneurship, and drive economic growth across the nation.
“The MVCR truly represents a bold commitment by the government and venture capital-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.
With insights and contributions from industry leaders and experts, Mavcap said the MVCR is a visionary blueprint to propel Malaysia to the forefront of the global innovation landscape.
The roadmap emphasises strategic allocation, regulatory reform, and capacity building designed to ensure sustainable growth and inclusivity within the venture capital ecosystem.
The MVCR is unprecedented as it outlines 11 interventions aimed at catalysing growth within the venture capital ecosystem.
These interventions are grouped under three key strategies, namely the Ease of Doing Business; Improving Funding Accessibility; and Elevating Malaysia’s Venture Capital Talent Pool.
Mavcap chief executive officer Shahril Anas Hasan Aziz said the MVCR marks an unprecedented moment in Malaysia’s economic evolution.
“Through targeted interventions and strategic partnerships, we aim to elevate Malaysia’s position in the venture capital sector and drive innovation-led economic growth.
“It is clear that this strategic framework and implementation strategies are not merely plans but integral steps towards a transformative future for Malaysia’s venture capital ecosystem,” he said.
Shahril said that the MVCR also outlines four ambitious targets, including increasing the venture penetration rate, enhancing the regulatory framework, and boosting the number of venture capital and venture capital professionals in Malaysia by 2030.
The MVCR, with a well-thought-out phased intervention plan, stretches from 2024 to 2030 and reflects a deep commitment by all parties to evolve the current ecosystem into a more dynamic, efficient, and attractive hub for venture capital activity. — Bernama
