The Securities Commission Malaysia (SC) has released the first edition of the ‘Practical Guide on Venture Capital and Private Equity in Malaysia’ early this week, aiming to clarify the Malaysian policy landscape for fund managers, service providers, and investors in these sectors.
The guide provides detailed practical knowledge essential for navigating the local regulations that govern venture capital (VC) and private equity (PE) operations.
This initiative is part of the SC’s broader strategy to enhance the role of professional fund managers and develop a robust investor base to support startups and high-growth enterprises in Malaysia.
SC Chairman Awang Adek Hussin emphasized the guide’s role in fostering a conducive investment environment. He said:
The practical guide on VC and PE in Malaysia is our commitment to fostering a conducive environment for investment and innovation. With clarity on the Malaysian business landscape for VC and PE firms, we aim to build a more vibrant community of professional investors to support entrepreneurs in Malaysia.
The guide covers key areas such as local capital market regulations, foreign exchange policy, tax matters, and fund structuring considerations that are critical to fund operations.
It aligns with the Capital Market Masterplan 3 and supports the national KL20 agenda, which aims to establish Malaysia as a leading global startup ecosystem.
The VC and PE sectors in Malaysia have shown consistent growth, with total fund commitments rising to MYR 17.85 billion ($3.79 billion) in 2023 from MYR 16.08 billion ($3.42 billion) in 2022.
Investments in these sectors accounted for MYR 5.9 billion ($1.25 billion) of the total funds raised in Malaysia’s capital markets from 2017 to 2023.
This initiative is part of SC’s collaboration with Bank Negara Malaysia, Labuan Financial Services Authority, Malaysian Venture Capital and Private Equity Association, and EY Tax Consultants.