SC reviews proposals for venture capital industry

PETALING JAYA: The Securities Commission Malaysia (SC) is reviewing recommendations proposed by the Institute for Capital Market Research (ICMR) which aims to drive the venture capital (VC) industry.

In its independent report, ICMR highlighted the need for targeted government interventions to catalyse greater private sector participation, more integrated cooperation among the VC ecosystem stakeholders and adoption of a global mindset.

The report proposed eight interconnected recommendations to be considered including the restructuring of existing public VCs to be more commercially-driven, facilitation of the expansion of the venture debt sector and further liberalisation of VC tax incentives.

It also recommends the establishment of a dedicated government agency to bridge the funding gap for nascent and high-growth ventures as well as the creation of a single platform for market access to assist domestic entrepreneurs overcome developmental challenges.

The recommendations are based on an in-depth study by ICMR, which was commissioned by the SC as part of its 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.

The SC said it will engage with relevant industry stakeholders directly as well as through the Malaysian Venture Capital and Private Equity Development Council, which it chairs, on the operationalisation of these recommendations.

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