Malaysia’s VC industry urgently requires a stronger private sector contribution to reach its full potential, according to Noor Amy Ismail, board member and advisory panel member at Wahed Ventures.
Speaking at Bank Negara Malaysia’s Sasana Symposium 2024, Noor Amy emphasised the stark contrast between Malaysia’s VC performance and Singapore’s VC, calling for immediate action.
“In 2022, the value of Singapore’s VC was RM9.5 billion, significantly overshadowing Malaysia’s VC, which only totaled RM 758 million,” she noted.
In addition, she also highlighted that of this amount, Malaysia’s VC scene managed to deploy funds across merely 175 deals targeted towards small and medium enterprises (SMEs) and startups.
Moreover, she pointed out that only 8.1 percent of these deals advanced to the exit stage, indicating a near-absent maturity level within Malaysia’s venture capital sector.
“This comparison is particularly alarming considering the robust activity in Singapore, where 1,111 deals were recorded. It showcases the critical need for Malaysia to bolster its investment framework to nurture growth,” Noor Amy added.
Noor Amy also emphasised on bureaucracy, saying it should facilitate the process to help fulfil the various roadmaps introduced by the government.
Referencing South Korea’s efficient VC model, where a consortium of 41 major corporations has significantly expedited the funding approval process, Noor Amy suggested that Malaysia’s VC industry could benefit from a similar approach.
“In contrast, the process in South Korea takes no more than a week. However, here in Malaysia, it takes 10 to 20 days, which is too costly because in Malaysia, time is money,” she explained.
In conclusion, Noor Amy reiterated the need for a dynamic shift in Malaysia’s landscape to foster economic growth and innovation.
“Ultimately, more private sectors should be involved in the VC industry,” she added.
Source: here
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