SC launches first practical guide on venture capital private equity
SC launches first practical guide on venture capital private equity

SC launches first practical guide on venture capital, private equity

KUALA LUMPUR: The Securities Commission Malaysia (SC) today issued the first edition of the “Practical Guide on Venture Capital (VC) and Private Equity (PE) in Malaysia.”

The regulator stated that the guide aims to provide comprehensive practical knowledge to prospective VC and PE fund managers, service providers, and investors navigating Malaysia’s regulatory landscape for these sectors.

“Key contents of the guide include information on local capital market regulations pertaining to the VC and PE industries, foreign exchange policy, tax matters, fund structuring considerations and other areas critical to fund operations,” it said in a statement today.

SC highlighted that issuing the guide is part of its efforts under the Capital Market Masterplan 3 to cultivate a more dynamic private market sector.

This initiative supports broader objectives to expand market-based financing options for micro, small, and medium enterprises (MSMEs) and mid-tier companies (MTCs).

“The guide will enhance the role of professional fund managers and cultivate a more vibrant investor base capable of channelling investments into startups and high-growth MSMEs.

“It will also support the national KL20 agenda to establish Malaysia as a leading startup ecosystem globally by providing practical guidance for prospective fund managers and investors seeking to establish or expand their presence in Malaysia,” it added.

SC chairman Datuk Seri Dr Awang Adek Hussin emphasised that by providing clarity on Malaysia’s VC and PE business environment, the SC aims to build a vibrant community of professional investors supporting local entrepreneurs.

VC and PE constitute crucial components of Malaysia’s alternative financing ecosystem within the capital market.

Total fund commitments for VC and PE reached RM17.85 billion in 2023, up from RM16.08 billion in 2022.

Between 2017 and 2023, VC and PE investments accounted for RM5.9 billion of total funds raised in Malaysia’s capital markets. – BK

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