KUALA LUMPUR: The Securities Commission (SC) has published the inaugural edition of the 'Practical Guide on Venture Capital and Private Equity in Malaysia'.
The guide provides prospective venture capital (VC) and private equity (PE) fund managers, service providers and investors with practical insights to help them understand and navigate the Malaysian regulatory environment for VC and PE activities.
"This initiative aligns with the SC's broader efforts to deepen market-based financing avenues for MSMEs and mid-tier companies (MTCs)," it added.
Its main contents cover local capital market regulations related to the VC and PE sectors, foreign exchange policies, tax issues, fund structuring considerations and other essential aspects of fund operations.
"VC and PE firms play an essential role in nurturing promising startups and high growth enterprises, which are key to catalyse innovation, opportunities for local talent and contribute to the growth of the Malaysian economy," it said.
The SC said the guide is a key initiative in its efforts to cultivate a dynamic private market sector as outlined in the Capital Market Masterplan 3.
SC chairman Datuk Seri Dr. Awang Adek Hussin said the guide is part of the commission's commitment to foster 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," he said.
In 2023, the total fund commitments for VC and PE amounted to RM17.85 billion, up from RM16.08 billion in 2022.
VC and PE investments accounted for RM5.9 billion of total funds raised in Malaysia's capital markets between 2017 and 2023.