Mavcap Unveils Ambitious Plan to Elevate Malaysia’s Venture Capital Landscape to US$1.4 Billion by 2030

Mavcap sets an ambitious goal to increase Malaysia’s venture capital funding to US$1.4 billion by 2030, citing robust growth potential despite current disparities with Singapore. The Malaysia Venture Capital Roadmap (MVCR) aims to enhance VC penetration and regulatory environment while fostering an inclusive ecosystem for sustainable growth and innovation.

2 April 2024 – Malaysia Venture Capital Management Bhd (Mavcap) has set an ambitious goal to elevate Malaysia’s venture capital total funding value to US$1.4 billion (RM6.8 billion) by 2030, marking an 85% increase from the current level. Despite Malaysia’s current total funding standing at US$758 million, significantly lower than Singapore’s US$9.47 billion, Mavcap’s chief operating officer, Noor Amy Ismail, highlighted a promising compounded annual growth rate (CAGR) of 44% over 2018-2022.

At a media conference during the launch of the Malaysia Venture Capital Roadmap (MVCR), Noor Amy Ismail emphasized the country’s potential for growth, pointing out its robust CAGR compared to Singapore’s. Under the MVCR initiative, the target total funding round also aims to drive up the VC penetration rate to 0.35% by 2030 from 0.19% in 2022. Malaysia currently boasts over 3,000 startups and is striving to reach 15,000 startups by 2030.

Addressing the event, Science, Technology, and Innovation Minister Chang Lih Kang emphasized the pivotal role of MVCR in positioning Malaysia as a leading VC hub by 2030. Chang underscored the importance of Malaysia reclaiming its competitiveness in the VC and private equity landscape, highlighting the country’s recent decline in ranking.

Chang stressed that MVCR would not only guide fund allocation decisions for Malaysian startups but also foster a regulatory environment conducive to VC activities. The roadmap, built upon three strategic pillars — funding, regulatory reform, and capacity building — emphasizes sector-focused fund allocation, regulatory clarity, and inclusive ecosystem development to attract local and foreign talents crucial for sustainable growth and innovation. – ref: The Edge

Author: Terry KS

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