TLDR:
- The Securities Commission Malaysia (SC) has issued the first edition of the ‘Practical Guide on Venture Capital and Private Equity in Malaysia’ to provide practical knowledge for VC and PE fund managers, service providers, and investors.
- The guide includes information on local capital market regulations, foreign exchange policy, tax matters, and fund structuring considerations critical to fund operations in Malaysia.
The Securities Commission Malaysia (SC) has released the first edition of the ‘Practical Guide on Venture Capital and Private Equity in Malaysia.’ This guide is aimed at equipping prospective venture capital (VC) and private equity (PE) fund managers, service providers, and investors with practical knowledge to navigate the Malaysian policy landscape governing VC and PE operations. It covers a range of key contents, including local capital market regulations pertaining to the VC and PE industries, foreign exchange policy, tax matters, and fund structuring considerations crucial to successful fund operations.
The guide is part of the SC’s efforts to foster a more dynamic private market sector under the Capital Market Masterplan 3. It aims to enhance the role of professional fund managers and cultivate a more vibrant investor base capable of channeling investments into startups and high growth micro, small, and medium enterprises (MSMEs). In alignment with the national KL20 agenda to establish Malaysia as a leading global startup ecosystem, the guide provides practical guidance for prospective fund managers and investors seeking to establish or expand their presence in Malaysia.
The VC and PE industries in Malaysia have shown steady growth, with total fund commitments reaching MYR 17.85 billion ($3.79 billion) in 2023. VC and PE investments accounted for MYR 5.9 billion ($1.25 billion) of total funds raised in Malaysia’s capital markets between 2017 and 2023. The issuance of the guide is a collaborative effort between the SC, Bank Negara Malaysia, Labuan Financial Services Authority, Malaysian Venture Capital and Private Equity Association, and EY Tax Consultants.
