KUALA LUMPUR (Feb 11): A new report by the Institute of Capital Markets Research commissioned by Securities Commission Malaysia (SC) has highlighted the need for targeted government interventions in the venture capital (VC) ecosystem. 

The independent report pointed out that this was necessary to catalyse private sector participation, more integrated cooperation among stakeholders and the adoption of a global mindset, SC said in a statement today. 

Recommendations include restructuring existing public VCs to be more commercially driven, establishing a dedicated government agency to bridge the funding gap for nascent and high growth ventures, and creating a single platform for market access to assist domestic entrepreneurs in overcoming developmental challenges. 

The report also recommended that the government facilitate the venture debt sector’s expansion, further liberalise tax incentives for VCs and establish a centralised information gateway to assist research, policy formulation and industry profiling. 

“The SC will engage with relevant industry stakeholders directly, as well as through the Malaysian Venture Capital and Private Equity Development Council, which it chairs, on the operationalisation of these recommendations,” the commission said.