PETALING JAYA: Establishing a strong foundation is crucial for the success of corporate innovation programmes and for fostering sustained engagement with the startup community.
Securities Commission Malaysia (SC) chairman Datuk Seri Dr Awang Adek Hussin said in a dynamic world of corporate innovation, corporate venturing (CVC) is an important strategic tool for companies to experiment with cutting-edge technology and stay ahead of competition.
“As highlighted in the SC’s Capital Market Masterplan 3, CVC is a key deliverable to facilitate market-based financing via corporate participation,” he said.
The SC’s efforts in promoting corporate innovation, he added, align with the broader strategy to develop a comprehensive market-based financing spectrum for corporates and SMEs, supporting the objectives of the KL20 Action Plan.
He said corporates are an important pillar of the capital market ecosystem, mobilising the flow of investment into early and growth-stage firms.
“The SC, via its affiliates, has conducted several CVC capacity-building programmes in the past two years. The government has also supported corporate venturing via attractive tax deductions for qualifying investments, said Awang Adek.
He added that while some companies that are already embracing this strategy have made progress in this area, there is a need to build a bridge for the majority that are just starting in the innovation journey, and those that have yet to obtain buy-in from their management and board to execute a CVC programme.
“We also received feedback which highlighted the need to identify strategic partners to build a viable corporate innovation programme,” he said in his opening remarks at the “Catalyst Series: Industry Dialogue on Corporate Innovation” hosted by the SC in Kuala Lumpur today.
Awang Adek said the SC conducted a Corporate Innovation Survey as a “temperature check” on the state of corporate innovation. “Among the key observations, 70% of the respondents believe their company is reasonably well-prepared for innovation.”
During the opening, the SC chairman launched the first edition of the Practical Guide on Venture Capital (VC) and Private Equity (PE) in Malaysia.
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.
Awang Adek 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.
In a statement issued later, the SC said, “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”.
The regulator 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 and mid-tier companies.
“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 said.
