(April 1): Malaysia Venture Capital Management Bhd (Mavcap) said on Monday that it aims to raise the country's venture capital total funding value by 85% to US$1.4 billion (RM6.8 billion) by 2030.

Total funding was US$758 million as of 2022 and still significantly lower than Singapore's US$9.47 billion, according to Mavcap chief operating officer Noor Amy Ismail. However, Malaysia's compounded annual growth rate (CAGR) is 44% over 2018-2022, she noted.

“We still have a lot of potential with our current CAGR compared to Singapore's CAGR of 13.7%,” she told a media conference at the launch of the Malaysia Venture Capital Roadmap (MVCR).

Under MVCR, the targeted total funding round will also translate into a higher target of VC penetration rate of up to 0.35% by 2030 from 0.19% in 2022, Noor Amy said. Malaysia already has over 3,000 startups and the country is targeting to have 15,000 startups by 2030, she said.

Meanwhile, Science, Technology and Innovation Minister Chang Lih Kang, who was also present at the launch, said that MVCR will play a crucial role to make Malaysia a leading hub for VC by 2030.

Malaysia's ranking in the VC and private equity country attractiveness has declined from 19 to 20 in 2023 and the country “needs to rise again and be competitive as the preferred VC hub in the region,” Chang said in his keynote address at the launch.

Chang added that MVCR will also act as an instrument in guiding fund allocation decisions for Malaysian startups.

“We cannot rely solely on the government, given its limited funds. Therefore, if we depend entirely on government funding, it can only be highly selective, supporting specific sectors or companies aligned with the national agenda,” he added.

MVCR is built upon three strategic pillars — funding, regulatory reform and capacity building.

For the funding, MVCR emphasises allocation of funds by government agencies and private investors to key sectors critical to Malaysia's economic development.

On regulatory reform, the roadmap calls for a clear governance structure, comprising policy oversight and development mechanisms to ensure a conducive regulatory environment for VC activities.

Capacity building, meanwhile, is aimed at promoting an inclusive ecosystem that attracts both local and foreign talents, recognizing that their perspectives are crucial for sustainable growth and innovation.