Page 26 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

LEAP market continues to progress was held on 8 February 2018 in conjunction with
the World Capital Markets Symposium. Through
The LEAP market launched by Bursa Malaysia collaboration with CMM and selected industry
continues to progress in meeting its objective of representatives, the workshop provided participants
providing a capital-raising platform for SMEs that with an overview of the Malaysian VC landscape
complements other forms of capital-raising channels. ranging from regulations to available incentives in
6
In 2018, 10 SMEs successfully raised RM57.43 the funding and entrepreneurship ecosystem.
million on the LEAP market, bringing the total raised
since inception in July 2017 to RM69.93 million. The SC also supported the Southeast Asia Venture
Capital & Private Equity Conference 2018 held on
The 13 locally incorporated companies currently on 31 July 2018. Organised by the Malaysian Venture
the LEAP market come from diverse sectors Capital and Private Equity Association, the conference
including technology, healthcare, consumer and covers in-depth discussions on investment trends
industrial products and services, as well as and opportunities in Southeast Asia.
telecommunications and media.
Following Budget 2018, the Venture Capital Fund
Coordination Committee (VCFCC) was formed to
VC and PE – supporting the funding implement the RM1 billion VC fund allocation
ecosystem programme. This allocation serves to, among others,
encourage formation of new VC funds, address the
VC and PE are essential components in the funding gap in the entrepreneurship ecosystem and
Malaysian entrepreneurship funding ecosystem. In strengthen the expertise of Malaysian VC professionals.
addition to providing financial capital, VC and PE The VCFCC, which is chaired by the SC and comprises
managers also provide guidance to businesses in representatives from key domestic institutional
order to accelerate and realise their growth investors, determines the minimum eligibility criteria
potential. As an asset class, investments in VC and for the allocation as well as facilitates the review and
PE funds offer institutional investors and high net selection of fund proposals for this allocation.
worth individuals avenues for portfolio diversification.
A Request for Proposal was launched on
As at 2018, the Malaysian VC and PE industry saw 3 May 2018 to call for submissions by interested VC
total fund commitments of RM6.08 billion. The key managers seeking funding commitments from
growth challenge lies in the limited participation of investors in the VCFCC. The programme garnered
institutional and private investors. As a result, a interest from both domestic and international VC
significant share of funding in the industry is managers with a total of 60 proposals received and
sourced from government funds. To address this reviewed by the VCFCC.
issue, development efforts in 2018 focused on:

1. Promoting awareness of VC and PE in the Initial coin offerings and digital asset
Malaysian capital market; and exchanges
2. Encouraging private investor participation in
VC and PE. The SC continues to remain vigilant in monitoring
the activities in the digital assets space as well as
To promote awareness of VC, a half-day workshop other regulatory developments globally. Throughout
for VC firms and start-ups from the ASEAN region 2018, steps were taken to engage with the market

6 Total number of SMEs listed in 2018 on the LEAP market was 11, with one in the form of ‘proposed listing by way of introduction of
the entire issued share capital’, without raising funds.

16 | PART 1 »» ENABLING SHARED VALUE GROWTH

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