Speech by
Datuk Syed Zaid Albar
Executive Chairman, Securities Commission Malaysia
14th MVCA Award Ceremony
15 December 2021
|
Tuan Hj Mohammad Hazani Hj Hassan, Chairman of Malaysian Venture Capital and Private Equity Association (MVCA), Ladies and gentlemen, Good afternoon. |
|
| 1. | Thank you for inviting me to the 14th MVCA Award Ceremony. |
| 2. | As we approach the end of the year, it is only fitting to recognise the outstanding firms and individuals who have advanced Malaysia’s VC and PE industry. |
| 3. | The past 18 months have dramatically altered the way we work and interact. It has also seen many businesses pivot and change how they do things, and the acceleration of technology adoption has been one of the main changes. These transformations have propelled the growth and disruption of many sectors… such as healthcare, education and Fintech. |
| 4. | Despite the many headwinds faced during the pandemic, it is also encouraging to note that deals continue to prosper and new milestones are being reached. This includes Malaysia-based Carsome’s entry into the unicorn club. |
| 5. | I am optimistic there is more to come, and I believe this demonstrates a great deal of untapped potential in Malaysian firms. This is due in large part to the efforts of MVCA members and the community at large. |
| 6. | Government initiatives, such as Penjana Kapital and MAVCAP, also play a catalytic role in attracting partners with dry powder. Their knowhow and networks help bridge opportunities in Malaysia with the global investor community. |
| 7. | Moving forward, start-ups, VCs and PEs can play a bigger role in transforming local industries. Many SMEs have struggled to adapt to a more digital-centric business environment. Larger firms are exploring new horizons in a changing business landscape. These firms can benefit with your guidance… to innovate and evolve. |
| 8. | As VC or PE firms, you have the ability to take positions and guide management. This is crucial because you deploy risk capital to kick-start or grow businesses when many others are afraid to do so. |
| 9. | Given the challenges, the industry can also provide much needed capital to buffer the negative impact or even restructure investee companies. |
| 10. | COVID-19 has certainly left its mark, but I believe you can help guide businesses and the economy back to health. |
|
Ladies and gentlemen, |
|
| 11. | In September this year, the SC released the third Capital Market Masterplan. It sets our aspirations on how the domestic capital market can grow in the next five years. This includes making our markets more efficient and accessible for businesses, empowering investors, and shaping a stakeholder-oriented economy. |
| 12. | Private markets will play a significant role in achieving these aspirations. In fact, I strongly believe that the recovery of the Malaysian economy post-pandemic hinges on the robust recovery of our private investments … especially in new areas of growth. This is precisely where private markets can play a critical role. Which is why the SC is giving priority on capital formation via private markets, including further MVCDC collaboration. |
| 13. | We are currently reviewing the VC and PE registration framework to further expand the investor pool. This includes widening qualifying investors to potentially enable angels and the mass affluent to invest in VC and PE funds. This change will improve risk appetite matching for early stage investments. |
| 14. | We will also consider better-suited capacity building programmes to enhance investment professionals’ skills and familiarity with private markets. |
| 15. | Corporate venturing is also an area of interest. The SC will look to encourage more corporates to collaborate with the start-up community. Through these strategic partnerships, we hope to increase the probability of success for our local start-ups. |
|
Ladies and gentlemen, |
|
| 16. | Before I conclude, allow me to congratulate all of today’s winners. I am confident of more successes to come. These testing times will give us the experience to shape a more robust and resilient private equity and venture capital community. |
| 17. | We are now at that time of the year so let me wish everyone a happy new year, and to those celebrating, a very Merry Christmas! |
| Thank you. | |
