Open AccessGrowing the Malaysian Venture Capital and Private Equity Industry
Author(s) -
Syed Adil Hussain
Publication year - 2010
Publication title -
islam and civilisational renewal
Language(s) - English
Resource type - Journals
eISSN - 2041-8728
pISSN - 2041-871X
DOI - 10.52282/icr.v1i4.706
Subject(s) - venture capital , private equity , government (linguistics) , equity (law) , business , economic interventionism , private sector , finance , private equity firm , intervention (counseling) , economic growth , economics , political science , psychology , linguistics , philosophy , psychiatry , politics , law
The venture capital (VC) and private equity (PE) industry in Malaysia is at a crossroads. Despite having received RM3 billion in government aid, according to practitioners the industry will be devoid of any privately-backed organisations within five years if further action is not taken. This situation is problematic for many reasons - not least being that the government believes a robust venture capital and private equity sector would contribute to Malaysia’s development goals. Through a review of existing academic literature and in-depth interviews with 25 senior executives of Malaysian financial firms, this article investigates the state of the Malaysian VC/PE industry, and whether the government should intervene to improve its condition. Many financial executives argue that government intervention to aid the VC/PE sector is necessary at the present juncture. Although government efforts to grow VC/PE sectors have yielded less than desirable results in many nations, scholars have noted that a well-structured intervention can minimise such risks. In order to overcome those problems, this article recommends the creation of a RM1 billion ‘fund-of-funds’.