He said that a lively venture capital landscape in Malaysia would see more start-ups hiring across different skill levels, creating many job opportunities for Malaysians, particularly in high-value industries.
“This growth enables and encourages continuous talent development and upskilling, strengthening both the workforce and the economy, and lifting the rakyat further up the socioeconomic ladder,” he said in a speech after officiating the Malaysia Venture Forum 2024, Bernama reported.
The minister said that a diversified funding landscape, with all ecosystem players in place, namely government-linked investment companies, private sector investors, and start-ups, would be pivotal in energising Malaysia’s nascent venture capital ecosystem and accelerating its evolution.
“Data from Malaysia’s Securities Commission reveals a critical challenge in our national venture capital landscape – an overreliance on government-related funding,” he said.
In 2022, government agencies and sovereign wealth funds accounted for nearly two-thirds, or 63%, of total venture capital funding.
“While this demonstrates the government’s commitment to nurturing start-ups, it also highlights a gap that must be addressed to ensure the ecosystem’s sustainability and dynamism. An ecosystem primarily dependent on public funding will struggle to fully mature.
“This dependency not only limits the growth trajectory of start-ups as they evolve but also diminishes Malaysia’s attractiveness to seasoned international venture capitalists,” he said.
Amir also said that while the country expanded and strengthened its venture capital ecosystem, it would inevitably encounter challenges, including the inherent risks associated with investing in innovation-driven businesses.
“Venture capital, by nature, is not without uncertainty. It is built on a foundation of high-risk, high-reward decision-making. We must recognise that there will, predictably, be investments that do not meet their intended outcomes.
“These are part and parcel of a dynamic venture capital ecosystem. They should not deter us from taking bold steps forward. Instead, we must view these as opportunities to strengthen our governance frameworks, refine our strategies, and reinforce our resolve to support innovative start-ups that have the potential to transform our economy,” he said.
Amir also reiterated that the government stands firmly behind the venture capital ecosystem, and encourages all stakeholders – investors, entrepreneurs, and the public – to have confidence in local institutions which remain committed to balancing calculated risk-taking with sound governance.