Securities Commission Annual Report 2013 Govt remains main funder to VC industry

by **Cals** Thu 13 Mar 2014, 17:05

Securities Commission Annual Report 2013 Govt remains main funder to VC industry

Business & Markets 2014

Written by Wei Lynn Tang & Supriya Surendran of theedgemalaysia.com

Thursday, 13 March 2014 09:48

KUALA LUMPUR: The government remained as the main funder to the venture capital (VC) industry last year, contributing about RM3.56 billion or 61.36% of total committed funds to the industry.

In its 2013 annual report, the Securities Commission Malaysia (SC) said total committed funds to the industry grew 1.7% year-on-year (y-o-y) to RM5.79 billion. Local companies remained the second highest funder to the VC industry at 18.73%. Other sources of funds from banks, insurance companies, pension and provident funds, and local individuals decreased from 12.02% to 8.42% collectively.

The SC said the top three industry players continued to be the same major players based on size of assets under management. They were Malaysia Venture Capital Bhd, Kumpulan Modal Perdana Sdn Bhd and Malaysia Life Sciences Capital Fund Ltd.

Total venture capital investments increased 24.5% to RM3.43 billion last year. In 2013, investments in investee companies rose 14.8% y-o-y to RM264 million, while divestments also jumped 22.1% to RM287 million. In terms of sectors, investments in manufacturing declined from 45% in 2012 to 18.8% in 2013.

However, investments in IT and communications rose 15.1% compared with 2012. Registered venture capital corporations and venture capital management corporations stood at 61 and 58 respectively as at the end of last year.

This article first appeared in The Edge Financial Daily, on March 13, 2014.