Minister: Existing regulations too rigid for growing startups

Redzuan: These companies needed space to grow, but these regulations are hindering it. — Bernama

KUALA LUMPUR: The existing regulations to support entrepreneur growth is too rigid and time-consuming, causing the country to lose some talents to foreign countries.

Entrepreneur Development Minister Datuk Seri Mohd Redzuan Md Yusof said due to this hindrance, his ministry would be reviewing the existing regulations especially in the funding needed by startups.

“These companies needed space to grow, but these regulation are hindering it.

“We have initiated the discussion with several agencies and we hope we could bring back these local entrepreneurs that already have traction overseas back home by providing them with the needed environment to grow,” he told a media briefing after announcing alternative funding for small and medium enterprises (SMEs).

The funding, under Warisan Quantum Management Sdn Bhd and RHL Ventures Sdn Bhd, has successfully raised up to RM50mil in funds. The SME Corp will add another RM40mil to the funding.

The programme is a co-funding initiative between the government and the private sector through SME Investment Partner (SIP), to enhance access to financing for SMEs by providing pathways to private investors.

Redzuan also said that the fund will be for startups that already have market capitalisation but need funding to grow further.

“This would also complement existing financing landscape for SMEs through the offers of both equity and debt financing to meet SMEs financing needs; finance mainly early-stage SMEs between one to three years of operation. “This is a better spread compared to current venture capital financing which is mainly for technology-based companies,” he said. — Bernama

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