KUALA LUMPUR: Capital Markets Malaysia (CMM) has launched the nation’s first corporate venture capital (CVC) programme to advance the domestic venture capital and private equity ecosystem via stimulating corporate investments by large public listed companies (PLCs).
The Securities Commission Malaysia (SC) affiliate said the approach of spurring corporate interest and investments in start-ups or micro, small and medium enterprises (MSMEs) aims to build confidence in corporate venturing as a potential enabling or innovation strategy to catalyse growth.
In a statement, CMM said the programme would generate economic activities that create high-value jobs, business opportunities and talent development, elevating communities in ways that fortify the local economy against future global fallouts.
"In addition, the structures are also intended to transition Malaysia towards a greener economy, develop high technology industries, and accelerate PLC growth by leveraging digitalisation and innovation,” it said.
CMM is collaborating with the Malaysia Digital Economy Corporation for the inaugural programme to strengthen the pathway for companies in the digital industries to gain better access to capital and lay the foundation for a strong and robust pipeline of growth-focused businesses.
It said the initiative will also entail CMM working alongside relevant agencies and investment entities in Malaysia to bring together and connect verticals in a network that would improve access to capital, capacity building, as well as business leadership and development.
CMM general manager Navina Balasingam said the goal for CVC is two-fold, namely to shape a more vibrant private marketplace by attracting corporate investments through promotion, awareness and eventual familiarity with corporate venturing, as well as to empower PLCs in understanding when and how to leverage corporate venturing to fuel strategic growth.
"There are many success stories of mutually beneficial outcomes where corporates are able to expand their product portfolios to capture new opportunities and scale their businesses or monetise the investments for other strategic purposes,” she said.
She expressed confidence that more public and private companies would be able to benefit from the investment and innovation contributed by each party through the concerted effort.
Meanwhile, SC executive chairman and CMM chairman Datuk Seri Awang Adek Hussin said the capital market plays a critical role in strengthening and reinforcing the nation’s financial structures.
"To facilitate wider population participation in the economy requires enabling infrastructures and networks, especially greater access to capital and funding avenues to facilitate capacity building for scale.
"Hence, the CVC programme builds on the existing ecosystem to connect different ecosystem players across private and public markets, from entrepreneurs and start-ups to the mature, large-cap (large market capitalisation) PLCs,” he said. - Bernama