CGSMY to expand private equity, venture capital

New force: (From left) CGSMY board member Tan Sri Shahril Ridza Ridzuan, chief executive officer Azizah Mohamed Yatim, Securities Commission managing director Datin Azalina Adham, China Galaxy Securities Co Ltd vice-president and chief information officer Luo Liming, Deputy Finance Minister Lim Hui Ying, CGS International Securities Pte Ltd group chief executive officer Carol Fong, Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift, Ikhlas Capital Malaysia Sdn Bhd founding partner and chairman Tan Sri Nazir Razak and CGSMY board member Khairy Jamaluddin at the launch of CGSMY’s new brand identity.

KUALA LUMPUR: CGS International Securities Malaysia Sdn Bhd (CGSMY) expects growth in Malaysia’s private equity (PE) and venture capital (VC) market despite geopolitical tensions.

CGSMY chief executive officer Azizah Mohd Yatim said the integrated financial services provider plans to expand its PE and VC solutions.

She said the firm, which unveiled its new brand yesterday, is no longer a traditional stockbroking firm as it has obtained corporate finance licences to conduct business in asset management, equity derivatives and the futures market to boost its revenue.

Azizah added that equity remains the main driving contributor to the group’s revenue.

Separately, CGSMY deputy chief executive officer Alan Inn Wei Loon said he sees plenty of opportunities in the PE and VC markets, adding that the firm had signed a letter of intent with the Economy Ministry at the KL20 Summit.

“Our intention is to start up a new fund to focus on the private equity and venture capital space in South-East Asia. Malaysia will be one of the markets,” he said at CGSMY’s rebranding launch yesterday.

With a number of foreign investments coming in from China into certain parts of Malaysia’s business sectors, the PE and VC sectors will help bring the two markets together as both nations are large trading partners, Inn added.

With strong trading relations between Malaysia and China, the firm aims to capitalise on the venture capital and private equity by acting as a conduit to generate investments for its clients between the two nations.

Inn highlighted that the expansion pipeline into the PE and VC market should contribute to one quarter of the company’s revenue and profit in the next five years.

He added that the South-East Asia PE and VC sector remains in its infancy with new opportunities that will arise.

Meanwhile, the group has set a target of achieving a compounded annual growth rate of 15%-20% for the next three to five years.

Currently, CGSMY’s income channels are more diversified as its revenue comes from structured products and equity derivatives.

According to Azizah, investment banking and corporate finance will be added in the group’s revenue channels in the future.

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