Malaysia to promote private financing for R&D, commercialisation, innovation: 11th Malaysia Plan

The 11th Malaysia Plan was announced by the government on May 21, 2015.

The Malaysian government has earmarked efforts to promote private financing for research and development, commercialisation and innovation (R&D&C&I), under a strategy to translate innovations into wealth in the country.

The efforts include increasing access to private sources of financing, developing a framework for risk mitigation and management of crowdfunding activities, the 11th Malaysia Plan revealed.

“Access to financing and assistance will be strengthened through continuous engagement with private financial institutions, venture capitalists, and angel investors to widen financial options, reduce dependency on government resources and increase the financing of R&D&C&I projects.”

This includes the expansion of the Technology Park Malaysia Angel Chapter and early stage financing for SMEs through the SIP programme.

“In addition, equity crowdfunding will be explored to widen the range of fundraising and investment products, as well as improve market access to a broader spectrum of issuers and investors,” the plan, released on Thursday, noted.

The plan added that crowdfunding will be promoted to provide financing opportunities for SMEs, start-ups, and innovative businesses seeking liquidity in a more efficient and transparent manner.

The Malaysian Securities Commission has been pushing for the legislation of equity crowdfunding since 2014. As of the latest updates, the parliament has yet to table the bill.

“The Eleventh Plan will focus on strengthening relational capital by improving collaboration among all stakeholders. Innovation will be targeted at both the enterprise and societal levels, instead of previous efforts which focused primarily on national-level initiatives,” the plan stated. At the enterprise level, initiatives will enhance demand-driven research, improve collaboration between researchers and industries, and encourage private investment in R&D&C&I.

Chart taken from the 11th Malaysia Plan
Chart taken from the 11th Malaysia Plan

 

Impact investments

The government will also look into a social finance model for public-private partnership programmes to be introduced to promote investments from the private sector, foundations, and individuals in delivering social services.

Through this model, the ‘payment by results’ mode will be introduced, where private social impact investors will provide funding for NGOs and CBOs to implement social services and will be reimbursed by the government when the agreed outcomes are achieved.

This model will reduce the burden and risk of social services programmes through the sharing of resources and leveraging civil society’s collective skills, enthusiasm, and innovation capacity with the government as a facilitator.

11th plan innovation
Chart taken from the 11th Malaysia Plan

Also read:

11th Malaysia Plan: Govt focuses on investments in 4 major cities

Securities Commission Malaysia invites submissions from equity crowdfunding operators

Malaysia aims to launch ECF by mid-year, no cap on participation

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.