Malaysia - Assessment of the Start-Up Financing Ecosystem
In the context of the Coronavirus (COVID-19) pandemic and its impact on Malaysia's economy, the need to foster the emergence of an innovation-led economy has taken on increasing urgency. Public-sector involvement in the early-stage financing p...
| Main Authors: | , , , |
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| Format: | Report |
| Language: | English |
| Published: |
Washington, DC: World Bank
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/099325003152217819/P17485303a40a50a308bd60c618d61ee0c4 http://hdl.handle.net/10986/37136 |
| Summary: | In the context of the Coronavirus
(COVID-19) pandemic and its impact on Malaysia's
economy, the need to foster the emergence of an
innovation-led economy has taken on increasing urgency.
Public-sector involvement in the early-stage financing phase
of the ecosystem is integral to crowding-in private
investments, as seen by the impact of the establishment of
government-sponsored venture capital (VC) funds in several
small OECD countries, including Estonia and Finland. In
turn, improved access to finance at the initial stages of a
start-up and the crowding in of private capital will play a
pivotal role in strengthening the entrepreneurship
ecosystem. The government has devised a number of
developmental roadmaps that emphasize the greater use of
alternative forms of financing, such as VC and digital
platform based models, including peer-to-peer financing
(P2P) and equity crowdfunding (ECF). These strategies are an
integral part of the government's strategies for
maintaining growth as Malaysia achieves high-income nation
status. This study aims to identify the financing gaps in
Malaysia's start-up financing ecosystem and to propose
specific policy levers to address the identified constraints
on both the availability of and access to early-stage financing. |
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