Malaysia’s PE, VC funding up 8.43% to $3.64bn in 2022

Malaysia’s private equity and venture capital funding saw a significant increase in 2022, according to a report released by the Securities Commission Malaysia.

The report showed an 8.43% increase in funding to $3.64 billion (MYR16.08 billion) in 2022, compared to $3.35 billion (MYR14.83 billion) in 2021.

The total committed funds in the industry were $2.42 billion (MYR10.71 billion) for PE and $1.21 billion (MYR5.37 billion) for VC by the end of 2022.

Corporate investors, individuals and family offices, and financial institutions were the top sources of funding for PE, while government agencies and investment companies, sovereign wealth funds, and corporate investors were the top sources for VC.

Creador, Xeraya Capital, and Malaysia Venture Capital Management Berhad (MAVCAP) were the top three registered corporations based on the amount of investor commitments made by the end of 2022.

VC investments in 2022 were primarily focused on growth opportunities, followed by early stage and seed opportunities. PE investments were primarily channeled into growth plays, with some investments made in early stage opportunities, followed by bridge, mezzanine, and pre-IPO investments.

The medical and biotechnology sector saw the highest share of VC investment in 2022, followed by information and communication and financial and insurance/takaful activities.

For PE, investments were largely channeled to wholesale and retail trade, followed by healthcare and manufacturing.

The report also highlighted that while trade sales and secondary sales remain common routes for liquidity, 2022 also saw several exits via IPOs.

As of December 31, 2022, the total number of registered corporations stood at 129, with 109 registered corporations in the VC segment and 20 registered corporations in the PE segment. The industry employed 229 professionals with at least 4 years of experience.

The increase in private equity and venture capital funding in Malaysia is a positive sign for the country’s economy and highlights the potential for growth and development in various industries.