Malaysia is hoping to bring state-owned venture capital (VC) institutions such as the Malaysian Venture Capital Fund (MAVCAP) and Penjana Kapital under the sovereign wealth fund controlled by the Khazanah Nasional, the sources said.。

Malaysian Prime Minister Anwar Ibrahim said the decision, as part of the national budget, would help the country rank among the "top 20 global startup ecosystems" by 2030.。

It is understood that MAVCAP's current portfolio size is approximately 10.$600 million, previously invested in 500 Southeast Asia, Gobi Partners and LunexVentures, formerly under the Malaysian Ministry of Science and Technology (MOSTI)。

Meanwhile, the first (and only) fund of Penjana Kapital, which was once part of the Ministry of Finance, was launched in December last year at 2.$700 million completed delivery。

According to industry sources, "Malaysia is striving to become one of the 'top 20 global entrepreneurial ecosystems', but the specific details and indicators have not been publicized, and the progress and results are currently difficult to determine."。"

In the budget announcement, the government also said it had allocated 28 million ringgit (about 5.92 million U.S. dollars) to upgrade the "MYStartup" entrepreneurial ecosystem catalog operated by MOSTI.。

The initiative aims to optimize the allocation of 200 million ringgit funds provided by various financing institutions and venture capital firms, so it was previously reported that the goals of Malaysia's numerous government agencies are aligned, resulting in overlapping and inefficient allocation of funds and resources.。

The budget also includes an update on previous initiatives, such as the commitment of government-linked companies (GLCs) and government-linked investment companies (GLICs) to invest up to 1.5 billion ringgit in start-ups in "high-growth, high-value" sectors such as the digital economy, space technology, electronics and electronics.。Last year, the country's GLCs and GLICs invested about RM1.3 billion in food safety start-ups.。

However, Malaysia will also impose a capital gains tax on the sale of unlisted shares at a rate of 10 per cent of net profits, a decision that will take effect on March 1 next year.。

Malaysian Prime Minister Anwar said: "The government is also considering exempting capital gains tax on the sale of shares related to certain specific activities (such as IPOs, internal restructurings and venture capital companies) under certain circumstances.。"

Currently, all statutory sources of income of Malaysian venture capital funds enjoy tax exemption, with a tax exemption period of five years or the remaining duration of the relevant fund, whichever is shorter。

"Foreigners starting businesses in Malaysia are very disadvantaged when they exit the market," said an executive at a venture capital firm.。"

In response, the Malaysian government said that angel investors can still enjoy the current tax incentives.。

Not only that, Malaysia will also relax the conditions of the Malaysian Second Home Scheme (MM2H), which aims to attract foreigners (including investors) to live in Malaysia for a long time.。Details have not yet been disclosed.。

It is reported that in 2021, the Malaysian government tightened the MM2H application conditions, raising the minimum threshold for permanent savings from 300,000 ringgit to 1 million ringgit; liquid assets from 500,000 ringgit to 1.5 million ringgit; and monthly overseas income from 10,000 ringgit to 40,000 ringgit.。

Malaysian Prime Minister Anwar is very bullish on the MM2H plan, saying: "The revision of MM2H is expected to boost investment activity in Malaysia's financial market and real estate sector.。"