Equity investment a viable funding option for business expansion — MIDA
08 Aug 2019
Equity investment such as private equity and venture capital is a viable funding option for companies seeking business expansion, said the Malaysian Investment Development Authority (MIDA).
Deputy chief executive officer Zabidi Mahbar said besides securing funding from banks, which catered more to stable and mature companies, equity investment could also be considered for business expansion, particularly by early-stage companies.
He said MIDA is now gearing up effort to promote domestic direct investment (DDI) and assisting local businesses to enhance their competitiveness and capacity.
As for the first quarter of this year, the country’s approved domestic direct investment stood at about RM24.6 billion compared with RM29.3 billion of approved foreign direct investment.
“Out of the DDI approved, those leveraging on equity investment are still small.
“Hence, we want to open up this space for companies to consider as an option to raise capital towards taking their businesses to the next level,” he told Bernama on the sidelines of the inaugural forum on business financing opportunities themed “Equity investment for Business Growth 2019” here today.
Attended by 150 participants, Zabidi said the forum was aimed at providing a strategic platform for financial houses to share their investment strategies, sectors and industries that they are focusing on.
He said the event was a continuous engagement undertaken by MIDA through the Investment Coordination Platform (ICP), which was set up in 2018, to facilitate companies with their expansion plan and business growth.
The ICP team works closely with equity and corporate advisory firms, as well as local regulators and technology providers in assisting companies in conducting business to business matching, capital raising through debt and equity, merger and acquisition, divestment, and initial public offering, he said.
Zabidi added that the ICP team has engaged with over 200 manufacturing, services, plantation companies and 50 strategic technologies and funding partners and to date has arranged over 60 business to business meetings session.
Notably, he added the team has also enabled a local steel company to meet the requirement for listing on the ACE market of Bursa Malaysia.