"PRIVATE SECTOR SHOULD PARTICIPATE MORE IN VENTURE CAPITAL"

KUALA LUMPUR, Oct 11 (Bernama) -- The government has urged the private sector to be brave in participating in venture capital and drive Malaysia into a knowledge-based high-income economy.

Deputy Finance Minister Dr Awang Adek Hussin said venture capital is important in encouraging innovation, new technology and ideas, that can contribute to a knowledge-based economy.

"So far, the government has been the main driver of source of venture capital.

"We need the private sector to come in and assist as well. It's a part of the private-public partnership," he told reporters on the sidelines of the Kuala lumpur International Venture Capital Symposium here on Tuesday.

He said the industry is relatively underdeveloped in Malaysia and there must be a greater pursuit of venture capital if Malaysia is to be a developed country.

Last year, the amount of venture capital in Malaysia was worth RM6 billion (US$1.9 billion) with 51.4 per cent of the funding coming from government.

The industry is expected to grow by 16 per cent annually.

Awang Adek said the private sector must build the culture of moving out of the comfort zone to do new things and take on a higher risk.

"Break the barrier and take a leap forward into the high income
economy," he added.
-- BERNAMA