In order for equity crowdfunding to take-off in a market, there needs to be enough demand and supply. On the demand side, there needs to be a thriving startup ecosystem; on the supply side, there should be favourable regulations to allow a larger pool of people to become startup investors.
We think that Malaysia is well suited and ready for an equity crowdfunding revolution. Here's why:
Malaysia has high investor optimism and an inclusive framework soon to be in place
With the release of the public consultation paper on equity crowdfunding, Malaysia is well on its way to be the first country in Southeast Asia to set up a progressive regulatory framework for equity crowdfunding.
This will potentially widen the investor pool for small businesses to include retail investors and not just sophisticated investors. In addition, Malaysia has the highest rate of investor optimism within the region.
Malaysia has the largest number of tech IPOs in Southeast Asia
You might not have realized that when it comes to the largest tech IPOs in Southeast Asia, Malaysia dominates the region. In fact, 6 out of 8 biggest (in terms of market capitalization) listed internet companies within the association of Southeast Asian Nations (ASEAN) hail from Malaysia; the other two are from Singapore.
Here are the top 5 Malaysian internet/tech IPOs:
2. MyEG Services
5. iBuy Group
Malaysia is home to some of the fastest growing startups in the region
Malaysia is also home to more recently successful start-ups that have been headlining the news and capturing the eyes of international investors. An example would be MyTeksi (or GrabTaxi as it is known in other markets), a taxi booking mobile app that has rapidly gained traction in Singapore, Thailand, the Philippines, Vietnam and Indonesia, with over 2.1 million downloads and more than 400,000 active monthly users.
These startups are just a small sample of the overall supply of companies in Malaysia that crowdfunding investors could invest in, once equity crowdfunding regulations are in place.
Do you know that anyone can invest in a business startup via equity crowdfunding and then make profits from their investment when the business takes off? To know more, visit this equity crowdfunding platform that is coming to Kuala Lumpur very, very soon!
The Success Team
Energetic bunch of entrepreneurs who cannot sit still!
Contributor. Cynthia is a Public Speaking and Communication Trainer. She is also the founder of The Success Factory.