The Malaysian government has begun reviewing regulations to ensure sustained support for the growth of entrepreneurs and start-ups in the economy. Minister of Entrepreneur Development Datuk Seri Mohd Redzuan Md Yusof said his ministry intends to look over existing regulations which have been deemed too rigid and time-consuming. This is being done in the hopes of accelerating application processing time and enticing entrepreneurs who have been driven abroad to invest in Malaysia.

“The policy is there. It is just that the implementation needs some tweaking in terms of creating space. If not, they will run away. We have initiated the discussion across the ministries to facilitate it further.

“My personal opinion is that we need to move this quickly. We are moving, but we need to accelerate on the core competency, rules and regulations, and the space so that we can be on par with other countries in terms of taking advantage of innovation,” he said after launching the SME Investment Partner (SIP) Programme in Kuala Lumpur.

Mohd Redzuan added that if the involved institutions took too long to process applications as a result of the current regulations, Malaysia could potentially miss out on opportunities to realise the return of capital that entrepreneurs wish to develop.

“That is where we need to revamp certain processes to get up to speed so that we do not miss the opportunity,” he said.

The minister also reassured the public that the government remains committed to providing an alternative pathway for SMEs to access financing by allowing private investors to invest into viable SMEs through the SIP Programme.

The SIP Programme itself is one of the high-impact programmes under the SME Masterplan (2012-2020), and is a co-funding initiative between the government and private sector, with the objective to enhance access to financing for SMEs, particularly those at an early stage, through the provision of risk capital financing.

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