Capital Raising - Malaysia | Statista Market Forecast

The country in Malaysia is projected to see the Total Capital Raised in the Capital Raising market market reach US$617.50m in 2024.
Traditional Capital Raising is set to dominate the market with a projected market volume of US$530.30m in 2024.
When compared globally, the United States is expected to generate the most Capital Raised (US$195.4bn in 2024).
Malaysia's Capital Raising market is experiencing a surge in Real Estate Investment Trusts (REITs) offerings, attracting both local and foreign investors.

Definition:

The Capital Raising market refers to the process of raising additional capital to launch, finance, and grow a business or a project. Traditional Bank Loans are not considered in the market.

Structure:

The market consists of two segments:
- The Traditional Capital Raising market refers to traditional venture financial services for startups and emerging companies that do not yet possess a positive track record, but have exceptional growth potential.
- The Digital Capital Raising market refers to digital financial services for business customers and private borrowers.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Besides Traditional Bank Loans, there are various alternative forms of debt and equity financing that help businesses, especially startups and emerging companies who seek additional funds to support their business' operation and growth. Nowadays, owing to the rapid growth rate of startups and emerging companies, these financial services are more attractive and popular.
Key players in this market are companies such as Squoia Capital, Hercules Capital, and Indiegogo

Use the info button next to the boxes for more information on the data displayed.

Venture Capital
Venture Debt
Digital Capital Raising

Traditional Bank Loans

The Capital Raising market in Malaysia has been experiencing significant growth and development in recent years.

Customer preferences: Investors in Malaysia have shown a strong preference for capital raising activities, particularly in the form of initial public offerings (IPOs) and corporate bond issuances. This is driven by the desire to diversify investment portfolios and seek higher returns. Additionally, there is a growing interest in sustainable and socially responsible investments, which has led to an increase in green bond issuances.

Trends in the market: One of the key trends in the capital raising market in Malaysia is the increasing number of IPOs. Companies are opting to go public to raise funds for expansion and growth opportunities. The Malaysian government has also implemented initiatives to encourage more companies to list on the stock exchange, leading to a surge in IPO activities. Another trend is the rise of corporate bond issuances. Malaysian companies are turning to the bond market to raise capital for various purposes, such as refinancing existing debt, funding acquisitions, and financing infrastructure projects. The low interest rate environment and ample liquidity in the market have made corporate bonds an attractive option for both issuers and investors.

Local special circumstances: One of the unique aspects of the capital raising market in Malaysia is the presence of Islamic finance. Malaysia is a global leader in Islamic finance, and this has had a significant impact on the capital raising market. Islamic bonds, or sukuk, are a popular choice for companies seeking Sharia-compliant financing. The Malaysian government has also been actively promoting Islamic finance, which has further fueled the growth of the capital raising market.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the capital raising market in Malaysia. The country has a stable and well-regulated financial system, which instills confidence in investors. The government has also implemented various economic reforms to promote investment and business growth. Additionally, Malaysia's strategic location and strong trade ties with other countries have attracted foreign investors to the capital raising market. Overall, the capital raising market in Malaysia is experiencing robust growth due to customer preferences for IPOs and corporate bond issuances. The government's initiatives to promote capital raising activities, the presence of Islamic finance, and favorable macroeconomic factors have all contributed to the development of the market. As Malaysia continues to attract both domestic and foreign investors, the capital raising market is expected to further expand in the coming years.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.