New Tax Break For Startup Investors Attracts Financiers in Malaysia
Malaysia’s efforts to encourage initial funding into startups may take years to win wider appeal, although a tax break announced recently could help attract some investors.
In September, Malaysia’s government announced tax breaks for individuals that take at least a 30% stake in startup companies for two years. It also recently launched a trade body to accredit and educate potential angel investors, who unlike venture capitalists, invest their own funds.
While the government-run Cradle Fund Sdn. Bhd., which has 150 million ringgit ($49.6 million) under management, invests in startups in the country, Malaysian entrepreneurs seeking early-stage capital usually flock to neighboring Singapore.