{"id":1798,"date":"2019-10-15T09:54:32","date_gmt":"2019-10-15T09:54:32","guid":{"rendered":"http:\/\/www.southasiantimes.com.au\/?p=1798"},"modified":"2019-10-17T10:06:36","modified_gmt":"2019-10-17T10:06:36","slug":"malaysian-tech-start-ups-leave-for-singapore-australia-to-grow-business","status":"publish","type":"post","link":"https:\/\/www.southasiantimes.com.au\/?p=1798","title":{"rendered":"Malaysian tech start-ups leave for Singapore, Australia to grow business"},"content":{"rendered":"

\"KLM\"<\/a>Poor responses and strict rules are among reasons which have pushed local tech start-ups to countries like Singapore to gain capital funding, and to Australia for public listing, The Malaysian Reserve reported today.<\/p>\n

Such companies include iflix \u2014 a video streaming service headquartered in Kuala Lumpur \u2014 which is reported to be working towards listing on either Australian Securities Exchange (ASX) or the New York Stock Exchange.<\/p>\n

The move could reportedly earn a value of RM4.19 billion (US$1 billion) to the company.<\/p>\n

Another company that started in Malaysia but is now Singapore-based, PropertyGuru Ltd released its prospectus earlier this month, ahead of a planned initial public offering (IPO) on ASX that could raise some RM1.03 billion (A$363 million), the business daily reported.
\nThe Malaysian Reserve also reported that local tech start-ups have chosen Singapore to gain access to a larger venture capital funding and a lower corporate tax, and named ride-hailing company Grab as example.<\/p>\n

Grab started out in Malaysia where it was initially called MyTeksi, and is now headquartered across the Johor Strait in Singapore.<\/p>\n

\u201cMalaysian investors tend to feel that a proven track record is more important when investing in a company,\u201d Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew was quoted saying by The Malaysian Reserve.<\/p>\n

He claimed the investor base in Malaysia is not so receptive of tech-based start-ups, which typically rely on a different kind of business model than investors are used to.<\/p>\n

Pong claimed that the companies listed on Bursa Malaysia\u2019s Leading Entrepreneur Accelerator Platform (LEAP) which, despite presenting interesting opportunities, have not received recognition from investors.<\/p>\n

He said these companies do not have the track records of the more established firms, but they have promising business models.\u201cInvestors stand to lose out from the potential value that tech-based start-ups provide,\u201d Pong told the newspaper.<\/p>\n

The LEAP market was introduced by Bursa Malaysia in 2017 was aimed at providing alternative fundraising platform for small and medium enterprises (SMEs) that would otherwise be ineligible for a listing on the main or secondary markets.<\/p>\n

JF Apex Securities Bhd head of research Lee Chung Cheng said a company may opt to list in a market where it already has some business exposure.<\/p>\n

According to Lee, the trend of local start-ups looking to a list in Australia is relatively new as companies historically turned to Singapore and Hong Kong stock markets.<\/p>\n

Like Pong, Lee claimed the Malaysian stock market is not at all receptive to tech-based start-ups as investors are not very used to the idea even as he acknowledged the ASX policy allowing the listing of companies that have yet to prove themselves profitable plays a role in attracting such firms there.
\n\u201cMalaysian investors tend to feel that a proven track record is more important when investing in a company,\u201d Lee was quoted saying.<\/p>\n

There are currently 11 Malaysian start-up firms, mostly tech-related that are being traded on the Australia exchange.<\/p>\n

These include four companies under the Catcha Group such as iProperty Group Ltd (now trading under REA Group Ltd) and iCar Asia Ltd.<\/p>\n

If iflix is to be listed on the ASX, it will be the fifth company under the Catcha Group.<\/p>\n

Pong added there are several reasons a local company would consider listing abroad including securing a bigger profile in a major market and tapping into business connections in those markets.<\/p>\n

Other reasons include securing better valuations and seeking out a more liquid trading environment, not to mention a more attractive tax environment, he added.
\nSource: Malymail<\/p>\n","protected":false},"excerpt":{"rendered":"

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