The existing regulations to support entrepreneur growth are too rigid and time-consuming, causing the country to lose talent to foreign countries.

Entrepreneur Development Minister Mohd Redzuan Md Yusof (photo, above) said due to this hindrance, his ministry would be reviewing the existing regulations, especially on the funding needed by start-ups.

"These companies need space to grow, but these regulations are hindering it.

"We have initiated the discussion with several agencies and we hope we could bring back these local entrepreneurs who already have traction overseas by providing them with the needed environment to grow," Redzuan told a media briefing today after announcing alternative funding for small and medium enterprises (SMEs).

The funding, under Warisan Quantum Management Sdn Bhd and RHL Ventures Sdn Bhd, has successfully raised up to RM50 million in funds. The SME Corp will add another RM40 million to the funding.

The programme is a co-funding initiative between the government and the private sector through SME Investment Partner (SIP), to enhance access to financing for SMEs by providing pathways to private investors.

Redzuan also said that the fund will be for start-ups that already have market capitalisation, but need funding to grow further.

"This would also complement the existing financing landscape for SMEs through the offer of both equity and debt financing to meet the financing needs of SMEs; finance mainly early-stage SMEs between one to three years of operation.

"This is a better spread compared to current venture capital financing, which is mainly for technology-based companies," he said.

- Bernama