KUALA LUMPUR (Dec 4): Despite a global climate of caution and narrower fundraising windows, Malaysia’s early-stage funding ecosystem has shown resilience, says Khazanah Nasional Bhd managing director Datuk Amirul Feisal Wan Zahir.

Over the past 2½ years, the country attracted over US$360 million (RM1.48 billion) in early-stage funding, a figure he cited as a signal of persistent investor commitment.

"Founders continued building despite narrower fundraising windows and investors continued backing founders despite softer global markets. That persistence on both sides is what trust looks like in practice," he said in his keynote address at the Malaysian Venture Forum 2025 held at Affin Tower TRX.
 
However, Amirul Feisal noted that the domestic venture capital and start-up ecosystem still faces cultural hurdles, specifically a low tolerance for failure.

"Ecosystems only deepen when people are allowed to try and fail, recover and try again. If we want deeper innovation, we must allow founders the time and trust needed to build something enduring," he said.

He stressed that innovation and time are inseparable, but time is only afforded when there is trust in the process.

Touching on the role of government-linked investment companies, Amirul Feisal positioned initiatives such as Khazanah’s Dana Impak, Jelawang Capital, and Pension fund Kumpulan Wang Persaraan’s (KWAP) Dana Perintis and Dana Pemacu as mechanisms to provide continuity when short-term market conditions turn uncertain.

He described these initiatives as designed to "crowd in" capital investment and widen the base of fund managers, rather than dominating the space.

"For global investors, reliability is the first condition for conviction. It means founders deliver on what they commit, investors behave with discipline, regulators uphold standards consistently, and capital moves with accountability.

"The region does not need to become a global powerhouse. It needs to function predictably as a place where good companies can be built,” he said.

Amirul Feisal said Malaysia must position itself as a reliable platform, enabler and connector to support the broader trajectory of Asean's private capital ecosystem.

He said the country’s role is not necessarily to set the direction for the region, but to use its institutions to create access and build capabilities.

"Malaysia plays the role of an enabler by using its institutions to create access rather than set the direction. Our investors, regulators, and policy agencies help build capabilities, strengthen early-stage debt, and crowd in capital.” 

He added that Malaysia’s neutral standing allows it to lower the "friction of collaboration," making it easier for ideas and investment to move across borders.

"We offer a stable and predictable environment where capital, talent, and companies can anchor before growing into larger Asean markets. This reliability helps make regional opportunities more legible and more investable," he added.