Welcome speech of the Chairman of MVCA, En Azam Azman

Yang Berbahagia Dato’ Zarinah Anwar, Chairman of Malaysian Venture Capital Development Council (or MVCDC); Yang dihormati, Datuk Yusli Mohamed Yusoff, Chief Executive Officer of Bursa Malaysia Berhad; our esteemed guests Tan Sri and Puan Sri, Datuk and Datin, and of course, my peers from the Venture Capital and Private Equity industry; Assalamualaikum W.B.T. and a very good evening.

Thank you for being here tonight. It means a lot to us, as this is the first annual dinner for MVCA. As an association that represents Venture Capital or Private Equity firms for more than 10 years, it is timely for us to have this event. We hope this will become a regular platform for the practitioners to get together, to know each other, as well as for others to know who the players are.

More importantly however, during this dinner, we will be presenting the MVCA Recognition Award to listed companies that have been backed by our members. It is seldom recognised that behind every successful company, there is, or are, even more successful VC or PE firms. These firms often provide vital lifeline to the companies, allowing them to grow further.

What we hope to achieve through the award is to raise awareness about VC or PE firms’ role to the country’s overall economic growth. It is time that the industry players, through MVCA, work towards increasing their visibility; and more importantly, to share their “path to glory” stories to the funds of funds, pension funds, insurance companies, and other fund providers. As in more mature markets, all fund providers in Malaysia should acknowledge VC or PE as an asset class of its own.

Equally important; is to see how our members contributed in making those companies they backed, blossomed into maturity. That, to us, is the real contribution of a VC or PE firm to the capital market. The VC or PE firm is a partner to the entrepreneur. They have multiple roles to play-it could be a guide, a nurturer or a confidant. But most importantly, the partner is there, to see them through, until successful listing.

But lest we forget, VC or PE firms are not alone in making successful companies. There are others in this value chain, like the market intermediaries, such as the investment banks, lawyers and accountants, Bursa Malaysia, as the local exchange holding company, Securities Commission, and Bank Negara Malaysia as the regulators and of course, the investors, to complete the capital market eco-system.

Ladies and gentleman. As current Chairman of MVCA, I would like to see all VC or PE firms, regardless of them being part of a GLC, bank-backed, or Principal-owned firm, to come together, to support MVCA. After all, the industry is definitely growing in Malaysia and the Asian region.

For the year 2005, some 2.59 billion Ringgit has been committed for venture capital investments in Malaysia, an increase of 14% from 2.27 billion Ringgit the year before. Furthermore, according to Asian Private Equity Review, over 9.5 billion US dollars, or 33.25 billion Ringgit, came into the region in the first half of 2006, a 42.2% increase over the same period in 2005. By working together, we can increase the profile of this industry, and be part of this exciting growth.

At the same time, there is a need to increase the level of professionalism in this industry. With this in mind, MVCA plans to organise more relevant courses in the future.

Let me end my speech with my sincere gratitude to all involved in tonight’s event. Special mention to MVCDC, the Secretariat, MVCA members, and, not forgetting, our generous sponsors. We hope to be able to see, and celebrate, more successful companies, in the years to come. Thank you. Wassalamualaikum-warahmatullahi-wabarakatuh.