Greetings from MASSA !

In this August newsletter, we are pleased to bring you a Feature from the Malaysia Private Capital Association (MPCA). We thank the good office of MPCA for this contribution.

MASSA was pleased to jointly organise the 6^th edition of the iDeas Xchange with Kolaxus and the Malaysia-Japan Economic Association (MAJECA), on 24 June 2026. This edition was convened in conjunction with the 34^th Annual General Meeting of the Malaysian South-South Corporation Berhad (MASSCORP) and the 35^th Annual General Meeting of MASSA, bringing together Members of both organisations with startup entrepreneurs and the wider business community.

MASSA’s 35^th Annual General Meeting convened on 24 June 2026. It was hosted by MASSA President, YBhg Tan Sri Azman Hashim, at Bangunan AmBank Group. The MASSA 2025/2026 Annual Report can be read here: https://www.massa.net.my/massa-2025-2026-annual-report/.

The Institute of Diplomacy and Foreign Relations (IDFR), together with the International Cooperation and Development Division (ICADD), Ministry of Foreign Affairs (Wisma Putra), invited MASSA to participate in a Workshop to Prepare for the Upcoming Symposium on the Malaysian Technical Cooperation Programme (MTCP), held from 14 to 16 August 2026 at Avillion Port Dickson. MASSA’s participation at the Workshop reflects the Association’s longstanding view that the private sector has a complementary role to play alongside Government in technical cooperation, particularly in translating capacity building into durable business and investment linkages with our South-South partners.

We want to thank our members, ex-officio, contributors, and partners for your support to date. MASSA remains committed to present to members, trade and investment leads from the South-South countries, as well as keep members appraised of the current and future-forward developments in Malaysia, and the region.

Several events to keep an eye out for are in the works, which include a forthcoming event with the Malaysia Private Capital Association (MPCA), and the 7^th edition of MASSA-Kolaxus-MAJECA’s startup sharing and meetup series, iDeas Xchange.

Do look for our weekly Circulars and postings in our website www.massa.net.my. We look forward to meet readers & members at MASSA’s upcoming events.

Ng Su Fun

Editorial MASSA

Tan Sri Azman Hashim
President
MASSA 

Bank Negara reported Malaysia’s GDP growth of 6.0% in the second quarter of 2026, up from 5.4% in the first, bringing growth for the first half of the year to about 5.7%. The expansion was led by services and manufacturing, the latter growing 7.3% on sustained global demand for electrical and electronics (E&E) products. Domestic demand held firm with private consumption up 4.8%, while credit to the private non-financial sector grew 6.4% and business loans expanded 7.2%, a sign that firms are still investing. Headline inflation remained contained at 1.9% for the quarter, and the Overnight Policy Rate was held at 2.75% at the July Monetary Policy Committee meeting.

In the first seven months of 2026, total trade reached RM2.160 trillion, crossing the RM2 trillion mark two months earlier than in 2025, while exports to ASEAN reached an all-time high of RM56.06 billion in the month of July alone. Bank Negara projects growth for the full year to remain within its forecast range of 4.0% to 5.0%, with recent developments suggesting the outturn could be nearer 5.0%. Household spending, the progress of multi-year projects in both the private and public sectors, and continued demand for E&E goods are expected to carry this momentum through the second half.

These are encouraging numbers, however, we should remain cautiously optimistic. The escalation of the conflict in the Middle East early in the year disrupted energy flows and lifted commodity prices, higher energy and freight costs are already working their way into production expenses, and a severe El Niño would place further pressure on food and commodity supply.

The global economy entered the second half of 2026 carrying the weight of a conflict-driven energy shock. Recent years have exposed vulnerabilities within the international economic system as conflicts in one part of the world can quickly disrupt food and energy security, as well as supply chain networks across continents. Questions of cost and efficiency are now being weighed together with geopolitical, climate and technological considerations.

Energy-importing and commodity-dependent economies across Africa, South Asia, Latin America and the Pacific face the sharper end of higher fuel, fertiliser and food prices, compounded by tighter financial conditions and elevated borrowing costs.

Today, the imperatives for business resilience call for diversified supply chains and trusted partnerships. Reinvigorating cross-border connectivity and cooperation is crucial. Trade, investment and the exchange of knowledge among developing countries remain a practical means of diversifying risk, shortening supply lines and building the productive capacity that insulates economies from shocks originating far from their shores. It is therefore clear that South-South cooperation remains relevant.

MASSA held its 35th Annual General Meeting on 24 June 2026. At the Meeting, the Association reaffirmed its commitment to bridge South-South cooperation through business partnerships, and to complement the initiatives of the Ministry of Investment, Trade and Industry (MITI) and its agencies, and the Ministry of Foreign Affairs (Wisma Putra). I would like to thank the Office Bearers and Executive Committee Members who continue to serve the Association for the term 2025/2027.

I appreciate the continuing support of all Members with your involvement at our regular meetings, events and webinars. I also wish to thank article and feature contributors from across the MASSA network, who have provided valuable and insightful articles for our readers and not forgetting the sponsors of our website.

Tan Sri Azman Hashim
President
11 September 2026

Building Malaysia’s Capital Ecosystem: MPCA and the Case for ASEAN

by Mr Ng Sai Kit, Chairman, Malaysia Private Capital Association (MPCA)
https://mpca.org.my/

Outlook: capital is available, but concentrated

We have to acknowledge the distinction between the volume of global capital and its accessibility. We observe that headline deployment figures conceal a significant narrowing of where capital actually goes. Artificial intelligence accounted for 77 per cent of global venture deal value in the first half of 2026, up from 53 per cent in 2025.

At the same time, capital formation in Asia has become correspondingly harder. Asia-Pacific venture funds raised US$161.7 billion across the whole of 2021, against US$15.3 billion in the first half of 2026. The two periods demonstrate that capital has not disappeared but it has become more concentrated, selective and demands a sharper value proposition.

Global mergers and acquisitions activity reached US$1.3 trillion in the second quarter of 2026, but 42 per cent of that value came from 34 transactions of US$5 billion or more, with corporate buyers accounting for US$893 billion against US$287 billion from buyouts. This underscores the importance of exit pathways and liquidity.

Malaysia’s next phase cannot rest on deal generation alone. A functioning private capital market depends on a complete cycle, described as the capital recycling flywheel: limited partner capital, professional managers, investments, value creation, exits, distributions and reinvestment. General partners cannot invest without limited partners, and limited partners do not re-commit without distributions.

Malaysia has to develop more credible exit routes to encourage capital commitment from institutional investors. Deeper mergers and acquisitions (M&A) market and public market opportunities, to allow private capital-backed companies to scale and eventually, to return money to their investors are imperative for stronger exit channels.

Domestically, MPCA has welcomed efforts to strengthen the LEAP Market as a pathway to public capital. The Association has advocates for targeted incentives to reduce the friction and cost of commercially sensible consolidation. Scale is what makes Malaysian businesses competitive regionally and attractive to strategic acquirers.

Looking ahead, MPCA has identified an Limited Partner (LP) Agenda as its next area of focus: deeper engagement with institutional allocators including pension funds, insurers, government-linked investment companies and corporates, alongside family offices and international investors. Instead of requesting capital, the approach now is to identifying the barriers to larger and repeat allocations, be it governance, track record, liquidity, reporting or manager selection.

Where the opportunity sits: Malaysia as an ASEAN gateway

Malaysia recorded 22 venture deals in the first half of 2026, representing approximately US$200 million in deal value. Singapore continues to account for the majority of venture deal value among the Southeast Asian markets tracked in industry data.

MPCA’s view is that matching that transaction volume is not the objective. The proposition to international investors is that Malaysia should be assessed as an investable base, an operating bridge, and a source of companies capable of scaling across ASEAN.

From semiconductors, data centres, palm oil, oil and gas, tourism and services, and to the shift from outsourced assembly and test toward advanced packaging and design, and the geographic differentiation within the country, with Penang and Kulim anchoring technology and semiconductors and Johor positioned for cross-border supply chain integration, alongside opportunities in urban revitalisation and in healthcare and aged care services. Malaysia is well positioned to be an investable base, an operating bridge and a source of companies capable of scaling across ASEAN.

Conclusion

The task ahead is a change of emphasis rather than of direction. The work of the past decade built Malaysia’s general partner ecosystem. The work ahead, is to build Malaysia’s capital ecosystem: a stronger domestic capital base, credible exit routes, capital returned to investors, and the confidence for those investors to commit again.

About MPCA

The Malaysia Private Capital Association (MPCA), formed in 1995 and formerly known as the Malaysian Venture Capital Association, represents leading and active participants in Malaysia’s venture capital and private equity industry. Its mission is to promote the growth of the private capital industry and advocate for policies that create a more supportive environment for investment activities. MPCA provides a platform for members to engage policymakers, exchange industry views, promote research and best practices, and strengthen professional standards. Its activities include industry forums, conferences, government dialogues, regulatory discussions and collaboration with international VC associations.

Among others, the Association also strives to:

• • stimulate the promotion, research and analysis of venture capital in Malaysia and in other countries.
• • promote cooperation among members, to encourage joint efforts and business undertakings among members as well as to provide a regular forum for the exchange of views amongst members.
• • develop and encourage the highest standard of professional ethics in the venture capital industry.

Activities of MPCA include:

• • Conferences and symposiums on venture capital and issues directly or indirectly related to it.
• • Regular forum among members on the latest issues pertaining to venture capital.
• •Conduct dialogues and make presentations to any governmental or public authorities or bodies on behalf of the members on regulatory issues and formation of new venture activities.
• • Collaboration with foreign venture capital associations for the advancement of the venture capital industry in Malaysia.

The Malaysia Private Capital Forum 2026

MPCA convened the Malaysia Private Capital Forum 2026 in Kuala Lumpur on 3 September 2026 under the theme “Malaysia Forward: Rewiring Capital Flows in an Ascending World”. The Forum brought together investors, fund managers, founders, corporates, policymakers and ecosystem partners. Deputy Finance Minister Liew Chin Tong delivered the keynote address.

• • Malaysia Private Capital Forum 2026: Calling for stronger capital formation, exit pathways and Asean-focused private markets strategy, The Star, https://www.thestar.com.my/aseanplus/aseanplus-news/2026/09/04/malaysia-private-capital-forum-2026-calling-for-stronger-capital-formation-exit-pathways-and-asean-focused-private-markets-strategy
• • MPCA Awards 2026 celebrate excellence and the shaping of Malaysia’s next chapter in private capital ecosystem, The Star, https://www.thestar.com.my/aseanplus/aseanplus-news/2026/09/05/mpca-awards-2026-celebrate-excellence-and-the-shaping-of-malaysias-next-chapter-in-private-capital-ecosystem
• • Malaysia must give investors clearer exits to unlock ASEAN capital, The Vibes, https://www.thevibes.com/articles/business/126966/malaysia-must-give-investors-clearer-exits-to-unlock-asean-capital

‣ President’s Statement

‣ Editorial

‣ Feature: Building Malaysia’s Capital Ecosystem: MPCA and the Case for ASEAN

‣ Diary of Events

‣ 24 June 2026
35th Annual General Meeting of MASSA

‣ 24 June 2026
MASSA-Kolaxus-MAJECA iDeas Xchange #6 at Bangunan AmBank Group

‣ 14-16 August 2026
Workshop to Prepare for the Upcoming Symposium on Malaysian Technical Cooperation Programme (MTCP) at Avilion Port Dickson

‣ Forthcoming Events

Tan Sri Azman Hashim, President of MASSA convened the Thirty-Fifth (35th) Annual General Meeting (AGM) of MASSA at the Boardroom, 26th Floor, Bangunan Ambank Group, Jalan Raja Chulan, Kuala Lumpur.

Tan Sri Azman Hashim delivered his address welcomed members in-person & virtually the meeting proceeded to unanimously adopt the Annual Report and the audited accounts of the Association for the year ended 31st December 2025.

The President thanked the Executive Committee and Office Bearers for their continuing support and MASSA members for their participation in MASSA events and activities.

The President also thanked Messrs Azman, Wong, Salleh & Co PLT for agreeing to continue to be the Association’s auditors for another term.

The MASSA 2025 – 2026 Annual Report can be read here:

• 2026 — August issue

• 2026 — April issue

‣ President’s Statement

‣ Editorial

‣ Feature: Malaysia Chamber of Commerce Indonesia (MCCI) and the Growing Business Opportunities in Indonesia

‣ Diary of Events

‣ 28 January 2026
MASSA-Kolaxus-MAJECA iDeas Xchange #5 at STEG Hotel Kuala Lumpur

‣ 5 February 2026
South Africa-Malaysia Trade, Investment Seminar and Business Matching Session at Holiday Inn Express Kuala Lumpur

‣ Forthcoming Events

Greetings from MASSA !

In this April newsletter, we are most pleased to feature a submission from Mr Mani Wannan Letchumanan, President of Malaysia Chambers of Commerce Indonesia (MCCI), introducing the Malaysia Chambers of Commerce Indonesia (MCCI) and sharing insights into the growing business opportunities in Indonesia. Readers can expect insights into Indonesia’s New Economic Outlook, Indonesia’s priority strategic sectors, and incentives. Also included is an introduction to Danantara Indonesia, a government-linked investment platform designed to facilitate large-scale strategic investments into nation-building sectors, including industrial parks & manufacturing, downstreaming, transport & logistics infrastructure, urban & strategic infrastructure, energy & renewable infrastructure and digital & data infrastructure.

In this Newsletter, we also report on the 5th edition of the iDeas Xchange, a startup meetup and sharing session series jointly organised by MASSA, Kolaxus and the Malaysia-Japan Economic Association (MAJECA) with the aim to provide a platform and occasion for startup entrepreneurs and corporates and businesspeople to meet. The fifth edition of iDeas Xchange was organised on 28 January 2026 with the support of FGV Holdings Berhad and the Malaysia Digital Economy Corporation (MDEC) at STEG Hotel Kuala Lumpur with the theme of Agriculture Innovation. 100 participants attended this event.

Additionally, MASSA was invited to attend a South Africa – Malaysia Trade, Investment Seminar and Business Matching Session held on 5 February 2026 at Holiday Inn Express Kuala Lumpur, organised by the South African High Commission in Malaysia, in collaboration with the Department of Trade, Industry and Competition (the dtic), South Africa. This Seminar was in conjunction with a South Africa Trade Mission to Malaysia. The delegation comprising 22 companies was led by the Department of Trade, Industry and Competition (the dtic), South Africa. The delegation comprise food and beverage, cosmetics and wellness, wines, defence, and military equipment sectors.

We are pleased to share that several forthcoming events are in the works. One to look out for is the Sixth Edition of iDeas Xchange which will be held in June 2026. Do keep an eye out for our weekly Circulars and postings in our website www.massa.net.my. MASSA is also keen to organise events & sharing sessions to highlight various markets, including Indonesia, Timor-Leste and more.

Finally, we want to thank our members, ex-officio, contributors, and partners for your support to date. MASSA is pleased to continue to share with members, trade and investment insights on, for and from the South-South developing countries and emerging markets, and on emerging trends and topics that may be of interest to business.

We look forward to meet members at MASSA’s upcoming events.

Ng Su Fun

Editorial MASSA

President’s Message

I would like to extend my sincere appreciation to the Malaysia South-South Association (MASSA) for the opportunity to share about the Malaysia Chamber of Commerce Indonesia (MCCI) and the growing business opportunities in Indonesia.

MCCI operates under the esteemed patronage of H.E. the Ambassador of Malaysia to the Republic of Indonesia. Formerly known as Malaysia Club Jakarta, we were rebranded in 2024 to better reflect our mission of representing and advancing the interests of Malaysian businesses across Indonesia. Today, MCCI serves as a dynamic platform dedicated to supporting Malaysian companies in their journey to establish, expand, and succeed in Indonesia.

Regionally, MCCI is part of the Malaysia ASEAN Business Chambers network, connecting Malaysian business communities across Thailand, Cambodia, Laos, Vietnam, Myanmar, the Philippines, and Indonesia. Within Indonesia, we are actively collaborating with the Singapore, Thai, and Philippines Chambers, alongside Indonesian national chambers, to establish the ASEAN Business Chambers of Indonesia. This initiative will further broaden opportunities and regional integration for our members across ASEAN.

At the heart of MCCI is our commitment to building meaningful connections. Through our monthly networking platform, ASEAN Vibes@Jakarta, and our signature Teh Tarik Talk—a business forum that brings people together over the familiarity of nasi lemak and teh tarik—we create spaces where relationships are built and opportunities are unlocked. Complementing this, our MCCI Business Support Services are designed to assist Malaysian companies in navigating the Indonesian market seamlessly and effectively.

I warmly invite MASSA members to engage with MCCI and participate in our upcoming programmes, particularly the Indonesia ASEAN Business Chambers Summit in July 2026. We believe this will serve as a valuable platform to explore partnerships, deepen regional collaboration, and unlock new growth opportunities in Indonesia and beyond.

We look forward to welcoming you to Indonesia and building stronger bridges together.

Mani Wannan Letchumanan
President
Email: mani@malaysiachambers.id
Mobile: +6281807976369

You may click on the following link to read more:

https://drive.google.com/file/d/10BNVvhG_qVYtsSZFr4rP3T6nRJceLX7Y/view?usp=sharing