Several reasons:

(1) There is a huge funding gap in early stage & Series A in Malaysia. If this is not addressed, you won’t find companies making it to Series B, C & beyond https://twitter.com/navinmogan/status/1347331736787509248

(2) Many agencies locally giving out grants. But issue is not co-ordinated. Some have PE like criterias when assessing VC opportunities. The mismatch between reality & expectations. It is then that we start losing to other countries

(3) When approaching VCs, must be prepared to lose 90sen of every Ringgit invested. That one unicorn will outweigh all losses, like how Grab has been for Temasek (which explains why they are headquartered in Singapore)

(4) Another issue is that govt gives out money as loans rather than grants to VC firms. This money has to be repaid. Due to this, the behaviour towards analysing VC opportunities change drastically

(5) In rare instance that it is grants being farmed out, the criteria to make an investment is onerous, disqualifying many who do not make the cut due to them being at different stage of development

(6) It is this gap in the funding chain, and subsequently behaviour towards risk profile of VCs that needs to be addressed. Consolidation of agencies and streamlining of funding criterias required.