KUALA LUMPUR: Economy Minister Rafizi Ramli said there was a pool of companies in the country which can go for Bursa Malaysia listing but do not.
This, he said, was because most major corporations tended to remain in their traditional sectors.
He said despite the nation's pivotal role as a global exporter in the electrical and electronics industry, its tech weightage in the local market remains notably low, standing at merely four to five per cent.
"If we compare our local stock exchange with some others, I think our technology weightage is very low. I think (about) four to five per cent.
"What a pity because this is a country that is recognised globally as one of the most important semiconductor players in the world," he said during a forum on "Malaysia to the World: Open for Tech Business" at KL20 Summit 2024 here today.
During the Covid-19 pandemic, Malaysia's tech supply chain was disrupted, impacting global industries reliant on locally-produced chips.
Rafizi said the country had missed out on the tech sector's bull run in the past few months and stressed that there was a need for a greater pipeline of local technology and startups for listing.
"If all of this happens, it would facilitate a sustainable pivot towards a high-value economy, where the government focuses more on regulation and ecosystem development, reducing its focus on funding and direct intervention, as these are the important prerequisites," he added.
Meanwhile, Retirement Fund Incorporated (KWAP) chief executive officer Datuk Nik Amlizan Mohamed said startup companies do not allocate enough funds for research and development (R&D).
"Malaysian corporations do not spend enough on R&D. And if they do spend, it is mainly on the exploitation of the current processes to improve what they are currently doing rather than exploring new avenues through R&D.
"Perhaps these companies should consider setting aside additional funds for R&D. For example, listed and tech companies usually allocate around 10 per cent of their budget for R&D.
"While this is a sizable amount, it often goes towards business improvements rather than venturing into something out of the ordinary," she said.
She encouraged Malaysian companies to explore the areas that can propel them to the next level.
KWAP, she said, was creating an innovation lab internally to experiment with ideas and undertake pilot projects to explore new avenues.
Nik Amlizan said KWAP was also focusing on investing in local startup companies to support their growth.
She said KWAP previously focused on the public market, adding that the shift towards investing in startup companies is based on six fundamental pillars.
"We are going to focus on six pillars and among them are financial technology, education, technology, civil and digital economy.
"Startups do not have the legacy issues faced by existing companies.Legacy issues involve transition and this requires a lot of spending," she added.