Malaysia warms to private equity but problems exist

Private equity (PE) has been slow to take off in Malaysia, but there are signs that this may be changing.

Late last year, global investment firm Kohlberg Kravis Roberts (KKR) surprised the market when it paid $201.2 million for a "substantial minority" stake in Weststar Aviation Services - a Malaysian company that provides offshore helicopter transportation services to oil and gas firms.

This was KKR's first venture into Malaysia and is not expected to be its last. At the time, the firm's regional head for Southeast Asia, Ming Lu, said: "Malaysia is a key target market for KKR."