KUALA LUMPUR, May 23, 2024 – The Malaysian government has several action plans to spur the startup ecosystem, with the ultimate goal of positioning Kuala Lumpur as one of the top 20 global startup hubs by 2030 – as mapped out in the KL20 Summit which took place last month.
Speaking at the launch of the DisruptInvest Summit this morning at Etiqa Twins KLCC, Minister of Digital YB Gobind Singh Deo highlighted that according to Startup Genome, Malaysia’s startup ecosystem is currently estimated to be valued at US$46 billion.
“With over 3,000 local startups in various sectors – from fintech and e-commerce, to health tech and Islamic finance – investors are spoilt for choice to find innovative ventures poised for success. Each startup represents an opportunity to shape the future of our digital economy.”
Malaysia is currently in 20th position in the World's Strong Starters Ranking list, based on the Global Startup Ecosystem Report 2023 published by Startup Genome. “Malaysia is unique in the sense that we are rich in diversity, multilingual capabilities, and strategic location, Malaysia is very well-positioned to seize the opportunities before it. We possess all the necessary ingredients to compete on the global stage – a vibrant, talented young population; unparalleled digital connectivity; world-class infrastructure; and most importantly, in a push led by our Prime Minister Dato’ Seri Anwar Ibrahim, we have a business-friendly outlook.”
Gobind added that by carefully selecting and supporting these startups, investors yield the power to drive transformative change and fuel sustainable growth in our local ecosystem.
“We have had many successful startups from Malaysia, and a lot more can and needs to be done. The Malaysian government has several action plans. The Malaysia Digital Economy Corporation (MDEC), for example, has facilitated 262 funding deals worth US$402 million between 2020 and 2023.”
Gobind also highlighted several other initiatives, such as the Investor Matching Programme, a platform where startups are matched with venture capitalists for investment opportunities; and the Founder’s Grindstone, a capacity-building programme for tech entrepreneurs, and promotes alternative financing options to assist micro-, small-, and medium-sized enterprises in sustainability and growth.
In recognising the importance of capital to the vibrancy of the startup community, the Malaysian government has recently announced the Malaysia Venture Capital Roadmap (MVCR), as well as several other key initiatives.
“The VC Golden Pass serves to attract world-leading VCs to Malaysia. It includes an exemption of work visa fees for senior VC executives and expedited licence approval for fund set-ups in the country. The VC Launch Fund aims to spur the creation of new local VCs. The VC Academy, meanwhile, creates opportunities for professionals looking to enter the industry,” added Gobind, highlighting the government’s commitment in addressing the specific pain points that had previously hindered more investments into Malaysia. “True investment is not merely about allocating capital. Neither is it just about numbers on the balance sheet. True investment is about fostering a legacy of prosperity and progress by investing in the betterment of society, and the advancement of humanity. By nurturing growth, resilience, opportunity, and meaningful relationships, we lay the foundations for a brighter future that will empower both individuals and communities to realise their fullest potential.”
Gobind added that as Malaysia assumes the ASEAN chair next year, the government is committed to ensuring that technological innovations reflect the values of empathy, equity and social justice – in order to build a conducive digital ecosystem for the country and the region.
