Malaysia is on a mission to become a top player in the global startup arena. 

With a goal to propel Kuala Lumpur among the top 20 global startup ecosystems by 2030, the country is taking bold steps to foster innovation, collaboration, and investment.

At the KL20 Summit 2024, spearheaded by the Ministry of Economy, the Malaysian Government showcased ambitious plans to create a dynamic entrepreneurial ecosystem in the country. The aim is to create an environment that nurtures talent and attracts investment, making Malaysia a leading centre for entrepreneurship and innovation in the ASEAN region.

At the heart of the Summit was the KL20 Action Paper, launched by Prime Minister Dato’ Seri Anwar Ibrahim. This comprehensive roadmap outlines tangible reforms to achieve convergence among key stakeholders – founders, venture capitalists, talent, incubators and accelerators – to propel Malaysia’s startup tech sector to new heights.

Some of the key initiatives introduced include the Innovation Pass to ease talent access, the VC Golden Pass to make investing and deal-sourcing more regular, and the KL20 GPU Scheme for  AI infrastructure enablement.

Plans to launch the Single Window initiative under the Ministry of Science, Technology and Innovation were also unveiled. This initiative will simplify procedures and consolidate resources for startup founders, investors, and tech talents within a unified platform.

The Government has also developed the Malaysian Startup Ecosystem Roadmap (SUPER), which identifies key areas of focus and action to drive the expansion and development of the startup ecosystem in Malaysia. 

It addresses critical areas like talent development, funding accessibility, ensuring market access, and driving innovation in technology and social impact.

With these initiatives, Malaysia sets the stage for a transformative tech ecosystem, catalysing innovation and entrepreneurship across ASEAN.

Marquee Initiatives Announced

1. A vibrant startup community
   • Innovation Belt: a ‘belt’ of vibrant innovation hubs, bringing together a full community of ecosystem players in one place;
   • Unicorn Golden Pass: globally recognised startups setting up a significant presence in MY, acting as the centre of gravity for startup hubs and infusing talent into the ecosystem.
2. A large addressable market
   • Startup City Connect: deep collaboration and integration between Malaysia and other major regions/economies, allowing startups to operate seamlessly across markets.
3. Available funding at all stages
   • VC Golden Pass: three to five regional venture capital firms with a strong track record setting up a presence in Malaysia to engage with and invest in the local startup ecosystem;
   • VC Launch Fund: creation of five first-time, local venture capital firms to widen funding options for seed and early-stage startups in Malaysia’s startup ecosystem;
   • VC Academy: a programme to upskill professionals looking to enter the venture capital industry, with comprehensive and practical resources on Malaysia’s startup ecosystem;
   • Startup Seed Grants: all promising and early-stage startups have access to funding, scaling the pace of investments at the start of the deal flow cycle.
4. Access to high-calibre talent
   • Innovation Pass:  create a holistic visa programme that makes it attractive and easy for founders and talent to work in Malaysia, building up capabilities required for the startup ecosystem to thrive;
   • Founder & Talent Relocation Service: one-stop service to facilitate a seamless experience for foreign talents moving to Malaysia, addressing their relocation and lifestyle needs; 
   • Executive Digital Leadership: a three-month programme to equip leaders with critical digital capabilities and knowledge to uplift Malaysia’s digital economy via the transformation of their organisation.
5. A seamless business environment
   • Startup concierge: a one-stop concierge service for high-potential startups, providing direct support with their business setup, operation, and growth activities;
   • Single Window: a one-stop website including all critical information relevant to startups and venture capital firms, covering business operations, market information, and other resources;
   • KL20 GPU Scheme: provision of world-class artificial intelligence (AI) infrastructure to startups in Malaysia, laying the foundation for Malaysia to become a regional leader in AI.