Prime Minister Datuk Seri Anwar Ibrahim announced Malaysia's ambitious goal to rank among the top 20 countries in the global startup ecosystem index by 2030, with Kuala Lumpur serving as a regional startup and digital hub. The announcement was made during the KL20 Summit 2024, a two-day event that began on 22 April 2024.

The Premier emphasised the government's determination to support startups through clear policies that align with the country's vision, resources, and investor perspectives. He reaffirmed the government’s commitment in creating a dynamic startup ecosystem that positions Malaysia as a central hub for entrepreneurship and innovation. By attracting startups from around the world to set up operations in the country, the government aims to drive Malaysia up the value chain and demonstrate its ability to compete on a global scale.

Malaysia’s plans include the development of Southeast Asia’s largest integrated circuit design park with incentives such as tax breaks, subsidies and visa exemption fees to attract global tech companies and investors.  Anwar elaborated that the park would house world-class anchor tenants and collaborate with global companies such as British chipmaker, Arm Holdings. Currently Malaysia is a major player in the semiconductor industry, accounting for about 13% of global testing and packaging.

He further stated that Malaysia’s sovereign wealth fund, Khazanah Nasional, will be launching a fund to invest in innovative high-growth Malaysian companies, with an initial allocation of 1 billion ringgit aimed at kick-starting new policies to support Malaysian start-ups.  There are also plans for high-tech companies to set up their operations, research and development (R&D) facilities, and regional headquarters to serve the Asian and Southeast Asian market.

What it means for the UK sector

Malaysia's push to become a key regional player in the global startup ecosystem highlights the country's commitment to fostering a knowledge economy underpinned by innovation, research and development (R&D) and entrepreneurship. The present initiative leverages on Malaysia’s strategic location in Southeast Asia that enables accessibility to other major markets in the region.

Based on the current trajectory, there is significant potential for the UK to develop strategic collaborations in Malaysia in research initiatives and transnational education (TNE), in areas that align with the country's emphasis on sectors such as semiconductors, AI, agritech, cleantech, and Islamic finance.  These collaborations could form the basis for innovative multilateral TNE partnerships in the region, given Malaysia’s strategic location in Southeast Asia.

This also presents the opportunity for the UK to engage with the key stakeholders in the Malaysian higher education and entrepreneurial sectors for capacity and talent development initiatives that meet the demands of the government’s aspiration to create high-skilled and high-value jobs, and develop a talent pipeline of entrepreneurs and senior leaders in technology.

Sources:

Malaysia aims for top 20 global startup ranking by 2030, KL to become regional hub - Anwar (nst.com.my)

https://thesun.my/local_news/malaysia-plans-southeast-asia-s-largest-integrated-circuit-design-park-DF12359039