Salam Malaysia MADANI and a very good morning to all.
1. Allow me to first and foremost welcome you to the KL20 Summit 2024. It is both a privilege and a pleasure to be here with you today, as we embark on this pivotal journey to build the startup ecosystem in Malaysia.
2. Malaysia is 20th in the World’s Strong Starters Ranking list, based on the Global Startup Ecosystem Report 2023 published by Startup Genome.
3. To unleash the country’s potential, the Malaysian government has laid out a series of action plans, with the ultimate goal of positioning Kuala Lumpur as one of the top 20 global startup hubs by 2030.
4. Together with my respected colleagues from other ministries – namely the Ministry of Economy; Ministry of Science, Technology and Innovation; and the Ministry of Finance – we are committed to seeing through the initiatives set out in the KL20 Action Paper, which will be launched by our Prime Minister, Dato’ Seri Anwar Ibrahim, shortly.
5. It goes without saying that we cannot achieve such an ambitious goal alone. The Ministry of Digital, our agencies, and my colleagues from the other ministries are eager to work with all of you. Whether you are a founder, investor, start-up ecosystem builder or enabler, we hope to work together with you, hand-in-hand, en route to achieving our shared ambitions.
Malaysia’s Digital Economy
6. Malaysia embarked on its digitalisation journey in 1996. We have, without a doubt, made great strides in building our digital economy through the decades. Currently, the Digital Economy contributes 23% to Malaysia’s gross domestic product (GDP), becoming one of the nation’s main economic pillars.
7. Building on the government’s commitment to developing the digital economy, the Malaysia Digital Economy Blueprint and the National 4IR Policy were formulated in 2021. Both the blueprint and the policy were introduced to set the direction of the industry while outlining the strategies, initiatives, and targets to build the foundation that will drive the growth of the digital economy.
8. The Malaysia Digital Economy Corporation, better known as MDEC, has facilitated 262 funding deals worth US$402 million between 2020 and 2023. Among its key initiatives include:
i. The Investor Matching Programme – a platform where startups are matched with venture capitalists for investment opportunities;
ii. Founder’s Grindstone – a capacity-building programme for tech entrepreneurs; and
iii. Alternative funding and debt financing, which promotes alternative financing options to assist Micro-, Small-, and Medium-sized Enterprises in sustainability and growth.
9. MDEC offers several technology grants and incentives, such as the Malaysia Digital Export Grant, Malaysia Digital Catalyst Grant, Digital Content Grant, and the Global Testbed Initiative.
10. MDEC also relaunched the Malaysia Digital (MD) programme which was previously known as MSC Malaysia. The Malaysia Digital programme is the new national strategic initiative to encourage and attract companies, talent, and investments, while enabling Malaysian businesses and the rakyat to play a leading part in the global digital economy.
11. Malaysia Digital offers successful participants access to:
i. List of Bill of Guarantees;
ii. Facilitation of Foreign Knowledge Worker visas and DE Rantau digital nomad visas;
iii. Access to Premier Digital Tech Institutions accredited by MDEC; and
iv. Talent upskilling and reskilling initiatives, enabling companies to have access to a workforce that is skilled in tech, such as AI.
12. In Q1 2024 alone, 193 companies were awarded the Malaysia Digital status – half of which are infotech companies leveraging on technologies like blockchain, Web3 and AI.
13. We have also recently signed an MoU with the world’s leading pre-accelerator, Draper University, to set up a base in Kuala Lumpur – its first campus outside Silicon Valley. This is vital in supporting and spearheading the pipeline of VCs, and startups looking to enter and expand in Malaysia.
KL as a start-up hub
Ladies and gentlemen,
14. Malaysia is ranked 32nd in the IMD World Digital Competitiveness Index 2023. This is because our country’s business environment presents endless opportunities to all stakeholders.
15. We are located right in the heart of Southeast Asia, between major global trade routes and financial hubs. The country is easily accessible to other markets such as Singapore, Thailand, Indonesia, Vietnam, the Philippines, and others in the Asia Pacific region.
16. Malaysia is also home to leading academic institutions and renowned Multinational Corporations. Such establishments produce and attract high-quality talents.
17. Leveraging on these advantages, Startup Genome estimates that Malaysia’s startup ecosystem is valued at US$46 billion and growing. We also have over 3,000 local startups in the ecosystem, operating in different sectors – from fintech and e-commerce, to health tech and Islamic finance.
18. Malaysia is eager to stamp its mark in the region. As such, this government is looking forward to our ASEAN chairmanship in 2025. We are already gearing up for it, and plans for engagements in the region are underway.
Ladies and gentlemen,
19. Over the next two days, you will be engaged in exciting roundtable discussions, dialogues, and showcases here at the KL20 Summit. The lineup features some of the best minds in Malaysia and beyond, with industry experts sharing their insights and expertise during their respective sessions.
20. I encourage each one of you to actively participate in those discussions, to share your experiences, and forge new connections. The diversity of perspectives is our greatest asset as we chart the course for Malaysia’s digital future.
Conclusion
21. Before I leave the stage, I would like to thank our Prime Minister, my colleagues, esteemed speakers, experts, and participants in this room for being a part of this summit.
I hope you all have a productive day ahead. Thank you.
