The Ministry of Science, Technology and Innovation (MOSTI) in Malaysia is looking into several suggestions from the venture capitalist community to further support the tech ecosystem in the country.

The development came after a meeting between Minister Chang Lih Kang and venture capitalists on Thursday.

The minister said he had an insightful engagement session with leading venture capitalists to discuss fortifying the VC ecosystem in Malaysia. The meeting, initiated by Malaysia Venture Capital Management Berhad (MAVCAP), aimed to gather practical feedback and recommendations on how public policy can best support the growth and sustainability of local startups.

Among the key areas discussed were potential tax incentives, flexible regulations, and creative financing models that could provide a robust framework for startups to thrive, the minister said.

“The venture capitalists brought a wealth of experience to the table, highlighting specific gaps and opportunities that could be leveraged for positive impact,” he wrote in a Linkedin post on Friday.

“We recognize that a thriving VC ecosystem is essential for the successful commercialization of innovative ideas, and this collaborative meeting represents a significant step forward in this direction. Such cross-sectoral dialogues are invaluable, as they not only foster a constructive exchange of ideas but also contribute to shaping more effective and responsive policies,” he added.

The MOSTI team is committed to turning these insights into actionable plans, Chang said.

As the saying goes, “It takes a village to raise a child,” and it similarly takes an integrated ecosystem to raise a successful startup, the minister wrote.

“Thank you to all the participants for their candid feedback and actionable insights. Your support and contributions make all the difference. Together, we can drive innovation, bolster economic development, and make our nation a hub for entrepreneurial excellence,” Chang added.

Earlier in July, Prime Minister Anwar Ibrahim announced that the Malaysia government and government-linked investment companies (GLICs) will invest MYR1 billion ($211.12 million) in additional funds to match private funds in a bid to support local startups and encourage technopreneurs.

The initiative, which is one of several under the new economic road map, would include ensuring the provision of funds for each phase of a company’s growth, alongside expanding the implementation of programs such as Corporate Hackathon and MYHackathon, said Anwar Ibrahim in his speech at the launch of the so-called “Ekonomi Madani” plan then.

According to the prime minister, Malaysia ranked 20th in the world based on the report of The Global Startup Ecosystem 2023, valuing the Malaysian start-up ecosystem at $46 billion for the first half of 2020 to 2022.

It will also allocate an additional MYR100 million ($22.12 million) to intensify research, development, commercialization and innovation, with a focus on industrial needs, such as renewable energy, food security and new growth areas.

Feature photo credits: MAVCAP’s Linkedin

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