In a recent interview with TNGlobal, Malaysia’s Minister of Science, Technology and Innovation Chang Lih Kang detailed the government’s plans to drive Malaysia’s science, technology and innovation (STI) agenda. He also discussed several initiatives to solidify Malaysia’s position as a leading regional tech hub.
Malaysia is aiming to break into the top 20 countries in the global startup ecosystem index by 2030, with plans to transform its capital city Kuala Lumpur into a bustling regional startup and digital hub, as previously highlighted by Prime Minister Anwar Ibrahim.
Looking ahead, as Malaysia takes on the ASEAN Chairmanship in 2025, Minister Chang also outlined some of the efforts to position ASEAN as a globally competitive innovation hub while simultaneously addressing critical economic and social challenges.
He also further explored the ministry’s specific plans for the current year and provided insights into the overall outlook of Malaysia’s dynamic tech ecosystem.
What are the Ministry of Science, Technology and Innovation (MOSTI)’s plans for 2025? What will be the ministry’s focus in 2025?
In 2025, MOSTI will strengthen collaborations at multiple levels, working closely with other ministries, agencies, state governments, and international partners to drive Malaysia’s science, technology, and innovation (STI) agenda.
A key initiative is the Malaysia Innovation Index (MII), which will serve as a benchmark to measure innovation activities and programs at the state level. This will help establish best practices and create a more structured and data-driven approach to fostering innovation nationwide.
MOSTI will also play a crucial role in ASEAN’s chairmanship by leading the ASEAN Startup Initiatives, aimed at enhancing cooperation among ASEAN member states in the tech and entrepreneurship ecosystem. We will continue to engage multiple stakeholders to cultivate science, technology, and innovation (STI) awareness, particularly among students and youth, ensuring that Malaysia nurtures the next generation of innovators and technopreneurs.
To enhance service delivery, MOSTI is improving its research, development, commercialization and innovation (R&D&C&I) funding process by streamlining compliance requirements, making it easier for researchers and businesses to access grants and funding.
Additionally, we are committed to strengthening Malaysia’s space industry ecosystem through strategic collaborations both domestically and internationally.
The full enforcement of the Malaysian Space Board Act 2022 (Act 834) will not only regulate space activities but also open new opportunities for local industries to venture into high-tech sectors, reinforcing Malaysia’s technological sovereignty. Another major focus is accelerating local technology commercialization through MySTI.
A new initiative, Dana Uji Beli, launched by MTDC in 2024, will support local R&D products and services by helping Malaysian companies secure government procurement opportunities. This fund aims to boost market adoption of homegrown innovations and drive Malaysia’s transition into a globally competitive, high-tech economy.
With these strategic initiatives, MOSTI is dedicated to positioning Malaysia as a leader in STI, driving economic growth, fostering innovation, and strengthening our global competitiveness in 2025 and beyond.
What is the 2025 outlook for Malaysia’s tech ecosystem?
Malaysia’s tech ecosystem is poised for strong growth in 2025, supported by strategic policy initiatives, economic resilience, and increasing digitalization. While global uncertainties, such as US tariff policies and shifting trade dynamics, may pose challenges, Malaysia’s robust domestic policies and proactive measures will help mitigate these risks.
The 2025 Budget reflects the government’s commitment to enhancing economic complexity through technology-driven innovation and digitalization, reinforcing Malaysia’s position as a competitive player in the global tech landscape.
To boost the startup ecosystem, Khazanah Nasional is establishing a National Fund-of-Funds with MYR1 billion ($225 million) to support venture capital fund managers in investing in startups, alongside additional support for tech startups through Cradle Fund. This initiative will accelerate technology advancements and enhance funding accessibility for Malaysia’s growing pool of innovators and entrepreneurs.
The launch of the Johor-Singapore Special Economic Zone (JS-SEZ) will serve as a major catalyst for foreign direct investment (FDI), attracting high-value projects and global investors. With a goal of securing 50 strategic investments and creating 20,000 skilled jobs within five years, the JS-SEZ will drive innovation in AI, digital technology, aerospace, medical devices, electrical and electronics, chemicals, and pharmaceuticals.
This initiative will enhance expertise, facilitate technology transfer, and expand local commercialization opportunities, strengthening Malaysia’s position as a regional tech hub.
With these targeted efforts, Malaysia’s tech ecosystem is set to flourish, fostering new opportunities for businesses, strengthening local capabilities, and driving long-term technological and economic growth.
MOSTI has introduced Startup ASEAN in December 2024. Could you provide more details about the initiative?
In December 2024, Malaysia’s Ministry of Science, Technology, and Innovation (MOSTI), through its agency Cradle Fund Sdn. Bhd., launched Startup ASEAN, a regional initiative aimed at positioning ASEAN as a globally competitive startup hub. Startup ASEAN is a regional database of ASEAN startups and investors which would be the definitive directory and starting point for venture creation.
The database also serves as a ”marketplace” for startups to establish contact with investors, as well as a platform for investors to build their potential startup investment portfolio.
This platform is designed to foster startup-friendly policies, enhance ecosystem readiness across ASEAN nations, and drive impactful collaborations to strengthen the region’s innovation landscape.
The Startup ASEAN platform is currently being populated by Cradle Fund Sdn Bhd with content for startups and ecosystem partners from across the region to collaborate, innovate, and contribute to ASEAN’s growing status as a leading ASEAN ecosystem hub for entrepreneurship and technology.
We anticipate the official launch of the platform in the upcoming KL20 event in June. A task force comprising representatives from all ten ASEAN Member States—Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam—has been established to drive the initiative forward.
MOSTI is in the process of consulting stakeholders to identify focus areas for Startup ASEAN such as sustainability, disruptive innovation, and financial inclusion to be proposed to ASEAN Member States to enhance market access, facilitate investment flows, and promote technology exchange. Malaysia hopes that Startup ASEAN will contribute to strengthening regional stability, expands trade, and promotes mutual growth.
What are the initiatives and policies for the tech startup ecosystem in ASEAN?
As Malaysia takes on the ASEAN Chairmanship in 2025, efforts will focus on positioning ASEAN as a globally competitive innovation hub while addressing pressing economic and social challenges.
Malaysia has been talking to several ASEAN Dialogue Partners including Korea, China and India on technology startup hackathon /pitch competition/startup accelerator initiatives.
These initiatives look into collaborative problem-solving with ASEAN-themed or corporate-based challenges engages startups across ASEAN that will encourage collaboration, innovation, and the development of solutions that have the potential to address challenges faced by multiple countries in the region.
These initiatives will expand the regional startup ecosystem to a global network, connect with businesses and investors from the international arena and further strengthen cross-border ties with ASEAN Member States in the field of science and technology.
MOSTI anticipates that the details of these initiatives can be available in the second quarter of 2025 once the deliberation with ASEAN Dialogue Partners on these initiatives are finalized.
With these initiatives, Malaysia’s chairmanship in ASEAN 2025 is set to accelerate startup growth and promote cross-border collaboration to make the region more attractive for talent, innovation and investment.