Analysis

Malaysia’s tech ecosystem is finally coming of age, and this is the moment to unlock Malaysia’s Underrated, Untapped and Unknown Unicorns-in-making. 

More and more venture capital (VC) firms and angel investors are wising up to the opportunity in investing in the region’s female founders. Despite the largely virtual deal-making environment over the past year due to COVID, women-led startups have secured multimillion-dollar rounds across a multitude of sectors.

Indonesia’s total retail market is on track to cross $300 billion in the next three years, and with e-commerce just reaching $30 billion in 2020, there are still excellent growth prospects. For example, the largest single share of groceries alone makes up over $70 billion, with estimates of online penetration barely crossing 0.5 percent in 2021.

Venture capitalists TechNode Global contacted opined that political issues will have little impact on investors' confidence in Malaysian tech startups. The tech industry in the country will continue to grow due to the ongoing pandemic which has accelerated digitalization.

The ongoing pandemic has helped to accelerate the uptake of BNPL as commerce increasingly moves online and consumers look for alternatives to better manage their finances.

The control on the physical and digital world that you get from your home is unprecedented and as Paul Chaney wrote in Digital Handshake, we are seeing a melding of electronic and face-to-face interactions, which is now accelerated by COVID-19.

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What will it take to realize Indonesia’s potential as the land of unicorns? In a nutshell, it entails a paradigm shift within Indonesia’s startup ecosystem. Instead of fast returns and quick gains, startups, traditional businesses and investors alike should focus on long-term sustainability.

The growing popularity of NFTs shows the increasing appeal and expanding applications of blockchain technology. It also evidences the growing appetite for digital decentralized investments as well as innovative ways to store value and generate gains or revenues from digital assets.

With the economy improving, and an internet and mobile-savvy market, the Philippines is also showing initiatives to encourage and advance the innovation space.