Malaysia aims to boost its tech startup sector by attracting more international venture capital (VC) investments, according to Economy Minister Rafizi Ramli.
Despite its status as a manufacturing hub, Malaysia's startup funding trails behind neighbors like Singapore and Indonesia, which secured 90% of the $7.7 billion capital raised by Southeast Asian startups last year.
To address this, Malaysia launched the Venture Capital Roadmap in April, targeting a venture penetration rate of 0.25%-0.35% by 2030. Initiatives include regulatory reforms, a "Golden Pass" scheme offering incentives and tax exemptions, and a 1 billion ringgit fund by sovereign wealth vehicle Khazanah Nasional. Additionally, local funds plan to establish the ASEAN Growth Initiative Fund with a 3 billion ringgit investment.
The recent depreciation of the ringgit against the dollar may further attract foreign investments, positioning Malaysia as a burgeoning regional VC hub by 2030.
Article by Norman Goh for Nikkei Asia. Read more here or in the PDF below.
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