Emerging markets are stepping into the spotlight, offering unique opportunities for innovation and growth. One such market is Malaysia, which has been garnering attention for its supportive ecosystem for startups.
A decent ecosystem of local investment and governments has slowly built a thriving ecosystem of startups in the market. This has led to companies like Carro becoming a unicorn and a continuously growing startup and business ecosystem.
To understand why Malaysia might be the next hub for growth startups, we spoke with Terng Shing Chen, CEO of SYNC PR. With extensive experience working with fast-growth companies across Southeast Asia, Terng shares his insights on what makes Malaysia an attractive destination for budding entrepreneurs.
You've said Malaysia is a promising hub for startups. What do you think are the primary factors contributing to this perception?
Malaysia's growing reputation as a startup hub can be attributed to several key factors. I think that the government has been very supportive of the startup ecosystem. There are multiple grants and funding programmes available to entrepreneurs, which have been laying the groundwork for multiple new industries. There has been considerable improvement in access to these funds to provide essential financial support during the early stages of a startup's journey. These initiatives are designed to foster innovation and encourage the development of homegrown unicorns, much like what we've seen in neighbouring markets.
In my experience, I believe Malaysia has an improving talent pool. Right now, the cost of talent remains relatively affordable compared to other markets, the quality and expertise of professionals are steadily increasing. This balance of affordability and capability is crucial for startups looking to maximise their resources.
Can you elaborate on the government grants and support available to Malaysian startups? How significant are these in driving startup growth?
The Malaysian government has implemented a range of initiatives aimed at nurturing the startup ecosystem. Programmes such as the Malaysia Digital Economy Corporation (MDEC) provide funding, mentorship, and market access to startups. Additionally, there are various grants like the Cradle Fund, which offers early-stage funding to tech startups, and the Malaysia Venture Capital Management Berhad (MAVCAP), which provides venture capital support.
These grants and funding programmes are significant because they offer much-needed financial resources to startups at critical stages. They help reduce the financial burden on entrepreneurs, allowing them to focus on innovation and growth. Moreover, the support goes beyond just funding; these programmes often include mentorship and access to networks that can be invaluable for young companies.
SYNC has worked with hundreds of fast-growth companies. How does your experience with these companies shape your view of Malaysia as a startup hub?
Working with a wide range of fast-growth companies has given us a comprehensive view of what makes a successful startup ecosystem. Malaysia has many of the key ingredients we look for: improving infrastructure, supportive government policies, access to funding, and a growing pool of talent.
I've been more actively involved in the startup culture over the last decade or so, and one of the standout features of the Malaysian startup scene is the sense of community and collaboration. Startups here are willing to share knowledge and resources, which helps everyone grow faster. This collaborative spirit is essential for building a robust startup ecosystem.
How does the talent pool in Malaysia compare to other markets in the region?
There has been continuous improvement over the years. What we have seen more and more is an increasing level of technical skillsets, which is important for most startups. Right now, the talent pool in Malaysia is becoming increasingly competitive. The country needs to continue to move towards a strong educational system that produces skilled graduates in various fields, particularly in technology and engineering.
Additionally, Malaysia's multilingual workforce is a significant advantage. English is widely spoken, which reduces language barriers and makes it easier for startups to operate in an international context. This is particularly important for tech startups that often need to engage with global clients and partners.
What advice would you give to entrepreneurs considering Malaysia as a base for their startup?
For entrepreneurs looking at Malaysia as a base for their startup, my advice would be to take full advantage of the resources available. Apply for the various grants and funding programmes, and leverage the support offered by government agencies like MDEC.
Networking is also crucial. Engage with the local startup community, attend events, and connect with other entrepreneurs. The collaborative nature of the ecosystem can provide valuable insights and opportunities. The community tends to be welcoming and building a strong base in the market is not that difficult.
Lastly, focus on building a strong team. With the improving talent pool, you have access to skilled professionals who can help drive your startup's growth. Malaysia offers a unique blend of affordability, quality talent, and supportive infrastructure, making it an excellent choice for startups.
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