The government has been trying to position itself as Asia’s digital hub and actively encourages investments in emerging technologies such as fintech, e-commerce, and digital health. To do so, the government has introduced various incentive programs and grants to support tech startups and attract foreign direct investment. Besides foreign investments, Malaysia also needs local companies to support the digital economy.
The Edge Malaysia reports that Prime Minister Dato’ Seri Anwar Ibrahim announced that the government, along with government-linked investment companies (GLICs), will invest RM1 billion in additional funds to support local start-ups and encourage technopreneurs. The move is aimed at matching private funds and fostering the growth of the Malaysian start-up ecosystem, which was ranked 20th in the world according to The Global Startup Ecosystem 2023 report. The investment is part of the Ekonomi Madani plan, a new economic road map that includes various initiatives to boost the economy.
Under this plan, funds will be provided for each phase of a company’s growth, and existing programs such as Corporate Hackathon and MYHackathon will be expanded. Additionally, an extra RM100 million will be allocated to intensify research, development, commercialisation, and innovation, with a particular focus on areas like renewable energy, food security, and emerging growth sectors.
The government’s ultimate goal is to ensure that gross domestic expenditure on research and development reaches 3.5% of the gross domestic product and to position the country among the top 20 in the Global Innovation Index by 2025.
To drive digital economic reforms further, the government will introduce the “Digital ID” system to boost online businesses and related industries. Moreover, to accelerate the transition of small and medium enterprises into digitalized business models, the digitalization matching grant will receive an additional RM100 million.
