Advertisement
Malaysia
This Week in AsiaEconomics

Malaysia’s cunning plan for start-up dominance: if you can’t beat them, own them

  • The country has struggled to nurture home-grown tech success; now it hopes to steal a march on its rivals by becoming a venture capital financier instead
  • Officials hope that splashing the cash will eventually make Malaysia an attractive base, but in the meantime are aiming to pull the purse strings

Reading Time:8 minutes
Why you can trust SCMP
0
Malaysia is looking to tap into the surging value of Southeast Asia’s internet economy. Illustration: Dennis Yip
Tashny Sukumaran
As Vietnam, Indonesia and Singapore – the big boys of Southeast Asia’s start-up scene – jostle to be crowned the region’s undisputed hub for the sector, the movers and shakers of the industry in Malaysia are asking: do we even want to be in that tussle, and are we too far behind?
Malaysian government officials involved in promoting start-ups, along with private equity players and even local start-up founders, say the best way to play catch-up and make up for lost time would be to attract more capital and become a venture capital (VC) hive.

The insiders say that while it would be ideal for Malaysia to be the birthplace of the next generation of Southeast Asia’s mega tech companies, such as Grab or Tokopedia, there is equal – if not more – opportunity in being the country that substantially owns the fastest-growing start-ups.

If Malaysia-based capital becomes more involved in the scene, there could be dividends at home, giving the country more leverage to persuade these companies to set up operations within its shores and employ and train locals – a multiplier effect for both capital and jobs, say industry players.

And while Malaysia’s investment scene has long been staid – partly due to endemic risk aversion in a nation home to large pension and sovereign wealth funds that need steady returns – there is a consensus among young local players that Malaysia can, with the right political will, make this dream happen and tap into the surging value of Southeast Asia’s internet economy.

Singapore-based transport, delivery and digital payments giant Grab is the region’s first ‘decacorn’. Photo: Reuters
Singapore-based transport, delivery and digital payments giant Grab is the region’s first ‘decacorn’. Photo: Reuters

A report released this week said the sector was worth an eye-watering US$100 billion, and is only set to grow.

Advertisement