A survey by the Malaysian Global Innovation and Creativity Centre (MaGIC) saw a 64 percent decline in sales by startups and small and medium enterprises (SMEs) during the Covid-19 outbreak.
According to the survey, 21 percent said they needed between RM251,000 to RM500,000 (US$62,500 to US$124,500) to sustain their business until the end of 2020, while 16 percent indicated that they needed more than RM500,000.
Speaking at Cyberview’s ‘Financing the Future: Investing in Creating and Building Digital Business Models’, Cyberview’s Head of the Technology Hub Development Division, Shafinaz Salim said emerging startups have to evolve due to the outbreak.
“For businesses to survive, they need to capture the markets that are available in the country but for startups it is all about commercialisation.
“Commercialisation will enable startups to be different from one another in the ecosystem,” she said.
In May 2020, the Ministry of Finance allocated RM100 million to fund the Technology Start-up Funding Relief Facility, to assist tech startups affected by the outbreak and lockdown and was expected to benefit up to 80 local startups.
Pandai Education Sdn. Bhd. was one of the startups that benefitted from the Government’s efforts in sustaining the startup ecosystem.
“When the outbreak hit, we started to look for fundings and we managed to raise funds from the National Technology and Innovation Sandbox (NTIS) for a total of RM500,000,’ Chief Executive Officer (CEO) of Pandai Education Sdn. Bhd.,” Khairul Anwar said.