As the Malaysian startup industry continues to grow, there is a sense of optimism in the industry that it just might reach a similar trajectory to Vietnam’s growth or attract more investment like Singapore. Furthermore, the government has stated their support with strong promises in the Twelfth Malaysia Plan (12MP) focusing heavily on digitalisation for SMEs and startups.
There are also existing initiatives pushed by organisations like MDEC, Cradle, MaGIC and more that are in place to fuel the startup industry in Malaysia.
However, there is still a feeling that there has been enough done to help spur growth in the industry. Startup founders often feel that there is never enough funding to go around in the market, as well as the lack of infrastructure lends uncertainty to their ability to stay competitive compared to the rest of the region.
Startup founder, Chen Terng Shing, who runs SYNC PR, a PR and content marketing startup, believes that Malaysia has the most potential in the region for growth, but the startup industry is underserved. They just won APAC Insider’s Best Startup PR agency in Southeast Asia and have seen over a 40% increase in demand in the market from startups looking to scale their business.
He said that the marketing industry in Malaysia often overlooks the startup and medium-sized businesses industry to focus on either the large MNCs or the MSMEs in the market. This has led to a very large gap that isn’t being properly addressed and that can limit the startup industry’s ability to grow. Their options are either expensive or hyperlocal without the ability to adapt and scale according to a fast-growing company’s requirements.
Commenting on the issues startups face, Terng said, “Our clients are looking for solutions that can scale with their growth and fit their needs. Traditional models often fall short of startup requirements, because they do not take into account the speed at which startups grow and evolve. Traditional cycles can often be measured in years, while we have to take it quarter by quarter for the most part as startups can triple in valuation within a very short time.”
SYNC has worked with over 250 startups in Southeast Asia, with over 30% being Malaysian-based startups.
But, do startups in Malaysia have enough resources and opportunities to take the next leap? According to Terng, they definitely do. “Necessity is the mother of invention and innovation and over the last four years of working closely with Malaysian startups, they are extremely resourceful and in my opinion, have the most potential for growth in the region.”
There is still a lot more to be done though. Terng opined, “The fact shouldn’t be if Malaysia’s startups will succeed, but when they will. The opportunity lies in providing them with the infrastructure, resources and solutions that will help them reach an even playing field against global competition.”
