Both KPMG and HSBC in their latest Emerging Giants in Asia Pacific 2022 report has listed 10 companies in Malaysia under the Leading 10 Emerging Giants category. This includes the likes of Boost Holdings, Exabytes, Jirnexu and Lapasar among others.
The report highlights that the Government’s efforts in upgrading its manufacturing sector via the government’s national policy on Industrial Revolution 4.0 (IR4.0), which includes the goals of moving the economy towards higher value-added processes via digitization, advanced manufacturing technologies and efficient resource utilisation.
Additionally, the report also states that Malaysia’s multi-pronged strategy that combines upgrading the digital skills of its population, encourages foreign and big local companies to invest in startups, and offers a host of programmes to support the growth of new technology firms and the startup ecosystem.
“The government’s focus is a smart one,” says Guy Edwards, Head of Technology, Media and Telecommunications, KPMG in Malaysia. “Rather than just looking to attract MNCs and foreign investment as it did in the past, now it wants to both grow its own advanced manufacturing base and add digital startups.”
Last year, Putrajaya launched its “Digital Investments Future5 Strategy”, a five-year plan aimed at attracting US$12 billion in investment for the country’s digital sector and the Malaysian Start-up Ecosystem Roadmap (SUPER) 2021-2030, a blueprint for building a startup ecosystem that can further drive local innovation.
“Already, one outcome has a been a big spurt in new companies, with particularly strong concentrations of startups in fintech, including Islamic finance, gaming and ESG-related services,” said Alvin Gan, Head of Management Consulting & Technology Consulting practices at KPMG in Malaysia.
“The country has all the right ingredients for startup companies to flourish. Financial insitutions must be committed to offering them the right support so these startups can scale beyond Malaysia,” said Karel Doshi, Head of Commercial Banking, HSBC Malaysia.
On another note, the report also highlighted is that while Malaysia is good at generating startup companies, what is harder is for these companies to find the right talent to scale up.
“People here understand technology and how innovation works, so there’s no shortage of good ideas,” Gan said.