The Malaysian Government recognises the importance and value of the high-technology sector to the economy, both directly as a contributor to high-skilled employment and GDP, as well as indirectly through its utility in the Fourth Industrial Revolution, information and communications technology, and digitalisation.
In order to develop the hi-tech ecosystem in Malaysia, the government has decided to pursue a
two-pronged approach; firstly, to actively support local innovators in their efforts to scale their operations into regional and global markets, and secondly, to aggressively attract top global tech innovation companies to Malaysia.
One of the organisations most directly involved in this endeavour is MRANTI, or the Malaysian Research Accelerator for Technology and Innovation. MRANTI aims to accelerate the growth of Malaysia’s tech ecosystem by leveraging the strengths, resources, and wider network formed as a result of the two parties coming together.
The organisation acts as a connector, incubator, and catalyst; enabling tech entities of all stages, from early-stage ideation to maturity, to commercialise and scale their operations. The organisation offers innovators and industry access to world-class integrated infrastructure, interventions and programmes, partnerships, and a whole suite of resources. By doing so, MRANTI aims to expand Malaysia’s funnel of innovation supply, and unlock new R&D value by ensuring effective transitions in the commercialisation lifecycle.
Value proposition for tech innovators
The two major programmes that MRANTI offers tech innovators are the Global Market-fit Programme (GMP) and the MyStartup Hub (MSH) programmes. GMP is designed for innovators ready for expansion (Series A above) and maturing to the next stage – including regional expansion, while MSH is designed to help innovative companies from abroad set up their businesses in Malaysia, identify suitable talent, and facilitate market access.
The GMP is specifically designed for innovators in TRL 6 or Series A and above, as they aim for regional expansion. Since inception, 51 innovators have benefited from this programme.
In 2020, GMP facilitated 17 innovators to enter markets in Taiwan, India, Germany, the United Kingdom, and Hungary, through which several participants signed MOUs and NDAs with potential partners in these new markets.
For example, FAR Capital, an innovative property investment firm successfully incorporated in Indonesia has entered into agreements with Sepong Gardens, Nata Connexindo and JITU Real Estate. Meanwhile, edutech company AOne has signed an MoU with Kiddo.id, and has successfully penetrated the Indonesia market.
Last year, the GMP focused on China, the United States, and Indonesia. In China, MRANTI collaborated with TusStar, China’s largest technology incubator. Despite the pandemic-induced travel restrictions, MRANTI managed to conduct 20 business-matching sessions, involving more than 50 Mainland Chinese companies and more than 200 rounds of evaluation.
In Indonesia, MRANTI collaborated with PT Ruang Kreasi Berdaya (KUMPUL), a premier digital entrepreneurship ecosystem builder in Indonesia, helping Malaysian innovators gain access to Indonesia’s consumer market of 273.5 million people.
In the USA, MRANTI worked with US Market Access Center (US MAC), a tech accelerator located in Silicon Valley, and Pixel Play Ventures (PPV), a Venture Capital Management Corporation focusing on investing in rapidly growing early-stage companies that fits its ethical venture-build philosophy.
Meanwhile, through MSH, MRANTI aims to bring innovative global companies to set up Malaysian hubs to serve the ASEAN market. These companies will bring along advanced services and technologies that will enable job creation and knowledge transfer.
The MSH programme does not just promote Malaysia as a regional base to the ASEAN market, but it also facilitates these companies by assisting with company incorporation, local talent acquisition, and local market access.
To date, 29 companies from across three continents have participated in MSH, including companies from Singapore, Taiwan, Hungary, Japan, USA, Thailand, Hong Kong, India, China, Egypt, Indonesia, and Sri Lanka.
Currently, sustainable building solutions provider Bizsu and Handplus Robotics, both from Singapore, and financial services company Zetl from Hong Kong have registered their companies in Malaysia, while Singapore’s Insect Feed Technologies has entered a joint venture with a local company.
Both local and foreign tech innovators would be heartened by the fact that MRANTI’s efforts to improve and enhance the GMP and MSH programmes have seen a significant degree of progress.
In collaboration with the European Union, MRANTI has recruited innovative global innovators to establish business hubs in Malaysia. Subsequently, the MSH is being opened up to other international innovators, with the target being an additional 15 companies. MRANTI has also partnered with Startup Terrace to bring 10 Taiwanese Innovative companies to Malaysia. Amongst others, MSH will be offering incentives worth up to USD5,750 to selected global innovators that fulfil the commitments under the MSH programme.
The GMP will focus on Japan and Indonesia this year, with 10 innovative local companies having been selected for GMP Japan which runs from July to September. In Japan, MRANTI partnered with Tsucrea Co. Ltd, a professional entrepreneur supporter which operates more than 10 incubation centres. Given the early success of the partnership with KUMPUL last year, MRANTI is working with KUMPUL again this year to scale up Malaysian innovators to Indonesia. The programme is scheduled to run from September to November. Through the GMP, we target to accelerate the growth of between 10 to 12 Malaysian companies, with each company contributing RM500,000 in value creation within 12 months.
Tech innovators looking for more information on the MSH and GMP should visit https://www.mranti.my/msh and https://www.mranti.my/gmp respectively.
