MYStartup platform, which received RM28 million in allocation for Budget 2024, will streamline and centralise the country’s currently fragmented startup ecosystem.
Economy Minister Rafizi Ramli said MYStartup platform will be a single window for all stakeholders in the ecosystem.
“This will streamline and centralise our currently fragmented ecosystem of 14 agencies and 20 funding programmes,” he said in his keynote speech during Asian Strategy & Leadership Institute’s (Asli) Banking and Finance Summit today.
Rafizi said that, on top of this reduction in bureaucracy, it is also providing tax incentives to angel and individual investors to encourage local funding through equity crowdfunding platforms.
“This will give the necessary jolt required for startups to circumvent the initial high costs of actualising ideas and grow the commercialisation pipeline,” he added.
The minister also said the government has identified five high-growth, high-value sectors (HGHV) to double its efforts to transition Malaysia towards high-income country by 2025.
Startup ecosystem is part of the “High-Growth, High-Value” (HGHV) sectors recognized alongside E&E industry, rare earths, modern agriculture and energy transition.
He said whilst it must be acknowledged that startups need to have clearer paths to profitability, growth remains an important indicator of good ideas.
“We must remain cognisant that the funding of sound ideas unlocks greater productivity within the economy, and spurs sustainable growth,” he said.
However, Rafizi said Malaysia’s biggest problem is expecting government to drive change.
“To create a healthy deal, the current status quo of high public expenditure, where the government is expected to execute much of the financing will not suffice.
“Large-scale progress is best undertaken by the banking and finance industry for organisation’s ability to spread risk, execute rapidly, and adhere to robust governance.
Rafizi also lauded the resilience of finance and banking industry to navigate the challenging economy in the last few years.
“With interest rate forecasted to drop in 2024, that will lead to a shortfall in in net interest income (NII) and a rebound in wholesale banking.
“In these newfound dynamics, the question becomes how best can the banking and finance industry optimise revenue growth through fee-based services,” he added.
