During the KL20 Summit 2024, Rafizi Ramli, Minister of Economy, emphasised the critical importance for Malaysia to seize the opportunity presented by the second wave of venture capital (VC) capital. Addressing an esteemed audience including Prime Minister Datuk Seri Anwar Ibrahim and various government officials, Rafizi Ramli outlined Malaysia’s strategic position amidst a rare constellation of global events.
Highlighting the unprecedented level of global dry powder, estimated at USD4 trillion in unspent capital according to Bain & Company’s 2024 Global Private Equity Report, Rafizi stressed the need for Malaysia to position itself as an attractive destination for investment. He pointed out that geopolitical tensions and the world’s recognition of Malaysia’s inherent strengths present an opportune moment for the country to attract VC capital.
““KL20” represents our ambition to bring Malaysia to the Top 20 startup ecosystems in the world. Within this concept is an emphasis on pragmatism and action,” Rafizi said.
Recognising Malaysia as a gateway to the East, he further underscored the importance of initiatives outlined in the KL20 Action Plan. These initiatives, including the VC Golden Pass, Innovation Pass, Unicorn Golden Pass, GPU Scheme, Innovation Belt, and the Single Window, aim to accelerate the critical areas of the startup ecosystem: capital, talent, and quality of startups.
Under the VC Golden Pass, Malaysia seeks to attract world-leading VCs to establish a presence in the country by offering a range of incentives, including subsidised office spaces and expedited licence registrations.
The Innovation Pass aims to enlarge the pool of high-skilled talent through a multi-tier employment pass program tailored to founders, senior management, and high-skilled talent in tech.
Moreover, Malaysia aims to become the Southeast Asian base for global technology companies under the Unicorn Golden Pass, offering incentives such as exempted fees for employment passes and concessionary tax rates on corporate profits. Additionally, the KL20 GPU Scheme focuses on providing infrastructure support for breakthrough solutions in AI technology.
Rafizi emphasised the importance of congregating ecosystem players in geographical clusters through initiatives like the Innovation Belt. He also announced the launch of the Startup Single Window, a one-stop center for information and application related to the startup ecosystem, aimed at streamlining processes for startups operating in Malaysia.
“Bringing these initiatives and Malaysia’s inherent strengths together, we will also make it easy and seamless to operate in Malaysia. That is why we will launch the Startup Single Window, that acts as a one-stop center on inconveniences and hiccups in the journey is often what derails the experience, and we are addressing them today,” Rafizi said.
The policies and schemes introduced during the KL20 Summit 2024 are poised to shape Malaysia’s trajectory as a gateway to the East and capitalise on the second wave of VC capital. The commitment of sovereign wealth funds, venture capital firms, and high-tech companies signals the beginning of a new chapter in Malaysia’s journey towards becoming a leading hub for innovation and entrepreneurship.
