Kuala Lumpur’s Tech Startup Ecosystem Generates Over RM220 Billion In Three Years

Kuala Lumpur’s startup ecosystem has garnered significant recognition in the latest Global Startup Ecosystem Report (GSER) 2024. The city has been ranked among the top 30 emerging ecosystems, underscoring its rapid growth and substantial economic impact.

From 1 July 2021 to 31 December 2023, Kuala Lumpur generated more than RM220 billion (USD47 billion) in Ecosystem Value, a metric measuring the city’s economic impact from the value of exits and startup valuations.

“The Ecosystem Value and the achievements recorded validate the country’s continued focus to invest and develop the tech startup ecosystem. Recognising this, I would also like to acknowledge the role and impact of all related agencies, ministries and organisations through the recently launched MYStartup Single Window platform. The Ministry of Science, Technology and Innovation (MOSTI) will continue to spearhead this effort to realise our vision to become the top 20 global startup ecosystem by 2030 as outlined in the Malaysia Startup Ecosystem Roadmap (SUPER) 2021-2030,” said YB Tuan Chang Lih Kang, Minister of MOSTI.

Cradle Fund Sdn Bhd (Cradle), as the focal point agency for Malaysia’s startup ecosystem, praised the achievements, noting that they are a testament to the strategic initiatives and efforts to foster a conducive environment for startups. “Malaysia views startups as a pivotal force in driving local innovation and technological advancement. Cradle seeks to combine the resources and experiences of all ecosystem stakeholders. With a consistent commitment to cultivating a high-performing, inclusive, globalised, and sustainable ecosystem, Cradle envisions propelling Malaysia to the forefront of the global startup ecosystem,” said Norman Matthieu Vanhaecke, Group CEO of Cradle (pictured above).

In the GSER 2024 report, Kuala Lumpur’s ecosystem has achieved notable rankings in several key areas within Asia:

  • Top 15 Asia Ecosystem in Funding: Highlights Kuala Lumpur’s innovation capacity through robust early-stage funding and active investor participation.
  • Top 20 Asia Ecosystem in Performance: Reflects the ecosystem’s overall size and success, considering the cumulative value created by tech startups through exits and funding.
  • Top 20 Asia Ecosystem in Talent & Experience: Acknowledges Kuala Lumpur’s strong long-term trends in crucial performance factors, showcasing the depth of talent and experience in the ecosystem.
  • Top 25 Asia Ecosystem in Affordable Talent: Measures the city’s ability to attract and hire tech talent cost-effectively, emphasising its competitive advantage in building a skilled workforce.
  • Top 30 Asia Ecosystem in Bang for Buck: Measures the amount of runway tech startups acquire, on average, from a VC round.

Educated talent and ease of doing business are cited as key reasons why startups should consider moving to the ecosystem.

The GSER 2024 analyses data from over 4.5 million startups across 300 global ecosystems, providing fresh insights on global trends and policy advice to more than 160 economic and innovation ministries, as well as public and private agencies in over 55 countries.

To access the Startup Genome Report 2024, please visit Startup Genome Report 2024.

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