Government urged to strengthen startup ecosystem in Budget 2024 to stimulate national economy

The Malaysian government is being urged to focus on strengthening the startup ecosystem in Budget 2024 in order to boost the economy and foster the growth of more unicorns. According to Mohammad Hazani Hassan, CEO of the Malaysian Technology Development Corporation (MTDC), this should go beyond funding and encompass other aspects such as talent development, incubation programs, and the provision of advisory services for startups.

Hazani also proposed the implementation of a sandbox program to assist emerging technologies in validating their products and gaining market access. A sandbox program allows startups to test their products, services, business models, and delivery mechanisms in a live environment. By providing verification and regulatory compliance, this program would help startups bring their technologies to market and potentially attract more investments.

Additionally, food technology and the semiconductor industries were highlighted as areas that deserve attention from the government, according to Razalee Ismail, CEO of MERAQUE Group. He emphasized the importance of allocating resources, such as soft loans or grants, for research and development (R&D) to support innovators and startups.

Azarol Faizi, CEO of BATERIKU (M) Sdn Bhd, also called for the government’s assistance in reducing the cost of imports, particularly due to fluctuations in foreign exchange rates. He suggested that such cost reductions would enable local companies to offer their products at more affordable prices.

The 2024 budget, which will be presented on October 13 in Parliament, has the potential to bolster the startup ecosystem and drive economic growth in Malaysia.

Sources: Bernama (without URLs)