Johor to allocate funds for start-up companies

THE Johor state government will allocate a fund for startup companies in its 2020 Budget to be tabled in November.

The provision of the fund is to ensure more such companies in the state are able to participate in e-trading activities.

International Trade, Investment and Utility Committee chairman Jimmy Puah Wee Tse said based on records, there were about 50 startup companies in Johor at present, with most located in Iskandar Puteri.

“I cannot say in detail as to how we (state government) will assist as the Johor 2020 Budget has yet to be tabled. But, what is certain is, there will be a system for us to assist from the aspect of funding. How the fund will be distributed is to be announced later.

“What is also important is for the people to know is that the state government understands the needs of these companies,” he added.

Puah told reporters this at a press conference in conjunction with the appreciation night for buyers of properties at the Frontier 3 Industrial Area at Ulu Tiram last Friday.

He said as far as he was aware, many startup businesses in Johor still had no access to the overseas market.

“We have had discussions with market players on the issue of these startups. Although there is a startup community at present in Johor, they are not focused.

“They also do not have overseas access from Malaysia or Johor, while needing a network to link them to places like the Silicon Valley to seek out mentorship, meaning those who are more experienced, successful and can nurture as well as provide views on finding venture partners to collaborate on certain projects.

“In this regard, I feel the ecosystem is very narrow and this will delay the growth of the Johor startups,” he added.

According to Puah, upon realising this situation, the state government saw this as a matter of urgency and are discussing with two Silicon Valley companies to secure their support in helping spur growth of the ecosystem for startups.

He said the discussions began when he led a trade mission to the US recently.

“The two concerned companies are Global Silicon Valley and 500 Startups. Both are experts in the field with 500 Startups also active in Asia and has branches in Thailand and China.

“We hope that through the discussions, both can come up with a blueprint of sorts or something to delve deeper into the startup ecosystem we have,” he added.