New initiatives to boost country’s digital transformation

PETALING JAYA: The Malaysian startup ecosystem will receive a boost next year with an allocation of RM1bil for venture capital investments in selected sectors.

The Prime Minister announced in Budget 2018 that companies or individuals investing in venture capital companies would be allowed tax deduction equivalent to their investments, limited to RM20mil per year.

The Government will also extend the income tax exemption it gives to angel investors who invest in venture capital companies until Dec 31, 2020. The exemption is equivalent to their investments.

“These are smart, focused moves by the Government that will serve to attract more private capital into these areas.

“This could not have come at a better time, given the vibrancy of the local tech startup ecosystem today, which has already created its fair share of tech companies capable of competing on the regional and global stages,” said venture capital firm Cradle Fund Sdn Bhd chief operations officer Razif Aziz.

MaGIC ( Malaysian Global Innovation and Creativity Centre) believes that Budget 2018 reflects the importance of social innovation.

“Malaysia has so many aspiring entrepreneurs who need nurturing, guidance, mentoring and financing, and as we work to build greater collaboration between them and the corporate sector, we welcome the Government’s pledge to facilitate the testing of innovative ideas and new business models across all industries,” said MaGIC CEO Ashran Ghazi ( left pic).

A sum of RM100mil was also announced to expand the eRezeki, eUsahawan and eLadang programmes under Malaysia Digital Economy Corporation (MDEC).

“With eRezeki and eUsahawan going into their third year, we estimate that 150,000 people would be trained next year, resulting in an estimated total income and revenue of RM544mil,” said MDEC chief executive officer Datuk Yasmin Mahmood ( right pic).

The new eLadang initiative encourages farmers to leverage the latest smart farming technologies to improve yield and income.

The Prime Minister also said the world was on the brink of Industrial Revolution 4.0 so all registered taxi drivers who wished to shift to e-hailing services will get a RM5,000 grant to buy a new car.

“We welcome this move to empower more Malaysians with the choice to use technology for flexible earning opportunities, and to raise their socio-economic status,” said Uber Malaysia and Singapore general manager Warren Tseng.

This move is also in line with Grab’s vehicle financing partnership with Perodua.

“Under this initiative, Grab provides Malaysian-made cars at a reduced price, enabling more taxi drivers to own a car and be part of e-hailing services,” said Grab Malaysia country head Sean Goh.