KL20 Summit 2024 to propel M’sia as major global startup hub
KUALA LUMPUR: The KL20 Summit 2024, which kicked off on 22 April at the Kuala Lumpur Convention Centre, represented a significant milestone in Malaysia’s quest to become among the Top 20 global startup hubs by 2030.
The purpose of the event is to further establish the country as a leading destination for startups and venture capitalists.
Prime Minister Datuk Seri Anwar Ibrahim introduced the KL20 Action Paper, a roadmap out to bring together key stakeholders and drive reforms in Malaysia’s startup technology sector with the goal of taking it to unprecedented levels of success.
One of the event’s highlights was the signing ceremony for the Malaysia Semiconductor Accelerator and Integrated Circuit (IC) Design Park with partners, including Arm Ltd, Phison Malaysia, SkyeChip and the Shenzhen Semiconductor Industry Association.
This initiative signified a major effort by the Selangor government and the Selangor Information Technology and Digital Economy Corporation (Sidec) to position Malaysia as a frontrunner in IC design.
According to Economy Minister Rafizi Ramli, Kuala Lumpur currently holds the Top 47 global ranking.
“The KL20 Summit 2024 represents a beacon of Malaysia’s commitment in fostering a thriving start-up ecosystem in the region,” he said.
Under the VC Golden Pass, he said world-leading venture capitalists were able to call Malaysia home by offering a series of incentives, such as limited partners (LP) funding access opportunities, subsidised office spaces, expedited licence registrations and exempted fees or employment passes.
“Our goal with the Innovation Pass is to increase the number of high-skilled talent within the country.
“This employment pass programme benefits founders, senior management, high-skilled talent and general talent in tech, in hopes that innovative ideas are exchanged to benefit the ecosystem,” he said.
Rafizi added that the Unicorn Golden Pass would allow the country to be the hub of international technology in Southeast Asia, in which Malaysia provides a range of incentives, including relocation assistance, concessionary tax rates on corporate profits, relocation fees and a startup concierge that handles the backroom registration at the start.
“KL20 aligns strategically with the central governing economic philosophy of this government, as outlined in the Madani Economic Framework.
“This is underscored by the principle that economic growth and distribution are compatible and that government correction must be in harmony with market forces,” he stated during the official opening ceremony of KL20 Summit on Monday.
Rafizi said technology had played a significant role in levelling the playing field and enhancing productivity by creating new employment opportunities and means of sustenance.
“Although we are recognising the unintended effects of technology and the rapid expansion of businesses, we are also witnessing a balance stance that advocates for embracing technology while remaining committed to our nation, environment and the international community,” he stated.
Meanwhile, Anwar observed that the ongoing trend of investor confidence in various sectors of the startup ecosystem presented a genuine opportunity for Malaysia to establish innovative technology ventures.
In a significant development, it was revealed that 12 renowned international venture capital firms had chosen Kuala Lumpur as their new base of operations.
These firms, with their impressive investment track records and assets under management worth billions, are poised to make a substantial impact on the local business landscape.