KL20 – a vision for a better Malaysia

 

As I sat among the vast, eager crowd at KLCC Convention Centre’s plenary hall, I couldn’t help but feel a sense of hope. Could we as a nation be turning a corner? Are things starting to look up for Malaysia?

I have to admit, for a long while now, I’ve harboured little hope for Malaysia – due in large part to the racial and religious issues that seem to pop up almost on a monthly basis – issues that are scaring off both promising local and overseas talent and investments.

Why would companies want to set up shop in a country where mobs harass and shutter businesses at the slightest hint of a racial or religious infraction? Many business owners might think that they would be better off doing business in our more tolerant (and wealthier) southern neighbour.

But the recently concluded KL20 event, spearheaded by our minister of economy Rafizi Ramli, might just have reversed some of the damage and left many optimistic about Malaysia’s budding tech scene.

Organised to both be a showcase for leading Malaysian tech companies and an effort to woo foreign investors, KL20 had impeccable production quality. I could tell that no expense was spared to make it a success. It truly was a tour de force of all that Malaysia has to offer the world.

One of the highest profile announcements was that Taiwan-based Phison Electronics, helmed by Malaysian-born Pua Khein Seng, will be starting a new venture in Malaysia called Malaysia AI Storage (MaiStorage). As part of this venture, Phison will be bringing home 200 experienced engineers and technology transfer worth RM1 billion.

In addition, many initiatives to spur startup growth in Malaysia were announced at the 2-day event. These are the three that I found most promising and think would have the biggest impact on the future of tech in Malaysia.

Unicorn Golden Pass

Foreign startups that have gained significant and sustained market traction will be offered funding opportunities from venture capitalists (VC), fee-exempted visas, tax concessions, office space in a startup hub and other services tailored to the startup’s specific needs. In return, the startup needs to establish an office and build a team in Malaysia.

VC Golden Pass

International VCs that have assets under management of over US$100 million and are looking to set up a base and invest in Malaysia will be incentivised to do so. These include limited partner (LP) funding opportunities from institutional investors, visa fee exemption for senior leaders, expedited licence approval for fund setup and an office space in a startup hub.

Innovation Pass

Aimed squarely at foreign founders and tech talent, the Innovation Pass is a visa that allows them and their spouses to live and work in Malaysia. Crucially, since the visas aren’t tied to employment, they are free to look for other jobs in case of a job loss. This keeps the talent here, instead of kicking them out of the country the moment they lose their job.

All in all, the event was very well choreographed and I’m sure foreign investors who were in attendance would have left with a generally positive impression of Malaysia.

But the million-dollar question is: are these enough to turn Malaysia into a regional tech hub? It’s certainly a good start. And I like the focus on semiconductors and agritech – two industries that Malaysia has had a head start and has expertise in.

If this effort and focus is sustained, I’m cautiously optimistic about our chances of pioneering key technologies in these areas and becoming a destination for tech talent and investment in the region. - FMT

The writer can be contacted at kathirgugan@protonmail.com.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.