Innovation progress of Southeast Asian country Malaysia

Today in this article we will talk about the innovation progress of Southeast Asian country Malaysia

Malaysia is renowned for giving birth to a startup called Grab or MyTeksi at that time, but suddenly, the company relocated and became not the Unicorn of Malaysia but Singapore and the rest of Southeast Asia.

Since then, it took several years before it saw its first-ever Unicorn company, whereas its Southeast Asian counterparts have been seeing rises in these billion-dollar businesses. Within this decade, however, that will all change. Malaysian startups are expected to become one of the largest in the entire world.

By 2025, there will be at least 5 Unicorns and 5,000 startups around the country, way above the current 1,000 startups or so today.

So, how is Malaysia going to grow its regional status of startups to a globally recognized hub in just a small amount of time? Moreover, what effect will it even do on the very economy of the nation?

The Malaysian startup ecosystem, today, has gained rather a lot of traction in just a few months and is currently valued at 16 billion dollars. This was led by the immense growth in the digital economy during the months of covid lockdown. Which led to the shift from a traditional way of living to become an internet-first society.

According to a report done by Google, Malaysian digital merchants benefitted the most from digital platforms. These platforms ensured that their businesses would thrive, despite, the change in the world. Furthermore, it has also pushed them to use and understand the natives of Digital solutions and payments such as FinTech.

This tremendous growth has paved the way for a tech startup to grow which is notably known as Carsome, and it is also known to have the first unicorn status of Malaysia. A tech unicorn that started way back in 2015 as a price comparison site for cars, since then it grew into a massive online car website that caters to sellers and buyers of different backgrounds. It is also seen as a growth company after its continuously innovative change in its business model.

Such as purchasing an auto advertising network called iCarAsia and implementing vehicle insurances. Unfortunately, Carsome is still the only unicorn story that we can tell for now.

As Malaysia is aiming to grow its local enterprises, then we can expect that the next generation of unicorns is just around the corner. We think that Boost, Plush, and Fave are some of the most innovative businesses around.

Boost is the forefront Fintech company that is driving the transformation for the country’s financial industry. With over 8.8 million registered users, Boost has become the leading choice for Malaysia. Moreover, its transition from just an e wallet company to slowly rising in several other sectors shows that this may become Malaysia’s next super app.

Plush, on the other hand, is creating a unique approach to property rentals.It’s a company that’s driving the next wave of AirBnb’s. This startup aims to provide premium stays for guests and make homeowners’ hosting easier.This is done through their various services such as interior designing, professional photography, dynamic pricing optimization, maintenance,and even high-quality concierge. It is in summary a “company that bringsAirbnb’s or property rentals to a premium level”.

Fave, is yet another FinTech company, but this time it has a lot more innovations driving within the startup. Its services range from FavePay, e wallet rewards, deal huntings, Buy now pay later schemes, or it is one app that brings every single financial necessity altogether. Serving both merchants and customers either digitally or even offline. Unfortunately, though, this was recently acquired in 2021 by Pine Labs, one of India’s leading fintech companies.

This also suggests that international investments are starting to see huge potential in Malaysia. The future of Malaysia’s startup ecosystem is just starting! While these companies mentioned are a few, there are a thousand more out there!

Moreover, many analysts said that by 2025, there will be 5,000 of these a huge leap from what it is today. Malaysia 2030 vision, the government stated that Malaysia has a clear roadmap that will help them become a global top 20 startup ecosystem.The primary drivers that help in getting there are the government, private entities, the education system, and the startup community itself.

The shift in helping Malaysia’s entrepreneurial system is also crucial in driving talent. But the most important factor is how the system helps entrepreneurs thrive in an open network, filled with opportunities.