Kuala Lumpur tech startups generate RM220 billion in value

KUALA LUMPUR, 13 June 2024 – Kuala Lumpur’s startup ecosystem has received significant recognition in the latest Global Startup Ecosystem Report (GSER) 2024. The city has been placed in the top 30 of the emerging ecosystems, reflecting its rapid growth and substantial economic impact.

From 1 July 2021 to 31 December 2023, Kuala Lumpur generated more than RM220 billion (USD47 billion) in Ecosystem Value, which measured the city’s economic impact from the value of exits and startup valuations.

“The Ecosystem Value and the achievements recorded validate the country’s continued focus to invest and develop the tech startup ecosystem. Recognising this, I would also like to acknowledge the role and impact of all related agencies, ministries and organisations through the recently launched MYStartup Single Window platform.

“Ministry of Science, Technology and Innovation (MOSTI) will continue to spearhead this effort to realise our vision to become the top 20 global startup ecosystem by 2030 as outlined in the Malaysia Startup Ecosystem Roadmap (SUPER) 2021-2030.” says YB Tuan Chang Lih Kang, Minister of MOSTI.

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Cradle and tech startups

Cradle Fund Sdn Bhd (Cradle), as the focal point agency for Malaysia’s startup ecosystem, lauded the achievements, noting that it is a testament to the efforts and strategic initiatives undertaken to foster a conducive environment for startups.

“Malaysia views startups as a pivotal force in driving local innovation and technological advancement. Cradle seeks to combine the resources and experiences of all ecosystem stakeholders. With a consistent commitment to cultivating a high-performing, inclusive, globalised, and sustainable ecosystem, Cradle envisions propelling Malaysia to the forefront of the global startup ecosystem,” says Norman Matthieu Vanhaecke, Group CEO of Cradle.

In the GSER 2024 report, Kuala Lumpur’s ecosystem has also achieved notable rankings in several key areas within Asia:

• Top 15 Asia Ecosystem in Funding: This ranking highlights Kuala Lumpur’s innovation capacity through robust early-stage funding and active investor participation.
• Top 20 Asia Ecosystem in Performance: This measure reflects the ecosystem’s overall size and success, considering the cumulative value created by tech startups through exits and funding.
• Top 20 Asia Ecosystem in Talent & Experience: This ranking acknowledges Kuala Lumpur’s strong long-term trends in crucial performance factors, showcasing the depth of talent and experience in the ecosystem.
• Top 25 Asia Ecosystem in Affordable Talent: This category measures the city’s ability to attract and hire tech talent cost-effectively, emphasising its competitive advantage in building a skilled workforce.
• Top 30 Asia Ecosystem in Bang for Buck: This ranking measures the amount of runway tech startups acquire, on average, from a VC round.
• Educated talent and ease of doing business are cited as reasons a startup should move to the ecosystem.

GSER 2024

Analysing data from over 4.5 million startups across 300 global ecosystems, the GSER 2024 provides fresh insights on global trends and policy advice to more than 160 economic and innovation ministries as well as public and private agencies in over 55 countries.

To access the Startup Genome Report 2024, please visit here.