Malaysia wants to form a commission for startups. Here’s what people think of the plan

Malaysia is considering a dedicated commission to oversee the development of its startups and venture capital firms. The idea was proposed in September by Gobind Singh Deo, the country’s minister of communications and multimedia.

The planned “Startup Commission” is envisioned to have greater power and authority in accelerating the startup ecosystem’s growth. It will also be the central government agency for addressing challenges and formulating solutions that could be turned into policies and legislation.

Gobind Singh didn’t provide a timeline for the establishment of the commission, saying it will be a while before the proposal can be brought to parliament.

In the meantime, there will be a group “pro tempore” that will create the commission’s structure, he shared.

While some stakeholders welcomed the plan, others thumbed down the idea of another form of regulation. Plus, they ask: how will the commission be any different from the plethora of Malaysian agencies and institutions that already champion startups and VC firms?

Consolidating initiatives and programs

Gobind Singh’s plan could be a good step forward, according to Warren Leow, former executive director of the Malaysian Global Innovation & Creativity Centre (MaGIC).

However, without a clear definition of what the commission will entail, industry players are left to ponder what value-add it will bring to the table. “Will it be a voluntary and informal group of advisors to existing agencies? Or will it do actual work and implement?” Leow asked.

With quite a number of agencies already tasked with developing startups, navigating the current landscape can be overwhelming.

Siew Yuen Tuck, CEO of Malaysian fintech startup Jirnexu, expressed his concerns over the country’s “fragmented” efforts aimed at developing the startup ecosystem. He thinks the biggest challenge for the proposed commission is to “align the interests of different ministries and agencies” because each has its own set of objectives.

MaGIC, Malaysia Digital Economy Corporation (MDEC), National Institute of Entrepreneurship (INSKEN), and SME Corporation are just some of the government organizations with overlapping mandates to support startups.

MDEC is tasked with cultivating Malaysia’s digital economy. Its initiatives include attracting investments, taking local digital businesses global, as well as driving technology adoption in the country. It works closely with MaGIC, which is focused on the incubation and acceleration of startups.

On the other hand, INKSEN implements capacity-building programs and training for Bumiputera entrepreneurs. The Malays make up the bulk of Bumiputera citizens, followed by the indigenous people of Malaysia.

On the VC front, there’s the Malaysian Venture Capital and Private Equity Development Council (MVCA). While it’s chaired by the Securities Commission, which represents public interest, MVCA is mostly composed of players in the investment sector with vested interests.

Getting the private sector involved

Industry sentiment and wishlist