Breaking down tech and startup perks in Malaysia’s Budget 2025

​Dan Lain-Lain (Malay for “and others”) is a weekly column by TIA journalist Emmanuel Samarathisa that dissects the goings-on in the Malaysia tech scene, but with a heavy mix of current affairs, policy and politics. Click here to read past articles.

Last week, Prime Minister Anwar Ibrahim tabled Budget 2025 (or Belanjawan as it’s known these days in Malay), which came in at a record 421 billion ringgit (US$97 billion).

The major takeaway is that this is an expansionary budget with something for everyone. But it’s also a safe budget, in that most measures are not meant to rock the boat.

Prime Minister Anwar Ibrahim (center, in white) teasing the Budget 2025 document, flanked by Finance Ministry officials, per tradition. / Photo credit: Prime Minister’s office

But we’re not going to talk about politics or policy today. Let’s cut to the chase with some key incentives for tech and startups:

Just a few notes: These initiatives are not exhaustive. Also, the Budget is aspirational, meaning that while the government has earmarked these funds for use, it does not expect to fully utilize them. The government can carry some of these items to the 2026 Budget, fund a certain program with a lower-than-expected sum, or even drop some initiatives at any time.

The Good

Budget 2025 has commitments to AI, semiconductors, and space, as well as funding for women-led SMEs.

There’s also the involvement of sovereign wealth fund Khazanah Nasional as the key agency in tech and startup development, along with government-administered Cradle providing fresh funds for startups.

The one thing that stands out, personally, is that Malaysia is going big with halal.

This is an obvious move. The country is home to a majority Muslim population, and its halal certification standards are world-renowned.

What does this have to do with startups? Those in the F&B space like Zus Coffee will stand to benefit.

I have reported previously that Zus received support from the Malaysian government. According to the company’s 2023 annual report, up to 80% of its loans – worth 23 million ringgit (US$5.2 million) – are guaranteed through a financing scheme for SMEs. That guarantor is SJPP.

Back then, Zus was the only halal-certified coffee chain that received that aid. So with a greater amount being guaranteed, this opens up a huge opportunity for F&B players.

Just a word of advice (or caution): While having a halal certification opens doors, getting the cert and maintaining it is hard and expensive work. The money that founders will fork out isn’t so much to the certification body. That’s cheap, within a few hundred ringgit.

The so-so

The bad