The tech trends that will shape the rest of the year in Malaysia

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Hello reader,

It’s hard to believe it, but we’re less than a week away from the halfway point of 2024.

July 2 marks that day and while it’s OK to look back on the year so far to revel in what you’ve achieved (or despair in what might have been), it’s probably more productive to look forward.

That’s what my colleague Emmanuel has done in today’s featured story by taking a look in his crystal ball to tell us what will shape Malaysia’s tech scene for the rest of this year. It seems like we’d all be wise to pay attention to semiconductors and fintech in the country, as companies in both spaces are making big moves.

Today we look at:

• The themes that will shape the rest of 2024 in Malaysia’s tech scene
• India-based Zyod’s US$18 million funding to spread its fashion manufacturing tech
• Other newsy highlights such as Atome Financial raising a hefty chunk of change and AI healthtech startup Cloudphysician scoring a series A round.

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Checking in on Malaysia

Image credit: Timmy Loen

With the third quarter of 2024 fast approaching (where does the time go!?), it’s worth looking at what trends will shape Malaysia’s tech ecosystem for the rest of this year.

It is no surprise that semiconductor-related industries are set to fuel growth, while fintech also has a big role to play.

• AI hype: There are big bucks to be made in the semiconductor space amid the generative AI boom, and many corporate VCs in Malaysia are eyeing the sector. Penang-based BlueChip VC has already thrown its hat in the ring and is teaming up with Khazanah Nasional and civil servants’ pension fund Kumpulan Wang Persaraan to jointly invest in a US$630 million fund.
• Fintech heats up: In fintech, two new digital banks are in the pipeline, namely Sea-YTL and KAF. They will join an increasingly competitive space where GXBank, Aeon Bank, and Boost Bank are duking it out. A key battleground is for net deposits – Grab and Singtel-owned GXBank is offering daily interest on current accounts, while Japanese conglomerate-owned Aeon Bank is offering monthly interest on deposits.
• VC bonanza: The recent KL20 Summit saw no less than 10 VC firms commit to opening offices in Malaysia. Other firms have made similar commitments at different times, but perhaps more importantly, state-owned financiers have been tasked with sourcing startup deals. Khazanah has been told to set up a US$210 million fund-of-funds for tech startup investing. At last, the government is putting the burden of building the space on Khazanah alone, instead of disparate government agencies.

Read more: Malaysia’s fintech and VC sectors are heating up

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