Why is Malaysia the next big hub for Indian startups?
For a long period of time, Singapore is considered as the biggest hub in Asia. In recent years, Malaysia is also doing great in all business sectors. They have been able to attract foreign investors from around the world. They have launched the India-ASEAN Startup Summit in December 2023. It’s projected to fund RM500 million into Malaysia’s startup ecosystem through direct investments and partnerships.
This is a key reason why Malaysia is the next big hub for Indian Startups. Apart from that, there are some other crucial reasons also available. That’s why you will see a rising number of hubs, cutting-edge policies, and a skilled workforce. The stage is all set for Malaysia to be the Next Big Hub for Indian Startups. Lots of Indian startups are interested in company registration in Malaysia.
The rise of high-tech sector in Malaysia
We are living in the Information Age or Digital Age. To be the Next Big Hub, the Country should offer enough opportunities in the High-Tech Sector. Does Malaysia qualify from this perspective? Yes, the rise of high-tech sectors in Malaysia is truly appreciable. According to Reuters, Malaysia ranks sixth worldwide in semiconductor exports. It is expected to climb higher as investments in the advanced technologies sector.
Malaysia has also outlined a comprehensive AI roadmap to integrate AI technologies across key sectors. This is going to contribute to economic growth even more. Those factors attract investors to register company in malaysia from India. Advanced infrastructure, investment-friendly policies, access to raw materials, high-speed internet, 5G coverage everything is available. It has every expected opportunity to offer for Indian Startups.
Key factors influencing Malaysia as next big hub for Indian startups
Recently, SFM Consulting Firm has helped many Indian Startups register their company in Malaysia. Analyzing the market, we have noticed some key factors influencing Malaysia to be the Next Big Hub for Indian Startups. If you are also thinking about starting your business in Malaysia, you should know about those key factors to make informed decisions.
- Government incentives and policy support
It is mandatory to get government patronage to be the next big hub. The good thing is Malaysia is getting full support from the Government. There are nearly 25 million active internet users. The government’s National Fiberisation and Connectivity Plan (NFCP) worked with a vision to make the internet accessible to 95% of the people.
We must highlight their strategic investment in the digital economy sector. They have taken different types of initiatives and applied tax policies to encourage startups around the world including Indian Startups to invest in their country. For example, we can talk about the “My DIGITAL” initiative. The aim of this incentive is to transform Malaysia into a high-income economy.
- Malaysia is Southeast Asia’s rising tech corner
Can you guess how much Kuala Lumpur’s startup ecosystem generated between 2021 and 2023? Surprisingly, startups have generated over $47 billion in value during this timeframe. The city now ranks among the top 15 in Asia for funding. Also, it is ranked among the top 20 for talent and startup performance.
Based on those data, it will be fair to say that Malaysia is the top southeast Asia’s rising Tech corner. Indian Startups will find a world-class tech environment here. That’s why many Indians are already thinking about SDN BHD registration. The cost will be significantly lower than in other top-tier countries.
- India-Malaysia startup bridge is a game-changer
As we have mentioned at the start, India and Malaysia launched the India-Malaysia Startup Bridge. It is mainly focused on encouraging startups and businesses to grow together. After this startup bridge, investment has increased in different business sectors in Malaysia from Indian Startups. It’s a great commitment to helping startups expand, scale, and grow overseas.
If you’re an Indian, it will be easier for you to get entry into Southeast Asia. You will enjoy fewer barriers as foreign investors with more backing from the government. So, Indian startups could be highly beneficial by grabbing those opportunities. You can own 100% of a Malaysian company as an Indian. Contact SFM Consulting Firm now to start your business registration process.
Final words
Every required criteria is fulfilled properly by the Malaysian Government to transform Malaysia into the Next Big Hub for Indian Startups. In recent years, their progress has looked brighter than ever. They are expected to do even better over the next 5–10 years. Now, it’s the perfect time for Indian Startups to start their business in Malaysia and turn their dream into reality.
FAQ
Is Malaysia the next Silicon Valley?
The capital of Malaysia “Kuala Lumpur” has a great potential to be the best Silicon Valley. It is already playing a significant role in the global semiconductor industry. If it continues to grow in IT and AI, it is going to be the Silicon Valley of Southeast Asia.
What is the startup culture in Malaysia?
The startup culture in Malaysia is growing with lots of exciting opportunities for foreign investors. The government has set investment-friendly rules to support the growth. Overall, this is a great place for Indian Startups to take their business to the next level.
Is Malaysia set to become a global start-up hub soon that can compete with Singapore?
Lots of business initiatives are ongoing to transform Malaysia into a Global tech hub. So, it will be fair to say Malaysia is all set to become a global start-up hub. The government has set a target to create 5000 startups and five unicorn companies by 2025.
Why are Indian Startups moving to Malaysia?
The economic growth of Malaysia is sustainable with lots of dynamic business opportunities. That’s why Indian Startups are considering Malaysia as their go-to business hub. The rules of investment and taxes are also in favor of Indian startups.
Which is the startup hub of the world?
Silicon Valley, New York City, London, and Los Angeles are some of the best startup hubs in the World. In Asia, Singapore is considered the leading startup hub in Asia. Malaysia is doing great to compete with Singapore.
Sources:
https://mranti.my/happenings/news/india-asean-startup-summit-launches-the-india-malaysia-startup-bridge-to-bolster-bilateral-economic-cooperation
https://www.reuters.com/plus/malaysias-tech-revolution-rising-to-the-top-in-the-global-semiconductor-race
Author Bio: Mia Biajid – business & finance content writer
Mia Biajid is a professional content writer with six years of experience in writing informative content in the business sector. He has a deep understanding of market trends, entrepreneurship, and financial strategies. Mia specializes in delivering insightful articles that help businesses to grow. His expertise covers business development, investment insights, and corporate strategies. Having that much experience makes him a trusted voice in the business industry.
Article reviewed by: Md Forhad Hossain
(BA-Hons, MBA, LL.B, LL.M)
Meet Md. Forhad Hossain – is an expert in company registration with over 14 years of experience. He has helped more than 400 businesses in Malaysia and over 7,000 clients from around the world start their journey successfully.
Forhad is passionate about making business registration simple and stress-free. His knowledge and dedication have earned him the trust of entrepreneurs worldwide.
If you’re looking for someone to guide you, Md. Forhad Hossain is the name you can Rely on.