• This month, Malaysia’s National Policy on Science, Technology and Innovation 2021–2030 was launched on live television, where a panel discussion took place between Khairy Jamaluddin, Minister of Science, Technology and Innovation (MOSTI), Professor Datuk Dr Asma Ismail, President of the Academy of Sciences, Malaysia, and Khailee Ng, Managing Partner at 500 Startups, on how these sectors play a part in the growth of the country’s economy for the next decade.

• On the fundamental ingredients required to support the growth of tech startups in Malaysia, Khailee said the country is already home to many globally competitive tech champions, 46 of which have been funded by 500 Startups.
• He stressed the additional ingredients required are global capital and talent, saying that if 500 Durians did not bring in foreign capital, the venture capital firm would not have been able to actively invest in Malaysia. As local funding alone was not sufficient, Khailee mentioned the firm channeled 67% of investments from overseas countries such as South Korea, Japan, and the United States of America.
• He further stated that to date, 500 Startups has invested a total of ~US$10.3 million in the country. This, he added, has generated a cumulative value of ~US$15 billion in Malaysian tech startups.
• Khailee believes relying only on local resources is not sufficient if Malaysia is to achieve its GDP target of ~US$837 billion by 2030.
• When asked about what else was needed in the Malaysian ecosystem, Khailee reminded there were real examples the ecosystem already has what it takes, citing 500-backed agritech startup Braintree.
• The startup was founded by Malaysians who returned to the country and received funding from 500 Startups. Earlier this year, government-linked company (GLC) Petronas followed suit, marking its first ever VC investment. Braintree is also supported by MOSTI, Khailee added.
• Khailee stated this is proof global investors like 500 Startups can come together with GLCs, national agencies, and other supporters of tech startups to invest resources into local companies.
• Earlier during the launch event, the Minister announced a 50% allocation of his Ministry’s budget for research and development with the aim of turning the country from technology users into technology developers.
• The interview was originally conducted in Bahasa Malaysia and is available with English subtitles here.

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500 Startups is a venture capital firm on a mission to discover and back the world’s most talented entrepreneurs, help them create successful companies at scale, and build thriving global ecosystems. In Southeast Asia, 500 Startups invests through the pioneering 500 Southeast Asia family of funds. The 500 Southeast Asia funds have backed over 240 companies across multiple sectors from internet to consumer to deep technology. It continues to connect founders with capital, expertise and powerful regional and global networks to help them succeed.

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