The Malaysian government is bringing on three ecosystem partners to ramp up the growth of startups in the country, complementing the initiatives laid out by the Malaysia Digital Economy Corporation (MDEC) in April.
First, Swiss-based company builder Mountain Partners will locate its Southeast Asia operations hub in Malaysia, and in the process, bring over more than 15 of its portfolio companies to expand in the country. Additionally, it will create a US$100 million fund for Malaysia as well as its surrounding markets.
Mountain Partners will be able to create more than 400 job opportunities in Malaysia, including more than 50 C-suite roles, stated an official press release.
Next, private equity firm Leonie Hill Capital will partner with Japanese patent fund IP Bridge to invest in Malaysian and regional startups with original IP. It will focus on verticals such as IoT, sensor and wearable technology, agritech and foodtech.
As part of the partnership, IP Bridge’s global expansion initiative, ManGO Factory, will also relocate more than 10 Southeast Asian and Japanese startups in Malaysia, providing them with facilities, access and market opportunities in Malaysia and Japan.
Leonie Hill will provide commercialisation expertise while IP Bridge will offer intellectual property support and advisory to the startups.
“The strategic efforts placed by Mountain Partners, Leonie Hill Capital and IP Bridge will complement Malaysia’s initiatives in building a robust start-up ecosystem as Malaysia continues to provide regional and global startups the platform to scale in Southeast Asia,” said Datuk Yasmin Mahmood, CEO of Malaysia Digital Economy Corporation (MDEC).
“Our strong infrastructure and reduced cost of doing business are conducive to support and encourage the growth of start-ups. While Malaysia is set to become a regional hub for tech startups, what this really means is more high-skilled jobs will be created through this initiative, thus giving Malaysians more opportunities — economically and socially,” said Prime Minister of Malaysia Najib Razak.
Last week, the Prime Minister also announced other new digital initiatives, including a ‘cloud first’ strategy and the development of its own National Artificial Intelligence (AI) Framework, as an extension to the National Big Data Analytics Framework.