KL poised to become a global tech hub

KUALA LUMPUR: Technology advisory and investment firm GP Bullhound has identified Kuala Lumpur as having all the key ingredients to become a world-class technology hub.

Citing a compelling mix of entrepreneurial spirit, government support and international collaboration, the London-based firm highlights the city's unique qualities that mirror those found in successful tech communities around the world.

"Malaysia is setting a global standard for how government support can catalyse ecosystem growth," says Ben Prade, Partner at GP Bullhound and a panellist at the recent KL20 summit.

The summit, which saw Prime Minister Datuk Seri Anwar Ibrahim unveil the KL20 Action Paper, serves as a pivotal moment in Kuala Lumpur's tech trajectory. The initiative outlines reforms aimed at mobilising founders, venture capitalists (VCs), talent and incubators/accelerators to nurture high-quality local startups.

Prade also highlighted the burgeoning innovation and opportunities within Malaysia's tech ecosystem, highlighting its robust growth potential.

“The ecosystem’s overall value of USD46 billion is well above the global average, with costs substantially lower. Such metrics not only illustrate Malaysia’s capacity for delivering substantial returns on investments, highlighted by the USD41 billion of exits, but also showcase the ecosystem’s readiness to scale heights comparable to well-established tech hubs.”

Prade also commended the government's commitment to increase funding for earlier-stage financing, bringing it from USD314 million to closer to the global average of USD970 million.

The KL20 summit saw a surge in interest from global players, with three high-tech companies and 12 VCs announcing plans to set up operations in Kuala Lumpur.

In addition, sovereign sovereign wealth funds such as Khazanah Nasional, Kumpulan Wang Persaraan (KWAP) and Blue Chip VC will inject up to USD 628 million through a new ASEAN Investment Initiative.

“Europe has learned from the United States that modesty does not lead to global prominence. Now, with KL20, Malaysia is poised to showcase its potential on the world stage, demonstrating that strategic governmental support, combined with a vibrant entrepreneurial community and international collaboration, can propel a tech ecosystem into global significance.

“The political independence and international neutrality of Malaysia further ensure that sectors of critical importance, such as semiconductors, can thrive in a supportive and impartial environment,” says Prade.