9 Budget 2024 recommendations as rocket fuel for Malaysia's Soonicorns

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With over 2 decades of involvement with Malaysia's startup ecosystem, Dr V Sivapalan lists 9 key recommendations the Madani govt must seriously into implementing for Malaysia's startup ecosystem to power up to the next level.

Critical to offer visas for foreign students who study in local universities “Soonicorns” or “Soon-to-be-unicorns” are late stage technology companies most of whom have raised venture capital funding and have the potential to become unicorns.

There are 9 budget recommendations for the Finance Minister and Economy Minister to consider when tabling Budget 2024 in October. Most of them don’t require government funding. Yes, you read that right.Having the right talent is critical for all companies, but more so for Soonicorns. At their stage of growth, they need better qualified and experienced talent both local as well as foreign. This need grows even more as they scale their business regionally.

Malaysian startups produce many of these software tools hence we recommend allowing HRDF funds to be used to procure software tools developed by Malaysian startups that are MD or MySTI certified. We recommend the higher amount of RM100,000 or 25% of their funds in HRDF to be used for this purpose each year.

Supporting women-led businesses can help to improve Malaysia's reputation as a country that is committed to gender equality and social justice. By supporting women-led businesses, Malaysia can show the world that it is a country that is open to innovation and diversity.Shariah-compliant P2P Financing is still in the early stages, with the Securities Commission Malaysia reporting in their Annual Report 2022 that of the total RM3.

In contrast, if you look at how Microsoft, Google, Yahoo etc acquire smaller companies, they are actually acquiring not just the product and innovation but also the talent of the acquirees. This is a good practice to create more value and make the bigger company more innovative. Imagine TNB acquiring a new energy company or MRCB acquiring a property tech company.

 

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