Rafizi says government must foster a culture of risk-taking for Malaysia’s future

KUALA LUMPUR, April 22 — For Malaysian startups to survive long-term, a culture that embraces risk-taking and innovation must be fostered, Economy Minister Rafizi Ramli said today at the 2024 KL20 Summit. Stated.

He said the challenges startups face in their early stages are funding, which is caused by societal attitudes and structural issues within the business ecosystem.

“Structurally, a lot of the ecosystem and support that has come with it…in the second year, before this administration took office, it was a big piece of national policy, and the focus was on creating five unicorns. Therefore, the ecosystem is geared towards something bigger.

“On the other hand, if you have ever been a startup founder yourself, you know that an ecosystem that can sustainably produce unicorns has to have a very solid foundation from the seed and early stages. “From Malaysia to the World,” he said during a panel discussion session titled “From Malaysia to the World.” The World: Open for Technology Business” was held during the summit.

While acknowledging the limitations of continued government funding for all startup classes and stages, he added that government policies that prioritize ecosystem development are critical to supporting sustainable growth.

Additionally, he said this approach increases the chances of attracting venture capital (VC) investment and identifying promising startups.

“And some parts of the ecosystem have more seed and early-stage startups, because that allows VCs to come in and increases their chances of meeting good startups.”

“Once we reach a certain scale and the sovereign span reaches either financial companies or our own funds, I think we can create a funding ecosystem where we can look at all startups from early stages to growth stages. ” he added.

That is also why the government has shifted its focus from obsession with unicorn startups to prioritizing ecosystem development, he said.

Mr Rafizi emphasized the importance of attracting global talent and fostering collaboration among founders to foster knowledge exchange and build capacity among Malaysian entrepreneurs.

“That’s why the government decided to move away from obsessing over numbers and numbers of unicorns and instead focus on ecosystems and attracting more people from around the world,” he said.

He added that embracing risk-seeking behavior is essential to ensuring a prosperous future for the country.

He said he believes the future lies in taking some risks.

“If you want to have a good future, and the future lies in risk-seeking.

“I think if you do the planning with the ecosystem and focus on each player in the ecosystem and focus on that, everything will slowly fall into place,” he said.

Touching on the pipeline aspect, he said it was a long-standing problem for the country.

He said Malaysian technician wages in the Bursa Malaysia market are significantly lower than in other countries, amounting to around 4-5%.

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