Kuala Lumpur, May 2025 — As Southeast Asia’s economic dynamics evolve, Malaysia is positioning itself at the forefront of the region’s startup ecosystem under the banner of ASEAN Startup Year 2025.
This bold initiative, announced during Malaysia’s ASEAN chairmanship, seeks to build a cross-border startup network that fosters innovation, encourages investment, and promotes sustainable economic integration across the 10 ASEAN nations.
Strategic Vision for Regional Innovation
The initiative is not just symbolic; it reflects Malaysia’s broader vision to become a regional tech and innovation leader. Speaking at the launch, Minister of Science, Technology and Innovation, Chang Lih Kang, remarked:
“We are laying the groundwork to empower startups, connect ecosystems, and future-proof ASEAN’s economic resilience.”
As part of the ASEAN Startup Year, a series of regional incubator programs, investor roadshows, and policy roundtables are being organized throughout 2025. These events are designed to help startups scale beyond national borders and integrate seamlessly into the ASEAN economic framework.
Khazanah’s Jelawang Capital: Fueling the Next Wave
Supporting this vision, Khazanah Nasional, Malaysia’s sovereign wealth fund, launched Jelawang Capital in early 2025—a new fund-of-funds aimed at catalyzing venture capital participation in local startups.
With an initial capital commitment of RM 500 million, Jelawang Capital is already in talks with both foreign and domestic VC players, aiming to nurture Malaysia’s next generation of unicorns in fields like artificial intelligence, fintech, healthtech, and green energy.
Khazanah Managing Director Dato’ Amirul Feisal Wan Zahir commented:
“This fund reflects our belief in Malaysia’s talent, resilience, and entrepreneurial potential. Jelawang Capital will provide not just funding but strategic guidance for long-term growth.”
Startups Defy Global Funding Slump
Globally, venture capital funding has been on a downward trend—Asia saw a 40% drop in funding year-on-year in Q1 2025 due to macroeconomic volatility and shifting investor sentiment. Yet, Malaysian startups are showing resilience.
AI-powered recruitment platform Krenovator recently secured a successful seed funding round led by regional investors. CEO Mahadhir Yunus stated:
“This round validates our unique approach to talent placement and supports our plans to scale into new ASEAN markets. Malaysia’s support ecosystem gave us the confidence to dream big.”
The government has also introduced tax incentives and fast-track licensing schemes for startups in digital health, cleantech, and logistics.
What’s Next?
Malaysia will host the ASEAN Startup Week 2025 in Putrajaya this August, expected to draw over 5,000 founders, investors, and policymakers from across the region. It will include demo days, funding pitches, and regulatory dialogues to address cross-border challenges in scaling startups.
Analysts believe this momentum is likely to attract global tech attention. According to a recent report by Frost & Sullivan, Malaysia could emerge as the “Gateway for Southeast Asia’s Next-Gen Unicorns” if this pace of collaboration and investment continues.
