KUALA LUMPUR, June 2025 — Malaysia’s innovation engine is roaring to life with over RM2 billion in new funding streams to accelerate local startups, tech ventures, and digital disruptors.
Unveiled under Budget 2025 and rolled out in Q2 and Q3, these funds reflect the government’s strategic pivot toward entrepreneurship-led economic growth, especially in AI, fintech, agritech, healthtech, and green solutions.
💰 Key Startup Funds Deployed
1. Dana Perintis by KWAP (Pension Fund)
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RM1 billion allocation
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RM200 million disbursed in 2025
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Focus: Early-to-growth stage startups with scalable innovation in fintech, AI, and sustainability
2. Khazanah Nasional Fund of Funds
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RM1 billion allocation
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RM300 million available for VC firms in 2025
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Supports: Regional VCs investing in Malaysian ventures, particularly in Series A and B rounds
3. Cradle Fund (Cradle CIP Spark & CIP Sprint)
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RM65 million in direct grants
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RM50k to RM500k per startup
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Target: Early-stage Malaysian startups with working prototypes or MVPs
🚀 Ecosystem Catalysts
The fund rollout coincides with a string of major startup events, including:
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DisruptInvest Summit 2025 by Nexea (Kuala Lumpur, June 26)
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Wild Digital SEA 2025 (hosted by Catcha Group, Q3)
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Government-sponsored incubators via MRANTI, MaGIC, and MDEC
These initiatives provide access to pitch opportunities, mentoring, and B2B matchmaking with investors and corporate partners.
🌍 Global & Regional Positioning
Malaysia is angling to become Southeast Asia’s “Startup Springboard”, providing:
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Government-backed capital
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Strong IP protection laws
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Cost-efficient incorporation & tax perks
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Proximity to ASEAN markets (660M consumers)
According to MDEC CEO Ts. Mahadhir Aziz:
“We are not just investing in startups. We are investing in the next 10 years of Malaysian economic growth.”
📊 Snapshot: Startup Momentum in 2025
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Over RM1.3 billion in private VC raised by Malaysian startups in H1 2025
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Top funded verticals: AI, edtech, logistics tech, halal commerce, and climate tech
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Malaysia now ranks #4 in Southeast Asia for total startup capital deployed
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