00:00 When talking about Malaysia's ambitions to become a major player in the global investment scene,
00:05 two recent deals stand out.
00:07 Microsoft's RM10.5 billion investment.
00:11 I'm really pleased to announce today that we are expanding our investment in Malaysia with RM2.2 billion.
00:18 And the RM20 billion collaboration between Nvidia and YTL.
00:23 These investments are part of a larger strategic vision to propel Malaysia to the top 20 countries
00:30 in the Global Startup Ecosystem Index by 2013.
00:34 While Malaysia is not yet on par in terms of investment attraction compared to our closest neighbour Singapore,
00:41 these recent deals are a positive indication that it's moving in the right direction.
00:47 The KL20 Summit 2024, brainchild of Economy Minister Rafizieh Ramli, is the key to making Malaysia
00:55 more attractive to high-value, high-quality investors.
00:59 KL20 represents our ambition to bring Malaysia to the top 20 startup ecosystems in the world.
01:07 The KL20 Action Plan outlines new initiatives that will accelerate the critical areas of a startup ecosystem.
01:16 The capital, the talent and the quality of startups.
01:21 Malaysia is no stranger to big ambitions like the multimedia supercorridor, Cyberjaya and Technology Park Malaysia,
01:30 which tried to make KL a startup hub only to fall flat.
01:35 How then do we ensure that this time around, we get things right?
01:39 The answer lies on a tiny island in the northwest of Europe, Ireland.
01:45 Dublin, Ireland is probably better known as the birthplace of singer Bono,
01:51 but it is also the European headquarters of tech giants Apple,
02:04 Meta,
02:06 Google,
02:08 Airbnb
02:10 and X,
02:13 earning it the name Silicon Docks.
02:15 So what is the secret sauce to Ireland's success?
02:19 Talent, a low corporate tax of 12.5%, and to make the deal even sweeter, it offered Apple 0.005% in corporate tax.
02:30 This may sound bonkers, but Ireland is set to reap 51 billion ringgit from these cash cows,
02:36 and this amount is set to double by 2026.
02:40 But the KL plan mirrors Ireland's experience, where international company growth from 1990 to 2019 drove real wage increases,
02:49 and most notably during low inflation periods, boosting purchasing power significantly.
02:55 What Ireland has done to entice these tech companies cannot be replicated wholesale in Malaysia,
03:01 nor can it dream of becoming the Silicon Valley of the East.
03:05 But Malaysia can play to its strength, which is why Prime Minister Anwar Ibrahim launched the KL20 Action Paper.
03:13 The paper lays out a comprehensive roadmap outlining tangible reforms to achieve convergence among key stakeholders,
03:21 founders, venture capitalists, talent, incubators and accelerators to propel Malaysia's startup tech sector to new heights.
03:30 We are positioning Malaysia as an axis for leaders in semiconductors, clean energy, agri-tech and Islamic fintech.
03:41 Doubling down on our age will tap into the higher value effort necessary to create new growth verticals and transform our futures.
03:54 Reforms aside, as part of KL20, Malaysia is also opening the doors to investors by making it easier to do business here.
04:03 The Single Window Initiative rolled out as part of KL20 will help startup founders, investors and tech talents cut through bureaucratic red tape
04:13 by expediting approvals and empowering entrepreneurs to navigate the startup landscape more efficiently.
04:20 Venture capitalists too will stand to gain from access to funding opportunities from institutional investors,
04:27 visa fee exemptions and expedited license approval for fund setup.
04:32 The benefits of these investments may take a decade or more to materialize, but we must start now.
04:39 As highlighted in the KL20 Action Paper, there's a need for more external skills.
04:44 Thus, I feel it's beneficial that Malaysia is implementing more accessible and targeted visa schemes.
04:51 The KL20 Action Paper outlines a sharp strategy.
04:55 Attract talent and investment by capitalizing on Malaysia's competitive advantages in semiconductor, green tech, agriculture tech and Islamic finance.
05:07 Rather than punching above its weight by emulating Silicon Valley, Malaysia is attracting catalytic tech companies and high potential startups.
05:16 The focus is clear, boosting income for rakyat and generating substantial economic spin-offs.
05:23 Will it work? Time will tell.
05:26 Nadia Azmin, FMT Business.
05:28 (dramatic music)
