Digital technologies have been rapidly embraced all over the world. In effect, it has changed the way in delivering business, work, and services. It not only enhances development, it can create revenues through innovation, diminishing exchange costs, boosting effectiveness and productivity, and making services less expensive.
The transformation into the digital age makes a vast power for youths to pick a career that won't be effectively replaced by robots or build a business of solving problems for people. Internationally, most nations are strategizing and executing different plans to take advantage from the potential returns of grasping the advanced economy.
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Malaysia is no different. According to Malaysia Digital Economy Corporation (MDEC), Malaysia has pulled in digital investments of more than 320 billion ringgit ($78.60 billion) worldwide. Due to that, it has likewise observed the production of 167,000 new high-esteem employments and the rise of local ICT industry worth more than 40 billion ringgit.
Malaysia's Government Supports
Government initiatives are catalyzing the development of business enterprise in Malaysia. Malaysian Global Innovation & Creativity Centre (MaGIC) organized vivid projects to kick start new businesses in the existing market. With the assistance of other organizations such as CradleFund, a startup-driven investing project organized by the government, as well as 500 Startups, a privately owned business, it helps businesses with funds through a crowdfunding platform. So if you're a tech founder and starting to run your business in Malaysia, you can enjoy this supporting environment that gives you access to the open doors you need to thrive.
On top of that, the Malaysian Government has introduced a RM 3 billion (USD721 million) industry digitization transformation fund with a subsidized of two percent as the interest rate. This reserve is expected for quickening enterprises grasping smart technologies.
Even though you're going digital (invisible to physical market), it doesn't necessarily mean you don't need a proper physical workplace right? And it is also not necessary for you to have your own office space when your team is not big enough to fill up the space and your capital may not yet be ready to spend more on office space. After securing funding, next step is to have a space to jumpstart working on your ideas! Be hassle-free as flexible workspaces are mushrooming all over the country especially the key cities such as Kuala Lumpur, Penang, and Johor Bahru.
It has been a buzzword all over the globe because of its endless benefits towards business especially at early stage regardless of industries and sizes. Not only the cost reduction, the highlighted part for tech companies is sharing a workspace with other companies that help burst their imagination and efficiency since they can without much of a stretch talk about ideas with other tech founders!
Of course, you can get such spaces in big markets - US or Singapore, yet on the off chance that you check the costs, renting a flexible workspace in Malaysia is a cheaper alternative for your business both in the short term and long term!
Read also: Malaysia and the Workforce of 2020: What's to Come?
Kuala Lumpur is A Swelling Digital Market
According to EY's research on Decoding the Malaysian Digital DNA 91% of approximately 30 million Malaysians own and use a smartphone. This means that Malaysians would be the perfect target market for digital businesses as they are also spending a significant amount of time on their devices. Take inspiration from big tech companies such as Shopee, Iflix, OYO, and many more who are agile in introducing their products to the local market and encouraging adoptions among local people towards their products.
We can see that there are many more tech giants making the move in expanding and solidifying its regional footprint in Malaysia. If you're just a small player, it is still a great hub of digital business is already being established and you just need to inject your brand into it. As long as you're smart enough to compete.
Malaysia's Stability and Ecosystem
Malaysia is a welcoming and not yet saturated market. It has huge market potential with a population of 31 million of different ethnicities, races, and preferences. The Malaysian economy grew at 4.7% in 2018, with a GDP value of RM1.23 trillion at constant prices (approximately USD302 billion) and RM1.43 trillion at current prices (USD 3.5 million).
It is well known that Malaysia is a developing country with its great infrastructure system along with stable economy. In terms of Ease of Doing Business according to World Bank's Report, Malaysia has ranked itself at 15th. Indirectly, it represents itself as an attractive market for further consideration when expanding overseas. And when it comes to recruiting talent, Malaysia has a pool of world-class talent with low labor costs! Plus, you can fully own the business in the 99% of the business activities.
If you're foreigner and plan to expand your digital business to Malaysia, there are certain rules that you should follow. First and foremost, you should appoint at least one resident / local director or use a professional service to nominate a passive resident director - even though he or she isn't directly involved in daily business activities. In terms of finances, you should prepare a business plan when applying for a corporate bank account in a Malaysian bank.
Malaysia is a home to several such companies, thanks to support from government agencies, venture capitalists, and accelerators. Thus, Malaysia is now one of the best places to start your digital business with less business risks and larger opportunity. While the market is not yet saturated, make sure you leave your mark in the local business scene before its too late!
If you need any help looking for office space in Kuala Lumpur, don't hesitate to contact our Space Expert Lois, at lois@flyspaces.com.
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