Startups, venture capitalists praise KL20 for connecting stakeholders

Economy minister Rafizi Ramli (second from left) at the pre-launch event for the KL20 Summit 2024 at Parliament building. Others are (from left) deputy science, technology and innovation minister Mohammad Yusof Apdal, science, technology and innovation minister Chang Lih Kang and deputy economy minister Hanifah Hajar Taib. (Bernama pic)

PETALING JAYA: The KL20 Summit 2024 and action paper launched on Monday were given the thumbs-up by local startups who say the initiative provided access to high-quality venture capitalists.

Wan Wardatul Amani Wan Salim, the co-founder of a deep-tech startup nanoSkunkWorkX (nSWX), said such access was vital as it allowed the startups to showcase their technological expertise.

It would also provide these companies the opportunity to explain their challenges to the venture capitalists involved, she said, adding that investors would obtain a better understanding of the products offered.

“I commend the government’s efforts to engage the global community with local startups on world-changing missions in Malaysia as my experience with the global community on Monday has been overwhelmingly positive, highlighting Malaysia’s forward momentum,” Wan Wardatul told FMT.

On Monday, Prime Minister Anwar Ibrahim launched the KL20 action paper, a comprehensive roadmap outlining tangible reforms to achieve convergence among key stakeholders – founders, venture capitalists, talent, incubators and accelerators – to propel Malaysia’s startup tech sector to new heights.

Economy minister Rafizi Ramli said the government aimed to propel Kuala Lumpur into the ranks of the top 20 global startup hubs by 2030. He said the current challenges for local startups were accessing funding, navigating regulatory barriers, and attracting top talent.

Qarbotech Sdn Bhd founder Suraya Abdul Rashid hailed the KL20 action plan as a forward-thinking and comprehensive blueprint as it addresses the critical aspects of developing the local startup scene by increasing access to venture capital, easing regulatory frameworks, and boosting talent acquisition.

Suraya, who is also the company’s lead scientist, said that for agriculture technology or agritech companies like Qarbotech, the blueprint not only eases up the business process but also facilitates technological advancements and sustainable practices through the government’s commitment to innovation.

“With greater investment, agritech firms can scale solutions more effectively, reaching a wider range of geographical areas and farming scales, from smallholders to large agribusinesses,” she said.

She said scaling for solutions was crucial for addressing the diverse agricultural challenges faced across Southeast Asia, including varying climates, crop types, and farming practices.

Meanwhile, the CEO of local venture capital firm RHL Ventures Sdn Bhd, Raja Hamzah Abidin, said the blueprint is comprehensive and well-structured through a “Single Window” initiative that provides a centralised platform for startups to simplify procedures and consolidate resources.

He said the initiative is critical in tackling one of the key pain points of the startup ecosystem in the past, which is fragmented decision-making.

Raja Hamzah reminded the government that the next step in developing the startup scene in the country is to execute the blueprint, among others, by establishing a steering committee to oversee the implementation of KL20.

“We need to know the specific agencies in charge of executing this plan,” he said.

Science, technology and innovation minister Chang Lih Kang said the “Single Window” Initiative will be under the ministry’s purview. He said it will support the three main stakeholders: the founders, the investors, and tech talents.