Dear reader,

The acquisition of PropertyGuru Group by EQT Private Capital Asia for US$1.1 billion marks a significant milestone in Southeast Asia’s proptech landscape.

With the deal unanimously approved by PropertyGuru’s board and backed by major shareholders TPG and Epsilon Asia, it signals confidence in its growth potential despite its lack of profitability.

The 10x revenue multiple reflects strong market validation, particularly in a region where such valuations are rare.

EQT’s track record in real estate, exemplified by its previous investment in Idealista, positions it well to drive further growth and value creation for PropertyGuru. The potential for a 3x return within five years indicates a positive outlook for the proptech sector in Southeast Asia, which is increasingly attracting global investment.

However, Halper Sadeh’s ongoing investigation raises concerns about whether the agreed sale price adequately reflects the company’s value. The law firm’s scrutiny could lead to demands for higher consideration or additional disclosures, ensuring that shareholders are treated fairly.

As the deal progresses, these legal challenges could impact its finalization and the future trajectory of PropertyGuru under EQT’s ownership.

Sainul,
Editor.

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NEWS & VIEWS

EQT Private Capital Asia to acquire PropertyGuru for US$1.1B
Meanwhile, a US-based investor rights law firm said it is investigating whether the sale of PropertyGuru to EQT for US$6.70 per share is fair to its shareholders.

Singapore’s DCS Innov acquires wallet-as-a-service platform HolyWally
With the acquisition, DCS Innov will be able to bring its wallet apt InstaWally global and provide a revolutionary WaaS solution that allows companies to offer the same payment experience to their end users worldwide, all within a single app.

Animoca Brands subsidiary GAMEE receives investment from TON Ventures
GAMEE will further integrate TON-based digital assets, such as TON-powered tokens and NFTs, into GAMEE’s Telegram Mini App to enhance user engagement.

Nexus Ocean AI bags funding to eliminate ‘grunt work’ in maritime sector
The investor is London-based Tradeworks.vc; The Singaporean startup creates genAI personas, augmented by a Maritime Language Model, which interacts with knowledge graphs spanning the customer’s internal and external data silos, including mailboxes.

Cradle Fund, VentureTECH to provide comprehensive support system for Malaysian startups
This partnership is a key initiative under the Ministry of Science, Technology and Innovation’s Fund Funnel program, which is designed to address the lack of continuous financial coverage from early-stage to later-stage funders.

Gogoro delays India plans due to policy uncertainty, launches bike-taxi pilot with Rapido
Taiwanese electric two-wheeler maker Gogoro is forced to wait for the finalisation of incentive schemes from the Indian government before ramping up its vehicle sales and battery pack production in the country.

Google is bringing AI overviews to India, Brazil, Japan, UK, Indonesia and Mexico
The search giant is rethinking how it displays source material links, as well; It’s adding a view on the upper right-hand side showing icons of sites above the AI overview on both desktop and mobile.

ByteGami gets Antler’s backing for its plug-and-play gamification platform
ByteGami provides app developers with a platform that eliminates the need for hefty upfront resources to develop gamified features from scratch.

Demand for AI is driving data centre water consumption sky-high
Microsoft, a major data centre operator, says 42% of the water it consumed in 2023 came from areas with water stress. Google said this year that 15% of its freshwater withdrawals came from areas with high water scarcity.

FEATURES & INTERVIEWS

‘Selling a startup in an ‘acqui-hie’ is more lucrative than it seems’
While traditional M&A deals often include retention bonuses for a management team, paid out 18 to 24 months post-acquisition, acqui-hires increasingly focus on incentives for the startup’s workforce.

Forget the rest: This is why you should build your startup in the Philippines
Compared to its SEA neighbours Singapore and Indonesia, the Philippines has some advantages that these markets could not offer.

AI in journalism: Thai media show a 95 per cent adaptation rate despite concerns about overreliance
A contrasting attitude was expressed by journalists in the Philippines with only 52 per cent have integrated AI into their work.

Echelon X: Jeremy Au and Ameer Jumabhoy explore utu’s strategies for sustaining growth in the travel industry
The Echelon X fireside chat underscored the importance of innovation, resilience, and customer-centric approaches in driving business growth.

Echelon X: Catherine Shu, Pei Sheng Goh, Rod Bristow, and Clare Leighton on synergies between Australia and SEA
The Echelon X panel provided valuable perspectives on the opportunities and challenges in bridging Australia and Southeast Asia.

THOUGHT LEADERSHIP

Blockchain: Revolutionising global payment solutions and cross-border remittance
As blockchain technology continues to mature, it will play an increasingly pivotal role in creating a more efficient, accessible, and secure global financial ecosystem.

Navigating the AI maze in Malaysia’s martech: Striking a balance between efficiency and ethics
As AI continues to penetrate different industries, it has never been more urgent to raise awareness and ensure that AI is properly implemented.

Why does cybersecurity training for employees in Malaysia matter and how to go about it?
As Malaysian businesses navigate the complexities of an increasingly advanced landscape, the importance of cybersecurity cannot be overstated.

FROM THE ARCHIVES

Need of the hour: How agritech platforms can protect farmers from climate change
Using crop protection products and digital tools, we can empower farmers to overcome climate change and safeguard food security.

How to grow a global audience by leveraging social media
Social media has revolutionised the way people interact, a solid social media following will build loyalty and create a lot of buying power.

The data revolution: Innovation and evolution in APAC’s hospitality industry
Technology is enhancing the hospitality industry’s ability to deliver meaningful experiences that people remember and recommend.

Why community building has replaced lean startup approach to lurk investors?
Ultimately, considering the shift in purchase decision dynamics, companies can sell better with an engaged community.

The age of the super farmer: How technology is enabling the average farmer
By embracing innovative technologies to meet the growing global demand for food, we can make a difference for farmers.

After QRIS, what is next for the Indonesian e-payment ecosystem?
Like in many markets, the pandemic had catapulted the use of e-payment services in Indonesia. But what is next?

Eyeing a Slice of the fast-growing influencer economy in Indonesia
Slice is betting big on the next generation of entrepreneurs who use the audience they built through their content to launch their own businesses.

Fore Coffee sharpens business strategy to achieve profitability
Fore Coffee repositions its brand as a trendy, affordable beverage brand that is adored by Indonesian customers.

How the API economy has sparked innovation during the pandemic in Indonesia
Having been in Indonesia’s fintech startup scene since the early 2010s, I have witnessed firsthand the country’s rapid digital transformation.

Digital detox: A vacation idea for unplugging your life
A digital detox offers a unique opportunity to recalibrate your relationship with both the physical world and the digital realm.

Cakap paves the way for sustainable growth by empowering lifelong learning in Indonesia
Cakap CFO Jonathan Dharmasoeka explains how Indonesian edutech startup Cakap experiences robust growth, doubling revenue YoY.

From a single brew to unicorn: Kopi Kenangan’s journey of coffee and creativity
Kopi Kenangan is now in the early stage of exploring the use of AI for picking locations for new store openings.

There is talent shortage in the e-motorcycle space in SEA: ION Mobility CEO
Indonesia’s e-scooter market is not picking up as there are few appealing offerings for riders to make a switch, says ION Mobility’s James Chan.

We want to be the ‘validation check’ for growth-stage companies in SEA: TNB Aura
In their investment philosophy, TNB Aura is taking a top-down approach when it comes to assessing a potential investment.

Indonesia may have a bright future in Web3 space, but some homeworks remain
Indonesia has all the elements of a supportive Web3 ecosystem with a close-knit community to forward-looking initiatives.

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Last week saw the launch of spare cash management platform Chocolate Finance, the latest innovation by Walter de Oude, widely known for founding Singapore Life (Singlife) in 2014.

Licensed by the Monetary Authority of Singapore (MAS) to perform fund management activities, Chocolate Finance has garnered support from prominent venture capital firms, including Saison Capital, Peak XV Partners, Prosus, and GFC. Henry Golding, the actor known for his role in Crazy Rich Asians (Warner Bros., 2018), has also joined as a brand ambassador and investor.

The company’s operations are based in Singapore. Its core team consists of about 12 employees, and 17 developers in Vietnam provide additional tech support.

In an email interview with e27, Chocolate Finance founder Walter de Oude explains his vision for the new wealth tech platform and how the company aims to realise it.

This is an edited excerpt of the conversation.

What inspired you to build this solution?

Well, I believe that one of the most fulfilling things in life is to build something really cool, something useful that makes the world a better place. This was my ambition when I built Singlife, and it continues with Chocolate Finance.

Also Read: Crypto-AI startups making waves in Asia: The future is here

I wanted to take on the challenge to see if I could find a more efficient way to make spare cash work harder without all the complexities that usually go with that. This meant taking the way fixed-income asset management traditionally operates and reengineering it to manage day-to-day cash needs optimally.

If I could pull this off, I could make the lives of many people better (and hopefully happier) just by making their spare cash work that extra bit harder.

What is the specific problem that Chocolate Finance aims to tackle? Why is it better than the alternative?

Pretty much everyone I know has money sitting in a bank account somewhere, earning little interest—young people, old people, everyone. There is also a general dissatisfaction and growing distrust in traditional financial institutions, with only 30 percent of Singaporeans saying they trust financial institutions.

The result is customers’ desire for greater freedom and access to straightforward financial services. The importance of making things simple, understandable and straightforward.

What makes us stand out is that we’ve reengineered how short-term money is managed in the background, as a fund manager and not a bank, to optimise the potential returns that can be delivered. We stand behind these to ensure that we deliver our target 4.2 per cent p.a return on each customer’s first S$20,000 in a market where customers usually need to jump through hoops to unlock higher returns or lock their money in for long periods to get up to 3.5 per cent p.a return.

We see ourselves as the space between traditional financial institutions and fintech providers. We are fully licensed by the MAS for fund management and utilise innovative technology to solve traditional banking woes. We are not competing with asset managers offering high returns with high risk and volatility. Instead, we are a new place for the money you set aside for daily expenses. Whether it is your emergency fund or spare cash, you can now enjoy solid returns without the usual fuss or worry.

Also Read: Mastering legal nuances: How Bering Lab balances AI and human expertise

Who are your users? What is your user acquisition strategy?

Chocolate is for everyone. Everyone wants their spare cash to work harder for them, effortlessly. Our users vary from all ages, income groups and backgrounds and we have seen great reception thus far. We believe the product speaks for itself, and hope that our key product offerings and brand sets us apart from traditional financial institutions.

We are happy to see that our customers are responding well to Chocolate Finance thus far, with five-star reviews. We’re so proud of what we have built and how we are helping our customers.

What is your business model?

Account holders’ money is invested in a portfolio of fixed-income funds carefully selected to optimise risk-adjusted returns based on factors such as duration, yield to maturity, credit quality, and currency. This approach allows the portfolio to target an optimal target return/volatility profile on a forward-looking yield-to-maturity basis. This basically means we lock in achievable yields in the market and deliver them in a smoothed, stable predictable way to customers – currently 4.2 per cent for your first S$20,000.

During this process, no fees are taken, and no money is made until the target returns are delivered. Additionally, if the portfolio does not achieve the target 4.2 per cent p.a. for the first S$20,000, the difference will be topped up to ensure the target return during the Qualifying Period.

The Chocolate Finance managed account is a new portfolio of fixed-income securities comprising a collection of funds. The portfolio is currently made up of the Dimensional STIG SG fund, UOBAM United (SGD) fund, Fullerton Short Term interest rate fund (SGD) and the LionGlobal Short Duration Bond fund (SGD).

It is worth noting that the underlying funds of the Chocolate Managed Account are invested globally to optimise returns. Any investments in global currencies are hedged back to SGD to protect against FX risk.

Also Read: Blockchain technology: Revolutionising global payment solutions and cross-border remittance

What are your targets for your first year?

To establish Chocolate Finance as Singapore’s favourite place for spare cash. A happy place for money. So far, we have had such an amazing response we are tracking way ahead of our first-year expectations.

What is your major plan for 2024?

2024 is the year when Chocolate Finance comes to life. We have rolled out our Chocolate Accounts, which are delivering awesomely. For the rest of the year, we will focus on feature improvement, and executing the feedback from customers so far on how to make Chocolate even better.

Things to look out for in the year ahead include Visa debit cards with super FX rates, new ways to move money (e.g., eGIRO), and more!

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Image Credit: Chocolate Finance

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Indonesian fintech startup Finture, which runs YUP, a consumer finance tool combining credit card and e-wallet features, has raised nearly US$30 million in a Series B investment round led by Asia-focused VC firm MindWorks Capital.

XVC, SWC Global, Richen Pioneer, and Antao Capital also joined the round.

The new funding will fuel expansion into new markets, including Hong Kong, Vietnam, and the Philippines, over the coming years.

Founded in 2021, Finture provides accessible and affordable financial solutions. YUP, an aggregator platform registered with the Financial Services Authority of Indonesia, connects users with pay-later services from licensed financial institutions while offering promotional benefits.

The startup has partnered with several licensed financial institutions to provide YUP products.

Also Read: From complexity to clarity: How fintech makes people and business life easier

The company said in a press statement that YUP has gained traction among younger users and secured an exclusive Visa partnership, allowing access to over 130 million Visa merchants worldwide. It has also amassed over one million users and developed a network of more than 40 million local merchants.

The platform has established partnerships with Indonesian retail conglomerate MAP Group, BP, and convenience store chains Indomart and Alfamart. These collaborations enable YUP to provide exclusive discounts on everyday purchases across Indonesia.

Since its inception, Finture has raised around US$80 million in total equity investments.

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Image credit: YUP

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Earlier this month, Malaysia-based Tapway officially launched SamurAI, a cutting-edge Vision AI platform designed to help organisations analyze video footage and images, transforming this data into actionable insights without coding.

The SamurAI platform comprises two main products: SamurAI Copilot and SamurAI Central. The technology can be applied across various industries, including policy compliance enforcement, product quality inspection in manufacturing, health, safety, and environment (HSE) monitoring, product counting in plantations, vehicle tracking, and restaurant hygiene compliance. The platform aims to streamline operations and enhance decision-making processes across various applications.

Tapway also announced its partnership with Japan-listed Asteria, a leading no-code software development company, in a significant move to expand its market reach. This collaboration aims to co-develop an AIoT Suite product bundle to enable users to implement comprehensive end-to-end solutions by integrating cameras and IoT sensors to trigger smart actions.

This marks a crucial step for Tapway as it seeks to penetrate new markets in Southeast Asia (SEA) and Japan, leveraging Asteria’s established presence in these regions.

Founded by CEO Lim Chee How, who previously worked with Airbus Group on technology and system integration projects, Tapway is run by a team of around 30 members. The company serves various industries, including retail, F&B, manufacturing, logistics, transportation, and smart cities, focusing on system integrators, IT managers, and operations managers.

Also Read: How Transparently.AI uses Artificial Intelligence to detect accounting manipulation, fraud

Although Tapway has been self-funded since its inception in 2015, the company plans to raise funding in late 2024 to capitalise on growing demand and momentum in the market.

On being an AI startup in SEA today

In an email interview with e27, Lim discusses the biggest challenges an AI startup in SEA faces today. We also touch upon major tech companies’ dominance in the global AI field.

As a SEA-based AI company, how does Tapway plan to deal with it?

“I strongly believe that AI startups in SEA should not be competing with the major tech companies to compete in the LLM space but to build products around models that have been trained by them,” Lim answers.

“Tapway, for one, has been working with Meta and Anthropic vision language model (VLM) to integrate into our processes, including image autolabel with prompts using VLM, image filtering and extraction from videos using VLM prompts as well as integration of the latest VLM models into the SamurAI Copilot inference software. I believe that the Gen AI tools created by the major tech companies are not a threat, but a boon to the AI industry.”

Lim also points out that the increasing popularity of AI presents significant opportunities for his company.

“As AI becomes more mainstream, businesses are more open to adopting AI-driven solutions. Tapway plans to seize this opportunity by quickly integrating the latest state-of-the-art Vision AI technology into the platform and making the product user-friendly and easy to use without any AI technical knowledge. Fundamentally, the Tapway vision is to bring Vision AI to everyone by making it affordable and easy to use,” Lim says.

Also Read: Will China lead the Artificial Intelligence game by 2030?

“Also, by focusing on specific industry use cases and demonstrating how SamurAI can address these specific needs in terms of operational efficiency, quality control, workforce productivity, and workplace safety, among the few, Tapway aims to position itself as a leading choice for organisations looking to integrate Vision AI into their operational processes.”

Coming soon for Tapway

Tapway is poised to introduce several groundbreaking innovations in the next 12 months, focusing on advancing Vision AI technology.

Key developments include the integration of an action recognition model training pipeline into SamurAI Central, enabling users to upload, label, and train models to analyse video content rather than static frames. Additionally, users can fine-tune their Vision Language Models (VLM) with their own datasets, and intelligent video search capabilities using natural language queries will be introduced.

Furthermore, Tapway plans to integrate with no-code IoT middleware platforms like Asteria, enabling a comprehensive Vision-Compliance-Action pipeline.

“Tapway’s major plan for 2024 and beyond includes expanding its market presence in Southeast Asia, enhancing its product features, and continuing to innovate in the Vision AI space. The company aims to strengthen its position as a leading no-code Vision AI platform provider and cater to a growing range of industries and applications,” Lim closes.

“Specific strategic initiatives may involve scaling operations, building new partnerships, and further developing the SamurAI platform to meet evolving customer needs.”

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Image Credit: Tapway

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Known for its vibrant culture and diverse economy, the bustling capital of Malaysia has become a magnet for tech startups and innovation hubs. With government support, a growing pool of talent, and state-of-the-art infrastructure, Kuala Lumpur is transforming into a premier destination for technology and entrepreneurship in Southeast Asia. Its dynamic ecosystem fosters collaboration and innovation, positioning it as a crucial player on the global tech stage.

A team from Quest Ventures visited the city to meet with partners and get the latest updates on the Malaysian ecosystem.

Stability and support: The key to Malaysia’s thriving startup ecosystem

Malaysia has experienced its share of economic fluctuations, but the advent of a new government has ushered in a period of increased stability and optimism, particularly for startups and ventures. This renewed stability has fostered a more conducive environment for entrepreneurial growth and investment.

With supportive policies, improved regulatory frameworks, and initiatives aimed at boosting innovation and attracting foreign investment, the Malaysian startup ecosystem is poised for significant growth. This positive shift encourages venture capitalists and entrepreneurs to explore and expand their ventures, contributing to the country’s economic development and positioning Malaysia as a burgeoning hub for technology and innovation in the region.

Acting as a crucial link between Malaysian startups and investors, MAVCAP leverages government funding to partner with private investors, thereby propelling early-stage venture capital funds to invest in startups. As the first to invest in the Malaysian startup ecosystem, MAVCAP sets a precedent that attracts further private investment, essential for nurturing a vibrant entrepreneurial landscape.

Additionally, MAVCAP independently follows the strategic direction set by the Malaysia Venture Capital Roadmap 2024-2030, which aims to establish Malaysia as an emerging venture capital hub in Southeast Asia through its three strategic pillars: Funding, Regulatory Reform, and Capacity Building. MAVCAP’s efforts align with these pillars, enhancing investor confidence and fostering a supportive regulatory environment.

The Malaysia VC Roadmap and the KL20 Action Plan are pivotal initiatives aimed at transforming Kuala Lumpur into a leading technology and innovation hub. The Malaysia VC Roadmap outlines the strategic framework to bolster the venture capital ecosystem, providing necessary funding and support for startups and entrepreneurs. This roadmap focuses on fostering innovation, improving regulatory frameworks, and enhancing investor confidence.

Complementing this, the KL20 Action Plan sets a visionary goal for Kuala Lumpur to become a top-20 global startup ecosystem by 2025. This plan includes initiatives to improve infrastructure, attract global talent, and create a conducive environment for tech enterprises. Together, these efforts are driving Kuala Lumpur’s emergence as the Silicon Valley of Malaysia, promoting sustainable growth and technological advancement in the region.

Pioneering sustainable investment practices in Malaysia

MAVCAP demonstrates its commitment to sustainable and responsible investing through the development of the Environmental, Social, and Governance (ESG) Investment Tool in collaboration with Fuller Academy. This tool aids Malaysian VCs in incorporating ESG considerations into their investment decisions.

In addition, MAVCAP’s impact programs, such as the 30 per cent Club Malaysia, focus on increasing gender diversity by facilitating at least 30 per cent women representation on the boards of companies listed on Bursa Malaysia.

Also Read: Navigating the AI maze in Malaysia’s martech: Striking a balance between efficiency and ethics

In the same vein, other companies are actively advancing their ESG efforts to foster sustainable investment practices in Malaysia. In line with national initiatives like the Green Investment Tax Allowance, Green Technology Financing Scheme, and the Sustainable and Responsible Investment (SRI) Taxonomy, Artem Ventures ensures a robust ESG framework within its operations.

Artem Ventures differentiates itself by introducing ESG frameworks to their startups through workshops, helping them select Sustainable Development Goals (SDGs) and agree on meaningful metrics. They prioritise early ESG integration by asking pertinent questions from the outset, ensuring that ESG considerations are ingrained in the investment process and tracked effectively. By tracking monthly data points from portfolio companies and tailoring their approach based on practical feedback, Artem Ventures is conditioning the ecosystem to prioritise ESG, mirroring MAVCAP’s efforts.

Adding to this robust ESG landscape is ERTH, one of our portfolio companies, dedicated to responsible e-waste management in Malaysia. Despite incurring logistics and marketing costs, ERTH maintains healthy profit margins by leveraging B2B channels to scale, even if it means sacrificing a third of the proceeds. The company collects Grade A, B, and C e-waste, optimising the selling price for Grade C materials and negotiating a 60 per cent increase in its value.

Ensuring that all materials are properly licensed eliminates the risk of improper recycling. Despite the slow rate of 5G adoption and the concentration of e-waste in the manufacturing sector, ERTH effectively addresses the scattered household e-waste by accepting all types and sorting them later. The high barrier to entry in the e-waste recycling industry allows ERTH to maintain a competitive edge, as it takes considerable time for new competitors to reach its level of operation. Through these efforts, ERTH plays a crucial role in promoting environmental sustainability and responsible e-waste management in Malaysia.

Together, MAVCAP, Artem Ventures, and ERTH exemplify the multifaceted approach Malaysia is taking to enhance its technology and innovation ecosystem while prioritising sustainability. Their combined efforts not only foster economic growth and innovation but also ensure that ESG considerations are integral to the development of Malaysia’s burgeoning startup landscape.

Thriving through adversity: Resilience and innovation amid the pandemic

However, it has not always been smooth sailing for all. The COVID-19 pandemic brought about unprecedented challenges, forcing many businesses to shut down. Yet, just as diamonds form under pressure, some companies managed to not only survive but thrive during these difficult times. PostCo, one of our portfolio companies, is a prime example of such resilience. As the pandemic shifted consumer behaviours and increased reliance on digital and contactless services, PostCo quickly adapted its business model to meet these new demands.

By leveraging its strengths in logistics and technology, the company expanded its services to provide more flexible and convenient parcel collection and return solutions. This ability to innovate and pivot in response to market changes allowed PostCo to grow and find new opportunities amid the crisis, demonstrating that even in the face of adversity, businesses with agility and vision can emerge stronger.

Today, PostCo offers a compelling value proposition by streamlining the product return process through its innovative platform. PostCo eliminates the hassle of having to email retailers to exchange products by providing a Shopify-like plug-in, allowing seamless returns without involving the retailer directly. With over 100,000 drop-off points in the UK and Australia, PostCo is now looking to expand into Asia, where the market is heavily oriented toward marketplaces.

By focusing deeply on the reselling aspect, PostCo has strategically positioned itself to prove that returns can be beneficial. The aim is to change the perception of returns from being a burden to an opportunity, demonstrating that with the right approach, returns can indeed be embraced and profitable.

Digitalisation in Malaysia: Transforming the economic landscape

Digitalisation in Malaysia is rapidly transforming the country’s economic landscape, driving innovation, efficiency, and growth across multiple sectors. PitchIN plays a crucial role in this digital transformation by providing innovative crowdfunding solutions that leverage digital platforms to democratise access to capital. Initially developed by Watchtower & Friends, an accelerator that identified a gap in the market, pitchIN has since become Malaysia’s largest equity crowdfunding (ECF) platform.

Also Read: Why does cybersecurity training for employees in Malaysia matter and how to go about it?

They offer a range of services including equity crowdfunding, a secondary market for trading shares of previously funded companies, and Token Crowdfunding (TCF). TCF, which has emerged with the rise of digitalisation, allows companies to issue utility tokens, asset-backed tokens, and tokenised securities, providing various rights to holders such as revenue sharing and exclusive access to services. This digital fundraising method aligns with the broader trend of integrating blockchain and fintech innovations into the financial ecosystem, streamlining investment processes and broadening the scope of potential investors.

PitchIN also works with ecosystem partners such as agencies, universities, venture capitals, accelerators, and industry anchors to onboard more investors and lead deals. The introduction of the PSTX secondary market, designed to facilitate easier entry and exit from ECF deals, and the ongoing efforts to integrate traditional companies and investors into the Web3 ecosystem, further illustrate pitchIN’s commitment to enhancing Malaysia’s digital economy. Their efforts are supported by ECF tax incentives and a vision for PSTX to become the secondary market for all private companies in Malaysia.

A Place Where’s (APW) evolution from a traditional printing factory into a vibrant collaborative event space is another testament to the impact of digitalisation. By embracing the digital shift, APW has transformed itself into a hub for creative and entrepreneurial activities, providing a versatile venue for events, co-working, and community engagement.

This adaptive reuse of industrial space reflects a broader trend in Malaysia where businesses are reimagining their operations and business models to align with digital opportunities. APW’s transformation underscores the importance of flexibility and innovation in the digital age, showcasing how traditional industries can thrive by integrating digital strategies.

Digitalisation also extends to various other sectors in Malaysia, including finance, healthcare, education, and retail. The adoption of e-commerce, digital payment systems, telehealth services, and online learning platforms has surged, driven by both consumer demand and the necessity brought about by the COVID-19 pandemic. This is further fuelled by the Malaysian government’s support for digitalisation as evidenced through various policies and incentives aimed at encouraging businesses to adopt digital technologies.

Tax incentives for investments in technology, grants for digitalisation projects, and support for digital startups are just some of the measures in place to foster a robust digital economy. Together these initiatives drive profound changes across the economy, fostering innovation and growth while creating new opportunities for businesses and investors. Efforts by pitchIN and APW contribute to a dynamic and forward-thinking entrepreneurial ecosystem, which bode well for Malaysia to become a leading digital economy in the region.

The Malaysian startup ecosystem is on a promising trajectory, driven by innovative initiatives, robust support structures, and a growing culture of entrepreneurship. Kuala Lumpur, with its vibrant and dynamic environment, stands at the forefront of this transformation, attracting both local and international investors.

As the digital wave spreads, other parts of Malaysia are also expected to experience significant growth in the coming years, creating a fertile ground for new ventures. For investors seeking opportunities in a burgeoning market, Malaysia represents a compelling destination with immense potential and a bright future.

This article is co-authored by Jazlynn Quek, Summer Analyst at Quest Ventures. 

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