According to the Malaysia Fintech Report 2024 published by Fintech News Malaysia, there are more than 280 fintech companies active in the Malaysian fintech landscape. The ecosystem is growing year by year, and 2024 was a pivotal period, driven by the launch of the country’s first digital banks, a boost in digital payment adoption, and several progressive regulatory advancements.

This week’s article looks at why Malaysia is a strategic launchpad for building and scaling fintech hubs in Southeast Asia.

Malaysia fintech landscape

The rapid development of Malaysia’s fintech sector is largely due to proactive regulatory support. 

In 2015, the Securities Commission Malaysia (SC), which is in charge of the capital market, launched the Alliance of Fintech Community (aFINity) to enhance the fintech ecosystem. With the SC framework, Malaysia became the first country in Southeast Asia to regulate equity crowdfunding platforms in 2016. To date, the SC has issued multiple regulations, including robo advisers, peer-to-peer (P2P) financing, digital assets exchanges and digital asset custody services.

During the same year, Bank Negara Malaysia (BNM), the country’s central bank, formed the Financial Technology Enabler Group (FTEG) and launched its sandbox programme in 2016. 

This year, the SC partnered with Khazanah Nasional, a sovereign wealth fund to explore tokenised bonds, aiming to enhance efficiency and transparency in bond issuance. 

Also Read: Bridging the digital divide: Addressing Malaysia’s skills gap

Additionally, Malaysia’s chairmanship of ASEAN in 2025 positions it to champion progressive cross-border fintech policies, fostering deeper regional integration with other ASEAN countries and making it an even stronger launchpad for emerging fintech startups.

Making innovation in fintech work using regulatory sandboxes

Malaysia was among the early adopters of the regulatory sandbox globally. 

The sandbox has played a pivotal role in shaping Malaysia’s fintech ecosystem by facilitating innovation. Past examples include experimenting on fully digital account openings, digital insurance and takaful models, and cross-border remittance solutions. New frameworks have also been introduced, such as the Digital Insurers and Takaful Operators (DITO) category, aimed at promoting greater inclusion in the insurance and takaful sectors.

In 2024, Bank Negara Malaysia updated the sandbox to include a ‘Green Lane’ which includes an accelerated pathway for financial institutions with strong risk management capabilities, allowing them to test innovations more swiftly. 

What makes the BNM sandbox unique is the collaboration between BNM and the Fintech Association of Malaysia (FAOM), a nonprofit founded in 2016 to grow the fintech industry which includes the pre-screening mentoring programme involving experienced fintech founders and mentors in the industry in guiding new applicants before they enter the regulatory sandbox. This pre-screening helps improve the sandbox process by ensuring only well-prepared, viable innovations move forward for testing.

Complementing this, BNM launched the Digital Asset Innovation Hub in June 2025, another sandbox initiative to explore stablecoins, tokenisation, and supply chain finance. The sandbox is open to both local and foreign entrants as BNM seeks to position Malaysia as a leader in blockchain-enabled finance in ASEAN. 

On a side note, Malaysia has indeed a vibrant digital asset and Web 3 ecosystem notably global players such as Coingecko, a leading crypto-asset data aggregator and Etherscan, an Ethereum blockchain explorer which reflects Malaysia’s strong digital asset and blockchain literacy.

Similarly, the SC introduced its Regulatory Sandbox in early 2025, focusing on new capital market products and services that don’t presently fit within the existing capital market frameworks. Considering the first cohort application has ended, market observers are eagerly waiting for the shortlisted applicants to be announced by the SC which hopefully offer new innovative products or services that will address underserved markets.

Market and founder friendly policies for new fintech startups

In addition to a lower cost of living in Malaysia that can expand one’s cash runway, setting up a fintech startup is straightforward.  A foreigner can have 100 per cent equity stake in a local domicile entity without the need to engage a local proxy or nominee for most technology-based businesses, with minimal restrictions generally applying to manufacturing and services.

Also Read: Re-skilling in the age of AI and navigating the future of work in Malaysia

Additionally, the Malaysia Digital (MD) status, issued by the Malaysia Digital Economy Corporation (MDEC), offers tax incentives for eligible fintech companies including fintech. Companies like TNG Digital have leveraged MD status to expand rapidly. 

For fintech founders, the Malaysia Tech Entrepreneur Programme (MTEP) provides tailored visas including a one-year pass for first-time entrepreneurs and a five-year option for seasoned founders, facilitating easy setup in tech sectors. 

Asia Fintech Alliance as a launchpad across Southeast Asia

As a member of the Asia Fintech Alliance (AFA), FAOM also works closely with regional counterparts to help springboard local fintech companies to expand into other markets within the 15 alliance network including major jurisdictions in the region such as Singapore, Indonesia, Japan, etc. 

One of the initiatives led by the AFA is a ‘fast track’ programme aimed at making it easier for existing regulated fintech companies in one jurisdiction to gain approval to operate quickly in other supportive countries. This is still a work in progress, as it depends on persuading regional regulators to align regulations and address shared challenges, with the goal of helping more local fintech companies expand across the region more quickly.

Final thoughts

Malaysia’s combination of progressive regulations, collaborative industry–government initiatives, and a thriving fintech ecosystem makes it a compelling base for a major fintech hub in Southeast Asia. As a fintech founder, Malaysia may serve well as an ideal launchpad for fintech startups targeting the region’s 700 million consumers.

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Global early-stage venture capital firm Antler has announced an investment of US$7.4 million into several startups across Southeast Asia during the first half of 2025, with a particular focus on artificial intelligence (AI) ventures.

The Singapore-headquartered firm’s investments span key innovation hubs including Singapore, Indonesia, Vietnam, and Malaysia.

Of the total, US$2.8 million has been specifically allocated to seven AI startups that graduated from its new AI Disrupt residency programme. This brings Antler’s AI investments globally to 74 deals in 2024.

Also Read: Antler introduces pre-seed programme AI Disrupt in response to fast-moving market

The AI Disrupt programme is a four-week, in-person residency based in Singapore, designed to accelerate AI-focused companies that already possess a minimum viable product (MVP) and are serving live customers with their core AI technology. The programme provides tailored support aimed at rapidly scaling go-to-market strategies and technical capabilities.

Winnie Khoo, Partner at Antler, said: “With the speed of product development made possible through technology today, we are matching that with our support to founders and investment into startups. AI startups are moving 10x faster than just two years ago, and AI Disrupt is purpose-built for founders with market-validated products to move and scale much faster. These AI founders do not wait. Moving aggressively is a moat that founders can gain in the AI age.”

Each of the seven selected startups secured US$400,000 in funding after a four-week intensive sprint. Additionally, during the residency, each startup gained access to over US$650,000 worth of cloud computing, infrastructure, and tooling credits, specifically tailored for AI development to enhance their execution speed.

The startups that received investment through Antler AI Disrupt include:

• Iris: Autonomous, no-code agents for workflow automation and data collection.
• Nugen: Domain-aligned AI enhancing reliability in specialised agent workflows.
• IndustrialMind.ai: Intelligence solutions optimising manufacturing operations.
• Lambdai Space: AI-driven radar imaging for actionable climate and insurance insights.
• Anamaya AI: AI-powered travel aggregation optimising corporate travel.
• AppSecAI: Automation of application security accelerating software delivery.
• 5.Y (GLUCOSE): Autonomous customer engagement and personalisation in complex industries.

Southeast Asia’s early-stage venture market faced significant headwinds in the first half of 2025. The region witnessed a 68 per cent year-over-year decline in seed funding and a 53 per cent drop in overall early-stage investments. This challenging environment has led to longer fundraising cycles, stricter investor scrutiny, and fewer avenues for follow-on capital for many founders.

Despite this backdrop, Antler strategically focuses on highly curated AI startups with high potential, providing larger initial investments and targeted support to enable faster scaling. This proactive stance reflects Antler’s strong belief that emerging technologies will drive the region’s next wave of growth and innovation.

Also Read: Antler backs Otonoco AI to modernise compliance with GenAI

Jussi Salovaara, co-founder and Managing Partner Asia at Antler, commented: “The current funding landscape across Southeast Asia in early 2025 demands that founders be sharper than ever in both their approach and execution. We are prepared to match their speed and provide flexible early capital that enables them to accelerate, but we are also more selective. Once a team can demonstrate a compelling use case for their technology and the ambition to scale globally, we will back them with conviction.”

Applications are now open for the next AI Disrupt residency, scheduled to commence on 21 October 2025 in Singapore. The upcoming programme will continue focusing on compounding technical edge, unlocking go-to-market traction through targeted coaching, deep technical sessions with ecosystem partners, and investor preparation tailored for AI-first companies.

Interested parties can apply via this link.

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Recent developments, including softer-than-expected US inflation data, expectations of Federal Reserve rate cuts, and ongoing trade policy uncertainties, have driven a notable improvement in global risk sentiment. Meanwhile, political pressures on Federal Reserve Chair Jerome Powell, a robust Wall Street rally, and significant movements in cryptocurrencies like Bitcoin and Ethereum highlight the multifaceted nature of today’s markets.

The US economy remains at the forefront of global financial discussions, particularly following July’s softer-than-expected inflation data. This development has fuelled expectations of a Federal Reserve rate cut in September, as inflationary pressures from President Donald Trump’s tariff policies have not yet fully materialised. Inflation, a key metric for central banks worldwide, has been a persistent concern since the post-COVID-19 price spikes.

The Consumer Price Index (CPI), a primary measure of inflation, has shown signs of moderation, with recent readings suggesting that price pressures are easing. This has led investors to anticipate a more accommodative monetary policy from the Federal Reserve, which could lower borrowing costs and stimulate economic activity.

Goldman Sachs economists, for instance, have revised their forecasts, predicting a potential rate cut in September, three months earlier than previously expected, with a terminal fed funds rate of 3-3.25 per cent by 2026. This shift reflects a belief that tariffs may have a one-time effect on price levels rather than sustained inflationary pressure, coupled with signs of a softening labour market.

However, the Federal Reserve’s cautious approach underscores the uncertainty surrounding trade policies. President Trump’s tariffs, which include a 25 per cent duty on goods from Mexico and Canada and doubled tariffs on Chinese imports, have raised concerns about potential price increases. Fed Chair Jerome Powell has emphasised the need to “wait and learn more” about the tariffs’ impact on inflation before adjusting rates, a stance that has drawn significant criticism from the Trump administration.

Powell has acknowledged that tariffs have contributed to recent price increases, with retailers likely to pass on higher costs to consumers as pre-tariff inventories deplete. Despite these concerns, the Treasury Department, led by Secretary Scott Bessent, has downplayed the consumer impact, citing only a modest 0.1 per cent uptick in prices and highlighting record tariff revenues of US$23 billion in May. This revenue surge underscores the fiscal implications of tariffs, which have generated nearly US$100 billion this year, though businesses have borne much of the cost so far.

The political pressure on Powell has intensified, with Trump publicly considering a “major lawsuit” against him, accusing the Fed Chair of slow-walking rate cuts due to misplaced fears of tariff-driven inflation. Additionally, a referral by Rep. Anna Paulina Luna to the Department of Justice, alleging perjury by Powell over the Fed’s headquarters renovation, has added to the political overhang. These developments have raised concerns about the Federal Reserve’s independence, a cornerstone of effective monetary policy.

Investors worry that political interference could undermine the Fed’s ability to make data-driven decisions, potentially destabilising markets. The US Dollar Index, which measures the dollar against a basket of major currencies, weakened by 0.4 per cent following the inflation data and reports of Trump’s plan to nominate EJ Antoni to lead the Bureau of Labor Statistics. This nomination could signal a shift toward more administration-aligned economic reporting, further complicating the Fed’s policy landscape.

Also Read: What’s shaping the markets right now: AI hype, Bitcoin’s calm, and the Fed’s next move

Despite these uncertainties, Wall Street has experienced a robust rally, with the S&P 500 gaining one per cent, the NASDAQ climbing 1.4 per cent, and the Dow Jones rising 1.1 per cent. The communications and information technology sectors have been key drivers, reflecting investor optimism about economic resilience and technological innovation.

The S&P 500’s recent highs mark a recovery from a 10 per cent correction earlier this year, triggered by tariff-related fears. US treasuries, meanwhile, have shown mixed performance, with front-end yields declining and long-end yields rising, resulting in a steepening yield curve. This dynamic suggests that investors anticipate stronger economic growth in the longer term, possibly driven by fiscal stimulus or reduced regulatory burdens under the Trump administration. The decline in the 10-year Treasury yield to 4.40 per cent reflects growing demand for safer assets amid trade tensions and geopolitical uncertainties.

In the commodities market, gold has remained largely unchanged at US$3,347 per ounce, maintaining its status as a safe-haven asset despite improved risk sentiment. Brent crude, on the other hand, fell 0.77 per cent to US$66 per barrel, reflecting a lack of significant catalysts and subdued demand expectations. The interplay between these commodities and broader market trends highlights the delicate balance between inflationary pressures and growth concerns. Gold’s stability suggests that investors are hedging against potential volatility, while the decline in oil prices points to weaker global demand, particularly in light of trade uncertainties.

In Asia, the Reserve Bank of Australia (RBA) has taken a dovish stance, lowering its policy rate by 25 basis points to 3.60%, marking its third rate cut this year. This move reflects easing inflation concerns and a shift in focus toward global trade and demand risks. Asian equity markets have responded positively, buoyed by Trump’s extension of the US-China trade truce and confirmation that gold imports will remain tariff-free. These developments have alleviated some concerns about trade disruptions, contributing to gains in Asian indices and a positive start to today’s trading session. US equity futures, however, suggest a mixed opening, indicating that investors remain cautious about the broader economic outlook.

The cryptocurrency market has also been a focal point, with Bitcoin retesting US$122,000 before pulling back to US$119,053. This rally reflects renewed investor enthusiasm, driven by broader market optimism and significant institutional activity. Binance’s dominance in global trading volume is a critical metric, as concentrated activity on a single exchange could signal limited market breadth, potentially undermining the sustainability of the rally.

Historical comparisons suggest that broader market participation is essential for sustained price gains at all-time highs. Meanwhile, Ethereum has surged over seven per cent to above US$4,500, fuelled by significant institutional adoption and capital flows. The Ethereum Foundation’s sale of 2,795 ETH, valued at US$12.7 million, has drawn attention, particularly as it coincides with ether’s strong price momentum. The wallet, linked to the “EF 1” address, now holds 99.9 ETH and 11.6 million DAI, reflecting a strategic move to lock in gains during the price surge.

Corporate adoption of Ethereum has further bolstered its performance, with companies like SharpLink Gaming and BitMine holding nearly US$9 billion in ETH. BitMine, under the leadership of chairman Tom Lee, has transitioned from Bitcoin mining to an Ethereum treasury, with holdings exceeding US$5 billion. Lee’s ambitious plan to raise US$20 billion to acquire more Ethereum underscores the growing institutional confidence in the cryptocurrency.

Spot Ethereum exchange-traded funds (ETFs) have also seen record inflows, with over US$1 billion in daily net inflows on Monday, marking a significant milestone since their debut. These developments highlight Ethereum’s outperformance of Bitcoin in year-to-date gains, driven by its utility in decentralised finance and institutional backing.

Also Read: Trump’s policy effect: From semiconductors to Bitcoin, how government moves are shaping markets

The broader economic and market environment remains fraught with uncertainty. Trump’s tariff policies, while generating significant revenue, pose risks to consumer prices and global trade dynamics. The Federal Reserve’s cautious stance reflects a delicate balancing act between fostering economic growth and containing inflation.

Political pressures on the Fed, combined with leadership transitions looming in 2026, could further complicate monetary policy. Meanwhile, the resilience of US equity markets and the surge in cryptocurrencies suggest that investors are navigating these uncertainties with a mix of optimism and caution.

In my view, the current improvement in global risk sentiment is a fragile one, heavily contingent on the trajectory of US monetary policy and trade negotiations. The Federal Reserve’s data-dependent approach is prudent, given the potential for tariffs to reignite inflationary pressures. Political interference in central bank operations risks undermining market confidence and could lead to volatility if not carefully managed.

The strength in equity markets, particularly in technology and communications, reflects the transformative potential of innovation, but valuations may be stretched if economic growth falters. Cryptocurrencies, while benefiting from institutional adoption, face risks of overheating, particularly if trading activity remains concentrated on platforms like Binance. The RBA’s rate cut and Asia’s positive response to trade truce extensions highlight the global ripple effects of US policy decisions. Investors should remain vigilant, balancing opportunities in risk assets with hedges like gold to navigate the uncertainties ahead.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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As food lovers, many of us snap photos of memorable meals, trade recipes, and share our favourite hidden eateries. Yet, these moments often get lost in the noise of mainstream platforms like Instagram and TikTok.

“These social networks are very powerful, but they are built for everything,” says Rajesh Stanley, co-founder of Flavorist. “We wanted to build a platform exclusively for food, where sharing a meal is not just another post, but the main event. That spark turned into Flavorist.”

Also Read: Improving food safety in SEA with tracking and tracing technologies

Founded in October 2024 by Stanely and Shivapakiam Pooniamoorthi, Flavorist is a dedicated social network for home-cooked creations, restaurant discoveries, and food videos. Rather than competing with the giants, it offers a more intentional, focused space where food is always the star.

“Whether you’re a passionate home chef, a street food hunter, or someone who simply enjoys photographing every meal, Flavorist becomes your edible diary and your go-to community of fellow flavour seekers,” Stanley explains.

Built on authenticity, not algorithms

From the outset, Flavorist’s guiding principle has been to create a minimalist and focused experience, eschewing intrusive ads and flashy filters in favour of genuine content. This simplicity resonated with early adopters, who describe the platform as “refreshing” and “peaceful.”

Authenticity is reinforced by design choices: minimal editing tools, meaningful captions, origin tags, and real-time posting to encourage sincerity. Plans include creator education programs, community guidelines that reward substance over virality, and features that celebrate culinary diversity.

Flavorist welcomes every food story, whether it’s a humble home-cooked curry or a Michelin-level plating. The interface is easy for beginners yet robust for professionals to showcase their craft. Community health is safeguarded through a blend of AI filters, user flagging, and human moderation, backed by an emphasis on kindness and inclusion.

Global ambitions with local roots

Singapore’s cultural diversity and passion for food made it the ideal launchpad. Stanley believes that if Flavorist thrives here, where East meets West, it can flourish anywhere.

The platform curates content that blends universal appeal with hyper-local relevance, spotlighting regional dishes and collaborating with local creators. By merging trend analytics with community storytelling, Flavorist ensures that a street snack from Bangkok can inspire a home cook in Barcelona, while honouring the dish’s origins.

Over the next year, the goal is to become the heartbeat of a global food movement, uniting millions across cultures and cuisines.

Beyond the app: Building a culinary ecosystem

Flavorist’s vision extends beyond digital sharing. The roadmap includes food commerce tools to empower creators, immersive events, and offline experiences that make culinary connections tangible. The mission: to be more than an app, becoming a movement that celebrates food culture in all its forms.

In a deliberate move to protect authenticity, the platform remains invite-only. This slower growth path means delaying monetisation and resisting algorithm-chasing trends, but it has helped Flavorist maintain a focused, ad-light environment.

Also Read: The realities of scaling food tech in today’s resource-strapped world

Stanley says the most rewarding part has been the community’s deep involvement, from exclusive beta testing to shaping features with real feedback.

Crafting a space where every bite matters

Flavorist stands out by making food the main event in a digital world saturated with fleeting trends and content overload. By prioritising authenticity, fostering community, and blending local roots with global reach, the platform aims to become the trusted home for culinary connection. For its founders, success isn’t measured just in numbers, but in creating a space where every dish, story, and flavour is valued, and where food lovers everywhere can feel at home.

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The global quantum computing sector experienced a profound transformation in 2024, as revealed by McKinsey’s Quantum Technology Monitor 2025 report. The findings indicate that most new startups emerging in 2024 have positioned themselves in the components and application software segments, signalling a significant value shift toward the latter.

This transition reflects the industry’s trajectory from hardware-centric development to a future driven by software-enabled use cases.

The quantum computing value chain is traditionally divided into five main elements: equipment and components, hardware, systems software, application software, and services. For much of the sector’s development, the equipment and components segment has commanded the largest market value share. This dominance stems from component manufacturers’ ability to supply parts compatible with multiple hardware technologies, maximising revenue opportunities while minimising dependency on a single platform.

In 2024, however, the emergence of 11 out of 13 new startups in the components and application software categories highlights a dual trend: the resilience of the component market today, and the long-term strategic focus on applications. Application software companies often specialise in sector-specific solutions, from pharmaceutical research to logistics optimisation, capitalising on the unique demands of quantum-enabled problem-solving.

The report suggests that while components offer lower-risk, hardware-agnostic opportunities, the value chain’s centre of gravity will increasingly move toward application software and cloud-based services over the next decade. As quantum hardware becomes more stable and standardised, its role will shift from being the focal point of development to serving as a backbone for a broad range of industry-specific applications.

Also Read: Antler injects US$7.4M into Southeast Asia startups, with US$2.8M for AI ventures

The staged evolution of the value chain

Today’s quantum computing market remains largely pre-profit for most players, as hardware systems are still in their formative stages and commercial-grade applications are scarce. Tech giants such as Google and IBM continue to concentrate their efforts on hardware development, recognising its foundational role in enabling the rest of the value chain.

Over the next five to ten years, profitability is expected to increase as standardisation erodes component margins and hardware becomes more widely deployable. Given the scarcity of advanced systems and the specialised expertise needed to operate them, hardware and services are projected to deliver the highest returns in this period.

Ultimately, at complete market uptake, the balance will tip decisively toward application software and cloud services, where most value is likely to be captured as end-users become fully “quantum-native”.

The most significant breakthrough in quantum computing in 2024 centred on advances in quantum error correction (QEC), a cornerstone technology for achieving stable and reliable systems. QEC works by mapping multiple physical qubits into a single logical qubit, enabling error detection and correction. By reducing the effects of noise and mitigating decoherence, QEC paves the way for quantum processors to scale effectively while maintaining accuracy.

Leading tech companies — including Google, IBM, and Microsoft — announced significant strides in QEC during 2024, marking a turning point in the race for practical quantum advantage. These developments are significant as they address one of the industry’s biggest bottlenecks: the fragility of quantum states. Improved error correction not only strengthens the performance of existing systems but also makes the development of complex application software more feasible, accelerating the shift in the value chain.

Also Read: Why Vietnam’s digital bank licenses are the dark horse opportunity of 2026

As a discipline, quantum control is increasingly recognised as a strategic priority across the hardware and software layers. By integrating robust error correction protocols into the design of systems and applications, developers can ensure that quantum solutions meet the reliability standards demanded by enterprise and scientific users.

With QEC breakthroughs enhancing system stability, the next frontier for quantum computing lies in tailored applications. Industries with computationally intensive challenges — such as materials science, energy optimisation, and pharmaceuticals — stand to gain the most from specialised quantum software. These niche solutions will become critical differentiators in a market where standardised components and hardware will eventually level the playing field.

While hardware innovation remains vital for startups, the largest long-term opportunity lies in solving real-world problems through quantum-enabled applications. As the value chain evolves, success will hinge on the ability to integrate cutting-edge quantum control technologies into industry-specific software solutions, creating the conditions for quantum computing to deliver on its transformative promise.

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Image Credit: Michael Dziedzic on Unsplash

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