Malaysia is aiming to build its reputation as the new startup hub of Asia by introducing incentives designed to attract high-growth businesses and venture capital firms – the Unicorn Golden Pass and VC Golden Pass.

Under the Unicorn Golden Pass, international businesses that decide to operate in Malaysia will enjoy exemption from fees typically associated with employment passes. They will also receive rental subsidies and favourable tax rates on corporate profits.

Meanwhile, the VC Golden Pass fast-tracks the approval of fund set-ups and exempts senior executives from work visa fees, Nikkei Asia reported.

Economic growth through startups and VCs

The incentives are part of Malaysia’s broader efforts to “create new growth verticals and transform [its] fortunes,” Prime Minister Anwar Ibrahim said during the KL20 Summit.

“We are positioning Malaysia as an axis for leaders in semiconductors, clean energy, agritech and Islamic fintech,” he said.

Economy Minister Rai Ramli also recognised the need for investments and skills to execute their plans.

“With the right investors and the right talent in Malaysia, we will make Malaysia the Southeast Asian base for global technology companies under the Unicorn Golden Pass,” Economy Minister Rafizi Ramli said at the same event.

The entry of global unicorns is expected to develop Malaysia’s “pipeline of future entrepreneurs and senior leaders in tech” and increase the number of highly skilled talent and high-value jobs in the country, the minister said.

Through the programme, limited partners will receive “funding access opportunities, subsidised office spaces, expedited license registrations, and exempted fees for employment passes,” he said.

Malaysia’s ‘green lane’ for VCs

The Securities Commission will open a special “green lane” that will cut down the processing time from six weeks to two weeks for VCs planning to register their funds, according to The Sun.

To qualify, the firms must meet certain requirements outlined in the commission’s Focused Scope Assessment framework.

Roadmap for talent and enterprise development

Apart from attracting highly experienced businesses and VCs, Malaysia plans to sharpen the skills of local finance professionals through a talent development programme. It will also expand financing opportunities for micro, small and midsize enterprises and mid-tier companies.

A five-year roadmap focuses on product innovation, market infrastructure and capacity building.

With a “whole-of-nation approach,” Malaysia aims to cater to “diverse stakeholders to unlock the full potential of MSMEs and MTCs while fostering sustainable growth and development,” said Datuk Seri Awang Adek Hussin, chairman of the Securities Commission.