Budget 2025: MBAN applauds measures, asks for matching grant to further amplify early-stage funding
By Digital News Asia October 29, 2024
- Announced measures will strengthen Malaysia's Startup Ecosystem
- Matching grant will spur more participation, increase investment pool
The Malaysian Business Angel Network (MBAN) welcomed the recent Budget 2025 announcement, especially the establishment of a US$229 million (RM1 billion) National Fund-of-Funds allocation under Khazanah, alongside US$14.9 million (RM65 million) for Cradle Fund, describing this “as a pivotal step in empowering startups to expand both regionally and globally.”
Pointing to a recent 500 Global survey that Malaysia has over 30 "A1" grade startups, each generating more than RM5 million in annual revenue with over 20% growth, MBAN highlighted that access to funding remains a critical challenge with studies showing that inadequate financing is among the top three reasons for startup failures.
[RM1 = US$0.229]
It also applauded the new matching investment fund exceeding RM100 million that will be introduced through an equity crowdfunding (ECF) platform to support the growth of local suppliers in the electrical and electronics (E&E) sector, as well as in specialty chemicals and medical devices.
“This initiative aims to provide significant advantages to different areas within the startup ecosystem,” it said. Budget 2025 also allocated RM25 million for creative social entrepreneurs, further strengthening the support for a wide range of entrepreneurial initiatives.
Reinforcing its commitment to nurturing early-stage startups, and acknowledging the support these measures will provide, MBAN nonetheless believes that introducing a matching grant would further amplify early-stage funding.
“This initiative would provide matching capital to angel investors, encouraging more participation and increasing the overall investment pool for startups. We hope the government will consider this proposal, as it could further enhance our ecosystem and support early-stage businesses in their growth journey,” the angel network said.
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