Is Malaysia a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Malaysia has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Malaysia gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Malaysia

Funding is one of the most critical ingredients in building a successful startup – and Malaysia offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Malaysia's early-stage funding scene is dynamic, supported by various players. Notable VC firms active in this space include 1337 Ventures and Gobi Partners, while government agencies like Cradle Fund and MDEC offer crucial grants and programs. Angel networks such as the Malaysian Business Angel Network (MBAN) and NEXEA also connect startups with individual investors. Despite these resources, challenges persist, particularly a recognized funding gap at the seed and Series A stages, making it difficult for some promising businesses to scale. While government initiatives aim to channel more funds towards early-stage companies, attracting sufficient private investment remains an area for growth.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Malaysia has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Malaysia has a dynamic startup ecosystem with a strong government focus on innovation, aiming to be a top 20 global hub by 2030. Coworking spaces are prevalent, fostering community and providing flexible workspaces for entrepreneurs and small teams. Numerous tech events and conferences occur regularly, facilitating networking and knowledge sharing. Entrepreneurial activity is supported by various government initiatives, grants, and funding options from both public and private sectors, including those for early-stage companies. While standardized accelerator programs exist, there are also avenues for early-stage founders to receive support and mentorship, though the ecosystem also favors more mature startups with proven traction.

For many entrepreneurs, the energy and resources available in Malaysia can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Malaysia, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Malaysia is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Malaysia has a growing talent pool for startups, supported by numerous educational institutions including universities and TVET colleges. These institutions are increasingly incorporating entrepreneurship into their curriculum and offering incubator/accelerator programs. Industry-specific skills in demand include those in technology, such as data analytics, mobile development, AI, cloud computing, and cybersecurity, alongside business skills like sales and business development. While there's a skilled workforce, a shortage exists for senior and specialized tech roles. Local talent supports entrepreneurial growth through a diverse and educated workforce with high English proficiency, facilitating engagement with diverse markets. Government initiatives and collaborations between academia and industry aim to bridge skill gaps and ensure graduates are industry-ready, contributing to a supportive ecosystem for startups.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Malaysia can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Malaysia boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Malaysia offers a robust ecosystem for startups, featuring extensive infrastructure like co-working spaces and digital hubs. Support systems include mentorship, accelerator programs, and diverse funding options from seed grants to venture capital. Government initiatives like the MYStartup platform act as a single window for resources, easing business registration and providing access to funding and talent. Programs such as the KL20 GPU Scheme offer advanced tech resources, while initiatives like the Innovation Pass attract skilled foreign talent. These resources help startups access capital, gain expertise, navigate regulations, and connect with markets, fostering innovation and growth.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Malaysia. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Malaysia Be Considered the Best Place to Launch a Startup?

There’s no doubt that Malaysia provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Malaysia face several hurdles. Competition is significant, with a crowded market requiring innovation to stand out. While Malaysia offers a lower cost of living compared to some neighboring countries like Singapore, managing cash flow and operational costs remains a challenge for startups, especially small businesses vulnerable to inflation. Regulatory compliance and legal issues can be complex, involving business registration, taxation, labor laws, and obtaining necessary licenses and permits. Navigating these regulations and securing sufficient funding are crucial for survival and growth.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Malaysia or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Malaysia offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash