KL ranks 18th in emerging startup ecosystems, historic first for Malaysia
KUALA LUMPUR: Kuala Lumpur has entered the Top 20 Emerging Startup Ecosystems, a historic first for Malaysia, after ranking 18th in the Global Startup Ecosystem Report (GSER) 2025 by Startup Genome.
The Science, Technology and Innovation ministry (MOSTI), in a statement yesterday, said this milestone reflects the tangible results of Malaysia's coordinated national innovation agenda, with strategic startup ecosystem programmes and capital mobilisation efforts now showing a measurable impact.
It stated that the GSER, considered the world's most comprehensive analysis of startup ecosystems, evaluates over 300 cities across more than 100 countries. It highlights Kuala Lumpur's progress across performance, funding, talent development and, most notably, market reach.
MOSTI said Startup Genome noted that early-stage funding in Kuala Lumpur reached RM1.5 billion (US$368 million) over the past two and a half years, an increase of over 40 per cent from the previous cycle – a clear indicator of rising investor confidence and ecosystem momentum.
The ministry said the country's growing global recognition in innovation is driven by its maturing ecosystem, guided by the long-term Ekonomi MADANI policy. Central to this progress are two key national strategies: the Malaysia Startup Ecosystem Roadmap (SUPER), launched in 2021, and the KL20 Action Plan, introduced in April 2024.
According to Science, Technology and Innovation Minister Chang Lih Kang, the progress reflects years of deliberate policy design and institution-building under SUPER, which laid the foundational infrastructure for growth across capital formation, talent development, and regulatory frameworks.
"Kuala Lumpur's entry into the Top 20 Emerging Ecosystems marks a significant leap forward from its previous placement in the 21-30 band between 2022 and 2024, underscoring the momentum achieved through policy coherence and stakeholder alignment.
"A key contributor to this rise was the marked improvement in the city's Market Reach score – jumping from two to 10, which reflects the growing ability of Malaysian startups to access international markets, scale beyond domestic borders, and compete globally.
"Under MOSTI's leadership and with Cradle Fund as our focal point agency, we are collaborating closely with public and private sector partners to elevate the nation's startup ecosystem, empower founders, and position Malaysia as a destination of choice for global startups, talent, and investors," he said in the statement.
In this year's report, Startup Genome highlighted ecosystem performance, talent depth, capital availability, and market reach as key drivers of Kuala Lumpur's improved standing. This includes a 44 per cent rise in early-stage funding from US$255 million to US$368 million, a 22 per cent increase in total venture capital funding that reached US$3.3 billion, and a surge in the market reach score from two to 10.
With over 4,400 startups supported under the national MYStartup Single Window initiative (www.mystartup.gov.my), Malaysia's innovation ecosystem is rapidly transitioning from promise to performance. The government is now setting its sights on the next milestone: positioning Malaysia among the Top 20 Global Startup Ecosystems by 2030.– BERNAMA
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