The KL20 Summit 2024 was launched by Prime Minister Datuk Seri Anwar Ibrahim in Kuala Lumpur, where he unveiled the KL20 Action Paper aimed at attracting global talent and investors through innovative initiatives and incentives to accelerate Malaysia’s transition to a high-income economy. The “Golden Pass” program is one of the “Unicorn Golden Pass” and the “VC Golden Pass” to attract unicorn startups and renowned venture capital firms to invest and develop in Malaysia.
The Unicorn Golden Pass is designed specifically for founders or entrepreneurs of global unicorn startups. This pass will provide exempted fees on employment passes for senior management, subsidies on rent, preferential corporate tax rates, and other special benefits to reduce startup costs and enhance competitiveness. Additionally, the Unicorn Golden Pass includes relocation services and concierge services to support entrepreneurs comprehensively.
The VC Golden Pass targets globally renowned venture capital companies and investors. It offers Limited Partners (LP) financing opportunities, office space subsidies, and visa fee exemptions for senior leaders, aiming to attract venture capital firms to establish a presence in Malaysia and promote investment and innovation.
In addition to the Golden Pass programs, the Malaysian government launched the “Innovation Pass” scheme to provide multi-tiered employment visa schemes for attracting high-skilled talent. This scheme caters to different categories of talent including founders/entrepreneurs, senior management, highly skilled talent, and general talent, offering varying work rights and durations to meet diverse needs of these talent groups.
1. Founders / Entrepreneurs:
-Targeted at first-time or experienced founders establishing businesses.
-Visa validity period of 5 years, granting work rights to both the holder and their spouse.
-Visa is independent of employment, providing high flexibility.
-A maximum of 5 visas can be granted per founding team, supporting team development and business expansion.
2. Senior Management:
-Targeted at C-suite or Head of Department candidates in the technology or venture capital sectors.
-Visa validity period of 5 years, granting work rights to both the holder and their spouse.
-Visa is independent of employment, offering a stable work environment and living conditions for management personnel.
3.Highly Skilled Talent:
-Targeted at experienced individuals possessing scarce and highly in-demand skills.
-Visa validity period of 5 years, granting work rights to the holder.
-Provides a grace period of 180 days after job loss, offering security and career support for talented individuals.
4.General Talent:
-Targeted at technology or venture capital talent required for daily operations.
-Visa validity period of 2 years, granting work rights to the holder.
-Provides a grace period of 90 days after job loss, facilitating flexible career development opportunities for general talent.
Furthermore, Malaysia introduced a two-week Spouse Program to help settle and establish meaningful careers for talent’s spouses in Malaysia. This program offers a range of services including classes on Malaysian lifestyle, culture, and workplace norms, networking sessions, 1-on-1 career consultations with experts, as well as social gatherings and life services like childcare and language courses to facilitate better integration into Malaysian life and society.
Under the ASEAN Investment initiative, key institutions like Khazanah Nasional, Kumpulan Wang Persaraan (KWAP), and Blue Chip Venture Capital (BCVC) have invested RM3 billion in Southeast Asia and Malaysia’s ecosystems. Khazanah Nasional is also launching a “National Fund-of-Fund” with an initial allocation of RM1 billion to invest in innovative high-growth Malaysian enterprises. These efforts aim to attract venture capital firms to establish offices and new funds in Kuala Lumpur, with 12 international companies managing assets worth billions already involved, seeking to discover and nurture excellent Malaysian startups for global success.
The Kuala Lumpur City Hall (DBKL) and the Hangzhou Municipal Government signed a Letter of Intent for Startup City Connect, aiming to strengthen connections and cooperation between the startup cities of Kuala Lumpur and Hangzhou, the People’s Republic of China. Focused on tech innovation, this collaboration aims to facilitate capital, talent, and market exchanges, providing broader development opportunities for entrepreneurs and investors from both cities.
Additionally, the Malaysian government’s policies include promoting the development of the semiconductor and information technology industries. With support from the Selangor State Government and Selangor Information Technology & Digital Economy Corporation (SIDEC), the government plans to establish the largest integrated circuit design park in Southeast Asia in Puchong, Selangor, fostering technological innovation and investment to benefit Malaysia and the wider Southeast Asia region.
Malaysia’s strengths stem from its strategic geographic location linking key digital markets in Southeast Asia, East Asia, India, and the Middle East, its diverse population, robust digital infrastructure, and cost-effectiveness. These elements position Malaysia as an ideal hub for global business and investment, providing ample room for development and fostering collaboration opportunities for both talent and investors.
In conclusion, Malaysia’s government policies and plans aim to attract global talent and investors, drive economic diversification and innovation, and accelerate Malaysia’s emergence as a business center and innovation hub in Southeast Asia. Additionally, Malaysia has established a Single Window https://www.mystartup.gov.my as a comprehensive service center for information and applications related to various programs, offering direct assistance with business establishment, operations, and growth initiatives.