Kuala Lumpur has made a landmark entry into the Top 20 Emerging Startup Ecosystems, securing 18th position in the Global Startup Ecosystem Report (GSER) 2025 by Startup Genome. This achievement marks the first time a Malaysian city has entered the top ranks of the prestigious international index, which evaluates over 300 cities across more than 100 countries.
The Ministry of Science, Technology and Innovation (MOSTI) attributes this milestone to Malaysia’s long-term commitment to a structured and strategic innovation agenda. The ministry stated that targeted programmes, capital mobilisation, and policy coherence have begun to show measurable results, positioning Kuala Lumpur as an increasingly competitive destination for startups and investors.
The GSER 2025 highlighted Kuala Lumpur’s performance in key metrics including ecosystem performance, access to talent, funding availability and, most notably, market reach. A standout indicator was the city’s dramatic increase in Market Reach score, which surged from two to 10 — a reflection of the growing capability of Malaysian startups to scale beyond national borders and compete on the global stage.
According to MOSTI, early-stage funding in Kuala Lumpur totalled RM1.5 billion over the past two and a half years, reflecting a 44% increase from the previous assessment cycle. Total venture capital funding also rose by 22%, reaching US$3.3 billion, underscoring heightened investor confidence and the accelerating pace of ecosystem maturity.
Minister of Science, Technology and Innovation Chang Lih Kang noted that this advancement reflects the cumulative impact of deliberate policy design and institutional development efforts under national frameworks such as the Malaysia Startup Ecosystem Roadmap (SUPER), launched in 2021, and the recently introduced KL20 Action Plan in April 2024.
He further emphasised that the shift from Kuala Lumpur’s previous GSER banding of 21–30 (recorded between 2022 and 2024) into the current Top 20 reflects the success of a cohesive national vision and effective stakeholder alignment across both public and private sectors.
“Kuala Lumpur’s entry into the Top 20 Emerging Ecosystems marks a significant leap forward. This progress demonstrates how strategic alignment — supported by Super, KL20, and cross-sector collaboration — can catalyse capital formation, talent growth and market readiness,” said Chang.
Under MOSTI’s leadership, Cradle Fund continues to play a central role in spearheading the development of the national startup landscape. The MYStartup Single Window initiative has already supported over 4,400 startups, serving as a consolidated platform for resources, funding and ecosystem services.
Looking ahead, Malaysia is setting its sights on a new benchmark: to be ranked among the Top 20 Global Startup Ecosystems by 2030, further reinforcing its ambition to become a preferred hub for global startups, talent and investment.
-Bernama
