Report: Malaysian tech start-ups leave for Singapore, Australia to grow business

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Malaysian tech start-ups such as Grab have chosen Singapore to gain access to a larger venture capital funding and a lower corporate tax.

KUALA LUMPUR, Oct 15 — Poor responses and strict rules are among reasons which have pushed local tech start-ups to countries like Singapore to gain capital funding, and to Australia for public listing, The Malaysian Reserve reported today.

Grab started out in Malaysia where it was initially called MyTeksi, and is now headquartered across the Johor Strait in Singapore. Pong claimed that the companies listed on Bursa Malaysia’s Leading Entrepreneur Accelerator Platform which, despite presenting interesting opportunities, have not received recognition from investors.

The LEAP market was introduced by Bursa Malaysia in 2017 was aimed at providing alternative fundraising platform for small and medium enterprises that would otherwise be ineligible for a listing on the main or secondary markets. Like Pong, Lee claimed the Malaysian stock market is not at all receptive to tech-based start-ups as investors are not very used to the idea even as he acknowledged the ASX policy allowing the listing of companies that have yet to prove themselves profitable plays a role in attracting such firms there.

 

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