Extracts from the 10th Malaysia Plan (2011 – 2015) speech by Prime Minister Najib this morning, related to IT industry and stimulating the emergence of startups in Malaysia:
- Encouraging entrepreneurship: “…bankruptcy laws will be simplified to support a risk-taking culture, eliminate the stigma of failure and allow high calibre and credible entrepreneurs who fail to become active again (p 20);
- National Key Economic Areas, NKEAs: Information and communication technology, ICT as one of the 12 NKEAs (p. 15).
- Focus on soft infrastructure development: The 10th Malaysia Plan’s “allocation for non-physical infrastructure will be increased to 40%, compared with 21.8% in the 9MP. Focus will be given to skills development programmes, R&D activities and venture capital funding geared towards promoting a higher level of innovation in the country” (page 14);
- Growth funds: Mudharabah Innovation Fund “with an allocation of 500 million ringgit, will be introduced to provide risk capital to government venture capital companies” and Business Growth Fund “to bridge the financing gap between the early stage of commercialisation and venture capital financing for high tech products” (p. 20);
- Technology-driven development of NKEAs: “the application of high technology will be emphasised in the development of NKEAs. Technology platforms such as biotechnology, nanotechnology and high-end engineering will further increase the impact of the NKEAs on economic growth” (p. 16);
- Competition Law: The Law “will be introduced to provide a regulatory framework against market manipulation and cartel practices that may affect market efficiency” (p. 17);
- Working Capital Guarantee Scheme: Additional RM3 billion allocation for the Scheme, which is designed to “ensure that the SMEs have better access to financing facilities” (p 24).
Full speech transcript here.