WHY IS MALAYSIA ONE OF THE BEST COUNTRIES FOR BLOCKCHAIN TECHNOLOGY STARTUPS?
Malaysia is a growing Asian tiger and the country is the central hub for IT, Fintech, and all kinds of startups in Southeast Asia. Among hundreds of new and established businesses, LuxTag® also found its place under the sun. The Malaysian startup scene is vast and diverse as you can find famous names like Grab, AirAsia, Umobile, and many more. The rapid growth is not a surprise as investments doubled since 2006 and reached $1.45 billion in 2016.
The growing startup scene opened its doors for blockchain companies. Blockchain technology ecosystem in Malaysia is so broad and accessible that it became one of the main spots in the whole world for blockchain-based projects. You might wonder what caused this development. First of all, the Malaysian government is positive about the progress of blockchain and its contribution to the country’s economy and growth. Second of all, Malaysia has an ideal infrastructure to develop projects and distribute them around the whole region.
Not to mention, after China put strict regulations on blockchain-based systems and cryptocurrencies, many talented entrepreneurs moved to more open countries such as Malaysia. So, if you are thinking about expanding your business to this astonishing tropical country, we have some good news for you…
Malaysia – The Hub For Blockchain Projects
We can all agree that Malaysia is working hard to provide excellent conditions for blockchain infrastructure. However, only laws can’t ensure that the business landscape in the country will thrive. So what else has been done to establish more blockchain companies? Malaysia is proud of its flourishing economy and technological implementation. The government launched MiGHT (Malaysian Industry-Government Group for High Technology) to expedite technological enhancement. The goal of this group is to spread technological development within the country and increase the talent pool. So far the project is doing good and expanding further.
With the help of the Malaysian government, organizations and private companies are opening new co-working spaces. One of the famous examples is Blockchain Centre in Kuala Lumpur. Founders joined forces with the government to flourish growing interest in blockchain technology and increase the number of talented employees. The Centre also serves as headquarters for NEM’s Blockchain Innovation Lab which opened doors for many NEM projects to move to Malaysia.
Besides a positive attitude toward blockchain and new initiatives, there is a number of other advantages why Malaysia is ideal for blockchain startups:
- A large market with high potential. Malaysia is one of the most educated countries in the Asian region, and it has a population of 32 million people with diverse backgrounds. Not to mention, the English level is high, and most of the people have an advanced level which makes it more appealing to the global market.
- Governmental restrictions are liberal which allows you to own 99% of the business activities. Also, the market is not overcrowded and is expected to grow further.
- The World Bank ranked Malaysia as the 23rd country in the world where it is the easiest to run and establish a business.
Some Challenges of Doing a Business in Malaysia
Despite accommodating conditions for blockchain startups in Malaysia, there are some limitations to take into account. The Malaysian government works hard to give priority to their citizens. Therefore, if you are a foreigner, you will have to ensure that your team has enough local employees and that at least one of the directors is also Malaysian. Moreover, the country is known to be more conservative, and many daily business operations are different here than in any other country. Also, you will have to learn how to work in a diverse environment and ensure that all your employees are satisfied regardless of their cultural or religious background.
And yet, to answer the question: is Malaysia one of the best countries for blockchain technology startups? Without a doubt, we can say yes. The country is developed and growing in the blink of an eye. Infrastructure and legal regulations are adapted to fit business needs and development. Nonetheless, Malaysia is known to have highly talented and motivated people. So if you are thinking about opening your new blockchain company or a project, then Malaysia should be your number one destination. As for LuxTag, Malaysia became home, and we are happy to work towards improving our customers’ and the country’s life.
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