With the growth of the Southeast Asian startup ecosystem, there is a lot to be excited about. However, an overlooked opportunity is the country Malaysia. Though a large country by landmass, Malaysia only has 32 million people. This means it is not very densely populated and geographically quite dispersed as a country.

However, according to a report by Startup Genome, Malaysian capital Kuala Lumpur was ranked the 11th emerging startup ecosystem in the world. This means that it has the potential to be a global leader and top destination for startups.

Speaking to Terng Shing from SYNC in Malaysia, who runs an award-winning PR and content startup, he said that misconceptions have held Malaysia back and possibly stunted the growth of their startup industry. In fact, they seem to always be in the shadow of their smaller, but more successful neighbour – Singapore. With the growing population and a strong startup ecosystem, there is still potential for the market to grow.

Why Malaysia?

The country is actually recognised as one of the pioneering trailblazers for Southeast Asia’s digital economy. It’s one of the first countries in the region to establish a special economic zone for high-tech businesses – central-southern Selangor in 1997. Government bodies like MDEC are also providing much-needed support to the startup ecosystem through funding and support schemes.

Malaysia is also a connected market. According to government stats, nearly one-third of the population lives in urban areas and have mobile devices and access to the internet. This means there is a local market of millions of web-savvy consumers, which is a great opportunity for digital businesses.

Malaysia has good talent

One of the things that make Malaysia is an attractive destination and home base for startups is the availability of skilled and semi-skilled labour. The country has continued to invest in its education system that graduates plenty of skilled workers. Malaysia is a good place to find highly qualified lawyers, marketing teams, and other professional workers.

This provides the backbone of most businesses which are the finance, human resources, and operational staff critical to keeping a business going. Coupled with a low and unskilled workforce, which you might need at some point during the startup process, you can be sure of finding the talent you need locally, rather than having to look outside the country for skilled labour, which can be costly.

Should you consider Malaysia?

The short answer is yes, you should. The longer answer will point to the fact that Malaysia’s workers are more than skilled and they have a global outlook. While this may seem like a small thing, it is important for a company with global aspirations to be able to have a workforce that thinks “big picture”. In fact, the country often ranks as a great place for digital nomads, meaning that you might even be able to find the right talent from anywhere in the world right at your doorstep.

Therefore, Malaysia is definitely a good choice for most startups and should at least be considered when deciding on where to set up shop.