In a landmark achievement for Malaysia, Kuala Lumpur has broken into the Top 20 Emerging Startup Ecosystems globally, ranking 18th in the Global Startup Ecosystem Report (GSER) 2025 released by Startup Genome. This marks the first time a Malaysian city has reached this tier, placing it among elite innovation hubs worldwide.
The GSER, widely regarded as the most comprehensive analysis of startup ecosystems, evaluated over 300 cities across more than 100 countries. Kuala Lumpur’s ascent is driven by improvements across several key indicators, including performance, funding, talent development, and most notably, market reach.
According to Startup Genome, early-stage funding in Kuala Lumpur surged to RM1.5 billion (USD 368 million) over the past two and a half years — a 44% increase from the previous reporting cycle — reflecting growing investor confidence and robust ecosystem momentum.
Malaysia’s rise in the global startup arena is no accident. The city’s improved standing is credited to a maturing innovation ecosystem backed by the Ekonomi MADANI national policy framework and two cornerstone initiatives: the Malaysia Startup Ecosystem Roadmap (SUPER), launched in 2021, and the KL20 Action Plan, unveiled in April 2024.
“This milestone is more than global recognition — it reflects the tangible progress we are making under the Ekonomi MADANI framework, where innovation, entrepreneurship, and technology drive our ambition for a high-value, inclusive economy,” said YB Chang Lih Kang, Minister of Science, Technology and Innovation (MOSTI).
He added that SUPER laid the groundwork by strengthening capital formation, talent development, and regulatory frameworks, while KL20 has accelerated these efforts by enhancing access to funding and attracting global talent.
Startup Genome highlighted several key achievements that contributed to Kuala Lumpur’s improved ranking:
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Early-stage funding rose from USD 255 million to USD 368 million (+44%)
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Series A median funding increased by 43%, now surpassing USD 4 million
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Total venture capital funding hit USD 3.3 billion, a 22% increase
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Market Reach score jumped from 2 to 10, signalling global expansion of local startups
These metrics point to a startup ecosystem that is not only expanding, but also becoming more globally competitive.
According to Norman Matthieu Vanhaecke, Group CEO of Cradle Fund — MOSTI’s lead agency for early-stage startup development — the sharp uptick in funding signals a deepening capital pool, buoyed by both public and private efforts.
“These include Cradle’s own grant programmes, equity crowdfunding platforms, and institutional funds like Jelawang Capital (Khazanah Nasional) and Dana Perintis (KWAP),” he said. “This shows Malaysian startups are not just building for local markets—they’re being primed for global scale.”
Vanhaecke also credited ecosystem-wide talent development efforts, including Cradle’s MYStartup initiative and cross-sector collaborations, for nurturing a new generation of agile, globally minded founders.
Over 4,400 startups have been supported under the national MYStartup Single Window initiative (www.mystartup.gov.my), reflecting the scale and reach of Malaysia’s startup ambitions.
Kuala Lumpur’s entry into the Top 20 represents a significant leap from its previous 21–30 ranking band (2022–2024), driven by strong market reach and ecosystem cohesion.
With SUPER and KL20 now firmly in execution mode, Malaysia has set its sights on an even bolder goal: entering the Top 20 Global Startup Ecosystems by 2030.
For full rankings and insights, the GSER 2025 report is available at: startupgenome.com/report/gser2025