Unravelling The Trends Of Emerging Technologies

By Business Intelligence & Insights Team, Cradle

Data are taken from MYStartup.gov.my unless specified otherwise.

In this week’s edition, as we bring our funding series to a close, our focus shifts towards the emerging technologies that are reshaping funding dynamics. Expanding upon our examination of the top three funded industries, our objective is to provide readers with a comprehensive understanding of the evolving investor landscape and key trends projected for 2024.

Through an analysis of technological advancements, industry performance, and investment patterns, we aim to furnish a nuanced overview of the prevailing ecosystem, thereby offering valuable insights into the entrepreneurial landscape of the nation.

Breakdown of Top 10 Funded Technologies (by Funding Amount)
2023

Emergence of Green Technology

Trends of Funding in Green Technology

2021-2023

The term “green technology” refers to creating and applying environmentally conscious methods and solutions that minimise adverse effects on the environment while fostering societal advancement and economic expansion. AgTech and sustainability are included in this.

In Malaysia, the performance of the Sustainability & Environment (S&E) industry within the domestic ecosystem has been a topic of discussion previously. Notably, green technology has emerged as a driving force, exhibiting tremendous growth from 2021 to 2023. Comparing statistics between 2023 and 2021, sustainability and agtech showcase the most significant growth, despite 2022’s abnormal surge in funding. The growth trends from 2022 to 2021 were particularly remarkable.

This trend isn’t confined to Malaysia alone. Globally, the green technology and sustainability market size is projected to grow from $16.50 billion in 2023 to $61.92 billion by 2030, reflecting a Compound Annual Growth Rate (CAGR) of 20.8%. In Southeast Asia, the clean energy market is anticipated to reach $50.2 billion by 2025, driven by rapid urbanisation and economic growth.

Furthermore, Agtech is experiencing a steady rise in Malaysia, supported by prominent government initiatives:

The National Agrofood Policy 2021-2030 outlines the government’s vision for a modern, sustainable, and competitive agrofood sector. It includes measures to support Agritech innovation, such as:

  • Funding: Allocating RM1.7 billion (US$400 million) for research and development (R&D) in Agritech.
  • Tax incentives: Providing tax breaks and exemptions for companies investing in Agritech.

In the revised budget of 2023:

  • RM50 million matching grant: Encourages automation of the plantation sector through robotics and AI.
  • RM428 million for R&D: Supports research in key agricultural areas.
  • RM2 billion for green-tech startups: Attracts investment in sustainable Agritech solutions.

These initiatives underscore Malaysia’s commitment to fostering innovation and sustainability in its agricultural sector, positioning it to thrive in the evolving landscape of green technology and Agritech.

EdTech: The New E-Commerce? 

Trends of Funding in Edtech

2021-2023

Between 2021 and 2023, Edtech saw significant growth alongside green tech. This growth was mainly fueled by the pandemic, which forced schools to close and increased the need for online learning tools. As awareness grew about Edtech’s benefits like personalised learning and flexibility, investment in the sector also increased. Governments and institutions prioritised education continuity during disruptions, further boosting Edtech adoption and funding. Moreover, the widespread use of mobile devices, with Malaysia reaching a smartphone penetration rate of 89.1% and an internet penetration rate of 97.6% in 2023, contributed to the demand for mobile-based Edtech solutions. This accessibility made learning on-the-go possible, driving further interest in such solutions.

On the governmental front, direct funding initiatives significantly contributed to the surge in Edtech. For instance:

  1. The Dana Penjana Nasional (National Recovery Fund) allocated RM500 million (US$116 million) for tech startups, including edtech solutions, through venture capital firms.
  2. The Education Ministry’s MyEdTech Fund supported the development and commercialization of innovative edtech solutions catering to specific needs such as special education and STEM learning.

These government-led initiatives underscore a concerted effort to foster innovation and accessibility in education through Edtech, thereby propelling Malaysia’s education sector into a digital age of learning and development.

In summary, the rise of green technology and Edtech in Malaysia reflects a response to current challenges. These sectors are experiencing significant growth due to increased funding and adoption. As Malaysia continues to invest in sustainable solutions and digital education, it positions itself as a leader in innovation and resilience, shaping a brighter future for its citizens.

Related articles

University Startup Accelerator, LaunchX Commences 2024 Cohort

LaunchX, the first university startup accelerator program in Malaysia,...

Taylor’s University Collaborates With Penjana Kapital To Nurture Aspiring Venture Capitalists

BizPod, Taylor’s University startup entrepreneur incubator in collaboration with...

Microsoft Appoints Laurence Si To Lead Operations In Malaysia

Microsoft has appointed Laurence Si as the Managing Director...

7 Local Startups Selected To Join Cyberview Living Lab® Accelerator Programme’s 18th Cohort

Cyberview’s Living Lab Accelerator (CLLA) Programme has recently selected...

LEAVE A REPLY

Please enter your comment!
Please enter your name here