📰 HEADLINE NEWS

Secai Marche Brings Embedded Finance to Malaysia's Food Supply Chain

Secai Marche, a Tokyo-headquartered farm-to-table fresh food distribution platform operating across Southeast Asia, raised fresh capital this week in a round co-led by NTT Docomo Ventures and Synexia Ventures. The funding comes alongside a strategic partnership with NTT Data to digitalize invoicing and payments specifically for Malaysia's hotel, restaurant, and catering sector.

The move transforms Secai Marche from a procurement and logistics platform into an embedded finance play. The company plans to integrate NTT Data's payment and invoicing solutions into its marketplace and is actively exploring buy-now-pay-later services, supply chain finance, and microloans for farmers and small producers, using transaction and invoice data to support credit underwriting. Separately, UK-based health platform Welzo also made an equity investment in Secai Marche and signed a memorandum of understanding with the company for agricultural expansion across Southeast Asia.

Malaysia's hotel, restaurant, and catering sector is one of the most fragmented and cash-flow constrained in the economy. A platform that simultaneously handles procurement, logistics, invoicing, and embedded financing for the same businesses is addressing a genuinely underserved stack. This is what vertical SaaS with embedded finance looks like in the food supply chain.

💰 REGIONAL FUNDING LANDSCAPE

Stride Raises $15M Series B to Scale Vietnam's Largest Rooftop Solar Platform

Vietnam-based Stride closed a $15 million Series B round co-led by Lightrock and TRIREC via the Accelerate7 platform, with continued participation from Clime Capital and UOB Venture Management. Touchstone Partners made a partial exit following the close.

Since its Series A in 2025, Stride has nearly tripled its project portfolio and expanded nationwide through a network of over 75 verified engineering, procurement, and construction partners, becoming Vietnam's largest residential and MSME solar platform. Its deferred payment model allows customers to install rooftop solar and battery systems with a modest upfront deposit and structured monthly payments, removing the high capital barrier that has historically slowed solar adoption among households and small businesses.

The company plans to use the capital to scale across Vietnam, enter new markets, and help 200,000 more people access clean energy by 2030. Vietnam has grown its installed solar capacity from near zero in 2018 to over 19 gigawatts, with its Power Development Plan VIII targeting rooftop solar on 50% of residential and office buildings by 2030.

Primer Raises $100M Series C for Unified Payments Infrastructure

Primer, a unified payments infrastructure provider, closed a $100 million Series C led by Sofina, with participation from Peak XV Partners and existing investors including Balderton, Accel, Iconiq, Tencent, and Speedinvest. The company provides merchants with a single layer of visibility and control across payment processors, acquirers, fraud tools, and payment methods.

Primer will use the capital to accelerate its AI capabilities including Primer Companion, its proprietary AI agent for payments teams, and to deepen its US expansion targeting one-third of total revenue from the market by 2028. Primer has now raised $170 million in total.

📊 MARKET MOVEMENTS

Climate Tech Financing in SEA: The Deferred Payment Model is Winning

Stride's raise this week reinforces a pattern that is now well-established across Southeast Asia's climate tech sector. The biggest barrier to solar adoption is not technology. It is financing. Companies that solve the financing problem with deferred payment models, earned wage access, and transaction-data-backed microloans are the ones attracting institutional capital. UOB Venture Management's continued participation in Stride alongside Lightrock, one of the most credible climate-focused growth equity funds globally, is a signal that this model is scaling into a fundable category at the Series B level and beyond.

For Malaysian founders building in climate tech, energy, and green financing, Stride's playbook is worth studying closely.

🇲🇾 MALAYSIA WATCH

Japan Bets on Malaysia's Food Service Economy

Secai Marche's NTT Docomo Ventures-backed round with a Malaysia HoReCa payments focus continues a broader pattern of Japanese capital targeting very specific, underserved verticals in Malaysia. Earlier this year Cool Japan Fund led PolicyStreet's Series C. Now NTT Docomo Ventures is backing a food supply chain platform targeting Malaysian restaurants and hotels with embedded finance.

Japanese investors are not coming to Malaysia for the scale. They are coming for the regulatory stability, the food culture alignment with Japan, and the structured opportunity to embed payments and financial services into verticals that are still largely cash and manual invoice-based. For Malaysian founders building in food tech, agritech, hospitality software, or supply chain finance, Japan is increasingly the right investor conversation to be having.

Five Weeks of Malaysia Stories

It is worth pausing to note what the last five weeks of Startup Pulse have documented for the Malaysian ecosystem. In April: Hata's Bybit-led crypto raise and PolicyStreet's dual sovereign wealth fund Series C. In May: Microsoft Elevate's national AI skilling launch, Ryt Bank crossing 1.2 million users on Malaysia's sovereign AI model, FusionAP raising from Vertex Ventures to build Malaysia's first advanced chip packaging company, and now Secai Marche doubling down on Malaysia's food service sector with NTT Docomo capital.

These are not isolated press releases. They are a pattern. Malaysia's ecosystem is compounding.

🔍 ECOSYSTEM INSIGHTS

Embedded Finance in Traditional Sectors: The Biggest Opportunity Nobody Is Talking About

Secai Marche's Malaysia play is a case study in a thesis that remains underexplored by most SEA founders: traditional sector operators that control the procurement relationship and the transaction data are sitting on the infrastructure for a financial services business. Hotels, restaurants, construction firms, and logistics providers all have recurring supplier relationships, predictable payment cycles, and chronic working capital gaps. The founder who builds the procurement layer first and then adds financing on top of that transaction data has a structural moat that pure fintech players cannot replicate. That is exactly what Secai Marche is building in Malaysia's food service sector.

⚡ QUICK BITES

Variational raised approximately $50 million in a Series A led by Dragonfly, with support from Bain Capital Crypto and Coinbase Ventures, for its peer-to-peer perpetuals and derivatives trading protocol. The funding coincided with the launch of real-world asset markets covering gold, silver, copper, and WTI crude on its platform.

Clouted raised $7 million in a seed round led by Slow Ventures, with participation from Gold House Ventures, Line-Yahoo's Z VC, AppWorks, Surge by Peak XV, and a16z Speedrun, to build an AI-powered virality engine for consumer and entertainment brands across clipping, user-generated content, influencer seeding, and performance advertising.

🎯 THE BOTTOM LINE

This week's edition closes out May 2026 for Startup Pulse. Looking back at the month as a whole: Malaysia had its best run of sustained ecosystem news in recent memory. Semiconductor deep tech. Sovereign AI at scale. National skilling programmes. Japanese and global institutional capital targeting specific Malaysian verticals. And now embedded finance entering the food supply chain through a Japan-backed platform betting on Malaysia's hospitality sector. The direction of travel is clear. The founders who recognise what is being built around them and position their companies inside these structural tailwinds are the ones who will define the next chapter of Malaysia's startup story.

Startup Pulse is published every Monday. Subscribe | Follow us on LinkedIn, Instagram & Threads

📰 HEADLINE NEWS

FusionAP Raises $2M Pre-Seed to Build Malaysia's First Advanced Semiconductor Packaging Company

On 13 May 2026, FusionAP, a Penang-based semiconductor startup founded by former Intel and TSMC executives, closed a $2 million pre-seed round co-led by Vertex Ventures Southeast Asia and India and Southern Capital Group. The company is building Malaysia's first homegrown Outsourced Semiconductor Assembly and Test platform focused on advanced 2.5D and 3D packaging technologies.

FusionAP is led by Ooi Teng Chow, who was the first employee of Intel's $7 billion advanced packaging plant in Malaysia and grew the operation to hundreds of people, and co-founder Peter Chavart, former General Manager of Intel's Disaggregation Manufacturing Organisation. The company is also eligible for a matching research grant from the Malaysia Science Endowment under the Ministry of Science, Technology and Innovation, and is a founding member of the Malaysia Advanced Packaging Consortium alongside SkyeChip, Inari Amertron, Pentamaster, and NSW Automation.

This is not just a startup raise. It is a direct signal that Malaysia's semiconductor ambition is moving from policy into product. Global demand for advanced packaging has surged alongside AI chip development, while capacity remains concentrated in Taiwan. FusionAP is positioning Malaysia as a geopolitically neutral alternative. Vertex Ventures described the team as bringing rare deep domain expertise to one of the most strategically important layers of the chip stack.

💰 REGIONAL FUNDING LANDSCAPE

Fasset Closes $51M Series B to Scale Stablecoin Banking Across Emerging Markets Including Malaysia

On 14 May 2026, Fasset, a stablecoin-powered banking and investment platform, closed $51 million in Series B funding from Japan's SBI Group, Investcorp, and Turkish asset manager Arz Portföy, alongside strategic family offices. The round is reported as the largest payments Series B of 2026 by Dealroom data.

Fasset holds regulatory licenses across the UAE, Indonesia, Malaysia, the EU, Turkey, and Pakistan. In Malaysia specifically, it operates under the Labuan Financial Services Authority's Islamic digital bank sandbox framework and recently appointed a Managing Director for Consumer Banking to lead retail, SME, and trade finance operations locally. The company processes over $32 billion in annualised transaction volume across 2 million wallets in 125 countries.

The capital will fund Fasset's Own Network, a proprietary stablecoin payment and custody infrastructure connecting banking corridors from Morocco to Malaysia, as well as new markets across Asia, Africa, and the Americas and new lending and trade finance products for SMEs.

For Malaysian fintech founders, this is a signal that stablecoin-powered banking for emerging and Islamic finance markets is attracting top-tier institutional capital at scale. The Morocco to Malaysia corridor framing is deliberate and strategic.

Pluang Raises $10M Series C from MUFG Innovation Partners

Indonesian investment platform Pluang closed approximately $10 million in Series C funding led by MUFG Innovation Partners, with participation from existing investors Square Peg and Accel. The company serves over 13 million registered users across gold, US stocks, crypto, ETFs, options, mutual funds, and Indonesian equities. Pluang generated $30 million in group revenue last year, more than doubling year-on-year, and entered the Philippines through a regulatory sandbox in 2025 with a broader launch targeted for this year.

📊 MARKET MOVEMENTS

Stablecoins Are Now Serious Infrastructure: What Fasset's Round Signals

The global fiat-backed stablecoin supply has exceeded $273 billion. SBI Group, one of Japan's largest financial conglomerates, backed Fasset in a round that is the largest payments Series B of 2026. This is no longer a crypto story. It is a financial infrastructure story, and the corridors that matter are increasingly in Asia, the Middle East, and Africa rather than between established Western economies. For Malaysian founders building in cross-border payments, Islamic finance, and SME banking, the Fasset raise sets a new benchmark for what institutional-grade backing in this space looks like.

🇲🇾 MALAYSIA WATCH

FusionAP and the Semiconductor Packaging Opportunity

Malaysia currently handles roughly 13% of the world's semiconductor packaging and testing. But almost all of it is legacy packaging, the kind of work that assembles older chip designs at lower margins. The high-value work, the 2.5D and 3D packaging that stacks chips together to create AI accelerators, high-performance computing chips, and next-generation devices, is dominated by TSMC's CoWoS platform in Taiwan and a handful of others.

FusionAP is the first Malaysian company to specifically target that high-value advanced packaging layer. With Malaysia's National Semiconductor Strategy targeting 7% global market share by 2035, FusionAP is the kind of company that strategy was designed to produce. The government matching grant from the Malaysia Science Endowment alongside private VC capital is exactly the co-investment model Malaysia has been trying to deploy in deep tech. It is working.

🔍 ECOSYSTEM INSIGHTS

Why Geopolitical Neutrality Is Now a Product Feature

Both FusionAP and Fasset share a positioning strategy that is worth naming directly: geopolitical neutrality as a competitive advantage. FusionAP explicitly markets itself as a neutral OSAT partner for global companies seeking to diversify away from Taiwan-concentrated supply chains. Fasset operates a Shariah-compliant platform spanning markets that span multiple geopolitical blocs, from UAE to Pakistan to Malaysia to Turkey to the EU.

In 2026, the ability to operate credibly across geopolitical divides is not just a nice narrative. It is increasingly a requirement for global institutional partners. Malaysia, with its position between East and West, its dual US and Chinese investment base, and its regulatory frameworks across both conventional and Islamic finance, is structurally positioned to produce more companies that carry this competitive advantage. Founders who understand this positioning and build for it are playing the right long game.

⚡ QUICK BITES

Pluang's $10M Series C and continued SEA expansion into the Philippines signals that the multi-asset digital investment platform model is maturing across the region. With $30 million in group revenue and 13 million users, Pluang is proof that retail wealth management infrastructure in Southeast Asia is a real and scalable business.

The Tencent Music acquisition of Ximalaya completed on 18 May for up to $1.26 billion in a combination of cash and shares, consolidating China's online audio market. For SEA founders in audio, podcast, and content platforms, the Chinese content consolidation trend is worth tracking as a signal of where the regional media stack is heading.

🎯 THE BOTTOM LINE

Two weeks in a row, the Malaysia story has been one of the most important in the region. Last week it was Ryt Bank proving sovereign AI works at scale in fintech. This week it is FusionAP proving that Malaysia can produce deep tech semiconductor companies built by world-class veterans that attract top-tier regional VC. These are not coincidences. They are the result of years of policy, talent development, and ecosystem building starting to compound. The founders building in Malaysia right now are doing so with more infrastructure, more institutional support, and more global relevance than at any point in the country's startup history.

Startup Pulse is published every Monday. Subscribe | Follow us on LinkedIn, Instagram & Threads

📰 HEADLINE NEWS

Ryt Bank Crosses 1.2 Million Users and Partners with Tencent Cloud for Zero-UI Banking

On 11 May 2026, Tencent Cloud announced a strategic partnership with Ryt Bank, Malaysia's first AI-powered digital bank, to power its conversational banking infrastructure. The partnership deploys Tencent Cloud Chat, built on the same messaging backbone that serves over one billion monthly active users globally, as the real-time communication layer behind Ryt Bank's platform.

The core innovation is a Zero User Interface model. Instead of navigating multiple menus, users simply say or type a single instruction such as "Send RM100 to Amelia" and the transaction executes instantly. A process that previously required eight steps now takes one sentence. On Ryt Bank's launch day, the platform managed a surge of 50,000 concurrent active users with zero downtime.

In just over seven months since launch, Ryt Bank has surpassed 1.2 million users, with nearly half of its customer base actively using Ryt AI, its conversational banking engine developed in partnership with YTL AI Labs and built on ILMU, Malaysia's sovereign AI model.

This is not a fintech story. It is a proof of concept for what AI-native banking looks like at scale, built in Malaysia, on Malaysian AI infrastructure, and now backed by one of the world's largest cloud providers. That combination is globally significant.

💰 REGIONAL FUNDING LANDSCAPE

SoBanHang Raises $3.8M Pre-Series A to Expand Merchant Management Across SEA

Vietnamese merchant management platform SoBanHang raised at least $3.8 million in a pre-Series A round to expand its platform, which helps small merchants digitise their operations including sales tracking, inventory, and customer management. The company has been growing across Vietnam and is positioning for broader Southeast Asian expansion.

The SoBanHang raise is a reminder that the B2B software opportunity for small merchants across SEA remains largely untapped. With millions of micro and small businesses still operating manually, the infrastructure layer for offline commerce digitisation continues to attract patient capital.

📊 MARKET MOVEMENTS

The Asian Banker Summit 2026: Malaysia Front and Centre on AI Banking

On 13 and 14 May 2026, the Asian Banker Summit brought together banking executives and policymakers across Asia with Malaysia's Digital Minister Gobind Singh Deo closing the event with a keynote on building an AI-native economy. The summit's agenda centred on agentic AI in banking, core system modernisation, and how financial institutions move from experimental AI pilots to production deployment.

The presence of Malaysia's minister at the closing keynote of one of Asia's most prominent banking conferences is a signal worth noting. Malaysia is positioning itself not just as an AI adopter but as a thought leader in the regional AI-native finance conversation.

🇲🇾 MALAYSIA WATCH

KWAP Appoints New CEO with Digital Banking Transformation Background

On 11 May 2026, Malaysia's public sector pension fund KWAP, which manages RM185.6 billion in assets, appointed Datuk Jay Khairil Jeremy Abdullah as its new Chief Executive Officer effective 20 May 2026. He succeeds Datuk Nik Amlizan Mohamed who served since 2020.

Jay Khairil joins from Bank Simpanan Nasional, where he led the bank's digital banking transformation, financial performance improvements, and financial inclusion mandate. He brings nearly 30 years of experience across CIMB Group, Bank Negara Malaysia, and Bank of Tokyo-Mitsubishi UFJ Malaysia.

For the startup ecosystem this matters beyond a personnel announcement. KWAP as a fund-of-funds backer and institutional LP is a critical source of capital for Malaysian and regional VC funds. A new CEO with deep digital banking and transformation credentials signals that KWAP's investment philosophy may increasingly tilt toward tech-enabled financial infrastructure and digital economy bets.

Ryt Bank and ILMU: Malaysia's Sovereign AI Model Goes Live at Scale

The Ryt Bank and Tencent Cloud story has a detail that deserves its own moment. Ryt AI, the conversational intelligence engine at the heart of the bank, is built on ILMU, Malaysia's sovereign large language model developed by YTL AI Labs. With 1.2 million users and nearly half actively engaging with ILMU-powered features, Malaysia now has one of the region's most tangible deployments of a sovereign AI model in a regulated financial services context. This is exactly what AI Nation 2030 is supposed to look like in practice.

🔍 ECOSYSTEM INSIGHTS

Zero-UI Banking: What Ryt Bank's Growth Means for Malaysian Fintech Founders

Ryt Bank's 1.2 million user milestone in under seven months is the fastest adoption curve of any Malaysian digital bank to date. For context, established digital banks in the region took 12 to 18 months to hit comparable user numbers. The Zero-UI model is creating a category of its own, and it raises a question every fintech founder in Malaysia should be thinking about: if the interface itself disappears and banking becomes conversational, what happens to the apps and products built on top of traditional interfaces?

This is not a distant disruption. It is happening now, in Malaysia, at scale.

⚡ QUICK BITES

CIMB Bank and CIMB Islamic launched a new financing programme this week to help MSMEs manage rising operating costs, providing working capital access through a structured facility targeting small businesses across Malaysia.

RHB launched a new SME relief facility providing working capital financing for Malaysian businesses navigating higher operating costs, adding to the growing number of bank-led MSME support programmes in 2026.

🎯 THE BOTTOM LINE

This week Malaysia made global news in digital banking without anyone outside the ecosystem fully registering it. Ryt Bank hitting 1.2 million users on a sovereign AI model, backed by Tencent Cloud's global infrastructure, is the kind of proof point that puts Malaysia on the map in conversations that usually only include Singapore, Indonesia, and the Philippines. Add KWAP getting a new CEO with digital transformation credentials, and the institutional infrastructure around the ecosystem is quietly being upgraded too. The pieces are moving. Founders who are paying attention will know where to position next.

Startup Pulse is published every Monday. Subscribe | Follow us on LinkedIn, Instagram & Threads

📰 HEADLINE NEWS

Ryt Bank Crosses 1.2 Million Users and Partners with Tencent Cloud for Zero-UI Banking

On 11 May 2026, Tencent Cloud announced a strategic partnership with Ryt Bank, Malaysia's first AI-powered digital bank, to power its conversational banking infrastructure. The partnership deploys Tencent Cloud Chat, built on the same messaging backbone that serves over one billion monthly active users globally, as the real-time communication layer behind Ryt Bank's platform.

The core innovation is a Zero User Interface model. Instead of navigating multiple menus, users simply say or type a single instruction such as "Send RM100 to Amelia" and the transaction executes instantly. A process that previously required eight steps now takes one sentence. On Ryt Bank's launch day, the platform managed a surge of 50,000 concurrent active users with zero downtime.

In just over seven months since launch, Ryt Bank has surpassed 1.2 million users, with nearly half of its customer base actively using Ryt AI, its conversational banking engine developed in partnership with YTL AI Labs and built on ILMU, Malaysia's sovereign AI model.

This is not a fintech story. It is a proof of concept for what AI-native banking looks like at scale, built in Malaysia, on Malaysian AI infrastructure, and now backed by one of the world's largest cloud providers. That combination is globally significant.

💰 REGIONAL FUNDING LANDSCAPE

SoBanHang Raises $3.8M Pre-Series A to Expand Merchant Management Across SEA

Vietnamese merchant management platform SoBanHang raised at least $3.8 million in a pre-Series A round to expand its platform, which helps small merchants digitise their operations including sales tracking, inventory, and customer management. The company has been growing across Vietnam and is positioning for broader Southeast Asian expansion.

The SoBanHang raise is a reminder that the B2B software opportunity for small merchants across SEA remains largely untapped. With millions of micro and small businesses still operating manually, the infrastructure layer for offline commerce digitisation continues to attract patient capital.

📊 MARKET MOVEMENTS

The Asian Banker Summit 2026: Malaysia Front and Centre on AI Banking

On 13 and 14 May 2026, the Asian Banker Summit brought together banking executives and policymakers across Asia with Malaysia's Digital Minister Gobind Singh Deo closing the event with a keynote on building an AI-native economy. The summit's agenda centred on agentic AI in banking, core system modernisation, and how financial institutions move from experimental AI pilots to production deployment.

The presence of Malaysia's minister at the closing keynote of one of Asia's most prominent banking conferences is a signal worth noting. Malaysia is positioning itself not just as an AI adopter but as a thought leader in the regional AI-native finance conversation.

🇲🇾 MALAYSIA WATCH

KWAP Appoints New CEO with Digital Banking Transformation Background

On 11 May 2026, Malaysia's public sector pension fund KWAP, which manages RM185.6 billion in assets, appointed Datuk Jay Khairil Jeremy Abdullah as its new Chief Executive Officer effective 20 May 2026. He succeeds Datuk Nik Amlizan Mohamed who served since 2020.

Jay Khairil joins from Bank Simpanan Nasional, where he led the bank's digital banking transformation, financial performance improvements, and financial inclusion mandate. He brings nearly 30 years of experience across CIMB Group, Bank Negara Malaysia, and Bank of Tokyo-Mitsubishi UFJ Malaysia.

For the startup ecosystem this matters beyond a personnel announcement. KWAP as a fund-of-funds backer and institutional LP is a critical source of capital for Malaysian and regional VC funds. A new CEO with deep digital banking and transformation credentials signals that KWAP's investment philosophy may increasingly tilt toward tech-enabled financial infrastructure and digital economy bets.

Ryt Bank and ILMU: Malaysia's Sovereign AI Model Goes Live at Scale

The Ryt Bank and Tencent Cloud story has a detail that deserves its own moment. Ryt AI, the conversational intelligence engine at the heart of the bank, is built on ILMU, Malaysia's sovereign large language model developed by YTL AI Labs. With 1.2 million users and nearly half actively engaging with ILMU-powered features, Malaysia now has one of the region's most tangible deployments of a sovereign AI model in a regulated financial services context. This is exactly what AI Nation 2030 is supposed to look like in practice.

🔍 ECOSYSTEM INSIGHTS

Zero-UI Banking: What Ryt Bank's Growth Means for Malaysian Fintech Founders

Ryt Bank's 1.2 million user milestone in under seven months is the fastest adoption curve of any Malaysian digital bank to date. For context, established digital banks in the region took 12 to 18 months to hit comparable user numbers. The Zero-UI model is creating a category of its own, and it raises a question every fintech founder in Malaysia should be thinking about: if the interface itself disappears and banking becomes conversational, what happens to the apps and products built on top of traditional interfaces?

This is not a distant disruption. It is happening now, in Malaysia, at scale.

⚡ QUICK BITES

CIMB Bank and CIMB Islamic launched a new financing programme this week to help MSMEs manage rising operating costs, providing working capital access through a structured facility targeting small businesses across Malaysia.

RHB launched a new SME relief facility providing working capital financing for Malaysian businesses navigating higher operating costs, adding to the growing number of bank-led MSME support programmes in 2026.

🎯 THE BOTTOM LINE

This week Malaysia made global news in digital banking without anyone outside the ecosystem fully registering it. Ryt Bank hitting 1.2 million users on a sovereign AI model, backed by Tencent Cloud's global infrastructure, is the kind of proof point that puts Malaysia on the map in conversations that usually only include Singapore, Indonesia, and the Philippines. Add KWAP getting a new CEO with digital transformation credentials, and the institutional infrastructure around the ecosystem is quietly being upgraded too. The pieces are moving. Founders who are paying attention will know where to position next.

Startup Pulse is published every Monday. Subscribe | Follow us on LinkedIn, Instagram & Threads

📰 HEADLINE NEWS

Grab Posts Record Q1 2026: $955M Revenue, $120M Profit

On 5 May 2026, Grab reported its strongest first quarter results on record. Revenue grew 24% year-on-year to $955 million, net profit hit $120 million growing from just $10 million in the same period last year, and adjusted EBITDA jumped 46% to a record $154 million. On-demand GMV grew 24% to $6.1 billion with monthly transacting users reaching 52 million.

Grab also reaffirmed its full-year 2026 guidance of $4.04 to $4.10 billion in revenue and $700 to $720 million in adjusted EBITDA. The company described Q1 as its seasonally softest quarter due to Ramadan and Chinese New Year, making the performance even more significant.

For Malaysian founders this matters beyond the headline numbers. Grab's financial services revenue, which includes GXBank and its broader lending portfolio, grew 43% year-on-year to $107 million. The digital bank that operates in Malaysia is now a material contributor to the region's largest superapp. The profitability-first era is producing real numbers at scale.

💰 REGIONAL FUNDING LANDSCAPE

JustCo Files for SGX IPO: Coworking Operator Eyes Malaysia Entry

On 7 May 2026, Singapore-based flexible workspace operator JustCo filed a preliminary prospectus for a mainboard listing on the Singapore Exchange. The company returned to profitability in 2025 with a net profit of $2.7 million, reversing a $10.1 million loss the prior year, on revenue of $144.2 million. Occupancy across its 54 centres climbed to 84% from 78% in 2024.

JustCo's expansion roadmap explicitly names Malaysia as a new market entry target alongside Hong Kong, India, and the Philippines. The company plans to open 28 additional centres in 2026 to reach 78 total locations. Cornerstone investors include funds managed by JPMorgan Asset Management, Maybank Asset Management, and Fullerton Fund Management. GIC and Frasers Property remain controlling shareholders.

This is a direct signal for the Malaysian workspace and PropTech ecosystem. JustCo entering Malaysia brings institutional-grade flexible workspace competition, which also creates opportunity for local operators who know the market better.

Salmon Raises $100M to Expand Financial Inclusion in the Philippines

Salmon Group, a Philippine-focused financial services platform, closed a $100 million financing package consisting of $60 million in equity led by Spice Expeditions and $40 million in public bonds. The equity round included Washington University Investment Management Company, Moore Strategic Ventures, and FJ Labs. The capital will fund product expansion, wider distribution, and balance sheet growth for Salmon Bank.

The Philippines is one of the most underpenetrated banking markets in SEA, and deals like this signal that patient capital is still flowing into financial inclusion plays across the region.

📊 MARKET MOVEMENTS

Malaysia Rises to Second Place in SEA Deal Volume for Q1 2026

DealStreetAsia's Q1 2026 Southeast Asia Deal Review, released this week, confirmed Malaysia moved to second place by deal volume for the first time, recording 18 equity deals in the quarter, its highest tally since Q3 2024. The uptick was driven primarily by seed and early-stage rounds, supported in part by NEXEA Venture Capital's accelerator activity.

The broader picture remains challenging. SEA startups raised $2.81 billion across just 98 deals in Q1 2026, the lowest quarterly deal count in at least eight years. Singapore still accounted for 91.5% of total capital raised. However, the data and AI/ML vertical climbed to second place by deal volume with 13 transactions, behind only fintech with 16 deals. Agentic AI and enterprise automation are now the primary draws for investor attention in the region.

Indonesia recorded just five deals in the quarter, a striking decline for what was once the region's largest startup market.

🇲🇾 MALAYSIA WATCH

Malaysia's 18 Deals in Q1 2026: What the Numbers Actually Mean

The DealStreetAsia data deserves a closer read for Malaysian founders. Second place by deal volume does not mean second by capital. Singapore's 91.5% share of funding dollars means Malaysian deals are predominantly at the early stage, which is both a constraint and an opportunity.

The constraint: late-stage and growth capital for Malaysian companies still largely requires a Singapore entity or a regional expansion story to unlock. The opportunity: if you are a seed-stage founder in Malaysia right now, deal activity is real and rising, and programs like NEXEA's accelerator are actively contributing to that momentum. The market is not dead. It is just early-stage heavy, which means product-market fit and early revenue matter more than ever before raising your next round.

🔍 ECOSYSTEM INSIGHTS

SEA's Deep Tech Startups Are Now Looking at Japan to Exit

A KR Asia report published this week highlighted a growing trend: Southeast Asian deep tech founders are looking to Japan as an alternative listing destination. Japan Exchange Group has been actively courting SEA startups as local capital markets remain shallow and US listings remain out of reach for most regional companies. Vietnam's Alterno, a climate tech startup building sand-based thermal batteries, is among those considering Tokyo.

For Malaysian deep tech founders in AI, semiconductors, advanced materials, and climate tech, Japan is worth watching as both a strategic market and a potential exit pathway. With SIDEC this week sending five Malaysian deep tech startups to SusHi Tech Tokyo 2026 for investor matchmaking with Japanese companies, the Malaysia-Japan corridor is becoming increasingly active.

⚡ QUICK BITES

SIDEC sent five Malaysian deep tech startups to SusHi Tech Tokyo 2026 this week, spanning AI, robotics, sustainability, advanced materials, and digital transformation. The mission focused on investor networking and strategic business matchmaking with Japanese corporations looking for Southeast Asian innovation partnerships.

Atome Financial secured approximately $149 million in fresh capital injection from its parent company Advance Intelligence Group, strengthening its balance sheet as it continues expanding its buy-now-pay-later and credit business across Southeast Asia including Malaysia.

🎯 THE BOTTOM LINE

Two stories define this week. Grab's record Q1 results prove that the profitability-first playbook, executed consistently over multiple years, produces real returns at scale. And Malaysia quietly climbing to second place in SEA deal volume confirms that early-stage momentum is building even as late-stage capital remains concentrated elsewhere. The ecosystem is not waiting for a perfect funding environment. The founders who are moving now, building proof, and positioning for the next wave of institutional capital will be the ones who look back at 2026 as the year everything changed.

Startup Pulse is published every Monday. Subscribe | Follow us on LinkedIn, Instagram & Threads

📰 HEADLINE NEWS

Malaysia Goes All-In on AI Workforce: Microsoft Elevate Launches Nationally

On 24 April 2026, Malaysia's Ministry of Digital and Microsoft officially launched Microsoft Elevate, a national AI capacity-building programme aligned with the country's AI Nation 2030 ambitions. Officiated by Digital Minister Gobind Singh Deo, the initiative expands Malaysia's AI skilling agenda to educators, MSMEs, retired servicemen and women, civil servants, and learning institutions across the country.

The pilot phase rolled out in January has already reached 80,000 learners. The programme builds on Microsoft's earlier AIForMYFuture initiative, which targeted 800,000 Malaysians in AI skills, and the Bersama Malaysia programme which previously upskilled 1.53 million Malaysians in cloud, AI, and cybersecurity.

This is not just a training programme. It is Malaysia executing on AI Nation 2030 at the population level. The signal for founders: the talent pipeline is being built top-down, which means the next wave of AI-capable hires and customers is coming from every segment of the economy, not just tech.

💰 REGIONAL FUNDING LANDSCAPE

Cube Raises $3.7M Series A to Expand E-Commerce Data Intelligence Across Asia

Singapore-based Cube closed a $3.7 million Series A led by Betatron, with participation from M Venture Partners. Founded in 2022, Cube aggregates fragmented digital retail data to give brands granular visibility into online market performance, combining public data, consumer receipts, and surveys through its Meter Cube dashboard and APIs.

The company plans to expand beyond Southeast Asia into North Asia and Latin America, broaden its product coverage into categories like packaged food and beverages, and enhance its AI-driven product tagging system to support multiple languages. A data intelligence play targeting the fragmented e-commerce landscape across emerging markets.

PvX Partners Raises $10.5M Series A for Cohort Financing Platform

PvX Partners, which provides growth capital to mobile gaming and consumer app developers through user acquisition financing, raised $10.5 million in a Series A led by T-Accelerate Capital, with participation from Z Venture Capital, Drive by DraftKings, Play Ventures, and General Catalyst. The company's proprietary machine learning platform PvX Lambda has now surpassed $750 million in committed user acquisition financing, positioning it as a credible alternative to traditional venture funding for app developers looking to grow without diluting equity.

📊 MARKET MOVEMENTS

Singapore's MPA Backs Six Robotics Firms with $2.9M for Maritime Innovation

Singapore's Maritime and Port Authority awarded SGD 3.7 million in R&D co-funding to six companies developing robotic hull inspection and cleaning technologies, including Neptune Robotics, Alicia Bots, and Oceanis Robotics. The funding flows through the Maritime Innovation and Technology Fund and targets marine biofouling, which increases vessel drag, fuel consumption, and emissions. The 18-month deployment trial in live port conditions begins in the second half of 2026.

Singapore is quietly building one of the most comprehensive deep-tech grant ecosystems in the region. For SEA founders in robotics, maritime tech, and industrial AI, the MPA's MINT Fund is a funding channel worth tracking.

🇲🇾 MALAYSIA WATCH

Microsoft Elevate: What It Means for Founders

The numbers behind Microsoft Elevate deserve a closer look. Malaysia is now the third country in Asia after Singapore and Australia to launch the programme this April. The initiative targets five groups: students from kindergarten through TVET, educators who need skills to teach AI, MSMEs who need practical AI productivity tools, civil servants, and military retirees transitioning to civilian roles.

For founders building AI products and tools in Malaysia, this is material news. A government-backed programme pushing AI literacy into MSMEs and civil service creates an addressable market of users who will be actively looking for practical AI solutions by 2027. Founders who are building for that wave now are early.

🔍 ECOSYSTEM INSIGHTS

The Cohort Financing Model: A New Funding Lane for App Founders

PvX Partners' $10.5M raise this week is worth a deeper look for SEA founders in gaming and consumer apps. Traditional VC demands equity and board seats. Cohort financing, the model PvX is scaling, provides growth capital tied directly to user acquisition performance data rather than valuation rounds. With $750M in committed financing already deployed globally, this model is proving out as a real alternative to dilutive funding for app-first businesses. As SEA's mobile-first consumer economy matures, expect more of these revenue-based and performance-linked financing structures to arrive in the region.

⚡ QUICK BITES

Baskit, a Singapore and Jakarta-based B2B commerce platform, raised $4.4 million in the first close of a Series A led by Cento Ventures, alongside a $3 million revolving credit facility from HSBC Innovation Banking. The company said its Indonesia and Malaysia units have reached operational profitability and expects group-level profitability in the second half of 2026.

OrtCloud, a Singapore-based startup, raised $1.7 million in a pre-seed round led by Golden Gate Ventures with Antler participating, to build infrastructure for fixed workloads and AI agent sandboxes.

🎯 THE BOTTOM LINE

This week's story is Malaysia playing the long game. Microsoft Elevate is not a headline funding round. It will not appear on a VC database. But it is arguably the most important thing that happened in the Malaysian ecosystem this week because it is the infrastructure that makes everything else possible. Founders raise capital to build products. Products need users. Users need to understand AI to adopt AI products. Malaysia is now trying to solve that adoption problem at the national level. That is a big deal for every founder building here.

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HEADLINE NEWS

Malaysia’s Hata Raises $8M from the World’s Second Largest Crypto Exchange

Hata, Malaysia’s only dual-licensed digital asset exchange, closed a USD 8 million Series A funding round led by Bybit, the world’s second-largest cryptocurrency exchange by trading volume, alongside several global family offices. The deal is more than capital. Bybit described Malaysia as a strategically important market with one of the most digitally engaged populations in Southeast Asia and strong long-term potential for digital asset adoption.

This is a significant validation moment for Malaysia’s regulated crypto space. A global exchange of Bybit’s scale choosing to bet on a Malaysian-licensed platform signals growing confidence in the Securities Commission’s regulatory framework.

💰 REGIONAL FUNDING LANDSCAPE

PolicyStreet Closes $21M Series C First Close, Now Backed by Two Sovereign Wealth Funds

Malaysian insurtech PolicyStreet secured $21M in the first close of its Series C, led by Japan’s Cool Japan Fund, with participation from existing investors Altara Ventures and Gobi Partners. The deal brings PolicyStreet’s total backing to more than $100M and adds a second sovereign wealth fund to its investor base. Malaysia’s Khazanah had previously led the company’s Series B in 2023.

The funding follows PolicyStreet reporting more than $1 million in profit for FY2025. Since its Series B, the customer base has doubled from 5 million to more than 10 million users, and total sum insured has grown from $6 billion to over $10 billion.

Profitability first, then sovereign capital. This is exactly the playbook the market rewards right now.

Hata Expands Malaysia’s Digital Asset Infrastructure

Hata’s $8M Series A reflects a broader trend: licensed exchanges operating in regulated markets are gaining a structural advantage over unregulated competitors as regional crypto regulation matures. The funding will be used to strengthen liquidity, accelerate user growth, and develop new digital asset products.

📊 MARKET MOVEMENTS

SEA Funding Hits Three-Month High in March

Startup funding in Southeast Asia reached $582.2 million in March 2026, a 352% rise from February, with megadeals returning to the region. With Q1 2026 already clocking $2.8B total, the question for April is whether momentum holds without another outlier mega-round to anchor the numbers.

Western Union Completes Dash Acquisition from Singtel

Western Union completed its acquisition of Dash from Singtel after receiving all required regulatory approvals. The deal gives Western Union its first wallet in Asia Pacific and marks a milestone in its strategy to build a broader send-and-receive network globally. A legacy remittance giant embedding itself into everyday digital wallets, the lines between traditional finance and fintech continue to blur.

🇲🇾 MALAYSIA WATCH

Two Sovereign Wealth Funds Now Back a Malaysian Startup

PolicyStreet’s Series C is the Malaysia story of the week. Being backed by both Khazanah and Japan’s Cool Japan Fund puts PolicyStreet in very rare company for a Malaysian tech firm. CEO Yen Ming Lee confirmed the company has now raised over $43 million in total, with discussions ongoing with additional investors as the Series C round continues.

For founders watching: embedded insurance, profitable unit economics, and a clear regional expansion story is what sovereign-level capital looks like when it writes a cheque into Malaysia.

Budget 2026 Funding Mechanisms Now in Deployment Phase

Malaysia’s Budget 2026 unlocked a multi-billion ringgit war chest including a record RM50 billion in loans and guarantees, an upsized RM750 million venture capital injection from GLICs, and numerous grants and co-investment funds across stages from ideation to regional expansion. As Q2 begins, founders should be actively engaging MyCIF, Cradle, and MRANTI programs. The capital is allocated, but access is competitive.

🔍 ECOSYSTEM INSIGHTS

The Regulated Crypto Opportunity in Malaysia

Hata’s Bybit-led round is a signal worth paying attention to. Malaysia has one of Southeast Asia’s more structured digital asset regulatory frameworks under the Securities Commission, and global players are now choosing to work within it rather than around it. With Bybit choosing Hata as their Malaysian strategic partner and committing both capital and deep collaboration, the message is clear: compliant platforms in regulated markets have a moat. Expect more global crypto firms to follow this playbook across the region.

⚡ QUICK BITES

Grab and WeRide's autonomous Ai.R service in Singapore's Punggol entered public operations this month with rides free until commercial service begins mid-2026. The 11-vehicle fleet has clocked 30,000km of autonomous mileage and served over 1,000 early riders. Singapore is targeting 100 to 150 self-driving vehicles deployed by end of 2026. Malaysian founders in mobility, logistics, and AI should be watching this closely, what starts in Punggol rarely stays in Punggol.

🎯 THE BOTTOM LINE

This week belonged to Malaysia. Hata’s Bybit-led raise and PolicyStreet’s dual sovereign wealth fund backing in the same month are two of the most credible Malaysia-specific funding signals we have seen in 2026. The pattern is consistent: profitability first, then institutional capital follows. For founders still chasing growth at all costs, the market is sending the same message it has been sending all year. Show the numbers, then show your vision.

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HEADLINE NEWS

SEA Startup Funding Surges 110% YoY in Q1 2026

Southeast Asian startups raised $2.8 billion in Q1 2026, up 110% compared to $1.3 billion in Q1 2025 and a 146% jump from Q4 2025. The quarter saw five $100M+ rounds, led by DayOne ($2B Series C), EPG ($200M Series B), and Amity Solutions ($100M Series D). Singapore-based firms accounted for 93% of all regional funding.

The concentration story continues, but the aggregate numbers signal genuine momentum returning to the region.

💰 REGIONAL FUNDING LANDSCAPE

Singapore AI Deals Dominate This Week's Rounds

Three Singapore-based AI startups closed rounds last week:

Muun AI raised $700K pre-seed from Wavemaker Impact for its industrial intelligence platform, which converts machine telemetry into real-time operational insights with no additional hardware required.

OnSite raised SGD 1.7M ($1.3M) in a seed round co-led by Tin Men Capital and Alter Global, with participation from Hustle Fund and Gondor Capital. The startup builds AI-powered communication and documentation infrastructure for construction projects across Southeast Asia.

Injewelme raised $1.2M led by Catalytic Capital for Climate and Health, a Temasek Trust vehicle, for its contactless health monitoring solution that measures 20+ vital signs via a standard camera.

Digital Asset Deals to Watch

Keyrock secured Series C funding valuing it at $1.1B, led by SC Ventures (Standard Chartered's venture arm) with continued Ripple backing. The crypto market-making and digital asset infrastructure firm said it will use proceeds to pursue acquisitions and bridge traditional finance with tokenized markets.

Transak received investment from Gobi Partners to expand its digital asset payments infrastructure across Asia. The startup provides fiat-to-digital asset conversion via a single API and serves over 10 million users through 600+ integrated apps.

📊 MARKET MOVEMENTS

Fintech: More Money, Fewer Deals

Global fintech venture funding hit $12 billion across 751 deals in 2026 to date, up 5% in dollars raised year-over-year but into 31.5% fewer deals. Late-stage funding ($6.9B) is up 8% YoY while deal volume at seed and early stage continues to compress. The quality-over-quantity filter is in full effect.

🇲🇾 MALAYSIA WATCH

Ekuinas Takes Stake in Ain Medicare

State-backed investor Ekuinas has acquired a minority stake in Ain Medicare through its MYR 1 billion Tranche IV fund. Ain Medicare, founded in 1993, manufactures sterile pharmaceutical injectables and IV solutions across seven facilities in Malaysia, exporting to 17 markets. The investment will support expansion into specialized generics, advanced injectables, and international markets.

A significant signal: Ekuinas deploying its Tranche IV capital into healthcare manufacturing aligns with Malaysia's push to strengthen strategic industries beyond pure tech.

Grab Rolls Out AI Superapp Features for Malaysia

Grab unveiled 13 new AI-powered features at GrabX 2026, built on its "Grab Intelligence Layer" trained on over 20 billion rides and orders. Features rolling out in Malaysia include Group Ride (up to 40% fare savings for shared trips), Driver AI Assistant (voice-guided real-time support), and a Virtual Store Manager pilot for merchants. The Grab AI Assistant and Cash Loan features are targeted for local launch by mid-to-late 2026.

🔍 ECOSYSTEM INSIGHTS

The Singapore Concentration Problem and Its Implications for Malaysia

Singapore accounted for 93% of all SEA tech funding in Q1 2026. Bangkok came second at just 4%. For Malaysian founders, the structural imbalance remains a real fundraising headwind. The good news: with the 13th Malaysia Plan now in execution phase and AI Nation 2030 shifting from policy to deployment, 2026 is the year to watch whether domestic capital mechanisms such as MyCIF, MRANTI co-investments, and the digital bank lending ecosystem can meaningfully bridge the gap.

⚡ QUICK BITES

Libeara raised an undisclosed round led by GSR, with Monk's Hill Ventures participating. The Singapore-based tokenization platform has already processed over $1B in tokenized assets including a retail money market fund in Asia.

NeuBird AI raised $19.3M in an oversubscribed round led by Xora Innovation to scale its agentic platform for enterprise IT incident management.

SEA recorded three IPOs in Q1 2026: BIM, The Assembly Place, and Toku, matching Q4 2025 but well above Q1 2025's zero IPOs.

🎯 THE BOTTOM LINE

Q1 2026 confirmed what many suspected: SEA venture is recovering, but the recovery is highly concentrated and late-stage dominated. For the Malaysian ecosystem, two stories matter this week: Ekuinas deploying Tranche IV into healthcare manufacturing, and Grab's aggressive AI superapp rollout signalling that the battle for the Malaysian consumer is increasingly an AI infrastructure battle. Founders building in enterprise AI, health tech, and fintech infrastructure are in the right lane.

Startup Pulse is published every Monday. Subscribe at [Substack link] | Follow us on LinkedIn, Instagram & Threads

HEADLINE NEWS

CapBay and CGC Digital Launch Malaysia's First Dual-Facility Guarantee Scheme for MSMEs

On April 8, Malaysian fintech CapBay and CGC Digital, the digital arm of Credit Guarantee Corporation Malaysia, announced a landmark partnership to launch a new Digital Guarantee Scheme targeting unserved and underserved MSMEs across the country.

The scheme combines CGC Digital's credit guarantee capabilities with CapBay's supply chain finance and P2P financing platform. The guarantees function as a risk-sharing mechanism, enabling lenders to offer more competitive financing terms while supporting businesses that lack traditional collateral. CapBay's AI-driven credit assessment system is designed to shorten evaluation timelines and accelerate access to funding.

What Makes This a First

It is the first dual-facility offering under the CGC Digital guarantee scheme, meaning it provides both Islamic and conventional financing options simultaneously to target overall market inclusion. This is significant in the Malaysian context, where Islamic finance is not a niche product but a core pillar of the financial system. By running both facilities at the same time, neither segment of the market is asked to compromise.

The Numbers Behind the Scheme

Building on CapBay's track record of facilitating over RM5.4 billion for more than 2,500 SMEs, this collaboration unlocks capital from new institutional and retail investors on CapBay's P2P platform. The rollout targets businesses with at least 51% Malaysian ownership, offering financing between RM50,000 and RM500,000, with tenures of up to 60 months.

The Missing Middle Problem

The scheme directly addresses what CapBay's Co-Founder and CEO Ang Xing Xian calls the "missing middle," which refers to viable enterprises that are consistently overlooked by traditional lenders due to a lack of collateral, not a lack of business merit.

Under this collaboration, CGC Digital's guarantee improves the credit profile of participating businesses and encourages broader participation from institutional and retail investors on CapBay's platform. The structure also supports a lower interest rate ceiling, making financing more accessible and affordable for smaller businesses.

For Malaysia's 1.2 million MSMEs, which account for 97% of all business establishments in the country, this kind of infrastructure matters more than any single funding round. It widens the base of who can access capital, not just who can access the most capital.

🏛️ STANDARD CHARTERED OPENS MALAYSIA'S FIRST GLOBAL FUSION CENTRE

World-Class Cyber and Fraud Command Hub Launched in Kuala Lumpur

Standard Chartered launched its first Global Fusion Centre in Malaysia on April 6, reinforcing the country's status as a strong talent ecosystem and a key strategic technology hub for the Group. The integrated model brings together the bank's people, technology and intelligence functions to enhance operational resilience and improve its ability to respond decisively in real time.

Why Malaysia and Why Now

The choice of Kuala Lumpur as the home of Standard Chartered's first-ever global fusion centre is deliberate and consequential. Malaysia's Global Business Services sector has grown significantly in recent years, with a 66.8% increase in companies since 2022, now exceeding 700 entities. That growth mirrors Malaysia's transformation from a cost-based economy to one driven by value, innovation and intelligence. Investments in GBS have surged from RM730 million in 2021 to RM9.87 billion in 2024.

The GBS Malaysia hub supports the bank's businesses across more than 50 markets worldwide. It is now Standard Chartered's second largest GBS footprint in the world after India, employing more than 4,400 people, with Malaysian talents making up 85% of the workforce.

What a Fusion Centre Actually Does

The centre uses real-time data and AI-driven systems to sharpen response and keep operations running through disruptions. In plain terms, it pools alerts from different risk teams so that one incident is not treated as several unrelated ones. Cyber threats, fraud signals and physical security alerts are all brought into a single, unified picture.

In traditional banking, these functions have historically operated in silos. Teams protecting internal systems, teams safeguarding clients and teams handling branch physical security have rarely communicated in real time. The Fusion Centre solves that by design.

For the startup ecosystem, this sends a clear signal: Malaysia is being trusted with global-tier cybersecurity and operational infrastructure. That level of institutional confidence attracts more institutional investment, more talent pipelines and more partnerships for local technology companies.

The Macro Context

The centre's launch comes at a moment when digital fraud and cyber threats are no longer isolated technical incidents. They are coordinated, cross-domain attacks on financial infrastructure. By housing cyber, fraud and physical security monitoring in a single location, Standard Chartered is essentially building a unified threat intelligence operation out of Kuala Lumpur that serves more than 50 markets globally.

🤖 ORACLE AND MYDIGITAL COMMIT TO TRAINING 300,000 MALAYSIANS IN AI BY 2029

Largest AI Skills Initiative in Malaysia's History Launched Free of Charge

Oracle and MyDIGITAL Corporation announced on April 2 a collaboration to deliver skills training to 300,000 students and professionals across Malaysia, with the goal of boosting employability and supporting career growth by 2029.

The programme will be delivered entirely free of charge through Oracle MyLearn, the company's comprehensive training and enablement platform used by millions of technology learners globally. It provides foundational cloud training that advances to professional certifications, with structured learning paths tailored to skill level and goals.

What the Training Covers

Participants will receive over 200 hours of structured learning and certification opportunities over the next three years. Courses cover Oracle Cloud Infrastructure, OCI Generative AI, OCI Data Science, Oracle APEX, OCI DevOps and OCI Security. Learners can earn badges alongside professional certifications, creating a direct signal of readiness for employers.

Why This Matters for Founders

The talent pipeline is consistently ranked as one of the top constraints for Malaysian tech startups trying to scale. A free, government-backed programme delivering 200 hours of AI and cloud certifications to 300,000 people over three years directly addresses that constraint at scale.

Oracle MyLearn will be integrated into Rakyat Digital, the government's own national digital literacy platform, by June 2026. This means the programme is not a standalone corporate initiative. It is embedded into the government's infrastructure, ensuring reach beyond urban professionals into students and communities nationwide.

For Malaysian startup founders, a larger certified talent pool translates directly into a more competitive hiring market, lower recruitment costs and the ability to build technical teams locally rather than relying on expensive international hires.

📊 ECOSYSTEM ANALYSIS

Malaysia's Week in Focus: Infrastructure, Trust and Talent

This week's three stories do not share a sector or a deal size. What they share is a theme. Malaysia is being systematically built into the region's most credible operating base for serious technology and financial infrastructure. Each story adds a distinct layer to that foundation.

The Infrastructure Layer: CapBay and CGC Digital

The dual-facility MSME guarantee scheme is not a headline funding round. There is no single cheque to celebrate. But it is arguably more structurally important than most funding rounds that make the news. By using AI-driven credit assessment to serve the missing middle and backing it with a government-linked credit guarantee, CapBay and CGC Digital have created a product that removes two of the most persistent barriers to MSME financing simultaneously: collateral requirements and slow approval timelines.

The dual Islamic and conventional structure ensures the scheme reaches the full breadth of Malaysia's diverse business community. No viable enterprise is asked to navigate a product that was not designed for them.

The Trust Layer: Standard Chartered's Fusion Centre

When a bank operating across more than 50 markets globally chooses a location for its first-ever unified cyber, fraud and physical security centre, the selection is not arbitrary. Standard Chartered's choice of Kuala Lumpur signals that Malaysia's talent depth, regulatory stability and digital infrastructure have crossed a threshold where they are trusted with mission-critical global operations.

The downstream effect of this for the startup ecosystem is significant. Every major institution that anchors a global capability in Kuala Lumpur creates supplier opportunities, talent development pipelines and technology partnerships that benefit the broader ecosystem.

The Talent Layer: Oracle and MyDIGITAL

The 300,000 target is ambitious by any measure. But the delivery mechanism is what makes this credible. Free access via a government-integrated platform, 200 hours of structured learning and certifications that are directly readable by employers. This is not a press release programme. It is a workforce development strategy with a three-year horizon.

For Malaysian founders, the implication is clear. AI-certified talent becomes meaningfully more available locally as this programme matures.

The Global Context: Tariffs, Uncertainty and Malaysia's Positioning

This week's ecosystem developments are unfolding against a turbulent global backdrop. US tariffs have pushed effective rates on Malaysian exports to approximately 24%. Maybank and CIMB have both announced financial assistance measures for customers affected by geopolitical and economic uncertainty, including adjustments to repayment terms.

The broader signal from Malaysia's major financial institutions is that they are leaning into the uncertainty rather than retreating from it. They are extending credit support, accelerating wealth management strategies and building infrastructure for the long term.

For Malaysian founders navigating this environment, the macro volatility is real but so is the structural support. The question is whether you are building a business that benefits from Malaysia's growing role as a trusted regional hub, or one that is exposed to the global supply chain disruptions that tariffs are accelerating.

📌 QUICK BITES

• CapBay and CGC Digital: First dual-facility (Islamic and conventional) Digital Guarantee Scheme launched April 8. RM50,000 to RM500,000 financing for MSMEs with up to 60 months tenure

• CapBay track record: Over RM5.4 billion facilitated for more than 2,500 SMEs to date

• Standard Chartered Fusion Centre: First global multi-disciplinary fusion hub for cyber, fraud and physical security launched April 6 in Kuala Lumpur. Supports operations across 50-plus markets

• StanChart GBS Malaysia: 4,400 employees, 85% Malaysian, second largest GBS footprint globally after India

• Oracle and MyDIGITAL: 300,000 Malaysians to receive free AI and cloud training by 2029. Over 200 hours of structured learning included

• Oracle MyLearn integration: To be embedded into Rakyat Digital platform by June 2026

• Maybank assistance: Financial relief measures activated for customers affected by global economic and geopolitical uncertainty

• CIMB Forward30: Group expanding into ASEAN's affluent wealth segment. CIMB Private Wealth to launch in Malaysia mid-2026

• US tariffs on Malaysia: Effective reciprocal tariff rate on Malaysian exports sits at approximately 24% following Liberation Day negotiations

• ASEAN Fintech Forum 2026: April 16, Kuala Lumpur. Key gathering for founders and investors in the regional fintech space

🎯 THE BOTTOM LINE

Three stories. Three layers. One consistent narrative. Malaysia is being built into a serious, long-term operating base for regional and global technology and financial infrastructure, and the week of April 7 to 12 delivered concrete evidence of that at every level.

The CapBay and CGC Digital guarantee scheme addresses the most persistent structural problem in Malaysia's startup-to-SME pipeline. The missing middle has historically been left outside the formal financing system, not because those businesses are unviable, but because the system was not designed to reach them. The dual-facility structure, simultaneously covering Islamic and conventional financing, backed by AI-driven assessment and government-linked guarantee coverage, represents the most thoughtful solution yet deployed through a fintech platform in Malaysia. With RM5.4 billion already facilitated across 2,500-plus SMEs, this is a proven model with a meaningful new tool attached.

Standard Chartered's Global Fusion Centre is the most visible institutional vote of confidence Malaysia has received this year. The bank is not opening a regional sales office or a representative branch. It is housing its first globally integrated cyber, fraud and physical security operation in Kuala Lumpur. That decision was made on talent depth, regulatory trust and infrastructure quality. Every founder building in Malaysia should take note: you are operating in a market that global institutions are choosing for their most sensitive and mission-critical operations.

The Oracle and MyDIGITAL partnership is the longest-horizon story of the three, but potentially the most consequential. A talent gap is the hardest constraint to solve quickly. A programme committing 200 hours of free, certification-grade AI and cloud training to 300,000 people, embedded into a national government platform by June 2026, is a serious structural investment in Malaysia's capability base. For founders planning their hiring pipelines over a two to three year horizon, this is the news that matters most.

Against the backdrop of US tariffs at 24%, geopolitical uncertainty and tightening global liquidity, Malaysia's institutional response this week has been expansion, not retreat. That is the posture that defines ecosystems worth building in.

The infrastructure is real. The trust is growing. The talent pipeline is being funded.

Execution remains on founders.

Startup Pulse is your curated weekly digest of the latest developments in Malaysia and Southeast Asia's startup ecosystem. Stay informed, stay ahead.

HEADLINE NEWS

PolicyStreet Closes $21M Series C First Round, Now Backed by Two Sovereign Wealth Funds

Malaysia's insurtech firm PolicyStreet announced on April 1 the first close of its Series C funding round, raising US$21 million (RM85 million). The round was led by Cool Japan Fund, a Japanese sovereign wealth fund, with participation from returning investors Altara Ventures and Gobi Partners.

The deal brings PolicyStreet's total backing to more than $100 million and adds a second sovereign wealth fund to its investor base. Malaysia's sovereign wealth fund Khazanah had previously backed the company in a RM67 million Series B round in 2023.

What Makes This Round Significant

The fresh capital will be used to support its next phase of growth, including regional expansion, stronger technology infrastructure, and deeper partnerships across Asia.

The numbers behind the raise tell the real story of execution:

• Since their previous funding round, they've reportedly doubled the number of customers they serve, from 5 million to more than 10 million (Flash Express)

• Total sum insured surged from $6 billion to over $10 billion

• The funding follows the company's report of more than $1 million in profit for the financial year 2025, marking a milestone as a profitable insurtech platform

The Cool Japan Fund Angle

This isn't just capital, it's a strategic play. For Cool Japan Fund, the investment is a strategic play to facilitate the cross-border expansion of Japanese goods. By leveraging PolicyStreet's embedded insurance model, Cool Japan Fund aims to lower consumer trust barriers for Japanese products sold via e-commerce platforms in Southeast Asia.

Two sovereign wealth funds backing the same insurtech signals something bigger than a funding round, it signals that embedded insurance is being treated as critical digital infrastructure in Asia's e-commerce economy.

The Embedded Insurance Opportunity

PolicyStreet's model, integrating insurance directly into digital transactions across gig economy, mobility, logistics, and telco platforms, positions it at the intersection of two massive regional trends: the explosion of Southeast Asia's digital economy and the severe underinsurance gap across the region.

For Malaysian founders, the lesson is clear: profitable, problem-specific businesses still attract institutional-grade capital even in a tighter funding environment.

💳 AIRWALLEX GETS FULL BANKING LICENCE IN MALAYSIA, AND IT'S HIRING

Global Payments Giant Now Fully Operational on Malaysian Soil

Airwallex, a leading global financial and payments platform, announced on April 1 that it has received approval from Bank Negara Malaysia for its e-money issuing and Class A licences. With these licences, Airwallex is able to provide a complete suite of payment services in Malaysia.

This is significant for Malaysian startups and SMEs. Airwallex's full licensing means local businesses now have access to one of the world's most capable cross-border payment infrastructures, regulated and operating on home soil.

What This Means on the Ground

Over RM2 billion in remittance transaction volume was processed in 2025, driven by rising demand from Malaysian businesses operating across borders. (Yahoo Finance) The licence unlocks Airwallex's full stack, multi-currency collections, global payouts, corporate cards, and spend management, for Malaysian companies scaling regionally.

Airwallex has also continued to invest in its local presence, growing its Malaysia team by 66% in 2025 and recently expanding into a new office space with capacity for over 160 employees. Airwallex Malaysia plans to double its headcount throughout 2026.

For the ecosystem broadly, this is a vote of confidence in Malaysia as a regional fintech hub, from a company valued at $8 billion that could have chosen Singapore, Indonesia, or Thailand as its primary ASEAN base of operations.

⚠️ BIGPAY RESTRUCTURES, A CAUTIONARY TALE FOR FINTECH SCALING

Senior Leaders Exit Across Three Markets as Capital A Subsidiary Resets

Not all the week's news was celebratory. Fintech News Network learned through LinkedIn posts that BigPay, a fintech subsidiary of Capital A, went through a round of restructuring. The departures include high-ranking leadership and technical heads based in Singapore, notably Chief Information Security Officer Angus Thorn, Head of Backend Architecture and Platform CoE Richard C. Davis, and Head of Mobile Engineering Chong Lee Kee. In Malaysia, the restructurings affected Chief Product Officer Monica Millares, whose departure follows her move to the role just last year.

The Bigger Picture

BigPay's struggles aren't new. The company has faced ongoing capital challenges as part of Capital A, previously classified as a financially distressed PN17 company on Bursa Malaysia. Senior leadership departures and restructuring signal that even well-known fintech brands with over 1.6 million cardholders are not immune to the pressures of the current funding environment.

The contrast between BigPay's week and PolicyStreet's week offers a stark lesson: profitability is the new moat. In 2026, investors and parent companies alike are less tolerant of loss-making operations, regardless of how strong the product or brand may be.

📊 ECOSYSTEM ANALYSIS

Malaysia's Fintech Week in Microcosm: Winners and Warning Signs

This week's three headlines, PolicyStreet's raise, Airwallex's licence, and BigPay's restructuring, collectively paint a clear picture of where Malaysia's startup ecosystem stands in Q2 2026.

The Capital Efficiency Imperative

PolicyStreet's Series C is the clearest data point: profitable, capital-efficient businesses are getting funded. The insurtech doubled its customer base without needing a massive capital injection. It then raised at a position of strength rather than necessity. This is the playbook for 2026.

BigPay's restructuring represents the opposite trajectory, a well-capitalized brand that burned through runway without achieving profitability, now resetting at significant human and reputational cost.

The Regulatory Opportunity

Airwallex's full licensure demonstrates that Malaysia's regulatory environment, often criticized for being slower than Singapore, is maturing. Bank Negara Malaysia issuing both e-money and Class A licences to a global player opens the door for more international fintechs to use Malaysia as their ASEAN base, which creates downstream opportunities for local founders through partnership, integration, and talent spillover.

What Regional Investors Are Watching

The SEA venture market remains bifurcated: late-stage deals are dominated by a handful of large transactions, while early-stage activity has contracted in Malaysia specifically. Investors are deploying more selectively, backing companies with demonstrated traction, a clear path to profitability, and founders who understand unit economics.

For Malaysia's startup founders, the environment demands discipline over ambition, precision over scale.

📌 QUICK BITES

• PolicyStreet Series C first close: US$21M raised, led by Cool Japan Fund; now backed by Khazanah and Cool Japan Fund, two sovereign wealth funds

• PolicyStreet milestone: Over $1M profit in FY2025; customers doubled from 5M to 10M since 2023

• Airwallex licensed: BNM approves e-money issuing and Class A licences; full suite of payment services now available in Malaysia

• Airwallex hiring: Malaysia team grew 66% in 2025; plans to double headcount in 2026

• BigPay restructuring: Senior leaders exit across Malaysia and Singapore including CPO, CISO, and engineering heads

• Digital banks: Malaysia's five digital banks reached 2.4 million customers and RM4.2 billion in deposits by end-2025

• ASEAN Fintech Forum 2026: Taking place April 16 in Kuala Lumpur, key event for founders and investors in the region

🎯 THE BOTTOM LINE

As the second quarter of 2026 opens, Malaysia's ecosystem is sorting itself into two distinct camps: builders who have found the path to profitability, and those still burning capital in search of it.

PolicyStreet's Series C first close is a landmark moment, not just for the company, but for Malaysian insurtechs and embedded finance startups broadly. Backed by two sovereign wealth funds and reporting profit in a sector known for long loss cycles, PolicyStreet has built the kind of business that earns capital rather than just attracts it. The embedded insurance model, quietly integrated into digital transactions across gig, mobility, logistics and telco platforms, is proving to be both defensible and scalable. CEO Yen Ming Lee's framing of the Cool Japan Fund partnership as "strong validation" of the long-term insurtech opportunity in Asia is not marketing, it reflects a genuine structural shift in how insurance will be consumed in the region.

Airwallex's full licensure in Malaysia is the other major signal of the week. A company valued at $8 billion, with 80 licences across 26 global offices, chose to make Malaysia a full commercial market rather than a satellite operation. That is a vote of confidence in Malaysian regulatory maturity and market opportunity that will attract others. For local founders, the arrival of Airwallex creates both competition and opportunity: competition for financial services mindshare, but opportunity through integration, partnership, and the talent that will flow through its 160+ person KL office.

BigPay's restructuring is the hard counterbalance to both stories. A recognized brand with millions of users, restructuring leadership across three markets after failing to reach profitability under its parent's constraints. The lesson for every founder is the same one the market has been teaching for three years: growth without a unit economics story is no longer fundable.

For Malaysian founders navigating this environment, the capital stack remains robust, MyCIF co-investment, Cradle grants, equity crowdfunding, and now increasingly sophisticated institutional players like Gobi Partners, Altara Ventures, and global players entering via regulatory approval. The infrastructure exists. The capital is available. The question, as always, is execution.

Build profitable. Build disciplined. Build regionally from day one.

Startup Pulse is your curated weekly digest of the latest developments in Malaysia and Southeast Asia's startup ecosystem. Stay informed, stay ahead.

HEADLINE NEWS

MyCIF Unveils RM50 Million Funding Push: Silver Economy Scheme and VC-Led Profit-Sharing Reshape MSME Capital Access

The Malaysia Co-Investment Fund (MyCIF) announced two new initiatives on March 16, a Silver Economy Scheme and VC-Led Profit-Sharing Incentive, for micro, small, and medium enterprises to seek funding in emerging growth areas and make it easier for investors to access high-quality investment opportunities .

Following the 2026 Federal Budget allocation of RM30 million, an additional RM20 million will be allocated to MyCIF for 2026, bringing total funding to RM50 million (Tracxn) . Finance Minister II Datuk Seri Amir Hamzah Azizan announced the measures at the MyCIF Engagement Day at the Securities Commission Malaysia on March 16, themed "Catalytic Capital for National Impact."

The Silver Economy Opportunity

The Silver Economy Scheme encourages investments into MSMEs supporting Malaysia's ageing population, specifically in care-tech, specialized healthcare, and senior living. Malaysia's demographic transition creates urgent demand: the proportion of citizens aged 65+ is projected to reach 15% by 2030 (from current 7%), crossing the World Health Organization's "aged society" threshold.

This demographic shift creates market opportunities across:

• Care-tech platforms (telemedicine for elderly, remote monitoring, fall detection)

• Specialized healthcare (geriatric care, palliative services, chronic disease management)

• Senior living infrastructure (assisted living facilities, age-friendly housing adaptations)

• Financial services for retirees (pension planning, healthcare financing)

The Silver Economy Scheme's 1:2 co-investment ratio (RM1 from MyCIF for every RM2 from private investors) incentivizes capital deployment into what is projected to become a multi-billion ringgit sector over the next decade.

VC/PE Profit-Sharing: Bridging Institutional and Retail Capital

The VC/PE Profit-Sharing Incentive attracts venture capital and private equity-led deals on equity crowdfunding platforms, giving opportunities to crowd investors to participate in institutionally backed deals, with MyCIF sharing 50% of the profits with VC and PE lead investors delivering exits on these investments.

Gobi Partners and OSK Ventures International have expressed intentions to bring deals to ECF investors.

This structure solves a critical market gap: retail investors typically can't access VC/PE-quality deals, while institutional investors often skip equity crowdfunding platforms. By sharing 50% of exit profits with lead investors, MyCIF incentivizes top-tier funds to bring curated deals to retail-accessible platforms.

The model creates alignment: VCs/PEs get additional capital and co-investment partners, retail investors get institutional-grade due diligence and deal flow, MSMEs get faster capital deployment from diversified sources.

MyCIF's Six-Year Track Record

Since its launch in 2019, MyCIF has surpassed RM1.5 billion in co-investments, catalysing an additional RM6.2 billion from private investors, enabling RM7.7 billion in funding raised to support more than 11,500 MSMEs (Thailand Business News) .

Returns from MyCIF co-investments have allowed the Ministry of Finance's cumulative grant of RM290 million to be recycled 5.2 times, significantly multiplying the impact of public capital .

The multiplication effect is significant: every RM1 from government generates RM4.13 from private investors on average. Through P2P platforms specifically, the recycling rate exceeds 10x, demonstrating sustainable capital efficiency.

💡 BURSA MALAYSIA MOVES TOWARD DIGITAL CURRENCY ETF LISTINGS

Public Consultation Opens Path for Regulated Crypto Exposure

Bursa Malaysia moved a step closer to digital currency ETF listings after launching a public consultation on March 13 regarding proposed rule changes that would facilitate the listing and trading of these products on the local bourse (Tracxn) .

The move follows the Securities Commission Malaysia's revised Guidelines on Exchange-Traded Funds, issued on March 2, 2026, which now permit digital currency ETFs under an enhanced regulatory framework (Tracxn) .

What Digital Currency ETFs Enable

Digital currency ETFs are designed to give investors regulated and transparent exposure to digital currencies through an established capital market product, rather than direct holdings of underlying assets. This matters for several reasons:

• Regulated Access: Investors access crypto exposure through regulated Bursa Malaysia products with established custody, trading, and settlement frameworks, rather than offshore exchanges or self-custody wallets.

• Institutional Participation: Malaysian institutional investors (pension funds, asset managers, insurance companies) often face internal policies prohibiting direct cryptocurrency holdings. ETF structures enable regulated exposure within existing compliance frameworks.

• Tax Clarity: ETF holdings provide clearer tax treatment compared to direct cryptocurrency holdings, where tax implications remain ambiguous for many investors.

• Transparency Requirements: Under proposed amendments, issuers must disclose specific material information in immediate announcements and annual reports, with enhanced disclosure of key risks associated with digital currency ETFs in mandatory risk disclosure statements investors must sign before investing.

Capital Market Masterplan 2026-2030 Alignment

Bursa Malaysia said the changes are part of efforts to expand and diversify the range of ETF products available to investors, in line with the Capital Market Masterplan 2026 to 2030, which seeks to broaden access to investment opportunities beyond traditional asset classes and support the continued development of Malaysia's capital market.

Malaysia's capital market reached RM4.3 trillion in 2025, with growing maturity in the digital asset segment including registration of the fifth and sixth digital asset exchanges and three digital asset custodians.

Public feedback on the proposed amendments is open until April 10, 2026.

📊 ECOSYSTEM ANALYSIS

The MSME Capital Stack Maturation

This week's MyCIF announcements, Silver Economy Scheme, VC/PE profit-sharing, RM50 million allocation, Food Security Scheme expansion, reveal Malaysia's sophisticated approach to MSME capital access across the risk/return spectrum.

The Capital Stack Layers:

Layer 1: Government Guarantees and Concessional Loans (lowest risk)

• RM50 billion in loan guarantees (Budget 2026)

• RM2.5 billion to TEKUN and Bank Simpanan Nasional for microfinancing

• Traditional banks with government backing

Layer 2: Co-Investment Mechanisms (moderate risk, catalytic capital)

• MyCIF: RM1.5 billion co-invested, RM7.7 billion total mobilized

• Strategic Co-Investment Fund (SCIF): RM200 million for supply chain strengthening

• 1:2 to 1:4 leverage ratios depending on sector and scheme

Layer 3: Equity Crowdfunding and P2P (higher risk, growth capital)

• 30 authorized platforms facilitating RM11.9 billion since introduction

• 20,000+ MSMEs benefited

• Retail and institutional participation enabled

Layer 4: VC/PE Institutional Capital (highest risk, scale capital)

• Now connected to retail capital through MyCIF profit-sharing

• Gobi Partners and OSK Ventures International bringing deals to ECF

• Institutional due diligence + retail co-investment hybrid model

This layered approach addresses the complete MSME lifecycle: microfinance for micro-enterprises, P2P for growth-stage working capital, equity crowdfunding for expansion, VC/PE for scale. The MyCIF innovation is connecting these layers rather than operating them in silos.

Digital Asset Market Maturation

Bursa Malaysia's digital currency ETF consultation, following SC's March 2 guideline revisions, signals regulatory comfort with crypto exposure, but only through heavily regulated structures with mandatory risk disclosures.

The pattern: Malaysia isn't banning crypto or leaving it unregulated. It's building regulated on-ramps (digital asset exchanges, custodians, ETFs) while maintaining strict investor protection (risk disclosures, enhanced transparency, custody requirements).

This positions Malaysia favorably versus regional peers: more progressive than markets with outright bans, more structured than markets with light-touch regulation.

📌 QUICK BITES

• MyCIF expansion: RM50M total allocation (RM30M budget + RM20M additional) for 2026

• Silver Economy Scheme: Care-tech, specialized healthcare, senior living focus for ageing population

• VC/PE profit-sharing: 50% profit split incentivizes institutional deals on ECF platforms; Gobi Partners and OSK Ventures committed

• MyCIF track record: RM1.5B co-invested, RM7.7B total mobilized, 11,500+ MSMEs supported since 2019

• Capital recycling: Government's RM290M grant recycled 5.2x; P2P platforms exceed 10x recycling rate

• Digital currency ETFs: Bursa consultation launched March 13, public feedback until April 10

• SC guidelines revised: March 2 revisions permit digital currency ETFs under enhanced framework

• Food Security Scheme: Expanded to include agri-tech startups

🎯 THE BOTTOM LINE

As March closes, Malaysia's capital market infrastructure demonstrates increasing sophistication in connecting public capital, institutional investors, and retail participation across the MSME funding spectrum.

MyCIF's March 16 announcements, RM50 million allocation, Silver Economy Scheme, VC/PE Profit-Sharing, aren't isolated initiatives. They're strategic pieces of an integrated capital ecosystem designed to maximize every government ringgit's catalytic impact. The RM290 million government grant recycled 5.2 times (over 10x via P2P) demonstrates sustainable capital efficiency rather than one-time grant distribution.

The Silver Economy Scheme addresses Malaysia's demographic reality: crossing into "aged society" status by 2030 creates massive market opportunities in care-tech, specialized healthcare, and senior living. By deploying catalytic capital (1:2 co-investment ratio) now, Malaysia positions domestic startups to capture this market before international competitors dominate.

The VC/PE profit-sharing mechanism solves a critical gap: institutional-grade deals rarely appear on retail-accessible platforms. By sharing 50% of exit profits with lead investors, MyCIF incentivizes Gobi Partners and OSK Ventures International to bring curated deals to equity crowdfunding platforms. Retail investors access institutional due diligence and deal quality. VCs/PEs access additional capital and co-investment partners. MSMEs access faster deployment from diversified sources.

Bursa Malaysia's digital currency ETF consultation, following SC's March 2 guideline revisions, signals regulatory maturity: not banning crypto, not leaving it unregulated, but building structured on-ramps with investor protection. The mandatory risk disclosure statements, enhanced transparency requirements, and established custody frameworks create regulated exposure pathways for institutional and retail investors unable to participate via direct holdings.

For Malaysian founders, this week's developments clarify the capital access pathway:

Microfinance Stage: TEKUN and Bank Simpanan Nasional (RM2.5 billion allocation)

Growth Stage: P2P financing (30 authorized platforms, RM11.9 billion facilitated) with MyCIF 1:4 co-investment

Expansion Stage: Equity crowdfunding with sector-specific schemes (Silver Economy 1:2, Food Security 1:2, General MSME 1:4)

Scale Stage: VC/PE capital now accessible via profit-sharing mechanism on ECF platforms

The question for every MSME founder: Which capital layer matches your current stage, and are you structured to access it?

The infrastructure exists. The capital is allocated. The schemes are live.

Execution determines outcomes.

Startup Pulse is your curated weekly digest of the latest developments in Malaysia and Southeast Asia's startup ecosystem. Stay informed, stay ahead.

🌙 SELAMAT HARI RAYA AIDILFITRI

To all our readers celebrating, Selamat Hari Raya Aidilfitri! Maaf Zahir dan Batin.

As we celebrate this joyous occasion with family and loved ones, we're also witnessing Malaysia's startup ecosystem reaching new heights of recognition and maturity. This week brought validation of Malaysian fintech excellence on the global stage, a fitting celebration of innovation alongside our cultural festivities.

HEADLINE NEWS

Two Malaysian Fintechs Rank Among Asia-Pacific's Fastest-Growing: PolicyStreet at 1311% and CapBay on FT List

PolicyStreet makes it into the list as one of the fastest-growing Malaysian fintechs with a 1311+% in absolute growth rate, and is accompanied by CapBay, according to the Financial Times-Statista High-Growth Companies Asia-Pacific 2026 list based on revenue growth between 2021 and 2024 .

PolicyStreet is a digital insurance platform that compares prices across insurers, aiming to provide personalised coverage for every life stage, with its group of companies operating across Southeast Asia and Australia, working with 40+ life, general and takaful providers globally to offer a wide range of products and services .

CapBay is a supply chain finance and P2P platform that helps SMEs with financing solutions, deploying its proprietary credit-decisioning model, enabling businesses of every size to obtain financing, while banks and investors are able to participate in financing deals .

Asia-Pacific's Fastest-Growing Fintech Landscape

Singapore leads the fintech pack with 12 entrants, followed by India with 11, underscoring both markets' reputations as regional fintech powerhouses, with standout performers including Singapore's Aspire (1772%) and Storepay (1722%), Indonesia's DurianPay (1626%), and Malaysia's PolicyStreet (1311%) .

The Financial Times recognition validates Malaysia's fintech maturity, not just in absolute funding raised or unicorn count, but in sustainable revenue growth. PolicyStreet's 1311% growth and CapBay's inclusion demonstrate that Malaysian fintechs can achieve hypergrowth metrics comparable to Singapore and Indonesian peers, despite Malaysia's smaller absolute market size.

Both companies exemplify strategic positioning in underserved niches: PolicyStreet in insurance comparison/distribution (historically opaque market), CapBay in SME supply chain finance (chronically underfinanced segment). This niche-focused approach enables rapid growth without direct head-to-head competition against well-capitalized incumbents.

🇲🇾 CARSOME RAISES OVER $30 MILLION IN STRATEGIC ROUND

Southeast Asia's Integrated Car Marketplace Secures Growth Capital Following Profitability Achievement

Southeast Asia's integrated car marketplace CARSOME raised over $30 million in a strategic round involving Hong Kong Investment Corporation, Gobi Partners, and Asia Partners, with the funding supporting profitable growth across the region following a strong FY2025 performance.

CARSOME built an e-commerce platform to make buying and selling used cars more efficient and trustworthy, handling everything from vehicle inspections to ownership transfers through an end-to-end service that creates a trusted marketplace. The company operates across Malaysia, Indonesia, Thailand, and Singapore.

The Profitability Milestone

The strategic round follows CARSOME's achievement of profitability in FY2025, a critical milestone in Southeast Asia's current funding environment where investors demand clear paths to sustainable economics rather than growth-at-all-costs narratives. The Hong Kong Investment Corporation's participation signals institutional validation of CARSOME's business model and regional expansion strategy.

CARSOME's success demonstrates that capital-intensive marketplace models can achieve profitability in Southeast Asian markets through operational discipline, trust infrastructure (inspections, warranties, ownership transfers), and cross-border scale. The company's presence across four markets creates network effects and operational leverage unavailable to single-market competitors.

📊 SINGAPORE MAINTAINS DOMINANCE: $2.22 BILLION RAISED IN Q1 2026

Regional Capital Concentration Intensifies Despite Global Funding Recovery

In the year 2026, till March 2026, $2.22B has been raised in 29 equity funding rounds across Singapore, compared to $2.21B raised across 76 rounds in Singapore during the same period last year, representing a 0.48% rise in funding but a 62% decline in deal count.

The data reveals a critical shift: similar total capital deployed ($2.22B vs $2.21B) but dramatically fewer deals (29 vs 76 rounds). This concentration indicates larger average deal sizes and continued late-stage focus, $76.6 million average per deal in Q1 2026 versus $29.1 million average in Q1 2025.

Singapore captured approximately 92% of Southeast Asia's total startup funding in H1 2025 and 88% of fintech funding, with the city-state's ecosystem value reaching $144 billion with sustained venture inflows, and in January 2026, Singapore startups raised $2.11 billion across 19 deals (96.6% of Southeast Asia's monthly total).

The Exit Bottleneck Persists

In the year 2026, till March 2026, 12 acquisitions happened in Singapore compared to 78 acquisitions in all of 2025, while till February 2026, 3 IPOs happened in Singapore compared to 21 IPOs in all of 2025.

The exit crisis continues constraining ecosystem growth: 12 acquisitions through March 2026 versus 78 for all of 2025 suggests similar annual run rate (approximately 48-50 acquisitions projected for full-year 2026). IPO activity remains muted with only 3 through February 2026 versus 21 for all of 2025.

💡 ECOSYSTEM ANALYSIS

Malaysian Fintech Excellence: Niche Dominance Over Market Size

This week's recognition of PolicyStreet (1311% growth) and CapBay alongside CARSOME's $30M strategic round illustrates a strategic pattern in Malaysian startup success: niche dominance compensates for smaller total addressable market.

PolicyStreet's Approach:

• Insurance comparison/distribution (opaque, broker-dominated market)

• Takaful and conventional coverage (cultural localization)

• Regional expansion (SEA + Australia) from Malaysia base

• 40+ provider partnerships create comprehensive marketplace

• 1311% revenue growth 2021-2024

CapBay's Approach:

• SME supply chain finance (chronically underfinanced segment)

• Proprietary credit-decisioning model (technological moat)

• P2P platform (alternative to traditional bank financing)

• Invoice financing unlocks working capital for businesses

• FT recognition validates business model sustainability

CARSOME's Approach:

• Trust infrastructure in fragmented used car market

• End-to-end service (inspections, transfers, warranties)

• Four-market presence (MY, ID, TH, SG)

• Profitability achieved before raising growth capital

• Institutional backing (Hong Kong Investment Corporation)

The common thread: these companies didn't compete head-to-head with well-capitalized Singapore or Indonesian giants in saturated categories. They identified underserved niches, built defensible positions through technology or trust infrastructure, achieved profitability or hypergrowth metrics, then expanded regionally from Malaysian base.

Contrast with Singapore's Capital Concentration

Singapore's $2.22B across 29 deals ($76.6M average) versus Malaysia's niche winners (PolicyStreet, CapBay, CARSOME) reveals two viable Southeast Asian startup strategies:

Singapore Model: Raise massive rounds ($50M+), compete in large categories (fintech infrastructure, B2B SaaS, logistics tech), leverage Singapore's capital access and regulatory clarity, aim for regional or global scale from day one.

Malaysia Model: Build in underserved niches, achieve profitability or hypergrowth on efficient capital, expand regionally after proving unit economics, leverage lower costs and cultural/linguistic diversity, raise growth capital after demonstrating metrics.

Neither is superior, they're complementary approaches to different market realities. Malaysian founders with limited early-stage capital access build profitability-first businesses. Singapore founders with abundant capital optimize for speed and scale.

📌 QUICK BITES

• FT recognition: PolicyStreet (1311% growth) and CapBay rank among APAC's fastest-growing fintechs

• CARSOME funding: $30M+ strategic round from Hong Kong Investment Corporation, Gobi Partners, Asia Partners

• Singapore Q1 2026: $2.22B raised across 29 deals (vs $2.21B across 76 deals in Q1 2025)

• Deal concentration: Singapore average deal size $76.6M (Q1 2026) vs $29.1M (Q1 2025)

• Exit crisis continues: 12 M&A through March 2026 vs 78 full-year 2025; 3 IPOs through Feb vs 21 full-year 2025

• Singapore dominance: Captured 92% of SEA H1 2025 funding, 96.6% of January 2026 total

• APAC fintech leaders: Singapore's Aspire (1772%), Storepay (1722%), Indonesia's DurianPay (1626%)

🎯 THE BOTTOM LINE

As we celebrate Hari Raya Aidilfitri, Malaysia's startup ecosystem offers reasons for celebration beyond cultural festivities. The Financial Times recognition of PolicyStreet (1311% growth) and CapBay among Asia-Pacific's fastest-growing fintechs validates Malaysian innovation excellence on the global stage.

These aren't capital-intensive blitzscaling plays. They're strategic niche dominance: PolicyStreet transformed opaque insurance distribution through comparison platforms and takaful/conventional coverage. CapBay addressed chronic SME supply chain finance gaps through proprietary credit models and P2P infrastructure. Both achieved hypergrowth metrics comparable to Singapore and Indonesian peers despite Malaysia's smaller absolute market size.

CARSOME's $30M+ strategic round, following FY2025 profitability achievement, demonstrates the "prove-then-scale" approach succeeding in Malaysia's capital-constrained environment. Hong Kong Investment Corporation's participation signals institutional validation of sustainable business models over growth narratives.

The regional context reinforces strategic imperatives. Singapore raised $2.22B across only 29 deals in Q1 2026 (average $76.6M), capital concentrating in fewer, larger late-stage bets. Exit crisis persists: 12 acquisitions through March vs 78 full-year 2025; 3 IPOs through February vs 21 full-year 2025.

For Malaysian founders, this week illustrates three strategic paths:

Niche Dominance Over Market Size: PolicyStreet and CapBay didn't compete in saturated categories. They identified underserved segments (insurance comparison, SME supply chain finance), built defensible positions, achieved hypergrowth, then expanded regionally. Malaysian market size limitations force strategic niche focus, which creates defensibility unavailable in broader categories.

Profitability Before Scale Capital: CARSOME achieved FY2025 profitability before raising $30M growth capital. This sequencing, prove unit economics, then raise for expansion, aligns with investor demands in current environment and Malaysian capital realities. Build sustainable first, blitzscale second.

Regional Expansion as Growth Vector: All three companies (PolicyStreet SEA+Australia, CapBay regional, CARSOME four markets) expanded beyond Malaysia after proving domestic models. This isn't "Malaysia-first, maybe regional later", it's "prove in Malaysia, scale across region systematically."

The question for every Malaysian founder celebrating Raya this week: Are you building for Malaysian market size limitations, or leveraging Malaysia as proving ground for regional niche dominance?

The evidence suggests the latter creates sustainable, high-growth businesses worthy of Financial Times recognition.

Selamat Hari Raya once again to all celebrating. May the festivities bring joy, and may Malaysia's innovation ecosystem continue flourishing.

Startup Pulse is your curated weekly digest of the latest developments in Malaysia and Southeast Asia's startup ecosystem. Stay informed, stay ahead.

HEADLINE NEWS

ShopBack Discontinues Pay Service in Malaysia on March 25

ShopBack has confirmed it will discontinue its Pay service in Malaysia from 25 March 2026, while continuing operations in its other markets . The decision marks a strategic retreat from Malaysia's increasingly competitive digital payments landscape, where the company faced headwinds against established e-wallets like Touch 'n Go eWallet, GrabPay, Boost, and five newly-launched digital banks.

ShopBack Pay, which operated as a Buy Now, Pay Later (BNPL) service embedded within the ShopBack cashback platform, allowed users to split purchases into interest-free installments across partner merchants. The closure comes as Malaysia's BNPL market faces regulatory scrutiny and market consolidation pressures.

Malaysia's BNPL Market Reaches RM4.9 Billion

Malaysia's BNPL balances reached RM4.9 billion at end-2025, with the Ministry of Finance saying exposure remains around 0.3 percent of total banking sector assets (Salesforce) . While the exposure level appears manageable from a systemic risk perspective, the absolute growth in BNPL balances has attracted regulatory attention.

The discontinuation reflects broader market dynamics: BNPL services face increasing competition from digital banks offering competitive interest rates (Ryt Bank's 4% p.a.), traditional credit cards with revised benefits, and regulatory frameworks that may tighten consumer credit standards. ShopBack's decision to exit suggests the company is refocusing resources on its core cashback and rewards business, where it maintains stronger market positioning.

Regional Context

ShopBack operates across eight markets in Asia-Pacific, including Singapore, Malaysia, Philippines, Thailand, Taiwan, Australia, South Korea, and Vietnam. The Malaysia-specific closure, rather than regional withdrawal, suggests market-specific challenges rather than broader business model issues. Singapore remains ShopBack's home market and strategic anchor.

For Malaysian consumers currently using ShopBack Pay, the company will provide transition guidance through March 25, including settlement of outstanding balances and alternative payment method recommendations.

🇲🇾 MALAYSIA DIGITAL BANK ECOSYSTEM EXPANDS INSURANCE OFFERINGS

Boost Bank Partners Great Eastern for In-App Insurance

Boost Bank is offering insurance in its app through a tie-up with Great Eastern General Insurance Malaysia (Salesforce) . The partnership enables Boost Bank customers to access insurance products directly within the banking app, eliminating the need for separate insurance applications or agent interactions.

The move follows a strategic pattern among Malaysia's five licensed digital banks: expand beyond core banking (savings, current accounts, debit cards) into adjacent financial services (insurance, wealth management, credit products) to increase customer lifetime value and platform stickiness.

AEON Bank Enables Zakat Contributions During Ramadan

AEON Bank has enabled its users to make their zakat contributions within its app during Ramadan (Salesforce) . The feature demonstrates cultural localization within digital banking, recognizing that for Muslim-majority Malaysia, zakat payment convenience creates meaningful customer value beyond Western-centric banking features.

The Digital Bank Differentiation Battle

With all five digital banks now operational (GXBank, Boost Bank, Ryt Bank, AEON Bank, KAF Digital Bank), the competitive battlefield has shifted from "who launches first" to "who builds the stickiest ecosystem." The strategies emerging:

• Ryt Bank: AI-powered banking (image payments, text commands) on ILMU LLM, 4% p.a. savings

• Boost Bank: Insurance integration, leveraging Axiata Group's telco ecosystem

• GXBank: Grab ecosystem integration, ride-hailing and food delivery touchpoints

• AEON Bank: Retail ecosystem integration, cultural localization (zakat payments)

• KAF Digital Bank: Islamic banking focus, shariah-compliant products

The pattern: differentiation through ecosystem integration rather than commoditized banking features. Those who master integration with daily-use platforms capture disproportionate market share.

📊 REGIONAL FUNDING REALITY CHECK

Southeast Asia's $5.4 Billion Year: Stabilization, Not Recovery

Southeast Asia's venture ecosystem closed 2025 with US$5.4 billion raised across 461 deals, with the market having stabilised rather than recovered, with tighter valuations, selective late-stage bets, and a persistent exit bottleneck keeping a full rebound out of reach heading into 2026 .

The annual deal count ranked among the lowest in more than six years, and the headline figure was rescued largely by a handful of outsized late-stage transactions rather than any broad-based revival, with the first half historically weak as equity investment dropped 20.7% year-on-year to US$1.85 billion across 229 transactions, both figures representing six-year lows.

The Exit Crisis Deepens

Exit activity slowed, with only 57 acquisitions recorded and 15 tech IPOs completed for the year, with Edgar Hardless, CEO of Singtel Innov8, stating the lack of exits was the single biggest drag on investor confidence, adding that "High valuations in the past few years have made it harder for startups to find local acquirers," and expecting caution to persist into the first half of 2026 .

The exit bottleneck creates a cascading problem: limited exits → investors can't return capital to LPs → LPs reduce venture allocations → less early-stage capital → fewer companies reach scale → even fewer exits. Breaking this cycle requires either (1) major M&A transactions from strategic acquirers, (2) IPO market revival, or (3) secondary transactions at realistic valuations.

None appear imminent in H1 2026.

💡 ECOSYSTEM ANALYSIS

The BNPL Shakeout and Digital Banking Consolidation

This week's developments, ShopBack Pay's Malaysia exit and digital banks expanding into insurance/zakat, reveal two converging trends in Malaysian fintech:

BNPL Market Rationalization:

The ShopBack Pay discontinuation follows a global pattern of BNPL consolidation. Once heralded as revolutionary credit innovation, BNPL now faces:

• Regulatory scrutiny (consumer debt concerns)

• Profitability challenges (thin margins, high customer acquisition costs)

• Competition from digital banks offering better rates

• Credit card companies revising reward structures to compete

Malaysia's RM4.9 billion BNPL balance represents significant market size, but Ministry of Finance's 0.3% systemic exposure comment signals regulatory comfort—for now. However, tightening credit standards or increased capital requirements could force further consolidation.

Digital Bank Ecosystem Expansion:

Boost Bank (insurance) and AEON Bank (zakat) demonstrate the post-launch phase: building comprehensive financial ecosystems rather than standalone banking apps.

The winners will be those who:

1. Embed into daily-use platforms (Grab for GXBank, retail for AEON)

2. Leverage parent company ecosystems (Axiata for Boost, YTL for Ryt)

3. Differentiate through technology (Ryt's AI) or culture (AEON's zakat)

4. Build switching costs through multi-product relationships

The losers will be standalone banking apps offering commoditized features without ecosystem integration or technological differentiation.

📌 QUICK BITES

• ShopBack Pay exits: Discontinues Malaysia operations March 25, continues in other markets

• Malaysia BNPL market: RM4.9 billion balance at end-2025, 0.3% of banking sector exposure

• Boost Bank insurance: Partnership with Great Eastern enables in-app insurance access

• AEON Bank zakat: Enables Islamic charitable contributions within banking app during Ramadan

• SEA funding 2025: $5.4B across 461 deals = six-year low, stabilization not recovery

• Exit crisis continues: Only 57 M&A and 15 IPOs in 2025; Edgar Hardless calls it "biggest drag on investor confidence"

🎯 THE BOTTOM LINE

As Malaysia's fintech landscape enters mid-March 2026, two strategic realities crystallize: market consolidation and ecosystem integration trump standalone product innovation.

ShopBack Pay's March 25 discontinuation in Malaysia, while continuing in other markets, signals BNPL rationalization. With Malaysia's BNPL balances reaching RM4.9 billion but regulatory comfort at 0.3% systemic exposure, the Ministry of Finance isn't panicking. However, standalone BNPL services face profitability challenges, regulatory scrutiny, and competition from digital banks offering superior rates (Ryt's 4% p.a. vs. BNPL's 0% short-term, high long-term costs).

Digital banks' ecosystem Expansion, Boost Bank adding insurance, AEON Bank enabling zakat payments, demonstrates the post-launch competitive battlefield. With all five licensed digital banks now operational, differentiation comes through ecosystem integration (Grab for GXBank, Axiata for Boost, retail for AEON, YTL AI for Ryt) and cultural localization (zakat payments, CNY features, multilingual support).

The regional funding context reinforces consolidation pressures. Southeast Asia closed 2025 at $5.4 billion (461 deals), lowest in six years. Exit crisis persists: only 57 acquisitions and 15 IPOs. Edgar Hardless (Singtel Innov8) identifies exits as the "single biggest drag on investor confidence," expecting caution through H1 2026.

For Malaysian fintech founders, this week's developments illustrate three strategic imperatives:

Standalone Products Face Extinction: ShopBack Pay's exit demonstrates that standalone payment/credit products without ecosystem integration struggle against platform-embedded alternatives. If you're building payments, lending, or insurance products, ask: what ecosystem are you embedded in?

Cultural Localization Creates Defensibility: AEON Bank's zakat feature costs minimal development but creates meaningful switching costs for Muslim customers. Ryt Bank's CNY campaigns and zodiac readings via AI similarly leverage cultural intelligence. Generic, Western-centric fintech products face disadvantages against culturally-attuned competitors.

Exit Strategy Matters More Than Ever: With only 57 M&A and 15 IPOs regionally in 2025, founders must plan realistic exits from day one. Strategic acquirer fit, secondary transaction readiness, or path to profitability enabling IPO all require years of groundwork. The "we'll figure out exits later" approach no longer works.

The question for every Malaysian fintech founder this week: Are you building a standalone product hoping for acquisition, or an ecosystem-integrated platform with defensible moats?

The evidence suggests the latter survives consolidation.

Startup Pulse is your curated weekly digest of the latest developments in Malaysia and Southeast Asia's startup ecosystem. Stay informed, stay ahead.

HEADLINE NEWS

Ryt Bank Becomes Malaysia's Most Downloaded App in February 2026

Ryt Bank has become the most downloaded app in Malaysia as of February 2026 across the Google Play Store and Apple App Store, backed by YTL Group and Sea Limited, debuting less than a year ago in August 2025 as Malaysia's first AI-powered digital Bank.

As of February 22, 2026, Ryt Bank sits at number one on the Apple App Store's Top Free iPhone apps chart in Malaysia, leading a diverse top ten list that includes MyDigital ID at number two, followed by eCOSS at number three, with MyKasih and Temu taking the fourth and fifth spots respectively, while CelcomDigi and MyNIISe rank sixth and seventh.

The rankings demonstrate Ryt Bank is competing not only with other finance apps, but also with government platforms, shopping apps, telecommunications services, entertainment platforms, and global technology products. Social media platform Threads ranked eighth, DramaBox ninth, and ChatGPT rounded out the top ten.

The AI-Powered Banking Proposition

Ryt Bank's in-app Ryt AI feature enables users to make payments by uploading images instead of entering account numbers and to send money through simple text commands, with customers able to check recent spending instantly, move funds seamlessly between accounts, and pay more than 20,000 JomPAY billers.

The bank recently announced that it extended its 4 percent p.a. savings rate until June 30, 2026. Customers earn interest daily with no lock-in or tiering structure, comprising a 3 percent base rate and a 1 percent bonus unlocked through Ryt Card spending or JomPAY bill payments.

Ryt Bank recently added Google Pay support for contactless debit card payments and introduced a Chinese language interface within the app to expand accessibility (Thailand Business News) .

Why This Matters

Ryt Bank's ascent to #1 most downloaded app, surpassing government platforms like MyDigital ID (#2) and established consumer apps like Temu (#5) and ChatGPT (#10), signals a significant shift in Malaysian consumer behavior. Within seven months of launch (August 2025 to February 2026), an AI-powered digital bank captured the top position in overall app downloads, not just within finance categories.

This validates Malaysia's digital banking licensing strategy announced in 2022 and executed through 2024-2025. All five licensed digital banks are now operational: GXBank, Boost Bank, Ryt Bank, AEON Bank, and KAF Digital Bank. Ryt Bank's rapid adoption suggests that AI-powered financial services, local language support (Bahasa Malaysia, English, Mandarin), and competitive interest rates (4% p.a.) resonate strongly with Malaysian consumers.

The achievement also reinforces YTL AI Labs' ILMU large language model development. Ryt AI operates on ILMU, Malaysia's homegrown LLM, demonstrating that sovereign AI development translates into consumer-facing applications with mass-market appeal.

🇲🇾 MYDIGITAL ID PARTNERSHIPS EXPAND: 15 BANKS AND FINTECHS SIGNED

10 Million Users Achieved, Targeting 17 Million by End-2026

MyDigital ID has signed agreements with 15 banks and fintech firms to strengthen digital identity checks across Malaysia's financial sector on February 12, with participating organizations including Maybank, CIMB Bank, Public Bank, RHB Bank, Hong Leong Bank, AmBank, Bank Islam, Boost Bank, KAF Digital Bank, RytBank, TNG Digital, ShopeePay, Atome, Kale Technology and FINEXUS.

My Digital ID Sdn Bhd aims to achieve 17 million MyDigital ID registered accounts from Malaysians by the end of 2026, as compared to 7.3 million accounts as at the end of last year, with deputy chief executive officer Azrin Aris stating the company expects to hit 13 million MyDigital ID accounts by the middle of this year.

"As of today, we have reached almost 10 million (accounts), and our target is a little further to reach 13 million (accounts). When more and more consumers have MyDigital ID accounts, we hope this can reduce cases of online fraud," Azrin told reporters after the MoU signing event on February 12.

The Fraud Crisis Driving Adoption

National Cyber Security Agency chief executive Megat Zuhairy Megat Tajuddin said the country recorded 5,159 e-financial fraud cases in 2025, compared to 1,812 cases in 2024, with cases resulting in RM458 million in financial losses in 2025, up from RM65 million in 2024, with an average monthly loss of RM38.2 million from online financial fraud.

"Identity has become a major risk, and as long as digital identity remains fragmented and unreliable, fraudsters will always find you," Megat Zuhairy stated.

Implementation Timeline

The government, through MyDigital ID Sdn Bhd (MyDID) and Bank Negara Malaysia (BNM), is implementing MyDigital ID integration with security-by-design, privacy-preserving measures, and auditable governance, with ten of the 18 banking institutions currently undergoing the integration process, while two banks have completed integration, and the Phase 2 Sandbox expected to conclude in March 2026.

MyDigital ID's e-verification technology will be tested and implemented within onboarding and transaction verification systems at participating institutions, with the initiative aiming to strengthen identity assurance and help reduce risks linked to impersonation, account takeover and other forms of digital fraud.

📊 ASIA STARTUP FUNDING LANDSCAPE SHIFTS TO "REALITY CHECK" MODE

AsiaStartupExpo Q1 2026 Reflects Disciplined Capital Environment

AsiaStartupExpo Q1 2026 scheduled for March 18 reflects a shift toward disciplined fundraising, as Asia's startup ecosystem enters a more disciplined capital environment where investor attention has become harder to secure and founders are under increasing pressure to articulate clearer market narratives, with applications open until March 8, 2026.

The session will begin with an investor panel titled "Fundraising Reality Check: What Investors Expect in 2026," addressing practical issues founders increasingly face during fundraising conversations including valuation expectations, how investors assess pitches across industries, and what signals typically lead to follow-up meetings after an initial pitch.

The investor panel assembled for the Q1 2026 edition reflects the increasingly international nature of startup capital in Asia, with participants including venture investors, angel investors, and ecosystem leaders operating across the United States, Southeast Asia, India, and Europe, spanning early-stage angels, venture capital firms, corporate venture arms, and multi-stage funds.

What Changed Since 2025

The framing of AsiaStartupExpo Q1 2026 as a "reality check" rather than celebration reflects the sobering capital environment documented across Southeast Asia in 2025: $5.4 billion raised (six-year low), Singapore capturing 91-95% of regional funding, exit crisis continuing (only 57 acquisitions and 15 IPOs), and seed-stage funding collapsing 50% while late-stage surged 140%.

Investors are asking sharper questions about execution, defensibility, and market timing. The virtual event's structure, four-minute pitch followed by investor dialogue designed to simulate real venture capital fundraising conversations, mirrors the increasingly transactional nature of early-stage capital deployment.

💡 ECOSYSTEM ANALYSIS

The Digital Identity and AI Banking Convergence

This week's Malaysian developments, Ryt Bank's #1 app ranking and MyDigital ID's 15-partner expansion, illustrate the convergence of digital identity infrastructure and AI-powered financial services.

Ryt Bank's Success Formula:

• AI-powered banking (Ryt AI on ILMU LLM)

• Multilingual support (Bahasa Malaysia, English, Mandarin)

• Competitive rates (4% p.a. savings, no lock-in)

• Payment innovation (image-based payments, text commands)

• Cultural localization (CNY Angpow campaigns, zodiac readings)

This isn't just "another digital bank." It's the first mass-market validation that Malaysia's sovereign AI development (ILMU) translates into consumer adoption. Within seven months, Ryt Bank surpassed government platforms (MyDigital ID), e-commerce apps (Temu), telecommunications services (CelcomDigi), and global AI products (ChatGPT) in downloads.

MyDigital ID's Infrastructure Play:

• 10 million users achieved (up from 1.8 million year prior)

• 17 million target by end-2026

• 15 banks and fintechs signed (Feb 12)

• Phase 2 Sandbox concludes March 2026

• Addressing RM458 million fraud losses (2025)

The timing of Ryt Bank's success and MyDigital ID's expansion is strategic. As digital financial fraud surged 184% in cases (1,812 to 5,159) and 604% in losses (RM65M to RM458M) in 2025, consumers seek trusted digital identity and secure banking infrastructure.

Ryt Bank benefits from Bank Negara Malaysia licensing and PIDM protection (RM250,000 per depositor). MyDigital ID benefits from National Registration Department integration. Both represent government-sanctioned, infrastructure-grade digital services rather than speculative fintech startups.

📌 QUICK BITES

• Ryt Bank #1: Most downloaded app in Malaysia (February 2026), surpassing MyDigital ID, Temu, ChatGPT

• MyDigital ID milestone: 10 million users achieved, targeting 17 million by end-2026

• 15 partners signed: Maybank, CIMB, Public Bank, RHB, AmBank, 5 digital banks, 5 fintechs (Feb 12)

• Fraud crisis: 5,159 e-financial fraud cases (2025), RM458M losses, up 604% from 2024

• Phase 2 Sandbox: 18 banks testing MyDigital ID integration, concludes March 2026

• AsiaStartupExpo Q1: March 18 virtual event, applications close March 8, "Reality Check" theme

• Ryt Bank features: 4% p.a. savings (extended to June 30), Google Pay support, Mandarin interface added

🎯 THE BOTTOM LINE

As February closed and March opened, Malaysia demonstrated that sovereign technology development translates into mass-market consumer adoption.

Ryt Bank's ascent to #1 most downloaded app in Malaysia within seven months of launch validates the digital banking licensing strategy and sovereign AI thesis. Built on YTL AI Labs' ILMU large language model, Ryt Bank's AI-powered banking features, image-based payments, text command transfers, multilingual support, resonated with Malaysian consumers strongly enough to surpass government platforms (MyDigital ID #2), e-commerce apps (Temu #5), and global AI products (ChatGPT #10).

The 4% p.a. savings rate with daily interest and no lock-in, combined with cultural localization (CNY Angpow campaigns, zodiac readings via Ryt AI), demonstrates that competitive financial products paired with technical innovation and cultural intelligence create differentiation in crowded markets.

MyDigital ID's February 12 signing of 15 banks and fintechs, while achieving 10 million users (up from 1.8 million year prior), addresses the urgent RM458 million fraud crisis that saw cases surge 184% in 2025. With Phase 2 Sandbox concluding March 2026 and 17 million user target by year-end, MyDigital ID positions as foundational digital identity infrastructure for Malaysia's financial sector.

The regional context reinforces Malaysia's strategic positioning. AsiaStartupExpo Q1 2026's "Fundraising Reality Check" theme reflects the sobering capital environment: investors demanding execution over promises, late-stage concentration over seed-stage experimentation, and defensible business models over growth narratives.

For Malaysian founders, this week's developments illustrate three strategic imperatives:

Sovereign Technology as Competitive Advantage: Ryt Bank's success validates building on Malaysian AI infrastructure (ILUM) rather than relying solely on foreign models. Cultural localization and local language support create defensibility that international competitors struggle to replicate.

Infrastructure-Grade Over Consumer Apps: Both Ryt Bank (Bank Negara licensed, PIDM protected) and MyDigital ID (NRD integrated, BNM regulated) succeed as infrastructure-grade services with government backing, not speculative fintech startups. This positioning attracts consumer trust amid fraud crises.

Execution Over Announcements: Ryt Bank delivered AI-powered banking features that work (image payments, text commands, multilingual support) within seven months, not multi-year roadmaps. MyDigital ID achieved 10 million users through partnerships and fraud-crisis relevance, not just marketing campaigns.

The question for every Malaysian founder this week: Are you building differentiated technology on Malaysian infrastructure, or replicating international models hoping for local adoption?

The evidence suggests the former wins.

Startup Pulse is your curated weekly digest of the latest developments in Malaysia and Southeast Asia's startup ecosystem. Stay informed, stay ahead.

HEADLINE NEWS

Zetrix AI Secures US$40 Million IFC Investment to Scale Digital Infrastructure Across ASEAN

Malaysia's Zetrix AI has raised US$40 million (RM155.6 million) in equity from the International Finance Corporation to scale digital identity and blockchain infrastructure across ASEAN, announced on February 27 .

"This investment reflects IFC's commitment to advancing Malaysia's digital transformation agenda, in line with the Thirteenth Malaysia Plan, 2026-2030," said Judith Green, World Bank Group Country Manager for Malaysia, adding that the development of Digital Public Infrastructure services is essential to improving public service delivery, strengthening economic competitiveness, and ensuring that growth is inclusive and sustainable .

Zetrix AI, formerly known as MY E.G. Services, operates digital identity verification, blockchain-based customs clearance processing, large language models, and stablecoin infrastructure. "From digital IDs to digitised customs clearance processing to large language models and stablecoins, the real-world cross-border use cases in blockchain and AI that we are deploying are aimed at catalysing disruptive transformation across ASEAN and enabling deeper socio-economic integration in the region. With the participation and market access from IFC, we will accelerate our global expansion plans," the company stated .

Why This Matters

The IFC investment represents more than capital it's institutional validation of Malaysia's digital public infrastructure approach. Zetrix AI's focus on "real-world cross-border use cases" addresses a critical ASEAN challenge: fragmented digital infrastructure across member states creates friction for cross-border commerce, identity verification, and payments.

The company's evolution from MY E.G. Services (primarily known for government digital services like road tax renewal) to Zetrix AI (blockchain and AI infrastructure provider) illustrates Malaysia's broader ecosystem trajectory: from digital service delivery to foundational technology infrastructure building.

With IFC backing and alignment with the Thirteenth Malaysia Plan (2026-2030), Zetrix AI positions Malaysia as a potential ASEAN digital infrastructure anchor—not just a consumer of foreign technologies, but a builder and exporter of regional digital public goods.

🇲🇾 MALAYSIA ECONOMY MINISTER: "2026 IS ABOUT EXECUTION"

Government Prioritizes Delivery Over New Policies Ahead of 2028 Elections

Malaysia sees 2026 as a year of "execution" and "discipline," economy minister YB Akmal Nasrullah Mohd Nasir told Fortune ahead of the Forum Ekonomi Malaysia summit on February 5, as the Anwar Ibrahim administration tries to rack up policy achievements under the 13th Malaysia Plan (RMK13) ahead of elections that could come as early as February 2028) .

"2026 is going to be about how we deliver RMK13," Akmal told Fortune. "It's a higher chance of success compared to trying to come up with a new policy direction. Two years is quite a short runway" .

Malaysia's Strong Economic Foundation

Malaysia is entering 2026 on a solid footing with the country's economy growing by 4.9% in 2025 following 5.1% growth the previous year, unemployment falling to 2.9% (the lowest rate in a decade), and the Malaysian ringgit at its strongest level in five years .

Malaysia's strength in semiconductor and electrical equipment manufacturing has helped the country's exports amid a global AI boom, with the country's trade hitting a record high last year, surpassing 3 trillion Malaysian ringgit ($780 billion).

Strategic Neutral Positioning

Malaysian officials hope the country can serve as neutral territory in a more geopolitically complex world, with YB Tuan Liew Chin Tong, Malaysia's deputy minister of finance, stating at the Forum Ekonomi Malaysia on February 5: "We are not China, not the U.S…and that gives us a strategic position, both in terms of geopolitical positioning, as well as supply chain positioning" (Rest of World) .

"Malaysia is open for investment, because we believe we have a competitive advantage," Akmal said. "This is the best time to consider Malaysia as your [investment] destination…given our approach of being friendly to everyone and focusing on economic prosperity".

💡 "MADE BY MALAYSIA" SEMICONDUCTOR PUSH

Talent Development Becomes Critical Bottleneck

A central plank of Anwar's plan for the next five years is the growth of new "Made by Malaysia" products, particularly in high-value sectors like semiconductors (Rest of World) . Last year, Malaysia signed a 10-year licensing deal with Arm Holdings, granting access to chip design blueprints and setting up the company's first Southeast Asian office in Kuala Lumpur. The agreement includes training programs for 10,000 local engineers.

Akmal said the country needed to "upgrade" its talent as it strives to climb up the value chain, a concern echoed by business leaders, with Ooi Ching Liang, general manager of business development at SkyeChip, a Malaysian chip design startup, stating at the Forum Ekonomi Malaysia on February 5: "Capital can be injected by a government or investor, but talent is the one [thing] we need to build" (Rest of World) .

While Malaysia is training local workers, it can take "many iterations of product cycles to pick up experience," he added, forcing companies like SkyeChip to look overseas for talent .

Budget 2026 Semiconductor Allocations

Budget 2026 demonstrates the government's decision to channel RM550 million through Khazanah and KWAP into semiconductor ecosystem partnerships, alongside RM500 million in BPMB loans to support high-value R&D and design activities, with the creation of SemiconStart, a new incubator programme for semiconductor startups .

Dato' Seri Wong Siew Hai, President of MSIA (Malaysia Semiconductor Industry Association), stated: "Budget 2026 demonstrates a clear intent to strengthen Malaysia's semiconductor foundation, but what matters now is execution – turning allocations into action, ensuring that local players can move up the value chain, and making 'Made by Malaysia' a global mark of trust and innovation" .

📊 REGIONAL FUNDING CONTEXT

Southeast Asia Closes 2025 at $5.4 Billion: Stabilization, Not Recovery

Southeast Asia's venture ecosystem closed 2025 with US$5.4 billion raised across 461 deals, according to the Southeast Asia Startup Funding Report: Full Year 2025, with Singapore capturing 91% of all regional capital, cementing its position as the undisputed funding hub while Indonesia, Vietnam, and the Philippines continued to lose ground.

The market has stabilised rather than recovered, with tighter valuations, selective late-stage bets, and a persistent exit bottleneck keeping a full rebound out of reach heading into 2026, with the annual deal count ranking among the lowest in more than six years, and the headline figure rescued largely by a handful of outsized late-stage transactions rather than any broad-based revival .

The Exit Problem Persists

Exit activity slowed, with only 57 acquisitions recorded and 15 tech IPOs completed for the year, with Edgar Hardless, CEO of Singtel Innov8, stating the lack of exits was the single biggest drag on investor confidence, adding that "High valuations in the past few years have made it harder for startups to find local acquirers," and expects caution to persist into the first half of 2026 .

Sector Performance

Fintech led by deal count with 111 transactions worth US1.3 billion, but delivered one of its weakest annual results in six years, while healthtech rebounded strongly with 35 deals totalling US393 million, lifted by UltraGreen.ai's US$188 million funding round, and the region minted four new unicorns in 2025, up sharply from one in 2024, with notable additions including Malaysian group Ashita, Singapore-based payments firm Thunes, digital asset bank Sygnum, and UltraGreen.ai .

💡 ECOSYSTEM ANALYSIS

The "Execution Year" Thesis

This week's developments Zetrix AI's US$40 million IFC investment and Economy Minister Akmal's "execution, not new policies" mandate reveal Malaysia's strategic maturity in ecosystem building.

The Zetrix AI Approach:

• Digital identity verification (foundational layer)

• Blockchain-based customs clearance (cross-border infrastructure)

• Large language models (AI capabilities)

• Stablecoin infrastructure (digital currency rails)

This isn't about building "yet another fintech app." It's about constructing the digital public infrastructure that enables hundreds of fintech apps, government services, and cross-border transactions to function efficiently across ASEAN.

The Government's 2026 Approach:

Rather than announcing flashy new initiatives ahead of 2028 elections, the administration is focusing on delivering RMK13 commitments already made. This includes:

• RM550 million (Khazanah/KWAP) → semiconductor ecosystem partnerships

• RM500 million (BPMB loans) → high-value R&D and design

• SemiconStart incubator → semiconductor startup development

• Arm Holdings 10-year deal → training 10,000 engineers

• "Made by Malaysia" certification → IP commercialization

The Talent Bottleneck Reality

SkyeChip's Ooi Ching Liang's comment "Capital can be injected by a government or investor, but talent is the one [thing] we need to build"—identifies the critical constraint. Malaysia has capital (RM1.05 billion allocated), has policies (National Semiconductor Strategy), has infrastructure (Arm licensing deal). What takes time: developing world-class engineering talent through "many iterations of product cycles."

This is why the administration's focus on execution over new announcements matters. Talent development requires sustained commitment over years, not quarterly policy pivots.

📌 QUICK BITES

• Zetrix AI: US$40M from IFC for ASEAN digital infrastructure (blockchain, AI, digital ID, stablecoins) - announced Feb 27

• Malaysia 2026 focus: "Execution, not new policies" says Economy Minister Akmal (Feb 5)

• Economic strength: 4.9% GDP growth (2025), 2.9% unemployment (lowest in decade), ringgit at 5-year high

• Semiconductor budget: RM550M (Khazanah/KWAP) + RM500M (BPMB) + SemiconStart incubator

• SEA funding 2025: $5.4B total, 91% concentrated in Singapore; 461 deals = lowest in 6+ years

• Four new unicorns: Malaysian Ashita, Thunes (SG), Sygnum, UltraGreen.ai

• Exit crisis continues: Only 57 acquisitions and 15 IPOs in 2025

• Fintech weakness: 111 deals worth $1.3B = weakest in 6 years

🎯 THE BOTTOM LINE

As February closed and March opened, Malaysia's strategic direction crystallized around a single word: execution.

• Zetrix AI's US$40 million IFC investment on February 27 validates Malaysia's digital public infrastructure thesis. The company isn't building consumer apps it's constructing the cross-border rails (digital identity, blockchain customs, LLMs, stablecoins) that enable regional digital economy integration. With World Bank Group backing aligned to the Thirteenth Malaysia Plan, this positions Malaysia as ASEAN infrastructure provider, not just market participant.

• Economy Minister Akmal's February 5 declaration"2026 is about execution, not new policies"signals pragmatic governance ahead of 2028 elections. Rather than announcement theater, the administration focuses on delivering commitments already made: RM1.05 billion in semiconductor funding, Arm Holdings' 10,000-engineer training program, SemiconStart incubator, and "Made by Malaysia" commercialization pathways.

• The constraint isn't capital or policy it's talent. SkyeChip's observation that talent development requires "many iterations of product cycles" identifies why execution matters more than announcements. Building world-class semiconductor engineering capacity takes sustained commitment over years, not quarterly pivots chasing headlines.

• The regional funding context reinforces execution focus. Southeast Asia closed 2025 at $5.4 billion (lowest in 6+ years), with Singapore capturing 91% of capital. Exit crisis persists: only 57 acquisitions and 15 IPOs. Edgar Hardless (Singtel Innov8) calls exits "the single biggest drag on investor confidence." Fintech recorded its weakest year despite 111 deals.

• Yet Malaysia produced Ashita, one of 2025's four regional unicorns. Malaysia's economy grew 4.9% in 2025 with 2.9% unemployment (decade-low) and ringgit at 5-year high. Trade hit record RM3 trillion. The positioning as geopolitical neutral ("We are not China, not the U.S.") attracts semiconductor investment amid US-China tensions.

For Malaysian founders, the strategic implications are clear:

• Infrastructure Over Applications: Zetrix AI builds ASEAN-wide rails, not another app. Consider infrastructure plays digital identity, payments rails, blockchain customs not just consumer applications competing in saturated markets.

• Execution Over Announcements: Government's 2026 focus on delivery over new policies signals maturity. Founders should similarly focus on executing existing plans rather than pivoting quarterly to chase trends.

• Talent as Long-Term Asset: Semiconductor sector's talent bottleneck despite RM1.05B funding illustrates that money can't buy experience instantly. Invest in team development today for competitive advantages years from now.

• Neutral Positioning Advantage: Malaysia's "friendly to everyone" geopolitical stance attracts investment fleeing US-China tensions. This advantage compounds if founders build for regional/global markets, not just domestic.

The question for every Malaysian founder this week: Are you executing on existing strategies, or announcing new pivots quarterly?

The capital and institutional backing favor those who deliver, not those who promise.

Startup Pulse is your curated weekly digest of the latest developments in Malaysia and Southeast Asia's startup ecosystem. Stay informed, stay ahead.

HEADLINE NEWS

Malaysian Entrepreneur Sells AI.com Domain for Record RM276 Million

Malaysian entrepreneur Arsyan Ismail has sold the domain AI.com for US70 million, approximately RM276 million, in a transaction paid entirely in cryptocurrency, representing the highest disclosed price for a domain name to date, surpassing the US49.7 million paid for CarInsurance.com in 2010 .

Arsyan originally purchased the web address in 1993 at the age of 10 for just $100, using his mother's credit card simply because the letters matched his initials (500) . What started as a childhood coincidence became a masterclass in digital asset foresight, as the domain's value soared alongside the global AI revolution.

Kris Marszalek, the CEO of Crypto.com, acquired the domain in April 2025 through broker Larry Fischer and plans to launch a consumer artificial intelligence platform under the AI.com brand, which was unveiled during a Super Bowl LX commercial on February 8 (Tracxn) . The new AI.com is a platform for "agentic" AI, which, unlike traditional chatbots that only answer questions, can take action like managing work schedules, sending messages, completing complex tasks across different apps, and even trading stocks on behalf of the user.

AI.com's 30-second fourth-quarter spot generated up to 9.1x more engagement than the average Super Bowl LX ad, enabling it to top all other brands in EDO's annual TV outcomes ranking of all Super Bowl ads .

The Malaysian Digital Asset Success Story

Beyond AI.com, Arsyan is known for owning rare digital assets including [email protected] (the shortest email in the world), g.gg (the shortest URL in the world), aaa.eth (a three-letter Ethereum Name Service address), and vanity phone numbers +6012-222-2222 (Malaysia) and +1-212-222-2222 (New York) .

Reflecting on the AI.com deal, Arsyan shared a simple lesson from negotiating at the highest level: "Never overnegotiate or play fishing with them, you might end up blowing the deal. That's my only advice when you are making a deal at this level" .

The transaction places Malaysia firmly on the global digital assets map and demonstrates the extraordinary returns possible from long-term digital infrastructure ownership, particularly when combined with strategic patience and market timing.

🇲🇾 MALAYSIA TALENT MOVEMENTS

YTL AI Labs Appoints Former GXBank CTO as Chief Solutions Officer

YTL AI Labs has appointed Grab's former first engineer and ex-Chief Technology Officer of GXBank, Fadrizul Hasani, as its Chief Solutions Officer, following his 14-year tenure within the Grab ecosystem where he was a foundational member of the technical team that scaled the company into a regional platform .

In his new role at YTL AI Labs, Fadrizul will focus on engineering sovereign AI platforms and production systems specifically designed for the Malaysian market, working alongside a leadership team that includes Chee Mun Foong, Benny L., Lou Yeoh, and Hann Yeoh on initiatives aimed at national-scale impact .

The lab's operations are closely linked to Malaysia's digital banking landscape, as YTL AI Labs maintains a connection to Ryt Bank through YTL's status as a shareholder, with CEO Chee Mun Foong having previously served as Ryt Bank's Chief Product Officer.

The "Sovereign AI" Mandate

Fadrizul's appointment represents more than a talent acquisition, it signals Malaysia's strategic push toward "sovereign AI" development. Unlike generic AI models trained predominantly on Western data and contexts, sovereign AI aims to build large language models and AI systems trained on Malaysian and regional data, understanding local languages, cultural contexts, and specific market realities.

In a LinkedIn post, Fadrizul confirmed that his next phase of work will focus on the Malaysian market, with an emphasis on projects designed for national impact, stating "I'm stepping into a new chapter focused on building things that are genuinely Malaysian, built for long-term national impact" .

YTL AI Labs (formerly FrogAsia) has been building ILMU, Malaysia's own large language model, homegrown, world-class, and multimodal. The addition of Fadrizul's technical leadership from Grab's hyper-scale operations and GXBank's regulated fintech environment brings critical expertise to translating sovereign AI ambitions into production-grade systems.

💡 REGIONAL ECOSYSTEM INSIGHTS

Southeast Asia's Startup Funding Remains Selective in 2026

While overall funding has stabilized at $6.79 billion across 335 equity rounds in 2025, capital is concentrating in late-stage rounds and Deep Tech sectors, meaning seed-stage founders must demonstrate clear unit economics over growth-at-all-costs metrics.

Late-stage funding surged 140% in H1 2025 compared to H2 2024, reaching $1.4 billion, while seed-stage funding collapsed by 50% to just $50.7 million and early-stage funding dropped 27% to $167 million.

The Geographic Concentration Continues

Singapore still dominates VC activity, attracting 95% of SEA tech funding in Q1 2025, though other countries like Indonesia and Vietnam are seeing growth in sector-specific deals, with Indonesia accounting for 20% of the region's fintech deal volume and Vietnam showing a 25% increase in healthtech funding year-over-year.

The data tells a consistent story: investors are funding fewer companies, but writing larger checks for proven business models. Early-stage founders without demonstrable traction face the most challenging fundraising environment in over six years.

Sector Focus Sharpens Around AI, Fintech, Climate Tech

As we head into 2025 and 2026, investors are focusing on tech startups that offer innovative AI and FinTech solutions, with fintech expected to remain the top sector for startup funding in Southeast Asia, continuing its strong performance from last year, while the resurgence of decentralized finance (DeFi) projects has fueled growth, reflecting strong investor confidence in blockchain technology within the fintech space.

AI startups are catching the attention of venture capital firms, with funding expected to grow as market demand continues to rise exponentially, yet the era of "just another AI tool" is over, as investors now hold startups to higher standards, prioritizing companies that use AI to tackle complex, real-world challenges and deliver measurable impact.

📊 MALAYSIA IN CONTEXT

Comparing Paths: Digital Assets, Sovereign AI, and Ecosystem Depth

This week's Malaysian news, Arsyan's RM276 million domain sale and Fadrizul's move to YTL AI Labs, illustrates two distinct but complementary value creation paths in the digital economy:

Path 1: Digital Asset Ownership (Arsyan's RM276M windfall)

• Long-term strategic ownership of scarce digital real estate

• Patience spanning decades (1993-2025)

• Market timing aligned with technological mega-trends (AI explosion)

• Individual wealth creation through asset appreciation

Path 2: Sovereign Technology Building (Fadrizul's national-scale mandate)

• Building production AI systems for national competitiveness

• Technical leadership translating vision into deployed systems

• Ecosystem-level impact rather than individual wealth maximization

• Government-backed infrastructure plays (YTL AI Labs, ILMU LLM)

Both matter. Both represent viable strategies for Malaysian tech participation. The Arsyan story demonstrates that Malaysians can compete globally in digital asset markets. The Fadrizul story demonstrates that Malaysia is building indigenous AI capabilities rather than remaining dependent on foreign models.

Together, they signal ecosystem maturity: individual success stories (digital assets) alongside institutional capability building (sovereign AI).

📌 QUICK BITES

• AI.com sale: RM276M domain transaction marks highest disclosed domain sale ever, paid entirely in cryptocurrency

• Arsyan's portfolio: Owns shortest email ([email protected]), shortest URL (g.gg), shortest ETH address (aaa.eth), +6012-222-2222 (MY), +1-212-222-2222 (NY)

• YTL AI Labs hire: Former GXBank CTO Fadrizul Hasani joins as Chief Solutions Officer to build sovereign AI

• ILMU development: Malaysia's homegrown LLM being built by YTL AI Labs for local context and languages

• SEA funding 2025: $6.79B across 335 rounds, but late-stage surged 140% while seed collapsed 50%

• Singapore dominance: Captured 95% of Q1 2025 regional tech funding

• Investor focus: AI, fintech, climate tech dominate; profitability over Growth-at-all-costs.

🎯 THE BOTTOM LINE

This week brought two Malaysian success stories that reveal the maturity and sophistication of the country's digital economy participation.

Arsyan Ismail's RM276 million AI.com sale demonstrates that Malaysians can compete at the highest levels of global digital asset markets. The transaction, originating from a $100 childhood purchase in 1993, illustrates the power of strategic patience, digital infrastructure ownership, and timing aligned with technological mega-trends. His negotiation advice ("never overnegotiate") reflects hard-won wisdom from operating at the elite tier of digital transactions.

Fadrizul Hasani's move from GXBank to YTL AI Labs signals Malaysia's strategic push toward sovereign AI development. Rather than remaining dependent on foreign AI models trained on Western data, Malaysia is building indigenous capabilities through ILMU and other national-scale initiatives. Fadrizul's mandate, engineering sovereign AI platforms and production systems specifically for the Malaysian Market, represents the translation of AI Nation 2030 ambitions into concrete technical execution.

The regional context reinforces why both paths matter. Southeast Asian startup funding stabilized at $6.79 billion in 2025, but capital concentration intensified dramatically: late-stage funding surged 140% while seed funding collapsed 50%. Singapore captured 95% of Q1 2025 regional funding. Investors demand proven business models, clear paths to profitability, and defensible competitive moats.

For Malaysian founders, the strategic implications are clear:

Digital Asset Path: Build or acquire scarce digital infrastructure with long-term appreciation potential. Think decades, not quarters. Position for technological mega-trends before they become obvious.

Sovereign Technology Path: Leverage Malaysia's push toward indigenous AI, fintech, and digital capabilities. Access government-backed initiatives like MDEC programs, MRANTI support, and YTL AI Labs' ecosystem. Build for national-scale impact while capturing commercial value.

Hybrid Approach: Combine both strategies. Build technology companies while accumulating strategic digital assets. Create operational businesses that generate cash flow while holding long-term appreciation assets.

The question for every Malaysian founder this week: Are you building for quick exits, or positioning for decade-long compounding?

Arsyan held AI.com for 32 years. Fadrizul spent 14 years building Grab's foundation before moving to sovereign AI. Both exemplify strategic patience rewarded.

Startup Pulse is your curated weekly digest of the latest developments in Malaysia and Southeast Asia's startup ecosystem. Stay informed, stay ahead.

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HEADLINE NEWS

Malaysia Consolidates Innovation Assets: Futurise Transitions to MDEC in Major Ecosystem Restructuring

Malaysia is consolidating its innovation ecosystem as Futurise Sdn Bhd moves from Cyberview Sdn Bhd to become a subsidiary of Malaysia Digital Economy Corporation (MDEC), announced on February 13, a strategic shift aimed at driving greater coordination and impact in national digital economy initiatives (Salesforce) .

Digital Minister Gobind Singh Deo said the move aligns key innovation assets under MDEC, enabling a "more cohesive and powerful engine for innovation, regulatory agility, and high-impact digital initiatives" . Futurise will continue to lead the National Regulatory Sandbox (NRS), promote ease of doing business, and accelerate industry-led research and societal innovation with enhanced scalability.

Under MDEC's stewardship, Futurise will deepen its role as a strategic enabler of innovation, focusing on regulatory modernisation, policy advisory, and next-generation technologies, including artificial intelligence (AI), in line with Malaysia's goal to become a leading AI nation by 2030.

MDEC Launches Government Innovation Initiative with Pilot Healthcare Program

As part of the rollout, MDEC spearheaded by its CEO Anuar Fariz Fadzil and working closely with the Digital Ministry together with the Health Ministry, has rolled out a flagship pilot known as RadioConnect at three public hospitals on February 14.

RadioConnect provides cloud-based connectivity with secure access across multiple providers through each hospital's Picture Archiving and Communication System (PACS). The system is intended to streamline the secure, economical and near-instant storage, retrieval and sharing of diagnostic images such as X-rays, MRIs and CT scans, allowing authorised doctors and medical practitioners to access patient images across departments and hospitals nationwide.

Digital Minister Gobind Singh Deo said the initiative is about building a more responsive and future-ready public sector, not just adopting new technologies (Marketing-Interactive) . Through the Government Innovation Initiative, Malaysia is creating a direct pipeline where citizens' challenges meet Malaysian-made AI solutions, accelerating transformation into a leading digital nation by 2030.

💰 MALAYSIA STARTUP SUCCESS STORY

WAHDAH Technologies Scales to RM40M Revenue with MDEC and MDV Support

Malaysia's digital transformation continues to gain momentum as MDEC strengthens its efforts to empower local innovators, with WAHDAH Technologies Sdn. Bhd. emerging as a homegrown mobility and travel-tech success story announced on February 16 .

WAHDAH connects mobility, automotive, and tourism sectors through an integrated digital platform. MDEC has been instrumental in WAHDAH's journey, facilitating ecosystem visibility, providing market access and enabling participation in strategic digital adoption programmes, helping strengthen WAHDAH's technological capabilities, accelerate its business model evolution and support its regional growth (StartupBlink) .

Together, MDEC and Malaysia Debt Ventures Berhad (MDV) have carved a clear growth pathway for WAHDAH, supporting its scale up and positioning the company towards a cumulative projected revenue growth of RM40 million.

Operating across all key economic regions of Malaysia with nearly 100 employees, WAHDAH maintains physical touchpoints nationwide including regional hubs and satellite offices in Langkawi, Kuala Lumpur, Penang, Ipoh, Melaka, Johor Bahru, Jakarta, and Singapore. By leveraging digital platforms and data-driven systems, WAHDAH has redefined the mobility experience across Southeast Asia.

This announcement comes at a pivotal time as Malaysia advances its digitalisation agenda under Malaysia Digital (MD) and RMK12, particularly within priority areas such as digital mobility, travel-tech and platform-based innovation. The collaboration reinforces aspirations under AI Nation 2030, supporting the development of data-driven mobility solutions, fleet intelligence, and cross-border digital trade.

🎮 MALAYSIA'S GLOBAL GAMING PRESENCE

PlayStation Studios Malaysia Showcases MDEC Ecosystem Depth

PlayStation Studios Malaysia's growing role in Sony Interactive Entertainment's global production network reflects not only corporate strategy but also the depth of Malaysia's digital creative ecosystem, with senior director Hasnul Hadi Samsudin stating the studio's ability to scale and meet global standards did not happen in isolation.

"The Malaysia Digital Economy Corporation (MDEC) ecosystem under the Digital Ministry made it possible for us to operate at a global level from day one," he added. "Over the years, MDEC's support through policy alignment, ecosystem programmes and strategic engagement has helped create conditions where global studios can invest with confidence, while local talent gains access to world-class standards and practices" .

The studio was incorporated in 2019 and began operations in 2020 as Sony's first PlayStation studio in Southeast Asia. Today, it contributes to major international titles across art, animation and technical production, placing Malaysian talent inside one of the world's most demanding games development pipelines.

Hasnul said initiatives under the Digital Content Ecosystem Roadmap (DICE) spearheaded by the Ministry of Digital and MDEC have been especially important in shifting the focus from short-term training to long-term capability building, including the integration of advanced technologies such as AI and modern production workflows.

🌏 REGIONAL MARKET MOVEMENTS

Singapore Unveils Massive S$4 Billion Startup and Capital Markets Push

On February 12, Singapore Prime Minister Lawrence Wong announced Budget 2026 with unprecedented support for the startup ecosystem:

The enhanced funding aims to support not only promising early-stage technology startups but also growth-stage companies, which often require significantly larger and longer-term capital to scale, with a S$1 billion top-up to the Startup SG Equity scheme.

In addition, the government will inject a second tranche of S1.5 billion into the Anchor Fund to attract and anchor high-quality public listings in Singapore, alongside an additional S1.5 billion top-up to the Equity Market Development Programme .

Total commitment: S$4 billion in startup and capital market support.

Singapore does not see its startup challenge at the seed stage anymore. The pressure point is scale. Wong acknowledged that while early-stage capital has become more accessible over the past decade, many firms still struggle to secure funding at later stages.

The measures signal a shift from piecemeal startup support to an integrated "lab-to-listing" model, addressing both funding supply at the growth stage and exit pathways through stronger IPO support and deeper equity markets.

💡 ECOSYSTEM INSIGHTS

The Malaysia Model: Government-Backed Digital Infrastructure Enables Global Competitiveness

This week's news demonstrates Malaysia's strategic approach to ecosystem building—consolidating innovation assets, launching practical AI applications in healthcare, supporting homegrown success stories, and creating conditions for global companies to invest with confidence.

The Futurise-to-MDEC transition exemplifies the "whole-of-government" approach, bringing regulatory sandbox management, innovation facilitation, and digital economy development under unified leadership. This consolidation enables faster decision-making and more cohesive execution compared to fragmented governance structures.

WAHDAH's trajectory, from MDEC ecosystem visibility programs to RM40 million revenue projection with MDV financing, illustrates the complete support pipeline Malaysian startups can access: market access, strategic programs, alternative financing, and cross-border expansion facilitation.

PlayStation Studios Malaysia's success reinforces a critical insight: global companies invest where infrastructure, talent, and policy alignment converge. MDEC's role wasn't just attracting Sony, it was building the conditions that made Malaysia a viable location for world-class game development.

The Singapore Comparison

While Singapore deploys S$4 billion in capital market firepower, Malaysia's approach focuses on ecosystem depth over capital concentration. Singapore addresses its growth-stage capital gap with government co-investment. Malaysia addresses its ecosystem maturity through infrastructure consolidation, regulatory modernization, and sector-specific enablement.

Both approaches are valid. Singapore's advantage: concentrated capital and established exit pathways. Malaysia's opportunity: lower costs, growing talent pool, strategic geographic positioning, and government structures increasingly optimized for innovation velocity.

📌 QUICK BITES

• Futurise → MDEC: National Regulatory Sandbox now under unified MDEC leadership (Feb 13)

• RadioConnect pilot: Cloud-based medical imaging system launches at 3 public hospitals (Feb 14)

• WAHDAH success: RM40M revenue projection with MDEC and MDV support across MY, ID, SG

• PlayStation Studios MY: Operating at global standards with MDEC ecosystem support since 2019

• Singapore Budget 2026: S4B deployed across Startup SG Equity (S1B), Anchor Fund (S1.5B), Equity Market Development Programme (S1.5B)

• Asia AI Infrastructure Summit: Held February 11 in KL with MDEC support, positioning Malaysia as ASEAN's AI anchor

🎯 THE BOTTOM LINE

Malaysia's week of announcements—Futurise consolidation, Government Innovation Initiative launch, WAHDAH's scaling success, PlayStation Studios' global competitiveness—tells a cohesive story about strategic ecosystem building.

While Singapore deploys S$4 billion to address its growth-stage capital gap, Malaysia consolidates governance structures, launches practical AI applications in public healthcare, supports mobility tech scaling across ASEAN, and demonstrates that global gaming studios can operate at world-class standards from Kuala Lumpur.

The Futurise-to-MDEC transition matters beyond organizational charts. It unifies regulatory sandbox management with digital economy development, enabling faster regulatory adaptation for emerging technologies—precisely what AI Nation 2030 requires.

For Malaysian founders, this week reinforces a strategic reality: the ecosystem infrastructure is maturing rapidly. National Regulatory Sandbox for testing innovation. Government Innovation Initiative creating direct pathways from problems to solutions. MDEC facilitating market access and alternative financing through partners like MDV. Digital Content Ecosystem Roadmap building long-term capabilities, not just short-term training.

The question for founders: Are you leveraging the full ecosystem infrastructure Malaysia is building, or only accessing fragmented pieces?

Singapore has capital concentration. Malaysia is building capability depth.

Both matter. Both create opportunities. Choose your strategy accordingly.

Startup Pulse is your curated weekly digest of the latest developments in Malaysia and Southeast Asia's startup ecosystem. Stay informed, stay ahead.

HEADLINE NEWS

UK-Southeast Asia Tech Week Opens Today: Critical Window for Cross-Border Partnerships

The UK's flagship technology delegation launches today, February 9, bringing British AI and data companies to Southeast Asia through February 13. With stops in Manila, Kuala Lumpur (February 11-12), and Singapore, the event offers Malaysian startups strategic access to European technology partnerships and market entry pathways at a pivotal moment for the regional ecosystem.

The timing aligns with mounting evidence that international partnerships have become competitive necessities rather than optional strategies. As Singapore continues its unprecedented dominance, capturing $2.05 billion across just 10 deals in the first six weeks of 2026, Malaysian founders face increasing pressure to differentiate through cross-border expansion plays and technical partnerships that extend beyond the ASEAN-centric playbook.

For attendees at the February 11-12 Kuala Lumpur sessions, this represents more than networking: it's access to UK AI expertise, European distribution channels, and partnership models that could position Malaysian startups as regional-to-global bridges rather than purely domestic plays.

💰 MEGA-DEAL OF THE WEEK

Waymo Secures Historic $16 Billion to Dominate Global Robotaxi Market

San Francisco-based Waymo landed a historic $16 billion funding round on February 3 to extend its global robotaxi lead, marking one of the largest venture rounds ever closed for an autonomous vehicle company. The round, backed by Alphabet and strategic investors, positions Waymo to accelerate international expansion while competitors struggle with technical challenges and regulatory hurdles.

Global AI Infrastructure Funding Explodes

The first week of February 2026 witnessed an unprecedented surge in AI infrastructure funding:

Bedrock Robotics raised $270 million in Series B co-led by CapitalG (Google's growth fund) and Valor Atreides AI Fund to turn heavy construction machinery into autonomous, coordinated fleets, bringing total funding to over $350 million (Tech Edition) .

Goodfire secured $150 million in Series B financing, valuing the AI infrastructure startup at about $1.25 billion, with B Capital leading the round (StartupBlink) . Goodfire provides tools to "decode" how AI foundation models make decisions, helping identify and fix failure modes like bias and hallucinations.

Waabi closed a $1 billion funding round in February 2026 to further develop its autonomous trucking technology and expand into the robotaxi market in partnership with Uber Technologies.

Lawhive announced a $60 million Series B led by Mitch Rales (co-founder of Danaher) to expand AI-powered legal services into the U.S., with the round including participation from TQ Ventures, GV (Google Ventures), Balderton Capital, and Jigsaw. The UK-based startup reported 7x revenue growth to $35M in ARR.

The Southeast Asian Implication

While these mega-rounds occurred in Western markets, they establish critical benchmarks for regional AI valuations and investor appetite. Southeast Asian AI startups demonstrating comparable technical depth, particularly in areas like autonomous systems, legal automation, and infrastructure, can leverage this momentum. However, the bar is high: investors are funding foundational AI infrastructure with defensible technical moats, not AI-wrapper products.

🇲🇾 MALAYSIA LEADERSHIP & INFRASTRUCTURE

PayNet Welcomes New CEO as Digital Payments Infrastructure Matures

Praveen Rajan officially assumed the role of Chief Executive Officer of Payments Network Malaysia (PayNet) on February 1, 2026, following a planned leadership transition first announced in September 2025 . Rajan brings over 20 years of experience from telecommunications and digital sectors, having most recently served as Chief Consumer Business Officer at CelcomDigi Berhad.

Rajan succeeds Farhan Ahmad, who concluded his tenure on January 31, 2026, during which PayNet saw a 275% surge in transaction volumes and strengthening of the DuitNow real-time payment system . The organization also launched the National Fraud Portal and financial inclusion programmes including PayNet Cambah.

Why This Matters for Startups

PayNet operates Malaysia's core payment infrastructure, the rails that fintech startups, e-commerce platforms, and digital services depend on. Leadership transitions at this level signal strategic priorities for the national payments ecosystem. Rajan's focus on operational resilience, fraud prevention, and industry engagement suggests continued infrastructure maturation that benefits the entire startup ecosystem.

Malaysia's Semiconductor Manufacturing Expansion Accelerates

Nexperia plans Malaysia expansion in face of geopolitical risks and automotive supply concerns, following geopolitical tensions between the Netherlands and China that led to Nexperia halting shipments at the end of 2025 .

US authorities are investigating Singapore-based cloud provider Megaspeed International over concerns that Nvidia chips may have been diverted to China, with regulators in the US, Singapore, and Malaysia saying their reviews are ongoing . Bloomberg analysis shows Megaspeed has imported at least $4.6 billion worth of Nvidia hardware since 2023.

Malaysia's position as a non-Chinese semiconductor manufacturing hub continues strengthening amid ongoing US-China trade tensions, positioning the country as a strategic alternative for global tech supply chains.

🌏 REGIONAL MARKET SNAPSHOT

Singapore's Concentration Intensifies: $2.05B in Six Weeks

In the year 2026, till February 2026, $2.05B has been raised in 10 equity funding rounds across Singapore, an 8.63% rise in funding compared to 2025 . For context, 10 deals accounting for $2.05 billion suggests an average deal size of $205 million, firmly late-stage territory.

Meanwhile, in the year 2026, till February 2026, 5 acquisitions happened in Singapore, compared to 77 total acquisitions in 2025. In the year 2026, till January 2026, 2 IPOs happened in Singapore, compared to 21 total IPOs in 2025 .

The early 2026 data suggests a continuation of 2025's pattern: massive late-stage funding rounds concentrated in proven companies, with M&A and IPO activity remaining relatively muted in the opening weeks of the year.

Thailand's Ecosystem Momentum Builds

According to StartupBlink, Thailand's ecosystem expanded 12.7% in 2025, hosting 326 active startups, now ranking #53 globally while holding the #4 spot in Southeast Asia after Singapore, Indonesia, and Malaysia.

The government approved Thailand Digital Valley Phase II, an innovation district in Chonburi modeled after Singapore's One-North, expected to host 200 tech companies by 2027 (500) . In 2024, Thailand recorded over $500 million in startup funding, led by sectors like fintech, AI, and logistics, with early-stage rounds (Seed and Pre-Series A) dominating.

Thailand's positioning as the "Land of Startups" rather than just the "Land of Smiles" reflects government-backed initiatives like Startup Thailand and TechSauce Global Summit putting Bangkok on the regional innovation map.

💡 ECOSYSTEM INSIGHTS

The Capital Efficiency Imperative Intensifies

Early 2026 data confirms the pattern established throughout 2025: capital rewards proven business models with clear profitability paths and defensible competitive moats.

• Global AI infrastructure: $1.5B+ raised in first week of February alone

• Singapore late-stage: $2.05B across 10 deals = average $205M per deal

• Regional early-stage: Increasingly difficult environment for first-time founders without traction

For Malaysian founders, this creates both challenge and opportunity:

Challenge: Early-stage capital remains scarce. Seed rounds require more traction than ever. First-time founders without demonstrable product-market fit face the steepest hill.

Opportunity: Founders who demonstrate capital efficiency, strong unit economics, and international expansion potential (like European partnerships via UK-SEA Tech Week) stand out in a less crowded field. The bar is higher, but clearing it means access to substantial capital from investors seeking alternatives to Singapore's mega-deal concentration.

Cross-Border Partnerships as Competitive Advantage

Cross-border partnerships are becoming increasingly strategic, with Indonesian startups collaborating with Malaysian and Thai companies to co-develop products, share distribution networks, or jointly target regional customers, distributing risk and creating new growth avenues without requiring substantial capital injections.

This trend makes events like UK-SEA Tech Week strategically critical, not just for European expansion, but for positioning Malaysian startups as regional orchestrators who can bridge ASEAN markets with international technical expertise and distribution channels.

📌 QUICK BITES

• Waymo's record round: $16B autonomous vehicle funding sets new benchmark

• AI infrastructure boom: $1.5B+ raised across Bedrock Robotics ($270M), Goodfire ($150M), Waabi ($1B), Lawhive ($60M) in first week of February

• PayNet leadership: Praveen Rajan assumes CEO role February 1st, succeeding Farhan Ahmad

• Singapore's dominance: $2.05B raised in 10 deals (first 6 weeks of 2026), 8.63% up YoY

• Thailand's growth: Ecosystem expanded 12.7% in 2025, now #4 in Southeast Asia

• Malaysia semiconductors: Nexperia plans expansion amid geopolitical supply chain shifts

• UK-SEA Tech Week: Launches today, Malaysian sessions February 11-12 in KL

🎯 THE BOTTOM LINE

As UK-Southeast Asia Tech Week launches today with Malaysian sessions scheduled for February 11-12, the strategic message for founders has crystallized: international partnerships are no longer "nice to have", they're table stakes for competing in a capital-constrained, Singapore-dominated regional ecosystem.

The $16 billion Waymo round and $1.5+ billion in AI infrastructure funding announced in the first week of February demonstrate where global capital sees value: autonomous systems, defensible technical moats, and foundational infrastructure plays. Singapore's $2.05 billion raised in six weeks across just 10 deals further concentrates regional capital in late-stage, proven models.

For Malaysian founders, the path forward requires more than domestic traction. PayNet's leadership transition signals continued payments infrastructure maturation. Nexperia's expansion reinforces Malaysia's semiconductor manufacturing positioning. Thailand's 12.7% ecosystem growth shows regional competition intensifying.

The opportunity: UK-SEA Tech Week offers direct access to European technical expertise and distribution channels precisely as regional competition demands differentiation. Those who can demonstrate capital efficiency, technical depth, and international scalability will find capital available. Those who cannot will face an increasingly challenging 2026.

The question for every founder attending UK-SEA Tech Week this Wednesday-Thursday in Kuala Lumpur: Are you building for ASEAN relevance, or global resilience?

Startup Pulse is your curated weekly digest of the latest developments in Malaysia and Southeast Asia's startup ecosystem. Stay informed, stay ahead.

HEADLINE NEWS

• VinFast Unveils Aggressive E-Scooter Expansion Across Five Regional Markets

Vietnamese EV maker VinFast on January 31 officially unveiled its international business strategy for electric scooters, identifying five initial key markets: the Philippines, Indonesia, India, Thailand and Malaysia. The company plans to roll out its electric scooter business in these markets throughout 2026, marking a significant milestone in Vietnam’s “Make in Vietnam” green mobility ecosystem expansion.

VinFast plans to introduce a portfolio of battery-swapping e-scooters, including the VinFast Flazz, VinFast Evo, VinFast Feliz II and VinFast Viper, alongside additional new models to be launched in due course. The company will launch seven new models in premium and sport categories, backed by large-scale manufacturing capabilities and flexible battery-swapping solutions provided by strategic partner V-Green.

This expansion targets markets characterized by large populations, rapid urbanization, strong two-wheeler demand, and mounting environmental pressures, making electric scooters an ideal solution for reducing emissions while offering cost-efficient urban mobility.

📊 REGIONAL FUNDING LANDSCAPE

• Southeast Asia Venture Market Stabilizes After Multi-Year Pullback

Startup funding in Southeast Asia stabilized in the second half of 2025 after hitting a cyclical low earlier in the year, with equity dealmaking ticking up modestly and signaling an end to the prolonged contraction in activity. Deal volume edged up to 233 equity transactions in H2 2025, compared with 228 deals in H1, while funding value rebounded more sharply to $3.51 billion from $1.86 billion.

However, investors caution against reading too much into the recovery. Joan Yao, a general partner at Kickstart Ventures, said investor behavior across the region has shifted decisively toward caution following the sharp post-pandemic correction, noting that while activity has stabilized, expectations are now more grounded .

Southeast Asia minted four unicorns in 2025, up sharply from just one in 2024 and two in 2023, reinforcing the growing concentration of capital in a smaller pool of companies with clearer scale potential and more sustainable growth profiles .

In January 2026 alone, Singapore startups raised $2.02 billion across 6 equity funding rounds, representing an 11.14% rise compared to the same period last year (Tracxn) . Singapore continues to dominate, accounting for more than 60% of regional deal count in 2025.

💰 KEY FUNDING ROUNDS

• Singapore Travel-Tech HeyMax Raises $11M Series A

Singapore-based HeyMax has secured US$11 million in Series A funding as it looks to scale its travel and loyalty platform across multiple Asia Pacific markets. The round was led by Peak XV Partners, with participation from Betatron Venture Group and continued backing from existing investors January Capital and Tenity.

Founded in 2023, HeyMax operates a platform that allows consumers to earn and redeem rewards across merchants, payment cards, airlines and hotels through its proprietary rewards currency, Max Miles. The funding will support product development, including AI-enabled features, and planned expansion into new regional markets by 2026.

• Singapore AI Automation Startup Galatek Secures $30M Series A

Singapore-based automation and artificial intelligence startup Galatek has raised $30 million in a Series A funding round to expand its activities in life sciences and semiconductor manufacturing. The company plans to use the capital to advance product development, strengthen its global supply chain, and build local capabilities across Europe, North America, and Southeast Asia.

🌏 MARKET MOVEMENTS

• Thailand Positions as Rising Fintech Hub with Cross-Border Payment Push

Thailand has emerged as a rising fintech hub due to high digital adoption rates, strong government support through the Bank of Thailand, and successful initiatives like the PromptPay real-time payment network. To combat regional fragmentation, Thailand is actively establishing cross-border interoperable payment systems, including QR payment collaborations with India, Singapore, and Vietnam.

The government approved Thailand Digital Valley Phase II in 2025, an innovation district in Chonburi modeled after Singapore’s One-North, expected to host 200 tech companies by 2027.

🇲🇾 MALAYSIA WATCH

• Malaysia’s 2030 Vision Gains Momentum

Kuala Lumpur’s rise in the GSER 2025 Emerging Ranking reflects Malaysia’s growing global startup competitiveness, driven by a whole-ecosystem approach to empower talent, expand strategic funding, and strengthen global connectivity. The MYStartup Platform has onboarded 4,428 active Malaysian startups to date.

Malaysia targets the creation of 5,000 new startups by 2025, aiming to contribute 25.5% to GDP, fostering a dynamic ecosystem for innovation and growth (Failory) . In January 2025, Malaysia and Singapore agreed to create a special economic zone in Johor to boost global investment, cross-border trade, and job creation, targeting 20,000 skilled jobs in five years.

💡 ECOSYSTEM INSIGHTS

• Late-Stage Funding Dominance Continues

Late-stage investment surged to $3.9 billion in 2025, nearly tripling from $1.3 billion a year earlier, although it remained 13 percent lower than the $4.4 billion recorded in 2023 . Meanwhile, seed-stage funding fell sharply to $214 million, down 57% from 2024.

The shift reflects investor preference for proven business models over early-stage risk-taking. Edgar Hardless, CEO of Singtel Innov8, cautioned that it remains unclear whether the region has reached a cyclical bottom and expects investor sentiment to stay cautious into the first half of 2026.

• Depth Over Breadth: The New Ecosystem Narrative

The next phase of Southeast Asia’s startup story will not be written by blitzscalers but will be led by builders who understand constraints and treat capital efficiency, integrity and depth as strategic edges rather than limitations to tolerate.

📌 QUICK BITES

• Four new unicorns: Southeast Asia added four unicorns in 2025, the highest since 2022

• Singapore’s dominance: City-state captured 92% of regional funding in H1 2025

• AI & SaaS growth: AI startups witnessed 217% growth and SaaS companies experienced 262% expansion

• Climate tech momentum: Raised $725 million in venture capital funding, with Indonesia accounting for 67%

• Vietnam’s ambition: Vietnam introduced Decree 19/2025/ND-CP with a special investment procedure to streamline licensing for selected high-quality and high-technology investment projects.

🎯 THE BOTTOM LINE

January’s closing week brought decisive moves from regional players positioning for 2026 growth. VinFast’s bold five-market expansion signals Vietnam’s manufacturing ambition beyond automotive into two-wheeler electrification. Meanwhile, funding data confirms what investors have been signaling for months: the market has found a floor, but the recovery will favor depth over breadth. Singapore’s continued dominance (92% of H1 2025 funding) raises questions about regional balance, even as secondary hubs like Kuala Lumpur, Bangkok, and Ho Chi Minh City build momentum through government-backed infrastructure plays. For founders, the message is clear, capital is available, but only for those demonstrating sustainable unit economics and clear paths to profitability.

Startup Pulse is your curated weekly digest of the latest developments in Malaysia and Southeast Asia’s startup ecosystem. Stay informed, stay ahead.