KUALA LUMPUR, April 22 (Reuters) - Malaysia plans to
build Southeast Asia's largest integrated circuit design park
and will offer incentives including tax breaks, subsidies and
visa exemption fees to attract global tech companies and
investors, the government said on Monday.
Malaysia is aiming to turn Kuala Lumpur into a regional
digital hub, with the goal of being among the top 20 countries
in the global startup ecosystem index by 2030.
Prime Minister Anwar Ibrahim said the proposed
integrated circuit design park was part of Malaysia's efforts to
move beyond backend chip assembly and testing and into
high-value front-end design work.
The country is a major player in the semiconductor
industry, accounting for about 13% of global testing and
packaging.
The park, to be backed by Malaysia's central Selangor
state, will house world-class anchor tenants and collaborate
with global companies such as British chipmaker Arm Holdings
, Anwar said, without providing further details.
Malaysia's sovereign wealth Khazanah Nasional will also
launch a fund to invest in innovative high-growth Malaysian
companies, with an initial allocation of 1 billion ringgit
($209 million), Anwar told the KL20 Summit event, aimed at
launching new policies to support Malaysian start-ups.
Economy Minister Rafizi Ramli said the government will
offer incentives including subsidised office spaces, exemptions
on employment passes, relocation services and lower corporate
tax rates for foreign venture capital firms, tech entrepreneurs
and unicorns - startups reaching a $1 billion valuation -
looking to invest in Malaysia.
"We want to attract global unicorns to enter Malaysia, so
that high-skilled and high-value jobs are created, besides
developing a pipeline of future entrepreneurs and senior leaders
in tech," Rafizi said.
($1 = 4.7820 ringgit)