KUALA LUMPUR, Aug 6 — Malaysia’s startup ecosystem has climbed into the world’s 31st to 40th bracket, but Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir said the government’s priority is building a sustainable ecosystem rather than chasing higher rankings.

Akmal said Kuala Lumpur is now ranked 31st among the world’s startup ecosystems, up from 47th two years ago.

“For me, the target is not solely about the rankings. The rankings are a measure of achievement. If, by 2030, we succeed in reaching the top 20, it would indicate that the progress has been encouraging and that real momentum is being built.

“At the same time, we want to establish the startup ecosystem as one of the country’s key strengths. A stronger position in the rankings certainly suggests that what we are doing is improving the country’s capabilities.

“However, we must also continue addressing the underlying structural issues one by one, because we do not want our position to keep fluctuating,” he told a press conference after the pre-launch of KL20 2026 here today. 

According to the Global Startup Ecosystem Report 2026, the ecosystem is valued at an estimated US$9 billion for the second half of 2023 to 2025.

Akmal said a higher ranking signals that Malaysia’s efforts are strengthening the country’s innovation capabilities, but stressed that the government wants to ensure those gains are lasting.

“The best outcome is to ensure that any improvement is supported by lasting success. Progress has been made, but it is not just about the numbers. It is about creating the right conditions for startups to grow and thrive in Malaysia,” he said.

Earlier in his speech, Akmal reiterated the government’s goal of positioning Kuala Lumpur as Southeast Asia’s leading strategic startup hub and placing it among the world’s top 20 startup ecosystems by 2030 through the KL20 initiative.

“Such a position is meaningful only if more local companies successfully scale up, more technologies are developed in Malaysia, more capital is invested, and more Malaysians secure high-skilled jobs,” he said.

Akmal added that the government wants Malaysia to become a place where technology is created rather than simply consumed.

“We do not want Malaysia to be merely a market where technology is sold. We want Malaysia to be a country where technology is built, financed, tested and scaled,” he said.

KL20 Summit 2026 will be be held in Penang, Johor and Kuala Lumpur, with programmes focusing on eight sectors, including semiconductors, the digital economy, digital gaming, green technology and the creative economy.

The summit will begin in Penang on Sept 24, followed by Johor on Sept 29, before culminating in Kuala Lumpur on Nov 5.