KUALA LUMPUR (Oct 31): Budget 2022 reflects the need for technology and innovation in a post-pandemic Malaysia, according to ServisHero founder Karl Loo.

He said the RM30 million allocation for upgrading Technology Park Malaysia into an Industrial Revolution 4.0 (IR 4.0) Innovation Hub and RM20 million for Cradle Fund Sdn Bhd’s MyStartup Strategy programme will help establish important locally developed innovations.

“Budget 2022’s commitment to innovation and the nurturing of startups will allow Malaysia to flourish under this new digital-first post-pandemic economy

“As our lives become more digital, startups will play a critical part in developing solutions that are relevant to the local market,” he said in a statement.

On the innovations, Loo said they will likely range from consumer software and drone technology, to enterprise productivity tools and artificial intelligence technologies, thus playing an important part in the nation’s digital transformation. 

He opined that Budget 2022’s allocation to execute the MyStartup Strategy — aimed at facilitating efforts to restore and build economic resilience of startups — will ensure a simpler and centralised support structure for the startup ecosystem.

“We are not only going to see new businesses emerge, but existing economic drivers, like the agricultural sector, transform with adoption of new technologies,” added Loo.

ServisHero is an investee company of Cradle being one of the portfolio companies under Cradle Seed Ventures (CSV), Cradle’s early-stage venture capital fund. With the capital provided, ServisHero was able to develop and expand regionally its consumer app for home services, he said.

Meanwhile, for Carput founder Eugene Tan, Budget 2022 shows that the government is taking sustainability more seriously and paving the way for Malaysia to be one of the first nations in the region to fully embrace electric vehicles (EVs). 

“For us at Carput, sustainability is not a trend, but a new business reality and we hope Budget 2022 will kickstart an automotive policy that helps transition Malaysia into a zero-emission vehicle nation,” he said in a separate statement.

Under Budget 2022, the government has proposed to provide full tax exemption for import duty, excise duty, and sales tax for EVs.

On the allocation to Cradle, Tan said it should go beyond seeding initial start-up capital.

“As the central agency for startups, Cradle will also be able to provide mentorship, access to market and facilitating the cooperation between larger corporates and early-stage startups,” he said.

Carput is an automotive roadside assistance startup on car battery delivery which is venturing into the world of EV charging.

See more Budget 2022 highlights here.