Post on 08-Aug-2020
Emerging regulatory trends for start-ups and
scale-ups post-movement control
Mohamad Izahar Mohamad IzhamPartner
Zaid Ibrahim & Co. (a member of ZICO Law)Co-LeadZICO Labsizahar.izham@zicolaw.com+603 20879953
MALAYSIA
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Overview: Impact of movement control
83.5%were concerned
about the decline in sales and the
inability to operate
64.1%reported that their
sales or revenue had dipped by more than half
62.7%of start-ups had sought
financial assistance
74.9%were unaware or
unsure of the various Government support
instruments or incentives
40% of startups will not survive if the COVID-19 crisis continues after May
Source: Malaysian Global Innovation and Creativity Centre (MaGIC) of 239 start-ups and social enterprises over a four-day period from March 19 to 22, 2020.
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Start-ups and Scale-
ups
Overview: The ‘New Norm’
Work From Home (WFH)
E-Wallet
Delivery Services
Online Business
Technology
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Theme: Work From Home (WFH)
• Buzzword of MCO is ‘WFH’• Increased trend of co-working space and
hot desk• Not something new for start-ups and
scale-ups
OBSERVATION1
• Working conditions• Occupational safety
REGULATORY CONSIDERATIONS2
• Physical office
REGULATORY TRENDS3
Source: https://www.theedgemarkets.com/article/cover-story-more-corporations-and-mncs-moving-coworking-spaces
Recommend.my’s Survey Results on Effect of MCO on SMEs
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Theme: Online Business
• Even before movement control, manybrick and mortar businesses have beenshutting down
• Movement control has acceleratedgrowth of online services
OBSERVATION1
• Consumer protection
REGULATORY CONSIDERATIONS2
• Registration of businesses
• Licensing of platforms
REGULATORY TRENDS3
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Theme: E-wallet
• Health concerns would spur growth of cashless payments
OBSERVATION1
• Rapid growth in adoption
REGULATORY CONSIDERATIONS2
• Digital banking license and framework
REGULATORY TRENDS3
Source: https://www.theedgemarkets.com/article/tech-cashless-payments-become-more-popular-merchant-acquirers-will-thrive
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Theme: Technology
• Government push for IndustrialRevolution 4.0 (IR4.0)
• Social distancing means relying on virtualtools for communication
OBSERVATION1
• Security of online meeting tools
REGULATORY CONSIDERATIONS2
CyberSecurity Malaysia – Reported Incidents Statistics 2019
Questions on Social Media, E-commerce and Technology
Source: https://www.mycert.org.my/portal/statistics-content?menu=b75e037d-6ee3-4d11-8169-66677d694932&id=0d39dd96-835b-44c7-b710-139e560f6ae0
Source: https://www.digitalnewsasia.com/business/malaysias-small-businesses-well-placed-recover-economic-impacts-covid-19
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Theme: Delivery Services
• Delivery services has been one of the core front liners during movement control
OBSERVATION1
• Delivery services has yet to be fullyregulated
REGULATORY CONSIDERATIONS2
• Food safety
• Halal food delivery
REGULATORY TRENDS3
Statista – Projected Growth of Malaysian Food Delivery Services
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Key Takeaways
Moving forward, it is important to quickly understand what the ‘new norm’ means for your organization in order to quickly adapt
The COVID-19 pandemic and movement control affects all businesses including start-ups and scale-ups
Cannot be left only to the Government, but the whole ecosystem needs to play its part
Mohamed Yusnee Rahmat Mohd YusofDirector of ASEAN Centre of Entrepreneurship (ACE)
Malaysian Global Innovation and Creativity Centre (MaGIC)yusnee@mymagic.my
MALAYSIA
INSPIRE LEARN GROW INITIATE
STRATEGIC GOALS POST MCO
1) RECOVERING REVENUE
Important to identify the primary source of revenue
Win back loyal customers
Reskilling the sales force – remote selling
Act with urgency – work faster and better
2) REBUILDING OPERATIONS
The Future of WORK – Use of more Automation and Technology
Complete tasks remotely – Using digital communication and
collaboration tools
Taking action – Faster turn around time
STRATEGIC GOALS POST MCO
3) RETHINKING THE ORGANISATION
Strong sense of identity – Shared sense of purpose, culture
between Leaders and employees
Shifts in operating models – Clear goals, focused teams
Rapid decision making – less bureaucracy
4) ACCELERATE DIGITAL ADOPTION
Creating a seamless experience for customer
Incorporate new data
Create new models to enable real-time decision making
CONNECTING ASEAN STARTUP ECOSYSTEMS
“Through ACE collaborations with the ASEAN counterparts. ACE will facilitate the
Malaysian startups to connect with ACE’s partners in ASEAN”
● Through this programme, the selected startups will be
hosted and assigned with mentors in the respective
ASEAN country
● Startups get the opportunity to understand the market
landscape, build connection and explore potential
business opportunities for their expansion
● Currently the program have ‘Go beyond’ ASEAN
leveraging on ACE network
Source: https://s3-ap-southeast-1.amazonaws.com/mymagic-misc/ASEAN+Startup+Landscape.pdf
7th largest economy worldwide, combined GDP of USD2.5 trillion
and poised to become the 4th largest by 2030. 6 major economies
of Thailand, Vietnam, Malaysia, Singapore, Indonesia and
Philippines all expected to cross the USD3,000/capital barrier
70% of the population is younger than the age of 40 years
4th largest and the fastest growing internet market in the world,
with more than 3.8 million going online every month.
150 million population of 25+ years are unbanked. 100 million+ in
Indonesia, Philippines and Vietnam alone.
Internet speed are slower than global average for all countries
expect Singapore
ASEAN SNAPSHORT
+
+
+
-
-
Population
630mil
Aged 15-34
60%
Top
economies
>5.3%
growth
260milInternet users
700milMobile connections
ace@mymagic.my
Mahadhir AzizChief Executive Officer
Futurise Sdn Bhdmahadhir@futurise.com.my
MALAYSIA
SHAPING MALAYSIA’S FUTURE THROUGH
NATIONAL REGULATORY SANDBOX (NRS)
Futurise Sdn Bhd
6 May 2020
2020 NRS
FOCUS
Introduction
Futurise as Public Policy Advisor for industry and
government in the aspect of Future Economy to
increase Malaysia’s overall competitiveness
through innovation-driven and adaptive policy-
making.
Sectoral Industry
Interest
Sectoral Industry Focus 2
1st Submissionas at 15 March 201892
18BATCH
92nd
BATCH
An initiative by :
Strategic collaboration between Government, Academia, Industries and Entrepreneurs aims to expedite progressive & anticipatory regulatory
intervention to enable commercialization of innovation & technology solutions while shaping Malaysia's future.
Former Prime Minister,Announcement of NRS,
GEC Summit 2017
National Regulatory Sandbox Kick off Meeting by MOF on 14 Feb 2018
National Regulatory Sandbox (NRS)
21
Mandated by Majlis Pembangunan Negara.
”Meeting no 6/2019”
Futurise to lead the NATIONAL REGULATORY SANDBOXSports TechMobility
Future Economy
22The development of “Future Economy Corridor” as a refresh to the Multimedia Super Corridor announced more than 20 years ago.
Futurise’s Positioning
Consultancy FacilitationStrategic
Partner
Thought
Leadership
1. Regulation interventions
2. Innovation deployments
3. Creation of innovation ecosystem
Strategic
Outcome
23
The Programmes
24
Ideas Nucleus Labs Ventures
• Strategic Engagement
• Networking Platform• Tech Talk & Event
• Showcase
• Foresight
• FUTURITY Platform
• Accelerator & Industry Development
• Training & Certification
• National Regulatory
Sandbox• Co-Design Lab
• Rapid Prototyping
• Regulation Intervention
• Pilot & Testing
• Commercialisation
• Market Access• Funding
• Marketplace
One-stop center in development of futuristic innovation ecosystems
National Regulatory Sandbox Initiative
25
NRS – AUTONOMOUS VEHICLES @ CYBERJAYA
OPEN INNOVATION PLATFORM @ FUTURITY
A platform developed aimed to match innovation and
solution between stakeholders while accelerating the
ideation to commercialisation growth.
Collaboration between MOT & relevant agencies to
support the development of urban mobility
while improving road safety and better productivity.
Developed guideline for AV trialling on public roads in
Cyberjaya– endorsed by MOT and MP Sepang
NRS - UNMANNED AIRCRAFT SYSTEMS (UAS)
Collaboration between MOT, CAAM, JUPEM, MAVCOM,
MDEC & UAS industry by establishing a progressive and
inclusive UAS regulatory framework with Cyberjaya
recognized as first Drone Testing Zone (DTZ).
2019 Achievements
NRS Secretariat
NRS Task Force
Chaired by KSP
KSUs, Regulators, KP, Private Sector, Industry
Associations
NRS Advisory Panel
NRS tabling twice a year
NRS CouncilChaired by
KSN/ Prime Minister
Quarterly meeting
Validation of Companies &
Entrepreneurs
Innovation
Screening
Regulatory
Sandbox
Regulatory Intervention
Innovation
Deployment
NRS
PROCESSNRS
GOVERNANCE
29
Collaborative Innovation Platform
Tech Providers
• Startups
• SMEs
• Associations
• etc.
Solution Seekers
• MNCs
• Associations
• Professional bodies
• etc.
Partners
• Government agencies
• Ministries
• GOC
• etc.
Post Offerings Post Challenges Post Trends
Collaboration
Open Innovation Regulatory Sandbox
Ventures & Alliances
30
To ensure
Business
Sustainability,
Ventures
program is
carried out to
support innovation
deployment for
the creation of
new businesses
and generation of
economic wealth
for Malaysia.
Large Corporates(Sales turnover above
RM50Mill)
SMEs/Startups(Sales turnover less to
RM50Mill) Private
Universities/Collages
/Training Providers
Government/
Agencies/
NGOs
RM5,000
RM2,500
RM2,500
WAIVED
• Advanced professional development by participating in NRS, Innovation Lab & Training• Opportunities to collaborate with leading-technology sector business in strategic
projects
• Establish relationship with other professional bodies concerning matters of mutual interest
• Opportunity to leverage on global network• Tech funding syndication for ecosystem development (for SMESs, Startups & Universities)
• Access to Futurise’s facilities as Future Economy
Hub at affordable member’s price
• Annual event hosting at Futurise
• Access to Open Innovation Platform data set
• Company name listed on the Futurise Website
STRATEGIC BENEFITS
MEMBERSHIP PROGRAM
Futurise to identify companies with potential to grow in innovation ecosystem through funding landscape and
accelerate the development and commercialization of innovative, market driven products/solutions/services.
COLLABORATION & PARTNERSHIP
EXCLUSIVE FEATURES ONLINE SERVICES
31
Thank You !hellofuture@futurise.com.my
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