emerging regulatory trends for start-ups and scale-ups post-...

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 [email protected]+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


• 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


• 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


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


• 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)[email protected]

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

[email protected]

Mahadhir AzizChief Executive Officer

Futurise Sdn [email protected]

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 [email protected]

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