Fintech Association of Malaysia issued a statement urging the Malaysian government to help fintech startups survive the MCO and ride-out the COVID-19 pandemic.
The association which represents over 200 fintech firms operating in Malaysia likened the industry as the “B40 of the business community” citing that because it is new, not well-understood that it inadvertently slip through the cracks of conventional process by various government agencies and private institutions.
Emphasizing fintech’s role for the underserved and bringing the old economy with digital capabilities the industry group said it is vital for the government to provide aid otherwise many of these startups will not survive and Malaysia will lose the opportunity to build a solid foundation for the digital economy growth engine, post COVID-19.
The group proposed to form a “Shelter Program” in which qualified fintech startups will be taken under would be taken under the guidance of various government agencies, GLCs and GLICs.
In this suggestion, the fintech startups under the wings of these GLC and GLICs will assist these agencies in ramping up their digital capabilities. While the agencies will in turn provide assistance to the startups in to survive this crisis.
The association also suggested that coordinating function is needed to facilitate the moving parts and hinted at MDEC or MaGIC being suitable entities to take on this role.
Fintech Association of Malaysia is optimistic that if enough GLCs and GLICs adopt this “Shelter Program” over 75% of fintech startups will be able to survive this crisis.
They emphasized that it is not a plea for fund, but rather they are seeking to be given a temporary shelter for fintech startups that are badly hit by the impact of MCO and COVID-19 pandemic.
