Kuala Lumpur, 17 September 2025 — The Malaysia Digital Economy Corporation (MDEC) has announced an ambitious push: to have at least 30 tech companies ready for initial public offerings (IPOs) by 2028. This effort reflects the government’s strategy to deepen capital markets, widen tech sector participation, and reinforce Malaysia’s position as a hub for digital growth.
According to MDEC CEO Anuar Fariz Fadzil, these companies are drawn from the ranks of MD-status firms—digital economy companies that qualify under the Malaysia Digital (MD) initiative. Many of them participated in last year’s TechIPO Insight Kuala Lumpur 2024, and this year’s edition in Penang. Over 60 MD-status firms joined the Kuala Lumpur session, of which more than 20 are judged likely to be IPO-ready in the next two years. Meanwhile, in Penang, among around 40 participating tech firms, at least 10 are forecast to reach IPO-maturity by 2028.
MDEC’s role is not merely aspirational. The agency has supported the IPO journeys of 29 tech firms already listed on Bursa Malaysia, ranging from smaller growth-market players like Daythree Digital Bhd on the ACE Market to Main Market names like Vitrox Bhd. One firm, Sancy Bhd, a healthcare information technology business, is in advanced stages of moving from Bursa’s LEAP Market to a full Main Market listing. As of 1 July 2025, those MD-status tech firms collectively carried a combined market capitalization of approximately RM39.7 billion, a testament to both their scale and potential.
The sectors represented in this pipeline are diverse: semiconductor, cybersecurity, broadband infrastructure, green technology, financial software, e-government and global business services. The aim is not only to ramp up the number of public tech firms, but also to ensure quality, sustainability and diversity in what gets listed. Anuar emphasises that the focus isn’t only on unicorns—those rare start-ups worth over US$1 billion—but also on “high-potential firms worth RM100 million or several billion,” underscoring that earlier stage and mid-growth companies have a vital role to play.
To support this goal, MDEC is doubling down on its ecosystem support: premiering founder-amplification programmes, IPO readiness training, alternative and growth-financing access, catalytic grants, and facilitating cornerstone investors. The intent is to ensure that capital gaps do not stall growth, helping these companies move from private scale-ups to publicly traded firms.
Crucially, Anuar points out that listing is viewed more as a growth enabler than a destination. Post-IPO, support remains necessary—whether that’s through research coverage, market access expansion, talent development, or scaling operations domestically and regionally. MDEC will also lean into facilitating connection with regional funds to attract more investor interest into Malaysian tech listings.
MDEC’s drive comes at a moment when Malaysia’s tech economy has built momentum. More than 6,500 companies have been granted MD status so far, reflecting broad participation across the digital economy. But challenges remain: ensuring consistent profitability, regulatory clarity, investor appetite, and readiness in terms of governance, financial reporting, and scaling capability.
If successful, this strategy could help transform Malaysia’s capital markets landscape: more tech firms listed could mean more IPOs, greater depth in equity capital formation, more opportunities for retail and institutional investors, and stronger signals of confidence for foreign capital. For the companies themselves, going public could unlock resources for R&D, expansion, and global competitiveness. For the nation, it offers a chance to build lasting value in the digital economy—not just in headline tech unicorns, but in a broad base of firms contributing to jobs, innovation and economic resilience.
