Southeast Asia Leads in Hi-Tech Funds Race

Weekend Australian Saturday 11/07/2015 Page: 28 Section: Business News Region: Australia, AU Circulation: 227486 Type: National Size: 392.00 sq.cms. press clip Southeast Asia leads in hi-tech funds race

ing start-ups and facilities for Wai Lau said. “They understand MITCHELL BINGEMANN training, coaching and mentoring. the risks of early-stage ventures TECHNOLOGY “We did this to really jump- whereas in other markets like start the whole thing and create a Singapore it’s very profit- and Australia’s ambitions to become a vibrant ecosystem,” said Tan Sri track-record driven. So if you’re serious player among Asia’s tech Dr Irwan, Malaysia’s Secretary not a profitable business over the start-up scene are being over- General of Treasury, Ministry of last three years then there’s no shadowed by Southeast Asian Finance. way you will get on the exchange governments that are funnelling “This is the way forward if you there.” millions of dollars to create a new want to be competitive in this A number of Asia-focused tech epicentre for the burgeoning world. It’s not my ambition to Kin Wai Lau start-ups have recently listed on market. create Silicon Valley but some- the ASX, including the reverse In the May budget the Austra- thing better than Silicon Valley.” every dollar up to about $350,000. listing of online chat and game so- lian government made important Dr Irwan said it was necessary The Malaysian government also cial network MigMe and Chinese changes to foster and support for the Malaysian government to offers a 10-year tax holiday for mobile commerce company 99 technology start-ups, including create and fund MaGIC as the pri- new technology companies domi- Wuxian, which listed on the ASX commitments to tax breaks for vate sector only desired profits. ciled in the country. in October. small businesses, measures to “Here private sector is profit- Those matching grants and tax But while Fatfish lauds its list- change the tax treatment of em- oriented. They don’t think about breaks have helped boost the re- ing on the ASX, other Singapor- ployee share schemes, an increase nature or creating,’’ Dr Irwin said. gion’s technology accelerators ean tech companies like expense in the depreciation threshold for “While the government with firms like ASX-listed Fatfish and travel management firm individual assets up to $20,000 shouldn’t interfere with private internet Group — a venture and 8Common say that listings can be and $7.8 million in funding over sector, we want to facilitate start-up accelerator — that has set premature. four years for the corporate growth and create the ecosystem, up hubs in both Singapore and The firm — which has a range watchdog to implement a crowd- which is why we created MaGIC.” Malaysia to build new technology of Australian government agen- source equity funding system to Across the border Singapore businesses. cies on its books, as well as large fi- spur new investment avenues. has established its own version of While Australian start-ups nancial institutions like AMP — is But the changes have done lit- Silicon Valley known as Block 71. may not be supported to the same on track to crack the $3m revenue tle to reverse the damage wrought Reminiscent of densely packed degree as their Asian neighbours, bar this year and is expecting to by the 2014 budget when the Aus- high-school classrooms, the cen- local investors are being increas- grow turnover to more than $4m tralian government cut eight re- tre is jointly funded by National ingly exposed to start-ups seeded in 2016. search and innovation funding University of Singapore, the by the Malaysian and Singapor- But its share-price perform- bodies, including the $213m grants Media Development Authority ean governments, which are turn- ance on the ASX since listing in program Commercialisation Aus- and SingTel’s Innov8. As the heart ing towards the ASX for extra August 2014 at 25c a share has tralia, and the Innovation Invest- of Singapore’s technology start- funding. stuttered, with stock now trading ment Fund, which co-invested in up ecosystem the Block is home to In the past year Fatfish has list- at 18c. venture capital funds. more than 300 start-ups, entre- ed on the ASX and the company “Our ASX listing was slightly Meanwhile, in Southeast Asia preneurs and venture capital has plans to list a spin-off of one of premature but if we didn’t do the governments are piling in large in- firms that all work and collaborate its investments — smartphone listing we would have exhausted vestments to ensure their techno- at the hub. game develop iCandy — in the our funds,” said 8Common foun- logy ecosystems thrive. Singapore and Malaysia also next couple of months. der and CEO Nic Lim. In Malaysia the government support their technology entre- Fatfish raised $3.5m in initial “If we went out now it would has invested 50m Ringgit ($17.4m) preneurs with generous co- public offering on the ASX last have been better but the window to establish the Malaysian Global investment grants. year. was open so we took it. Innovation and Creativity Centre In Singapore incubators can Currently, it has a market capi- “We just wanted to get the IPO (MaGIC) to support and foster invest up to $S250,000 ($248.000) talisation of about $35m. done and build the business. We new technology start-ups. and have every dollar matched “The ASX presents a very in- know that if we stay focused then The centre has been billed as with $S1.50 of funding through teresting proposition for internet we will win.” the one-stop shop for entrepren- the government’s Media Devel- companies because the investors eurs, with everything from getting opment Authority (MDA). have a good understanding of the Mitchell Bingemann was a guest of financing from banks and venture Malaysia has a similar set-up in internet compared to other mar- Fatfish during his recent trip to capital to incubators for develop- which the government will match kets,” Fatfish chief executive Kin- Singapore and Malaysia.