Starting a Fintech Company
Starting a fintech company in Malaysia is a great idea, as the country has a growing fintech market and a supportive government. Here are some steps to help you get started:
Define your business idea and target market. What fintech product or service will you offer? Who are your ideal customers? Once you have a clear understanding of your business, you can start to develop a business plan.
Research the Malaysian fintech market and regulations. What are the key trends in the market? What are the regulatory requirements for fintech companies? You can find this information on the websites of the Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM).
Form a Malaysian company. You can register your company online through the Companies Commission of Malaysia (SSM).
Apply for the necessary licenses and permits. The specific licenses and permits you need will depend on the type of fintech products or services you offer. You can find more information on the SC and BNM websites.
Build a team of experienced and qualified professionals. Fintech is a complex industry, so it's important to have a team with the right skills and expertise.
Secure funding. Fintech startups often require significant funding to develop and launch their products or services. You can raise funding from investors, venture capitalists, or banks.
Market and launch your product or service. Once your product or service is ready, you need to start marketing and selling it to your target market.
Here are some additional tips for starting a fintech company in Malaysia:
Join the Malaysian fintech community. There are a number of fintech associations and networks in Malaysia that can provide you with support and resources.
Attend fintech events. This is a great way to learn about the latest trends and developments in the Malaysian fintech market, and to network with other fintech professionals.
Take advantage of government incentives. The Malaysian government offers a number of incentives to support fintech startups, such as tax breaks and grants.
Starting a fintech company is challenging, but it can also be very rewarding. By following the steps above and taking advantage of the resources available to you, you can increase your chances of success.
Bank Negara Malaysia's Regulatory Sandbox provides a regulatory environment that supports the development and use of financial technology (fintech) in Malaysia, and promotes innovation in the Malaysian financial sector.
As advances in fintech have led to new business models and solutions, the Regulatory Sandbox seeks to encourage innovation and the delivery of financial services by granting temporary regulatory exemptions to fintech solutions with genuine value propositions. These exemptions are accompanied by appropriate safeguards to protect financial stability, financial integrity, and consumers.
In other words, the Regulatory Sandbox allows fintech companies to experiment with new products and services in a live environment, without having to comply with all of the usual regulations. This helps to accelerate innovation and bring new financial products and services to market faster.
The Regulatory Sandbox is an important tool for promoting fintech innovation in Malaysia. It allows fintech companies to test their ideas and get feedback from users in a safe and controlled environment. This feedback can help fintech companies to improve their products and services, and to make them more likely to succeed in the market.
There are many reasons why Malaysia is a good place to start a fintech company. Here are a few:
Growing fintech market: The Malaysian fintech market is growing rapidly, with a compound annual growth rate (CAGR) of 21.4% from 2017 to 2021. This growth is being driven by a number of factors, including the increasing adoption of digital payments, the rising popularity of e-commerce, and the growing demand for financial inclusion.
Supportive government: The Malaysian government is supportive of the fintech industry and has introduced a number of initiatives to promote its growth. These initiatives include the establishment of a fintech regulatory sandbox, the provision of tax breaks for fintech startups, and the launch of a number of fintech funding programs.
Favorable business environment: Malaysia has a favorable business environment for startups, with a low cost of doing business, a skilled workforce, and a good infrastructure.
Tech-savvy population: Malaysia has a tech-savvy population, with a high smartphone penetration rate and a growing internet economy. This makes Malaysia a good market for fintech products and services.
In addition to the above reasons, Malaysia is also a good place to start a fintech company because of its:
Central location in Southeast Asia: Malaysia is centrally located in Southeast Asia, making it a good base for expanding into other regional markets.
Multilingual and multicultural population: Malaysia has a multilingual and multicultural population, which can be an asset for fintech companies that are targeting global markets.
Overall, Malaysia is a good place to start a fintech company because it has a growing fintech market, a supportive government, a favorable business environment, and a tech-savvy population.
If you are interested in starting a fintech company in Malaysia, do your research and consult with experts to learn more about the specific requirements and challenges involved.
How Bestar can Help
Bestar is a Malaysian accounting firm that specializes in helping startups and small and medium-sized enterprises (SMEs). Bestar can help you start a fintech company in Malaysia by providing you with the following services:
Help with accounting and financial reporting: Bestar can help you with all of your accounting and financial reporting needs, including bookkeeping, payroll, and tax preparation. This will free up your time so that you can focus on growing your business.
Provide advice on tax compliance: Bestar's partner can help you understand and comply with the complex Malaysian tax laws. This will help you avoid costly tax penalties and fines.
Assist with payroll and human resources: Bestar can assist you with all aspects of payroll and human resources, including employee onboarding, payroll processing, and benefits administration. This will help you ensure that your employees are paid accurately and on time, and that you are in compliance with all applicable labor laws.
Offer business consulting and support: Bestar can provide you with business consulting and support on a variety of topics, including business planning, financial modeling, and fundraising. This can be invaluable for startups that are new to the fintech industry.
Help with fundraising and investor relations: Bestar can help you with fundraising and investor relations by preparing your financial statements and pitch deck, and by connecting you with potential investors. This can help you raise the capital you need to launch and grow your fintech company.
In addition to the above services, Bestar also has a team of experienced professionals who are familiar with the unique needs of fintech companies. This means that we can provide you with tailored advice and support on a range of topics, such as:
Malaysian fintech market and regulations: Bestar can help you understand the latest trends and developments in the Malaysian fintech market, as well as the regulatory requirements for fintech companies. This will help you ensure that your fintech company is compliant with all applicable laws and regulations.
Fintech accounting and financial reporting: Bestar can help you implement and maintain a robust accounting and financial reporting system that is specifically designed for fintech companies. This will help you track your financial performance and make informed business decisions.
Fintech tax compliance: Bestar's partner can help you understand and comply with the complex Malaysian tax laws that apply to fintech companies. This will help you avoid costly tax penalties and fines.
Overall, Bestar can be a valuable resource for startups that are looking to start a fintech company in Malaysia. By providing you with a wide range of accounting, financial, and business consulting services, Bestar can help you save time and money, and focus on growing your business.
If you are interested in starting a fintech company in Malaysia, contact Bestar to learn more about the services that we offer.