The early stage start-up influencer, Cradle Fund Sdn Bhd through its Cradle Investment Programme (CIP) has had a significant impact on the economy over the years. According to a study done in collaboration with HELP University, the Impact Study of the CIP has shown that the programme has contributed RM3.4 billion to the GDP.
The study, called “Value Creation in Startup Ecosystem” shows that the contribution is projected to reach RM30.8 billion by 2030. The report also shows that the CIP also contributed to job growth in the country, creating 80,600 full-time jobs as well as successfully attracting RM1.3 billion in private and foreign funds over an eight year period from 2008.
The study concluded that from a public allocation of RM158.8 million, between the years of 2008 and 2016, Cradle has been able to support local and regional economic prosperity from all parties involved.
“The CIP demonstrates that the right funding at the right time, combined with the extensive ecosystem development and support for which Cradle is known for, can bring far greater outcomes than that of ordinary public spending,” says Razif Abdul Aziz, Acting Group CEO of Cradle.
“It is an exciting time to be an entrepreneur. In a fast-changing world, a single idea can overturn an industry overnight. New businesses can grow faster than ever. Entrepreneurs are also becoming increasingly important to the global economy. Entrepreneurs drive innovation – often much more quickly than established competitors."
"Successful entrepreneurs, by definition, have figured out a way to do things better. They have challenged the status quo, asked tough questions and compete with established businesses. When an entirely new industry is created, the odds are that an entrepreneur is responsible. When entrepreneurs are able to innovate like this, they drive economic growth and create jobs at an even faster rate,” he adds.
Xelia Tong says that there is an increase in Tax Collection from GDP contribution. It has also produced permanent recurring income effect on the economy. There is also evidence to show that the commercialisation funding raised by Cradle start-ups under CIP Catalyst contributes to the development of the community.
Tong also leads the Angel Tax programme run by Cradle. This initiative is a market-driven programme aimed to train entrepreneurs and administors under the Angel Tax Incentive Office (ATIO). The main goal of ATIO is designed for angel investors to be accorded a tax deduction of up to RM500,000 to stimulate and encourage angel investments from private sector into technology based start-up companies in Malaysia.
Watch the full interview below.