In the rapidly evolving world of tech and innovation, Malaysia has made strides but still grapples with inclusivity. Ranked 114th in the World Economic Forum’s Global Gender Gap Report 2024, the country is far from gender parity, especially in tech entrepreneurship. Women make up a small fraction of business ownership, leading just 20% of the country’s 1.2 million registered businesses, mostly in the service sector. This number reflects not only the structural barriers but also societal expectations that shape women’s career choices and limit their capacity to contribute fully to the start-up ecosystem.
Women’s entrepreneurial potential remains underutilised mainly due to “time poverty” — the unpaid domestic and care responsibilities that nearly all women shoulder. According to research by the International Finance Corporation (IFC), gender bias within financial institutions further hinders access to capital for female entrepreneurs. Female founders are often asked risk-focused questions, while male founders are encouraged to discuss growth potential, affecting investor perceptions and funding outcomes. With limited representation in tech, this cycle restricts the diversity of voices and ideas in Malaysia’s innovation economy.
The barriers to gender-inclusive growth in tech are not unique to Malaysia, but they have profound local implications. Malaysia’s male-dominated start-up landscape reflects broader gender norms that limit women’s opportunities to lead and thrive in high-growth sectors. Investors often bring unconscious bias into due diligence, creating funding disparities: Male-led start-ups raise 2.6 times more equity post-acceleration than start-ups with at least one female founder, as noted in a 2020 IFC study. In emerging markets overall, only 11% of seed funding goes to companies with a woman on the founding team — a striking statistic given that women-led businesses consistently demonstrate strong financial returns.
The business case for gender inclusivity in tech is compelling and should be impossible to ignore. According to a McKinsey & Co report, women-owned start-ups generate more than twice the revenue per dollar invested compared with male-led start-ups. Gender-diverse companies are 15% more likely to see financial returns above industry averages, and companies that actively promote women in leadership outperform revenue benchmarks by up to 46%. Additionally, women control up to 80% of household spending worldwide, representing a vast market opportunity that gender-diverse businesses are better positioned to understand and serve.
The challenges Malaysia’s women in tech face extend beyond the start-up ecosystem itself. Domestic responsibilities, gender-based violence and biases — both overt and subtle — shape women’s career decisions and limit their entrepreneurial pursuits. These factors create a self-reinforcing cycle of exclusion that, if unaddressed, will continue to hold back Malaysia’s economic growth and innovation potential.
Gender inclusivity in tech has an impact that extends beyond individual companies or industries — it’s transformative for society as a whole. When more women are empowered to start businesses or pursue careers in tech, it creates ripple effects. Women-led companies often hire and promote other women, which not only fosters a diverse workplace but also helps to alleviate social issues such as poverty and unemployment. Additionally, research has shown that increased female participation in the workforce can lead to higher household incomes and improved education and health outcomes for families. Supporting women’s entrepreneurship can contribute to achieving the Sustainable Development Goals, including goals around poverty reduction, gender equality and economic growth.
One effective approach to creating a more inclusive tech start-up ecosystem is to apply a “gender lens” to programme design, funding structures and internal practices. But what exactly does that mean? A gender lens approach involves adjusting programmes, policies or investments to directly address the unique needs and challenges that women face.
For example, applying a gender lens in funding could mean developing investment criteria that actively recognise and counteract the biases women entrepreneurs face in due diligence. At an organisational level, it might involve implementing policies that support women’s career advancement or creating targeted mentorship and training programmes. Using a gender lens isn’t just about levelling the field; it’s about finding opportunities where gender diversity can drive growth and innovation.
A great example of such a gender-focused initiative is the Shell LiveWIRE Malaysia programme, which supports early-stage entrepreneurs with mentorship and seed grants. Notably, around three-quarters of the businesses in this programme are led by women founders. This focus on women-led businesses demonstrates how intentional support can help bridge gender gaps, offering female entrepreneurs access to crucial resources that enable them to grow and sustain their ventures in high-impact sectors.
Achieving a gender-inclusive tech ecosystem in Malaysia is both a moral imperative and a business opportunity. Imagine a future where women entrepreneurs are fully empowered to lead start-ups, supported by an ecosystem that sees their contributions not as ancillary but as essential. In this vision, tech start-ups led by women thrive alongside those led by men, supported by investors who value gender diversity as a marker of resilience and innovation.
In this future, Malaysia is not only a regional tech hub but also a model of inclusivity where gender equality drives economic growth and social advancement. To move forward, Malaysia must make a deliberate choice to champion gender-inclusive practices across all aspects of the tech start-up ecosystem. From designing accelerator programmes that account for women’s unique challenges to implementing recruitment and promotion policies within tech firms, every decision to support gender equality reinforces the foundation of Malaysia’s innovation economy.
A more inclusive ecosystem is not just about supporting women — it’s about building a sustainable and resilient economy that leverages the full potential of all its members. Gender equality is a force multiplier for economic and social impact, intersecting with pressing issues like poverty, climate resilience and violence prevention. Addressing it holistically in the tech start-up space is an investment in Malaysia’s future, setting the stage for a more inclusive, innovative and prosperous society.
Source: https://theedgemalaysia.com/node/736718