Kuching’s start-up scene has only recently exploded into action. The city has been following the investment boom thanks to enterprise in other Malaysian cities, such as Penang. Kuching is catching up with plans to develop its own systems, with the goal of enticing new businesses to the island of Borneo. The first co-working space opened on the island in 2015, in partnership with the Malaysian Global Innovation and Creativity Centre. Such advances in infrastructure, besides increased interest in investment opportunities by the local city and state governments, may see Kuching overtake its Malaysian counterparts as a a legitimate location for start-ups in Southeast Asia.
As a destination, Kuching still lacks the key elements desired by investors, but its lead advantage is talent. In fact, the city has been cited as having top talent comparable to that of Hong Kong and Singapore. Kuching is held back by the basic start-up infrastructure required to enjoy significant investment from the outside. Many of Kuching’s most successful entrepreneurs are young pioneers who developed start-ups from scratch, with little help from outside investors or the government. Instead of pointing services inwards, many of Kuching’s start-up successes have seen young business owners focus on sales in overseas markets, such as Singapore. Included are various technology companies, such as in the hospitality technology and IT fields.
A popular event in Malaysia, ‘Starts in Second Cities’, has often cited that Malaysia’s secondary cities are ripe for investment but lack the core infrastructure and awareness required to bring investors from the international stage. Such as in Kuching where talent and fair business costs are not hard to come by. Yet the city is not seen as a major player in the region. In hopes to change this, there are several events helping to promote and enhance awareness of Kuching and Borneo at large. Included are Startup Grind Sarawak and the Startup Entrepreneur Association of Sarawak with an emphasis on finding funds and local start-up incubation.