Over the past few years, the Asia-Pacific region has been getting more attention from venture capitalists around the world and there is no doubt that the startup ecosystem in Asia will continue to flourish. Low cost of living in Asia is the main reason why there are so many entrepreneurs moving their startups here. A Business infrastructures are improving in other Asian countries. National governments are also showing their support. The continuous improvements in Asia will surely offer a solid ecosystem for startups in the future.
Here are the 5 best startups countries in Asia:
- Singapore
As the jewel in the Asian startup crown, Singapore, bills itself as the complete package. This startup city has everything from fintech accelerators to coworking spaces on every corner. But, is there too much money and not enough hustle in Singapore to generate real cutting edge startups that can thrive outside of its borders in less forgiving markets abroad? Singapore provides startups with endless options for networking and startup ideas.
Singapore was named the best startup ecosystem in the Asia-Pacific region. It has about 3,600 active startups, with strong growth in e-commerce, gaming, and social media. Singapore has been a thriving business center, and is home to the Asian headquarters of major U.S. companies such as Google, Uber and Facebook.
Situated on the major sea route between India and China, the city has a huge potential for market reach, with nearly half of startup customers living abroad. It’s also worth noting that Singapore has the highest mobile penetration of any nation globally. Almost nine out of 10 people have access to a smartphone. That provides new, exciting opportunities in e-commerce.
- Indonesia
The beauty of the country and its friendly locals capture the interest of startups. The environment is also more open and collaborative compared to other countries.
The largest city of Indonesia, Jakarta is also known as one of the biggest megacities in the world. One skyscraper after the other keeps rising into the sky of Jakarta, showing the massive demand for space.
The country’s growing middle class keeps flocking into the city, bringing with them a strong purchasing power, high penetration of mobile phones and an enormous demand for online service – presenting plenty of opportunities for new business ideas. The outcome is a strong market for tech startups to explore.
Although there is no government funded support, more and more Indonesian investors are entering the market. Solving the upcoming challenges caused by the city’s fast growth means startups have to be practical, because they need to pay off since day one. For this reason, Jakarta is home to a number of startups focusing on travel, e-commerce and lifestyle.
- Malaysia
The Malaysian city of Kuala Lumpur, with a population of just under 2 million, is also known as one of the best startups cities in Asia. The economy may be smaller compared to, say, that of Delhi, but its proximity to the large Southeast Asian markets makes it an attractive place to start a business.
Malaysian government is supportive to startups. In 2013, the prime minister of Malaysia created MaGIC to help entrepreneurs. Startups can join their programs to equip themselves with skills, knowledge, and network. MaGIC is now the largest startup accelerators in Asia.
GrabTaxi is one notable startup success story. The ride hailing service launched officially in Malaysia in 2011 (it has since moved its headquarters to Singapore). Today, it operates in six countries worldwide, counts more than 3.8 million app users, and is valued at more than $1.5 billion.
Malaysia is a good place to grow regional businesses. From a rules and regulations perspective, it is relatively easy to employ foreign talent in Malaysia, especially with the recent introduction of the MSC Status that permits startups to hire up to 20 foreign employees without restriction.
- China
China is an economic powerhouse, there is no doubt in it. Although the country’s traditions hasn’t been supportive in entrepreneurial endeavours, today’s startup culture is catching up with China. Beijing is already known as one of the best startup cities in Asia, and the access to over a billion people living in China can’t be neglected.
The Chinese startup ecosystem scored high in performance and funding. China also got a fair score in investor experience and access to investment. Foreign start-ups in China are mostly concentrated in big cities such as Beijing and Shanghai, although there is a small number of start-ups for gaming in Chengdu and for hardware in Shenzhen.
However, Hong Kong has been seeing growth in startups from around the world across various industries, particularly in e-commerce, financial technology and hardware. Located in southeastern China, Hong Kong becomes the best city for startups in this country. With roughly 2,000 early and late-stage startups, the city’s proximity to Mainland China gives companies a competitive edge.
Hong Kong is a city where East meets West. Local people get along well with expatriates. Low taxes, minimal government interference and simple incorporation processes are also an advantage. Setting up a business takes an hour to complete and the director doesn’t have to reside in Hong Kong. Historically, Hong Kong has always been very successful in capturing business opportunities by integrating and harnessing the talents and resources in the region and around the world.
- India
Ask any aspiring entrepreneur where they will like to launch their dream startup, and more often than not you will hear the word Bangalore rolling off their tongues in a second. With 4,900 active startups, and $2.3 billion worth of VC investments, the Indian city of Bangalore is known as one of the best place to do business in Asia. Bangalore has the concentration of people, engineers, investors and a more easy-going culture. The city is also hailed as the grandfather of tech startup hubs and often called “The World’s Back Office”.
Indian startup ecosystem has really taken off and come into its own—driven by factors such as massive funding, consolidation activities, evolving technology and a burgeoning domestic market. The numbers are telling—from 3,100 startups in 2014 to a projection of more than 11,500 by 2020, this is certainly not a passing trend. It’s a revolution. And it’s going to change the way the markets are working today in India.
It is not just for being the hot-bed for tech innovations, Bangalore is a great fusion of hi-quality talent, cheaper real estate, better access to capital with a high density of investors and mentorship support, a conducive government that announced initiatives like building one of the Asia’s biggest startup warehouse, an Internet of Things Lab, etc., that attract companies from cities like Delhi and Mumbai and certainly across India.
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