Supporting Entrepreneurs: A Look at 2024 Government Policies for Startups in Asia

Across Asia, governments are increasingly recognizing the role that startups play in driving economic growth, technological innovation, and job creation. Many Asian governments have rolled out targeted policies designed to fuel the growth of emerging businesses, especially in key sectors such as technology, healthcare, and finance. These policies encompass a wide range of initiatives, including funding programs, regulatory reforms, and tax incentives aimed at creating a more conducive environment for startups to flourish. 

In 2024, several countries have introduced or expanded measures to support startups to strengthen their innovation space and encourage global competitiveness.

Key Government Policies Supporting Startups in Asia:

• Thailand – DEPA Digital Startup Fund (January 2024)

The Digital Economy Promotion Agency (DEPA) in Thailand launched the DEPA Digital Startup Fund, aimed at supporting the global expansion of Thai digital startups. The government allocated up to 1 million baht to 15 early-stage projects in sectors such as healthcare, tourism, education, and smart cities. This initiative, operating as an “angel fund,” targets startups that have been registered for no more than three years, focusing on fostering innovation and facilitating international growth.

• Malaysia – Single Window Initiative (April 2024)

Malaysia’s Ministry of Science, Technology and Innovation (Mosti) introduced the Single Window Initiative to simplify bureaucratic processes for startups. This program consolidates resources and approval procedures within a unified platform, helping entrepreneurs navigate the startup landscape more efficiently. Additionally, Minister Rafizi Ramli announced plans for the KL20 Summit, aimed at accelerating Malaysia’s startup ecosystem.

• South Korea – Startup Korea Fund (April 2024)

South Korea’s Ministry of SMEs and Startups unveiled the Startup Korea Fund to strengthen venture investments and attract private capital into the ecosystem. The fund operates on a unique structure, with only 30% of the funding coming from the government, encouraging greater private sector involvement. Alongside this, the Hana Super Gap Mutual Growth Indirect Fund has garnered attention from the venture investment sector, signaling South Korea’s commitment to boosting startup ventures.

• India – Budget 2024: Abolishment of Angel Tax (July 2024)

In India’s 2024 budget, Finance Minister Nirmala Sitharaman announced the abolition of the angel tax, a significant burden on startups. This move will exempt startups from tax on investments exceeding their fair market value, effective from April 1, 2024. This reform is expected to ease compliance for startups and encourage local investments, particularly benefiting emerging entrepreneurs.

• Indonesia – Golden Visa Scheme (July 2024)

Indonesia introduced the Golden Visa program to attract foreign investors and skilled professionals. The initiative offers long-term visas in exchange for investments, such as $2.5 million for a five-year visa. This program aims to bring in high-quality talent and capital, fostering economic growth and innovation in Southeast Asia’s largest economy.

• Japan – Tax Reforms to Support Web3 Startups (August 2024)

In August 2024, Japan’s Minister of Economy, Trade, and Industry Takeru Saito announced a series of tax reforms designed to support the growth of Web3 and blockchain startups. These reforms aim to create a favorable environment for Web3 entrepreneurs and attract global developers to Japan. Prime Minister Fumio Kishida emphasized the potential of Web3 technologies to address societal challenges, reinforcing Japan’s commitment to fostering innovation in the digital space.

• Singapore – Funding Expansion for Deep-Tech Startups (October 2024)

Singapore announced an additional S$440 million in funding for the Startup SG Equity scheme, aimed at supporting deep-tech startups. The new funding will increase the investment cap per startup from S$8 million to S$12 million. This initiative is part of Singapore’s broader strategy to enhance innovation and research, as outlined in its Research, Innovation, and Enterprise (RIE) 2025 plan. The scheme, which has already benefited over 330 startups, will help deep-tech companies scale by matching private-sector investments.

Across Asia, governments are increasingly recognizing the importance of nurturing startup ecosystems as key drivers of economic growth and innovation. From Thailand’s angel funding initiatives to Singapore’s deep-tech support, these policies are providing much-needed resources and incentives for entrepreneurs. The initiatives offer a glimpse into the future of the region’s startup space that highlights the growing role of government in supporting a dynamic and competitive business environment.