As we enter 2026, it’s only fitting that we look at the startups that will possibly thrive in their respective industries moving forward. There are several national initiatives planned to further strengthen the startup and innovation ecosystem. For example, the KL20 Action Plan, which aims to position Kuala Lumpur as a top 20 global startup hub by 2030 with a strong focus on investment attraction, regulatory support, talent development and deeper links between local companies and global markets.

At the same time, Southeast Asia’s tech landscape itself is evolving rapidly. Geopolitical shifts, the rise of AI and automation, and a fast-maturing digital consumer base are creating new pressure and new possibilities for tech founders. Capital is flowing back into early-stage ventures, but investors now expect clear revenue pathways and regional ambition from day one.

With 620,000 jobs at risk and RM1.6 billion already allocated, why is Malaysia still failing to upskill and reskill effectively?

This backdrop has created a proving ground for Malaysian startups. The ones gaining momentum are those building infrastructure that entire industries rely on, signalling a shift away from local consumer apps toward scalable B2B platforms with cross-border potential. 

Here’s a closer look at five Malaysian tech startups to watch in 2026:

Earned wage access as financial infrastructure with Paywatch

Paywatch is a Kuala Lumpur-based fintech company that provides earned wage access for employees. Their service allows workers to access part of their earned salary before payday. It also offers financial education and tools for employers to support workforce stability. The company positions earned wage access as part of a long-term financial infrastructure model rather than a short-term benefit.

Recently, Paywatch closed a 20 million US dollar Series A round led by Kakao Pay and Artem Ventures. The company now has over 50 million US dollars in capital that can help support its expansion plans in Southeast Asia.

As they grow beyond the region, they also aim to grow into a full employee benefits platform that includes insurance options, financial wellness services and savings features. As we approach 2026, we will see whether the model can actually scale across different labour markets in the region.

Naluri is exporting Malaysian digital health to the region

The second startup we need to closely look out for is Naluri. They are a Malaysian digital health and employee wellbeing platform.

What they do is that they combine chronic disease management, behavioural and psychological coaching and mental health support. A lot of their users are employers and insurers who use the platform to reduce long-term healthcare costs and improve workplace wellbeing. The platform integrates coaching sessions, data-driven health plans and assessments.

Mid-August this year, Naluri successfully secured an additional 5 million US dollars for its Series B round. This brought the total Series B amount to 14 million US dollars. They plan to expand into Vietnam and the Philippines while at the same time further strengthening its enterprise tools for existing clients across Southeast Asia.

Naluri’s trajectory clearly shows a maturing health technology sector in Malaysia. So, rather than running pilot programmes with limited scope, the company is building regional infrastructure for workforce health.

Aerodyne Group is scaling with drones and data worldwide

The third startup is Aerodyne Group. Aerodyne Group is one of Malaysia’s most globally recognised deep tech companies. What they do best is operate drone and data intelligence services in over 30 countries.

At the same time, they support large-scale mapping and energy asset management, agricultural monitoring, as well as infrastructure inspection.

Interestingly, Aerodyne is the official Amazon Web Services partner. What this proves is that their DRONOS platform meets global standards for cloud-based drone analytics. Last year, they announced a partnership with DroneDash to explore cross-border drone deliveries between Malaysia and Singapore. Aerodyne’s rise clearly shows that Malaysia can create and deliver export-ready deep technology with real industrial value.

StoreHub is powering omnichannel retail and food businesses

StoreHub is a Malaysian-founded cloud point of sale platform that supports restaurants and retailers across Southeast Asia. They provide point of customer relationship tools, analytics and online ordering features and sales systems and inventory management. StoreHub serves thousands of small and medium-sized businesses in Malaysia, the Philippines and Thailand.

Southeast Asia’s consumer spending has significantly improved, so SME operators need reliable platforms that allow them to run their businesses efficiently. StoreHub does not rely on headlines or hype, but it continues to provide essential tools that many businesses depend on. Next year, we will see whether the platform can deepen regional reach.

Soft Space is Malaysia’s fintech infrastructure champion

Last but definitely not least is Soft Space. Soft Space is a fintech as a service company based in Kuala Lumpur. They work with over 90 financial institutions in over 30 markets.

They are known for their tap-to-phone payment solutions and mobile point of sale. These tools help merchants accept contactless payments through smartphones without the need for additional hardware.

In August 2025, Soft Space was listed in the Forbes Asia 100 to Watch. This recognition reflects a strong regional interest in their technology and potential for cross-border growth. Soft Space builds the underlying infrastructure that enterprises and banks utilise to enable digital payments. Their growth shows that Malaysia can be a meaningful exporter of fintech technology.

What this shift says about Malaysian startups

What these five startups represent in their respective industries reflects a broader shift toward business models that can help solve structural problems.

With all startups chasing trends, their models are not sustainable in the long run, which will slow them down further. What makes these startups different is that they are aligned with national plans that promote cross-border scale and long-term digital competitiveness.

Now, if Malaysia maintains this clear direction, there is no doubt that 2026 could be the year that proves Malaysian startups can build and provide technology that lasts and competes regionally.