Sidec Unplugged: Powering Startups and Driving Selangor's Digital Revolution

Sidec (Selangor Information Technology and Digital Economy Corporation) is a government agency in Selangor, Malaysia, focused on driving digital transformation, supporting startups, and helping SMEs adopt technology. Established in 2015 and incorporated in 2021, Sidec plays a key role in fostering innovation, promoting e-commerce, and advancing deep tech sectors like AI and semiconductors. It also runs accelerator programs, business summits, and international outreach initiatives to position Selangor as a leading digital hub in ASEAN. With that, why don’t you join me in learning more about Sidec with its Chief Operations Officer, Mr. Loo Chuan Boon. 

What is Sidec and can you share an overview of its mission and role in Selangor’s digital transformation?

Sidec, or the Selangor Information Technology and Digital Economy Corporation, was established in 2015 and later incorporated in 2021 as a government agency under the Selangor state government. Our primary mission is to drive Selangor’s digital transformation by supporting SMEs and startups in adopting technology to grow their businesses. Initially, our focus was on SME digitization, particularly in e-commerce, helping businesses transition to online platforms to expand their reach and revenue. Over the years, our scope has evolved to include deep tech innovations such as AI and semiconductors. Last year, we were given the mandate to lead Malaysia’s semiconductor initiatives, and we recently launched the first phase of this effort, with further developments set to be announced soon. As the leading digital transformation agency in Selangor, Sidec is committed to fostering innovation, supporting local enterprises, and positioning the state as a regional leader in technology and entrepreneurship.

How does Sidec differentiate itself from other digital economy agencies in Malaysia?

Sidec takes a focused approach to digital transformation, leveraging Selangor’s position as Malaysia’s most populous state. With nearly 10 million people, including Kuala Lumpur, we have a strong talent pool, investor network, and startup ecosystem. We work closely with agencies like MDAC but stand out in e-commerce, having led initiatives since 2015, including the Malaysia E-Commerce Top Merchant Award—the only award exclusively for online sellers. Our Selangor Accelerator Program has also expanded into specialized tracks for AI, deep tech, and retail tech, further strengthening our role in supporting SMEs and startups.

Additionally, Sidec is at the forefront of Malaysia’s semiconductor push, a key focus amid the global US-China trade shift. We lead the Malaysia IC Design Park, incubating engineers, providing training, and facilitating venture capital for semiconductor companies. While many agencies share similar objectives, Sidec stands out as a leader in digital transformation, e-commerce, and emerging technologies.

What are the key programs Sidec has launched to support startups and SMEs in Selangor?

At Sidec, we focus on three key verticals: SMEs, startups, and semiconductors, which drive our innovation efforts. One of our flagship initiatives is the Malaysia E-Commerce Top Merchant Award, which supports e-commerce players by helping them leverage live streaming and digital sales channels. Our accelerator programs are also a major priority, with dedicated tracks for AI and deep tech, as well as retail tech, which we rebranded from our previous e-commerce initiatives. Since SMEs are the backbone of Selangor’s economy, we aim to help them scale and digitize. Additionally, our Malaysia IC Design Park is attracting international semiconductor companies, further strengthening Malaysia’s role in chip design and manufacturing while fostering deep tech and AI innovation.

Beyond these programs, we prioritize global market access for startups and businesses. Last year, we facilitated international exposure by bringing startups to the Philippines, Vietnam, and SusHI Tech. We also host the Selangor International Business Summit, one of the largest business gatherings in ASEAN, featuring networking events, pitching competitions, and discussions on AI, semiconductors, and digital economies. Ultimately, our goal is to position Selangor as a leading hub for digital innovation, both locally and internationally.

Can you share success stories of startups or SMEs that have benefited from Sidec’s programs?

One great success story from our program is NexMind AI, which started in 2021. They began with a solid product, and through our accelerator program, we helped them gain international exposure by bringing them to the 2022 World Expo in Dubai. Over time, they evolved their business model, shifting from AI language models to legal tech, now operating as NexLaw. This is a common trend we see—startups start with one idea, but through mentorship, market exposure, and business development, they pivot and discover new opportunities. Last year, we also brought five startups to the Philippines, including a cybersecurity and AI-focused company, Alphasys (which specializes in drones), Bajujana (Malaysia’s largest Muslim fashion marketplace), and Homesifu (a home services marketplace). These companies benefited from our pitching competitions, demo days, and networking events, which connected them with investors and industry leaders.

Our accelerator program is unique because it runs for three to six months, offering startups mentorship, industrial visits, and extensive networking opportunities. Around 67% of participants secure funding or grants, which is a testament to the program’s impact. With over 200 startups in our ecosystem, many have expanded beyond Malaysia, reaching markets in China and the U.S. 

Are there any upcoming initiatives or partnerships that businesses should look forward to?

As we celebrate our 10th anniversary, we’re looking at new directions, particularly in semiconductors, AI, and deep tech. While our startup programs have always supported a variety of tech-driven businesses, we see a growing need to strengthen Malaysia’s AI ecosystem. Additionally, with Malaysia chairing ASEAN in 2025, we see this as a great opportunity to elevate the region’s startup ecosystem. We aim to bring together startup players from across ASEAN to collaborate, form strategic partnerships, and create a more connected entrepreneurial landscape. 

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Loo Chuan Boon is the Chief Operations Officer of Sidec, overseeing the agency’s strategic execution, operational efficiency, and key initiatives to drive digital transformation in Selangor. He plays a pivotal role in supporting startups, SMEs, and businesses through Sidec’s various programs. With a strong commitment to fostering a thriving digital economy, Loo works closely with industry leaders to position Selangor as a leading tech and business hub in the region.

Visit www.techshake.asia if you would like to know and connect more with Sidec.