It has been stated by the State of Household 2018 that new businesses which are coming to Malaysia are innovating. It has also been said by some of the reports too like the reports given by the Khazanah Research Institute. They are also not innovating despite of the average percentage of the firms that are driven by different kinds of opportunities. The average percentage is five times the drive which is necessary for the firms. It is also higher than all the other advanced economies too. According to the reports, only a few percent of the businesses which are new have introduced new products which amounts to half of those reported as the advanced countries like the UK and the US.
New businesses in the country do not innovate because it represents a specific area for the Malaysians for looking into and also for the exploration of the prospective new opportunities which are based on the businesses which are well-known for driving innovation in them. the report also stated that the cost of starting a business or the bureaucratic burden had decreased gradually over the years since 2010 to 2016.