MALAYSIA has emerged as a rising star in the global digital economy, with its sights set on becoming a digital powerhouse.
At the helm of this transformative journey stands the Malaysia Digital Economy Corporation (MDEC) — a driving force behind the nation's digital evolution for many years.
According to its chief executive officer Ts Mahadhir Aziz, the digital economy is on track to contribute a substantial 25.5 per cent to the nation's gross domestic product by 2025, creating half a million jobs in the process.
"A tapestry of trends has underpinned this phenomenal growth, from increasing Internet penetration and government initiatives to a dynamic start-up ecosystem and the e-commerce boom accelerated by the Covid-19 pandemic," he said.
"Malaysia's rising Internet penetration has opened avenues for digital initiatives and services, while the government's digital transformation commitment is visible through frameworks and policies fostering innovation, entrepreneurship and tech adoption."
In the startup area, Mahadhir said, a dynamic startup ecosystem has spurred innovation across sectors, aided by incubators accelerators and government programmes.
"Fintech advances like mobile payments, digital wallets and innovative services enhance financial inclusion and convenience for consumers. E-learning, healthtech, food and ride-hailing industries are now rapidly digitalising meeting consumer demand for convenient and accessible services."
Unique opportunities abound
Malaysia's digital economy offers a wealth of opportunities to local entrepreneurs and global investors alike.
"With a diverse and rapidly expanding market, a skilled workforce, unwavering governmental support, and a strategic geographical advantage in Southeast Asia, Malaysia presents an ideal landscape for businesses to thrive," said Mahadhir.
"The country has been actively nurturing tech talent to drive the digital economy, with education that will prepare individuals for the digital era. Besides that, Malaysia fosters cross-border initiatives and exchange of expertise through partnerships and knowledge-sharing."
Challenges
Certain foundational pillars emerge as critical components, steering the nation towards a future marked by innovation, efficiency and inclusivity.
As the country forges ahead into the digital era, Mahadhir said it must meticulously address key imperatives that underscore the path to success.
"Malaysia needs to continue to invest in its digital infrastructure, including broadband connectivity, cloud computing and data centres.
"This will ensure that businesses and consumers have access to the high-speed Internet and other digital services that they need."
The country also needs to invest in the development of digital skills among its workforce.
"This includes providing training and education in areas such as coding, data analytics and cloud computing. This will ensure that Malaysia has a skilled workforce that can meet the demands of the digital economy," Mahadhir added.
There is also a need to create a regulatory environment that is supportive of the digital economy. This includes ensuring that regulations are clear, consistent, predictable and do not stifle innovation.
Malaysia needs to also address the security and trust challenges associated with the digital economy.
Lastly, the country needs to ensure that the benefits of the digital economy are shared equitably across society.
"This includes ensuring that everyone has access to digital technologies and services, and that no one is left behind," Mahadhir said.
Digital inclusivity
Inclusivity remains a core challenge, but MDEC is taking strides to ensure technology benefits all segments of society.
Initiatives like #mydigitalmaker, eUsahawan and Global Online Workforce aim to equip Malaysians with digital skills and income opportunities, bridging the digital divide.
Mahadhir said AI is also a potent force reshaping industries worldwide, and Malaysia is positioning itself to capitalise on its potential.
"MDEC's involvement in the National Blockchain and Artificial Intelligence Committee highlights its commitment to fostering AI innovation and talent."
Strategies for resilience
To remain adaptable and resilient in the face of rapid technological advancements and evolving global trends, Malaysia has laid out a robust framework, which includes a commitment to global insights, strategic councils, innovation boost, specialised agencies, global bonds, infrastructure reinforcement and standardisation.
As the digital transformation accelerates, efforts are underway to upskill and reskill the Malaysian workforce. MDEC's #mydigitalworkforce movement offers a range of programmes, including the Digital Skills Training Directory, Digital Up and Let's Learn Digital, to ensure that Malaysians have the skills to thrive in the digital economy.
The future
In the coming five to 10 years, Malaysia's digital economy aims to rank among the world's top 30 economies, driven by government commitment, a thriving information and communications technology sector, innovative technology adoption and a robust policy framework.
MDEC continues to play a pivotal role in guiding Malaysia's digital odyssey.
To make it easy for industry players and investors to know more about the state of Malaysia's digital economy, MDEC has launched Horizon, which plays a vital role in shaping the narrative around Malaysia's digital economy.
"It informs stakeholders, showcases growth trends, fosters collaboration, guides policy and strategy, inspires innovation, attracts investments and talent, monitors progress and enables informed decision-making," said Mahadhir.
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