TL;DR – The digital economy contributes 17 percent of Malaysia’s GDP and Malaysia is ready for more growth. Rules and regulations as well as facilities are all already in place – Newly launched Digital Free Trade Zone, and now the Malaysia Digital Hub – all of which will contribute to accelerating the growth of Malaysia Digital Economy.
Malaysia is always working hard to improve its economy. This is to ensure that the people have a good standard of living.
One of the efforts to make our economy stronger is the digital economy.
Finance Ministry Secretary General Tan Sri Dr Mohd Irwan Serigar Abdullah said on April 19 that the digital economy which contributes 17 percent to the country’s gross domestic product is set to exceed the projected target of 20 percent, earlier than 2020.
What is the digital economy?
How does it benefit Malaysians?
The digital economy is a new way for any country to grow its economy. In the old days such as in the 1950s, 1960s, 1970s and the 1980s, Malaysia’s economy relied so much on agriculture such as rubber tapping, growing palm oil and also mining tin. And then the economy grew to the manufacturing and industries sector such as producing televisions, the Proton car and air conditioners for the export market.
And then our economy expanded into the services sector such as offering medical treatment to foreign tourists and offering financial services to investors.
And now, Malaysia is going into the digital economy.
The digital economy is when Neelofa is able to sell her headscarves in Malaysia as well as in 50 other countries such as in England, China and Japan.
The digital economy is when Pak Cik Leman in Kelantan is able to make frozen roti canai which is sold in Tesco Puchong as well as in Carrefour in Paris, France.
Digital economy is all about being able to sell your products in Malaysia and all over the world.
Other examples of the digital economy is buying and selling clothes on-line or developing computer software systems for companies. Another example of companies using the digital economy include Uber and Grab.
The Whole World Is Using the Digital Economy
From the United States to Japan and even Pakistan, everybody is using the smartphone, the Internet, the computer and all the apps. So because of this, the digital economy is the way to go forward and Malaysia must also take advantage of the digital economy by setting up companies to develop these digital products.
These companies which are usually called start-ups, are mostly young Malaysians who are innovative and eager to work hard. There is all sorts of start-up companies such as Food Panda which helps deliver food to your house. There is also lorry.com which helps you find a lorry to transport your stuff from Kuala Lumpur to Johor Bahru.
This is a blessing for Malaysians as these young Malaysians can help push the economy forward.
Digital Economy Corp Bringing in New Investments
Malaysia’s number one information technology agency Digital Economy Corporation which was previously known as Multimedia Development Corp is also helping Malaysia a lot by bringing in the investments.
The newly launched Digital Free Trade Zone will double the growth of Malaysian small and medium scale enterprises increasing global exports by US$25 billion and create 60,000 jobs by 2025.
Tan Sri Irwan said if the Digital Economy continue at this rate, the gross domestic product growth target of 20 percent will grow earlier than 2020.
According to the Star on April 19, Tan Sri Irwan expressed confidence that the level could be achieved earlier as Malaysia had started making waves in the digital economy arena this year, first with the launch of the Digital Free Trade Zone on March 22 and now, the Malaysia Digital Hub.
Malaysia is Friendly to All New Digital Economy Companies
Malaysia is also friendly to all digital economy companies or start-ups. The rules and regulations as well as policies and facilities are all already in place. The Digital Free Trade Zone and the Malaysia Digital Hub for example attracts all the digital economy companies to come into Malaysia. In return, there will be no tax for companies doing business in the zone and the Malaysia Digital hub.
Bernama reported on April 22, the Malaysia Digital Hub offers start-ups an opportunity for global expansion, ready access to high-speed broadband and fibre-optic connectivity, funding and plenty of workers. All these efforts by the government will augur well for the economy which will then benefit Malaysians.
By Nik Haikal Nik Ibrahim
Malaysian Access, 25th April 2017