Business

Digitalisation could create RM257 bil in annual economic value by 2030

Country must seize digital transformation opportunities, says Tok Pa

Updated 4 years ago · Published on 21 Oct 2021 4:30PM

Digitalisation could create RM257 bil in annual economic value by 2030
Datuk Seri Mustapa Mohamed says the digital economy is expected to contribute 22.6% to Malaysia's gross domestic product by 2025. – Bernama pic, October 21, 2021

by Arulldas Sinnappan

KUALA LUMPUR – Digital transformation could unlock up to RM257.2 billion (US$61.3 billion) worth of economic value annually in Malaysia by 2030.

Hence, Malaysia should seize digital transformation opportunities as it is not only critical for the country’s economic recovery efforts but also enhances Malaysia’s future economic resilience.

Quoting a study by strategic economics consultancy company AlphaBeta, Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed said that Malaysians have shown remarkable resilience as they evolve and adapt to the changing situation brought about by the pandemic.

“We are therefore committed to achieving this with the MyDigital initiative, which sets its sights on transforming Malaysia into a technologically advanced, digitally-driven nation and a regional digital economy leader by 2030. 

“We aim to create a better, more inclusive digital economy future for every Malaysian,” he said in his opening remarks at the virtual 'Grow With Google' event here today.

Through the initiative, the digital economy is expected to contribute 22.6% to Malaysia's gross domestic product by 2025 and create 500,000 new jobs, he said.

“There will also be more opportunities for businesses to build and expand, with digital revenue streams to increase cost efficiency through cloud technology.”

Mustapa said that the government targets to have 875,000 micro, small and medium enterprises (SMEs) embracing digital e-commerce by 2025, adding that the government also aims to bring 80% of its services online by 2025, as a digitally enabled government will improve efficiency, effectiveness, and transparency.

Google Malaysia Managing Director Marc Woo said that Malaysia has a growing interest in online communications in the digital era.

This past year, many Malaysians have shown great resilience in facing the pandemic, and demonstrated the courage and readiness to innovate. 

“Coupled with the fact that Malaysians are spending more time online and using digital services in the post-pandemic future, digital adoption is crucial for businesses.

“We have also collaborated with esteemed partners to launch programmes such as AirAsia Academy (formerly known as Redbeat Academy) and ‘Wanita Cukup Berani’ by Nestle, alongside our own ‘Mahir Digital Bersama Google’ programme, to help businesses of all sizes and professionals of all backgrounds build their businesses and careers,” Marc said.

He also said that this has motivated Google to continue offering free workshops and easy-to-use tools to help micro-SMEs digitalise and reach more customers online.

“To promote digital trade opportunities, YouTube serves as an important platform for local content creators to expand their presence globally and provides an alternative source of income, particularly during the economic downturn due to the Covid-19 pandemic. 

“For example, Malaysian content creators like Sugu Pavithra and Les’ Copaque have succeeded in leveraging YouTube to reach a global audience,” he said.

He also said that digital adoption in Malaysia remains low and uneven across business sectors and sizes, especially among SMEs. 

Malaysia Digital Economy Corporation (MDEC) cites the digital skills shortage and the perceived high cost of investment in digital tools as the key reasons for the low digital adoption rate.

“In order to fully leverage the opportunities presented by digital transformation, three main pillars of action have been identified and can be undertaken by Malaysia to facilitate digitalisation in both the public and private sectors, build the nation’s digital talent, and promote digital trade opportunities,” Marc added. – The Vibes, October 21, 2021

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