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What does the ASEAN consumer think and feel about the economy? How has spending and financial behaviour changed? Get the latest highlights from the region’s barometer of consumer sentiments.
Key highlights from Malaysia's digital economy plan
Digitally Connected
09 Apr 2021
2 mins read
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Key highlights from Malaysia's digital economy plan
On 19 February 2021, Malaysia launched its Digital Economy Blueprint 2021–2030 that targets to roll out 5G deployment by end-2021 and aims to attract MYR70 billion investments in digitalisation to lift the digital economy to 22.6 per cent of gross domestic product (GDP). Digital transformation aims to enhance productivity and economic activity through the use of digital technology across various sectors of the economy.
30 per cent uplift in productivity across all sectors by 2030
22.6 per cent of digital economy to Malaysia’s GDP
875,000 MSMEs adopt e-commerce
Attract two unicorns (home-grown or foreign)
MYR70 billion investment in digitalisation
Increase the number of start-ups to 5,000
Government
100 per cent civil servants to possess digital literacy
80 per cent end-to-end online government services
Ministries and agencies to provide cashless payment option in 2022
80 per cent usage of cloud storage across the government in 2022
Timeline
The consolidated initiatives and targeted outcomes are set out across three phases of implementation up to 2030.
Impact
Effective execution of the plan would help the country achieve sustainable growth in the medium-to-long term and lift Malaysia into the high-income bracket. Potential catalysts to spur investment growth over the next two to three years include the technology upcycle, rollout of 5G network and accelerated digital transformation.
Several targeted incentives are currently offered to attract high value-added technology investments including a MYR1 billion high-technology financing facility, SME funds for automation and digitalisation, and lower tax rates for companies relocating to Malaysia in high-technology sectors.
Source: Malaysia Economic Planning Unit, UOB Global Economics & Markets Research
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This article shall not be copied, or relied upon by any person for whatever purpose. This article is given on a general basis without obligation and is strictly for information only. The information contained in this article is based on certain assumptions, information and conditions available as at the date of the article and may be subject to change at any time without notice. You should consult your own professional advisers about the issues discussed in this article. Nothing in this article constitutes accounting, legal, regulatory, tax or other advice. This article is not intended as an offer, recommendation, solicitation, or advice to purchase or sell any investment product, securities or instruments. Although reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this article, UOB and its employees make no representation or warranty, whether express or implied, as to its accuracy, completeness and objectivity and accept no responsibility or liability for any error, inaccuracy, omission or any consequence or any loss or damage howsoever suffered by any person arising from any reliance on the views expressed and the information in this article.
About the author
Julia Goh
UOB
Senior economist Julia Goh joined UOB Malaysia in 2015 with 12 years of research experience working in the stockbroking industry. In her current role, she is responsible for economic coverage of Malaysia and is frequently quoted in local and foreign media on the country’s economic trends, developments and currency.
Julia graduated from the University of Melbourne with a Bachelor of Commerce and a First Class Honours in Master of Economics, specialising in international and monetary economics and applied econometric techniques.
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