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.

The Malaysia Digital Economy Blueprint framework comprises of three policy objectives supported by six strategic thrusts.

• Encourage industry players to become creators, users and adopters of innovative business models
• Harness human capital
• Nurture an integrated ecosystem

The six strategic thrusts of Malaysia’s Digital Economy Blueprint

Malaysia will advance to achieve the following targets in 2025.

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.

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Source: Malaysia Economic Planning Unit, UOB Global Economics & Markets Research

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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.