By Julia Goh
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.
- Creation of 500,000 new jobs
- 100 per cent household with access to internet
- All students to have access to online learning
- 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 eCommerce
- Attract two unicorns (home-grown or foreign)
- MYR70 billion investment in digitalisation
- Increase the number of start-ups to 5,000
- 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
The consolidated initiatives and targeted outcomes are set out across three phases of implementation up to 2030.
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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