Key highlights from Malaysia's digital economy plan

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    • Malaysia’s digital economy planMalaysia’s digital economy plan
    09 April 2021


    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.

    Malaysia Digital Economy

    Malaysia Digital Economy

     

    Objectives

    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

    The six strategic thrusts of Malaysia’s Digital Economy Blueprint

     

    Targets

    Malaysia will advance to achieve the following targets in 2025.

     

    People

    People

    • Creation of 500,000 new jobs
    • 100 per cent household with access to internet
    • All students to have access to online learning

     

    Business

    Business

    • 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

     

    Government

    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.

    three phases of implementation

     

    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.

    Download the full infographic

     

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

     

    Julia Goh

    About the author
    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 the UOB Global Economics and Markets Research team’s coverage of Malaysia and is frequently quoted in the local and foreign media on the country’s economic trends and developments and currency.

    Prior to joining UOB Malaysia, Julia covered Malaysia and regional economies at an ASEAN investment bank and contributed to the research team being ranked among the top three in country research on Malaysia at the Asiamoney Brokers Poll for seven consecutive years. She also previously worked in the consultancy sector.

    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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