PM: Digital economy to add more than 25.5% to GDP

KUALA LUMPUR: The Malaysian digital economy is expected to contribute more than 25.5% to the nation’s gross domestic product (GDP) by 2025, said Prime Minister Datuk Seri Ismail Sabri Yaakob.

Revealing that the digital economy contributed 22.6% to the GDP in 2020, he said fast-growing sectors such as e-commerce contributed 11.5% to the GDP in 2020, compared to 8.5% in 2019.

“As of December 2020, there were 2,700 local and foreign companies with active MSC status in Malaysia,” he said during his speech at the launch of Malaysia Digital here yesterday.

MD is a national initiative by the government to encourage and attract companies, talent and investment while enabling Malaysian businesses and people to play a leading part in the global digital revolution and digital economy.

The nine key growth sectors that MD will focus on are digital tourism, Islamic digital economy, digital trade, digital agriculture, digital services, digital cities, digital health, digital finance, and digital content.

Making a point: Ismail Sabri attending the launch of Malaysia Digital at Kuala Lumpur Convention Centre. — FAIHAN GHANI/The Star

Ismail Sabri also announced that the Cabinet had also agreed for the Communications and Multimedia Ministry to establish the Malaysia Digital Coordination Committee (MD-CC), which will coordinate the governance and operations of Malaysia Digital, including awarding MD status to companies.

For starters, six companies have been awarded MD status so far, namely Bytedance System Sdn Bhd, Bridge Data Centers Malaysia (III) Sdn Bhd, GDS IDC Services (Malaysia) Sdn Bhd, Abbott Laboratories (Malaysia) Sdn Bhd, Aceteam Connect Sdn Bhd , and Peninsula Apex Technologies Sdn Bhd.

In order to achieve the visions of MD, Ismail said two initial Malaysia Digital Catalytic Programs (PEMANGKIN) through DE Rantau and Digital Trade have been introduced.

“DE Rantau is a program to boost digital adoption and promote professional mobility as well as drive tourism across the country, with the goal of establishing Malaysia as the preferred Digital Nomad Hub.

“Digital Trade, on the other hand, will drive interoperability and greater harmonization of standards and regulatory approaches. It will facilitate trade within and across borders in line with the National E-Commerce Strategic Roadmap,” he said.

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