Malaysia Invest in Data Driven Economy

Malaysia trying to invest in data-driven future, but there are still obstacles

Currently there is a big movement that countries are following that consists on seeking to get a step ahead of their peers in the field of digital transformations.

One of these countries is Malaysia, which has openly and constantly expressed a desire to be the known and best destination for high-tech industries in all of Southeast Asia.

Recently, Malaysia’s Finance Minister Lim Guan Eng revealed Malaysia National Budget for 2019. The International Data Corporation (IDC) says this was a very big step in the direction of the country to achieve their vision to become a completely connected digital economy that is fueled by data and data centers.

IDC pushes for direct support for Public-Private Partnerships (PPPs) which is critical to focus the country’s resources and drive their economic growth. 

“The growth of digital economies is becoming an ever more impactful part of the global economy,” says IDC Asia Pacific IoT and Telco research director Randy Roberts.

“The transition to a digital economy is a key driver of growth and development because it can provide a boost to the country’s productivity across all sectors and it creates an attractive environment for new investments from outside Malaysia.”

Roberts also adds that Malaysia’s digital economy is just in the early stages of creating an infrastructure with core technologies such as cloud, big data, analytics, AI, mobility, social business, robotics, IoT, and 3D printing, but that it is rapidly advancing with substantial growth among SMEs.

“As the fourth industrial revolution becomes a key driver of the digital economy, entrepreneurs and SMEs need to assess fundamental aspects of their business, including what products and services they sell, how they deliver them to the market, the new skillsets required and how they need to organize to support their operations,” says Roberts.

“Now is the time to take advantage of the new policies of the government and partner to accelerate new digital businesses.”

IDC says Indonesia and Singapore are clear examples where PPP’s have worked successfully in the past, in where the combination of public policy and entrepreneurship is moving forward the digital economy, which includes smart city and mobile commerce services. This is what Malaysia as a country should aim for as they are striving to become a country with a digitally-driven economy.