MALAYSIA TRANSFORMATION:

FROM TRADITIONAL TO DIGITAL

ECONOMY
DHURAIRAJ P-GSM0143/17| Dr Hong Meen Chee
ESMOND P-GSM0166/17
HANUISYA P-GSM0180/17
SANGGITAH P-GSM0203/17
VICKRAM P-GSM0145/17
TRADITIONAL ECONOMY
VS
DIGITAL ECONOMY

Digital Economy
Application Bartering &
of ICT in trading

Traditional Economy
the within the
economy. global
economy
DIGITAL ECONOMY

IoT, AI,
Cloud

2017
7% GDP
Digital prod

2021
45%,
RM39.11bil
to GDP
 DIGITAL ECONOMY

Malaysia Digital Hub,

Malaysia Tech Entrepreneur Programme (MTEP)
Digital Free Trade Zone (DFTZ)
 BENEFITS OF DIGITAL ECONOMY
• 32 Million Malaysians,
24.5 Million with internet
access (76.6%).
Huge potential for digital
economy.
• Strategy to accelerate
digital business.
Support SMEs, eCommerce
business through “eMarket
place” #EveryoneCanSell
 BENEFITS OF DIGITAL ECONOMY
• Cloud computing; lower
cost, ensure date constantly
backup, prevent system
meltdown.
Big data, AI help SMEs
marketing & sales.
• Job creation, high
technology job. Investment
in smart cities eg.
Cyberjaya.
Cyberview Sdn. Bhd. took
mandate to transform to
Global Tech Hub
 THREATS OF DIGITAL ECONOMY
• Security and privacy issues.
Create anxieties for both
business + consumers. Level
of confidence in security
payment.
• Disappearance of certain
jobs due to automation.
Humans to be replaced by
robots.
Workers need to be upskilled
or to be left out.
 THREATS OF DIGITAL ECONOMY
• Cyber criminals (hacking,
ransomware, scammers).
Cyber threats becoming
more dangerous, may
disrupt the economy of the
country.
• Business such as financial
institution, need heavily
invest in system to avoid
system downtime.
Digital commerce are
expected to be 24/7 ready.
SUSTAINABILITY OF DIGITAL ECONOMY
• Digital Role in 4 key markets
• Energy – make energy
distribution more efficient,
reliable + sustainable. Eg.
Smart grids – balance the
enegy consumption.
• Food – uses of digital tech in
food production, food
distribution. Online purchase
of groceries, QR code. Eg.
fTrace
SUSTAINABILITY OF DIGITAL ECONOMY
• Digital Role in 4 key markets
• Health – reduce
unnecessary hospital visits
by checking remotely (IoT).
Cloud server for patient
monitoring. Eg. CREST
• Finance – online banking,
cashless transactions. Digital
banking, fintech. Eg. BNM
sandbox for fintech to
improve efficiency and
innovation
OPPORTUNITIES OF DIGITAL ECONOMY
• 8th Malaysia Plan – build ICT
infrastructure for public +
Government
private sector.
via
Resulted in 4.7% annual
MCMC
growth ICT usage.
• Collaboration to ensure
success of digital global
economy with the State Local
Government Authorities
implementation of High-
Speed Broadband and Fibre
internet.
OPPORTUNITIES OF DIGITAL ECONOMY
• Legal & Regulatory Framework
for cyberlaws and Intellectual
properties. Eg. Copyright Act
1987, Computer Crime Act
1997, Electronic Commerce
Act 2006.
• Incentive; tax exceptions,
funding, coaching provided to
SMEs/business owners.
Budget 2018, funds for talent
development for Malaysia to
be in the lead in digital
economy in Asia.
 CONCLUSION
• Jack Ma, Malaysian digital
economy advisor.
• Digital Free Trade Zone
(DFTZ)
• SMEs comprised of 98.5%
business establishment in "In carrying out e-commerce, the most
Malaysia. important thing is to keep doing what you
are doing right now with passion, to keep it
up." - Jack Ma
• Transition from traditional to
digital economy.
Q &A
S S