Digital economy to contribute 22.6% of GDP and create 500,000 jobs by 2025
22 Oct 2021
Govt targets 875,000 MSMEs to embrace digital e-commerce in society and aims to bring 80% of its services online for both by 2025
Malaysia’s digital economy is expected to contribute 22.6% of Malaysia’s GDP and create about 500,000 new jobs by the year 2025, says Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed.
He said Malaysia remains committed to its target of becoming a technologically advanced, digitally-driven nation and the regional digital economy leader by 2030 as set out under the MyDigital initiative.
“For businesses, there will also be more opportunities for businesses to build and expand, with digital revenue streams to increase cost efficiency through cloud technology,” he said.
He added that the government targets 875,000 micro, small and medium enterprises (MSMEs) to embrace digital e-commerce in society and aims to bring 80% of its services online for both by 2025, as a digitally-enabled government will improve efficiency, effectiveness- ness and transparency.
“We believe in the importance of public-private partnership, where the private sector must be equal partners in driving MyDigital so we can achieve our digital eco- nomic goal.
“The government will be a catalyst, creating a facilitative policy environment so that the private sector can bring the necessary capital and skills for digital transformation,” he said in his speech during the Grow with Google 2021 live stream event yesterday.
Mustapa said, according to AlphaBeta research, the digital transformation has the potential to generate up to RM257.2 billion, with a significant 72% or RM184 billion driven by technologies that can help businesses and workers mitigate the effects of Covid-19 in annual economic value in Malaysia by 2030.
“During this challenging period, Malaysians have shown remarkable resilience as we evolve and adapt to the changing situation brought about by the pandemic.
“The digital economy and technologies are crucial in helping businesses stay afloat, allowing students to continue learning, job seekers to continue upskilling through online courses and families to stay connected,” he said.
Mustapa further added that Google has been a committed industry partner in advancing Malaysia’s economic recovery and our digital economic vision, such as Google’s flagship scaling programme — Mahir Digital Bersama Google — which provides free training for MSMEs to help them grow their businesses online.
“More than 15,000 Malaysians have benefitted from it, and we encourage similar initiatives from the private sector since the programme was launched in 2019.
“As we move forward, I hope that my digital initiative will set the country on the path to capture the digital economy opportunity and benefit our rakyat, businesses and broader society,” he added.
Commenting on Google’s contributions to each pillar, Google Malaysia MD Marc Woo (picture) said: “To promote digital trade opportunities, YouTube serves as an important platform for local content creators to expand their presence globally and provides an alternative source of income, particularly during the economic downturn due to the Covid-19 pandemic. For example, Malaysian content creators like Sugu Pavithra and Les’ Copaque have succeeded in leveraging YouTube to reach a global audience.”
AlphaBeta founder and MD Dr Fraser Thompson added that the report estimates that Google’s products bring about a total annual business and consumer benefit of around RM40 billion in economic value, which is equivalent to the annual gross output of Malaysia’s real estate industry.
“By enabling businesses to unlock new revenue streams and expand their businesses through the use of advertising platforms, Google indirectly supports over 31,000 jobs locally,” he said.
Source: The Malaysian Reserve
