In the wake of 5G implementation, Malaysian industries are shifting. With the government successfully reaching 33.2 per cent of its targeted 5G network rollout in populated areas this year, a more widespread implementation of 5G-enabled business models is dawning. As a result, businesses are preparing for the myriad of changes that will inevitably follow the bump up to 5G, such as shifting customer demands and adapting to more modernised processes.

This implementation will affect a wide range of sectors, especially with the national goal to provide 5G services to as many users and businesses as possible in the shortest amount of time, allowing Malaysia to achieve the government’s ambition of the fourth industrial revolution (IR4.0) and catch up with its regional peers. IR4.0 aims to increase operational efficiency by coactive interconnectedness between people and machines, information transparency and the ability of cyber physical systems to make decisions on their own and to perform their tasks as autonomously as possible.

Thus, IR4.0 depends highly on interconnectivity and smart automation. A part of this phase of industrial change is the integration of technologies like artificial intelligence. The global production and supply network is actively shifting from traditional practices to modern smart technology such as large-scale machine-to-machine (M2M) communication and the Internet of Things (IoT).

As 5G plays a key role in accelerating the deployment of these technologies, I see great merit in ensuring we utilise and apply it effectively to our current infrastructure. This will allow us to enhance immediate tech-based solutions such as autonomous vehicles, enhanced cybersecurity, and digital-enabled increased workforce productivity, strengthening local preparedness to use 5G on a larger scale in the coming months.

The world’s mobile network operators are currently in the early stages of the rollout of their public 5G networks. In most developed countries, coverage is still patchy, with operators focusing their attention on major cities and other areas of high demand. The initial business case for public 5G investments, especially in Malaysia, concentrates on enhanced Mobile Broadband (eMBB) use cases. Operators are still looking to shift existing and new smartphone users over to 5G networks, and to compete with fixed-line broadband providers by offering 5G connections to homes and workplaces.

Businesses, however, won’t have to wait for the configuration of public infrastructure before they can start benefiting from 5G networks. Many early adopters of the technology are expected to use private networks, installing their own 5G base stations in factories and industrial parks.

Private 5G networks offer some compelling benefits to organisations. The technology promises improved performance in environments filled with metal objects and radio-frequency interference, for example, and even offers significant new network control options.

Using the network slicing capability of 5G, owners can fine-tune the connectivity offered to different devices on the same network, so that autonomous robots could be guaranteed fast, reliable connections, without having to compete for bandwidth with less safety-critical applications. 5G architecture now also addresses gaps that have long plagued pre-existing wireless technology, such as concerns on energy consumption, coverage availability, reliability, scalability, and cost.

5G and All that Transforms with It

As business models adapt to 5G and move up their position in the value chain of business deliverables, securing business software from cyber vulnerabilities is becoming an increasingly high priority. Wireless connected supply chains will become tempting targets for cybercriminals who may try to intercept communication to gather information on goods or customers and disrupt networks to interfere with operations.

With its high-speed connectivity, 5G networks can in fact accelerate the identification of these cyber threats and run faster analyses, allowing businesses to act quickly against scams and hackers. Blockchain-enabled 5G networks will also encrypt and authenticate data in a decentralised way that will complement the modern device communication with data governance and security.

Business processes will be able to leverage this technology as the 5G ecosystem will enable the wide use of blockchain and Internet of Things (IoT). IoT-integrated systems automate workflows, while a system built on blockchain enables business processes to use big data with transparency, reliability and security. With measures in place to address vulnerabilities, business operating models will be more agile and adaptable towards change, from top-level strategy through mid-level management and all the way down to ground-level operations.

As technologies are more readily available and adaptable to meet the dynamic business environment, workforce automation enabled by 5G networks will allow teams to work together seamlessly which will then enable businesses to maximise their workforce’s capabilities by providing them a more cognitive demanding job scope. Once this is actualised, gaps between businesses that adopt technologies and those that do not will become even greater, leaving them behind in the expanding IT infrastructure. Thus, businesses must invest in implementing technology that adheres to the operational framework of 5G networks to reap their future-proof benefits.

Furthermore, innovations require people to change, develop new skills, adopt new processes, and amend long-established working methods. For Malaysia’s accelerated digital advancement, we must nurture a talent pool that could configure and manage these advanced systems. The skills required should be cross-disciplinary, spanning cloud computing, programming and engineering. Furthermore, we need an ecosystem with multidisciplinary participating stakeholders to drive this towards success.

Consequently, this will also change how we contribute to the industry, accelerating technological innovations through sustainable practices that will ensure business longevity in an always-changing environment. The next step forward in making this happen would be to form strategic alliances within the tech industry to address the business transformational needs of ESG across all industry verticals.

A strong domestic supply chain will build a more circular and sustainable business ecosystem in the nation – ultimately giving Malaysia the competitive advantage in a constantly evolving business landscape.

Choo Tzer Maan is Director of ELMLAB, a research and development service provider that offers customisable digital solutions for various industries.

Source: Bernama

5G is Rolling Out. So, What’s Next for Businesses in Malaysia?

Solarvest Holdings Bhd (SHB) unveiled a new brand promise, ‘Energising the Next’, to expedite its transformation into a regenerative clean energy expert and accelerate the world’s decarbonisation journey into a net-zero future.

The three brand pillars encapsulate SHB’s aim of establishing a resilient and sustainable ecosystem while maximising the potential of all stakeholders and creating continuous value for many generations to come.

The company also unveiled a new logo to represent SHB’s moving forward aspirations of Planet, People & Progress.

As the world strives for net-zero emissions by 2050, SHB is committed to energising people on their decarbonisation journey.

As such, SHB plans to engage in green innovations encompassing energy efficiency solutions, electric vehicle infrastructure, renewable energy certificates (REC), battery energy storage systems (BESS), and green hydrogen and to incorporate other renewable energy sources such as hydropower and biogas.

Executive Director and group chief executive officer Davis Chong Chun Shiong said the company’s 10th-anniversary celebration commemorates the important milestone of SHB’s journey from a startup in the solar industry to becoming a recognised name as a clean energy specialist.

“Across our ventures in residential, commercial, and industrial, as well as utility-scale projects, we have powered an aggregate of 400 megawatts (MW) of solar capacity all over the country.

“Presently, SHB is developing 50 MW worth of solar assets, which were awarded to us under the large-scale solar (LSS4) scheme.

“Next, leveraging on our expertise in the industry, we are striving for a one gigawatt-peak (GWp) solar capacity installation by 2025,” he said in a statement today.

Davis said that to further solidify SHB’s foothold in the renewable energy space, the company is expanding its capabilities beyond solar by repositioning itself as a regenerative clean energy expert.

“Through our corporate vision of energising a regenerative world, SHB aims to uplift the quality of life and enable meaningful transitions to a net zero carbon economy by making clean energy more reliable, accessible, and affordable.

“With that in mind, SHB is venturing into a vertical expansion across the clean energy ecosystem with green technologies to build a resilient and sustainable ecosystem for future generations to enjoy,” Davis said. 

Source: NST

Solarvest plans to forge green innovations across industries

Investors in Malaysia are increasingly interested in sustainable investments due to their desire to help restore the environment and hedge against environmental, social and governance (ESG) risks.

In fact, according to Standard Chartered’s Sustainable Banking Report 2022, the top ESG priorities for the Malaysian investors it surveyed are climate change and carbon emissions, pollution and waste management.

“In the past, sustainable investing used to draw interest mainly from wealthy investors who would channel a mix of their philanthropic and investment budgets, with most of the products coming from private markets, which are not easily accessible to most clients,” says Sammeer, managing director and head of consumer, private and business banking at Standard Chartered Malaysia.

“Nowadays, sustainable investments are being explored by a much broader spectrum of people, as many more solutions and opportunities that require less entry capital become available in the more accessible public markets.”

However, Malaysian investors are still cautious about the short-term volatility of sustainable investment assets in terms of financial performance and risk, according to the survey. They also indicated difficulty in accessing sustainable investments, some of which are only available through technological platforms, and the inability to compare sustainable investment opportunities within the same asset class.

If these challenges are addressed, the potential for growth in sustainable investments is huge. Malaysia alone has a retail sustainable investment potential of US$35 billion by 2030. It is also critical for capital to flow to sustainable investments.

“The world must act now if it is to deliver the United Nations Sustainable Development Goals (SDGs) for a more sustainable society by 2030, as there is currently an annual funding gap of US$2.5 trillion. This presents a massive opportunity to channel private capital through sustainable investments to bridge this gap,” says Sammeer.

“With interest in sustainable investing at an all-time high, now is the time for investors to make the highest impact through sustainable investments.”

Standard Chartered is doing its part by including sustainable investing in its advisory framework and solutions. For instance, it offers multiple sustainable funds for retail investors and has introduced Sustainable Time Deposits, which are used to support the SDGs.

Meanwhile, the Green Mortgage offers preferential rates on financing for residential properties that are certified green. Its self-directed digital investing platform SmartDirect makes sustainable investments widely accessible to investors.

“There is no one-size-fits-all approach as each subset of retail investors requires personalised solutions that are relevant to their life goals, behaviour, ESG priorities, motivations and key barriers,” says Sammeer.

Source: The Edge Markets

Sustainable investments becoming mainstream

This period of uncertainty and risk is undoubtedly putting the capabilities and resilience of both employees and organisations to the test. Staying relevant in today’s fast-changing and highly competitive job market is one. Balancing the need to stay productive and recover from both work and non-work stress is another.

The Covid-19 pandemic has transformed the concept of work, the workplace and the workforce, driven by the fast-rising adoption of technology. Still, technology has been both a blessing and a bane.

For one, digital transformation has empowered the workforce to be more productive and pushed businesses to innovate in order to stay ahead of the curve and competition. On the flipside, it has cast a spotlight on the technological incompetence of society, which has resulted in the glaring skill gaps and talent shortage. If left unchecked, this issue may affect the health of industries across the board. 

Over the past few years, graduates have struggled to secure full-time employment amid the widespread pandemic-induced retrenchments and ensuing fierce competition to fill the void. In fact, the Ministry of Human Resources revealed that many Malaysian graduates are turning to the gig economy for part-time jobs to make up for the current lack of job security.

The employer-employee checklist conundrum

The discrepancy between the skills people have today and the ones needed for their future career is growing at an unmatched rate and will worsen if no strategic measures are put in place to address this. 

In today’s landscape, having a degree under one’s belt is no longer sufficient to guarantee placement and retention in the workforce. With competition showing no signs of abating, graduates are scrambling to improve their employability — still, with academic performance just one of the many items on every employer’s checklist, how else can future employees equip and future-proof themselves?

It is important for graduates to keep abreast of developments in today’s working world. As such, understanding the hiring criteria and ideal requirements of today’s employers is imperative. 

Organisations, for one, are prioritising critical, creative thinking and digital skills. These are skills harnessed through knowledge and practice of new emerging technologies such as analytics, programming and artificial intelligence, which are essential in the current and booming digital economy. 

Here, we will explore three key areas that will give today’s graduates the much-needed shot in the arm.

Embrace lifelong learning 

As the workforce becomes increasingly volatile, uncertain, complex and ambiguous, employees need to embrace a “lifelong learning” approach to constantly equip themselves with the necessary skills to face and rise up to the various challenges of the workforce. Throughout a person’s career, upskilling — or the improvement of one’s skill set — is crucial.

For students to develop lifelong-learning capabilities, universities must provide them with the right environment to foster the habit through a research-intensive learning curriculum. Unfortunately, many of today’s curricula are causing students to remain passive recipients of knowledge. 

Then again, a research-based learning environment has proved to be a much better approach in encouraging students to boost their academic knowledge and soft skills as they play a more active role in the learning process.  Furthermore, with academic research, students are inspired to explore new ideas, perspectives and arguments in the long run, allowing them to have the knowledge, know-how, attitudes and values to thrive as lifelong learners in their future careers.

Master digital technology

Amid the world’s transition to the post-pandemic era, many organisations have begun introducing hybrid and remote work models as part of their business operations, in line with the growing digital workspace trend. 

Still, these new work modes have tweaked, if not overhauled, the baseline of which companies refer to in identifying potential talent. As it is, companies have become more selective in their hiring process, opting for individuals who are more than capable of adopting and adapting to the digital needs of today’s workplace. 

For perspective, while the demand for digital skills is on an uptrend, a recent study by JobStreet revealed that the average starting salaries among fresh graduates have dropped, as many of them lack the digital skills necessary to tackle the requirements and challenges of the current competitive market and tough economy.

Under the Malaysia Digital Economy Blueprint, the government aims to create half a million job opportunities in the digital economy sector by 2025. This is on expectation that the digital sector will contribute a significant 25.5% to the country’s gross domestic product. 

With this in mind, universities must prioritise exposure to the digital world by re-examining and future-proofing the programmes offered, focusing not only on the demands of today’s job market but also for the following decades to come. 

Experience international exposure

Digitalisation has taken the world by storm. The advancements in technology have paved the way for greater adoption and utilisation of the internet and social media, putting connectivity in overdrive. 

In a similar vein, connectivity also means people now have greater opportunity and capacity to spread their wings abroad. Quacquarelli Symonds (QS), a provider of services, analytics and insights into the global higher education sector, revealed that six out of 10 employers globally give extra credit to students with international experience.

Graduates who possess international experience tend to have an upper hand in terms of personal growth and professional development, be it throughout their education journey in university or over the course of their internship programme. Hence, it goes without saying that educational institutions with international transfer or exchange programmes as part of their offerings will contribute to the success of graduates in their future careers by driving global innovation and progress.

Professor Rebecca Taylor is pro vice-chancellor (Asean) and CEO of the University of Southampton Malaysia. Her research interests lie in the field of international economics and developments in economics education.

Source: The Edge Markets

Talent: Empowering today’s graduates to be winners in tomorrow’s workplace

Walta Engineering Sdn Bhd (Walta) has invested RM10 million to expand its Walta Centre of Excellence (WCOE) to nurture talent in Technical and Vocational Education Training (TVET) and Science, Technology, Engineering, and Mathematics (STEM).

The chief executive officer of Walta Centre of Excellence Moey Lip Seng said that to date, over 1,400 participants had attended corporate skills training at WCOE and over 110 TVET graduates had been produced in the area of industrial automation and precision machining.

Moey said as part of the expansion plan for TVET and STEM, WCOE is planning to build a new building adjacent to the current building.

The new building will be used for TVET advance machining lab and STEM (Science, Technology, Engineering, Mathematics) ‘fab lab’ which is poised to contribute to building a healthy talent pipeline for the industries,” he told reporters here today.

The STEM fab lab will act as a centre to coordinate, drive and sustain the STEM education initiative in Penang.

Earlier, Penang chief minister Chow Kon Yeow witnessed the agreement exchange ceremony between Walta and Penang Development Corporation (PDC) for the 15-year lease agreement to develop a new building.

Chow said Penang is committed to deepening and broadening the talent pool through various STEM initiatives in order to meet the industry’s growing demand while also attracting new strategic investments.

“Aside from nurturing TVET institutions such as WCOE, some of the ongoing initiatives include the Penang Internship Subsidy Programme (PISP) which offers wage subsidies to local companies on the hiring of interns.

“There is also the Penang Future Foundation, which provides scholarships for deserving students, affordable housing for knowledge workers, and ongoing engagements with industry players and institutions of higher learning to ensure talent readiness in the workplace,” he said.

Source: Bernama

Penang’s Walta invests RM10 mln to expand centre to nurture talent in TVET, STEM

Against the backdrop of an interconnected and increasingly complex global economy, businesses are now more aware of the vulnerabilities of disruptions. At the same time, investors, legislators and other important stakeholders are piling pressure on companies to act on environmental, social and governance (ESG) issues and demonstrate greater corporate responsibility and transparency.

With more and more businesses realising the need to consider how they operate in the ecological, social and economic surroundings, business leaders must adopt a proactive approach to ESG as it moves from the periphery into the centre of business operations and strategies.

According to IHS Markit, Bursa Malaysia had 235 ESG-mandated funds globally invested in our stock market with a total holding value of US$143.5 billion in February this year. A PwC study last year revealed that 94% of the top 20 Malaysian public listed companies have established ESG strategies. These are positive indicators that ESG is relevant and a key consideration for businesses today.

While there is a lot of chatter around the environmental pillar of ESG, the social and governance pillars — particularly the former — have not been given as much consideration.

The social mandate in ESG looks at issues concerning community relations, customer satisfaction, data protection and privacy policies, and even efforts to fund projects or institutions that help the poor and underserved communities are top of mind for investors today. A greater focus on the social pillar is necessary for the growth of our digital economy, especially in transforming Malaysia into a digitally-enabled and technology-driven nation as outlined in the Malaysia Digital Economy Blueprint.

The power of digitalisation should not be overlooked because digital technology can be harnessed to tackle social challenges in our communities and bridge the social inequality gap.

Digitalising for social well-being

According to Khazanah Research Institute deputy director of research Dr Rachel Gong, digital social well-being hinges on three fundamental digital essentials: interoperability in the digital ecosystem, accessibility in fintech (financial technology) and responsible implementation of data governance.

“The idea here is to enable everyone to reap the benefits of digitalisation. It involves intentionally reducing the digital and data inequalities that would naturally develop out of structural differences in access to resources and skills development,” she said, adding that it is in everybody’s interest to open the digital ecosystem for these “digital basics” as society becomes increasingly digital by default.

In the same vein, Gong pointed out that when it comes to social well-being, current trends indicate that an increasing number of people — especially Gen Z — are prioritising ESG concerns and more likely to support businesses that do the same.

“There needs to be a shift in attitudes towards ESG to become a primary component of business strategy, not an afterthought after the overall strategic thinking process. Taking ESG seriously means investing seriously in it, which is likely to impact profits. In the long run, the costs are worth it,” she said.

Digital inclusion for social impact

For Sea Limited (Malaysia) (Sea) country head Terence Siau, digital inclusion is at the forefront of the company’s ESG strategy. Its e-commerce business Shopee, for one, empowers local businesses to adapt to the new normal through value creation in the e-commerce space.

“Our marketplace platform removes the barriers of starting a business for all Malaysians. Using our tools and services, local vendors especially those in rural areas can take their businesses online and expand into national and regional markets to promote and sell their products. We continue to leverage the transformative power of technology to broaden our reach to underserved local communities,” he said.

As part of efforts to drive digital inclusion, Sea and Shopee collaborate with government agencies to promote digitalisation among rural vendors and help boost their sales on e-commerce platforms. These efforts are in the form of end-to-end support through their ecosystem, from helping individuals kick-start their entrepreneurial journey and offering training for upskilling to providing opportunities for long-term growth.

Shopee is also focused on accelerating digital inclusion among its vendors through education, training and a seamless onboarding experience such as the Shopee University, Shopee Seller Centre and ShopeeXperts programme.

Meanwhile, Gong believes that one key aspect of the social component in ESG is to engage with persons with disabilities (PWDs).

“Many technologies are a boon for PWDs; for example, texting in the deaf community or speech-to-text for the blind. Intentionally engaging with PWDs and related advocacy groups to learn how they use products can help improve design and testing,” she explained.

She added that, seeing how the tech sector is the driver of innovation and has first-mover advantage, those in that sector should be aware that what they set as initial defaults are likely to become norms that follow.

“Inclusive design is essential, both from the back end, such as making systems interoperable and resilient to further technological change; and the front end, making it easier for diverse groups of people to use their tools and products,” Gong said.

Banking on digital

Speaking of virtual banking, Siau said that digital banks will be able to provide inclusive services and empower the underserved, offering social development while expanding the digital economy.

“Digital banking platforms remove barriers for the unbanked communities to make and receive payments and manage their finances. It promotes inclusive trade and sustainable development for vendors as well as drives inclusivity and accessibility for Malaysians alike,” he said.

In April, a consortium led by Sea and YTL Digital Capital (YTL) was among the five companies that were granted Malaysia’s digital bank licences by Bank Negara Malaysia.

“Products offered will be simplified to encourage more people to save, invest and grow. Services will also be equipped with personalised recommendations according to one’s credit standings, in effect promoting responsible financing,” Siau added, touching on Sea-YTL’s digital bank.

“With an existing digital divide and the need to gain digital trust among consumers, financial literacy is key. Access to digital financial literacy will be fundamental to the setting up of this digital bank, across all demographics,” he said.

Assisting those in need

“The pandemic brought to light the power of driving positive social impact. At Sea, we make this part of our core business strategy with a view to nurturing the growth of the broader digital ecosystem. This is in line with our mission to better the lives of communities through technology,” Siau said.

These society-first initiatives are aligned with Gong’s views that the focus in driving social impact should be on people rather than the companies.

“Businesses can better understand the needs of the audience or market and work with them to find solutions, not necessarily digital in nature. Even if the final solution is not specifically digital, the efforts to develop it will certainly be,” she said.

Source: The Edge Markets

Advancing the ‘S’ in ESG: Digitalising the economy for social impact

IN FEBRUARY 2019, then prime minister-in-waiting Datuk Seri Anwar Ibrahim launched an initiative called the Digital Native Agenda (DNA23). This was to be a key component of his administration – a vision of how the digital economy will be utilised to drive impact on Malaysia in a manner that takes into account the digital divide.

“If we do not take up immediate measures to propel this emergence and awareness in this digital native agenda, I believe that we will not be able to be or to remain a competitive country.

“Our state of our economy, and our society, is certainly in dire need of a major reform,” said Anwar.

However, his initiative was paused due to a change or two in government.

The newly-minted Prime Minister has declared that his key short-term priorities are uniting the nation in the face of a rather fractious general election as well as pushing for equitable economic growth in the face of significant economic headwinds. It is likely that difficult decisions will need to be made (e.g., the need for a goods and service tax or GST, subsidy rationalisation) but there is also an opportunity to focus on potential growth areas including that of the digital economy.

Deloitte, the consulting firm, defined the digital economy as “economic activity that results from billions of everyday online connections among people, businesses, devices, data, and processes.”

This is only achieved by appropriate connectivity in terms of speed and people, which leads to previously unavailable opportunities in all sectors.

It is telling that one of the key considerations that Anwar had when he was preparing for the premiership was the manner in which the digital economy can be utilised to improve the well-being of the rakyat. However, Malaysia has been talking about the digital economy for a few years now and it is important to take a critical look at where we are at and how far we lag behind regional and international competitors – and why.

Some of the factors that the new government will need to look into are:

1. Connectivity

One of the hallmarks of the Pakatan Harapan government of 2018 was the reduction in broadband costs whilst simultaneously increasing connectivity speeds. The philosophy of increased affordable connectivity should continue.

Key questions to include: Should Digital Nasional Berhad, the special purpose vehicle in charge of 5G connectivity in the country continue in its current form? What more needs to be done to highlight the role of 5G from industry vertical applications to smart city local council implementations?

2. Digital skills

There is a huge number of upskilling and reskilling programmes in Malaysia, run by government, university as well as private sector players. These need to be consolidated and should be checked if they are fit for purpose. For example, six out of seven of TalentCorp’s Critical Occupations List require technology skills and these should be mapped out with appropriate interventions put in place.

Whilst there are increasing opportunities in the digital space, we need to be cognisant of regional competitors – for example, in 2021, Singapore stated that they require 1.2 million workers trained in digital skills by 2025. Without the right wage and incentives, we will likely see a brain drain as individuals seek opportunities elsewhere.

3. Investment

Malaysia has a number of start-ups that require funding at all levels. Whilst these can be identified through government programmes, some are best left to local fund managers who have greater insight into the domestic scene.

Bottlenecks to the foreign investment should also be reduced – initiatives such as the Digital Investment Office (a project mooted by MyDigital that led to a joint MDEC and Malaysian Investment Development Authority entity) is one such example. Companies that were hitherto hesitant to invest in Malaysia due to policy uncertainties will be more forthcoming; this is a window of opportunity that must not be missed.

4. Agile governance

Decisions must be made in a timely fashion. For example, it should not take months to resolve the cabotage issue (the revocation of cabotage exemption that previously allowed foreign vessels to carry out undersea communications cable repair works in Malaysian waters). Delays in decision-making affects perception and will hamper efforts to entice further industry investment in Malaysia.

It would also be timely to modify policies made for the analogue age and look at the various overlapping agencies and ministries that are involved in the digital space. There is a need to break down barriers across silos, and consider the need to consolidate the various entities under a “digital czar” who reports directly to the Prime Minister.

It is worth reminding ourselves that digitalisation per se is not the monopoly of any one ministry or agency, but is a framework that should guide all sectors of government machinery. The biggest digital transformation should occur across the government itself, with opportunities to gather and analyst data that will help both policy decision-making as well as provide a more effective and efficient public service.

5. Digital ecosystem

As digital technology is increasingly being used as a geopolitical tool, we must be strategic and agnostic in our use of technology. There is an opportunity to invest in the digital ecosystem and infrastructure.

Apps like MySejahtera have changed the manner in which we utilise digital tech and there is opportunity for growth from fintech to insurtech. The increasing use will also lead to a greater need for cybersecurity and a regulatory environment that balances the need for oversight versus the stifling of development.

The new government should revisit the existing Digital Economy Blueprint. We do not need more time wasted on new proposals – there are sufficient policy proposals that require implementation. Listening to the rakyat and industry stakeholders alongside identifying niche areas for development will be a good starting point. Most importantly, there should be a concerted effort to educate the rakyat regarding why the digital economy is worth their while in the first place.

Malaysia’s political infighting has robbed us of the progress that we deserve over the past two years. Instead of reaping the benefit of technology, we have remained stagnant whilst our neighbours have forged ahead. The harsh truth is that nobody outside of Malaysia really cares about our domestic politics – technology advancement and the global digital economy carries on irrespective of who is Prime Minister. It is high time that we rise with the digital tide.

Dr Helmy Haja Mydin is the CEO of Social & Economic Research Initiative (seri.my), a think-tank focused on the intersection of digital technology and society.

Source: The Star

Malaysia and the digital economy

Ericsson is looking forward to continue supporting the Malaysian government’s ambitions to deliver a new era of growth, connectivity and prosperity for the people with its commitment in technology, investment and expertise.

Ericsson Malaysia, Sri Lanka and Bangladesh head David Hägerbro said the telecommunications service provider, as a global ICT leader that has been in Malaysia for 57 years, is committed to working with the government, mobile network operators and industry to accelerate the country’s digital transformation.

“The 5G network we are rolling out together with Digital Nasional Bhd (DNB) for Malaysia will be a catalyst for economic growth, transform lifestyles, and deliver best-in-class education and healthcare, among many other things,” he said in a statement today.

With the appointment of Malaysia’s Prime Minister Datuk Seri Anwar Ibrahim, Hägerbro hoped for the long-term stability of the government and policies that would drive Malaysia and the economy further forward.

Yesterday, Anwar took his oath of office as the 10th Prime Minister before Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah.

According to Ericsson’s largest consumer study, about four million Malaysians are expected to sign up for the fifth-generation (5G) broadband cellular network service in 2023.

Source: Bernama

Ericsson supports M’sian govt’s ambition to deliver new era of growth, connectivity

There is further upside for Tenaga Nasional Bhd’s (TNB) share price amid an improving operating environment for the utility giant, say analysts.

Rising electricity demand in Malaysia in tandem with the recovery of the country’s economy will continue to bode well for TNB.

The company, which posted strong earnings for the nine months ended September 2022, is also expected to benefit as the country transitions towards a low-carbon future, with a focus on renewable energy.

Bullish about TNB’s prospects, CGS-CIMB Research reiterated its “add” recommendation on the company, with a higher target price (TP) of RM13.60, compared with RM13.30 previously.

The brokerage explained its target price for TNB was raised after it rolled over its valuation to financial year ending Dec 31, 2024 (FY24) from FY23 previously, with unchanged five-year historical price-earnings of 15 times.

“We like TNB as it will likely keep its monopoly position in the electricity transmission and distribution segment, and it has a decent dividend yield of more than 5% for FY22 to FY24,” CGS-CIMB Research wrote in its report yesterday.

“It is poised to benefit from Malaysia’s energy transition, that is, additional grid investments and renewable energy opportunities, which could boost its earnings and improve the public’s environmental, social and governance perception of TNB,” it added.

Electricity demand expanded 8.1% year-on-year (y-o-y) in the nine months of this year, compared with 0.6% y-o-y during the same period last year, supported by higher demand across all sectors after Malaysia’s border and economic reopening.

TNB expects FY22 electricity demand to grow 1.7% y-o-y, compared with 1.2% y-o-y in FY21, in line with the government’s 2022 GDP growth projection of 6.5% to 7%.

Hong Leong Investment Bank Research (HLIB) also maintained a “buy” on TNB, with unchanged target price of RM11.65, noting that it expected the company to leverage on the country’s economic recovery in 2022.

“The company is backed by stable earnings under regulatory period three or RP3, with committed dividend payout policy.

“We expect the upcoming imbalance cost pass-through (ICPT) review by year-end to address the current mismatch of ICPT recognition and recovery, given the already stable/downtrend in global coal prices in recent months,” it added, noting the government is providing a guarantee to TNB’s financing of up to RM6bil to fund additional working capital costs, which were also recoverable through the ICPT.

Meanwhile, UOB Kay Hian (UOBKH) Research has maintained its “sell” call on TNB.

The brokerage, however, raised its TP for the counter to RM7.70 from RM6.60 previously.

“We remain cautious on the stock as trade receivables remain elevated.

The government continues to defer compensation for under-recovery and the probability of TNB having to bear some of the higher costs as part of its government-linked company undertaking is highly likely,” the brokerage explained.

The government paid TNB RM4.8bil out of the RM5.8bil owed for the second half of 2022 ICPT under-recovery.

Receivables from the government stood at RM15.5bil – a hefty amount to recover, UOBKH Research said.

Source: The Star

TNB to ride on rising electricity demand