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Malaysia to Invest Heavily into Building Tech Landscape

The Malaysia government’s pushes to improve the nation’s tech infrastructure over the past few years have been widely reported on.

Having recently tabled its budget for 2020, it appears Malaysia has plans to seriously improve its tech landscape as well as develop a 5G ecosystem for the nation.

Building a Nationwide Fibre Network of Malaysia

While Malaysia has had fibre networks since 2010, it has still not connected to rural areas and even some modern townships. These citizens are left using either copper wires or 4G networks as their only source of connecting to the internet.

During the budget tabulation, Malaysia finance minister stated that the government and private sectors will pull together a fund of RM21.6 billion to implement a fibre network for the nation under the National Fiberisation and Connectivity Plan (NFCP).

Improving Connectivity and Developing Malaysia Digital Infrastructures

  • To further improve the connectivity in rural Malaysia, the government also announced that they will spend RM250 million to improve the connectivity in these areas via satellite.
  • This is especially important in East Malaysia which consists of Sabah and Sarawak. These two states have had connectivity issues for a long time now and don’t have access to the speeds that West Malaysia gets.
  • While the budget tabulation has a strong focus on rural areas, the Malaysian government is spending RM250 million to developing a new digital infrastructure of industrial parks and high impact areas.
  • As the rapidly moves towards 5G, Malaysia aims to keep pace with the trend. In the tabulation, the government has set aside RM50 million for a grant to develop a 5G ecosystem for the nation.

Investing a Larger Amount into Esports

In 2019’s budget tabulation, the Malaysian government said that they will be allocating RM10 million to the development of esports in the country. At the same time, gaming peripheral company also said they will add on another RM10 million for the cause.

This time, the government has announced that it will be raising that amount to RM20 million. This has been lauded as a smart move considering that esports is booming in Southeast Asia.

Pushing Forward Industry 4.0 in Malaysia

According to an earlier OpenGov Asia report, Malaysia is working to become the preferred destination for high-tech investment through Industry4WRD, according to the nation’s Deputy International Trade and Industry Minister.

The government also aims to be a comprehensive total solutions provider for advanced technology in the region.

With proper implementation, the government is confident that by 2025, it will be able to achieve improved labour productivity, increase manufacturing’s contribution to gross domestic product (GDP), enhance innovation capacity and create more high-skilled jobs.

The government has outlined Industry4WRD’s broad strategies and action plans in order to support the transformation of the manufacturing sector.

The policy aims to provide a holistic ecosystem that facilitates digital transformation through the five strategic enablers of funding, infrastructure, regulatory framework, skills and talent as well as technologies.

Malaysia will continue to work with many countries in adopting and advancing smart manufacturing.

The benefits of smart manufacturing have far-reaching implications as they have the potential to make manufacturing more agile and responsive, reduce equipment downtime and achieve greater operational and cost efficiencies.

It is hoped that the new budget will propel Malaysia further into the digital era.


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