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MDEC Working to Drive the Digital Transformation of Malaysia’s SMEs

Malaysia SME Digital Transformation

Malaysia Digital Economy Corporation (MDEC) has chosen a logistics start-up from Singapore as its cross-border eCommerce initiative partner to help drive Malaysia’s National eCommerce Strategic Roadmap (NESR).

As MDEC’s partner, the firm will help Malaysian small-medium enterprises grow abroad by providing cross-border logistics solutions which can deliver their products throughout Southeast Asia.

Developed in 1996 by the Malaysian government, MDEC is working to drive digital transformation across all sectors in Malaysia, including small-medium enterprises (SMEs). Among their initiatives is onboarding more merchants onto the Digital Free Trade Zone (DFTZ).

The DFTZ is an electronic world trade platform designed to facilitate exports for Malaysian SMEs by providing platforms, e-fulfilment activities and enhanced trade facilitation measures. Janio’s logistics network within the DFTZ enables Malaysian SMEs exports to reach their international customers.

To help MDEC drive the NESR further, the logistics company has also been collaborating with MDEC to hold events to actively bring more Malaysian businesses onboard eCommerce and the DFTZ.

At these events, the firm shared insights to help enhance merchants’ use of cross-border eCommerce and how to make use of Southeast Asia’s international eCommerce opportunities.

These events include the Sarawak eCommerce Forum, Karnival Inovasi ICT Terengganu and a recent event on 31st October in Kuala Lumpur called “Let’s Go Global: Making it Big in Indonesia via eCommerce.”

The firm also works to link Malaysian SMEs to various eCommerce partners. Through these partners, Malaysia’s merchants can obtain tools and expertise across the entire eCommerce ecosystem including international market entry and online marketplace listings, and more.

The Head of SME Adoption at MDEC stated that the logistics firm has been a big help in executing SME adoption programs to drive the NESR forward, particularly in helping merchants access international markets like Indonesia.

THE COO of the logistics firm stated that his team is looking forward to collaborating with MDEC to help more businesses expand into cross-border eCommerce.

Enabling Digital Transformation in Malaysia

According to an earlier report by OpenGov Asia, the Malaysian government announced the set-up of the National Digital Inclusion Council. The council aims to create more income opportunities in the digital economy.

The council will comprise representatives from the following ministries: economic affairs; finance; communications and multimedia; women, family and community development; rural development; housing and local government; agriculture and agro-based industry; tourism, arts and culture; transport; entrepreneur development; youth and sports; human resources; and federal territories ministry.

In addition, the government will be focusing on getting the execution right and achieve results as soon as possible. Meanwhile, ministries and agencies are being encouraged to collaborate and work together to benefit Malaysians and earn their trust.

The new initiative is in line with the government’s vision of shared prosperity, uplifting social and economic quality of life for Malaysians through the use of technology.

Highlighting the importance of adopting emerging technologies, developing tech talent and facilitating digital inclusion, Malaysia’s Prime Minister noted that there have also been more local tech companies being recognised globally.

Malaysia’s Digital Economy Expanding

Malaysia’s digital economy expanded RM267.7 billion in 2018, contributing 18.5% to the national economy, according to the Department of Statistics.

Information and communications technology (ICT) contributed 18.5% to the country’s gross domestic product (GDP) comprising gross value added of ICT industry (GVAICT) (12.6%) and e-commerce for non-ICT industries (5.9%).

With this in mind, Malaysia developed its 2020 Budget. The local technology industry will continue to receive attention from the government, which is intent on further boosting the capabilities of local SMEs and start-ups, strengthening digital content, embracing digitisation, enhancing e-commerce, and adopting 5G technology.

As Malaysia leans into the implications of an increasingly digital era, SMEs and start-ups will need all the support they can get from the nations they’re in.


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