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In recent years, Malaysia has experienced remarkable growth in its digital economy, a trend further accelerated by the COVID-19 pandemic. With businesses compelled to embrace digital operations, the country has witnessed a significant opportunity for value generation. To ensure this momentum continues, it is crucial to establish the necessary foundations that will enable Malaysia to tap into this vast potential.
Through a collaborative effort between Malaysia Digital Economy Corporation (MDEC) and a global management consulting firm, a comprehensive analysis of this evolving ecosystem has been undertaken. The study involved an in-depth survey of businesses across the nation, combining MDEC’s Business Digital Adoption Index (BDAI) and the firm’s framework. This joint report delves into the current state of digital transformation among local companies, identifies key drivers of change, and explores the challenges that need to be addressed to foster further growth.
The journey of digital adoption involves distinct approaches and stages, the report notes. Stagnating and emerging companies need a programmatic approach to address foundational issues for future innovation while scaling and future-built organisations focus on continuous innovation, AI leverage, and digital ecosystem advancement. Urgency in implementing digital transformation depends on a company’s stage and attribute scores. Stagnating and emerging players must act urgently, following digital incumbents’ lead to drive long-term value. Scaling and future-built players should stay vigilant and focus on the six attributes of success to maintain their edge as a ‘bionic’ company, blending human potential with digital innovation.
Key next steps based on the six core BFF attributes:
Purposeful Leadership
- Align leadership around a corporate purpose.
- Empower leadership and build depth beyond the founder.
People Advantage
- Build an attractive employee value proposition for digital talent.
- Prioritise training and upskilling for development and retention.
Agile Operating Model
- Develop agile leadership and governance processes for fast iterative learning and risk-taking.
- Avoid trade-offs between innovation speed and building scalable platforms.
- Align incentives with measures that drive value in the business.
Innovation-driven Culture
- Foster an entrepreneurial culture that encourages innovation throughout the organisation.
Modern Tech & Data Platform
- Drive a business-led technology agenda, leveraging new technologies like cloud-based workloads, open architectures, and democratised data.
- Ensure strong technology and data governance to prevent fragmented data and technology debt.
Embedded AI
- Begin developing embedded AI capabilities across the operational value chain.
The findings are crucial for growing Malaysia’s digital ecosystem amidst rapid developments in the business landscape. MDEC, backed by the government, is driving economic participation through digitalisation and the adoption of digital platforms and technologies.
Various initiatives and programmes are in place to encourage high-value digital investments, support local businesses, foster a digitally savvy society, and create a sustainable digital economy. The Malaysia Digital initiative aims to enable Malaysian businesses to lead in the global digital revolution. PEMANGKIN projects catalyse digital value creation across sectors, driving technology adoption and promoting ten emerging technological enablers.
While Malaysia’s foundations are strong, addressing gaps is vital to unlocking the full potential of digital transformation. MDEC and the Malaysian Government have valuable initiatives in place, fostering adoption and future growth.
According to other findings, as cited in a news report, Malaysian companies are trailing behind their global and Southeast Asian counterparts in their digital transformation journey. A relatively higher percentage of Malaysian companies (39%) fall into the emerging and stagnating segment, while the global figure is only 13% and the regional figure is 17%.
As MDEC continues to catalyse high-impact initiatives and strategic investments, the nation’s digital ecosystem is poised for further growth and success. Embracing the digital revolution with foresight and purpose will propel Malaysia to the forefront of the global digital landscape.
