The CEO of Malaysia Digital Economy Corporation (MDEC), Malaysia’s lead digital economy agency, confirmed that Malaysia is witnessing significant growth in data-driven adoption among organisations and businesses. MDEC and the Malaysian government are cognizant of the importance of data not only in driving efficiency and improving governance but also in growing the Malaysian digital economy.
Data-driven spending in Malaysia is on the rise. An MDEC-commissioned study found that Malaysia’s big data and analytics market is set to grow from US$1.1 billion (RM4.5 billion) in 2021 to US$1.9 billion (RM7.89 billion) in 2025. Additionally, another report on the future of AI in Southeast Asia noted that while AI adoption in the region is still nascent, proper application and execution of AI can add US$115 billion to Malaysia’s GDP by 2030.
Malaysia Digital Economy Corporation (MDEC) is optimistic about the Big Data Analytics (BDA) market growth outlook and the significant digital investment opportunities that it can bring, especially in the data technology and service-related field.
An MDEC commissioned a study that forecasted the BDA market to grow in 2021 from US$1.1 billion to US$1.9 billion in 2025. The services sector will contribute 64% of the total data-driven spending, with Banking and Telecommunications contributing nearly a third.
The report forecasts that the revenues for BDA solutions reached US$22.6 billion in 2020, with a year-over-year (YoY) growth of 12.0 per cent in Asia/Pacific. It also predicts that it is mainly due to the increasing confidence of decision-makers that investments in BDA will be necessary for achieving digital and business resiliency amid the Covid-19 pandemic.
The Senior Vice President, Investment and Brand, and Chief Marketing Officer (CMO) at MDEC citing the Worldwide Big Data and Analytics Spending Guide 2020 said that Asia/Pacific’s BDA industry can expect to grow at the fastest rates and more than 15 per cent CAGR by 2019-2024 due to increased BDA investments by many start-ups and businesses.
Against this backdrop, MDEC recently announced a week-long curation of virtual events focusing on the Internet of Things (IoT), Data, and Artificial Intelligence (AI) – AI and Data Week 2021 (AIDW 2021). AIDW 2021 aims to catalyse data technology adoption among Malaysian business enterprises and to foster data ecosystem development in Malaysia. It will feature talks and panel discussions by data and industry experts to foster a thriving data and AI ecosystem, especially in terms of mindset, integration, and adoption of the IoT, Data, and AI among enterprises, working professionals, government officials and the public.
The event serves as one of the core platforms for the agency to accelerate the availability, accessibility, and usability of data amongst Malaysian society and the economy. Through the successful application of data and AI, a productive, progressive, and inclusive digital economy can be driven; one that is in line with the Malaysia Digital Economy Blueprint (MyDIGITAL) and the goals of the Twelfth Malaysia Plan (12MP).
COVID-19 has been a true game-changer in terms of demand for BDA which is backed by the surging demand for data and cloud services, both accelerating digital transformation and enabling business sustainability. It was noted that companies investing in BDA will continue to expand their presence by having Malaysia as a base for its regional and global businesses and operations to manage its core functions.
As Asia maintains its momentum as the fastest-growing region in the world, we see investors’ confidence in Malaysia’s digital ecosystem continue to soar amidst the global pandemic. Existing companies have also started re-investing in Malaysia, the Senior Vice President noted.
