Malaysia’s Prime Minister recently convened a briefing session with the Malaysian Technology Development Corporation (MTDC) and the Global Coalition for Efficient Logistics (GCEL) to discuss how the Digital Economy Platform (DEP) can assist to achieve Malaysia’s Shared Prosperity Vision 2030 objectives.
The MTDC is a wholly-owned subsidiary of Khazanah Nasional, Malaysia’s sovereign wealth fund, and has been the key player in commercialization and management of government funding since the 7th Malaysia Plan.
Malaysia’s Shared Prosperity Vision 2030 includes 15 Key Economic Growth Activities (KEGA) towards increasing the incomes of the economically poor within Malaysian society.
GCEL has developed the Malaysia Digitization Program centred around a DEP that supports 7 of 15 KEGAs mandated to translate Malaysia’s vision into measurable delivery.
The DEP delivers thousands of free Apps across its e-commerce, e-finance, e-insurance and e-logistics dimensions that will digitize the global B2B value chains.
The DEP will be deployed by the world’s top technology companies, as well as national e-commerce, finance and insurance firms that generate US$1.5 trillion in revenue with a workforce of 4.7 million.
These organizations will digitize the US$150 trillion B2B marketplace, unleashing US$20.5 trillion in new digital services by 2030.
It was noted that GCEL has conducted 15 years of R&D on the Digital Economy and executed strategic agreements with pan regional organizations representing 150 member countries, 26 IGOs/NGOs and the world’s top technology firms.
This initiative is unprecedented since its governance structure is geopolitically balanced and non-monopolistic to safeguard each nation’s sovereignty and privacy of its trade and trade data.
GCEL previously conducted the Malaysia Shipment Efficiency Assessment (SEA) with the Malaysia Digital Economy Corporation (MDEC) to diagnose trade efficiency and identify the digital tools required to increase trade and create jobs.
Malaysia’s SEA was followed by the G20 Nations Case Study of trade efficiency conducted by 90 G20 ministries, IGOs/NGOs and private sector experts representing nearly 80% of the global GDP.
The Case Study collected 1.2 million data points through face to face interviews across 19 industry clusters covering all economic zones.
The Case Study revealed 90.4% of Malaysia’s trade partners do not have an integrated system and 94.5% have commonly defined and want the DEP to do a better job at the ground level.
GCEL has also executed national agreements with the Organization of Islamic Cooperation, League of Arab States, Organization of American States and the African Union to promote adoption of the DEP in their regions.
During the session, GCEL introduced the Asia Benchmark Trade Lane Program and the 6 steps to digitize businesses creating a conducive ecosystem that increases efficiency to facilitate economic growth.
The Program is projected to reduce Malaysia’s trade costs by US$55 billion, increase trade by US$122 billion and generate nearly 9.5 million manufacturing, agriculture and service industry jobs by 2030.
The Prime Minister stated that the initiative will help speed up and contribute to the rapid growth of the Malaysian economy. Having access to ‘Big Data’ by all will assist trade participants to know more about each other to increase trade.
