malaysia
Powered by :
Malaysia can expect urgent and unprecedented demand for tech talent
Bank Negara issues policy document on digital banks
At first glance, the 0.8-hectare site in Kampung Sijangkang in Telok Panglima Garang, Selangor, where red chillies grow from black polybags, looks like an ordinary vegetable farm. However, this is far from a conventional farm; it is, in reality, a “digital laboratory farm” where digital agriculture or precision farming practices are used to increase crop yields and profitability, as well as reduce fertiliser, pesticide and herbicide inputs.
The Managing Director of the company that operates the farm, is making use of an Internet of Things (IoT) smart farming application and system developed by Malaysia Digital Economy Corporation (MDEC).
The Managing Director, who has been involved in agriculture for 14 years, admitted that it was not easy for him to switch from conventional to digital farming applications but now he is convinced of its benefits. His “digital laboratory farm”, where some 6,000 red chilli plants are being cultivated using the fertigation technique, has now entered its third year of operation and the smart farming application has helped him to save time and manpower costs, as well as improve harvests.
He noted that anyone, even those in rural areas, can practice smart farming as long as they have a smartphone and Internet access. All they need to do is insert a SIM card in the sensor hub panel and monitor the cultivation process via their smartphone, he added.
IoT-based smart farming, also known as precision farming, helps farmers to optimise water, fertiliser and pesticide inputs and improve crop yield, quality and productivity by monitoring various factors such as humidity, temperature, soil conditions and fertiliser and pesticide levels on their farms or agricultural fields in real-time with the help of sensors and interconnectivity.
The Managing Director started his digital laboratory farm project by applying the smart farming application to the fertilisation system first. Its success spurred him to extend the application to pest control for which he used an automatic spraying system comprising a 137.16-meter-long railing.
His team this system effective and went on to integrate both the fertilisation and pesticide spraying systems which they controlled via the IoT application, he said, adding that the smart farming concept can benefit young agropreneurs involved in fertigation cultivations in terms of their farms’ maintenance, watering, fertilisation and pesticide application aspects.
With the use of emerging technologies such as satellites, drones, artificial intelligence and weather forecast software, farmers can determine crop types that are appropriate for cultivation on their land. This will avoid wastage and save time.
While he is still experimenting with this smart farming system, he noted that it has helped him save time and manpower costs and has given better yields too.
The IoT smart farming application, which can be downloaded on both Android and iOS smartphones, provides farm-related data that have nearly 100% accuracy. Among the data recorded by the sensors are readings pertaining to the volume of fertiliser or pesticide in the tanks, status of the irrigation pumps, humidity level and temperature, crop growth timeline, type of crop, date of cultivation and automatic harvesting and crop yield record.
The farm has 15 sensors and all the data collected from the field is stored in a cloud computing system. Data from the 15 sensors are sent to the cloud every 15 minutes. If the teams need any information on, for example, fertiliser, pesticide, temperature or humidity level, they just have to print out the required data from the list.
They can also download data from individual sensors. And, now they are developing a system that will enable access to all the data via email because it is quite time-consuming for them to download data from the cloud especially when there is too much data.
Technological collaborations with MDEC have also enabled them to activate the sensor control panel via voice commands, he added.
A finance service company recently upgraded Malaysia’s technology hardware sector to positive from neutral as they expect the sector will ride an imminent upcycle that appears to be heralded by positive growth of the global semiconductor industry.
In a note today, the research house’s analysts stated that they adopt a positive growth outlook for the tech sector due to rollout of 5G networks, the ramp-up of semiconductor components and equipment, development of sub-sectors such as the Internet of Things (IoT), artificial intelligence (AI) and electric vehicles (EVs), and Industry 4.0.
They said that these should bode well for Outsourced Semiconductor Assembly and Test (OSATs), automatic test equipment (ATE)/automation manufacturers and electronics manufacturing services (EMS)/precision engineering companies.
Meanwhile, the World Semiconductor Trade Statistics projected that the global semiconductor market will grow by 6.2% year-on-year to US$452 billion in 2021 while the global industry association SEMI estimated that global semiconductor manufacturing equipment sales will grow by 11% year-on-year to US$70 billion in 2021.
It was noted that this upcycle would also be driven by the rollout of 5G networks across key cities — accelerated by the growing number of 5G-enabled devices (i.e. smartphones and IoT) and high adoption rates of 5G by key countries (i.e. China, US and South Korea).
They expect semiconductor equipment component and module suppliers, OSAT companies and ATE manufacturers to be key beneficiaries of such a favourable outlook, attributed to rising supply and demand for advanced chipsets and components (i.e. sensors).
This, in turn, would also lead to higher spending and stronger demand for semiconductor equipment. They also anticipated growth from up-and-coming tech sub-sectors — namely IoT, EVs and AI.
While such sub-sectors would be considered to be more niche (relative to the larger core semiconductor market), the firm believes there are selective opportunities for semiconductor equipment/ATE manufacturers while the booming of any tech sub-sectors would generally entail demand for components and chipsets.
Elsewhere, the progressive transition into Industry 4.0 is expected to benefit automation companies.
While the Malaysian technology realm is trading at an average forward price-to-earnings ratio (PER) of 35 times, they think the rich valuations are justified by the potential earnings growth catalysts and upsides, in tandem with the sector’s upcycle, as well as strong domestic equity fund flows.
Malaysia’s Budget 2021 will push tech investment
According to another report, following the budget announcement in early November, the tech industry saw an increased allocation for 2021. Despite some grievances on allocations towards certain sectors, the overall budget allocated to the tech industry was well-received by all parties.
The cybersecurity industry in Malaysia, in particular, was glad that RM27 million has been allocated to CyberSecurity Malaysia to heighten cybersecurity in the country. CyberSecurity Malaysia Chief Executive Officer regarded the government’s initiative as recognition to prevent the threat of cybercrime and at the same time, ensure a safe and conducive cybersecurity infrastructure in Malaysia.
He said that, based on data from the Cyber999 Aid Centre, which was operated by CyberSecurity Malaysia, 9,042 reports had been lodged up to last month, compared with 8,770 last year. He said the three most reported cases were fraud, intrusion and malicious code.
Tech firms lauded the emphasis on digital technologies and upgrading telecommunication networks which will propel Malaysia further, accommodating the needs of digital lifestyles while spurring economic growth for the nation.
The Managing Director of the Malaysia branch of a US-based networking hardware company commended the focused measures to accelerate digital transformation in various areas and industries, including the emphasis on IR4.0 technologies such as automation in the commodity and SME sector.
This includes the allocation of RM1 billion under the Industry Digitalisation Transformation Scheme and additional RM150 million under the SME Digitalisation Scheme Grant and Automation Grant that will spur the manufacturing and labour-intensive industries to rethink their strategies as reliance on human capital decreases, the impact of border control measures continues and market demands changes.
The Malaysia Digital Economy Corporation (MDEC) is launching the DataKITA initiative in conjunction with Malaysia Tech Month 2020 (MTM 2020) to catalyse a thriving national data ecosystem in Malaysia. The ongoing initiative will be inaugurated with DataKITA.Pulse virtual event taking place on 21-22 November 2020.
DataKITA is preparing Malaysia for a new world order of data, one driven by disruptive Fourth Industrial Revolution (4IR) technologies that necessitate business openness and digital evolution. Through the initiative, MDEC will collaborate closely with enterprises and stakeholders within the nation’s data economy. They will do this to help businesses jumpstart their data transformation journey through a structured approach – leveraging data literacy, data analytics, governance, data sharing and artificial intelligence (AI).
Malaysia must gear up for a world beyond the new normal. To reach the next evolutionary level of our development, we must take charge of emerging 4IR technologies that will power the digital economy. As Malaysia transforms digitally towards Malaysia 5.0, businesses now must make the most of the ‘new gold’ that is data to better understand markets, increase revenues, gain new segments and raise their efficiency, the Chairman of MDEC said.
MDEC expects that, through DataKITA, it will empower digitally-skilled Malaysians, enabling digitally-powered businesses and driving investors in digital sectors to join this data-driven population, as it works with the ecosystem to realise the nation’s Shared Prosperity Vision 2030.
The DataKITA initiative will raise the availability, accessibility and usability of data in Malaysia’s society and economy via four strategic pillars:
- Knowledge: Promote Data Literacy
- Infrastructure: Foster a Data-Driven Environment
- Talent: Facilitate Development of Data Professionals
- Action: Accelerate business enterprises to be Data Driven and AI Ready
By fostering holistic data transformation between the Malaysian people, businesses and the government, DataKITA will be the key vehicle to help Malaysia grow a data-driven digital economy to become an advanced market that sets a global example in leading the data proliferation within society and the economy.
It will also help Malaysia’s economic actors tap into the US$13 trillion (RM53.2 trillion) revenue projected to be added by data-fuelled applications in the global economy by 2030, thereby reinforcing the nation’s position as the Heart of Digital ASEAN.
The aim is for organisations to recognise the importance of data transformation and to take the first crucial steps to embark on the data journey, such as training, using data for decision making, investing in technology or the cloud and setting up data roles within their organisation.
This is what MDEC’s DataKITA initiative is all about and we are calling on Malaysia’s businesses and tech talent to embark on this data journey at our DataKITA.Pulse event,” said Dr Karl Ng, Director, Data Ecosystem Development, MDEC.
DataKITA.Pulse – Jumpstarting data transformation journey for businesses
To be held on 21 to 22 November 2020, DataKITA.Pulse is a 25-hour non-stop virtual event that will inspire digitally powered businesses on their data transformation journey by connecting them to like-minded ecosystem stakeholders and industry thought leaders. The event is the first initiative under the broader DataKITA initiative. It will facilitate closer data ecosystem collaborations between society, businesses, governments as well as private- and public-sector entities to help more organisations in Malaysia embark on a structured and sustainable approach for their data transformation.
Held in cooperation with a global software engineer and data community seeking to empower and support with job opportunities across the world – DataKITA.Pulse will feature workshops, forums, business matching opportunities, product showcases by MDEC’s Data Technology Partners as well as one-on-one sessions with MDEC’s Chairman and the COO (Note that the recent leadership restructure at MDEC which abolishes the COO role is effective 1 December 2020). All of these are designed to help participating businesses link with leaders of Malaysia’s growing data ecosystem and better understand the value of data to power their respective data transformation.
In addition to encouraging data adoption between businesses, MDEC has also invited talented individuals to DataKITA.Pulse to take part in the Data Visualisation & Storytelling Challenge. Through this challenge, participants will create data visualisation based on the problem statements about data application in selected industry sectors. They will then work on the challenge overnight before presenting their submission to the judges the next morning.
The pandemic has accelerated the process of digital transformation for governments, banks, and enterprises at a rate that we could never imagine. While this rapid digital shift has led to a data deluge in organisations, there is a lot of uncertainty about how to draw useful insights from it.
Looking to empower enterprises and agencies in Malaysia on secure and effective data management, OpenGov Asia organised an OpenGovLive! Virtual Breakfast Insight on 19 November 2020. The session witnessed an overwhelming level of attendance and engagement from the audience.
Make data management a priority in this evolving digital landscape
The session was opened by Mohit Sagar, Group Managing Director and Editor-in-Chief at OpenGov Asia. Mohit pointed to the fact that the volume of data being generated has increased exponentially over the past few months. But he was quick to note that the data would only be valuable if we organisations could to draw actionable insights from it.
He urged the delegates to make data management a priority in this evolving, and often, daunting digital landscape. As they chart out their data management strategy, it is imperative to keep in mind certain considerations, specifically – security, compliance and governance, cost, automation and performance monitoring.
Mohit acknowledged that providing access to all data to remote employees from anywhere and, at the same time, ensuring the security of data is an incredible balancing act that is vital for organisations to get right in the current context.
In the same vein, he also cautioned the audience to not let security concerns limit or block possibilities for them.
In conclusion, Mohit exhorted the delegates to incorporate a robust and scalable data management system. Rather than trying to do it by themselves, he advised them to partner with experts in the field who can support them on this journey.
Ransomware and cyber threat trends in the current Digital Landscape
After Mohit’s opening, Andy Ng, VP, Managing Director, ASR Sales shared some very insightful findings from research recently commissioned by Veritas. The study was conducted across 21 countries globally with a very strong representation from SEA.
The objective of the survey was to gain insight into organisations preparedness against ransomware attacks. Key findings from the survey indicated that:
- 64% store their data and applications in the cloud
- 61% use more than 5 different cloud services (data complexity/visibility)
- 70% of corporations who suffered a ransomware attack took more than 24 hours to resume normal business operations
- The third biggest concern occupying organisational time is how to fend off risks from external and internal risks and data loss
After shedding some light on the current cybersecurity landscape, Andy revealed how Veritas Enterprise Data Service Platform could help delegates better manage, protect, and simplify your data landscape.
Cloud is the biggest enabler of business agility today
After Andy’s presentation, Rueben Athaide, Head, Cloud Customer Engagement, Standard Chartered Bank offered his perspective to the delegates.
Reuben explained that cloud today is the biggest enabler of business agility in three key ways:
- instilling a culture of innovation
- reducing the cost and speed experimentation
- enabling taking advantage of external opportunities by connecting to ecosystems
He further shared that at Standard Chartered, the cloud service models are designed to support business strategies. Today, almost all the products and services of a bank are digitally enabled. Based on the classification of these products and services, Standard Chartered uses a combination of SaaS, IaaS and PaaS cloud service models.
Reuben expanded on the four key areas of cloud transformation for Standard Chartered. They include application migration from on-premise to hybrid, virtual workplace and end-user tools, security and network transformation.
He elaborated on how their cloud strategy helps enhance operational resilience. They have two on-prem data centres in two different geographical locations with a pair of data centres to enable disaster recovery. They have coded everything into their cloud operations to avoid any misunderstanding and miscommunication.
To ensure the security of data, they have laid down specific guiding principles and a broader approach based on the different categories of classified data.
Reuben concluded his presentation by emphasising the importance of data security.
Data explosion and rapid digital transformation have exposed the organisation to a lot of external risks
After Rueben’s information-rich presentation, John Abel, Senior Vice President and Chief Information Officer at Veritas Technologies shared his observations with the delegates.
John agreed that many organisations had to rethink the way they were operating and change their business models in light of the pandemic and the anticipated post-pandemic new normal. He acknowledged the rapid transformation and the increased digital footprint of doing everything online.
The data explosion and rapid digital transformation have also exposed organisations to a lot of external risks. All these factors together have increased the IT complexity making even more challenging for the organisations to stay resilient.
John concluded his presentation by showing the delegates how the Veritas Enterprise Data service platform can help them overcome these challenges. Their platform is built on 3 major pillars which include making data easily available, keeping it protected and enabling deriving insights from it.
After the presentations from the speakers, it was time to engage in discussion with the audience through polling questions.
On the first question about the requirement that is shaping your landscape to be agile with the business needs, a majority of the audience voted for adapting to changing customer demands (42%).
A senior delegate from a public sector agency shared that incorporating the needs of the citizens is of paramount importance as their primary goal is the serve the citizens in the best way possible.
On the next question about the biggest challenge faced by organisations when looking at digital transformation, the delegates were equally divided between skill shortage to implement and operate technology (36%) and dependency on the need to integrate with legacy systems and/or technology (36%).
Another delegate noted that they are seeing a lot of demand among citizens/customers to incorporate digital transformation in their processes. But there are a lot of legacy systems in place and integrating them into the new digital platforms is a very challenging task.
On the final question about the biggest consideration for your organisation when evaluating new technologies, the audience was once again split between cost optimisation (33%) and support for new and modern technologies (33%).
A delegate said, when looking for a new solution in the organisation, they ensure that it supports the latest technology to bring the ease in operations and processes.
After the interactive polling session, John addressed the delegates to bring the session to a timely closing.
As data is going to explode, complexity within organisations is going to go up. In line with Mohit’s advice, he advocated partnering with a stable and reliable organisation that can assist and support in the area of data classification and protection.
John encouraged the delegates to engage in conversation with the Veritas team and share with them their data management challenges so that they can assist them along their journey.
Staying resilient and continuing operations is always a priority for organisations but it took on far greater urgency when the pandemic hit. Governments and enterprises were under a lot of pressure to keep citizens safe, businesses running and nations and economies afloat.
As the world recovers from the pandemic, mere continuity and survival are not enough. Organisations must adapt to the changing dynamics, constantly innovate and be hyper-vigilant to remain relevant and thrive in the new normal.
Financial organisations currently struggle to cope with changing client demands, the need to have a far greater online presence and provide more comprehensive digital offerings. Adjusting requires new knowledge and deep dialogue. Keeping this in mind OpenGov Asia organised an OpenGovLive! Virtual Breakfast Insight on 18 November 2020 to discuss the need to embrace disruption and innovation for the financial sector with delegates from Malaysia and Singapore.
Essential for financial institutions to adopt technology against the historical convention
Kicking off the session, Mohit Sagar, Group Managing Director and Editor-in-Chief, OpenGov Asia, opened the session after a quick round of introductions in the virtual space.
Mohit opined that the convenience and flexibility of digital banking and commerce are making our currency increasingly digital. This has made it essential for banks to adopt technology and go digital, to a large extent, against historical convention and experiential wisdom.
Digital banking has exposed customers to the convenience of online transaction, making e-commerce a torchbearer in the online space. That being the case, he emphasized the importance of using technology and the need to innovate to stay relevant in the current environment.
In the same vein, he advised delegates to not try and do everything in one big step; rather delegates should partner with champions who will help them accelerate their innovation journey and help them stay relevant.
OneConnect’s Solutions can assist financial institutions to transform digitally
After Mohit’s opening, Yao Jing, Head of Singapore and Malaysia, OneConnect Financial Technology shared his insights.
Yao began by sharing the inception of OneConnect Financial Technology in China and how they are exploring growth opportunities in other parts of South East Asia. OneConnect’s goal is to support small banks and financial institutions in building digital ecosystems and banking platforms to help them stay ahead of the curve in today’s digital world.
He briefly spoke about some of the digital solutions offered by OneConnect:
- Digital Identity Verification
- Smart Landing Platform
- Digital Bank-in-a-Box Solution
- Insurtech Solutions
Wrapping up his talk, Yao provided an overview of OneConnect’s workings and introduced Vijay Manoharan, Chief Executive Officer, CIMB Bank Philippines Inc – a pioneer and expert in fintech and digital banking – to share his story with the delegates
The need to democratize banking and promote financial inclusion in the Philippines
Vijay began by sharing that their primary goal of entering the Philippines was disrupting the banking landscape and promoting financial inclusion. The Philippines is in a very nascent banking stage with only 35-40% of the bankable population having bank accounts.
CIMB wanted to create value by addressing the real pain points of the customers. Keeping that in focus, they came up with a go-to-market strategy of removing the barriers to banking and incentivising opening bank accounts with higher interest rates.
Vijay gave an overview CIMB and why it perceives itself as platform bank – not just a digital bank. He explained that they have the capability of allowing outside partners to extend CIMB services on their platform. This allows CIMB to reach a wider audience, integrate better with customers and partners and have effective collaboration.
He spoke of the partnership they have with the biggest telecom and e-wallet in the country, They have become the first bank in the region to tie up with a fintech and enabled the end-to-end opening of a bank account on the partner’s platform.
Further proof of the success of their strategy is in the overwhelming recognition his team has received over the last 22 months.
Vijay concluded his presentation by listing some of the benefits of operating as a platform bank for both their partners and themselves. They include seamless digital experience, system readiness and agility, risk and credit expertise, fast and aggressive culture and partnership model and adding value.
After the informative presentations, it was time to engage delegates in a time of discussion through the polling session.
On the first question on the biggest benefit of using AI/Technology in the financial services industry, a majority of the delegates seemed divided between better risk control (26%) and new ways of credit assessment (26%).
A senior executive from China Construction Bank reflected that processing data is an organisation’s biggest asset in transformation and innovation. Technology, he felt, would support fintech initiatives but data will be the overarching driver for change.
On the second question about the most competitive advantage of FinTech/TechFin, close to half of the audience voted for innovation/willingness to take risks (47%).
A delegate from a banking organisation in Malaysia reflected that in a conventional banking setup, the ability to take risk is subdued. Smaller fintech setups have the liberty to be innovative and use different kinds of technology from opensource and cloud.
On the final question regarding the biggest competitive advantage of traditional financial institutions, a third voted for brand value (36%).
Reflecting on this, a participant felt that new upcoming FinTech companies are catching up with big organisations on a lot of fronts like management, people and culture but they struggle when it comes to regulatory support.
After the completion of the discussions, George Lee, Strategy and Business Development Director, OneConnect Financial Technology addressed the audience with closing remarks.
He shared that Fintech setups today are getting as big as the banks they are competing with. They have a mature workforce and enough resources, along with the ability to take risks and have flexibility.
He encouraged the delegates to use technology to serve their customers better and to stay relevant in this increasingly digital economy.
George urged the delegates to initiate conversations with the OneConnect team who are always ready to support them on their digital transformation journey.
The Malaysia Digital Economy Corporation (MDEC) announced a major organisational restructuring on 16 November 2020 to reinvent its role as the leader of Malaysia’s digital economy and ensure it benefits the many. This follows the recent appointment of four industry leaders to MDEC’s Board of Directors and further emphasises the firm commitment of MDEC’s leadership towards delivering more for less at speed, addressing disruption of the new norm and improving its standard of governance.
In these unprecedented times, accelerated by the Covid-19 pandemic, change is inevitable. Recognising that digital transformation and adoption is crucial to capitalise on new opportunities. MDEC is confident that the new agile, streamlined and collaborative leadership structure will enable mass outreach and achieve its vision of Malaysia 5.0 – achieving a people-first society in the age of 4IR technology.
Reinventing MDEC
The reinvented MDEC will introduce four strategic focus areas, driven by a newly constituted MDEC Operating Council comprising five divisions:
All five Division leaders in the MDEC Operating Council will report to the CEO of MDEC, and work closely with the transformation and corporate functions. Implementing the right, lean, new leadership structure is key to executing at speed, expanding mass outreach, and creating a measurable socio-economic impact in a digital-first future.
Digital MDEC will prioritise strategic national alignment and the complete digitalisation of all MDEC’s processes and services. It will also implement the recommendations from the holistic governance review. Digitally Powered Businesses will drive two specific thrusts: driving digital adoption among businesses and scaling digital industry players.
Digital Investments aims to attract investment into the catalytic digital-tech sectors and 4IR technologies. The main thrust of Digitally Skilled Malaysians will be on reskilling, job matching and the sharing (Gig) economy.
The five divisions are expected to collaborate closely and deploy agile teams to work across the divisions to provide fast and seamless solutions to address opportunities and challenges. Together, these four strategic focus areas and five divisions will be instrumental in firmly establishing Malaysia as the ‘Heart of Digital ASEAN’.
MDEC will introduce the IOOI (Input, Output, Outcome, Impact) Valuation Metrics in its planning to guide future resource allocation and utilisation, and effectively measure the organisation’s socio-economic contribution to society. This will directly cultivate a high-performing and high-impact organisation.
The Chairman of MDEC stated that the reinvention will ensure clarity in vision, increased ownership, and a collaborative approach to drive success. This is the time for MDEC to be bold and lead the digital leap for Malaysia to build a digital economy for all Malaysians.
This reinvention is expected to positively impact the digital ecosystem. With four strategic focus areas and cross-division agile teams, MDEC expects to break down silos and drive both synergies and efficiencies across teams. People, industry and investors will benefit from streamlined access to relevant subject-matter expertise, programmes and financial support initiatives. Internally, processes will be much less labour-intensive through digitalisation, enabling better customer service.
Malaysia as the Heart of Digital ASEAN
Malaysia is on track to achieve its bold aspiration to become the ‘Heart of Digital ASEAN’. The country ranked 8th within the Asia-Pacific region in the Global Innovation Index 2020, which ranks the innovation capacities of 131 economies in the world, and 11th in Startup Genome’s Global Startup Ecosystem Report 2020, which ranks the top 140 start-up ecosystems globally.
In the new tech age, digital innovations will serve as a social equaliser to drive shared prosperity for all Malaysians, which is why achieving Malaysia 5.0 must be a national priority. As the trailblazer of Malaysia’s digital economy, MDEC’s reinvention will pave the way for it to lead Malaysia to make the digital leap into the Fourth Industrial Revolution, cementing the country’s status as one of the foremost Asian nations to embrace the new digital-first reality.
The Malaysia Tech Month 2020 (MTM 2020) officially launched on 10 November 2020. The month-long campaign, organised by the Malaysia Digital Economy Corporation (MDEC) aims to showcase the country’s digital and technology ecosystem and kicked off with a two-day conference.
MDEC’s chief marketing officer stated that the agency wants the local digital and tech industry to share the challenges, their success and their innovations that they have faced and developed over the last couple of years, especially over the last six months, and to inspire the next generation of digital and tech entrepreneurs to learn from their experiences.
Fostering Malaysia’s digital ecosystem
Billed as the capstone campaign for MDEC, MTM 2020 aims to emphasise and fortify Malaysia’s role in expanding the digital economy and its first-mover position in ASEAN while drawing attention to the country’s readiness in leveraging opportunities that the Fourth Industrial Revolution (4IR) will spur and inspire.
An expansion of Malaysia Tech Week, MTM 2020 will provide a platform for a wide-ranging array of events, highlighting multiple collaborations with industry partners that are taking place throughout November.
The campaign serves as an overarching umbrella platform for all Malaysian digital and tech industry events in November. The launch day conference is just the start – MTM 2020’s partner events include Wild Digital Southeast Asia 2020: Virtual Edition; MyDroneTech Fest KL; MyDroneTech Fest Roundtable; State of the Global Islamic Economy 2020/21 Launch; LEVEL UP KL 2020: SEA Game Awards 2020; and LEVEL UP KL 2020: Play Day.
MTM 2020 was conceived when MDEC noticed several standalone events occurring in November. The agency looked at the content that was out there, and instead of having various smaller events or standalone events, we felt that we had an opportunity to curate all these great events that are happening.
It allows people to focus fully on what Malaysia’s digital tech ecosystem has to offer. Interest from industry has been seen as well as regional interest coming in, to look at the sheer diversity of solutions and passion that is coming out from Malaysia’s digital tech ecosystem.
MTM 2020 comes at an extremely opportune time as Malaysia is placing a growing emphasis on the digital economy. According to the Department of Statistics, the country’s digital economy is expected to contribute 20% of the economy by 2020.
It’s already on its way to achieving that easily, as Malaysia’s digital economy contributed 19.1% to the national economy in 2019, up from 18.7% in 2018. This year, the e-commerce sector will lead the charge as it is expected to exceed RM110 billion in revenue in that same period. This roughly equals to 40% of the nation’s digital economy.
Meanwhile, MDEC Chairman stated that the event will support Malaysia’s Shared Prosperity ambition as the digital economy continues to show tremendous potential for equitable opportunities. Beyond strengthening the confidence of the country as a compelling digital and tech investment hub for Southeast Asia, MTM 2020 enables Malaysia to further its collective goals in building a 4IR-ready workforce and widen its efforts to drive forward border-spanning innovations.
Moreover, the event is bringing together inspiring leaders and innovators to showcase Malaysia’s best, MDEC will continue to stimulate the growth of 4IR technologies, like artificial intelligence (AI), robotics and the Internet of Things (IoT).
MDEC’s CEO also stated that the agency is sparing no efforts to ensure digital technologies remain central to Malaysia’s socio-economic growth in this new norm. To achieve this, it must be ensured that the initiatives – both current and upcoming – are relevant to the needs of start-ups and SMEs. They must start to think regional and then go global. MTM 2020 serves as a strategic extension of the Malaysian government’s continued push to develop and sustain a vibrant digital economy.
Malaysia’s digital economy has been on a steady rise, growing at around 21% annually. In the wake of the COVID-19 pandemic, the Malaysian government recognised this growth as a crucial driver to stimulate economic recovery. The government has been continuously promoting the nation’s digital agenda through multiple policies and initiatives.
A key investment destination
Consistent growth and uptake of digital tools in the past few years are indicative of Malaysia’s robust Digital Economy and have attracted foreign investors. The Fintech adoption rate is also increasing in Malaysia and the region with consumers, wanting more financial inclusion, better fees, and easier ways to transfer funds. With high-speed broadband facilities and better digital literacy are also driving adoption.
4IR and Malaysia’s 5.0 Digital Economy
At the cusp of the Fourth Industrial Revolution (4IR), Malaysia has the opportunity to re-engineer the human experience using technologies that could decentralised authority and de-emphasise divisions along the lines of colour, creed and country – what the Japanese have coined as “Society 5.0”. This concept is now being adopted locally as “Malaysia 5.0”.
Now, MDEC is poised to take on a leading role in catalysing the transition to Malaysia 5.0 as a new narrative for the nation. This includes introducing using emerging technologies that are now considered essential tools in the new Malaysia 5.0 digital economy.
Malaysia 5.0 directly addresses financial inclusion, access, performance and growth through the 4IR tools, such as fintech, blockchain and artificial intelligence (AI). These digital initiatives and hubs will emerge as core components for the next-gen infrastructure of every country. They will be the ones facilitating the interoperability of goods and services that are flowing through them with interconnectivity between various market sectors.
4IR tech to propel Malaysia forward
The COVID-19 pandemic has resulted in a global standstill and impacted several industries – some more than others. Industries such as Food & Beverage (F&B), Aviation, Travel, Tourism and Retail experience unprecedented disruptions in supply chains and consequently led to a surge in unemployment rates.
According to the Chairman, the COVID-19 pandemic allows for the exploration of new technologies that could lead to more sustainable, inclusive and resilient economies and societies. New technological paradigms are introduced, reflecting the greater need for collaboration across all stakeholders. Interconnectivity in this extraordinary situation is crucial for the nation to achieve shared prosperity.
The country’s digital infrastructure and readiness to embrace technology allowed people to weather the storm. Ever since the Movement Control Order (MCO) was enforced, online services and e-wallet applications saw a considerable boost in users. People are ordering food, groceries and other necessities online to avoid contact and reduce the risk of COVID-19 infection.
In addition, Malaysia’s research arms are actively deploying IR 4.0 solutions to curb the spread of the virus. Business owners and employees embraced the new normal by espousing WFH practices and utilising cloud-based video conferencing solutions to participate in online meetings.
4IR represents new ways in which technology can be embedded within societies. The integration of robotics, machine learning, AI, Internet of Things (IoT), blockchain, financial technology (fintech), data analytics and drone technology with the synergy of 5G infrastructure will displace conventional technology and significantly alter the way consumers, industries and businesses operate.
Sustainable Digital Economy & Value Creation
By embracing 4IR and “Malaysia 5.0” for the nation’s economic recovery, Malaysia has achieved a balanced and equitable growth distribution across all layers of society. The emphasis on well-being and environmental conservation has always been at the forefront of development initiatives.
In the agricultural sector, modernisation and digital transformation would guarantee food security, increased productivity, strengthen supply chains and enable digitally skilled workers. For instance, in oil palm plantations and paddy fields, drone technology and other agrotechnology has helped plants and farmers monitor and enhance crop production to generate a more sustainable and viable source of income.
The adoption of emerging technologies in traditional industries such as agriculture is aligned with Malaysia’s Sustainable Development Goals (SDG) to improve the well-being and income of farmers, fishermen, agro-based entrepreneurs and livestock breeders.
Earlier this year, the World Economic Forum (WEF) and MDEC announced a joint effort to co-design pilot policy principles and regulatory frameworks to accelerate the utilisation of drone tech for societal benefits. Aside from increasing crop yields, drones can be efficiently used to identify dangerous conditions without putting workers at risk, act as a lifeline for remote populations and reduce carbon emissions.
Thus, 4IR technologies could establish a much better living environment; create new, more purposeful employment opportunities; upskill the labour force; better health and education, and create smarter, greener cities.
Spearheading digital transformation
MDEC positions itself at the vanguard of digital transformation by focusing on stimulating inclusive, high-quality growth. Its current role is to ensure Malaysia makes the Digital Leap and embrace the era of 4IR to drive shared prosperity and to reinforce the country’s role as the Heart of Digital ASEAN, a regional digital powerhouse and industry trailblazer. These are focused on three primary focused drivers: empowering Malaysians with digital skills, enabling digitally-powered businesses, and driving digital investments.
Focusing on the long-term
Malaysia’s digital economy is forecasted to contribute 20% to the economy by 2020, a surge of 2.2% since 2015. Backed by the launch of the Digital Free Trade Zone (DFTZ) in 2017 and the current global crisis, the e-commerce sector is expected to exceed RM110 billion by 2020, comprising nearly 40% of Malaysia’s digital economy.
MDEC had the foresight to encourage the development and testing of next-generation technologies such as blockchain and fintech. This proved fundamental in attracting many start-ups and foreign investors to be based in Malaysia. Addressing the growing demand for digitally skilled Malaysians, MDEC introduced the Tech Talent Development initiative to upskill and reskill the workforce. This has further sustained the nation’s investment appeal.
The Malaysian government also incentivised its industrial sectors by offering tax breaks for the electronics sector and related intellectual property (IP); automation equipment capital allowance for services; and provision of incentives for digitalisation and innovation efforts to accelerate digital transformation.
