Digital economy to contribute 20% to GDP

By KEVIN WONG / Pic By TMR

Malaysia Digital Economy Corp (MDEC) has projected that digital economy would contribute 20% towards the country’s GDP by 2020.

MDEC COO Datuk Ng Wan Peng (picture) said the projection is slightly higher than an earlier target of 18.2% that has already been achieved.

“At the end of 2016, the digital economy had contributed 18.2% towards the country’s GDP, which was our target for the year 2020.

“And upon obtaining data from the different indicators which worked together with the Department of Statistics of Malaysia, we believe that we should increase the digital economy’s contribution to the GDP to 20% by 2020,” she told reporters at the Digital Economy Forum 4.0 yesterday in Kuala Lumpur.

She said MDEC is optimistic that the new target is achievable.

On the progress of digital economy for 2017, she said MDEC is still in the process of compiling the data as it comes from different sectors.

Ng added that major progress had been made in the industry over the past few years due to the efforts from all sectors.

“At the same time, the government has always been supportive of this and I believe, moving forward, we will see even more effort in promoting the use of digital technologies.

“Additionally, based on our assessment, we have seen the acceptance of the technology getting higher where industry associations such as the Federation of Malaysian Manufacturers are working together with us to introduce digital technologies to their members,” she said.

For the upcoming Budget 2019, Ng said MDEC’s proposal includes suggestions which would promote the creation of an ecosystem to support and enable the different initiatives in the digital realm.

“Also, we are focusing on industry development as it will bring positive impact to the country’s economy when an industry is performing well,” she said.