Digital economy to contribute to 22.6% GDP by 2025: Mustapa

By SHAFIQQUL ALIFF / Pic by TMR FILE PIX

MALAYSIA’S digital economy is expected to contribute to 22.6% of Malaysia’s GDP, and create about 500,000 new jobs by the year 2025, says minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed.

He said Malaysia remains committed to its target of becoming a technologically advanced, digitally-driven nation and the regional digital economy leader by 2030 as set out under the MyDigital initiative.

“For businesses, there will also be more opportunities for businesses to build and expand, with digital revenue streams to increase cost efficiency through cloud technology,” he said.

He added that the government targets 875,000 micro, Small and Medium Enterprises (SMEs) to embrace digital e-commerce in society and aims to bring 80% of its services online for both by 2025, as a digitally-enabled government will improve efficiency, effectiveness, and transparency.

“We believe in the importance of public-private partnership, where the private sector must be equal partners in driving MyDIGITAL so we can achieve our digital economic goal.

“The government will be a catalyst, creating a facilitative policy environment so that the private sector can bring the necessary capital and skills for digital transformation,” he said in his speech during the Grow with Google 2021 live stream event today.

Mustapa said, according to AlphaBeta research, the digital transformation has the potential to generate up to RM257.2 billion, with a significant 72% – RM184 billion – driven by technologies that can help businesses and workers mitigate the effects of COVID-19 in annual economic value in Malaysia by 2030.

“During this challenging period, Malaysians have shown remarkable resilience as we evolve and adapt to the changing situation brought about by the pandemic.

“The digital economy and technologies are crucial in helping businesses stay afloat, allowing students to continue learning, job seekers to continue upskilling through online courses, and families to stay connected,” he said.

Mustapa further added that Google has been a committed industry partner in advancing Malaysia’s economic recovery and our digital economic vision, such as Google’s flagship scaling program, mahir digital bersama Google, which provides free training for MSMEs to help them grow their businesses online.

“More than 15,000 Malaysians have benefited from it, and we encourage similar initiatives from the private sector since the programme was launched in 2019 .

“As we move forward, it is my hope that my digital initiative will set the country on the path to capture the digital economy opportunity and benefit our rakyat, businesses, and broader society,” he said further.