BUSINESS

TECHNOLOGY, DIGITALISATION TO ENABLE BUSINESS, ECONOMIC GROWTH UNDER 12MP -- MIDF

28/09/2021 12:10 PM

KUALA LUMPUR, Sept 28  -- The adoption of technology and digitalisation is expected to be the enabler of growth for businesses and the economy in general, said MIDF Research.

Commenting on the 12th Malaysia Plan (12MP), which targets the digital economy to contribute 25.5 per cent to the country’s Gross Domestic Product (GDP) by 2025, it said the advent of technology and connectivity will support local business and economic activities as well as attracting greater interest by foreign companies to invest and set up their operations in Malaysia.

“The government’s push to improve the logistics ecosystem will allow Malaysia to cater for a larger amount of trade activities efficiently. This can be achieved through greater digital adoption by local players,” it said in a research note today.

MIDF Research pointed out that the stress on developing the digital economy in Malaysia is not new.

“As we move towards adopting the Fourth Industrial Revolution (or 4IR), the 12MP development will also cover the growth agenda that has been outlined in the National Digital Transformation Plan (JENDELA) to make Malaysia a regional technology hub.

“This will include increased investment to improve digital infrastructure such as widening the coverage of broadband services, upgrading the mobile broadband speed, expanding the coverage of the 4G network and preparing the adoption of 5G,” it said.

The research house noted that the government’s push to improve the logistics ecosystem will also allow Malaysia to cater for a larger amount of trade activities efficiently. “This can be achieved through greater digital adoption by local players,” it said.

MIDF Research said as expected under the 12MP, the government also stresses on the need to grow local micro, small and medium enterprises (MSMEs) as part of the development agenda to revive and promote growth in Malaysia’s economy.

“Undeniably, the performance of MSMEs was badly affected by the pandemic, but the ability to adopt digital and technology has improved their resilience during this tough time.

“The importance of MSMEs to the economy needs to be boosted. Although these enterprises account for 97.2 per cent of establishments in the country, they only contributed around 38.5 per cent to GDP and 13.5 per cent to total exports in 2020,” it said.

Apart from promoting greater adoption of technology and digitalisation, the 12MP will also encourage the creation of home-grown enterprises as local champions in the halal industry and improving the access of MSMEs products to the international market, it said.

To further boost MSMEs productivity and development, the government aims to develop entrepreneur capabilities to become more innovative.

 “The MSMEs are also able to tap various grants that have been made available for research, development, commercialisation and innovation. They can also tap and benefit from the government supports that are provided through business associations and cooperatives.

“All these developments and supports are expected to further boost the contribution of MSMEs to the economy to 45 per cent of GDP and 25 per cent of total exports by 2025,” it added.

-- BERNAMA

 

 


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