Malaysia; Multimedia Development Corporation (MDeC), Datuk Badlisham Ghazali


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  • Good morning honourable Ministers and distinguished guests,I am honoured to be part of this panel discussion and happy to share Malaysia’s development and progress in the Digital Economy.
  • To start off, I would like to provide some background on Malaysia.Today, Malaysia is at a turning point. We are in the midst of realising our Vision 2020 goals which will see the country transformed into a high income and developed nation where there is sustainable development and inclusive policies.
  • Malaysia is not starting from ground zero when it comes to the digital economy. Existing efforts have created a sound infrastructure, strong domestic ICT supply and high digital consumption.Malaysia has developed a world-class infrastructure and infostructure. Broadband penetration doubled between 2008 and 2010. Our mobile penetration is high at 128% as compared to the 46% penetration rate across South Asia.The country’s National ICT initiative, MSC Malaysia, have resulted in a strong supply of local ICT products and services. Today, Malaysia has over 4,000 ICT companies, mixture of both local and multinationals.Currently, netizens form 63.7% of our population and they spend more time surfing the internet compared to any other media such as television. For your information, Malaysians are very sociable and friendly. Close to half of the population are on Facebook.
  • Malaysia has already emerged strongly as a leading Digital Economy among developing countries.It is an opportune time to move Malaysia into the leading pack of developed countries.The broad goals of Digital Malaysia are to increase GNI, enhance productivity and improve standard of living.In 2010, Malaysia’s ICT contribution to GDP stood at 9.8%. We were ranked 36th position in EIU’s 2010 Digital Economy rankings and 16th position in IMD’s 2011 World Competitiveness Scoreboard.By 2020, Digital Malaysia aims to increase ICT’s contribution to GNI to 17%emerge in the top 20 rankings in EIU’s Digital Economy rankings and take the top 10 position in IMD’s World Competitiveness scoreboard.
  • To realise Vision 2020, Malaysia is undergoing transformation in multiple ways from the way the Government is doing business to enhancing the livelihood of rural communities.The country is also undergoing digital transformation through Digital Malaysia which serves as a cornerstone of this national transformation agenda.
  • So, what exactly is Digital Malaysia.Digital Malaysia is the nation’s programme to advance Malaysia towards a developed digital economy by 2020.It will create a vibrant digital ecosystem which will lead to increased wealth, productivity and a higher standard of living for all Malaysians
  • How we will do it? By focusing on the 3 strategic thrustsCurrently the Malaysian public sector spends almost 54% of its ICT investment on building information-based infrastructure. Initiatives such as the High Speed Broadband project have successfully ensured that the supply of the ICT infrastructure needed to prepare this nation for the change is in place. In order to fully leverage on the existing initiatives, Digital Malaysia will focus on initiating more demand-focused activities that will maximise usage of existing information and infrastructure to enhance ROI before obsolescence sets in. Digital Malaysia also targets to develop industries especially new sources of growth that will create high-value jobs. Malaysians are no strangers to the internet. We consume information and use the internet extensively for social networking, news and research but Malaysians have yet to fully capitalise on the internet for revenue generation. Digital Malaysia intends to create platforms and programmes to nurture and grow netizens to become producer-consumers or prosumers. It also plans to create new income generation opportunities via new digital business models.Currently Malaysian companies have low business ICT usage, as well as low knowledge-intensive activities and outputs. Malaysian SMEs’ contribution to GDP also remains low, at 32%. Digital Malaysia will promote innovative digital business models that will drive the creation of high-value products and services. Through its projects, it will also target to increase productivity of employees through automation and innovative digital tools.
  • Moving forward, Digital Malaysia initiatives will be demand-centric and do not only address current needs but also anticipate future ones.To date, 4 Digital Malaysia Initiatives have been launched and we expect more to be created. The first initiative, Tap Demand for Digital Products and Services, aimsto capture new opportunities in digital technologies and digital business models such as cloud enterprise applications, gamification, micro sourcing, data analytics.The second initiative, Increase Citizen Income and Unlock Entrepreneurship Potential,aims to help citizens generate new sources of income. The third initiative, Nurture A New Generation of IT-savvy Youth, aims to empower next generation of workforce with digital skillsets and productive use of digital tools.The fourth initiative, Enhance SME Productivity, aims to drive technology adoption amongst Malaysian SMEs to enhance their productivity.
  • In a nutshell, Digital Malaysia is the mirror image of the country’s digital economy. To end my presentation for today, here is a short video on Digital Malaysia. Thank you.
  • Malaysia; Multimedia Development Corporation (MDeC), Datuk Badlisham Ghazali

    1. 1. Malaysia’s Digital Transformation Programme Presentation by Datuk Badlisham Ghazali CEO, Multimedia Development Corporation
    2. 2. Vision 2020Transforming Malaysia into a developed nation by 2020 Page 2
    3. 3. The Digital Age has changed our lives and isimpacting Malaysia in these ways Page 3  Malaysia’s Digital Economy has direct impact on the overall economy of the nation and has multiplying effect  Key aggregated components identified are:  ICT contribution to GDP/GNI  e-Commerce  ICT impact on productivity  ICT impact on standard of living  ICT investment and adoption that contributes to national competitiveness
    4. 4. Existing efforts have created sound infrastructure, strong supply & high consumption of ICT… 4 INFRASTRUCTURE SUPPLY CONSUMPTION 81% national fixed line and Over 4,000 63.7% Internet userswireless broadband penetration ICT companies in in Malaysia1 rate in populated areas 1 Malaysia4 *Internet users spend nearly 20 hrs/wk online, compared to 10.6 hrs watching broadcast TV Mobile penetration rate 658 IPs developed by MSC 49.54% (12.9 mil) is 133.3%1 Malaysia companies in 2012 Facebook penetration rate2 alone3 Source: 1Q2 2012 MCMC 2 3 MSC Malaysia AQIR Q2 2012 Results 4PIKOM, September 2012
    5. 5. … but more needs to be done Digital Malaysia’s Aspirational Goals MALAYSIA MALAYSIA Measures of Outcomes 2010 2020 ICT contribution to GDP 9.8% 17%2 (2010)1 Digital economy rankings #36 Top 20 2010 Economist Intelligence Unit (Rank out of 70 nations) IMD World #16 Top 10 competitiveness scoreboard 2011 (Rank out of 59 nations) 1. Malaysia Stats : RM10 K Plan, EPU 2. Figure denotes contribution to GNI in 2020 and it includes e-Commerce & ICT
    6. 6. Digital Malaysia is a Cornerstone of the NationalTransformation Agenda
    7. 7. What is Digital Malaysia Page 7 Digital Malaysia is a national programme to advance the country towards a developed digital economy by 2020.It will create an ecosystem that promotes the pervasive use of Digital Technology in all aspects of the economy to connect communitiesglobally and interact in real time resulting in increased GNI, enhanced productivity and improved standards of living.
    8. 8. Game Changing Focus via 3 Strategic Thrusts 8
    9. 9. Moving forward, efforts will be demand- centric: 4 DM Initiatives 9 TAP DEMAND FOR NURTURE A NEW DM DIGITAL PRODUCTS AND DM GENERATION OF IT- Initiative #1 SERVICES Initiative #3 SAVVY YOUTH Create 53% Catalyse 4,000 leadership 5 mil producers of IT Savvy Youth of workforce are Digital entrepreneurs in new IT Savvy digital goods & niche areas producers servicesCapture new opportunities in the ICT landscape by focusing on Empower next generation of workforce with digital skillsets andnew digital technologies/ models such as cloud enterprise productive use of digital toolsapplications, gamification, micro sourcing, data analytics INCREASE CITIZEN INCOME ENHANCE SME DM & UNLOCK DM Initiative #4 PRODUCTIVITY Initiative #2 ENTREPRENEURSHIP POTENTIAL Impact min. of US$2,310 Additional 1% SME 1M Citizens Avg. digital income 100,000 contribution to GDP per annum Malaysian SMEsIncrease income of 1M citizens via digital means to uplift quality Drive technology adoption amongst Malaysian SMEs to enhanceof life productivity
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