HomeNewsBeritaBusinessLifestyleOpinionWorldSportsPropertyEducationCarzillaGalleryVideosAccelerator

Economists optimistic on new ministry driving digital economy

-

A dedicated ministry is crucial for crafting policies and overseeing the country’s digital transformation journey, says an economist.

0
Shares
Total Views: 1
Free Malaysia Today
To boost the country’s digital economy, the government needs a new strategy and philosophy with input from independent advisors, says an economist.

PETALING JAYA:
The new digital ministry announced by Prime Minister Anwar Ibrahim following a Cabinet reshuffle today will help push the digital agenda more assertively, not just in economic terms but also in social and governance terms, said economists.

Malaysia University of Science and Technology economist Geoffrey Williams said digitalisation is happening at a very fast pace and government policy must also keep pace to maximise the economic and social impact and ensure maximum digital access and involvement.

“According to the statistics department, the digital economy is just below 25% of the national economy with 1.2 million people employed in the information and communications technology (ICT) sector.

“But this is the tip of the iceberg because digital economy activity and e-commerce is extending to all aspects of the economy and almost 80% of transactions are e-payments,” he told Bernama.

Williams said this in response to the appointment of Damansara MP Gobind Singh Deo as the new digital minister today.

“Our estimates for the Malaysia Digital Economy Corporation (MDEC) show that the Sharing Economy platforms where most gig economy and digital economy take place will employ four million people by 2030,” he added.

Concerning ways to boost the country’s digital economy, he said there is a need for the government to have a new strategy and a new philosophy with input from independent advisors.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the evolving nature of the digital economy warrants a specific role or ministry to oversee and craft the necessary policies in the country’s digital transformation journey.

“We have seen that gig employment is gaining momentum due to the proliferation of technology and we want to ensure the transition will not be disruptive and provide the right ecosystem for the digital economy to be aligned with the mainstream economy.

“This may include the type of investment, the talent pool, and the necessary infrastructure such as payment system, etc., to support the transition,” he said.

Putra Business School associate professor and director of MBA programmes, Ahmed Razman said the country’s digital economy can be boosted through government investment in digital infrastructure, human capital development, and attracting high-tech investments from abroad, and at the same time champion domestic digital players.

Recently, the communications and digital ministry reported Malaysia’s digital economy is set to hit its goal of contributing more than 25.5% of the nation’s gross domestic product (GDP) by 2025.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.