On July 19, 2021, MDEC announced a five-year plan aimed at boosting Malaysia’s digital economy, The Future of Digital Investments 5 (DIF5).
This plan is in line with the objectives MyDIGITAL chart To attract investments of RM70 billion by 2025. For a period of five years, this initiative aims to:
- insurance 50 billion Malaysian ringgit in investments;
- focus on 5 major industrial sectorsAnd 5 Focus TechniquesAnd 5 Emerging Technologies, And Global Digital Business Services;
- Attract 50 Fortune 500 Technology companies to land and expand in Malaysia;
- foundation 5 unicorns; And
- Create 50,000 high-value jobs in a MSC Malaysia (Formerly known as Ultra Multimedia Arcade).
Focus on 5 major industrial sectors:
In other words agritech (agriculture + technology). it’s a Use of scientific techniques To promote the agricultural sector such as the use of automated irrigation systems to reduce labor when farming.
From Latest Department of Statistics Malaysia (DOSM) In 2019, the agriculture sector is 3rd largest contributor to GDP (7.1%, or RM101.5 billion) for the country, next to the mining and quarrying sector.
It was the global agricultural industry Worth over $9.6 trillion In 2020. Despite the pandemic, the industry is also expected to grow at a compound annual growth rate of 6% in 2021, according to a collaborative report by Deloitte and MaGIC.
With the MoU contributing to the increasing use of technology in agriculture, it is estimated that there will be a 30% increase in job opportunities to be created by 2025 in this sector, including youth.
they technology Such as artificial intelligence, medical devices, IT systems, algorithms, cloud and blockchain, etc., designed to support the healthcare industry.
By 2027, our domestic healthcare sector will be Expected To grow to 127 billion Malaysian ringgit. Moreover, more than 90% of domestically manufactured medical devices are exported, and Malaysia supplies 60% of the global market for medical gloves and 80% for catheters. In fact, the global market for this sector alone in healthcare is expected to reach US$33 billion in 2021.
3) Islamic Digital Economy (IDE) and Financial Technology
Global Islamic finance assets are expected to grow close to 4 trillion US dollars By 2024, and locally, FIKRA Islamic Fintech Accelerator Program Already planning to sponsor promising startups in this sector.
Malaysia holds a strong position in Islamic Fintech, boasting of The largest number of service providers The world’s ranking being Number one in the Islamic economy Globally through the State of the Global Islamic Economy Report 2020/2021.
4) clean technology
it’s a synonym With green technology, which includes renewable energy sources, new recycling methods, and other technologies used to improve environmental sustainability. Globally, this industry is expected to generate a Revenues $57.8 billion in 2030.
Malaysia also has Pledge To reduce greenhouse gas emissions by 45% compared to the country’s 2005 GDP under the Paris Agreement in 2016, hence the urgent need for the public and private sectors to get more involved.
EduTech refers to Implementation of techniques For educational purposes, inside and outside the physical classroom. It’s a segment that has seen growth in many educational apps, online classroom sites, and more.
By 2025, a global education market Spending will total US$404 billion, according to market intelligence HolonIQ. Domestically, the e-learning market in Malaysia was already Vision Compound annual growth rate (CAGR) of 16.4% in 2019.
The Malaysian online learning market is now expected to Exceed US$2 billion by 2023, thanks to the growing demand for education technology, smart classes, etc., especially during the pandemic.
The Five Focus Techniques to Help Segment Growth:
- Cloud computing: the delivery From various online services such as data storage, servers, databases, networks, and software. Google Drive is one of the common examples of cloud computing that most of us use.
- Data Center: a physical facility They are used by organizations to house their critical applications and data, and they look almost like shelves in a library.
- Artificial intelligence: technologies that Imitate sound and movement The problem-solving and decision-making capabilities of the human mind.
- Electronic Security: the protection Networks, devices and data from unauthorized access or criminal use and practice ensuring confidentiality, integrity and availability of information.
- digital content toolsWebsites and software used to create or consume digital content.
Growing 5 emerging technologies:
- Blockchain: a decentralized ledger For all transactions over a peer-to-peer network.
- DroneTech: Technology that powers drones remote Or they are controlled independently using built-in software.
- edge computing: a distributed A computing framework that brings enterprise applications closer to data sources such as IoT devices or local edge servers.
- Extended Reality: also a favour Like XR, which is the umbrella term for virtual reality (VR), augmented reality (AR), and mixed reality (MR) – basically all things related to the virtual environment.
- Advanced robotics: unlike Traditional robots that you may have encountered in your school days, advanced robots are able to act independently.
According to the MDEC, these “will increase the economic complexity of the nation and help develop new and existing economic clusters which in turn create high-value jobs and expanded local economic linkages,” which is in line with Malaysia’s national investment aspirations (Nia).
Furthermore, besides contributing to our National Digital Economy Plan, these technologies will also be linked to the upcoming MDEC Global Testing Initiative, which will enable Malaysia to be a testbed for upcoming technology investments.
In addition, they will work to develop the nation’s intellectual property and talent pool in future technologies as this initiative will collaborate with higher education institutes and think tanks.
Besides developing and attracting new technologies for DIF5, MDEC will also increase efforts to grow digital global business services. This is so that they can enhance the use of automated process automation and data analytics as well as knowledge engineering.
dictionary time: Knowledge engineering is an area of artificial intelligence (AI) that develops rules that are applied to data in order to simulate the thought process of a human expert on a particular topic.
To start DIF5, MDEC returned Malaysia Technology Month 2021 (which debuted last year) on July 29, 2021, and this virtual event entails workshops, panel discussions, and business matching sessions and it’s all free.
- You can learn more about MDEC DIF5 strategy over here.
- You can read more MyDIGITAL articles we wrote over here.
Featured Image Credit: Open Gov Asia (left) and Surena Shoukry, CEO of MDEC (right)