Digital strategy to lift economy

2010/10/08
By Farrah Naz Karim
farrah@nst.com.my

PUTRAJAYA: Malaysia is set to embark on the third phase of its Multimedia Super Corridor (MSC) with focus on shifting to the innovative digital economy.

Prime Minister Datuk Seri Najib Razak said the new phase, to begin from next year until 2020, would see Malaysia increasing its leverage on information and communications technology (ICT) to catapult the country to a new economic level.

He said with sound initiatives carried out, the ICT sector could contribute 10.2 per cent of the country's gross domestic product by 2015.

He said in executing a well-planned digital strategy, the Multimedia Development Corporation (MDeC) would spearhead five recommendations yielded from the 22nd Implementation Council Meeting and the 13th MSC Malaysia International Advisory Panel that would ensure Malaysia continued to compete and excel on the global front.

The MDeC will lead in:

- the development of the architecture for a national Innovative Digital Economy framework;

- the infusion of technology across all economic sectors in driving productivity and innovation;

- making Malaysia a vibrant hub for creation of ICT solutions leading to become a net exporter;

- ICT empowerment as a source of national competitive advantage; and,

- pervasive use of ICT to increase the quality of life across all communities.

Najib, who chaired the meetings at his office yesterday, said ICT would play a key role in the Economic Transformation Programme.

Under the ETP, 85 of the 131 entry points projects, which are collectively worth RM670 billion, are ICT-dependent, with 28 of them being ICT-intensive.

The prime minister said the second phase of MSC, which is coming to an end, had been extremely successful with the targets set surpassed.

The second phase, he said, had contributed RM35 billion towards the GDP between 2004 and now, creating 83,000 jobs, and strengthening Malaysia’s position as a global ICT hub with new sub-sectors. This resulted in the emergence of a new class of technopreneurs.

“Now on the cusp of phase three of the MSC Malaysia agenda, the way forward requires us to start working towards an innovative digital economy.

“Our goal is to stimulate human creativity with new technologies, outlets and opportunities,” Najib said, adding that these as catalysts would, in turn, lead to innovation in products, services and processes created.

These would also promote productivity for individuals and businesses while giving a boost to their competitiveness in the global digital economy.

Najib said the digital economy contributed 35 per cent to the global trade of US$17 trillion (RM59.5 trillion) last year and that global e-commerce revenues
would hit US$3.8 trillion by 2020.

He said talent development would continue to be a prime focus, with initiatives put in place to improve the quality of graduates entering the workforce and attracting those abroad to return.

Key initiatives would focus on expanding partnerships with industry players in a “Finishing School” programme to train 25,000 knowledge workers and
work with institutions of higher learning to deliver curriculum that was market-driven.

Najib said that annually “1,000 qualified foreign students from local institutions of higher learning would be issued work permits to address the projected shortfall in ICT talent”.