KUALA LUMPUR: The adoption of 5G technologies will increase Malaysia's gross domestic product (GDP) by five per cent or RM122 billion in 2030.
According to Ernst & Young Consulting Services Sdn Bhd (EY), 5G will also support the creation of 148,000 jobs across the economy and contribute to an increase in high-skilled jobs.
"The uplift of GDP and creation of jobs are expected to begin with the rollout of the single wholesale 5G1 network (SWN) in 2021.
"This will steadily increase in the years to 2030, and extend beyond 2030," EY said in a report entitled "Estimating the economic impact of the Single Wholesale 5G Network in Malaysia".
The report was published by Digital Nasional Bhd (DNB) in conjunction with the National Digital Economy and Industrial Revolution 4.0 (4IR) council meeting chaired by Prime Minister Datuk Seri Ismail Sabri Yaakob.
The report sets out EY's objective forecasts based on robust data sourced from the Department of Statistics and the firm's third-party data sources, as well as qualitative interviews with industry leaders.
Meanwhile, DNB said EY's second economic model indicated that its direct investment in the 5G network could generate an additional GDP contribution of RM20.9 billion.
Of this, an estimated RM7.9 billion (or 38 per cent) relates to the GDP generated directly by DNB through its expenditure on operating and corporate costs, with RM13 billion generated throughout the supply chain and wider economy.
"At the peak of the network deployment in 2022, DNB's investment could support over 14,800 jobs across the economy through the increased demand placed on the sector's supply chain," it said.
Thus, DNB said the overall impact on the economy will be generated by private investment as the cost of deploying the 5G network will be funded entirely by the private sector through DNB, with no government allocation, funding or guarantees involved.
The report also considers the wider socio-economic and environmental benefits that could be realised with the SWN being developed by DNB for 5G services.
It highlights that the SWN will help bridge the digital divide and provide a more level playing field in terms of connectivity.
This is by providing the rakyat with accelerated access to a high-quality broadband connection, especially in rural areas.