KUALA LUMPUR: Pikom, the National Tech Association of Malaysia, welcomes a very progressive and forward-looking economic recovery plan and feels that this is the best time to fully utilise the potential of the digital economy based on the announcement of the government's Short-Term Economic Recovery Plan by the Prime Minister Tan Sri Muhyiddin Yassin.
Pikom said the focus on digitalisation and automation would place Malaysia in good standing in the post Covid-19 recovery phase. The association added that the allocation of RM700 million to drive digitalisation of businesses and innovation and smart automation funds of RM100 million will be a shot in the arm that is greatly needed to provide the leap for Malaysia into the digital economy. In addition to that, as an effort to encourage micro enterprises and SMEs to use digital services, the government together with the private sector will finance this effort.
"This importance of the Digital Economy is very much central to the economic recovery efforts. This will greatly benefit the tech industry," says Pikom chairman, Danny Lee.
He said the RM140 million matching grant and the RM70 million Shop Malaysia Online allocation for e-commerce are also a great boost for the industry and will help micro enterprises and SMEs to be positioned for the digital revolution taking place.
"We also applaud the RM700 million funding provided for SMEs and mid-tier companies. These grants and funding will be the bridge for SMEs and mid-tier companies to cross the chasm into the digital realm," added Lee.
The venture investment and risk capital needs of start-ups and growth stage companies also received the attention of the Government with the setting up of the Dana Penjana Nasional Investment Fund.
Pikom said the announcement is indeed timely as the organisation, through its Future Digital think tank, has been calling for a setting up of a technology sandbox.
It further said that the pivot towards a digital strategy is also evident with the delivery of Government service, a Buy Malaysia campaign anchored on digital platform and the matching allocation of RM50 for e-wallets. This will provide a catalytic effect on the digital economy.
Pikom also said the economic recovery can only be sustained if Malaysians continue to be employed. The extension of the Wage Support Scheme and the Hiring and Training Assistance accorded to businesses are greatly appreciated. This is complemented by the reskilling and upskilling programmes, including the Place-and-Train funding.
"The technology sector is prepared to work closely with the Government to place unemployed graduates and retrenched workers into a training programme that will equip them for employment in our sector," said Lee.
Besides that, Pikom also applauded the government on its call to include incentives towards training and apprenticeship.
It said the 1GB free Internet for all users daily until Dec 31, 2020 as part of the Short-Term Economy Recovery Plan will also help plan long-term strategies for continuous online lessons.