THE local tech industry has given a thumbs-up to the recent Budget 2021, saying it will positively impact in boosting the country's digital economy.
The Malaysia Digital Economy Corporation (MDEC) believes the measures announced is a clear reflection of the Government's focus on ensuring the rapidly growing digital economy needs are met and local businesses are able to digitise quickly.
This is to address the immediate challenges brought on by Covid-19, an unprecedented event that forcefully shifted people and businesses to digital technologies and solutions for all their daily routines.
"I believe this is now the time for businesses to embrace the opportunity to pivot and scale operations with digital technology. MDEC will intensify our outreach programmes and field research work to develop the best solutions that will help Malaysian citizens and businesses take on the challenges they now face during this unprecedented period," said MDEC's chairman Datuk Dr Rais Hussin Mohamed Ariff.
He said the allocation of RM100 million to drive talent development is necessary as it will help facilitate the transition of Malaysia's existing workforce into the digital economy, a constantly evolving marketplace that places heavy emphasis on digital skills.
"This will directly help to fulfil the growing demands of the booming Information and Communications Technology (ICT) sector," he added.
Echoing Rais' statement, MDEC's CEO Surina Shukri said the RM100 million allocation will enable MDEC to continue its programmes that focus on nurturing more digitally-skilled Malaysian talents and improving their marketability via targeted job-matching processes, both of which will open doors to various digital career opportunities.
"We will continue to work closely with the respective ministries, agencies and strategic partners to support various digital talent development programmes. In addition to the initiatives we have for students and graduates from our Premiere Digital Tech Institutions (PDTI), other programmes like the Digital Skills Training Directory and #MYDigitalWorkForce Movement will also be expanded. Of course, this includes other skill development related institutions. In fact, just recently, MDEC organised the #MyDigitalworkforce Week – an event saw more than 10,000 applications being submitted for proper digital-based job opportunities," she said.
COMPLEMENTING EXISTING INITIATIVES
Meanwhile, Pikom (the National Tech Association of Malaysia), feels the Budget 2021 announcement is a continuation of various programmes that are currently ongoing during the recovery phase of Covid-19.
Its chairman Danny Lee said the budget seems too focused on the Covid-19 recovery process, which has already started in June. "Therefore, what is being laid out is not a game changer for Malaysia as it lacks longer-term economic transformation impetus," he said.
However, Pikom applauds the focus and allocation of RM27million for cybersecurity programs as it is an integral part of the digital transition under the Malaysian Digital Economy roadmap in collaboration with the private sectors.
"In addition to that, the budget of RM100 million for MDEC to upskill existing work force in the tech industry will complement the HRDF Penjana Initiative that is currently ongoing till 2022," said Lee.
"We also foresee a boost in electronic and IT device purchases with the additional lifestyle allowance increase to RM3,000 which will help boost IT purchase. The move for GLC to contribute RM150 million for the purchase of laptops for 150,000 students in 500 schools under the CERDIK fund is also welcomed," he added.
Besides that, Pikom also views positively the shot in the arm given to Equity Crowd Funding (ECF) which will play a catalytic role in the start-up scene.
"Continued funding for digital transformation is also a boon which would provide a continued momentum to companies embarking on their digital journey. The focus on e-commerce and e-wallets while commendable may not have been sufficiently wide enough to cover all segments of society," said Lee.
E-COMMERCE BOOST
In the e-commerce space, Lazada Malaysia says it is pleased that the government continues to recognise the value of e-commerce enterprises and their role in bolstering the nation's digital economy.
"We have been working closely with the government on their Penjana Micro & SMEs eCommerce, Penjana Shop Malaysia Online, Buy Malaysia and Selangor e-Bazar initiatives, and have seen the positive business benefits for SMEs during this challenging period,' said its CEO Leo Chow.
"We are appreciative of the total allocation of RM300 million for the continuation of the Penjana Micros and SMEs e-commerce and Shop Malaysia Online Campaigns, which will further encourage online shopping and serve to benefit over 500,000 local SMEs to help them reap the benefits of the digital economy," he added.
Meanwhile, Shopee said it is encouraged by the continuation of initiatives like Shop Malaysia Online as well as Micro, Small and Medium Enterprises (MSMEs) e-commerce campaign that are aimed at spurring local consumption, stabilising cash flow, boosting revenue as well as driving economic growth through e-commerce platforms.
"Shopee will complement these initiatives and double our efforts to help businesses get onto the digital ecosystem through our free Shopee University seller workshop and in-app features such as Shopee Live, mobile wallet ShopeePay and more," said Shopee's regional managing director, Ian Ho.
"We take heed of the mandate to e-commerce players like ourselves and will deepen our commitment and contribution to ensuring the Rakyat's prosperity, business continuity and economic resilience through our technology," her said, adding that Shopee has also digitised more than 40,000 Malaysian MSMEs through the Penjana MSME E-commerce campaign.
ADDRESSING SECURITY NEEDS
Sophos Malaysia's managing director Wong Joon Hoong, said as companies struggle to find their footing in terms of operations, there is also the looming threat of cyberattacks, which has seen an uprise as we navigate in the new norm. In response to this, the government has stressed that national cyber security would continue to be a priority in the national defence and security agenda by allocating RM27mil to CyberSecurity Malaysia to improve the cyber security safety of the country.
"A key focus for Budget 2021 is the development of the national project Jalinan Digital Negara Plan. This would enable the provision of a comprehensive and improved broadband service coverage across Malaysia. It is a strategic and crucial step for the nation's digital transformation as strong connectivity infrastructure helps build the foundation for other robust technologies – including cloud computing, a much needed technology for the new flexible workforce," he said.
"The availability of a stronger connectivity, coupled with a remote workforce, will also mean that chief information security officers (CISOs) must implement strategies to establish secure connections, while preventing new network threats that target remote employees, servers, and newly established digital platforms during the Covid-19 pandemic," he added.
For MYNIC, the official registry for .MY domain names, the government's allocations are dedicated to give SMEs and micro-SMEs a boost to help keep them afloat.
Its CEO Datuk Ts Hasnul Fadhly Hasan said he is pleased to see that wage subsidies have been increased and extended; and that the government has allocated RM1 billion to boost digitisation activities.
"I am encouraged that the Budget has set aside RM4.6 billion to help provide financial assistance to SMEs and micro-SMEs, with a special emphasis on supporting female entrepreneurs.
Hasnul said that MYNIC will continue to play its part in digitally-enabling Malaysians, particularly the rural and OKU communities. "We will continue to train these communities, and encourage them to bring their businesses online and contribute to Malaysia' digital economy," he said.
EMPHASIS ON IR4.0
Cisco commended the focused measures to accelerate digital transformation in various areas and industries, including the emphasis on Industrial Revolution 4.0 (IR4.0) technologies such as automation in the commodity and SME sector.
"This includes the allocation of RM1 billion under the Industry Digitalisation Transformation Scheme and additional RM150 million under the SME Digitalisation Scheme Grant and Automation Grant that will spur the manufacturing and labor-intensive industries to rethink their strategies as reliance on human capital decreases, impact of border control measures continues and market demands changes," said Cisco Malaysia's managing director, Albert Chai.
"Moving forward, we believe digital transformation readiness will be especially critical for the SMB sector to encourage operators and owners to turn what were started as stop-gap measures into long-term gains. As we foresee the sector's continued digitalisation potentially adding between US$19 to US$24 billion (RM79 billion to RM99 billion) to the country's GDP by 2024, we welcome the additional funding and incentives that continue to support SMEs along their recovery path while spurring the pace of their technological adoption and digitalisation," he said.
For Airbnb, the Budget reflects the government's commitment of driving recovery for the tourism industry.
"The RM50 million allocation for the improvement of tourist facilities at main attractions, RM20 million allocation to improving the infrastructure and promotion of cultural villages in certain states, as well as RM10 million allocation to preserving national heritage buildings as iconic tourist spots are all vital towards strengthening Malaysia's tourist offerings," said its Head of Public Policy (Southeast Asia), Mich Goh.