KUALA LUMPUR: The government has allocated RM1.2 billion to drive Malaysia's economic recovery through the process of digitalising local businesses.
Under the short-term Economic Recovery Plan (Penjana), Prime Minister Tan Sri Muhyiddin Yassin said RM600 million of the RM1.2 billion will be contributed by the government.
This will be matched with RM600 million from domestic and international investors.
The fund will be used to foster innovation and develop domestic venture capital, Muhyidin said in his live presentation of Penjana today.
He said some international investors are also keen to join the initiative.
They include SK Group, Hanwha Asset Management, KB Investment Co Ltd, Provident Growth, 500 Startups and The Hive.
Muhyiddin also said the government will allocate RM100 million to set up the National Technology and Innovation Sandbox to further complement the digitalisation effort.
The initiative will be spearheaded by the Science, Technology and Innovation Ministry, by way of relaxing some regulations to test new technologies.
This includes testing the delivery of online purchases through drones and usage of self-driving vehicles.
To further promote digitalisation in the government service delivery system towards the Industrial Revolution 4.0, the government will also provide more online or e-commerce services.