The digital economy continues to show strong momentum in 2022 with RM42 billion and RM4.76 billion worth of new foreign direct digital investments and domestic direct digital investments approved respectively.
With the proliferation of broadband internet to most primary and secondary cities, and with 88% of the population having access to the internet, it is timely to look beyond a physically-confined zone.
These were among the highlights from the 2021 Malaysia Digital Industry Research (MDIR) — a half-yearly survey conducted by MDEC and involves all Malaysia Digital companies. (formerly known as MSC Status companies).
The Ministry of Communications and Digital, in collaboration with Malaysia Digital Economy Corporation (MDEC) today announced the launch of Horizon – Digital Economy Publication 2022.
With the tagline “A perspective of Malaysia’s Digital Economy”, Horizon is a comprehensive and strategic publication dedicated to showcasing the vibrant growth trend in Malaysia’s digital economy. It offers invaluable insights and information on the country’s digital landscape, serving as the go-to reference for global and local stakeholders seeking reliable data and informed perspectives.
The publication encompasses three key pillars: business, investors, and society.
Additionally, it delves into topics such as Digital Economy At A Glance and Look Ahead Beyond 2023, providing in-depth analysis, incisive commentary, and data-driven insights that unravel the complexities and trends of the digital economy.
Meanwhile, an engaging industry dialogue featuring Chief Executive Officer of MDEC, Ts. Mahadhir Aziz, Senior Economist of the World Bank Group, Smita Kuriakose and CEO and Founder of Carsome, Eric Cheng titled “Malaysia on the HORIZON of a Digital Future” also took place at the event. Another highlight of the event was the celebration of Malaysia Digital first year anniversary.
Present at the launching ceremony were Minister of Communications and Digital Fahmi Fadzil and Chairman of MDEC Tuan Syed Ibrahim Syed Noh.
Among the points raised by the publication were over the past five years, total investments by MD companies grew at a compound annual growth rate (CAGR) of 8%. In 2021, the growth more than doubled at 17% to approximately RM46 billion. This is a strong sign of confidence from companies wanting to invest in what Malaysia has to offer post Covid-19.
52% of the investments were made by Global Business Services (GBS) companies, although the GBS sector only makes up 21% of the survey population. This underpins Malaysia’s attractiveness as a preferred destination for GBS, as well as the evolution of GBS to invest in new emerging digital technologies such as robotic process automation (RPA), artificial intelligence (AI) and data science.
Sales of MD companies grew 10% to RM64.6 billion. This is very positive considering the CAGR for overall total sales in the past five years was only 6%. The majority (87%) of the total sales contribution came from digital technology and GBS companies.
Local sales grew by 14% in 2021 compared to the average growth rate of only 4.6% over the past three years. The increase may be attributed to the accelerated adoption of digital technologies in Malaysia as a result of Covid-19.
Comparatively, export sales only grew 4.7% in 2021, representing a minor drop from the average growth rate of 5.9% over the past three years. This could be due to the delay in borders re-opening post pandemic.
A total of 14,656 jobs were created, out of which 87% were filled by Malaysians. This is an increase of 10% from 2020 to 2021, which could be a result of the Government’s efforts to spur local hiring.
The digital economy continues to show strong momentum in 2022 with RM42 billion and RM4.76 billion worth of new foreign direct digital investments and domestic direct digital investments approved respectively.
With the proliferation of broadband internet to most primary and secondary cities, and with 88% of the population having access to the internet, it is timely to look beyond a physically-confined zone.
To access the Horizon – Digital Economy Publication 2022, visit:www.mdec.my/publications/horizon.
