Unlocking its Full Potential to Drive Malaysia’s Development

Unlocking its Full Potential to Drive Malaysia’s Development

Unlocking its Full Potential to Drive Malaysia’s Development

The FINANCIAL -- KUALA LUMPUR, September 12, 2018 – In its journey towards achieving economic progress, Malaysia could take further steps to unlock the full potential of its digital economy says a new World Bank report launched.

The report, ‘Malaysia’s Digital Economy: A New Driver of Development,’ summarizes the work of a program managed by the World Bank Group Global Knowledge and Research Hub in Malaysia in collaboration with the Malaysian Ministry of Finance and other partners. The report assesses available policy options to boost the impact of the digital economy on economic growth, job creation, innovation and public revenues.

According to the report, Malaysia's past performance offers substantial optimism about the future of its digital economy. Homegrown entrepreneurial talent has led to the establishment of some of Southeast Asia’s most recognizable digital startups. In 2016, Malaysia also became the first country in the world to establish a Digital Free Trade Zone, a special trade zone providing a state-of-the-art platform for small and medium-sized enterprises to promote e-commerce.

The report highlights four important policy goals for unlocking the full potential of the digital economy in Malaysia. These goals are: creating a more dynamic digital ecosystem with increased competition; achieving universal, fast, and inexpensive internet connectivity; improving human capital through better curricula and life-long learning opportunities; and  safeguarding future digital tax revenues.

The report also underscores the importance of maximizing the benefits of the digital economy for all Malaysians and for minimizing any adverse effects on equal access to digital services.