Malaysia Digitalisation Incentives Worth Billions Up For Grabs
Technology has been evolving since humans begin to use tools to improve processes. Technology development changes our lives more rapidly now than ever before. We are dependent on technology from the moment we wake up. The way forward is going digital or risk being left behind. The digitisation incentives from the Malaysian government are up for grabs for Malaysian companies to join the Fourth Industrial Revolution.
Connecting to Digital
Through the national need for better broadband quality and coverage, lowered broadband prices as well as greater nation-wide access to the Internet, the National Fiberisation and Connectivity Plan (NFCP) 2019-2023 was borne. The government will invest RM21.6 billion through Public-Private Partnerships over the next five years. Through an overarching objective to provide an established, pervasive, high quality and affordable digital connectivity for citizenry well-being and national progress, this will be achieved through four strategies:
- Maintaining the funding for the initiative in a careful and sustainable way, utilizing regulatory policies and instruments where needed.
- Optimise the development and deployment of digital infrastructure across the nation, and removal of obstructions to the development.
- Strengthen connectivity in high impact socio-economic sectors such as education, agriculture and healthcare, small and medium-sized enterprises.
- Use domestic networks to comprehensively connect with regional and international networks.
With the NFCP in place, Malaysia aims to enable all Malaysians, to participate in economic activities. With high-quality ultrafast broadband, new businesses will flourish and employment opportunities will be made available in the rural areas. Indirectly, this also helps to reduce rural-urban migration into already crowded urban cities. Tapping into digitalisation has its own set of benefits. Among them is the positive impact on the environment. With fewer people commuting to places and reduced usage of papers, our carbon footprint will be reduced. Online operations will also replace physical ones as anyone with a mobile phone can be connected to the rest of the world fast and conveniently.
National Policy on Industry 4.0
On a broader scope, the NFCP operates alongside the National Policy On Industry 4.0 (Industry4WRD). The Industry4WRD provides a concerted and extensive transformation plan for the manufacturing sector and its related services. The three planned drivers are represented by A.C.T. which stands for:
- ATTRACT stakeholders to Industry 4.0 technologies & processes, and further boost Malaysia’s appeal as a preferred manufacturing location.
- CREATE a conducive ecosystem for Industry 4.0 to be adopted and align current and upcoming development plans.
- TRANSFORM Malaysia’s industry capabilities comprehensively and expeditiously.
Through these drivers, three targeted outcomes aimed to be achieved – greater contribution from the manufacturing sector, a shift towards the manufacture of more high-value added products and sustained inflow of foreign direct investments. A public-private partnership will be the best way to achieve the optimal outcome for the economy, while having an explicit national policy to ensure the alignment of development of the technology ecosystem with national economic objectives.
Conclusion on Malaysia Digitalisation Incentives
Malaysia recognises the need to get onto the digital bandwagon. As such, the Malaysian government will invest billions worth of incentives to increase broadband penetration to every household in the country.