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Digital Free Trade Zone
Malaysia launched its Digital Free Trade Zone in collaboration with the Alibaba Group to usher in a new development for the eCommerce space. For the Alibaba Group, this marks the first time that the company has set up a e-hub located outside of China.
Setting up an e-hub in Malaysia is in line with the Alibaba Group’s plans to build an Electronic World Trade Platform. This platform would work as a more inclusive and innovative global trading platform for SMEs and consumers. According to Alibaba Founder Jack Ma, Malaysia was the perfect fit to meet the needs of this vision.
Malaysia’s economy has a lot of growth potential, being business friendly and efficient which are among the reasons why it makes an ideal Digital Free Trade Zone. Being a Digital Free Trade Zone is proof that Malaysia is unwaveringly committed to ensuring that its SMEs continue to grow through the eCommerce space.
With the launch of the Digital Free Trade Zone, this means Malaysia will now be serving as a regional e-fulfilment centre as well as serve as a regional hub for SMEs and marketplaces.
The Digital Free Trade zone will be implemented in stages and consist of both physical and virtual zones. The physical zones comprise of two hubs, which are the e-fulfilment hub and the satellite services hub. The virtual zones consist of the e-services platforms.
How the Digital Free Trade Zone will benefit Malaysia
The Digital Free Trade Zone was created with the idea of helping Malaysian businesses benefit even more from globalisation, despite the challenges that the digital economy brings with it.
The Digital Free Trade Zone will be a one-stop digital hub of logistics, payment gateway, clearance and data standardisation, providing SMEs with the necessary tools and infrastructure they need for global trade. This platform has the potential to double the growth rate of the SMEs in Malaysia in the export sector by the year 2025.
The Digital Free Trade Zone platform was designed with young entrepreneurs in and SMEs specifically in mind to help them succeed in their business pursuits while helping to ensure that the country’s GDP continues to consistently develop. Digital economy and the ecommerce space is the key to helping businesses succeed online.
The Digital Free Trade Zone and the digital economy space holds plenty of opportunities and challenges at the same time. But one thing is for sure, and that is the ecommerce space is the trend of the future, and businesses should equip themselves to get on board for face being left behind.