Professional Documents
Culture Documents
The Digital Malaysia Progress Report 2013 is the second annual publication on the national
initiative to external parties. Each one was published in the first half of the following year to
ensure all the events, information and data relevant to the year under review can be clarified and
verified before production.
Table of Contents
SECTION 1: FOREWORD
Prime Minister of Malaysia
Minister of Communication &
Multimedia
CEO, Multimedia Development
Corporation (MDeC)
Vice President,
Corporate Strategy Division,
MDeC
06
SECTION 2:
EXECUTIVE SUMMARY
08
10
12
SECTION 3: OVERVIEW
SECTION 4: REVIEW
Chapter 1:
National Initiative for Digital
Transformation 30
Chapter 2:
Roadmap for the Way Forward
42
Chapter 3:
Key Highlights
Chapter 4:
Nurturing an Enabling Environment
Chapter 5:
Generating Growth in Sub-sectors
Chapter 6:
Creating Opportunities and
Channelling Benefits to Communities
16
112
SECTION 6:
APPENDICES
46
54
65
75
120
FOREWORD
By The Prime Minister of Malaysia
Malaysia is another step closer to 2020, the year when we envisage our
country as a fully-developed nation with a robust and sustainable economy
and a knowledgeable and skillful society. As we take stock of the progress
made on this journey, we can reflect that 2013 was a momentous year with
many milestones achieved and challenges faced.
FOREWORD
By The Minister of Communication &
Multimedia
The onset of digital technology over the past 20 years has changed the global
landscape in which nations and economies compete against one another. One
could argue that the field is levelling out like never before as traditional factors
like capital, labour and land have given way to knowledge, innovation and
entrepreneurship.
FOREWORD
By The CEO, Multimedia Development
Corporation
In the past year, Digital Malaysia has matured from a conceptual framework to
become an organic entity that is already bearing fruit for its stakeholders and
many of its targeted beneficiaries. At the same time, Digital Malaysia continues to
evolve as a comprehensive blueprint to accelerate Malaysias digital transformation
encompassing all aspects of the nation, its economy and its people.
10
11
FOREWORD
By The Vice President, Corporate Strategy
Division, MDeC
12
13
14
SECTION 02
EXECUTIVE SUMMARY
15
# Executive Summary
When Malaysia launched its National Digital Economy Initiative, Digital Malaysia,
in 2012, it joined the ranks of leading digital nations that had formulated and
established comprehensive digital economy frameworks or strategies.
Malaysia, like its more developed counterparts in Asia,
Europe, North America and Australasia, recognised the
primacy of developing an innovative digital economy
for economic sustainability and societal integration.
Indeed, a digital economy with its transformative
capabilities and capacities is considered a critical
strategy to capitalise on the wealth of global
opportunities now emerging from the pervasive use of
digital technologies in every aspect of work and life.
16
Digital Canada
Initiated in 2010
eNorway 3.0
Initiated in 2009
Digital Denmark
Initiated in 2000
U-Korea
Previously known as
Cyber Korea 21
Initiated in 1999
Digital Britain
Initiated in 2008
Digital Europe
Initiated in 2009
Digital Malaysia
Initiated in 2012
Digital Australia
Initiated in 2008
New Zealands Digital Strategy
Initiated in 2008
17
TOP
INCREASED
GNI
20
ENHANCED
PRODUCTIVITY
TOP
IMPROVED
STANDARD
OF LIVING
10
Source:
1. ICT Satellite Account 2012
2. Global IT Rankings 2013
3. International Institute of Management
Development 2013
2013 was truly a year of reckoning for Digital Malaysia following the establishment of a strategic roadmap to guide
its development and implementation going forward. We call it the DM354 Strategic Roadmap.
18
VIR O N M E N T F O
N
E
G
CU
LIN
SA
B
A
RE
EN
AS
DIGITAL ECONOMY
SUB-SECTORS
DE*
Growth of
Sub-sectors create
opportunities and
channel benefits to
Communities
ICT TRADE
ICT
MANUFACTURING
eCOMMERCE
ICT SERVICES
Create suitable
conditions for
ICT Sub-sectors
to grow
B40*
YOUTH
ADOPTION
ACCESS
SME
DIGITAL MALAYSIA
COMMUNITIES
USE
19
In essence, the three Enabling Environment Focus Areas serve to create a suitable environment for the digital
economy to flourish. This will form the building blocks for the ICT sub-sectors to grow and thrive. Focused
intervention on these sub-sectors would then create opportunities and channel the benefits to the selected
communities.
The formulation of the DM354 Strategic Roadmap was based on a methodical process that harnessed data-driven
insights from the various components used to calculate the Digital Economy Satellite Account (DESA), as well as
the myriad indicators tapped to produce the WEF Global IT Report (GITR) rankings and IMD World Competitiveness
Yearbook. These components and indicators were filtered according to their impact and relevance to ICT.
DM/MSC MALAYSIA
DESA Steering
Committee
Implementation
Council
Economic
Council
DM Steering
Committee
NKEA
Steering
Committees
MDeC
PEMANDU
Submits report to
Secretariat
ICT DATA
Secretariat
As part of efforts towards greater transparency, we adhere to a set of Agreed Upon-Procedures (AUPs) developed
by PricewaterhouseCoopers Malaysia (PwC) to ensure accuracy of reporting. This exercise serves to establish clear
accounting and best practices as we move forward.
Additionally, the national initiative is shared with the MSC Malaysia International Advisory Panel (IAP) to invite and
draw out further ideas and advice as well as to seek the collaboration of the IAPs global technologists.
20
ACCESS
ADOPTION
USE
INDICATORS
INDICATORS
INDICATORS
Intervention would be carried out in each of the focus areas on selected digital economy-related indicators culled
from the WEF Global IT Report (GITR) rankings and IMD World Competitiveness Yearbook. The aim, essentially, is to
move up Malaysias aggregated maturity levels in terms of the respective indicators relevant to these Focus Areas,
whose definitions are listed below:
Access
Key Communities have access to affordable, reliable and high capacity digital infrastructure, including
broadband, applications, content and devices.
Adoption
Key communities overcome various barriers to adoption of digital technology, such as skills, cost and
knowledge thresholds.
Use
More members of key communities use digital technology to improve productivity and enhance their
quality of life.
21
5 Sub-Sectors
One of the key thrusts of the DM354 Strategic Roadmap is to increase revenue by generating new growth areas
within the five selected Digital Economy Sub-sectors. More focus will be placed on ICT Services and eCommerce as
they can offer higher and faster yield.
GDP CONTRIBUTION
GDP CONTRIBUTION
GDP CONTRIBUTION
GDP CONTRIBUTION
ICT
SERVICES
eCOMMERCE
ICT
MANUFACTURING
ICT
TRADE
CONTENT
& MEDIA
16.7%
RM
142.4B
RM
36.9B
12.0%
14.8%
RM
27.2B
5.9%
RM
14.2B
RM
57.3B
RM
5.5% 49.7B
-0.6%
RM
17.7B
4.8%
4.8%
RM
16.1B
8.0%
16.2%
RM
6.3B
RM
RM
RM
18.7B 41.3B 105.5B
RM
RM
RM
12.7B 19.0B 30.1B
RM
RM
RM
33.8B 32.3B 32.0B
RM
8.0B
RM
RM
11.1B 16.1B
RM
2.5B
RM
4.3B
RM
7.9B
2005
2005
2005
2005
2012
2005
2012
2020
2012
2020
2012
2020
2012
2020
2020
The respective bar charts are not proportionate across the 5 sub sectors
Source: Base data referenced from ICTSA 2005 to 2012 by DoSM. Further analysis and breakdown by MDeC & IDC
GDP CONTRIBUTION
ICT
SERVICES
16.7%
12.0%
RM
142.4B
RM
36.9B
RM
RM
RM
18.7B 41.3B 105.5B
22
Focus on eCommerce
The eCommerce spending market size is projected
to witness substantial growth in the years between
2011 and 2016. Worldwide, this figure is anticipated
to move from RM31.5 trillion in 2011 to RM64.5 trillion
in 2016. For Malaysia, the figures are expected to
grow from RM62.1 billion to RM263 billion. Malaysias
eCommerce industry contributed RM19.0 billion to
the GDP in 2012 and this is anticipated to increase by
14.8% to reach RM57.3 billion in 2020. eCommerce has
been targeted as the new growth engine for private
enterprises. To capture the required portion of this
ever-expanding pie, Malaysia must put in place new
incentives for growth. To achieve this, the plan is to:
Balance imports with more eCommerce exports by
encouraging players (especially SMEs) to convert
from traditional to digital business models for cost
and productivity efficiencies
Increase the adoption of eCommerce among Local
Large Corporations (LLCs)
Promote the creation of digital goods for exports
Promote the purchase of Malaysian brands through
online portals
GDP CONTRIBUTION
eCOMMERCE
14.8%
RM
57.3B
RM
27.2B
5.9%
RM
RM
RM
12.7B 19.0B 30.1B
2005
2012
2020
4 Communities
One of the key goals of Digital Malaysia is to benefit all Malaysians by creating opportunities as well as channelling
the benefits of a growing digital economy to the people. For now, projects rolled out under the national initiative
target specific groups of people or Communities, specifically those that either have the highest potential to
capitalise on digital opportunities, or whose vulnerable positions can be mitigated through digital mediation.
At this initial stage, Digital Malaysia is focused on four Communities - Digital Entrepreneurs, the B40 or bottom 40%
of the income group, the Digital-savvy Youth, and the Small and Medium-sized Enterprises (SMEs).
COMMUNITIES
OBJECTIVES OF
INTERVENTION
PROJECTS*
DIGITAL
ENTREPRENEUR
B40
Microsourcing to
Generate Income
for the B40
Facilitating Societal
Upliftment
YOUTH
Create knowledge
workers of the future
SME
Asian
eFulfillment
Hub
Enabling ePayment
Services for SMEs and
Micro Enterprises
Shared Cloud
Enterprise
Services
* The projects listed in the table are new DM projects over and above many other national ICT initiatives being implemented under
the 10th Malaysia Plan (RMK-10), Economic Transformation Programme (ETP) and Government Transformation Programme (GTP).
23
A total of 8 projects were launched in 2012 to catalyse change and drive progress within the four selected
Communities. These projects are beginning to bear fruit, with achievements exceeding the targets set for 2013.
This is encouraging progress for the on-going implementation of Digital Malaysia.
Collectively, the projects generated a Gross National Income (GNI) of RM402.9 million against the set target of
RM334.7 million while creating more than 4,000 new jobs compared with the target of 3,674. The projects also
attracted private investment worth RM340 million.
ACHIEVEMENTS HAVE
EXCEEDED TARGETS FOR 2013
108%
108%
90%
GNI
JOBS
CREATED
PRIVATE**
INVESTMENT
TARGET
TARGET
3,674
TARGET
RM345.11M
ACHIEVED
ACHIEVED
ACHIEVED
RM334.68M
RM360M
4,010
RM309.09M
Moving Forward
The task of developing a vibrant and innovative digital economy and society is a challenging one. It is a complex
undertaking, given that the digital world is a constantly evolving entity and that a host of different parties are
involved and engaged. On this score, moving forward will require concerted efforts from all concerned to bring
about this generational change.
24
EXISTING
INITIATIVES
BENEFITTING
STAKEHOLDERS:
GOVERNMENT/
BUSINESSES/
CITIZENS
STRATEGIC
THRUSTS
Supply to Demand:
Consumption to
production:
Low knowledge-add to
high knowledge-add:
GAME CHANGERS
& BEHAVIOURAL
CHANGERS
enhance competitiveness by
focusing on knowledge-added
activities
DM
INITIATIVES
DM
PROJECTS
BLOCK 1, 2 & 3
PROJECTS
*
**
Block 2 Initiatives*
Block 1 Initiatives**
Digital Access, Adoption & Use
Digital Economy Sub-Sectors
PRIVATE SECTOR
DIGITAL PRODUCTS
& SERVICES
CURRENT, ANNOUNCED,
EXISTING & NEW PROJECTS
BY MINISTRIES, AGENCIES &
PRIVATE SECTOR
25
Digital Malaysia is a long-term national initiative that will be rolled out in various phases. Although it will continue
to grow and develop beyond 2020, the plan is to focus on three main clusters of activities from now until the end
of the decade.
The promise of Digital Malaysia to increase wealth, enhance productivity and raise the standard of living among
Malaysians remains bright. If everything clicks in place and all the pieces come together, the national digital
economy initiative will produce a developed economy and society that is innovative, enterprising and ultimately,
global.
DIGITAL
ECONOMY
Use of ICT in
Vertical
Sectors
ICT
Sector
PHASE 1
PHASE 2
PHASE 3
2012-2020
2021-2030
2031-2040
26
27
28
SECTION 03
OVERVIEW
29
# CHAPTER 1
National Initiative for Digital
Transformation
US$5.4T
Projected eCommerce
revenue by 20202
US$44.2T
Source:
1. WITSA 2010
2. ITIF 2010
30
Increasing Wealth
The ICT industrys contribution to the national economy has grown steadily over the past two decades, spurred
on by the development of the Multimedia Super Corridor (MSC Malaysia) and rapid assimilation of digital
technologies into everything we do at work, home and play. Digital Malaysia is poised to raise the contribution
of the digital economy to national GDP, in the process increasing wealth among Malaysians.
31
Enhancing Productivity
The wide and increasing use of digital technologies has long been determined as a key factor in generating
greater efficiency and higher productivity in every economic sector. However, SMEs have been slow to leverage
on ICT in their operations. Digital Malaysia seeks to extend the Gross Value Added (GVA) per employee by
accelerating technology adoption among SMEs.
HOW TO
CALCULATE
GROSS
VALUE
ADDED
(GVA)
ICT GVA
Source: DOSM
PROFIT
REVENUE
PROFIT
Total Employees
= PRODUCTIVITY
Source: OECD (Organisation for Economic Cooperation and Development)
32
Malaysians will attain a better quality of life when we can gain easier access to career or business opportunities
while having the ways and means to capitalise on our prospects through digital technologies. Digital Malaysia
hopes to raise the potential of the rakyat to perform higher value jobs and gain new sources of income.
CHANGING
MINDSETS &
SKILLSETS
SUPPLY
DEMAND
HIGH
KNOWLEDGE
CONSUMPTION
PRODUCTION
LOW
KNOWLEDGE
Alongside these desired outcomes, the digital transformation is also intended to reorient the prevailing economic
and societal forces from supply-driven to demand-driven, consumption to production, and low knowledge to
high knowledge activities.
The reorientation through these three game-changing strategic thrusts is to:
(supply to demand): reallocate resources to more demand-focused programmes and activities;
(consumption to production): change the way people behave to produce as they consume;
(low knowledge-add to high knowledge-add): enhance competitiveness by focusing on knowledge-added
activities.
33
TOP
INCREASED
GNI
20
ENHANCED
PRODUCTIVITY
TOP
IMPROVED
STANDARD
OF LIVING
10
Source:
1. ICT Satellite Account 2012
2. Global IT Rankings 2013
3. International Institute of Management
Development 2013
34
In setting the respective targets, we benchmarked against other nations that could either offer a credible and
realistic yardstick, or an aspirational one. Of all these countries, South Korea was by far the most appropriate
model since the East Asian economy was on a par with Malaysia during the 1970s when both countries began
ramping up industrialisation. South Koreas digital economy contributed 17% to its GDP while it was ranked 11th
and 22nd respectively by the WEF and IMD World Competitiveness Yearbook in 2013.
It is interesting to note that several other developed nations have achieved a high Digital Economy contribution
to GDP. They include Sweden with 18.4% (2012), and the UK and Taiwan with 15.8% (2012). Meanwhile, the
corresponding figures for the US and Germany are 11.1% (2012) and 8.5% (2011) respectively.
35
DESA
$
$$
SHARE of
ICT to GDP
DOMESTIC OUTPUT of
ICT PRODUCTS by INDUSTRY
INCOME COMPONENTS
by ICT INDUSTRY
EMPLOYMENT in
ICT INDUSTRY
36
RM160.2B IMPORTS
RM196.1B EXPORTS
NETEXPORTS
RM35.9B
DOMESTICOUTPUT
RM327.3B
GVA
RM108.9B
(33% PROFIT)
Other industries
ICT employees
ICT EMPLOYMENT
762,400
Source for all graphics above: DOSM ICTSA 2012, MDeC analysis
67.4%
37
4,722
426
9%
91
Total ICT-related
projects RMK-10
(RP1&2): 271
ETP & GTP: 155
are ICT
projects
52
43
32
18
MoE
PMD
MoSTI
MoF
18
NRE
13
MICC
10
MoHA
13
6
MHLG
Development Expenditure
271 ICT Projects
38
12
4
MITI
Others
ETP
GTP
SRI
DM Steering Committee
A steering committee chaired by the Minister of Communication & Multimedia (KKMM) was formed following the
launch of Digital Malaysia with the mandate to steer and drive the strategic implementation of the initiative.
Committee members have the added responsibility to ensure the integration of DM into other national plans
and programmes while avoiding any overlap of projects. The Steering Committee held its first meeting on Feb
2, 2012. The Committee comprises members from:
KKMM
MInistry of Finance (MoF)
Economic Planning Unit (EPU)
Malaysian Communications & Multimedia Commission (MCMC)
PEMANDU
Department of Statistics Malaysia (DOSM)
MIMOS
MAMPU
DM/MSC MALAYSIA
DESA Steering
Committee
Implementation
Council
Economic
Council
DM Steering
Committee
NKEA
Steering
Committees
MDeC
PEMANDU
Submits report to
Secretariat
ICT DATA
Secretariat
39
Another steering committee to oversee the ICTSA was established earlier and now reports to the DM Steering
Committee. There are four workgroups in this committee, tasked with looking into Key Definitions, Process &
Methodology and Indicators from the supply as well as demand sides using 2010 as the baseline year. It held
its first meeting on December 1, 2011. Committee members include representatives from the ministries and
agencies listed above.
40
41
# CHAPTER 2
Roadmap for the Way Forward
Driving the nation towards digital transformation is a multi-layered and multifaceted challenge. It requires a holistic approach to build a comprehensive ecosystem that in the long run will create a conducive, yet resilient environment
and generate the necessary momentum for all stakehholders to act in unison
towards the aspirational goals set out under Digital Malaysia.
ACCESS
ADOPTION
USE
ICT SERVICES
eCOMMERCE
ICT MANUFACTURING
ICT TRADE
CONTENT & MEDIA
DIGITAL ENTREPRENEUR
B40
DIGITAL-SAVVY YOUTH
SME
Sub-Sectors
Communities
ICT Enabling
Environment
Focus Areas
For this reason, it is imperative to put in place a Roadmap that takes into consideration all the existing gaps and
future potential in the task of developing a digital economy. Intervention in certain areas is critical to stimulate
and steer progress along the right path.
The blueprint to achieve the challenging goals of Digital Malaysia by 2020 is a Roadmap termed the DM354 Strategic
Roadmap. It prescribes intervention for:
3 ICT Enabling Environment Focus Areas
5 Sub-sectors
4 Communities
By following the DM354 Strategic Roadmap, the nation is expected to achieve the Aspirational Goals of Digital
Malaysia by 2020, in the process establishing a vibrant and dynamic digital economy well placed to compete with
the developed world and well set to attain exponential growth in the years ahead.
42
In essence,the DM354 Strategic Roadmap reflects the following components of the aspirational goals. The three
Enabling Environment Focus Areas serve to create a suitable environment for the digital economy to flourish. These
are specific indicators that increases the nations competitiveness ranking with respect to access, adoption and use
of digital solutions. Improvement on these indicators would move the digital economy closer to its target rankings
in the IMD World Competitiveness Yearbook and GITR.
The Focus Areas would create an environment in which the economic, industrial and social components of the
nations digital economy can be grown. This will form the building blocks for the ICT sub-sectors to flourish. Their
respective growth rates have been extrapolated and projected in order to maintain the specific growth trajectory
needed to achieve the 17% GDP contribution target of 2020.
Focused intervention on these subsectors would then channel the benefits and create opportunities for the selected
communities. Currently, four initial communities have been selected as the beneficiaries of a healthy and vibrant
digital economy. Their selection was based on one or both of the following factors:
That they had the most potential for growth
That they were the most vulnerable to changes brought about by the digital age
2012
12%
2020
17%
From as-is to to-be...
43
2011
1
28th
144
2020
1
TOP
20
144
From as-is to to-be...
Out of 144 economies surveyed.
2011
1
2020
1
16th
59
TOP
10
59
From as-is to to-be...
Out of 59 economies surveyed.
Through this process, we outlined three broad and inter-related areas, as mentioned earlier:
ICT Enabling Environment Focus Areas
ICT Sub-sectors
Communities
Intervention would be required in THREE ICT Enabling Environment Focus Areas of:
Access
Adoption
Use
Likewise, attention has to be given to stimulating growth in FIVE Digital Economy Sub-sectors of:
ICT Services
eCommerce
ICT Manufacturing
ICT Trade
Content & Media
At the same time, it was also understood that priority should be given to those socio-economic segments or
communities that could benefit the most from digital intervention. Out of the communities categorised under
Government, Business and Citizens, FOUR were picked for initial intervention:
Digital Entrepreneurs
The B40 (the 40% of Malaysians who represent the lowest income group with below RM3,050 in monthly
household income)
Digital-savvy Youth
SMEs
44
SECTION 04
REVIEW
45
# CHAPTER 3
Key Highlights
46
January 29
5th DM Steering Committee Meeting
(DMSC) in MDeC, Cyberjaya
Then MOSTI Minister YB Datuk Seri
Panglima Dr Maximus Johnity Ongkili
chaired the meeting to propose
KPIs for 2013 and approve the 2012
Achievement Report, ICT Satellite
Account Report, DM Communications
Plan and Brand Guidelines.
April 25
POKOK platform was launched in
PJ Hilton
POKOK (Pembangunan Oleh Komuniti
Untuk Komuniti or Development by
Communities for Communities) is a
digital platform to match the needs
of the B40 community with solutions
from the private sector and NGOs.
June 24
Talk on Digital Malaysia was jointly
held by MDeC and MyNEF at the
Sime Darby Convention Centre,
Kuala Lumpur
Throughout the year, MDeC also held
talks and presentations for various
companies, business associations
and institutions of higher learning.
47
August 19
Awareness Campaign: TV
commercials for the Digital
Entrepreneur community
August 19
DM Awareness Campaign was
launched
Do More Lah is the campaigns
rally cry. It is an easily-undertstood
colloquial phrase that can rally
Malaysians behind the Digital
Malaysia national initiative.
August 19
Awareness Campaign: Creative
Direction
The campaign features animated
3D characters called Domorelings.
They represent digital touch points
in a playful reminder to Malaysians
that they already have the tools
and knowledge to make digital work
harder for them.
48
August 19
Awareness Campaign: TV
commercials for the B40
community
August 19
Awareness Campaign: TV
commercials for the Digitally-savvy
Youth community
August 19
Awareness Campaign: TV
commercials for the SME
community
August 19
Awareness Campaign: Print
Advertisements
August 19
Awareness Campaign: MDeC office
building banner
49
September 4
ETP & DM Business Planning
Workshop at MDeC, Cyberjaya
This workshop was jointly organised
by MDeC and MyNEF.
December 20
DM Proposal Submission System
(DMPSS) is ready to be deployed
DMPSS is the automated system for
submission of DM proposals. The
system covers and tracks the entire
process of ideation until approval.
November 11
6th DM Steering Committee meeting
at Parliament, Kuala Lumpur
Chaired by the Minister of
Communication & Multimedia YB
Datuk Seri Ahmad Shabery Chik,
the meeting endorsed the 2012
KPI Achievements and 2013 KPI
targets. The Minister requested for
benchmarking against developed
economies.
50
July 18
Joint embedded forum with
Intel at Sheraton Imperial, Kuala
Lumpur
This session was intended to create
and develop opportunities for
Malaysian companies to develop
technology based on the Intel
platform.
Digital Entrepreneur
Project: Develop a Trusted Mobile
Digital Wallet System
A National Mobile Proximity
Payment
Industry
Roadmap,
which was jointly developed by
MyClear and Smarttag Solutions,
was completed. The Roadmap was
presented to Bank Negara Malaysia
(BNM) in July. BNM has agreed to
the proposal.
Digital Entrepreneur
Project: Grow the Embedded
Systems Industry
During the year, 2 additional
technology partners were signed up
to grow the ecosystem. Additionally,
8 more projects were approved for
funding to capture market share.
51
B40
Project:
Facilitating
Societal
Upliftment
The POKOK digital platform, aimed
at improving the lives of one million
underprivileged Malaysians by 2020,
was rolled out in two additional States
- Terengganu and Perlis - following
the successful implementation of the
pilot project in Pahang.
Digital-savvy Youth
Project: Develop on-demand,
customised online education
During the year, 7 content
providers came on board to grow
the ecosystem. In addition, more
than 5,200 youths tapped online
education resources via Celex while
another 300 took online courses.
B40
Project: Microsourcing to generate
income for the B40
Krowdin.com
was
brought
online, joining four other similar
platforms launched in 2012 to offer
crowdsourcing opportunities to the
underprivileged.
52
SME
Project: Asian eFulfilment Hub
During the year, 5 new customers
were secured, 25 logistics talents
were certified while more than RM43
million in goods and services were
transacted.
SME
Project:
Enabling
ePayment
Services for SMEs & Micro
Enterprises
For 2013, 8 third party acquirers were
recruited, 18 regional service hubs
were set up, 43,683 merchant outlets
were enabled while RM978 million
in transaction value was successfully
completed via e-payment facilities.
SME
Project: Shared Cloud Enterprise
Services
More than 1,720 small and medioumsized companies adopted an
cloud-based Enterprise Application
Solutions (EAS) in 2013.
53
# CHAPTER 4
Nurturing an Enabling
Environment
For any initiative to work and grow, and better yet to thrive and yield positive
results, the right environment is a crucial component. This has to be the first
step in the implementation of a programme or idea as it serves to set the stage
for all the players and pieces to come together.
The DM354 Strategic Roadmap highlights three focus areas that require strengthening and reinforcing as the
preliminary move to growing Malaysias digital environment; they are (i) Access, (ii) Adoption and (iii) Use. As
outlined earlier in Chapter 2, intervention would be carried out on selected indicators in each of the focus areas
on the basis that these indicators have the potential to generate the highest yield. These indicators were culled
from the WEF Global IT Report (GITR) rankings and IMD World Competitiveness Yearbook (WCY). It is important
to note, however, that these are preliminary indicators and they may be subject to further refinement as well as
additions. For instance, indicators used for benchmarking by the International Telecommunication Union (ITU) may
be added as and when deemed necessary.
Maturity Levels
5
4
3
2
1
Classifications
Top 10 Ranked Economies
Top 1120 Ranked Economies
Top 2130 Ranked Economies
Top 3150 Ranked Economies
Economies Ranked 51 & above
54
The graphic below offers a guide as to how the WEF and WCY ranked economies according to a maturity model.
Their respective classifications were based on:
The countrys ranking reflects the maturity of its development
This assumes that the top country is the most mature and Malaysia needs to achieve the top 10/20 positions in
terms of maturity
In 2013, GITR ranked 144 economies and WCY ranked 59 economies
The maturity levels are based on bands created to establish a stair-step approach to breaking down global indices
ACCESS
ADOPTION
USE
INDICATORS
INDICATORS
INDICATORS
Access
Before any activity to directly encourage and promote growth is initiated, access to ICT components and services
is necessary. This is something which requires close attention given the fact that Malaysias 29 million population
is spread out over both the urban and rural areas.
A significant portion of todays ICT users are centered within the urban area; hence the target would be to deliver
ICT access to the wider portion of the less urban population, while also improving overall services in terms of
quality, accessibility and availability. The assessing parameters within these 7 indicators are measured and defined
within five maturity levels.
In terms of access, the 7 key indicators which have been selected are:
1. Fixed broadband tariff - Malaysia needs to bring broadband tariffs to a more competitive rate compared with
economies which are currently ranked above us. Internet and broadband infrastructure and coverage in rural
areas also fall within this indicator which comes under the responsibility of MCMC. This is a crucial step forward
as wider internet access will increase the base of ICT users.
2. Mobile telephone tariff The tariff of mobile telephone access needs to be brought to a more competitive
level on par with other economies.
3. Households with internet access Emphasis was placed to increase the number of households with internet
access, especially in the rural areas. The task of the MCMC here was twofold the provision of internet access
to such areas as well as the education of the rakyat here.
4. Accessibility of digital content User generated content needs to be made available on multiple platforms for
example via the internet, mobile telephone and satellite services. This would lead to the sharing of information
and applications which more people can benefit from.
5. Internet access in schools The MoE, in collaboration with the MCMC, successfully implemented the 1BestariNet
programme which was designed to ensure all national schools are equipped with internet access. Much learning
is done in the school environment and those students who are exposed to ICT during school will adapt to it much
faster and easier.
55
6.
5.
4.
3.
2.
11
7
Access-related Indicators
Generate Highest Yield
6. Availability of latest technology Malaysia must keep up with the introduction of new ICT technology to
position itself as a hub for Asian demand of ICT services. Under the purview of MITI, MoF, Ministry of Domestic
Trade and SIRIM, perceived barriers to entry must be lowered, if not extinguished altogether to encourage the
penetration of the latest technology and services
7. Laws relating to ICT A review of the laws pertaining to ICT, specifically to remove roadblocks, must be made
to enable the more efficient and wider use of ICT. Applications would encompass cloud services, data privacy
and IP protection.
56
Access:
Potential Stakeholders
MCMC
MoE, MCMC
MCMC
KKMM,MCMC,
MDeC
NITC, KKMM
MDeC, Attorney
Generals Office
57
Adoption
Following closely on the heels of access is the adoption of ICT services. With the availability of efficient ICT
services in terms of connectivity and accessibility, the onus would then also lie on the people themselves to
actually embrace such services and take advantage of what is available.
The stakeholders also have a responsibility to ensure that ICT services are available at attractive rates to encourage
more subscriptions which would lead to higher ICT penetration.
Education and information dissemination also play a role as the people must be aware of what is available, and
what the advantages and benefits are, while new skills and competencies must trickle down to the end-users for
optimum adoption.
The maturity level of ICT adoption takes into account five of the highest yielding indicators, out of a total of 8.
Maturity Level
Maturity Level
Maturity Level
4. Mobile phone subscriptions per 100 population
(GITR=Rank 35)
3. Percentage of households with computer
(GITR=Rank 41)
2. Fixed broadband Internet subscriptions per
100 pop (GITR=Rank 67)
1. Mobile broadband Internet subscriptions per
100 pop (GITR= 6)
Maturity Level
58
Access-related Indicators
1. Mobile broadband internet subscriptions per 100 population The MCMC and MoF have been charged with
providing competitive broadband packages for the individual and enterprises. These would include enhanced
allowances such as tax exemptions and other incentives.
2. Fixed internet subscriptions per 100 population It is vital to promote the use of the internet in rural
communities. This can be done through the implementation of various programmes such as e-learning, social
media and income generation.
3. Mobile phone subscriptions per 100 population This indicator can be improved by providing competitive
rates for mobile services which would prompt more people to adopt such facilities.
Adoption:
No
MCMC, MoF
MCMC
KKMM, MCMC,
MDeC, MoF
MoE, MDeC,
MIMOS, MoHR,
INTAN
59
4. Percentage of households with computers - Higher incentives are needed to encourage households to invest
in computers. These can include better tax rebates or vouchers which have been proven successful in the
1Malaysia Book programme.
5. Information technology skills Access to ICT facilities and services must go hand in hand with new learning
and training wherever necessary. Schools play an important role here and ICT hours can be increased within
school time. ICT skills must also be improved and enhanced among graduates, professionals and those in the
civil service.
Use
Among the more rural population, there is still some hesitancy towards the use of ICT services. This is the same for
those in business who have yet to embrace the benefits and advantages of digital commerce.
This could be due to a lack of awareness, uncertainty and in some cases, insufficient knowledge. Financial
considerations could also be an issue for some quarters.
Maturity Level
Maturity Level
Maturity Level
17
6
60
Access-related Indicators
Generate Highest Yield
Use:
Potential Stakeholders
MCMC, MDeC,
KPWKM, KKLW (Luar
Bandar)
MDeC, MCMC,
CSM
61
For the advancement of Malaysias digital economy, a larger number of the population encompassing all ages and
walks of life must adopt the use of ICT services, both as individuals and businesses.
There are 17 overall indicators to assess the use of ICT and of these, six have been sidelined for further action:
1. E-participation index Malaysia must promote a wider use of digital technology among all strata of the
population. Nevertheless, special attention must be paid to the B40, elderly, OKUs (handicapped), housewives
and the rural population as a whole. These groups contribute a significant portion towards the index.
2. Percentage of individuals using the internet There must be relevant content which is readily available and
accessible to individuals to encourage the positive use of the internet. Digital navigation skills among certain
vulnerable groups, as mentioned above, must be enhanced via community programmes and incentives.
3. Business-to-business internet use The stakeholders need to develop programmes to accelerate the adoption
and use of ICT services and business applications especially among small businesses and SMEs. This would lead
to enhanced business activities such as communications and marketing.
4. Productivity real growth Low growth and productivity sectors can benefit from the adoption and use of
ICT services. These areas need to be identified and suitable programmes and incentives should be created to
catalyse the adoption of ICT which would then lead to better business activities and higher growth rates.
5. Use of virtual social networks Social networks and real-time virtual communication are the buzzwords of
communication today. The dissemination of information via these channels is immediate and can be infinitely
useful in various applications and situations. The people must be made aware of the benefits and also be taught
the safe usage of such media.
6. Business-to-consumer internet use Ecommerce is one of the fastest growing sectors of ICT services.
Interventions are necessary to encourage the transfer of business to the virtual world. Barriers must be removed
for both the benefit of the business owner as well as the consumer. These encompass e-payment security and
transparency. Supporting facilities such as delivery of products from seller to end-user is also a consideration.
Moving forward
To create the environment for the digital economy to flourish, all the ingredients and the stakeholders must
come together to create a complete and holistic environment. The more conditions which are met, the better
the growth and development. The benefits of a growing and expanding digital economy are manifold and the
advantages will be reaped by everyone.
In addition, to increase its competency on the global stage, Malaysias digital environment must be conducive
not only for the citizens but also for the rest of the world. Globalisation is a reality and ICT has penetrated both
businesses and personal communication. So to be on the cutting edge of new developments, and to spur Malaysias
journey towards Vision 2020, the digital environment here is a vital component for the growth of the digital
economy and the ICT competency of the people.
62
63
64
# CHAPTER 5
Generating Growth in
Sub-sectors
One of the key thrusts of the DM354 Strategic Roadmap is to increase revenue
by generating new growth areas within the existing ICT Sub-sectors.
Such economic impact is seen especially in 5 ICT sub-sectors:
ICT Services
eCommerce
ICT Manufacturing
ICT Trade
Content & Media
All these areas not only apply to local businesses but they also represent a
global phenomena as the digital world is not restricted by physical boundaries
or limitations. This being so, the benefits and advantages are tremendous and
are still growing. Economic impact is delivered via the 5 ICT Sub-sectors.
ICT
SUB-SECTORS
1. ICT SERVICES
2. eCOMMERCE
3. ICT MANUFACTURING
4. ICT TRADE
5. CONTENT & MEDIA
In 2005, the digital economy made up 14.9% of Malaysias GDP of RM543 billion.
Supported by a compound annual growth rate of 5.7%, this increased by RM38.3
billion in 2012. However, this represented a downtrend as it only contributed
RM119.2 billion towards the overall RM941.2 billion in GDP. The 2012 figure also
takes into account two additional components of the Digital Economy, namely
eCommerce and Share Services and Outsourcing (SSO).
This drop was likely due to the decline in ICT manufacturing due to the global
recession. On top of this, Malaysias position in the IMD World Competitiveness
Yearbook dropped to 16th in 2010 from 10th the previous year.
12.7%
Year 2012
Source: Base data referenced from ICTSA 2005 to 2012 by DoSM. Further analysis and breakdown by MDeC & IDC
65
This same downtrend in GDP contribution was repeated from 2010 to 2012. In turn, this was likely caused by the
severe floods in Thailand in late 2011 which also caused a global shortage of hard disk drives throughout 2012.
Additionally, the World Bank estimated a loss of US$45.7 billion in economic damages and losses as a result of the
floods.
ICT Manufacturing, specifically, has also been recording a progressive decline in growth from 2005 to 2010 and 2012
respectively. The RM33.8 billion contribution to GDP in 2005 dropped by 0.6% to RM32.8 billion in 2012.
But there was a silver lining to this downtrend as ICT Services recorded higher margins of 46.6% in 2012 as opposed
to the 20.7% from ICT Manufacturing.
ICT Services also saw a leap of 12% in the seven years between 2005 and 2012. The actual figures went from
RM18.7 billion (2005) to RM41.3 billion (2012).
294B
CAGR 5.7%
+RM66.5B
12.7%
of GDP
14.9%
of GDP
2005
543.6B
2012
941.2B
8.2%
Note:
2020 National GDP target
incorporating ETP contribution
17% of GDP
119.2B
80.9B
Required
on top of
historical
growth
rate
185.7B
10.7% of GDP
CAGR 5.7%
+RM38.3B
108.3B*
2020 est.
2020 Goal
National
1.733T*
GDP (RM)
7.9%
It is noted here that eCommerce is not fully factored into DESA as yet and the upside is that the potential growth
is sizeable.
This positive uptrend improved Malaysias position in the IMD Global Competitiveness Ranking by one spot to
number 15 in 2013.
As for the future, the national anticipated goal for the GDP in 2020 is RM1.733 trillion, of which 17% is projected to
come from the digital sector. Assuming the growth adheres to the trend of previous years, at a CAGR of 5.7%, this
would only amount to RM185.7 billion, translated to only 10.7% of the projected GDP. This very significantly falls
short of the projected figure of RM294 billion from the digital sector expected in 2020. As such, there is a need to
contribute to the historical CAGR and push it higher to achieve the target.
This upwards push needs to be driven by all the 5 key sub-sectors of the digital economy, and growth must be seen
to accelerate in each area.
GDP CONTRIBUTION
GDP CONTRIBUTION
GDP CONTRIBUTION
GDP CONTRIBUTION
ICT
SERVICES
eCOMMERCE
ICT
MANUFACTURING
ICT
TRADE
CONTENT
& MEDIA
16.7%
RM
142.4B
RM
36.9B
12.0%
14.8%
RM
57.3B
RM
27.2B
5.9%
RM
14.2B
RM
5.5% 49.7B
-0.6%
RM
17.7B
4.8%
4.8%
RM
16.1B
8.0%
16.2%
RM
6.3B
RM
RM
RM
18.7B 41.3B 105.5B
RM
RM
RM
12.7B 19.0B 30.1B
RM
RM
RM
33.8B 32.3B 32.0B
RM
8.0B
RM
RM
11.1B 16.1B
RM
2.5B
RM
4.3B
RM
7.9B
2005
2005
2005
2005
2012
2005
2012
2020
2012
2020
2012
2020
2012
2020
2020
The respective bar charts are not proportionate across the 5 sub sectors
Source: Base data referenced from ICTSA 2005 to 2012 by DoSM. Further analysis and breakdown by MDeC & IDC
67
However, two out of the five key focus sub-sectors were identified as the higher yielding areas and more attention was
directed to these areas.
FOCUS IS ON 2 SUB-SECTORS
GDP CONTRIBUTION
GDP CONTRIBUTION
ICT
SERVICES
eCOMMERCE
16.7%
RM
142.4B
RM
36.9B
12.0%
14.8%
5.9%
RM
57.3B
RM
27.2B
RM
RM
RM
18.7B 41.3B 105.5B
RM
RM
RM
12.7B 19.0B 30.1B
With its 48.4%, contribution towards the overall digital economy GDP, the ICT Services sub-sector has the highest
margins of the 5 sub-sectors within the Digital Economy.
The sub-sector contributed RM41.3 billion to GDP in 2012, having registered a CAGR of 12% in the years from 2005.
Based on a historical growth path, ICT Services will grow to RM105.5 billion in 2020. To support the ICT industrys
aspirational macro targets, however, the sub-sector has to grow at a CAGR of 16.7% to achieve a GDP contribution
totalling RM142.4 billion by 2020.
For the export market, historical trends charted a 11.1% growth in ICT Services exports between 2005 to 2010, with
the figures moving from RM3.6 billion to RM6.1 billion.
As for manpower, the number of employees in ICT Services is expected to reach 461,265 (representing 42.5% total
employees among ICT Services sub-sectors) in 2020.
68
48.4%
BY 2020
BIG DATA
ANALYTICS
SOCIAL
MEDIA
SOFTWARE
DEVELOPMENT
CLOUD
MOBILITY
GDP CONTRIBUTION
SSO
TELCO
ICT
SERVICES
OTHER IT SERVICES
16.7%
RM
142.4B
RM
36.9B
12.0%
RM
RM
RM
18.7B 41.3B 105.5B
69
96+
Fusionex
XYBASE
Isentric
TES S International
G-Asia Pa
Pulse
To maximise the benefits of this initiative, a comprehensive and holistic approach is needed to grow the Big Data
ecosystem. This can be divided into three focus areas:
1. Proliferate usage of BDA in all sectors
2. Catalyse adoption and usage of BDA in the public sector
3. Build the BDA industry in Malaysia
The government is considering a move to embark on BDA in 2014.
APPLICATIONS
SOCIAL
GOVERNMENT
ECONOMIC
VALUE-ADDED
ELEMENTS
DATA MIX
MINING
ANALYTICS
DATA IN SILOS
PRIVATE SECTOR
PUBLIC SECTOR
DATA SOURCES
ENABLERS
70
SYNTHESIS
PREDICTIVE
SHARED DATA
OPEN DATA
DATA OWNERS
Private Companies
TALENT
SOCIAL
MEDIA
INFO / INFRA
FUNDING
REGULATORY
NATIONAL
STATISTICS
TECHNOLOGY
Focus on eCommerce
eCommerce refers to the process by which an order is placed or accepted via the Internet (B2B and B2C), therefore
representing a commitment for a transfer of funds in exchange for goods or services. Source: IDC Market Research,
2013
Technology has facilitated globalisation and in business, it has enabled a wider cross geographical participation in
trade.
eCommerce envelops not only the established business, big and small, but also includes the individual trader, the
self-employed or simply anyone who uses the internet for income-generating activities of sales and services. Sites
such as ebay and various other similar platforms where individuals can engage in a willing-buyer willing-seller
transaction are also part of the growing eCommerce arena.
World merchandise exports have grown nine-fold since 1980 from US$2.03 trillion to US$18.26 trillion. Meanwhile,
the eCommerce spending market has hit the tipping point in global economies with the CAGR for 2011-2016 15% at
world level and 36% for Asia Pacific excluding Japan.
The eCommerce spending market size is projected to witness substantial growth in the years between 2011 and
2016. Worldwide, this figure is anticipated to move from RM31.5 trillion in 2011 to RM64.5 trillion in 2016. For
Malaysia, the figures are expected to grow from RM62.1 billion to RM263.0 billion.
WORLDWIDE
ASIA / PACIFIC
EXCLUDING JAPAN
64.5
31.5
2011
18.3
3.9
RM TRILLION
RM TRILLION
MALAYSIA
RM TRILLION
RM TRILLION
2016
2011
62.1
RM BILLION
2016
2011
263
RM BILLION
2016
71
At home, Malaysias eCommerce contributed RM19.0 billion to the GDP in 2012 and this is anticipated to increase
to RM57.3 billion in 2020, in tandem with the growth in surrounding countries. At least 48% of the RM103.5 billion
Malaysian purchases are from other countries.
Adhering to past years CAGR of 5.9% will only see the revenue from eCommerce in 2020 reaching RM30.1 billion,
falling short of the anticipated RM57.3 billion by some RM27.2 billion.
The projected target for the 2020 GDP contribution is indeed high and there is a large gap to fill if eCommerce is
to take its role as one of the two key sub-sectors of significant GDP contribution.
However, we face an uphill climb here as only 28% of Malaysian SMEs have adopted eCommerce into their business
activities.
The potential is nevertheless large with the anticipated worldwide eCommerce spending figures of RM64.5 trillion
in 2016. In the Asia Pacific itself, digital goods transactions are expected to surpass RM150 billion in 2015.
eCommerce has been targeted as the new growth engine for private enterprises. To capture the required portion
of this ever expanding pie, Malaysia must put new incentives for growth in place.
72
GDP CONTRIBUTION
eCOMMERCE
14.8%
RM
57.3B
RM
27.2B
5.9%
RM
RM
RM
12.7B 19.0B 30.1B
2005
2012
2020
INCREASE
ADOPTION
OF
eCOMMERCE
AMONG
SMEs
INCREASE
LLCs
EXPORT
REVENUE
VIA
eCOMMERCE
CREATE
DIGITAL
AND
VIRTUAL
GOODS
GDP CONTRIBUTION
ICT
MANUFACTURING
RM
5.5% 49.7B
RM
17.7B
-0.6%
RECOMMENDATIONS
RM
RM
RM
33.8B 32.3B 32.0B
2005
2012
2020
73
RECOMMENDATIONS
RECOMMENDATIONS
GDP CONTRIBUTION
ICT
TRADE
4.8%
4.8%
RM
16.1B
RM
8.0B
RM
RM
11.1B 16.1B
2005
2012
2020
GDP CONTRIBUTION
CONTENT
& MEDIA
RM
14.2B
8.0%
16.2%
RM
6.3B
RM
2.5B
RM
4.3B
RM
7.9B
2005
2012
2020
Moving Forward
We will continue to develop the necessary strategies to achieve all our targets while at the same time
intensifying efforts to get buyin from various stakeholders for syndication and collaboration.
74
# CHAPTER 6
Creating Opportunities and
Channelling Benefits to Communities
OBJECTIVES OF INTERVENTION
Tap demand for digital products and services
B40
YOUTH
SME
75
COMMUNITIES
76
PROJECTS
DIGITAL
ENTREPRENEUR
Develop a trusted
Mobile Digital Wallet
System
B40
Microsourcing to generate
Income for the B40
Facilitating Societal
Upliftment
YOUTH
SME
Asian
eFulfillment
Hub
Enabling ePayment
Services for SMEs and
Micro Enterprises
Shared Cloud
Enterprise
Services
Includes other
projects funded
by the
Government or
private sector
such as:
These projects are beginning to bear fruit, with achievements exceeding the targets set for 2013. This is encouraging
progress for the on-going implementation of Digital Malaysia.
In terms of hard numbers, the 8 projects collectively generated a Gross National Income (GNI) of RM360 million
against the set target of RM334.7 million while creating more than 4,000 new jobs compared with the target of
3,674. Although this was not a key performance indicator (KPI) set by the DM Steering Committee, the projects
attracted private investment worth RM309 million, which was marginally lower than the target of RM345.1 million.
The respective performance of the various projects and their respective Communities are detailed in this chapter.
ACHIEVEMENTS HAVE
EXCEEDED TARGETS FOR 2013
108%
108%
90%
GNI
JOBS
CREATED
PRIVATE**
INVESTMENT
TARGET
TARGET
ACHIEVED
ACHIEVED
RM334.68M
RM360M
3,674
4,010
TARGET
RM345.11M
ACHIEVED
RM309.09M
77
294B
CAGR 5.7%
+RM66.5B
12.7%
of GDP
14.9%
of GDP
80.9B
2005
543.6B
2012
941.2B
8.2%
Note:
2020 National GDP target
incorporating ETP contribution
108.3B*
Required
on top of
historical
growth
rate
185.7B
17% of GDP
119.2B
10.7% of GDP
CAGR 5.7%
+RM38.3B
2020 est.
2020 Goal
National
1.733T*
GDP (RM)
7.9%
78
Malaysias Digital Economy is reported to contribute 10.5% to the national GDP with RM80.7 billion from a total domestic
ICT industry output of RM346.5 billion in 2010 (Source: ICTSA 2012), while in 2012, MSC Malaysia contributed 2.3% of the
national GDP share at RM27 billion, showing an obviously strong and growing demand for digital products and services.
This presents a huge opportunity for digital entrepreneurs both in Malaysia and across the globe.
Of late, there has been a marked increase in locals trading, selling or simply interacting online. There is potential in
nurturing these basic digital users into full-fledged technopreneurs or digital entrepreneurs.
At Digital Malaysia, the digital entrepreneur is categorised into five broad maturity segments from a scale of level 1
to 5, Malaysias level 1 digital entrepreneur is termed as a digital trader, before the person or entity moves up to a
digital value-added service provider and digital innovator before moving onto the nett digital products and services
exporter and digital niche leader at levels 4 and 5.
The majority of the Malaysian digital entrepreneurs are now at the threshold of maturity level 3 which means
they are mainly digital value-added service providers with some reaching the digital innovator status. However, to
compete with their international counterparts, Malaysian digital entrepreneurs need to mature faster to capture
a more significant market share.
MALAYSIA
DIGITAL ENTREPRENEURS
MATURITY LEVEL
DIGITAL NICHE LEADER
TO-BE position 2020
NETT DIGITAL PRODUCTS &
SERVICES EXPORTER
Maturity Level
Maturity Level
Maturity Level
DIGITAL INNOVATOR
Where they
are now
Maturity Level
DIGITAL VALUE-ADDED SERVICE PROVIDER
AS-IS position
DIGITAL TRADER
Maturity Level
79
1
MORE
Increase rate of
successful start-ups
through:
a. More incubators
DIGITAL ENTREPRENEURS
ACCELERATION
Increase Exports
of Malaysian
digital products
and services
Develop niche
area leadership
b. Accelerators
2
FASTER
Move existing
entrepreneurs to
higher maturity
level via:
a. Focus on Niche
Areas
b. Global Footprint
Expansion
80
VIRTUAL INCUBATORS
INCUBATORS IN MALAYSIA
18
INCUBATORS
Incubators
setup
360
companies
incubated
517
Jobs
created
PROGRAMME
MONEY
MENTOR
MARKET
Mainly domestic
VIRTUAL INCUBATOR
DEFINITION
RATIONALE:
Physical
Support
Virtual
Support
PHYSICAL
INCUBATEES
OFFSITE
INCUBATEES
Incubator programmes are nothing new to Malaysia especially within the ICT and digital industries. Under the MSC
Malaysia programme alone, 18 incubators have been set up producing 360 companies and creating 517 jobs. Digital
entrepreneurs that are deemed as eligible are those who are still at the start-up position, whereby they will be
steered towards capturing the local and regional market first.
In view of the increasing trend of cash-strapped businesses opting for the less is more concept, the Digital
Malaysia Incubator programme also created and promoted the idea of virtual incubators, while still maintaining
the support and promotion of existing physical incubators. These incubators provide both physical and virtual
support, depending on the entrepreneurs preference, that includes advisory, mentoring, market access and rapid
development of digital entrepreneurs.
81
While incubators ensure the development and nurturing of new and up-coming digital entrepreneurs, accelerators
are quoted as incubators on steroids - aimed at fast-tracking matured digital entrepreneurs into the next realm.
The accelerator programme differs from the incubators programme in the sense that it is highly intensive, involving
monetary and equity stake incentives, has the support of a large global network as mentors and looks towards
the bigger global market. Renowned global players like the Founders Institute and Bootstrap Accelerator has been
enlisted in the Digital Malaysia Corporate Accelerator Programme, which is currently nurturing 15 local companies
hoping to be the Malaysian answer to AirBnB and Dropbox.
ACCELERATOR
MONEY
Seed, VC funding
6%-8% equity stake
MENTOR
MARKET
Global
ACCELERATORS IN MALAYSIA
Accelerators from Silicon Valley
FOUNDER
INSTITUTE
BOOTSTRAP
ACCELERATOR
Global early-stage
start-up accelerator,
launching 30 Malaysian
companies in 2014
First Southeast Asia
focused tech accelerator,
1,000 startups with
USD$1m revenue by
2015
Corporate Accelerator
CORPORATE
ACCELERATOR
PROGRAMMES
First corporate
accelerator programmes
in Malaysia, accelerated
4 start-ups and achieved
RM5.0m in revenue
82
Concurrently, Digital Malaysia has established a Global Footprint programme to encourage its entrepreneurs to
expand their business abroad. To spur them on this path, Digital Malaysia hopes to assist in the following avenues:
Provision of or connection to global mentors
Smart international partnership
Linkages to foreign venture capital
Connections to international network
Access to markets in multiple countries
Niche
Area 1
Niche
Area 2
Niche
Area 3
ACCESS
Assess Market
Potential
ALIGN
DEPLOY
SELECTED
NICHE AREAS
R&D funding
Innotech pitching
Gartner Magic Quadrant
Technical training and
certification
Solution certification
Soft skills development
Knowledge worker
development
Solution showcase
Buyer matching
Business development
In addition, the programme also included placing active MDeC Senior International Representatives (SIRs) in key
growth markets such as Japan, India and the US, as well as organising specialised trade missions, coaching and
direct buyer matching initiatives in order to further promote Malaysias growing pool of digital entrepreneurs.
Setting up an MDeC office in the Silicon Valley is also in the pipeline in order to provide a soft landing zone to
capitalise on the North American market.
83
Avenues for participation is open to all Malaysian Embedded Systems Development Companies (SME) where
opportunities lie within areas that include technology access, training, funding for embedded systems product
development, go-to market assistance and prospects to work with technology leaders.
Success stories in 2013
This project, aimed at capturing marketshare by developing local capabilities and securing business, achieved
all its respective targets in the year under review, generating RM341.13 million in GNI and creating 3,250 jobs.
Macro KPI
1.
GNI (RM)
2.
Total Jobs
3.
No
Project KPI
2013 Targets
Current Achievement
% Achievement
279.9 mil
341.13 mil
122%
3,092
3,250
105%
262.42 mil
297.48 mil
113%
2013 Targets
Current Achievement
% Achievement
1.
100%
2.
100%
Two approaches were adopted to meet the project objectives the first to develop projects to capture markets
and the second to grow the ecosystem in collaboration with industry partners. In the first case, 8 embedded
projects were approved in 2013, involving products and services from embedded automotive applications
to digital signage and digital security surveillance. Meanwhile, the project also received a boost with two
technology partners coming on board including National Instruments and Altera.
84
DIGITAL ENTREPRENEUR
TECHNOLOGY
PARTNERS SIGNED UP
TO GROW ECOSYSTEM
11
NO
Embedded automotive
Vision inspection
Wireless sensor
network
Digital Signage
Fleet Management
Digital Security
Surveillance
10
Embedded Radar
System
11
Embedded Control
System
85
Macro KPI
1.
GNI (RM)
2.
Total Jobs
3.
No
Project KPI
2013 Targets
Current Achievement
% Achievement
0.477 mil
0.002 mil
0.42%
13
13
100%
3.2 mil
0.4551 mil
14.22%
2013 Targets
Current Achievement
% Achievement
1.
Industry Roadmap
100%
2.
0%
3.
50,000
600
1.2%
In July, the project took a crucial step forward when Bank Negara Malaysia (BNM) approved a proposal for a
National Mobile Proximity Payment Industry Roadmap, which was jointly developed by MyClear and SMTRACK
Bhd. The month earlier, Celcom conducted trials for its AirCash Tap & Pay facility, in which 600 mobile wallet
pilot users carried out transactions amounting to almost RM9,000 at seven cafeterias, a news stand operator
and car park in Menara Celcom and the cafeteria operator in MRSM Kuantan.
86
DIGITAL ENTREPRENEUR
ROADMAP
COMPLETED
NATIONAL MOBILE
PROXIMITY PAYMENT
600 $ $
MOBILE WALLET
SERVICES SUBSCRIBERS
87
1,570
Revenue 2012
(US$M)
ONLINE PAYMENT
SOLUTIONS
5,600
XYBase
PayPal
88
Revenue 2012
(US$M)
2,870
154
2.3
SITA
Revenue 2012
(US$M)
BUSINESS
INTELLIGENCE
SOLUTIONS
MOL
11.3
SAS INSTITUTE
FUSIONEX
B40:
B40 definition
Below
RM3,050 p.m.
B40 average
RM1,847 p.m.
INCREASING INCOME
(in 2020)
1 Mil
B40 Citizens
Impacted
RM 7 Bil
Additional
Income
Limited economic mobility as the majority are still in school or work in low-income jobs
Low awareness and participation in intervention or social development programmes
Slow rise in incomes, not in tandem with the rising cost of living, especially in urban areas
Lack of means to raise the capital required for entrepreneurship as well as a lack of business experience and
know-how
Digital technology can help alleviate some of the challenges the B40 goes through and Digital Malaysia aims to
impact 1 million of the B40 citizens and generate an additional RM7 billion through increase in incomes and
improvement of quality of life.
89
Education
Health
Economic Security
ICT
Recreation
WELL BEING
Services
Products
$ $
$
$
INCOME
90
91
232,791
98,397
1,085
B40 INDIVIDUALS
PROFILED
B40 INDIVIDUALS
ENGAGED
LOCAL CHAMPIONS /
VOLUNTEERS
DEVELOPED
Trained in volunteerism
ethics and communitybuilding mindset
Education
Health
Economic Security
Recreation
QoL
511
KAMPUNG
Simple tasks such as data collection, data entry, database management, mystery shopper, online marketing and
part-time teaching have since generated RM1.24 million in income as at December 2013.
2011 Data
Europe
Asia Pacific
South America
2%
7%
6%
36%
35%
18%
55%
41%
MOVING FOWARD:
Job Providers
Source: www.massolution.com
92
Workers
Efforts to encourage individual entrepreneurship among the B40 is also made more robust by tapping global
demand.
More than 100,000 Malaysians are already on-board online job platforms like Freelancer.com and earning an
income performing jobs for the global market.
However, in this arena, the non-B40 is making up most of the numbers catering to the global market, possibly due
to the skills requirement factor.
Local organisations too need to be educated to offer services like those provided by Freelancer.com. Awareness
needs to be stepped up via conferences and on-the-ground outreach programmes.
On top of that, collaboration with international partners like US-based company, Crowdsourcing LLC, is underway
to tap into the higher valued international demand.
It is noteworthy that there has been cohesive support and funding to alleviate the plight of the B40 community.
Many organisations see the benefit of assisting the B40 as the latters upliftment will contribute to the increase in
the nations general well-being.
Public, private and non-governmental organisations have come together to lend a hand, contributing to an
approximate total of RM2 million as part of the Digital Malaysia 2013 B40 funding generation exercise.
Agencies and organisations like the National Cancer Society and the Health Department, the Jerantut District
Heath Centre, the Asia Foundation and Pahang State Library, Pahang Technology Resources and its Crowdsourcing
Platform partners, as well as the Zero2Hero Group and the Bera District Office have collectively contributed more
then RM2 million.
EDUCATION
3.
NATIONAL CANCER
SOCIETY +
HEALTH DEPARTMENT
National Cancer Society +
Health Department
B40 TARGET: 2,000
CSR SPENT: RM100K
COMMUNITY ENGLISH
CLASSES IN RURAL AREAS
Asian Foundation + Pahang
State Library
B40 PARTICIPATED: 100
ADDITIONAL TARGET: 1,900
CSR SPENT: RM1.15M
2.
4. CHILD SAFETY
DEVELOPMENT &
TRAINING OF OKU
PDK Jerantut
B40 TARGET: 50
CSR SPENT: RM150K
AWARENESS
MCRI + PDRM Pahang
B40 TARGET: 4,000
CSR SPENT: RM150K
ECONOMIC
SECURITY
5.
MICRO-SOURCING
Crowdsourcing Platforms
B40 IMPACTED: 652
ADDITIONAL TARGET: 1,900
6. DOWNSTREAM ROSELLE
PRODUCT
Rompin + Cameron Highland
Community
B40 TARGET: 20
7. DOMESTIC MAID
SERVICES
Persatuan Ibu Tunggal + Ikrar
Potensi
B40 TARGET: 50
CSR SPENT: 50K
ICT
RECREATION
9. COMMUNITY CYCLING
TRACK
Zero2Hero & Pejabat Daerah
Bera
CSR SPENT: RM50K
8.
RM2M
Private Contribution
to-date
$
$$
93
The Digital Malaysia B40 Initiative has also managed to garner international support through the crowdfunding
platform, Pitchin.my. The platform successfully raised a total of almost RM50,000 for four projects, including an
exciting Sponsor a Child to Read project under the Teach for Malaysia programme.
Crowdfunding
Business and start-up
companies with crowd
investors
NEW SOURCE
OF FUNDS FOR
START-UP /
PROJECT
RM
CITIZEN
ENTERPRISE
MICRO
ENTERPRISE
pitchIN
Approaching Amanah Ikhtiar Malaysia (AIM), Yayasan Pembangunan Ekonomi Islam Malaysia (YaPEIM), Yayasan Basmi
Kemiskinan (YBK), to collaborate and support B40 entrepreneurship and social enterprise via micro-financing
GNI (RM)
2.
Total Jobs
3.
No
Project KPI
1.
2.
3.
4.
94
Macro KPI
2013 Targets
Current Achievement
% Achievement
1.5 mil
1.08 mil
72%
50
28
56%
0.67 mil
0.55 mil
82%
2013 Targets
Current Achievement
% Achievement
50%
700
976
139%
1,500
1,085
72%
1.5 mil
2.0 mil
133%
A critical component of the FSU project is POKOK - (Pembangunan oleh Komuniti untuk Komuniti or in English
Development by Communities for Communities) a digital platform launched in 2012 to carry out the following
tasks:
Increasing private contribution in societal well-being programmes, via CSR programmes or other forms of
participation and engagement with the B40 community. Through this platform, the project will harness
and synergise greater efforts from the private sector, NGOs and the community themselves to create social
development impact.
Improving delivery and impact of vertical programmes through ICT-enabled tools and mechanisms. The
platform will be able to track programmes, performance and its funding utilisation, facilitate planning by
NGOs and the private sector, and assess programme impact from the community perspective.
Enhancing vertical programme outreach, embrace and value through increased involvement of local
communities. Part of the project components are to develop networks of ICT-enabled community champions,
local volunteers and long-term community-driven programmes.
Following a pilot project implemented in Pahang, POKOK was rolled out to two other states in 2013, Perlis and
Terengganu. (Other achievements such as the number of people profiled, volunteers trained and individuals
contracted for work have been mentioned in the preceding pages and are featured in the graphic shown below)
B40
976
PROGRAMME
ROLLOUT
IN
2013 TARGET:
700
1085
1,500
232791
STATE
2013 TARGET:
A DIGITAL
PLATFORM TO
DEVELOP B40
COMMUNITIES BY
COMMUNITIES
RM2.0m
2013 TARGET:
95
Macro KPI
1.
GNI (RM)
2.
Total Jobs
3.
No
Project KPI
2013 Targets
Current Achievement
% Achievement
2.3 mil
0.67 mil
29%
24
36
150%
0.5 mil
0.67 mil
134%
2013 Targets
Current Achievement
% Achievement
2,590
3,217
124%
1.
2.
1+1 WIP
100%
1,000
1,229
123%
3.
Contributing to this performance was the addition of Oricipta Sdn Bhd as an online platform to facilitate
crowdsourcing in 2013. Four similar platforms had come online the previous year, details of which are depicted
in the graphic in the next page along with the other relevant numbers. These microsourcing platforms have the
effect of sustaining a steady stream of opportunities for the B40 community.
Challenges and mitigation plans
96
B40
1200
2013 TARGET:
3200
2013 TARGET:
1,000
2,590
RM1.24m
MICROSOURCING
PLATFORM
2013 TARGET:
BROUGHT
1
ONLINE
2013 TARGET:
RM1.2m
There is now a need to build on the success in 2013 since microsourcing opportunities for the community are
generally few and far in between. The action plans to address this issue are depicted below:
97
98
55%
Gen Y &
Younger
Others
2010
2010
2020 - New
Additions (mil)
3.97
8.27
4.29
99
Digital Malaysia identified three areas to focus on in developing these youths and has set a target of 5 million
digital-savvy youth by 2020.
DIGITAL LITERACY
A. Basic
B. Advanced
>72,000
CHARACTER &
VALUES
A. Digital
Volunteerism
>60
MILLION
Digital-Savvy Youth
by 2020
DIGITAL CREATIVITY
& INNOVATION
A. Content Curation
B. Entrepreneurship
>3,400
It should be noted that several initiatives to promote greater digital competency among Malaysian youths are
already on the scene. These have been put in place and funded by the Government as well as the private sector.
They include:
Digital Literacy
This focus area ensures that Malaysian youths are equipped with digital skills and are adept in using those skills
as a means to value add themselves and increase their productivity level. Youths are either exposed to the
basics of technology and electronic media such as instant messaging, Voice Over IP, e-mail and calendaring, as
well as video across multiple devices; or taken on more advanced courses depending on their level of knowledge
and exposure in digital technology.
Character and Values
Character and values are inculcated in youths so they can become a responsible workforce of the future. For
instance, digital volunteerism aims to promote social responsibility among the young and includes the use of
digital advocacy skills, know-how and ethics for socially responsible and productive purposes. Some of the
programmes which youths can participate in currently are TEDxKL, DiGi Challenge for Change, Do Something
Good, Social Innovation Camp, YouthsToday.com and Youth Trust Foundations programmes.
Digital Creativity and Innovation
This focus area takes youths to another level where creation and entrepreneurship are key. Entrepreneurship
are also given due emphasis where youths are taught to develop commercially viable ideas, financial planning
and marketing via digital tools. MCMC-AT&T Hackathon, ICON, IHL Business Competition, MDEC Entrepreneurship
Skill Development and Microsoft Appathon are currently implemented to meet this demand.
100
101
Macro KPI
1.
GNI (RM)
2.
Total Jobs
3.
No
Project KPI
1.
No. of Users
2.
2013 Targets
Current Achievement
% Achievement
9.5 mil
4.28 mil
45%
64
65
101.6%
4.11 mil
3.55 mil
86.4%
2013 Targets
Current Achievement
% Achievement
1,411
6,231
442%
100%
DIGITAL-SAVVY YOUTH
6200
2013 TARGET:
1,411
2500
300 2
102
2013 TARGET:
ONLINE COURSES
CONTENT
PROVIDERS
TO GROW
ECOSYSTEM
International Interactive
content for primary &
secondary schools
103
90%
97%
In Services Sector
90% Services
77% Micro
3%
Medium
104
20%
Small
Percentage of SMEs
over total business
establishments
97.3%
98.5%
Based on the new SME Definition
(WEF 1st January 2014)
EMPLOYMENT
OUTSOURCING &
TECHNOLOGY
IMPACT ON
ECONOMY
EMPLOYMENT
GDP
ENTERPRISES
19%
USA
50.4%
50.7%
85.2%
TAIWAN
76.6%
40.0%
95.0%
SINGAPORE
AUSTRALIA
CHINA
MALAYSIA
56.4%
32.0%
99.2%
Contribution to
national exports
Source: The Internets Impact on Aspiring Countries Report by Mckensey, Jan 2012
Digital Malaysia initiatives for SMEs centre on the need to address the challenges of these industries in adopting
technology and to create a positive impact by enhancing revenue and reducing costs.
Firstly, the vertical sectors for intervention were assessed and aligned with other national initiatives before
programmes were deployed. Four sub-sectors, namely F&B, wholesale and wholesale trade of motor vehicles
parts, textiles as well as apparels, were proposed as sectors to be focused on.
Subsequently, four projects were identified to drive exports and productivity growth for SMEs and they are:
1. Asian eFulfillments Hub
2. Shared Cloud Enterprise Services
3. Enabling ePayment services for SMEs and Micro enterprises
4. Accelerate international trade through eCommerce (eTrade)
105
No
1.
GNI (RM)
2.
Total Jobs
3.
No
Project KPI
2013 Targets
2013 Achievement
% Achievement
11 mil
6.91 mil
63%
81
90
111%
60.5 mil
7.65 mil
13%
2013 Targets
2013 Achievement
% Achievement
1.
20
16
80%
2.
Number of Customers
100%
3.
10 mil
43.19 mil
432%
During the year under review, the Asian eFulfillment Hub was expanded to four spokes, namely Tampoi, Subang 6,
Mentakab and Port Klang. The Hub trained 14 certified logistics talents and 14 new customers with a transaction
value of RM43.19 million for 2013. 2014 will see more efforts towards:
Increasing transaction value by attracting new customers
Adding new private sector champions - three companies have so far been engaged as potential private sector
champions, namely POS Malaysia Berhad, Sumisho eCommerce Sdn Bhd, ISIS Logistics Sdn Bhd and PKT Logistics
Group Sdn Bhd
SME
RM43m
16
5
2013 TARGET:
RM10m
20
NEW CUSTOMERS
106
2013 Targets
1.
GNI (RM)
25 mil
2.
Total Jobs
150
3.
No
Project KPI
1.
3.71 mil
2013 Targets
600
Current Achievement
% Achievement
30.95 mil
124%
418
279%
22.65 mil
611%
Current Achievement
% Achievement
1,725
288%
107
SME
1720
2013 TARGET:
600
APPROACHES TO
MAKE OPERATIONS
LEANER
However, carrying out business via ePayment methods can be a costly affair to most SMEs and micro enterprises.
In 2012 when this project was launched, less than 3% of merchants in Malaysia were enabled with ePayment
facilities.
Recognising the importance of this method of transaction and the challenges the SMEs and micro enterprises
face, Digital Malaysia together with SME Corp Malaysia, embarked on a quest to encourage and enable easier
adoption of the ePayment method. Among others, the project aims to provide these SMEs and micro enterprises
easy access to affordable terminals and readers, thus enabling them to reap the rewards of ePayment
transactions.
108
Macro KPI
1.
GNI (RM)
2.
Total Jobs
3.
No
Project KPI
1.
2.
3.
2013 Targets
2013 Achievement
% Achievement
5 mil
17.37 mil
347%
200
256
128%
10 mil
7.25 mil
73%
2013 Targets
2013 Achievement
% Achievement
42,581
43,863
103%
18
300%
14.4 mil
977.81 mil
6,790%
It is encouraging to note that a number of SMEs responded to this project. A total of 43,863 ePayment terminals
were installed and 31,188 SMEs enabled with ePayment facilities, giving a total transaction value of RM977.81
million.
SME
18
43000
RM900m
2013 TARGET:
2013 TARGET:
42,581
2013 TARGET:
SUCCESS STORIES
RM14.4m
TRANSACTION VALUE
109
110
SECTION 05
VIEW AHEAD
111
# CHAPTER 7
Looking Ahead
Malaysia has made commendable progress in moving towards the goals and
aspirations of Vision 2020. We have also gained significant ground in developing
and implementing Digital Malaysia, a critical component for national digital
transformation.
112
EXISTING
INITIATIVES
BENEFITTING
STAKEHOLDERS:
GOVERNMENT/
BUSINESSES/
CITIZENS
STRATEGIC
THRUSTS
Supply to Demand:
Consumption to
production:
Low knowledge-add to
high knowledge-add:
GAME CHANGERS
& BEHAVIOURAL
CHANGERS
enhance competitiveness by
focusing on knowledge-added
activities
DM
INITIATIVES
DM
PROJECTS
BLOCK 1, 2 & 3
PROJECTS
*
**
Block 2 Initiatives*
Block 1 Initiatives**
Digital Access, Adoption & Use
Digital Economy Sub-Sectors
PRIVATE SECTOR
DIGITAL PRODUCTS
& SERVICES
CURRENT, ANNOUNCED,
EXISTING & NEW PROJECTS
BY MINISTRIES, AGENCIES &
PRIVATE SECTOR
113
DIGITAL
ECONOMY
Use of ICT in
Vertical
Sectors
ICT
Sector
PHASE 1
PHASE 2
PHASE 3
2012-2020
2021-2030
2031-2040
114
ICT SECTOR
SERVICES
MANUFACTURING
SOCIAL
N...
ICT SECTOR
FOCUS GROUPS
Infrastructure
(KKMM)
ICT Industry
(MDeC)
Digital
Opportunities
(MCMC)
ENABLING
ENVIRONMENT AREAS
SUB-SECTORS
COMMUNITIES
Talent
(Universiti Malaya)
Indigenous
Technology
(MIMOS)
115
2. Fine-tuning the governance structures to steer and drive a holistic DM 354 Strategic Roadmap roll-out
Rolling out the Roadmap in the years ahead will require a flexibility and fine-tuning of the governance structures
as necessary. As such, with the expansion of the scope for Digital Malaysia, the membership for the DMSC and
relevant Focus Groups will be assessed to ensure participations from relevant stakeholders are factored in.
116
In closing
The way forward requires a collaborative effort of all the stakeholders and players in the game. Each of the parts
has a specific function as a whole and as part of the larger community which must be worked as a well-oiled
machinery to achieve the set targets and goals as much as possible. The progress and achievements of each subsection is dependent on each other, whereby the delivery of the required results of one section would initiate the
next move of another.
Significant progress has been achieved in 2013 to drive Digital Malaysia forward. The challenge in the years ahead
is so generate momentum to the point when Digital Malaysia can grow and expand to the desired state.
117
118
SECTION 06
APPENDICES
119
ary
Glossary
Glossary
Tenth
Tenth Malaysia Plan
10MPMalaysia Plan
Eleventh
Eleventh Malaysia Plan
11MP Malaysia Plan
Islamic
Finance
Institute
IBFIM Banking and
Islamic
Banking
and of
Finance Institute
o
NITC
Malaysia
Malaysia
NKEA
Implementation
Council
Meeting Council Meeting
ICM
Implementation
NKRA
ICM
Business-to-business
B2B
Business-to-business
ICT
Information
and communications
ICT
Information and communications
OECD
technology
technology
ICTSA
ICT
Satellite Account
ICTSA
ICT Satellite Account
Business-to-consumer
B2C
Business-to-consumer
Bank
BNMNegara Malaysia
Bank Negara Malaysia
Biro
BTN
Tatanegara (National
Biro Tatanegara
Civics Bureau)
(National Civics Bureau)
Compounded
CAGR
Annual
Compounded
Growth Rate
Annual Growth Rate
Capital
CAPEXexpenditure
Capital expenditure
Customised
CELEX
education
Customised
and learning
education and learning
exchange portal exchange portal
Glossary
Agreed
Agreed Upon Procedures
AUP Upon Procedures
IBFIM
Glossary
Creative
CMC Multimedia
Creative
ClusterMultimedia Cluster
Centre
CoE of Excellence
Centre of Excellence
Customer
CRM
relationship
Customer
management
relationship management
Corporate
CSR
Social Responsibility
Corporate Social Responsibility
ICU
IHL
iLMS
OPEX
Implementation
Council
Unit
ICU
Implementation
Council Unit OPPA
Institutions
of Higher
Learningof Higher LearningPEMANDU
IHL
Institutions
InfoTech
Intelligent
Learning
Management
iLMS
Intelligent
Learning Management
System
System
PHMS
Information
InfoTech Technology
Information Technology
PKNP
IRB
Inland
of Revenue
Malaysia Board of Malaysia
IRB Revenue Board
Inland
PMO
ISV
Independent
service
vendors service vendors PNM
ISV
Independent
Committee
for Ministerial
IT and
Internet IT and
JITIK
Committee
for Ministerial
POSIntern
Initiatives
Initiatives
PPP
Ministry
Family of
and
KPWKMof Women,
Ministry
Women, Family and
PTP
Community Development
Community Development
QoL
Low
LIHIncome Household
Low Income Household
JITIK
KPWKM
Community
CTP
Transformation
Community
Programme
Transformation Programme
Domestic
DDI
Direct Investment
Domestic Direct Investment
LIH
Digital
DESA Economy Satellite
Digital Economy
Account Satellite Account
MAMPU
RFID
Malaysian
Modernisation
MAMPU Administrative
Malaysian
Administrative Modernisation
and Management and
Planning
Unit
Management
Planning Unit
ROI
MASTIC
Malaysian
and Technology
MASTIC Science Malaysian
Science and Technology
SaaS
Information CentreInformation Centre
SCM
Malaysian
Angel Network
MBAN BusinessMalaysian
Business Angel Network
SME
Malaysian
MCMC Communications
Malaysianand
Communications and
SME Corp
Multimedia Commission
Multimedia Commission
Digital
DM Malaysia
Digital Malaysia
Outcome-based
DOBA
approach
Outcome-based approach
Department
DOSM
of Statistics
Department
Malaysia
of Statistics Malaysia
Electrical
E&E
and electronics
Electrical and electronics
Electronic
EDI
data interchange
Electronic data interchange
MBAN
MCMC
Employees
EPF
Provident
Employees
Fund Provident Fund
MDeC
Entry
EPP Point Projects
Entry Point Projects
MIDA
Economic
EPU
PlanningEconomic
Unit
Planning Unit
Enterprise
ERP
Resource
Enterprise
PlanningResource Planning
Economic
ETP
Transformation
Economic
Programme
Transformation Programme
Foreign
FDI Direct Investment
Foreign Direct Investment
Facilitating
FSU
social Facilitating
uplift
social uplift
Gross
GDP Domestic Product
Gross Domestic Product
Government-linked
GLC
Government-linked
companies
companies
Get
GMBO
Malaysia Business
Get Malaysia
Online Business Online
MITI
MOF
MOHE
MOHR
MSIC
Multimedia
development
Corporation
MDeC
Multimedia
development Corporation
SRI
Malaysian
Industrial
Development
MIDA
Malaysian
Industrial Development
SSO
Authority
Authority
STEM
Ministry
and
MITI of International
MinistryTrade
of International
Trade and
Industry
Industry
STP
Ministry
MOF of FinanceMinistry of Finance
TPA
Ministry
Education
MOHE of Higher Ministry
of Higher Education
UiTM
of Human Resources
Ministry
Resources
MOHR of HumanMinistry
WR
MSIC
for B40 Implementation
Microsourcing
forMicrosourcing
B40 Implementation
Committee
Committee
MSU
MSU
and Science University
Management
and Management
Science University
MTM
MTM
Market-to-Market
Market-to-Market
MVCA
MVCA VentureMalaysian
Venture
Malaysian
Capital and
PrivateCapital and Private
Equity AssociationEquity Association
MyICMS
MyICMS Information,
Malaysian
Information, Communication
Malaysian
Communications
and Multimedia Services
and Multimedia Services
Gross
GVA Value AddedGross Value Added
NCI
NCI
National
Committee on Investment
National
Committee
on Investment
Gross
GNI National Income
Gross National Income
Global
GSC Sourcing Cluster
Global Sourcing Cluster
Global
GSIACScience andGlobal
Innovation
Science
Advisory
and Innovation Advisory
Council
Council
Government
GTP
Transformation
Government
Programme
Transformation Programme
Human
HRDF Resources Human
Development
Resources
FundDevelopment Fund
NDBM
NDBM
NewModels
Digital Business Models
New
Digital Business
Human
HRM resource management
Human resource management
NEF
NEFEntrepreneurNew
Entrepreneur Foundation
New
Foundation
High
HSBB
Speed Broadband
High Speed Broadband
NEM
NEMEconomic Model
New Economic Model
New
International
IAP
Advisory
International
Panel
Advisory Panel
NFC
NFCField Communications
Near Field Communications
Near
NGO
NGO
Non-governmental
organisations
Non-governmental
organisations
120
Glossary
titute of
NITC
NKEA
NKRA
OECD
OPEX
Operational expenditure
OPPA
Opportunity-based approach
PEMANDU
PHMS
PKNP
PMO
PNM
POS
Point-of-Sales
a
Internet
nisation
gy
ork
ation
nd
tation
PPP
Public-Private Partnership
PTP
QoL
Quality of life
RFID
ROI
Return on Investment
SaaS
Software-as-a-Service
SCM
SME
SME Corp
SRI
SSO
STEM
STP
TPA
UiTM
WR
White Room
rsity
rivate
cations
ent
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