On July 19, 2021, MDEC announced a five-year plan aimed at enhancing Malaysia’s digital economy, Future 5 Digital Investments (DIF5).
This plan is in line with the objectives of the MyDIGITAL map to attract investment of RM70 billion by 2025. For five years, this initiative is aimed at:
- Ensure RM50 billion in investments;
- Focused on 5 key industrial sectors, 5 focusing technologies, 5 emerging technologies, Y global digital business services;
- Attracting 50 Fortune500 technology companies to land and expand in Malaysia;
- Setting 5 unicorns; other
- Creating 50,000 high-value jobs in MSC Malaysia (formerly known as Multimedia Super Corridor).
Focusing on 5 key industrial sectors:
In other words, agritech (agriculture + technology). It is the use of scientific techniques to improve the agricultural sector, such as the use of automated irrigation systems to reduce labor in agriculture.
According to the latest report from the Department of Statistics of Malaysia (DOSM) of 2019, the agricultural sector is the third largest contributor to GDP (7.1%, which is RM101.5 billion) for the country, along with the mining and quarrying sector.
The world agricultural industry was valued at more than US $ 9.6 trillion in 2020. Despite the pandemic, the industry is also expected to grow at a compound annual growth rate of 6% in 2021, a collaborative report shared by Deloitte and MaGIC.
With the Memorandum of Understanding contributing to the growing use of technology in agriculture, it is estimated that there will be a 30% increase in job opportunities created by 2025 in this sector, including young people.
2) Health technology
They are technology such as AI, medical devices, IT systems, algorithms, cloud and blockchain, etc. designed to support the healthcare industry.
By 2027, our local healthcare sector forecasted to grow to RM127 billion. Furthermore, more than 90% of locally manufactured medical devices are exported and Malaysia supplies 60% of the world market for medical gloves and 80% for catheters. In fact, the global market for this sector in healthcare alone is expected to reach US $ 33 billion by 2021.
3) Islamic Digital Economy (IDE) and FinTech
Global Islamic financial assets are projected to grow close to US $ 4 trillion by 2024, and at the local level, FIKRA Islamic Fintech Accelerator Program it already plans to nurture hopeful startups in this sector.
Malaysia has a strong foundation in Islamic financial technology, with the the largest number of providers in the world and a ranking of being the number one of the islamic economy globally by the State of the World Islamic Economy Report 2020/2021.
4) Clean technology
It is synonymous with green technology, which includes renewable energy sources, new recycling methods and other technologies used to improve environmental sustainability. Globally, this industry is expected to generate a income of US $ 57.8 billion in 2030.
Malaysia has so promised reduce its greenhouse gas emissions by 45% relative to the country’s 2005 gross domestic product under the Paris Agreement in 2016, hence the urgency for the public and private sectors to get more involved.
EduTech refers to the technology implementation for educational purposes, inside and outside the physical classroom. It is an industry that has seen the growth of various educational apps, online class sites, and more.
By 2025, global educational technology market will reach $ 404 billion in total spending, HolonIQ shared. Locally, the Malaysian e-learning market was already seer a compound annual growth rate (CAGR) of 16.4% in 2019.
Now the Malaysian online learning market is expected to exceed $ 2 billion by 2023, thanks to the growing demand for edutech, smart classes, etc., especially during the pandemic.
The 5 technologies of focus to help the growth of the sectors:
- Cloud Computing: The delivery of different services through the Internet such as data storage, servers, databases, networks and software. A popular example of cloud computing that most of us use is Google Drive.
- Data center: A. physical ease that organizations use to house their critical applications and data, and they look almost like bookshelves in a library.
- Artificial intelligence: Technologies that imitate the problem-solving and decision-making capabilities of the human mind.
- Cyber security: The protection of networks, devices and data of unauthorized access or criminal use and the practice of guaranteeing the confidentiality, integrity and availability of the information.
- Digital content tools: Sites and programs used in the creation or consumption of digital content.
Cultivating 5 emerging technologies:
- Blockchain: A. decentralized ledger of all transactions over a peer-to-peer network.
- DroneTech: Technology that powers unmanned aircraft that are controlled remotely or autonomously using embedded software.
- Edge computing: A. distributed computing framework that brings business applications closer to data sources, such as IoT devices or local edge servers.
- Extended reality: Then known like XR, which is the generic term for virtual reality (VR), augmented reality (AR) and mixed reality (MR), basically everything related to the virtual environment.
- Advanced robotics: Unlike Conventional robotics that you may have come across in your school days, advanced robotics can act autonomously.
According to the MDEC, these “will increase the economic complexity of the nation and help develop new and existing economic groups that in turn create high-value job opportunities and extended national economic ties,” which is in line with Malaysian National Investment Aspirations (NIA).
Furthermore, in addition to contributing to our national digital economy plan, these technologies will also be linked to the upcoming MDEC Global Testbed Initiative, which will allow Malaysia to be a testbed for future technology investments.
In addition, they will develop the nation’s intellectual property and talent pool in future technologies, as this initiative will collaborate with institutes of higher education and think tanks.
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In addition to developing and attracting new technologies for DIF5, MDEC will also increase its efforts to grow digital global business services. This is so that they can promote the use of robotic process automation and data analysis, as well as knowledge engineering.
Dictionary time: Knowledge engineering is a field of artificial intelligence (AI) that develops rules that are applied to data to mimic the thought process of a human who is an expert on a specific topic.
To launch DIF5, MDEC recovered Malaysia Tech Month for 2021 (which debuted last year) on July 29, 2021, and this virtual event includes workshops, panel discussions, and business matchmaking sessions that you can attend for free.
- You can learn more about MDEC’s DIF5 strategy here.
- You can read more MyDIGITAL articles that we have written here.
Featured Image Credit: Open Gov Asia (left) and Surina Shukri, CEO of MDEC (right)