The Muamalat Newsletter Vol.1 2023

FEM Newsletter | June 2023 56 gear and with the Future5 Investment Strategy, we are further synergizing our efforts and initiatives to push the nation forward towards achieving the goals set forth in the Malaysia Digital Economy Blueprint (MyDIGITAL),” The DIF5 strategy targets by 2025: » RM50 billion investments in the digital economy » Focus on 5 key industry sectors, 5 focus technologies, 5 emerging technologies and digital global business services. » Attract 50 Fortune500 tech companies to land and expand in Malaysia. » Establishment of 5 Unicorns » Creation of 50,000 high-value jobs in the MSC The DIF5 Strategy will also be focusing on five key emerging technologies to drive innovation and ensure Malaysia will be at the forefront of the rapid evolution of digital technologies and development of a future-ready digital economy. These technologies are Blockchain, DroneTech, Edge Computing, Extended Reality and Advanced Robotics. These will increase the economic complexity of the nation and help develop new and existing economic clusters which in turn create high value job opportunities and extend domestic economic linkages. This is in line with Malaysia’s National Investment Aspirations (NIA). Furthermore, these technologies are potentially game changers for the future and tie in with the MDEC’s soon to be launched Global Testbed Initiative, allowingMalaysia tooffer itself asa testbed for up-and-coming technology investments and foster collaborations with Institutes of Higher Learning and Think-Tanks to develop the nation’s local intellectual property and talent pool in future technologies. MDEC will also be increasing efforts to grow the Digital Global Business Services, encouraging the use of robotic process automation and data analytics as well as Knowledge Engineering. More Center of Expertise (CoE) will be established to enable the workforce to move up the value chain to form the next generation of tech talents to fuel the next evolution of customer experience and employee efficiencies in the digital economy. According to the e-Conomy SEA 2019 report by Google, Temasek and Bain & Company, ASEAN is poised to be the next key global growth region. Malaysia isprimedtobethe leadingdigital economy in ASEAN which has over 650 million consumers. The Internet Economy alone is expected to be worth US$300 billion by 2025.The digital economy is expected to continue its significant contribution to the country in 2021 based on an estimated 20 % contribution to GDP in 2020 by the Department of Statistics Malaysia, on the back of a 6.7 % economic growth forecast this year by the World Bank. The Malaysia Digital Economy Blueprint (MyDIGITAL), announced recently by the Prime Minister also projects a 22.6 % contribution to GDP by 2025, targeting RM70 billion investments and opening 500,000 jobs within the digital economy. Malaysia continues to welcome new investments in 2021. Recently Clarivate, a global leader in providing solutions to accelerate the lifecycle of innovation, established its Global Business Center in Penang, providing between 150-200 new job opportunities. This is the 100th MSC-status company from the United Kingdom. In addition, Juwai IQI, a global real estate technology group, recently landed in Malaysia and made Kuala Lumpur its headquarters for global research and development, eventually leading to the creation of a data and technology team comprising of 1,000 employees. Global tech firms who have operations in Malaysia such as NTT, Hitachi Sunway Information Systems, TransCosmos and DKSH CSSC continue to show confidence by re-investing in Malaysia. In conclusion Financial planning and economic development are closely intertwined, and both are essential for sustainable growth in Malaysia. The government’s policies and initiatives, such as MyDIGITAL, Digital Investments Future5 (DIF5) and the 12th Malaysia Plan, aims to support financial planning and economic development by promoting digital adoption, improving human capital development, and fostering innovation and entrepreneurship. These policies are critical in creating an ecosystem that supports long-term financial stability and economic growth in Malaysia. Author’s email: shukorharun@usim.edu.my References: 1) www.mydigital.gov.my 2) Twelfth Malaysia Plan, 2021-2025. (RMKe- 12) 3) Malaysia Digital Economy Blueprint 2021-2025 4) the National E-Commerce Strategic Roadmap 2.0. (NESR 2.0)