Where We Are Now Smart Economy in Malaysia At A Glance
The realisa�on of Smart Economy requires na�onwide willingness to adopt digital technologies, par�cularly in ci�es now being designed to take on board the smart transforma�on. There have been posi�ve indicators poin�ng towards progress on this front, as the country’s digital economy expanded to RM267.7 billion in 2018, contribu�ng 18.5% to the na�onal economy. Smart Economy is seen from two main perspec�ves: • Improving produc�vity through the strengthening of human capital, enhancing the quality of the workforce to meet future demands of the industry and the overall environment of smart city. • Strengthening technology applica�ons and digitalisa�on in core business func�ons, enhancing such instruments as e-payment usage, and establishing technology labs and collec�ve pla�orms
As illustrated below, the government has set several priori�es to support the growth of smart economy in Malaysia. These include improving produc�vity, crea�ng high-value jobs and encouraging innova�ons in businesses and entrepreneurship.
Priorities for Development
• Increase produc�vity in the current economy • Create more high-value jobs • Increase the readiness to transi�on to high-value industries • Encourage and facilitate the development of innova�ve businesses and enterprises
Figure 2-2: Priority Areas for Smart Economy Development in Malaysia
As illustrated in Figure 2-3, as high as 70% of the local authori�es see cashless and e-payment solu�ons as the core technologies to implement their smart economy ini�a�ves to support Malaysia’s move towards digital economy.
70% Cashless & E-payment
60% E-commerce
25% Blockchain
62.5% Digital Economy
Figure 2-3, Source: MIGHT Analytics
Malaysia Smart City Outlook 2021 - 2022 | 9
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