will be derived from digital products or services by 2021. The study titled, “Unlocking the Economic Impact of Digital Transformation in Asia Pacific¹”, wasproducedbyMicrosoft inpartnership with IDC Asia/Pacific (Mehtrora, 2018). According to Gartner Inc., Malaysia is an ideal and cost-effective testbed for U.S. companies that are interested to expand their business footprint in ASEAN. Malaysia is strategically situated with easy accessibility to other countries and has robust infrastructure, connectivity, and economic stability. ICT has been identified as the key growing sector in the country that grows at an Annual Average Growth Rate (AAGR) 9.0% over a period of seven (7) years. Malaysia has always been a popular destination for U.S. ICT companies for their global market expansion. Some significant-U.S.-companies-that-are well-established in Malaysia are IBM, HP, Intel, Google, Amazon, Cisco and many others. Malaysia has a holistic digital ecosystem and a complete ICT support system for U.S. businesses (Malaysia - Information & Communications Technology, 2019). In this instance, these larger corporations can partner with small, specialised companies from Malaysia (2019). Malaysian companies can integrate themselves into the international supply chain by producing niche products required by these corporations with quick turnaround times and have a close customer relationship which help these corporations to stay innovative and competitive. With established quality certifications, strong financial standing, and ability to scale up, Malaysian companies are in satisfactory position to measure up in terms of quality, price and delivery.
Existing trends where many large corporations are shifting from short- term transaction-based relationships to long-term collaborative partnerships with smaller suppliers provide opportunities to local businesses. Spill over effect of growth in high technology industries inevitably will create skilled job opportunities for local talents as evidenced in the preceding industrialisation phase took place in Malaysia. Driving high technology industries and embracing Industry 4.0 in Malaysia matter simply-because-we-are-already knee-deep in them and a dramatic acceleration in the pace of digital transformation across Asia’s economy is expected to take place. Malaysia cannot afford to be left behind. To illustrate a case in point, in 2017 about 7% of Malaysia’s GDP was derived from digital products and services created directly using digital technologies, like mobility, cloud, IoT, and AI. Examples of digital products are e-books, software, video, audio & music, photography, graphics & art, documents, courses, and a host of other products. Unlike physical products, digital products are in a league of their own. Comparatively, digital products are easy to distribute, significantly more sustainable, can be replicated infinitely, and are oftentimes simpler to create. With little more than one or a few devices, any person can create a digital product worthy of sharing or selling. No physical materials, factories, or staff required. Simply a computer, a sprinkle of passion and drive, and some time.
YOU CAN’T JUST ASK CUSTOMERS WHAT THEY WANT AND THEN TRY TO GIVE THAT TO THEM. BY THE TIME YOU GET IT BUILT, THEY WILL WANT SOMETHING NEW
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Malaysian Technology Strategic Outlook 2019/2020 Intergration of High Technology
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