Malaysia’s digital transformation strategy aims to make the country a regional digital leader in Southeast Asia.
This includes expanding internet access, creating world-class connectivity infrastructure, and developing the ecosystem of start-ups and innovation hubs to attract foreign investment and talent.
According to OECD, the government is among the first and only in the region (along with Indonesia, Myanmar and Vietnam) to develop a national digital-government strategy at all levels, including its municipalities.
Restoring after the pandemic
Before the COVID-19 pandemic, Malaysia undertook a series of vigorous reforms, ranging from improving the regulatory framework to the digitalisation of the economy, intending to boost productivity.
Then, in November 2020, Malaysia set up the National Digital Economy and 4IR Council to accelerate local capabilities in embracing digitalisation.
While the prolonged pandemic has inevitably stalled reform efforts in the country, strengthening the digital public sector has become all the more important.
This will be critical to achieving a robust recovery and accelerating digitalisation.
Laying a solid foundation for open government data
The government has shown real commitment toward open data usage since 2018.
It is one of the only countries in the region that has shown initiatives to promote open government data reuse to improve the delivery of public services.
According to an OECD report, Malaysia had the second-highest score in SEA (South East Asia) in 2018 regarding public sector data’s openness, usefulness and re-usability.
This performance data can provide insights for future planning and decision-making.
It is evident that transparency, accuracy and accountability should be improved to ensure the Malaysian citizens benefit from an improved democratic process.
Solid efforts to measure the financial benefits of public sector ICT projects
Part of the effort to become the leading digital economy in Southeast Asia involves the measurement of the financial benefits of all governmental projects.
Malaysia was one of the first countries to consistently measure the financial benefits of information and communication technology (ICT) projects for central government, citizens and businesses.
It strives to use this information to inform its public policies and practices for ICT investments.
Supporting national development policies with MyDIGITAL
MyDIGITAL is probably one of the most outstanding achievements the government has made.
This is the first Digital Economy Blueprint where the government carefully considers the vision and growth of its digitalisation.
It complements national development policies such as Wawasan Kemakmuran Bersama 2030 (WKB 2030) and the Twelfth Malaysia Plan (RMKe-12) and
The digital economy was identified as a key economic growth area in developing sustainably with equitable economic distribution as well as inclusive growth.
Think of it as the groundwork for the country’s transformation toward an advanced digital economy, designed to pave the way for the government to strategically position itself as a competitive force in the region and globally.
The implementation of MyDIGITAL will be overseen by a governance framework which features:
- A strategic change management office to drive changes on the ground across the nation
- A transparent and precise monitoring and evaluation mechanism to establish complete feedback loops, top-down and bottom-up
- Six specific clusters to improve overall efficiency, effectiveness, accountability and inter-ministry collaboration
- Clear timelines to deliver measurable outcomes from each of its initiatives
Final remarks
The world’s economic growth is increasingly driven by digitalisation.
People’s behaviour has evolved to prioritise quick and convenient experiences that is powered by the internet and mobile phones.
The COVID-19 pandemic amplified the importance of the digital economy to ensure continuity in economic activities.
In Malaysia, reforms implemented to the telecom regulatory regime have seen the costs of fixed broadband halve and speeds double since the end of 2018.
Moreover, it is among the first developing countries to extend indirect taxation to imported digital services provided by non-resident suppliers.
This is how it’s pushing the development frontier in the country by helping to balance the growth of the digital economy while safeguarding its public sector revenues.
However, for Malaysia to ensure that growth in digitalisation is sustainable, the government will need to address key barriers related to infrastructure, taxation, transparency and accountability.
Nonetheless, Malaysia continues to trail its international peers in digital adoption, especially as the country increasingly compares itself to high-income rather than upper-middle-income peers.
Sources:
https://www.worldbank.org/en/news/feature/2021/09/15/our-knowledge-partnership-with-malaysia
https://opengovasia.com/events/powering-up-digital-transformation-for-malaysian-public-sector/
https://publicadministration.un.org/egovkb/en-us/Reports/UN-E-Government-Survey-2020
https://www.epu.gov.my/sites/default/files/2021-02/malaysia-digital-economy-blueprint.pdf
