Byline High Res

I FEATURE
Hinrich Foundation Digital Trade Report
Hinrich Foundation Digital Trade Report: Digital trade could create a RM 222 billion opportunity for Malaysia’s domestic
economy by 2030
• Digital trade can have a huge positive impact on Malaysia’s domestic economy, with some of the biggest beneficiaries
coming from outside the digital sector.
• The value-added of digital trade to Malaysia’s domestic sectors could grow more than 9-fold and reach RM 222 billion
(US$52 billion) by 2030.
• At RM 31 billion (US$7 billion), digital exports account for only 3 percent of Malaysia’s total export value today and
constitute the country’s 6th largest export sector. In the absence of digital trade barriers, digital exports could grow by 298
percent from today’s levels to reach RM 122 billion (US$28.5 billion) in 2030.
• To maximize future returns from digital trade, digital trade barriers at home and abroad will need to be reduced. Actions in
four main areas can help to achieve this: ensuring open cross-border data flows, innovation-oriented approaches to
copyright and intermediary liability regulations, minimising border frictions and the encouragement of digital
adoption.
• The research defines “digital trade” as activities in the production, distribution, marketing, sale or delivery of goods and
services – domestically and abroad – supported by cross-border data flows. This includes trade in digitally enabled services
and products traditionally included in trade, such as e-commerce and digital advertising, as well cross-border data flows
that create economic value in the domestic economy, such as Malaysian business using data storage or analytics abroad
to assist in their operations here at home. Digital trade is an important component of the wider digital economy in
Malaysia.
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