Byline High Res

FEATURE I
The Hinrich Foundation, the Institute for Democracy and Economic Affairs (IDEAS), the Malaysia Australia Business Council
(MABC) and AlphaBeta released a report recently (“The Data Revolution: How Malaysia can capture the digital trade
opportunity at home and abroad”) which estimates the current and potential future economic values of digital trade to the
Malaysian economy. The report also recommends important policy actions for capturing the digital trade opportunity and for
mitigating and managing risks.
“Digital trade contributed 1.8 percent of Malaysia’s GDP in 2017.
A reduction in digital trade barriers would enable this contribution
to grow nine-fold and reach MYR 222 billion by 2030 (US$ 51.6
billion). Domestic companies in the infrastructure, manufacturing,
food and agriculture sectors would be the primary beneficiaries”.
Ms. Berenice Voets
Director of Public Affairs, Hinrich Foundation
According to the report, digital trade can enable Malaysian firms to reduce the cost of storing data, improve business practices,
generate richer business insights, and enter new markets. Digital trade can also facilitate the more efficient management of
global supply chains (e.g. tracking of export containers using Internet of Things technology).
“Digital trade stands as a key enabler to transforming economies in
an information age. Malaysia is gearing up for it through enhanced
adoption and cross-border collaboration.”
Mr. Dinesh Nambiar
Chairman, Malaysia Australia Business Council
The export value of digital goods and services enabled by the digital economy, such as the sales of goods to overseas markets
facilitated via e-commerce platforms, accounts for RM 31 billion (US$7 billion) in exports today. Constituting only 1 percent of
Malaysia’s total export value, this value is relatively low. Nonetheless, in the absence of barriers to digital trade, it is estimated
that Malaysia’s digital exports could grow by 298 percent from today’s levels to reach RM 122 billion (US$28.5 billion) in
2030.
“This report highlights the immense value of digital trade to the
Malaysian economy: now and in the future. The government has
rightly promised to support the growth of the digital economy and
this must include reducing barriers to digital trade.”.
Ali Salman
CEO, IDEAS
MABC BYLINE 11