Byline High Res

I FEATURE
There are two key components of digital trade which are already creating
economic value to Malaysia today, and have the potential to grow further
Sources
of value
Impact
Current value
(2017)
Future value
(2030)
Total economic value
from digital trade
1
2
Value at
home
Value
from
abroad
Creation of economic
value for the domestic
economy by supporting
adoption of digital
technologies, including
in traditional sectors
(e.g. agriculture,
infrastructure)
The export value of
digitally-enabled
goods (e.g. e-
commerce, apps) and
services (e.g. digital
infrastructure
services, online video
advertising)
Digital trade
enables up to
RM 24
billion of
economic value
in the domestic
economy
If digital were a
sector, it would be
Malaysia’s 6 th
largest export
sector at
RM 31 billion
Potential for
digital trade
could enable up
to RM 222
billion of
economic value
by 2030
Potential for digital
exports to grow by
298% to be
worth
RM 122
billion by 2030
Policymakers in Malaysia and across the Asia Pacific are developing regulations for the digital economy. While Malaysia
has made some promising commitments to facilitate digital trade such as the establishment of the Digital Free Trade Zone,
other moves such as the country’s limited GATS commitments on basic telecommunication services and strict licensing
requirements in the sector could undermine its ability to capture the digital opportunity. There is the opportunity for Malaysia
to play a leading role, not only at home, but also abroad when negotiating bilateral and multilateral trade agreements, in
driving the development of digital trade rules that will enable the country to capture the digital dividend.
For more information about the digital trade project and to download existing reports, visit Hinrich Foundation’s website at
https://hinrichfoundation.com/trade-research/digital-trade-project/.
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