MSC Malaysia Phase 3
DIGITAL MALAYSIA
Perdana Leadership Foundation 2012
“The Global Economic Outlook & New Growth Drivers for Malaysia 2012 And Beyond”
September 19, 2012
Datuk Badlisham Ghazali
CEO, Multimedia Development Corporation
GLOBAL DIGITAL ECONOMY
• Globally, Digital Economy
contributed 35% to Global Trade
(US$17 Trillion) in 2009
• Global eCommerce revenues will hit
US$3.8 trillion by 2020
• By 2016, 3 billion consumers, or 45
percent of the world’s population,
will use the Internet.
• Worldwide m-commerce stands at
US$1.5 trillion in revenue
Source:
1. ABI Research, February 2010
2. WITSA Analysis
3. PWC, 2011
4. The Internet Economy: 25 years after .com, ITIF March 2010,
MALAYSIA – THE CURRENT STATE
62%
broadband household
penetration rate
as of Q2 2011
ICT sector 9.8% of GDP
Internet contributed 4.1%
(RM30b) of GDP in 20102.
17.8 mil Internet user
penetration rate
as of Q2 2011
M-commerce
RM467mil in
2011
Mobile penetration rate is
128.7% in 2011
e-Commerce RM1.97
billion in 20111
Over 3,000
ICT companies in Malaysia
39.1% (11.2 mil)
Facebook users, 2011
Twitter: 303,198, 2011
10,000
115
2,598
1,247 online services
schools with wireless
connection by 2013
wireless villages as of April
2011 and 3,100 by 2012
Broadband Community
Centres as of Q1, 2011
available via
myGovernment portal
Sources: MDeC, IMD, World Bank, United Nations, The Economist, ITU Malaysia Internet and e-Commerce2010-2014 Forecast and Analysis, IDC June 2010; SocialBakers, Projected by Twitter, Inc.
MALAYSIAN SME ICT LANDSCAPE
•
SMEs constitute 99.2% (548,267)of
total business establishments in
Malaysia.
•
Only 20% of SMEs use IT extensively in
daily operations.
•
SMEs contribute 32% of GDP and 19%
of exports.
•
Only 100,000 Malaysian SME have
website
Source: SME Master 2012 - 2020
REGIONAL ICT INDUSTRY COMPARISON
ICT industry
contribution to GDP
Malaysia
Korea
Singapore
Overall
9.8%
17%
10%
Telco
3.3%
-
4.3%
Hardware
5.7%
4.3%
-
Software & services
0.8%
6.7%
(IT Services)
6.0 %
(Software)
3.7 %
(IT Services)
2%
(Others)
WHERE IS MALAYSIA – A GLOBAL SNAPSHOT
BCG e-intensity score
200
South Korea
Denmark
Sweden
Natives
United Kingdom
Iceland
Japan
150
Nascent Natives
Switzerland
Singapore
Belgium
Canada
New Zealand
Czech Republic
Portugal
Estonia
Poland
Hungary
Turkey Russia
Slovakia
Brazil
Malaysia
Saudi Arabia
Chile
50
China
Morocco
Austria
Spain
Norway
Luxembourg
Germany
France
Slovenia
Players
Finland
United States
Hong Kong
100
Netherlands
Australia
Ireland
United Arab Emirates
Israel
Italy
Laggards
Greece
Mexico
South Africa
India
Egypt
Indonesia
0
0
20
40
60
80
Per-capitaGDP (2010)
Sources: Economist Intelligence Unit; IIMF, International Telecommunication Union; speedtest.net; Gartner; Ovum; World Bank; Pyramid; United Nations; World Economic Forum; ComScore; Magna
Global; Euromonitor; BCG analysis.
Note: Several countries imputed due to lack of available data, R2=0.8032
WHAT MALAYSIA NEEDS TO DO?
Utilise Digital Technology to:
1
Create new sources of income/ revenue
2
Enhance productivity of government, businesses and
citizens
3
Create participatory opportunities
4
Encourage innovation in domestic companies
5
Enable global market expansion
DIGITAL MALAYSIA
Digital Malaysia is a national programme to advance the country
towards a developed digital economy by 2020.
It will create an ecosystem that promotes the pervasive use of Digital
Technology in all aspects of the economy to connect communities
globally and interact in real time resulting in increased GNI, enhanced
productivity and improved standards of living.
DIGITAL MALAYSIA – THE BUILDING BLOCKS
PROJECTED GNI BY BLOCK
Digital Malaysia contribution to GNI (RM Bn)
294
300
New Digital Malaysia Initiatives
75
75
200
219
126
100
93
0
Existing ICT
Initiatives today
~12.5% of GNI
ICT Initiatives in
GTP & ETP
New DM initiatives on
ICT
~4.5% of GNI
2020 Total target
~17% of GNI
Proportion of contribution of ICT and e-Commerce initiatives may vary,
as long as total additional GNI contribution achieves target
Note: assuming 0.192 contribution to revenue ratio of e-Commerce, based on comparison of ICT revenue versus GDP contribution, representing only the digital
steps in the value chain and not the analogue steps; percentages based on 1733 GNI target in 2020
DIGITAL MALAYSIA - GOALS
Measures of Outcomes
MALAYSIA
2010
MALAYSIA
2020
ICT contribution to GDP (2010)1
9.8%
17%2
Digital economy rankings 2010
Economist Intelligence Unit
(Rank out of 70 nations)
#36
Top 20
IMD World competitiveness
scoreboard 2011
(Rank out of 59 nations)
#16
Top 10
1.
Malaysia Stats : RM10 K Plan, EPU
2. Figure denotes contribution to GNI in 2020 and it includes e-Commerce & ICT
3 STRATEGIC THRUSTS
Reallocate resources to more
SUPPLY TO DEMAND
demand-focused programmes and
activities
Strategic
Thrust 1
CONSUMPTION TO
PRODUCTION
Change the way people behave
to produce as they consume
Strategic
Thrust 2
LOW
KNOWLEDGE-ADD TO
HIGH
KNOWLEDGE-ADD
Strategic
Thrust 3
Enhance competitiveness
by focusing on knowledge added activities
ICT SATELLITE ACCOUNT
To map, measure and give holistic picture of Malaysia’s
Digital Economy progress, a singular account to capture data
and statistics on ICT activities across all sectors in the country
is necessary
1. Classification of sectors and products in ICTSA follows
the OECD Guide to Measuring the Information Society
2011 which is based on ISIC and CPC
2. Demand side : 44 newly proposed Demand indicators –
Key components comprise household, individuals,
business, government and e-commerce
3. Supply Side : 41 newly proposed indicators – Key
components comprise infra, e-commerce, R&D,
funding/risk capital, regulatory and human capital
THANK YOU