KUALA LUMPUR, Oct 9 — Malaysia is on track to capture a significant portion of the global digital market as the local digital economy is set to contribute 25.5 per cent to the gross domestic product (GDP) by the end of 2025, said Digital Minister Gobind Singh Deo.
Citing research company Forrester, Gobind said the global digital economy is expected to hit US$16.5 trillion by 2028.
“We were at 23.5 per cent of GDP last year. Moving ahead to next year, Prime Minister Datuk Seri Anwar Ibrahim has said we must strive to reach 25.5 per cent.
“From what we have seen in the last eight months, I am confident we will not only achieve that target, but surpass it,” he said in his speech at the Malaysia-India Business Council (MIBC) annual dinner here today.
The minister said the optimism is due to a series of investments from tech giants, including AWS, Intel, Google, ByteDance, Nvidia, Meta and Oracle, among others.
“These and many other companies are pouring in billions of US dollars to start or expand their businesses here, mainly in the data centre and semiconductor industries.
“International investors have faith and confidence in Malaysia due to our business-friendly policies, stable government, good infrastructure and strategic location,” he said.
To further boost Malaysia’s digital economy and enhance its spillover effect, the ministry is focusing on three key pillars, namely helping to build infrastructure, creating digital resilience, and developing talents.
These are required to position Malaysia as a premier digital hub in the region, said Gobind.
“But we cannot do this alone. And India, being a giant in the tech sector, will be one of the best partners to assist us in our mission.
“Our governments exchanged eight memoranda of understanding to further strengthen our working relationship in various areas, including in the field of digital technologies,” he said.
In addition, Gobind said MIBC is well placed to assist and facilitate any organisation wanting to collaborate with Indian or India-based companies.
These partnerships are key, allowing Malaysian companies to gain access to India’s massive market, said Gobind.
Malaysia, meanwhile, could serve as India’s gateway to Southeast Asia, seeing as Malaysia will assume the Asean chair next year, he added.
— Bernama
