Local businesses must embrace digital innovation to raise productivity: MDEC

“Local businesses need to step up their game in embracing digital innovation to be more productive in today’s digital economy” said Datuk Yasmin Mahmood, Chief executive officer, Malaysia Digital Economy Corporation (MDEC). A recent research showed that only 60 per cent of local companies are at the “digital explorer” stage. “What this means is that although companies do understand and realise the importance of digital transformation, it is still being done at the fringes,” she said. (The Business Times)

“It’s not been embedded into the overall strategy of the business model.” “Companies should start looking at technology as an investment for growth — and not a cost,” she added. Yasmin, regarded by the industry as one of the world’s thought leaders in the field of ICT (information, communications and technology), was speaking to Business Times on the sidelines of the World Economic Forum (ASEAN) being held in Kuala Lumpur today and tomorrow.

She added that today’s digital economy cuts across two enabling components and two more catalytic components. “Government and policies play an important role; however, I firmly believe that digital innovation and the fourth industrial revolution happening today is really going to be driven by the business and primarily driven by the millennials. “The two enabling policies that governments across the region, across the world, have to really put emphasis on is around: ‘How do we leverage on the fact that 40 per cent of the ASEAN population is below 30 years of age?’,” she said. “That is unique. We don’t have an ageing population to be disrupted. There will be to some extent, but by and large the younger population would be the ones that would be creating these innovations and what we have to do is really make sure that the government’s policy is about producing the talent workforce to participate in this innovation economy,” she added. “When you talk about talent the most important part of it is to look at the grassroots level and schools.”

“One of things we’re trying to do in Malaysia is to introduce coding and computer science in schools,” she emphasised. “We had piloted it last year, it’s happening this year and will be ongoing for the coming years. It is going to be executed and embedded as part of the curriculum.” Yasmin said that, as a country, Malaysia continues to have many amazing success stories early, of “kids who are just embracing this.” “We have people who are digital natives but they are mostly now digital consumers. What we have to do now is ensure that they are turned into digital producers as opposed to just consumers. The policy framework needs to be in place to allow that to be executed,” she elaborated.

Under Yasmin’s leadership, MDEC registered a growth of 56 per cent in Approved Investments and Foreign Direct Investments in 2015. Total investment inflow from MSC Malaysia companies reached RM 19.8 billion last year; and MDEC recorded its highest increase in new investments since its establishment twenty years ago. “2015 was a significant year for us,” she said. “New investments inflow reached a 20-year record high and for the first time ever, export sales for MSC Malaysia exceeded our expectations. MSC Malaysia’s performance and growth is testament to the progress we are making in executing our Digital Economy strategy as well as boosting investors’ confidence and faith in our local ICT industry.”

Export sales were the highest in 10 years. Export sales from MSC Malaysia companies contributed RM16.2 billion from RM13.7 billion in 2014, an 18 per cent increase. “Local MSC Malaysia companies showed promising growth in 2015, as export sales increased by 9 per cent,” added Yasmin. “We are proud to share that MSC Malaysia recorded the highest increase in overall export sales since 2010.” Industry leaders throughout the world continue to prais e Malaysia for its efforts in the ICT sector to play a bigger role in contributing to the country’s GDP. For example, Frost and Sullivan’s Silicon Valley based global president Aroop Zutshi said recently said that he was very impressed with the progress Malaysia has made in the ICT sector. He attributes one of Malaysia’s progress to efforts made by the Malaysian Digital Economy Corporation (MDEC), a government agency which he described as “forward-looking in innovation and technology”