Supporting Partners

Overview of Digital Economy Development in ASEAN

Dato’ Sri President & Chief Executive Officer PEMANDU Associates, Overview of Digital Economy in ASEAN

Huawei Technologies Co., Ltd. Analog and digital economy need to work hand in hand

Huawei Technologies Co., Ltd. Digital revolution has brought many private benefits

Huawei Technologies Co., Ltd. Forty Key and Emerging Technologies for the Future

Huawei Technologies Co., Ltd. ASEAN: Young population, fast growth and emerging middle class

Huawei Technologies Co., Ltd. Significant growth in ASEAN: E-commerce

USD12 USD40 billion billion

2015 2025

Huawei Technologies Co., Ltd. Success story for E-commerce: Grab

Value Proposition Value Proposition

• A Malaysian startup launched as MyTeksi in 2012 Customers • To solve the problem of getting a taxi • Minimum waiting time • • Is now operating in 132 cities across 7 ASEAN countries Prices lesser than the normal taxi fares • Cashless ride • Over 1.8 mil drivers and more than 63 mil mobile • ETA and ride tracking is available on app downloads. • Controls 72% market share across private vehicles (cars Drivers and bikes) • Additional source of income • Raised ~USD 4 bil of funding through 7 investment • Flexible working schedules and can work part time rounds • Easy payment procedure • Drivers get paid to be online

Huawei Technologies Co., Ltd. Potential sector for ASEAN: Smart Data

• Ci Agri developed three modules that address farm and farmer productivity, using a two-part business model: • Subscription-based model (who, in turn, work with smallholders or contract farmers • Fee-for-service model used for credit-scoring for small ticket lenders to land-owners and farmers

• Successful pilot programme with 4,000 farmers in Lampung, South Sumatra, Indonesia

Huawei Technologies Co., Ltd. How can policymakers support growth?

Regulatory certainty – must have certainty of the use, privacy and security of data

Set an example – Government to make disaggregated data available to the private sector for better use

Build out Internet infrastructure – granting priority for private sectors to invest in internet infrastructure

Huawei Technologies Co., Ltd. We need more transformational leaders in the region to bring about digital economy in the fragmented market

3 Transformational Leadership Qualities

Huawei Technologies Co., Ltd. #1 Transformational Leaders who pursue the Game Of the Impossible

Huawei Technologies Co., Ltd. Prime Minister ’s impossible challenge

“How to secure USD300 billion private investment in 8 weeks?”

Huawei Technologies Co., Ltd. We conducted 12 labs with 500 participants over 8 weeks

EPPs 131 GNI USD406Billion USD 250 bil (2020) Jobs Private Investments (2011-2020) 3.3 mil (2011-2020)

*US-Ringgit Conversion Rate at the time of the lab, 1 USD = RM3.2

Huawei Technologies Co., Ltd. DFTZ as the Pathfinder to be a game changer for the digital revolution in Malaysia

“The Government will introduce the first Digital Free Zone in the world. It will merge physical and virtual zones, with additional online and digital services to facilitate international ecommerce and invigorate internet-based innovation.” Honourable Prime Minister Najib Razak Budget Speech 2017, October 21 2016

Vision Key Objectives

Enable Malaysian SMEs to DFTZ is the eCommerce window to the world for Export ASEAN SMEs and the preferred gateway of choice Position Malaysia as a regional for global brands and marketplaces into ASEAN hub for eCommerce logistics

• Double the growth rate of SME’s goods exports to US$38 Billion by 2025 • Create 60,000 jobs by 2025 • Facilitate US$ 65 Billion of goods movement by 2025

Huawei Technologies Co., Ltd. Source : MDEC #2 Transformational Leaders who are ruthless about prioritisation. They corral their people to focus on priorities

Huawei Technologies Co., Ltd. Journey of Jack Ma

Background • Born in Hangzhou, China, Jack learn English by giving free tour guide to foreigners around the city • In 1995, Jack, his wife and friend collected USD 20,000 and started an Internet company called “China Yellow Pages’ • Within 3 years, his company made USD800,000 • Sold his company in 1999, went back to Hangzhou and found Alibaba with 17 friends in his apartment • Ruthless on focusing in improving Alibaba – rejecting multisector conglomerate Results • Currently Alibaba ranked 6th in the largest internet company by revenue (USD15.69 bil) • Jack Ma’s net worth: USD47.8 bil

Huawei Technologies Co., Ltd. Omnipresence programme of police focused on 200 crime hotspots via police redeployment and CCTVs

Datuk Seri Zahid Hamidi and Datuk Seri Hishamuddin

Huawei Technologies Co., Ltd. Significant reduction in Crime Index

47% Reduction 209,817 In 6 years

112,354

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Huawei Technologies Co., Ltd. #3 Transformational Leaders who intervene through “discipline of action”

Huawei Technologies Co., Ltd. Broadband penetration in Malaysia

National Broadband Penetration Rate Per 100 Households

90 14.4% CAGR 81.5 81.8 80 74.2 70.2 66 67.1 70 62.3 60 55.6 50 40 31.7 30 21.1 20 15.2

Penetration rate per 100 HH (%) 10 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q12017

Huawei Technologies Co., Ltd. Source : MCMC Discipline of Action from Ministers of Communications and Multimedia

Tan Sri Dato’ Seri Utama Dato’ Sri Datuk Seri Panglima Dr. Rais bin Yatim (Minister from 2013 to 2015) (Minister from 2015 till present) (Minister from 2009 to 2013)

• Despite the fact there’s change in minister, they are still pursuing the same thing • 3 different ministers in 7 years but they still the same focus • Conduct the same Problem-Solving meeting, same Steering Committee meeting, same KPI targets

Huawei Technologies Co., Ltd. Exercises Discipline of Action: Story of Bill Gates

Background • Real name is William H. Gates III • Wrote 1st computer program in 8th grade • Registered for Harvard college in 1973 –SAT score: 1590 out of 1600 • Left Harvard in his junior year to devote his life to Microsoft – believed that the computer would soon be a valuable tool in every home • Created software for personal computers • Founder of Microsoft which focuses on software development Results • Currently Microsoft ranked 6th in the largest information technology company by revenue (USD85.3 bil) • Bill Gates’s net worth: USD89.6 bil

Huawei Technologies Co., Ltd. Thank you.

Copyright©2017 Huawei Technologies Co., Ltd. All Rights Reserved. The information in this document may contain predictive statements including, without limitation, statements regarding the future financial and operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided for reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice.

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