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Championing Malaysia's Digital Economy

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Championing Malaysia's Digital Economy Championing Malaysia’s Digital Economy: A Case Study Aiza Zeyati Mohamed Zamani Head, Corporate Planning Corporate Strategy Malaysia Digital Economy Corporation (MDEC) 7 JULY 2019 2 Connecting businesses and people to their digital future. We help to build a vibrant digital economy in Malaysia We are driven by the promise that attracts companies, talent and that technology and innovation investment while enabling Malaysian have to transform the future of businesses to play a leading part in the our nation and the world. global digital revolution. Malaysia Digital Economy Corporation Table of Contents 3 1. No Ordinary Disruption: Outlook on Global Digital Scenario 2. Shaping Malaysia’s Digital Economy 3. Challenges Malaysia Digital Economy Corporation Table of Contents 4 1. No Ordinary Disruption: Outlook on Global Digital Scenario 2. Shaping Malaysia’s Digital Economy 3. Challenges Malaysia Digital Economy Corporation INDUSTRIALISATION AN AGING WORLD AND URBANISATION 5 IN EMERGING . Fertility rates have been ECONOMIES declining… . …leading to a rapid aging . Population of cities rising by of the population, 65 million per year, every specifically in many year advanced economies and . The economic centre of in China gravity is shifting east and south DISRUPTIVE GREATER GLOBAL TECHNOLOGIES INTERCONNECTIONS . Global flows of trade, . Technological capital and people are breakthroughs are speeding expanding and becoming up… more interconnected . …and the rate of adoption . Increased interconnectivity is also accelerating means specific events has Malaysia Digital Economy Corporation much broader impact Source: No Ordinary Disruption, MGI 6 Malaysia Digital Economy Corporation 1994 7 • The term Digital Economy was first coined • One of first books to show how the Internet would change the way we do business. Digital Economy refers to an economy that is based on digital technologies. The digital economy is also sometimes called the Internet Economy, the New Economy, or Web Economy. Increasingly, the "digital economy" is intertwined with the traditional economy making a clear delineation harder. Malaysia Digital Economy Corporation 1. Facebook (2.23B active users) 8 2. YouTube (1.90B active users) 3. WhatsApp (1.50B active users) Nations Living 4. China (1.41B) Virtually 5. India (1.35B) 6. Facebook Messenger (1.30B As of October 2018 active users) 7. WeChat (1.05B active users) 8. United States (327M) 9. Indonesia (267M) Malaysia Digital Economy Corporation 10. Brazil (210M) 75 years 38 years 13 years 4 years . It took about 75 years for the telephone to connect 3.5 years Reaching 50 million people 50 Million . Today a simple app can 88 days reach that milestone in a Users matter of days 35 days 19 days 12.2M 3.7M 2.3M Emails Sent WhatsApp Messages Facebook Likes Sent 352,915 311,150 41,667 Youtube Videos Google Searches Apps Downloaded Viewed Seconds 38,685 13,695 5,416 Tweets Sent Skype Calls Instagram Photos Uploaded Today, there are 4.1 Billion People Online 11 The World Today is No Longer as We Know It Digital Is Changing The Way We Live Malaysia Digital Economy Corporation The world’s most valuable resource is no longer 12 oil, but data 2020 40ZB IDC projects that the Digital Universe will reach 40 ZB by 2020, an amount that exceeds previous forecasts by 5 ZBs. Malaysia Digital Economy Corporation 13 ARTIFICIAL INTELLIGENCE Malaysia Digital Economyis Corporation becoming mainstream reality 14 A HYPERCONNECTED WORLD Data & The Internet Of Analytics Things Biotechnology Materials Autonomous Nanotechnology Science Vehicles Cloud Artificial Robotics Intelligence 3-D Energy Printing Quantum Storage Computing E-Commerce Source:Malaysia WEF Digital Economy Corporation 15 Digital is Changing The Way We Do Business Malaysia Digital Economy Corporation 16 World’s largest World’s largest World’s largest World’s most Taxi company Accommodation provider Phone companies Valuable retailer Owns NO Owns NO Owns NO Owns NO Real Taxis Telco Inventory Estate Infra Most popular World’s fastest World’s largest World’s largest Media owner Growing bank Movie house Software vendors Owns NO Owns NO Owns NO Owns NO Actual Content Cinemas Apps Money Malaysia Digital Economy Corporation Companies that Do Not Future Proof will Face 17 Significant Challenges to Stay Relevant 21 retailers are closing 3,591 stores … who is next ? “Toys R Us faces formidable competition from Amazon, which has become a leader in books, toys and diapers.” Forbes and many more… Sources:Malaysia 1. Forbes Digital (20 Economy Mar 2017) Corporation 2. Business Insider (6 Sep 2017) 18 The Story of KODAK Malaysia Digital Economy Corporation KODAK’s Downfall Wasn’t About Technology 19 Their failure is usually an inability to truly embrace the new business models the disruptive change opens up. Kodak created a digital camera in 1975, invested in the technology, and even understood that photos would be shared online. Where they failed was in realising that online photo Kodak was founded by George sharing was the new business, not just a way to expand Eastman and Henry A. Strong on the printing business. September 4, 1888. Source : Harvard Business Review • What capabilities do we need to realise these opportunities? • What business are we in today? Malaysia Digital Economy Corporation • What new opportunities does the disruption open up? 20 Digital is Shaping the Future of Work Malaysia Digital Economy Corporation 21 65% of Children in Tele-Surgeon Schools Today Will Big Data Doctor End Up Working in Robot Counselor Completely New Drone Traffic Optimiser Job Types That Don’t Cryptocurrency Banker Yet Exist Virtual Habitat Designer Future of Jobs Report, World Economic Forum 2016 AI/Machine Learning Researcher Source: Fast Company, futuristspeaker.com, careeraddict.com, Microsoft Make What’s Next Career Explorer Portal Malaysia Digital Economy Corporation Table of Contents 22 1. No Ordinary Disruption: Outlook on Global Digital Scenario 2. Shaping Malaysia’s Digital Economy 3. Challenges Malaysia Digital Economy Corporation 23 25.08 mil (79% penetration) M A L A Y S I A Active Internet Users 24 mil (75% penetration) Population 32.4 mil (DOSM est. 2018) Active Social Media Users 43.43 mil (143% penetration) Mobile Users Source:Digital in 2018 in Southeast Asia, We Are Social, 2018 >18 million users 80 minutes per day >3.5 million users >930,000 driver-partners by 60% more friends than 2x global average Ranked 4th in Asia Pacific, end of 2017 global average behind ID, IN& the PH Achieved within 5 years Malaysia Digital Economy Corporation 24 Engine of growth for the K-Economy Innovation Driven Transformation of Malaysia to Knowledge- Driven Economy 1960 1970 1980 1990 1995 2000 2010 2020 Malaysia Digital Economy Corporation Source : National Economic Action Council, Malaysia 5 The Beginning: Multimedia Super Corridor as the 25 Next Engine of Growth for Malaysia Malaysia Digital Economy Corporation Digital2017 DIGITALEconomy ECONOMY Contributed CONTRIBUTION 18.3% to TO Malaysia’s GDP: SIGNIFICANT PORTIONEconomy OF MALAYSIAN in 2017 ECONOMY Digital Economy Digital Economy GDP growth 10.3% outpaced national GDP growth ICT Industry Digital Economy1 of 9.9% (ICT Services, ICT Manufacturing, YoY Growth ICT Trade, Content & Media) 12.0% 18.3% Productivity At RM163.2k GVA per RM161.3B RM247.1B 1.7X employee, it was 1.7x higher GVA/employee than national productivity average (YoY 6.4%) eCommerce e-Commerce e-Commerce gross value added 6.3% 14.3% to the national economy RM85.8B sustained at RM85.8B 2017 National GDP YoY Growth RM1,353.4B 2 ICT Industry Exports ICT industry exports stood at 22.4% RM265.1B, whilst national exports grew by 15.8%. YoY Growth 2020 Target3 Employment 18.2% Employment in ICT industry stood at (RM324.9B) 1.9% 1.092m and share of ICT to total employment is 7.6% YoY Growth Source: 1ICTSA 2017, DOSM; MDEC 2Annual GDP 2010-2017 Tables, DOSM;3 RMK-11 ICT Industry, EPU Analysis; 27 “DIGITAL MALAYSIA AS THE NATIONAL DIGITAL TRANSFORMATION INITIATIVE” Driving Building Catalysing Propagating Investment Local Digital Digital Tech Innovation Inclusivity Champions Ecosystems MDEC Focus Pillars Malaysia Digital Economy Corporation 28 DRIVING INVESTMENTS Attract foreign direct investments into the country through the MSC Malaysia status offering as well as its robust and progressive technology ecosystem Malaysia Digital Economy Corporation 29 BUILDING LOCAL TECH CHAMPIONS Identify and accelerate Malaysian tech champions by ‘future-proofing’ their businesses through the development & adoption of disruptive technologies Malaysia Digital Economy Corporation “Grow Fast, Go Global” Programme for Tech Scale-Ups GAIN (GLOBAL ACCELERATION & INNOVATION NETWORK) MARKET MENTOR VISIBILITY MONEY Venturing into Enhancing Elevating Accessing regional & leadership brand, product scale-up capital global market capabilities and services & funding GLOBAL TECH ICONS CAPITAL EXPORTS REVENUES FOOTPRINT Malaysian Animation IP has Reached Global Level 31 in creating & production quality >20 RM132Mil >120 Home-grown IP Export Value in 2017 Countries penetrated Upin & Ipin Origanimals Chuck Chicken Ejen Ali Kuku Harajuku Boing Mask Masters Okolele Les Copaque Giggle Garage Animasia Wau Animation Vision Animation Giggle Garage Mirayi Metal Brain Seafood BoboiboyBoboiboy Harry & Bunnie Supa Strikas Didi & Friends Rimba Racer Hogie the Ummi Exagon Animonsta Animasia Animasia Digital Durian Silver-ant Glue Studio Hud-hud mEDIA MCube MalaysiaAnimonsta Digital Economy Corporation Globehopper Lil Critter 32 CATALYSING
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