2020 Budget: A boost for Malaysia’s tech industry
The 2020 budget indicates that the local technology industry continues to receive widespread government attention. Its purpose is to further enhance the capabilities of local SMEs and start-ups, enhance digital content, embrace digitalization, enhance e-commerce and adopt 5G technologies.
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Local technology players, industry associations and technology agencies generally praise the various grants made to make Malaysia a stronger player and competitor in the technology sector at home and abroad.
The association (Pikom) representing the Malaysian information and communications technology (ICT) industry said that the budget proposes a variety of short-, medium- and long-term goals from a realistic perspective and paves the way for the Vision for Common Prosperity 2030 (WKB2030).
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The chairman of the association, Ganesh Kumar Bangah, said the association is pleased to see that there are special incentives for startups to enter the world market.
“At the same time, there are special investment plans to attract global unicorns to invest, which will greatly help our local participants to become unicorns one day. As the world moves to a more digital application environment, especially in all aspects of life 5G applications, especially the Ministry of Technology, will oversee the incentive policies, the growth of SMEs and provide the necessary upgrade platforms, “he said.
Ganesh added that attention to human capital development in the Fourth Industrial Revolution (IR4.0) was widely welcomed.
“The skills training through HRDF and funding for STEM education are very welcome. Piccom also appreciates the various entrepreneurship programs introduced, including those for micro-digital businesses and coaching and growth programs that will become start-ups Catalyst for further growth. “
The e-wallet incentive proposal is a gospel that will have a transformative impact on creating a cashless society.
The 2020 budget also shows that the government is actively encouraging more local businesses to quickly enter the technology sector.
Surin Shukri, CEO of Malaysia Digital Economy Corporation (MDEC), said that all grants will enhance the digital economy initiative advocated by MDEC and will directly support the recently launched WKB2030.
“Malaysia’s digital transformation agenda remains the main driver of the country’s economy. We are encouraged that the 2020 Budget contains proposals that will further accelerate Malaysia’s rapidly maturing digital economy.”
Surina said a new plan called 100 Go Digital has been launched to enable traditional Malaysian businesses to embrace digitalization. This will enable local businesses to take full advantage of digital transformation to address their common pain points.
She said that under the budget allocation, MDEC will also continue to manage and improve its Digital Transformation Acceleration Program (DTAP).
“We are also pleased to note the allocation of RM70 million to establish 14 one-stop Digital Enhancement Centres (DEC). This initiative will strengthen the United States’ position as a technology and digital hub in the region as it will promote businesses, especially Financing and capacity building for small and medium enterprises (SMEs). “