The Malaysia Digital Economy Corp (MDEC) announced that it is targeting RM1 billion in investment opportunities from nine sectors by 2025, through its Malaysia Digital Catalytic Programs (Pemangkin).

The nine sectors are Digital Tourism, Digital Content, Digital Finance, Digital Health, Digital Cities, Digital Services, Digital Agriculture, Digital Trade, and the Islamic Digital Economy.

MDEC Chief Executive Officer, Mahadhir Aziz, said on Monday (April 17) here that the sectors were identified based on their potential for exports and having the right ecosystem.

“MDEC believes and is committed to fostering growth through strategic interventions, collaborative efforts and seizing opportunities for individuals and businesses alike leveraging on the nine sectors.”

He added that the government has provided RM 192.9 million in total investment to the sectors under the budget for the digital economy through MDEC from 2023 to 2025.

“We are investing heavily in digital infrastructure, education, and providing our workforces with the skills they need to succeed in the digital economy.”

The investments consist of RM 143 million in public investment, in addition to RM 45 million from tech enablers and RM 4.9 million in grants. Other investment opportunities will come from private sector – led investments and collaborations.

The highest allocation is for the Digital Trade sector with RM 35 million, followed by Digital Agriculture (RM 30 million), Digital Content (RM 25 million), and Digital Services (RM 7 million).

Allocations for Digital Health and Digital Cities are similar at RM 16 million, while for both Digital Finance and Islamic Digital Finance, RM 1.8 million is allocated.

Meanwhile, Communications and Digital Minister, Fahmi Fadzil, said the digital economy is expected to create 500,000 jobs, and contribute 25.5% of gross domestic product by 2025.

“I believe this is just the first phase; there’s more good news to come,” he said on future Pemangkin programs, including several more grants to be announced in May.

“We are confident that more of these Pemangkin programs will be a catalyst to equip the nation’s workforce with digital skills, spurring innovations.  These identified sectors will be critical drivers of innovation, competition and growth, and this will help usher Malaysia’s golden digital decade,” he added.

In July 2022, MDEC launched two Pemangkin programs, namely Digital Tourism through DE Rantau and Digital Trade under the Malaysia Digital framework.

Mahadhir said that DE Rantau is expected to inject RM 4.8 billion into the economy by 2025, and has received over 2,000 digital nomad applications since Oct 1, 2022.

To date, MDEC has onboarded 446 digital nomads, and has established 844 DE Rantau hubs in Penang, Langkawi, Kuala Lumpur and Melaka, he said.

Edited by Lam Jian Wyn
– The Edge Markets