KUALA LUMPUR: Malaysia’s digital exports can increase to RM222 billion to the economy by 2030 from the current RM31 billion in the absence of digital trade barriers.
AlphaBeta Singapore engagement manager Dr Konstantine Matthies said works done by Malaysia on digital economy has been very encouraging, especially in the setting up of a right organisation managing the sector.
He added that the country has been very active in integrating small and medium enterprises into the digital economy and encouraging digital adoption under the Malaysia Digital Economy Corporation.
“The other thing is really making sure not to rush into regulations that may have a detrimental effect on digital trade.
“Often, it is not so much the type of regulations but rather around the certainty of regulations, making the policy very transparent,” he told reporters at the launch of a report titled Data Revolution: How Malaysia Can Capture The Digital Trade Opportunity at Home and Abroad yesterday.
Matthies pointed out that haphazard formulation of policy in digital economy could be interpreted in many ways and it could send a signal of uncertainties to the investors.
The report was launched jointly by the Hinrich Foundation, the Institute for Democracy and Economic Affairs, the Malaysia Australia Business Council and AlphaBeta, which estimates the current and potential future economic values of digital trade to the Malaysian economy.
According to the report, digital trade enables Malaysian firms to reduce the cost of storing data, improves business practices, generates richer business insights and enters new markets, while facilitating more efficient management of global supply chains.
It reveals that digital trade could have a huge impact on the country’s domestic economy, with some of then biggest beneficiaries coming from outside the digital sector.
To maximise future returns from digital trade, digital trade barriers at home and abroad need to be reduced, added the report.
It outlines actions in four main areas that can help achieve this, namely ensuring open cross-border data flows, formulating innovation-oriented approaches to copyright and intermediary liability regulations, minimising border frictions, and encouraging digital adoption. — Bernama