KUALA LUMPUR:The strong emphasis on digital connectivity in Budget 2021 is extremely crucial in elevating national competitiveness, as information and communications technology (ICT) continues to transform the value creation process while fostering local innovation.
In a statement, Malaysia Internet Exchange (MyIX) chairman Chiew Kok Hin said in today's digital economy, technology has disrupted the old equilibrium and energised innovation, entrepreneurship and new business models.
“Hence, numerous industries have capitalised on latest technologies to transform their operations and value creation processes -- from product development to production, supply to sales and service.
“Digital connectivity is the ‘bridge’ to elevate Malaysia’s national competitiveness, and it is very encouraging that the government fully appreciates this reality,” said Chiew.
In tabling Budget 2021 last Friday, Finance Minister Tengku Datuk Seri Zafrul Aziz announced several measures for the digital economy, including the allocation of RM7.4 billion for the Malaysian Communications and Multimedia Commission (MCMC) to increase broadband services in 2021 and 2022.
Meanwhile, telcos are expected to provide RM1.5 billion worth of free internet data and the government will also allocate RM500 million to implement the National Digital Network (Jendela) initiative in 2021.
The Jendela initiative is aimed at laying the foundation as well as preparing the country for the transition towards 5G technologies.
Chiew said 5G technologies would open up many possibilities, for example, increasing automation development in industries such as healthcare, manufacturing, banking and agriculture.
He added that local businesses should continue prioritising upskilling and creating a ‘digital first’ workforce.
As for job creation within Budget 2021, the government has announced a RM50 million allocation for retraining programmes for 8,000 airline staff, and a RM100 million grant for non-government organisations involved in job creation, to be matched with a RM100 million grant from government-linked companies.
“Due to rising demand for digital tools and processes, there is an urgent need for people to upskill themselves with knowledge of digital technologies, digital literacy and transferable skills,” said Chiew.
Digital transformation is another priority area for the budget, where RM1 billion would be set aside for digital transformation schemes, coupled with RM150 million in grants for the digitalisation and automatisation of small and medium-sized enterprises (SMEs) and nearly RM1.2 billion for microcredit schemes.
The government also announced RM10 billion for Syarikat Jaminan Pembiayaan Perniagaan Bhd and RM2.5 billion for G1 to G4 contractors for small and medium projects nationwide, with Majlis Amanah Rakyat (MARA) to provide RM50 million in funding scheme for Bumiputera contractors.
“Digital transformation is an ongoing journey for businesses to realise greater productivity and operation efficiencies.
“It is critical to fast-track innovation while enabling businesses to be more agile, more so within today's 'new norm'. MyIX will play its critical role to foster direct connectivity among internet providers so that end-users benefit from improved internet flow,” he added.
MyIX, an initiative under MCMC, was established to keep Malaysian internet traffic local by promoting and allowing direct connectivity among local internet service providers (ISPs), content distribution networks (CDNs) and other industry enterprises.
To-date, it is Malaysia’s only industry-operated non-profit national internet exchange body.
-- BERNAMA
Bernama
Fri Nov 13 2020
![MyIX: Emphasis on digital connectivity in Budget 2021 crucial MyIX: Emphasis on digital connectivity in Budget 2021 crucial](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2020-06/61593500728_DIGITALCONTENT.jpg)
"Digital connectivity is the bridge to elevate Malaysia's national competitiveness, and it is very encouraging that the government fully appreciates this reality," said Chiew. - unsplash
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