The Malaysia Digital Economy Corp (MDEC), a Malaysian government agency tasked to lead the digital transformation in the country, is eyeing MYR1 billion ($230 million) worth of digital investments from nine sectors by 2025, through its Malaysia Digital Catalytic Programs (Pemangkin).

MDEC said in a statement on Monday that the agency has identified these nine promoted sectors covering digital tourism, digital agriculture, digital cities, digital content, digital finance, digital trade, digital services, digital health, and Islamic digital economy.

According to the statement, these additional promoted sectors have been recognized to enhance digital readiness and competitiveness, as well as to drive innovation and collaboration among industry players.

“The MYR1 billion ($230 million) worth of investment opportunities are expected to be generated through these promoted sectors by 2025, led by the public-private sector and industry collaborations,

“We aim to achieve this through several strategic interventions,” said MDEC Chief Executive Officer Mahadhir Aziz.

According to him, from this year until 2025, the agency is making strategic investments into each of the promoted sectors via the allocated budget on digital economy to accelerate their growth and development.

Collectively, he said the government through MDEC has allocated a total of MYR238 million ($53.63 million) as public investment into these nine MD PEMANGKIN sectors.

“We are investing heavily on industry development such as digital infrastructure, education, and providing our workforce with the skills they need to succeed in the digital economy,” he said.

He also noted MYR45 million ($10.14 million) from the total investment will be used to enhance various technology enablers, such as blockchain, automation, artificial intelligence (AI), and more.

“While MYR50 million ($11.27 million) from the total investment will be distributed through our digital matching grants. All this will be done via our PEMANGKIN,” he said.

According to him, MDEC is actively addressing national problems through its strategic interventions and digital initiatives, and leveraging digital innovation to tackle challenges head-on and create positive societal impact.

He also said MDEC’s Funding Facilitation team is actively engaged in negotiations with key private stakeholders and investors, aiming to secure an impressive total funding value of up to MYR160 million ($36.06 million).

These efforts are being pursued through multiple collaborative initiatives as part of the dynamic DE Dagang campaign, which is co-funded by diverse private sectors encompassing tourism and craft, halal, agriculture, and exports, he added.

“Our PEMANGKIN, will attract foreign and local investments, creating high quality jobs, and fostering innovation and entrepreneurship. This contributes to the overall economic development of the country and elevating Malaysia’s position in the global digital economy landscape,” he said.

Recognizing that public-private partnerships are essential to harness the full potential of the digital economy, he said the agency is also actively engage with private sector partners, including corporations, venture capitalists, angel investors, and financial institutions, to co-invest in its digital initiatives.

“Through collaborative funding models, we are able to leverage private sector resources, expertise, and networks to amplify the impact of our digital programs and initiatives,” he said.

He also noted that these nine technology focus sectors have been identified as presenting high growth potential, opportunity, and importance in driving Malaysia’s next transformation in digital economy.

He said the PEMANGKIN for these nine promoted sectors are strategically led by local tech companies and foreign investors, with the goal of leveraging their expertise and resources to drive growth and innovation in Malaysia’s digital economy.

“MDEC strives to cultivate a collaborative ecosystem that empowers individuals and businesses to harness the vast potential of these promoted sectors, through concerted efforts involving both local and foreign stakeholders,” he said.

Cited Malaysia Digital Technology Trends and Outlook 2030 study by MDEC Research Team, he said these nine promoted sectors are growing exponentially on a global level.

“We want to seize the opportunities to enable individuals and businesses alike to leverage this immense potential within the nine promoted sectors to improve the economy in terms of wealth creation, industry to nurture innovation and productivity, as well as increasing the quality of life in society,” he said.

Launched last year, Malaysia Digital (MD) is a national strategic initiative by the Government to encourage and attract companies, talents and investment while enabling Malaysian businesses and Malaysians to play a leading part in the global digital economy.​

According to the statement, the Ministry of Communications and Digital through MDEC will continue to introduce and roll out new PEMANGKIN programs in its bid to establish Malaysia as the digital hub of choice in ASEAN as well as to catalyze further opportunities for all, in line with Malaysia MADANI concept.

MDEC has successfully rolled out two initial PEMANGKIN programs including DE Rantau and Digital Trade.

DE Rantau is a program that aims to establish Malaysia as the preferred Digital Nomad Hub in a bid to boost digital adoption and to promote digital professional mobility and tourism in Kuala Lumpur, Langkawi, Penang, and several other locations in Malaysia.

Digital Trade is a program that promotes interoperability and greater harmonization of standards and regulatory approaches as well as facilitated trade within and across borders.

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