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TECHNOLOGY adoption and innovation are fundamental enabling factors that will catalyse growth across all sectors.
This year, the government has announced the Malaysia Digital Economy Blueprint (MYDigital) and 12th Malaysia Plan which both emphasise the importance on nurturing small and medium-sized enterprises (SMEs) and micro-entrepreneurs on eCommerce platforms and promoting cross border trade.
With Budget 2022 scheduled to be tabled, I would like to offer some of my suggestions, specifically in area of cross border trade and investing into our local SMEs that can further boost existing momentum to make the digital economy contribute 25.5% to the country’s gross domestic product (GDP) by 2025.
Capacity building for SMEs
SMEs contribute a solid 38.2% of our national GDP with a value added of RM512.8bil.
Ninety eight per cent of employers registered with the Employees Provident Fund are SMEs highlighting their importance in job creation and opportunities to Malaysia.
Last year, we have seen how retailers take their businesses online to mitigate the impact of the pandemic.
Government programmes, which have been spearheaded by MDEC, such as Go-eCommerce, eUsahawan, and Penjana have proven to be effective in supporting entrepreneurs expand their business digitally.
As such, we hope to see these programmes be continued nationwide to reach more entrepreneurs.
Riding the success of these programmes, it is an opportune time to help the digitally trained entrepreneurs scale their business by tapping into the global markets.
These programmes must be in a short-term incubator format where platform experts will hand hold these entrepreneurs to grow their export and eCommerce capabilities until they are confident enough to manage on their own.
It will also be essential for Budget 2022 to include dedicated development funds in helping realise the upcoming National eCommerce Strategic Roadmap 2.0 (2021-2025) to enable trade partners to seamlessly transact using digital mechanisms.
The national MSMEs digitalisation roadmap to drive digitalisation efforts will play an equally important role in strengthening frameworks for MSMEs digitalisation process through, inter alia, Digital On-Boarding for Micro Businesses (DigitalNiaga), Digital Transformation Acceleration Programme (DTAP), and Warongku initiatives.
Increase market access for Made in Malaysia products
There is a sizeable potential in Malaysia’s furniture industry. In 2019, the furniture sector value stood at RM9.14bil and RM10.63bil in 2020.
It is projected to rise to more than RM13bil by year end.
This is reflected on eBay’s platform as well where Malaysia is recognised as one of the key manufacturing hubs for furniture product categories, which have predominantly been exported to United States, United Kingdom, Germany, and Australia.