Malaysia pledges to lead digital economy in SEA, says minister

The Digital Ministry is reportedly striving towards the Malaysian government's goal to place the country as the leader in Southeast Asia's (SEA) digital economy. 

During his visit to the Arulmigu Balathandayuthapani temple for the Thaipusam celebration on Tuesday (Feb 11), Minister Gobind Singh Deo reportedly said measures in place to make this happen include expanding broadband coverage, enhancing digital skills and promoting innovation in the technology area. 

According to Bernama, Singh Deo stated that he is confident Malaysia can achieve their goal with the collaboration of stakeholders, while ensuring that no one is left behind. He reportedly added that Malaysia will become a larger competitor in the growing digital economy by equipping the public with the necessary knowledge and skills. 

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Moreover, Singh Deo reportedly said Malaysia's unity showcased by the country's multiracial society is one of its integral strengths, highlighting the importance of maintaining socio-economic progress across communities for national harmony. 

He also said digital development, such as artificial intelligence (AI) and animation, is required to progress along with Malaysia's overall growth. To attain this, the government had pledged its commitment to support communities across the country. 

Singh Deo stated that the Digital Ministry has provided assistance to temples, Indian associations and Tamil schools in Malaysia to uplift the Indian community and celebrate the country's diversity while fostering harmony. He also said these efforts will continue into the coming year. 

In November last year, the e-Conomy SEA 2024 report by Google, Temasek, and Bain & Company revealed that Malaysia's digital economy is set to grow by 16% to US$31 billion by 2024 with e-commerce leading the growth, with the sector poised to grow by 17% to US$16 billion. This is followed by online travel (+19%), transport and food (+10%) and online media (+10%). In fact, steady economic momentum with looming talent challenges are on the horizon, said the report.

The government has also raised sales and service taxes to boost revenue and introduced a low-value goods tax to support local businesses. However, political shifts and the gradual outflow of talent could impact future economic progress.

Technologies, specifically AI, is revolutionising industries by automating tasks and improving efficiency. However, the technological advancement has raised concerns amongst Malaysians. In a recent Ipsos predictions 2025 survey, it revealed that nearly 73% of Malaysians fear that AI will lead to significant job losses, surpassing the global average of 65%. The survey surveyed 23,271 people across 33 countries, including Malaysia, Singapore, Indonesia, the Philippines, Thailand and more. 

The survey revealed that Malaysia is among the nations most concerned about job displacement due to AI, with Thailand and Singapore following behind at 66% and 59% respectively. Indonesia and Philippines show even greater anxiety with 85% and 81% of the population believing that AI will lead to job loss. Despite these fears, the survey revealed that optimism about the potential for AI to create new jobs remain strong.

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