MALAYSIA needs to innovate to overcome the challenges of post-Covid-19 recovery, with the need to build up its digital infrastructure and digitalise the economy, according to Malaysia Digital Economy Corporation (MDEC) chairman Rais Hussin.
“When we look back upon this critical time we might even appreciate the unique opportunity it has given us to upgrade some of the legacy infrastructure and future-proof it to facilitate new growth in the digital economy,” said Rais in an opinion piece in the Malay Mail.
He noted that, in the world of the Fourth Industrial Revolution, digital information and big data will serve as the fuel that powers the new economy. Societies will also increasingly enjoy decentralised access to everything in it, which he opines is a new reality that presents opportunities, but also raises serious concerns.
“MDEC, tasked with overseeing the digitalisation of the nation, must fulfil its responsibility to integrate digital society onto a unified platform that serves all its participants efficiently, ensuring that traffic moves smoothly on its networks, and that all members of society are equitably served.
“A key aspect of the Malaysia 5.0 vision is building this digital infrastructure with a unified alliance of stakeholders both within government and across private enterprise. This ‘Unity Alliance’ is an economic coalition that will serve society in its migration into the digital age,” said Rais.
He noted that there are many initiatives from different agencies that are designed to stimulate the growth of financial technology (fintech) as a means of accelerating the adoption of a digital economy.
“MDEC will support these initiatives by providing a unified framework on which they are able to interoperate easily and cost-effectively across the entire national digital ecosystem,” he said.
He also believes that Malaysia 5.0, properly implemented, will function as the tracks on which the digital economy will travel.
“If this sounds impossibly ambitious for a country like Malaysia to achieve, then it only underlines the importance of designing a system which caters to our own particular competitive strengths, such as in Islamic fintech, for example, where Malaysia can bid to play a leadership role in an exciting sunrise industry,” he said.
The Malaysia 5.0 initiative, inspired by Japan’s Society 5.0 initiative, will allow technology to serve society, and allow for the management of disruptive new systems, such as fintech, to ensure that benefits accrue fairly across society without bias, according to Rais.
“To achieve this, Malaysia 5.0 will need to intermediate digital marketplaces, banks and fintech companies, and make them interoperable for public services and commercial counterparties.
“This omnichannel access creates the connectivity, services and relationships needed to build the kind of digital economy which supports all members of society, especially SMEs which are most vulnerable to the effects of digital transition,” he said.
Rais added that this will also allow for a centralised hub for the government to provide its regulatory oversight and public services, resulting in efficiency gains and comprehensive oversight in a unified system.
“In areas where we enjoy competitive strengths, such as Islamic fintech, Malaysia 5.0 positions Malaysia in the global marketplace of banks, insurers, telcos and other industries in providing Islamic digital services.
“Certainly I am the first to acknowledge that we are far away from leading the world as an innovation economy, but the first step towards progressing on this path is recognising the need for an initiative such as Malaysia 5.0 to build a national framework that stimulates and supports our future digital economy,” said Rais.
The MDEC chairman believes that this is the time for creative thinking and change, noting that Malaysia 5.0 could allow the nation to leapfrog into innovation that will serve Malaysia’s future generations.
“Unity Alliance truly can be an alliance that serves all Malaysians in our shared common goals for recovery, progress, and well-being,” said Rais. – Aug 6, 2020
