Budget 2021 set to accelerate digitalisation

THE Budget 2021 announcement tabled by Finance Minister Tengku Zafrul Aziz yesterday saw numerous incentives dedicated to enhance and accelerate the implementation of digitalisation in businesses.

Such measures include an allocation of RM1 bil under the digital transformation scheme for industry and an additional fund of RM150 mil for digitalisation and automation grant for small and medium sized enterprises (SMEs).

In addition, there is also continued commitment to introduce digital technology in delivery of public sector services to increase their speed and ease of use.

According to Dagang NeXchange Bhd (DNeX), these measures come at the right time, allowing businesses to leverage on digital technology.

“Digitalisation can contribute towards increasing efficiency and reliability of trade processes, which of course is a key factor to boost trade for the country,” said its group managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir.

Echoing the sentiment, MYNIC Bhd lauds the incentives given for businesses to embrace digitalisation and technology, which is an essential step towards Malaysia’s digital economy goal.

“COVID-19 has accelerated the growth of e-commerce, digital payments, and digital processes, and it is good to see that the government is looking to continue this forward momentum by encouraging more businesses to come online and embrace these digital processes,” said MYNIC CEO Datuk Hasnul Fadhly Hasan.

He is also pleased with the government’s allocations dedicated to SMEs and micro SMEs to help them keep their businesses afloat, along with the increase and extension of wage subsidies.

“I am encouraged that the Budget has set aside RM4.6 bil to help provide financial assistance to SMEs and micro-SMEs, with a special emphasis on supporting female entrepreneurs,” he added.

Furthermore, Hasnul said that the government’s efforts to improve internet connectivity is a welcomed move.

“The allocation of RM7.4 bil to MCMC to improve Malaysia’s broadband service in the coming years is a huge step forward in reducing the digital divide in Malaysia. The specific allocation of RM42 mil under JENDELA to improve internet connectivity in industrial areas will also be a big advantage to businesses looking to digitise,” he said.

“Improved internet at cheaper prices, especially in rural Malaysia, will level the playing field and bring us closer to transforming the country into a competitive business hub that will help stimulate economic growth,” added Hasnul.

Halal Street UK (HST) also believes that the Budget 2021 announcement featured sufficient initiatives and incentives towards supporting businesses to move towards e-commerce.

“It’s a positive budget for the people that addresses problems and challenges across all sectors of society and lessen the economic impact of the COVID-19 pandemic,” it said.

HST also welcomed the relaxation of eligibility conditions for the SME Digitalisation Grant Scheme and the Automation Grant as it will assist in accelerating the adoption of digitalisation.

“It is certainly helpful for the SMEs to recover their losses and have a bigger market reach at the same time, enabling them to go global,” it added.

Meanwhile, Shopee noted that Budget 2021 shows a digital-inclusive effort by the government while it balances between addressing bread and butter issues and resuscitating the domestic economy.

“We are encouraged by the continuation of initiatives like Shop Malaysia Online as well as the micro SME e-commerce campaign that are aimed at spurring local consumption, stabilising cash flow, boosting revenue as well as driving economic growth through e-commerce platforms,” said Shopee regional managing director Ian Ho.

“Ultimately, we aim to build on the successes achieved through the PENJANA e-commerce initiatives. The subsidies in the form of discounts, cashbacks and free shipping vouchers benefited close to three million Malaysians, thereby helping ease cost of living pressures,” he added. – Nov 7, 2020

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