FOLLOWING the announcement of the inaugural Budget 2021 tabled by Finance Minister Tengku Datuk Seri Zafrul Tengku Aziz, there have been many mixed reactions about the measures being proposed.
However, in the case of these companies and educational institutions, they are very much into the extensive initiatives in part of the largest Budget in the history of Malaysia, especially those related to education, employment and digital transformation.
“It is encouraging to see the Malaysian government reiterating its commitment to ensure quality education, especially this year where the pandemic has seen extensive school and kindergarten closures,” said E-Bridge Preschool Penang founder and managing director Patrick Tiah.
“The RM50.4 bil allocation to the Education Ministry is a strong positive signal and we hope that more will be deployed into the early-childhood education sector, which has shown to be critical for the child’s future development,” he added.
“In addition, we are happy that the government is providing a matching grant worth RM20 mil for the private sector to provide childcare services. We believe these incentives will help keep working mothers employed or enable them to return to work which will boost Malaysia’s economic growth,” he said.
Tiah also said that digital transformation is a must in order to integrate new technologies into teaching and learning, lauding the government’s allocation of RM500 mil for the National Digital Network (Jendela) initiative.
This is view is also echoed by security company HID Global’s APAC regional business director of secure issuance Wei Jin Lee, who said that Budget 2021 is a business-friendly one.
“We are delighted to see the government pushing digital transformation with an allocation of RM1 bil which will expedite digital transformation and spur the economic growth. This certainly augurs well for the technology sector,” Wei opined.
Similarly, Nutanix Malaysia country manager Avinash Gowda said, “The current health crisis has accelerated digital transformation for many organisations and the momentum will continue as we further strive towards a developed digital economy.”
“More importantly, organisations must commit to modernising their technology infrastructure and move past legacy systems.”
Gowda believes that a robust digital infrastructure will be the bedrock for advancing Malaysia’s digital economy and ensuring a smooth transition towards 5G.
“The allocation of RM7.4 bil for MCMC to increase broadband is a steady step towards this. Organisations looking to capitalise on (5G) should also develop a long-term strategy before implementing 5G and consider how they can leverage it to support business goals, redesign and streamline core operations, and ultimately improve customer experiences,” he added.
Additionally, DE-CIX Malaysia and Singapore’s board of management Wong Weng Yew said, “With an unprecedented demand for connectivity triggered by COVID-19, we believe the government is taking the right step towards ensuring a reliable digital infrastructure across Malaysia by making the internet a public utility and national priority.”
“The RM7.4 bil allocation for the Malaysian Communications and Multimedia Commission to increase broadband services will likely spur the country’s potential as a regional interconnection hub.”
Wong added that the Prihatin Network Program initiative wherein Telcos will provide RM1.5 bil worth of data to help close the gaps in internet access and provide a better future for those in the B40 group.
Meanwhile, Mednefits CEO Chris Teo speaks up about initiatives dedicated to the startups and SMEs who, he said, ‘have always punched above their weight in Malaysia’.
“It is heartening to hear the Malaysian government allocating up to RM150 mil to help startups and SMEs accelerate the adoption of digital technologies. All businesses, big or small, should seize the opportunity to invest in technology, to help simplify and automate routine administrative processes, so that they are better placed to capture growth opportunities when the economy improves,” he commented.
Also commenting on the measures related to startups and SMEs, Hitachi Vantara Sdn Bhd managing director Moti Uttam believes that the RM150 mil allocation will help push digital adoption, allowing businesses, especially SMEs, head towards a recovery phase.
“Moreover, the RM7.4 bil for MCMC will enable Malaysia to continue to be competitive in the global value chain and preserve the supply chain ecosystem while accelerating digital transformation and protect high-skilled jobs,” he opined.
Being a responsible for an SME company himself, Oxwhite founder CK Chang opined that the measures in Budget 2021 brings hope to the e-commerce startups in the country.
“It is quite a comprehensive plan as it will help drive Malaysians further in the adoption of e-commerce through connectivity enhancement such as Prihatin Connectivity Plan (Program Jalinan Prihatin) and Jendela,” Chang said.
“Additionally, the budget also helps home grown brands cushion the impact of the global pandemic by incentivising Malaysians to support local brands online through the RM150 mil allocation for Shop Malaysia Online campaign.”
Chang also noted that the RM35 mil ringgit allocated for the promotion of local products and services would be beneficial for the local e-commerce players to remain competitive as retail patterns shift online. – Nov 9, 2020
