High growth results are not new for the recently renamed Malaysia Digital Economy Corporation (MDEC) as it managed to generate positive returns in these economically challenging times. 2015 alone saw MDEC registering 56% increase in investments and generating RM19.8 billion in funding inflows.
This is, by no means, a simple achievement. The former came to be from a mix of Approved and Foreign Direct Investments that MDEC developed in 2015 while the latter saw the innovation regulator record its highest increase in new investments.
“2015 had been a significant year for us. We’ve hit a 20-year record high for inflows and, for the first time ever, export sales for MSC Malaysia exceeded our expectations. MSC Malaysia’s performance and growth is testament to the progress we are making in executing our Digital Economy strategy as well as boosting investors’ confidence and faith in our local ICT industry,” said Dato’ Yasmin Mahmood, Chief Executive Officer, MDEC.
While export sales have reached an all-time high, 9% growth from last year and about 18% from 2014 thanks to the efforts of the Global Business Services cluster, MDEC has set its sights on many new growth areas – namely Internet of Things, Cloud, Big Data Analytics, security, data centre, and eCommerce. These ventures, having contributed about 10% to total export sales for 2015, are already yielding encouraging results.
One of the bigger boosts MDEC saw in the last year had been from the creative cluster. Animation studios, like Animonsta, Giggle Garage, Tau Films, and Les Copaque, are still leading the charge for growth though it now has a capable partner on hand – videogames. In fact, the latter has grown rapidly from a small base of niche focuses and, from that process, recorded a six-fold increase in year-on-year growth for export sales.
As is, the Creative Content and Technologies cluster for MDEC has generated RM7.24 billion in revenue.
In terms of growth for MDEC, the coming months of 2016 and the next few years will see the technology focused regulator looking into four key areas that will continue the push for a sustainable digital economy. The four are as listed below:
- Increase Investments: Attract more foreign direct investments into the country
- Grow Local Technology Champions: Boost efforts to accelerate local MSC Malaysia companies to be competitive globally
- Catalyses Digital Innovation Ecosystems: Expand opportunities in ongoing initiatives within eCommerce, Cloud, Creative Technology, Internet-of-Things, and Big Data Analytics trends. Related talent ecosystems will serve as a key imperative to support the development of these focus areas
- Digital Inclusivity: Push for higher focus on ‘inclusive’ approach of encouraging Malaysians from all walks of life to earn additional income through digital means via the eRezeki and eUsahawan initiatives.
There will be other expansive efforts as well but MDEC will mostly make such moves based upon these four key pillars.