LETTER | A time to reset and rebuild a more sustainable economy

LETTER | As home to more than 650 million people – the world’s third-largest population – over 50 percent being under-30 and tech-savvy, Asean is the fastest growing Internet market in the world. Despite this, Malaysia has been bringing up the rear in the rankings among its peers.

Singapore is the knowledge hub; Indonesia gets the most foreign investment; and Vietnam has the highest growth rates. Malaysia is often discounted or overlooked as pundits hype the potential of the region, especially when it comes to the talent pool for innovation.

Not all of this scepticism is deserved, surely, as Malaysia has put digital transformation at the centre of its agenda in Covid-19 recovery schemes, with a focus on digital inclusion for micro-SMEs and the rural community. This speed of change has actually been catalysed by the health crisis.

The Malaysian government – via Malaysian Digital Economy Corporation (MDEC) – has embarked on a slew of initiatives to spur the digital economy and bridge the digital divide. These efforts are starting to pay off – the digital economy is estimated to have contributed more than 20 percent to the nation’s GDP in 2020.

It would also serve us well to recognise the niche areas where we can swiftly catch up and overtake our peers. The powerful technologies of the Fourth Industrial Revolution (4IR) present many new opportunities to leapfrog legacy systems. Ironically, those with the most developed economies often have the most to lose by disrupting them, thereby opening up space for others more amenable to embracing disruptive change.

This is true for financial technology, for instance, which global financial centres like Singapore approach more cautiously; or robotics, which challenges low-cost labour manufacturing hubs such as Vietnam; or blockchain, which holds the promise to decentralise authoritarian control of information directly into the hands of the citizenry.

Concurrently, Malaysia can leverage much of the cumulative intellectual property it has developed in Islamic finance, oil and gas services, tourism and industrial agriculture to support innovative new business models, particularly in digital start-ups.

The shock of the pandemic has given the world an opportunity to reset and rebuild systems currently in place for a more sustainable and inclusive society and economy. The health crisis has exposed the massive inequalities in our current economic systems, highlighting the fact that a proper and sustainable recovery for the long term needs to be inclusive.

In resetting, we must first acknowledge the inconsistencies, inadequacies and contradictions of our systems and even institutions. In rebuilding, we must first acknowledge how fragile the systems and we humans are; and how to build a new social contract that honours the dignity of every human being.

As MDEC works towards its vision of Malaysia 5.0, where the interplay of technology and society is complementary and inclusive, it is logical that collaboration with all stakeholders will be key to achieving this vision. No one organisation can do it alone, so deep collaboration across society will be key. There is a saying, “If you want to go fast, go alone. If you want to go far, go together."

RAIS HUSSIN is the chairperson of the Malaysia Digital Economy Corporation (MDEC).

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.