Digital contribution to Malaysia’s GDP set to grow
MALAYSIA’S digital transformation efforts seem to be paying off.
According to IDC, the digital economy is set to contribute 21 percent of Malaysia’s GDP growth, in the next three years, up from 18 percent currently.
Also, IDC found that Malaysian companies are leading the pool in the APAC region in expanding returns from digital transformation.
Up to 58 percent of Malaysian companies have claimed to see returns on their digital transformation investments, as opposed to 47 percent of Singaporean businesses, and 34 percent of their Japanese counterparts.
The study titled, Digital Dysfunction in the Asia Pacific surveyed 1,000 c-level executive and business leaders in the region.
Despite the favorable numbers, there is always room for improvement, if the report is any indication.
Upwards of 73 percent of HR managers, 54 percent or IT administrator, and almost half of all the C-suite leaders, singled out organizational silos, a crucial barrier to transformation.
In terms of measuring the impact, 69 percent of of the executives in Malaysia claim to have no balanced scorecard approach that properly aligns and gauges the effects of transformation initiatives.
More integrated solutions needed
Forty-seven percent of respondents said that a lack of standard technologies and shared metrics continue to stifle cross-functional collaboration, while about one-third of the executives (34 percent) feel that their organizations need to invest more into technology.
Meanwhile, more than half (52 percent) of the executives admitted that their digital transformation efforts were uncoordinated and added that 73 percent of HR departments lack an implementation plan for a digital journey.
The general consensus, among almost all HR leaders (93 percent) and finance leaders (80 percent) is that there is a pressing need for an integrated solution to enhanced visibility.
At the moment, 20 percent of finance departments and about 13 percent of HR teams boast of fully integrated systems and believe they have achieved complete digital transformation. This figure is aligned with peers in the region.
The study comes on the heels of the government’s renewed commitment towards digital transformation and digitalization to better support Malaysia’s GDP growth.
As part of its 2019 Budget tabled last year, Malaysia’s finance minister Lim Guan Eng had announced a US$720 million “Industry Digitalization Transformation Fund.”
Lim said the fund is meant to accelerate the adoption of smart technology which includes automation, robotics, and artificial intelligence (AI).
Recently, World Bank’s Senior Economist Smita Kuriakose had said that Malaysia is making great strides in its digital journey.
“Technology-led innovations are pivotal in economic transformation, job creation, and the growth of an economy. The use of technology is transforming the way businesses do business and nations trade, and in effect, influencing consumer preferences,” Kuriakose told Tech Wire Asia.