Enhancing connectivity to support Malaysia’s digital economy ambitions
During PIKOM’s annual Leadership Summit event, Minister of Transport Malaysia, Liow Tiong Lai, shared that his ministry has been given the extra task of overlooking logistics for the digital economy, via a national logistics taskforce.
He said, “Now I have to be concerned about Internet speed and the digital economy. It is part of the ministerial scope now.”
Liow added that as a result of this, he wants to understand the national transformation program, and foresees working closely with the National ICT Association of Malaysia (PIKOM), to understand how to participate in the digital economy.
e-commerce is the fastest growing facet of trade across the world. Thanks to this, consumers can buy products anywhere online and expect delivery within a short time-frame.
Liow said, “The logistics industry and digital economy are intertwined, forming the critical backbone to the supply chain and plays a major role to stimulate trade and spur economic growth.”
In line with all this increased e-commerce activity, Malaysia has ambitions to be a logistic hub for this region.
“For this, we need good infrastructure, and we do – railways, roads, airports – now we need to integrated them and make it more efficient, as well as have good Internet speed to mobilise all areas from air to the Net,” Liow said
By 2025, Malaysia anticipates handling and moving up to USD65billion worth of goods around the ASEAN region.
With the digital free trade zone (DFTZ) going live recently, Malaysia also has ambitions to be a regional e-fulfilment hub for ASEAN. This Phase 2 of the DFTZ initiative, involves a 24-hectare space at KLIA’ Aeropolis, allocated for e-fulfilment activities.
Slated to be ready for operations in 2020, half of this space is for local players to participate in, as well.
Liow emphasised that all DFTZ-related cargo, will have to go through this airport.