Collectively, they came out with a report which is made public. It is called 'Online and upcoming: The Internet's impact on aspiring countries'
For other similar reports. http://www.valueoftheweb.com/
It is learned that The Internet is estimated to have contributed 4.1% of Malaysia's Gross Domestic Product (GDP) in 2010 or US $ 9.75 billion of the 2010 GDP or 238 billion (World Bank estimate), thus placing Malaysia mong the highest of the 30 fast-growing countries that the report highlights as crucial to the Internet's future.
The report is derived based on two key indicators.
1.) iGDP - Using the expenditure method, the contribution of the Internet is measure d as the proportion of GDP that can be attributed to the Internet in private consumption, public expenditure, private expenditure and trade. Thie measure is ICT-related, as it aggregates the expenditure on all goods and services that are related to the Internet, including devices, access, the consumption of hardware, and online consumption.
2.) eCP - The e-commerce platform demonstrates e-commerce enablements by scoring a country's online payment enablement, parcel delivery systems and Internet readiness.
Therefore, for Malaysia itself, 4.1% constitutes of
- 39% - Private consumption
- 7% - private investment
- 8% - public expenditure
- 46% - trade balance
This means that the bulk of the Internet economy is due to trading that is not directly related to private and public. It is a result of using the Internet to make business deals and etc. The report found that SMEs benefited mostly from the dominance of The Internet. To give you a highlight:
- Revenue gains - 6.1%
- Costs of goods sold savings - 3.8%
- Overhead cost reduction - 5.3%
- Productivity gains - 10.7%
On going forward, Google advices to improve the ecosystem. Such can be achieved in three ways.
- Bring more companies to The Internet.
- More Malaysian content
- Boosting domestic consumption.
It is reported that GMBO (Get Malaysian Business Online) initiative which was launched in Nov 2011 has attracted 10,000 sign-ups so far. And with 600,000 registered SMEs in Malaysia, the Internet economy is expected to grow tremendously.
McKinsey & Co presses Malaysian netpreneurs to contribute the Internet economy as well, because there are too much room to grow.
The percentage of Internet's contribution to GDP growth is merely 2%. Sweden has the highest percentage of 33%, UK 23% , Taiwan 13% and south Korea 16%.
What this means is that there is very low number of Internet entrepreneur that are successful as compared to the size of the Internet economy. This is a good thing.
