Digital economy expected to contribute over 25% to Malaysia’s GDP by 2025

Illustrative photo (Photo: Xinhua/VNA)

Kuala Lumpur (VNA) – The Malaysian government expects the digital economy sector will contribute 25.5% to its gross domestic product (GDP) by 2025, Malaysia’s Communications and Digital Minister Fahmi Fadzil said on August 10.

The current rate is 23%.

According to the minister, the digital economy plays an important role in the MADANI Economy framework and the future direction of the country's economy to create a wider market for Malaysians so they are not tied to just the local market.

He said apart from providing a wider market, the sector allows Malaysians to work from any location provided they have access to a stable internet connection.

He said the main focus of the ministry was to provide the complete infrastructure needed to narrow the digital divide and provide stable and cheap internet packages, in addition to taking steps to improve digital literacy skills.

With the MADANI Economy framework launched by Prime Minister Datuk Seri Anwar Ibrahim on July 27, the marketability of local products under the initiatives planned by the government for the digital economy sector can reach at least 652 million people in Southeast Asia.

As of July 31, a total of 5,515 of the 7,509 planned 5G sites had been completed to reach 66.8% coverage of populated areas (CoPA), while 4G coverage had reached 96.2% of CoPA nationwide.

Fahmi said there are four satellite broadband providers including Starlink, for areas that did not have internet access.

The idea of the MADANI Economy is based on two important factors: empowering people and focusing on innovation and inclusivity./.