By Aaron Sarma,
On Friday, 19th of February the Malaysian Digital Economy Blueprint or MyDigital was unveiled as the foundation for Malaysia’s transformation into a “regional digital pulse” by 2030. To much fanfare, Datuk Seri Mustapa Mohamed, Minister in the Prime Minister’s Department (Economy) made opening remarks about the urgency and broad strokes of the plan. This was followed by Prime Minister Tan Sri Muhyiddin Yassin’s speech to officially launch MyDigital.
The plan was a comprehensive 104-page document that covered many aspects of the digital economy with a sprinkling of budget items and programs. At its core is a National Digital Economy and 4IR Council chaired by the Prime Minister himself.
The council alone would be a reason to celebrate. A sure sign that the highest levels in government understood that the digital economy is critical to the success of the nation.
I would agree.
As we emerge from this pandemic we are faced with a myriad of challenges. People who need basic connectivity. Students who are trying to get access to education. Businesses who are trying to digitise. And startups who are trying to build the future. People need to get back to work and technology is the key. In the context of the economic roadmap ahead of us, digital is destiny.
And yet, I found myself somewhat underwhelmed by the announcement. The plans, while comprehensive, seemed to lack a certain punch. My immediate hot take was that MyDigital as presented did not feel aggressive enough and almost gives the impression that there is more bureaucracy now. I fear that this blueprint does not really help us become the pulse of the region but instead we will only continue chugging on at our current pace. I felt like the plan failed to meet the moment.
I recognise that I may not make many friends by putting down these thoughts, but I believe this moment is critical for the direction we take as a nation – specifically as it pertains to the digital economy. This is not the clenched fist of critique. This is an outstretched arm of partnership.
With that out of the way, here are 3 thoughts I would like to share about the MyDigital Blueprint and how we can make it better together.
The Fierce Urgency of Now
As I read the blueprint, a nagging feeling started haunting me. None more worrying than that the goals and initiatives are not bold enough for a 10-year plan.
How can we claim that the goal of the blueprint was to only grow the digital economy’s contribution to the economy to 22% by 2025? Especially when in 2019 it was already 19.1% of the overall GDP and when we are living in the era of the most rapid digitisation in history.
How is it that the blueprint states that it will take 5 years to have 100% internet connectivity when we are already at 90% today?
How can it take 5 years to have a 30% uplift in productivity when AI, automation and software already claim to have transformative powers?
We can certainly do better. We can aim for the skies. In fact, we cannot afford not to. Why can’t we target for 100% internet connectivity by next year? Why can’t we see a 30% uplift in productivity in 2022 and why can’t the digital economy already be 22% of GDP this year? Can we get all students access to online learning by the end of 2021?
Timing is also important. Ten years is a long time. It is probably the case that most of the people in the National Digital Economy and 4IR council will not be sitting in those roles in the next decade. As a Malaysian who has seen the non-event that was Vision 2020 I am weary of long lofty plans that may never truly see the light of day. We need to move beyond platitudes, campaigns, slogans, and hashtags to action and results.
Furthermore, the digital needs of the country will evolve rapidly over the next decade. Moore’s law states that technology changes every 18 months. Many of the technologies that are buzzwords today like AI, Blockchain, Drone Tech will not be at the bleeding edge in 2030.
The Tip of The Spear
I wish there were more of a sense of focus. In the blueprint there is an emphasis on 6 sectors namely digital talent, digital infrastructure, new technologies, halal economy, society, and government. It is encouraging that the government is attempting to have an approach across the board. However, my concern is that this potpourri of programs may dilute our impact. We need to make hard choices and decide where Malaysia can truly excel and win.
Perhaps there should have been a focus on 4IR as a concerted effort in very specific industries like agriculture or SME digitisation. Maybe a focus on the halal economy would have made sense for Malaysia as a Muslim majority nation. Perhaps we should double down on our digital content industry that has had meaningful success over the last few years.
A focus on 2 to 3 industries where we could be leaders and to make a real difference to society and the economy will reap bigger returns than trying to win on many fronts but eventually being mediocre in everything. As the adage goes, there is no point being a jack of all trades and a master of none.
And yes, this approach means that some sectors will be left behind. That is unfortunate but necessary. We will only emerge as a regional force if we pick our battles wisely.
Be Lean and Mean
A key component is the council itself. Admittedly this was the part I was most excited about. An initiative to grow the digital economy not merely championed by an agency but driven by the Economic Planning Unit with the Prime Minister as its helm. This is a big deal. I am excited that the leader of the nation is leading the direction of the digital economy of the country. It underscores how important this agenda is for the nation and how the digital economy is not just a part of the economy today but is the future of our economy.
However, just looking at the monolithic box in the blueprint document gives me the chills. The structure that has been released seems like a red tape extravaganza with a lot of entrenched interests. While the chairperson is indeed the Prime Minister, each cluster consists of multiple agencies and ministries providing input.
The role of the private sector almost seems passive. The private sector should be equal partners in championing this initiative and their input should drive the agenda, not the other way around.
The bottom line is that execution is important. In fact, execution is everything. I am concerned that the governance structure is too fat. This is not the face of a national digital transformation. It is a monument to bureaucracy. There needs to be an agile, leaner (but empowered) structure to ensure impact.
Farther and Faster Together
So where does that leave us. Am I saying that we should scrap the MyDigital Blueprint and start over? Hardly. I know firsthand the complexity of moving machinery of government towards a goal. And the programmes are not inherently poorly conceived.
However, if the name of the game is to have impact, and if we are to be the pulse of the region, we need to make big things happen now. To achieve this, I propose a targeted roll out over a shorter period. One where we pick specific goals and race to make it happen. An aggressive 18-month plan to achieve some big wins.
For example, instead of creating 5,000 startups by 2025 – can we get up to 1,500 by 2022? Can we increase the digital economy contribution to GDP 22% by 2022? – It even has a nice ring to it. Maybe we can help 200,000 SMEs digitise in this period. Perhaps we can list the top 20 tech companies in Malaysia and back one unicorn in the next 18 months. How can we get every student in the country online by the end of this year? By narrowing the timeframe and moderating the targets accordingly we will be able to drive transformation at a meaningful rate.
Then, add accountability to the plan. Have the secretariat of the council release a report to the public every 3 months about how each initiative is progressing. Perhaps build a live dashboard to measure metrics and progress on each agenda item. The more the rakyat knows the more we can contribute and support the MyDigital agenda.
Finally, collaborate with the private sector more. It is not merely enough to have passive participation at the council level. Involve the private sector in the execution of the agenda. We are not in 1996 anymore where the government was literally developing the digital economy from scratch in an oil palm plantation in Sepang. Through the efforts of governments past and present we now have successful entrepreneurs and businesses in the digital economy.
There are ecosystem builders. There is talent in the market. The government does not have to do this alone anymore. In the next 18 months, the public sector, in partnership with the private sector and academia can make a huge impact.
This is a critical moment in the digital development of the country. In a time where we are seeing our regional neighbours pulling ahead of us, we have a unique opportunity to turn the tide. People need solutions today. Businesses need access to digital solutions now. Children need access to online education immediately. Innovators need empowerment to make a difference for tomorrow. The next 18 months could be the birth of a new digital era for Malaysia.
Let’s go!
This article is contributed by Aaron Sarma, who serves as General Partner at ScaleUp Malaysia. Aaron is a serial entrepreneur, angel investor and speaker.
