Malaysia among top 3 in economic impact of Internet study

KUALA LUMPUR: Malaysia has come in amongst the top three in a study conducted by McKinsey & Company on the economic impact of the Internet on the Gross Domestic Product (GDP) of nine aspiring countries – Taiwan, Malaysia, Hungary, Argentina, Mexico, Morocco, Turkey, Vietnam and Nigeria. According to the McKinsey report, Malaysia has also surpassed other developed and developing economies such as France, Germany, China, India and even the United States on McKinsey’s internal index.

The report also cites, “The total contribution of the Internet to GDP in some aspiring countries, notably Taiwan and Malaysia, is similar to those levels observed in developed countries. While consumption is high, these aspiring countries benefit from being net exporters of ICT goods and services”.

In addition, the report includes their survey finding in which Malaysia is placed third among the aforementioned aspiring countries in productivity increase for SME’s due to web technologies.

“We view this positively for Malaysia in view of the collaborative efforts undertaken by the Ministry of Information, Communications and Culture (Ministry), the Malaysian Communications and Multimedia Commission (MCMC) and the communications and multimedia industry towards connecting all Malaysians. It clearly shows the benefits of the Internet on the economy and makes a case for prioritising this aspiration even further,” said Dato’ Mohamed Sharil Tarmizi, chairman of the MCMC.

He added, “Under the stewardship of Yang Berhormat Dato’ Seri Utama Dr. Rais Yatim, the Minister of Information Communications and Culture, we will continue our joint efforts to implement various initiatives to ensure that more Malaysians are connected to the Internet.”

Under the National Broadband Initiative (NBI), a target of 50 per cent broadband household penetration was to be achieved by the end of 2010. However, the penetration rate surpassed the targeted rate to stand at 55.6 per cent at the end of 2010. As of the beginning of January 2012, Malaysia’s broadband household penetration rate is 62.3 per cent.

The government has dovetailed its efforts to boost the economy by leveraging on these initiatives to increase Internet penetration. The Communications, Content and Infrastructure (CCI) initiative under the Economic Transformation Programme of the National Key Economic Area (NKEA) for example, includes initiatives that make use of access to the Internet to bridge the digital divide such as the one million 1Malaysia Netbooks Programme that is being rolled out in phases. Through the Kampung Tanpa Wayar 1Malaysia (KTW) initiative, approximately 4,000 villages will be connected using WiFi and other broadband technologies. Already, more than 1,400 sites have been completed. In addition, Digital Districts, community broadband centres and broadband enabled libraries have also been created to offer the public more choice in accessing the Internet.

“It has come as a pleasant surprise for Malaysia to be recognised in this manner. Nonetheless, there is much more that needs to be done both in terms of increasing broadband service coverage and availability as well as improving the quality of service and user experience. We will have to intensify our joint efforts together with the industry to connect all Malaysians in the spirit of 1Malaysia”, concluded Datuk Sharil.

The McKinsey report was released on 27 January 2012 on the sidelines of the World Economic Forum in Davos, Switzerland. — Bernama

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