Malaysian government provides $997 million stimulus for nationwide digitalisation
Published 19 March 2021
The Malaysian government has announced that it will allocate a series of funds worth $997 million (RM4.1 billion) to the country’s tech scene as part of its efforts to drive nationwide digitalisation.
This initiative forms part of the government’s latest stimulus package, PEMERKASA, that aims to jumpstart Malaysia’s post-pandemic economic recovery.
First, under the Universal Services Provision (USP) Fund, The Malaysian Communications and Multimedia Commission (MCMC) will invest $778 million (RM3.2 billion) to improve the quality of 5G and broadband services across the country, particularly in remote areas.
Prime Minister Tan Sri Muhyiddin Yassin said that the funds will be used to upgrade existing transmission stations and provide fibre optics infrastructure to related premises.
He also said that the country will roll out commercial 5G by phases by the end of 2021.
Next, to support small and medium enterprises (SMEs) in Malaysia, the Central Bank of Malaysia will allocate an additional $170 million (RM700 million) for the SME Automation and Digitalisation Facility (ADF).
Established by the bank in March 2020, the ADF aims to assist SMEs in their digitalisation journey.
The Malaysian government previously allocated $48.6 million (RM200 million) to the ADF under the Malaysian Industrial Development Finance Berhad (MIDF).
Tan Sri Muhyiddin Yassin says that the initiatives would help the nation achieve four goals: increase foreign investments, strengthen Malaysia’s global trade position, boost tech adoption, and ensure overall sustainable growth.
These announcements need to be seen in the backdrop of Prime Minister Tan Sri Muhyiddin Yassin’s efforts to give a significant boost to accelerate and create a strong digital infrastructure, under the Digital Economy Blueprint or MyDigital initiative. In line with this, recently the government announced conditional approvals to four cloud service providers (CSP) to build and manage “hyper-scale” data centres and cloud services.
“Between RM12 billion and RM15 billion will be invested CSP companies over the next five years,” PM Muhyiddin said. Further, the government has also proposed the appointment of three local ICT (information communication technology) companies as managed service providers to work with the CSPs to manage their services to agencies in the public sector.
The three companies are Enfrasys Solution Sdn Bhd, Prestariang Systems Sdn Bhd and Cloud Connect Sdn Bhd.
“As part of the measures to empower cloud computing services in the public sector, the government, through its ‘Cloud First’ strategy, has targeted the migration of 80 per cent of public data to hybrid cloud systems by the end of 2022,” said PM Muhyiddin.
div style=”background-color: #f7f7f7; padding: 10px; border: 2px #3f3f3f;”>
JOIN W.MEDIA AT DIGITAL WEEK
KR | CH | JP | TW | HK
When: 20-22 April 2021
Digital Week is returning to do a deep dive into the Cloud & Datacenter industries of FIVE new markets: Korea, Mainland China, Japan, Hong Kong, and Taiwan. Join us as we bring together 2500+ IT leaders from across Northeast Asia, covering everything from sustainable infrastructure to cloud security to digital transformation. Digital Week lets you expand your network and engage with new markets from wherever you are.
Want to learn more about these exciting developments in data and IT? Start connecting with peers and access exclusive pre-show content when you Register Today for Free!