MDEC rebrands to become Malaysia Digital Economy Corporation
Malaysia Sees High Investment Growth from MSC Companies
Earlier this week DSA attended a press conference organised by MDEC to announce their annual results from 2015. We include the entire press release below for your reading.
In our opinion the most significant part of the press conference was the announcement that MDeC has changed its name from “Multimedia Development Corporation” to “Malaysia Digital Economy Corporation”
Not that we want to underplay some of the impressive announcements that MDEC made. The figures around investment, knowledge worker job creation, and international success from MSC status companies were genuinely strong and positive.
However, this change in name is absolutely fundamental. We are living in an era of technological transformation. If we look at the commercial IT sector, it is currently peppered with evidence of this transformation. HP has split into two companies with HPE now positioning itself as a company to help others in their digital transformation journey. IBM is completely reinventing itself, having sold off the elements that built the company and focusing on cloud services, Dell and EMC are coming together to better prepare to serve the changing digital world. In the same way MDEC has realised that it also needs to transform to remain relevant.
It’s unusual that a government organisation rebrands or shows such flexibility, but under Dato’ Yasmin Mahmood, some of the practices of private sector have been applied in how MDEC conducts itself.
Dato’ Yasmin Mahmood
Based on our discussions with numerous MDeC personnel we believe this change in name is more than just a branding exercise. Its indicative of the fundamental transformation that MDEC is trying to make.
The rules of business and even lifestyle are being changed by Digital Transformation. The technologies that underpin the digital economy are changing the fabric of our society - not just in Malaysia or ASEAN, but globally. They are not limited to the IT space anymore, according to people we speak to at MDEC every business needs to leverage the technologies that underpin digital economy. In this respect we see this name change as a statement that MDEC are acknowledging this seismic technology shift and are working hard to transition themselves just like the major IT players. In doing so MDEC wants to ensure they play a pivotal role in assisting Malaysia in its transition to a knowledged based Digital Economy.
Entire Press release follows:
Kuala Lumpur 11th April 2016 - Despite global economic challenges, Malaysia Digital Economy Corporation (MDEC), formerly known as Multimedia Development Corporation, announced significant growth in investments and export sales from MSC Malaysia companies in 2015.
As the lead agency responsible for driving Malaysia’s digital economy, MDEC registered a growth of 56 per cent in Approved Investments and Foreign Direct Investments in 2015. Total investments inflow from MSC Malaysia companies reached RM19.8bil last year. The agency recorded highest increase in new investments since MSC Malaysia’s establishment in 1996 (RM 4.6bil in 2015).
“2015 was a significant year for us. New investments inflow reached a 20-year record high and for the first time ever, export sales for MSC Malaysia exceeded our expectations. MSC Malaysia’s performance and growth is testament to the progress we are making in executing our Digital Economy strategy as well as boosting investors’ confidence and faith in our local ICT industry,” said Dato’ Yasmin Mahmood, Chief Executive Officer, Malaysia Digital Economy Corporation.
Highest Export Sales in Ten Years
Export sales from MSC Malaysia companies contributed RM16.2bil from RM13.7bil in 2014, an 18 per cent increase. The Global Business Services (GBS) cluster contributed the highest (69 per cent) to the overall export sales.
“Local MSC Malaysia companies showcased promising growth in 2015, as export sales increased by 9 per cent (RM3.7bil). We are proud to share that MSC Malaysia recorded the highest increase in overall export sales since 2010,” said Dato’ Yasmin.
Last year, MDEC saw seven additional local companies cross the RM 100mil revenue mark.
“This is an important milestone for MDEC in championing local MSC Malaysia companies as they tap regional and global markets. It is encouraging to see our local tech icons grow stronger year-on-year and contribute back to our economy,” said Dato’ Yasmin.
Focus areas continue to show positive growth
2015 was also a very positive year for the new growth areas including Internet of Things (IoT), Cloud & Data Centre, Big Data Analytics (BDA), Security and eCommerce. These focus areas contributed about 10 per cent (RM1.65bil) to the total export sales last year.
“Our efforts in the last two years in these focus areas have started to show very encouraging results. Our Cloud & Data Centre focus area saw the most promising growth last year,” said Dato’ Yasmin.
The animation sector recorded an impressive growth in exports (52 per cent growth). This was underpinned by key companies such as Animonsta, Giggle Garage, Tau Films, Les Copaque and many more. The Games sector, on the other hand, is growing rapidly from a small base, with a six-fold increase in year-on-year growth in export sales.
MDEC’s plan moving forward
In the coming years, MDEC will be looking into four key areas in envisioning the Digital Malaysia goals mandated by the Prime Minister. MDEC will continue to drive a sustainable digital economy built upon a vibrant domestic IT industry, transformative use of digital solutions by the government, businesses and citizens, as well as a robust enabling ecosystem. This constitutes:
· Driving Investments: Attract more foreign direct investments into the country with MSC Malaysia status offerings
· Growing Local Technology Champions: Increase efforts to accelerate local MSC Malaysia companies to be competitive globally
· Catalysing Digital Innovation Ecosystems: Expand opportunities in focus areas such as eCommerce, Cloud, Creative Technology, Internet-of-Things (IoT) as well as Big Data Analytics (BDA). The Talent ecosystem then serves as a key imperative to support the development of these focus areas.
· Digital Inclusivity (Merakyatkan Ekonomi Digital): Drive the ‘inclusive’ approach of encouraging Malaysians from all walks of life to earn additional income through digital means via the eRezeki and eUsahawan initiatives.