This article first appeared in The Edge Financial Daily on April 20, 2017

KUALA LUMPUR: Malaysia’s digital economy contribution to the gross domestic product (GDP), which currently stands at 17.8%, is likely to achieve its 2020 target of 20% earlier than expected.

“At the rate MDEC (Malaysia Digital Economy Corp) is bringing in [digital] investments, we can even achieve it (the target) earlier than 2020,” said Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah at the launch of Malaysia Digital Hub yesterday.

Mohd Irwan said the ministry of finance has been working with MDEC and the private sector to structure the Malaysia Digital Hub, an initiative to support technology and digital co-working spaces and start-up communities to foster more start-up growth in the country.

He added that the ecosystem for start-ups is conducive as the government has put in place policies and initiatives for digital hubs, and companies with MSC Malaysia Status will also enjoy benefits like tax incentives.

Mohd Irwan also expressed his confidence in the abundance of opportunities available for start-up growth in Malaysia. “Now we see many companies coming back to build their base in Malaysia again. The opportunity is there,” he said.

“The Digital Free Trade Zone is an area where our small and medium enterprises can also benefit from partnerships with big players like Alibaba,” he added.

Meanwhile, MDEC chief executive officer Datuk Yasmin Mahmood, who was also present at the launch, said as part of growing the local start-up community in Malaysia, efforts are being made to attract more foreign talent.