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Across the world, the advent of digital technologies has changed the world. It has made
cross-border trade cheaper, business processes more e cient, and allowed small and
medium enterprises (SMEs) to access global markets through e-commerce. COVID-19 has
further accelerated this digital shift. In 2020, amid the COVID-19 pandemic, information of
communication technologies (ICT) and e-commerce activities contributed nearly 23% of
Malaysia’s economy – up 3.4 percentage points from a year ago.
Indeed, throughout the numerous movement restrictions in Malaysia, digital technologies
have been a lifeline for businesses and SMEs across the country. Even as COVID-19
restrictions continue to be relaxed nationally, there are many signs that this digital shift will
be enduring. This is helped along by the Malaysian government’s keen focus on digital
transformation, with the launch of the Malaysia Digital Economy (MyDigital) blueprint and
numerous other initiatives over the past two years. Since the onset of COVID-19, numerous
digital transformation policies were expanded or introduced through the government’s
eight economic stimulus packages. For instance, the June 2020 Penjana package included
expansions of policies like the SME Digitalisation Matching Grant, Smart Automation Grant
and the SME Technology Transformation Fund.
