MDEC: E-commerce expected to grow 20% this year despite MCO

PETALING JAYA: The Malaysian Digital Economy Corporation (MDEC) has projected a 20% growth in e-commerce contribution to the digital economy this year despite the implementation of the movement control order (MCO) to curb the spread of the Covid-19 pandemic.

It said such growth could be achieved through the active intervention of various ecosystem partners via ongoing initiatives, which could see the segment’s contribution to the country’s gross domestic product reach as high as RM170 billion in 2020.

MDEC stated the indirect injections by the short-term economic recovery plan Penjana to the Shop Malaysia Online campaign, will help the e-commerce segment to reach that goal.

The agency revealed that its e-commerce team is still in discussion with the finance ministry in finalising the execution plan for the incentive.

It said that the campaign aims to encourage online shopping through promotional codes and discount vouchers through e-commerce platforms.

Apart from e-commerce, Penjana has also allocated RM700 million for assisting MSMEs to adopt digitalisation. This will provide incentives for SMEs to digitalise their operations and trade channels by providing grants and loans under the RM100 million SME digitalisation matching grant, RM500 million SME technology transformation fund and RM100 million smart automation grant initiatives.

In addition, MDEC will also collaborate with MyCreative Ventures and other industry partner to assist the digital creative content industry for a post Covid-19 recovery programme through programmes and soft loans.

The agency revealed that RM35 million has been allocated to the industry and it will release the details soon.

Meanwhile, RM25 million has been allocated for the global online workforce (Glow) programme which aims to train Malaysians to earn income as freelancers for jobs in the global digital economy.

MDEC CEO Surina Shukri said as the world pivots online due to the preventive measures, it has continued to support the people, businesses and build investors’ confidence by ensuring the nation embraces digital adoption and innovation.

“To the people, businesses and communities that are looking forward to further support within the digital space, I encourage you to step up and take this opportunity, regardless of your background and nature of the business to be part of this digital ecosystem as the nation recovers from this pandemic.

“Penjana is that much-needed boost to restore incomes, lifestyles and provides assistance for us to overcome the current challenges and look firmly to the future,” she said in a statement.