Page 196 - Contributed Paper Session (CPS) - Volume 8

CPS2237 Fadzilah Aini Mutaffa et al.
According to UNCTAD (2017), digital economy evolving is a result of the
development and use of new technologies and innovations over several
decades. Characterisations of the digital economy began in the mid-1980s
with mass-produced personal computers (PCs). This was followed by advanced
on manufacturing computerised in the 1990s and e-commerce and offshoring
in the 2000s.
The digital economy has driven economic interests and policymakers to
gauge the importance and impact on the economy. Malaysia Digital Economy
Corporation (MDEC) is the lead agency in driving the digital economy in
Malaysia. In 2011, MDEC launched the Digital Malaysia Initiative with the goal
of national Digital Transformation. It is one of the initiatives of the
transformation by the Malaysian government. The Prime Minister has
mandated to MDEC on 19th October 2011 during the 23rd MSC
Malaysia Implementation Council Meeting (ICM) to set up Malaysia Digital
Economy Satellite Account (DESA). The establishment of DESA consists of an
ICT Satellite Account (ICTSA) and other indicators to build the complete
picture of the impact of digital transformation.
In accordance with this revolution, Department of Statistics, Malaysia
(DOSM) took the initiative to study and compile the holistic ICT Statistics
through the framework of satellite account. Referring to the Eleventh Malaysia
Plan 2016-2020, the share of ICT industry to GDP was targeted at 18.2 per cent
or approximately RM324.9 billion by 2020. ICTSA is a statistical framework
which provides the detail transaction of supply and use of ICT products. The
purpose of compiling this statistic is to present the contribution of ICT industry
inclusive of e-commerce to Malaysia’s economy.

2. Malaysia’s government initiative towards the digital economy
Malaysia economy has started to shift from a resource-driven economy
towards knowledge based since the 1990s as mention in Eleventh Malaysia
Plan, 2016-2020. It will focus on ICT as an imperative enabler for a knowledge
economy, especially in the areas of industry, infrastructure, human capital and
digital inclusion. Various ICT initiatives have been implemented in the effort
to transform the country into an innovative digital economy.
The initiative to develop ICTSA was documented under the DOSM
Corporate Plan 2004-2009 and it was continued presented in Strategic Plan
2010-2014. Therefore, DOSM collaborated with other government agencies
such as Ministry of Finance (MOF), Economic Planning Unit (EPU), Ministry of
Communication & Multimedia Malaysia (KKMM) and MDEC; to set up an
InterAgency Technical Working Group. All input requirement such as
definitions, methodology and data sources are discussed in this committee.
The first ICTSA report was published with limited circulation among
committee members and main stakeholders in December 2012. The ICTSA

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