Page 200 - Contributed Paper Session (CPS) - Volume 8

CPS2237 Fadzilah Aini Mutaffa et al.
4. Main Findings of ICTSA 2017
DOSM have released the ICTSA annually and the latest publication was
ICTSA 2017. The contribution of ICT to the national economy recorded value
of RM247.1 billion in 2017 registering a growth of 10.3 per cent (2016: 8.7%).
ICT contributed 18.3 per cent to GDP comprising of Information and
Communication Technology Gross Domestic Product (ICTGDP), 13.2%
(RM178.2 billion) and e-commerce for non-ICT industries, 5.1% (RM68.9
billion) as shown in Exhibit 3.

5. Challenges
Even though at the moment, DOSM is measuring the digital economy
through ICTSA, the initiative to compile DESA is under study, by exploring its
scope, coverage and methodology. DOSM is facing various challenges in
measuring the digital economy as per stated below:
a. The definition has not been internationally agreed
There are many definitions is being used to define the digital economy
worldwide. Nevertheless, none of the definition has been finalized and
commonly understood. Most of the countries are trying to measure it based
on the availability of the data that they can obtain in the ICT field and the
components of each differ by country. Therefore, we need to have a standard
definition for digital economy to measure the satellite account which can be
internationally comparable.
b. Classification of Digital Economy
The latest ISIC was ISIC Rev 4. The list of industries in ISIC Rev. 4 may not
evolve as fast as digital technology. It is difficult to identify the major
characteristics of the products under the digital economy and it has a mix of
digital and non–digital components. Thus, the existent statistical data (ICT/e-
Transaction/ICT Infrastructure) does not seem to reflect the digitalized
economy split of e-commerce from traditional sales. DOSM is using Malaysia
Standard Industrial classification (MSIC) to classify the ICT Industries and
Malaysia Classification of Products by Activity (MCPA) to classify the ICT
Products which is in concordance with ISIC and Central Product Classification
(CPC). Therefore, Malaysia is looking forward for a comprehensive
classification of industries and products in the digital economy.

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