MSC firms post 18% growth in export sales

Latest progress: Yasmin (left) and MDEC chief operating officer at the briefing on MSC Malaysia 2016 performance.

KUALA LUMPUR: Multimedia Super Corridor (MSC)-status companies recorded a steady 18% growth in export sales, contributing RM19.1bil in revenue last year.

Companies of the creative content and technology (CCT) cluster involved in digital animation and intellectual property works garnered the highest growth in export sales, with a contribution of RM1.17bil to the total export sales in 2016.

Malaysia Digital Economy Corp (MDEC) chief executive officer Datuk Yasmin Mahmood said the CCT cluster contribution was a sizeable one, seeing that it surpassed the RM1bil mark last year.

“It is encouraging to see positive growth across all clusters.

“Apart from the CCT cluster, the Infotech cluster growth surpassed the Global Business Services cluster with a 26% growth, recording the highest contribution to growth yet,” said Yasmin at the MSC Malaysia 2016 performance announcement.

In addition, MSC-status companies gathered new investments of RM16.3bil last year, of which RM6.43bil were from new investors.

The new investments reflected a 40% increase from 2015.

Meanwhile, investments from existing investors amounted to RM9.84bil, which was deemed promising despite the current challenging economic landscape.

These investments were equally from domestic direct investment (DDI) and foreign direct investment (FDI), though DDI grew slightly more than FDI last year.

Last year, there was a 10-fold increase in investments for niche focus areas since 2014.

These niche focus areas, considered the key growth areas in technology, include e-commerce, Internet of Things (IoT), cloud and data centre, as well as big data analytics and security.

The four focus areas contributed RM3.7bil to total export sales last year, a 38% growth from 2015.

“E-commerce had the highest growth, followed by big data and analytics.

“The segment saw favourable growth last year, which brings us a step closer towards our vision of doubling the e-commerce growth rate and reach a gross domestic product (GDP) contribution of RM211bil by 2020.

“With the e-commerce roadmap in place, we believe we can achieve this goal,” said Yasmin.

In 2015, the Malaysian digital economy contributed 17.8% to the nation’s GDP.

MDEC targets for digital economy segment to contribute 20% of Malaysia’s GDP by 2020.

“We are not just providing market access. Instead, MDEC’s role is also to identify talent, distribution channels, matching of mentors, establish footprints in new geographical regions as well as obtain funding,” Yasmin added.

With 2017 dubbed as the Year of the Internet Economy, MDEC continues to drive a sustainable digital economy through adapting and diversifying MSC Malaysia Cybercentres, through the setting up of new digital hubs.

The Malaysia Digital Hub, with more details to be announced next month, will act as a catalyst to build a robust start-up ecosystem, seeking to optimise locations to attract and maintain start-up ecosystems with the necessary hard infrastructure offerings, such as high-speed broadband, to enable Internet economy growth.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

Did you find this article insightful?


Next In Business News

Bursa recoups nearly all its losses as KLCI climbs above 1,600
UiTM Solar Power Dua plans RM100m green SRI Sukuk
Malaysia to charge Top Glove over worker accommodations, government says
Banks demonstrate resilient credit portfolios, S&P Ratings says
Quick take: Press Metal climbs to record, aluminium prices at two-year high
Malaysia records RM109.8b approved investments in Jan-Sept
Nikkei ends near 29-1/2-year high on vaccine, stimulus hopes
Singapore central bank urges prudence in property purchases
All EPF branches to open from Wednesday
Sime Darby divests three river ports in China for RM181.1m

Stories You'll Enjoy