KUALA LUMPUR: The adoption of 5G technologies will have the potential to increase Malaysia's gross domestic product (GDP) by 5% or RM122bil by 2030 and support the creation of 148,000 jobs, according to a forecast by Ernst & Young Consulting Services Sdn Bhd (EY) in a recently published report.
The report entitled “Estimating the economic impact of the Single Wholesale 5G Network in Malaysia” was published by Digital Nasional Bhd (DNB) in conjunction with the National Digital Economy and 4IR Council meeting chaired by the Prime Minister recently.
The forecasts in the report were based on data sources from the Department of Statistics Malaysia and EY third-party data sources as well as qualitative interviews with industry leaders.
EY's UK-based economic advisory team developed the economic models used in the report as well as assisted in its production.
According to the report, the projected increase in GDP will be driven by improvements in efficiency and productivity following the digital transformation enabled by 5G use cases.
There will also be an expected expansion of digital industries and the entry of new firms to the market, which will also contribute to GDP growth.
"The uplift of GDP and creation of jobs are expected to begin with the rollout of the single wholesale 5G network (SWN) in 2021, steadily increase in the years to 2030, and extend beyond 2030," said DNB in a Nov 16 statement.
Meanwhile, the report projected that DNB's direct investment in the 5G network could generate an additional GDP contribution of RM20.9bil.
"Of this, an estimated RM7.9bil (or 38%) relates to the GDP generated directly by DNB through its expenditure on operating and corporate costs, with RM13bil generated throughout the supply chain and wider economy," said DNB.
It added that the investment could generate over 14,800 jobs at the peak of its deployment in 2022 due to the increased demand placed on the sector's suppy chain.
"Thus, the overall impact on the economy will be generated by private investment as the cost of deploying the 5G network will be funded entirely by the private sector through DNB, with no government allocation, funding or guarantees involved," it said.
According to DNB, the report highlights that SWN will help bridge the digital divide and provide a more level playing fields in terms of connectivity, as it provides accelerated access to high-quality broadband connection, especially in rural areas.
"Bringing connectivity to rural areas will improve inclusivity, provide more opportunities for education, skills development and employment, as well as improve access to essential healthcare services.
"This will help in driving rural economic growth and provide rural businesses with more opportunities to scale up by accessing online markets," it said.
The report entitled “Estimating the economic impact of the Single Wholesale 5G Network in Malaysia” was published by Digital Nasional Bhd (DNB) in conjunction with the National Digital Economy and 4IR Council meeting chaired by the Prime Minister recently.
The forecasts in the report were based on data sources from the Department of Statistics Malaysia and EY third-party data sources as well as qualitative interviews with industry leaders.
EY's UK-based economic advisory team developed the economic models used in the report as well as assisted in its production.
According to the report, the projected increase in GDP will be driven by improvements in efficiency and productivity following the digital transformation enabled by 5G use cases.
There will also be an expected expansion of digital industries and the entry of new firms to the market, which will also contribute to GDP growth.
"The uplift of GDP and creation of jobs are expected to begin with the rollout of the single wholesale 5G network (SWN) in 2021, steadily increase in the years to 2030, and extend beyond 2030," said DNB in a Nov 16 statement.
Meanwhile, the report projected that DNB's direct investment in the 5G network could generate an additional GDP contribution of RM20.9bil.
"Of this, an estimated RM7.9bil (or 38%) relates to the GDP generated directly by DNB through its expenditure on operating and corporate costs, with RM13bil generated throughout the supply chain and wider economy," said DNB.
It added that the investment could generate over 14,800 jobs at the peak of its deployment in 2022 due to the increased demand placed on the sector's suppy chain.
"Thus, the overall impact on the economy will be generated by private investment as the cost of deploying the 5G network will be funded entirely by the private sector through DNB, with no government allocation, funding or guarantees involved," it said.
According to DNB, the report highlights that SWN will help bridge the digital divide and provide a more level playing fields in terms of connectivity, as it provides accelerated access to high-quality broadband connection, especially in rural areas.
"Bringing connectivity to rural areas will improve inclusivity, provide more opportunities for education, skills development and employment, as well as improve access to essential healthcare services.
"This will help in driving rural economic growth and provide rural businesses with more opportunities to scale up by accessing online markets," it said.
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