OVERVIEW
"Digital”
The ICT subsector has evolved beyond being a mere collection of technological tools. It is a socio-economic enabler, as well as a key driver of business transformation. The ubiquity of ICT’s pervasiveness and characteristics has evolutionised society as well as the economy. ICT continues to stimulate and drive whole industries and is recognised as one of the most dynamic and fastest growing economic segments in Malaysia. The subsector remains vibrant and subject to new and exciting trends, such as the emergence of next generation technologies in the form of big data analytics (BDA), the Internet of Things (IoT), cloud computing, as well as mobility and social media solutions.
Productivity Performance
In terms of annual labour productivity per employee and per hours worked, the compound annual growth rate (CAGR) from 2017 to 2022 is 2.13% and 3.20% respectively. In the year 2022, annual labour productivity per employee grew slightly by 1.2% in comparison to 3.7% in the year 2021.
Challenges
- Workforce: Shortage of ICT professionals
- Technology: Connectivity perceived to have lower speed and quality than neighbouring countries.
- Technology: Cost of broadband is relatively high.
- Business Environment: Fragmented initiatives and lack of centralised agency.
- Impact of COVID-19 on digital adoption.
