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MDEC marks 20th anniversary with record high new investments, export sales, and changes name

AvantiKumar | April 13, 2016
Now known as Malaysia Digital Economy Corporation, MDEC's Dato' Yasmin said 2015 'exceeded expectations' for Malaysia's Digital Economy goals.

Dato' Yasmin Mahmood, CEO MDEC

Photo - Dato' Yasmin Mahmood, CEO, Malaysia Digital Economy Corporation (MDEC) unveils MDEC's 2015 achievements.

Malaysia's national ICT agency MDEC has marked its 20th anniversary by announcing record high new investments and export sales achieved in 2015, and also changed its name from Multimedia Development Corporation (MDeC) to Malaysia Digital Economy Corporation (MDEC).

Speaking to media in Kuala Lumpur, MDEC's chief executive officer Dato' Yasmin Mahmood said the agency's brief of driving the nation's digital economy was on track as it registered a growth of 56 per cent in Approved Investments and Foreign Direct Investments (FDIs) in 2015.

Total investments inflow from MSC (Multimedia Supercorridor) Malaysia companies reached RM19.8 (US$5.10) billion last year, said Yasmin, adding that agency recorded highest increase in new investments since MSC Malaysia's establishment in 1996 (RM4.6 [US$1.19] billion in 2015).

"2015 was a significant year for us," she said. "New investments inflow reached a 20-year record high and for the first time ever, export sales for MSC Malaysia exceeded our expectations. MSC Malaysia's performance and growth is testament to the progress we are making in executing our Digital Economy strategy as well as boosting investors' confidence and faith in our local ICT industry."

Export sales were the highest in 10 years, she said. Export sales from MSC Malaysia companies contributed RM16.2 (US$4.18) billion from RM13.7 (U$3.53) billion in 2014, an 18 per cent increase. The Global Business Services (GBS) cluster contributed the highest (69 per cent) to the overall export sales.

"Local MSC Malaysia companies showed promising growth in 2015, as export sales increased by 9 per cent (RM3.7 billion [US$]," added Yasmin. "We are proud to share that MSC Malaysia recorded the highest increase in overall export sales since 2010."

Regional and global markets

In addition, seven more local companies crossed the RM100 (U$25.77) million revenue mark. "This is an important milestone for MDEC in championing local MSC Malaysia companies as they tap regional and global markets. It is encouraging to see our local tech icons grow stronger year-on-year and contribute back to our economy."

New growth areas in 2015 included the Internet of Things (IoT), Cloud & Data Centre, Big Data Analytics (BDA), Security and eCommerce. These focus areas contributed about 10 per cent (RM1.65 billion [US$430 million]) to the total export sales last year.

"Our efforts in the last two years in these focus areas have started to show very encouraging results. Our Cloud & Data Centre focus area saw the most promising growth last year," said Yasmin.

Meanwhile, the animation sector recorded a significant growth in exports (52 per cent growth). This was bolstered by companies such as Animonsta, Giggle Garage, Tau Films, Les Copaque and others.
The Games sector has grown rapidly from a small base, with a six-fold increase in year-on-year growth in export sales.

Looking ahead, MDEC will include focus into four areas that lie within Digital Malaysia goals. This are:
· Driving Investments: Attract more foreign direct investments into the country with MSC Malaysia status offerings
· Growing Local Technology Champions: Increase efforts to accelerate local MSC Malaysia companies to be competitive globally
· Catalysing Digital Innovation Ecosystems: Expand opportunities in focus areas such as eCommerce, Cloud, Creative Technology, Internet-of-Things (IoT) as well as Big Data Analytics (BDA). The Talent ecosystem then serves as a key imperative to support the development of these focus areas
· Digital Inclusivity (Merakyatkan Ekonomi Digital): Drive the 'inclusive' approach of encouraging Malaysians from all walks of life to earn additional income through digital means via the eRezeki and eUsahawan initiatives.


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