Embracing digital economy is strategically important for our nation – Guan Eng

KUALA LUMPUR: The development and success of the digital economy cannot be relied solely on the role of the government, said Minister of Finance Lim Guan Eng.

He said, it could only be achieved through a collaborative approach by relying on 4P partnership involving the Public, Private, Professionals and the people to manage and steer the specific initiatives.

“The government is exploring new funding mechanisms that would incorporate collaboration with the private sectors and this includes streamlining the venture capital funds managed by Government Agencies.

“Similarly RM2 billion will be allocated by the government linked investment companies such as Khazanah funds basis to co-invest with private equity and venture capital funds, particularly to spur strategic and new growth sectors in Malaysia,” he said at a conference here on Nov.28.

Guan Eng said that in his keynote address at the Synergistic Collaborations by Securities Commission (SC) (SCxSC) FinTech Conference 2018.

The Minister said, the theme of the conference “Embracing Technology” is very apt to encourage financial institutions and start ups to further explore the use of cutting edge technology such as artificial intelligence, robotics and blockchain especially when it involves Industry 4.0.

“This is in line with the government’s agenda to promote digital technologies in all facets of the economy as well as to foster greater entrepreneurship.

“The wider adoption of this latest technology is important for Malaysia to break away from the middle-income trap and start roaring again as a proud Asian Tiger,” he added.

The four factors why the adoption of these technologies are important are it will create new business models, enhancing competitiveness, empowering the people and opening up new market.

In addition he said, the SC has regulations for digital asset or cryptocurrency exchanges and initial coin offerings (ICOs) that will come into force by first quarter of 2019.

He reiterated, this is part of SC’s effort to facilitate alternative fundraising avenues and new investment assets classes.

“I would like to reiterate what I said in Parliament that interested parties must work within the framework set up by Bank Negara and SC. Both Bank Negara and SC in terms of formulating this framework will be under the auspices of the Finance Ministry.

“Embracing the digital economy is strategically important for our nation. Events such as SCxSC is a crucial platform in educating the public, exploring new and evolving digital trends and facilitate meaningful discussions,” he said.    

Earlier Guan Eng emphasized that despite facing fiscal challenges; the government is committed to invest significant resources in nurturing the economy and expects the rise of GDP to 20% by 2020 compared to 18.2% in 2016. – Malaysia World News

   

 

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