Penang has experience 2 growth transformation to become a successful industrialized economy. Penang’s economy targeted to move up the value-chain by driving the 3 rd growth wave of digital economy.
Penang is moving fast to another level of success in the shared services outsourcing (SSO) industry. The Penang State Government, in envisioning the great potential of the SSO industry, launched the Information Technology Business Process Outsourcing (IT-BPO) Hub in Bayan Lepas to attract global leaders in the SSO Industry to establish their presence in Penang. The IT-BPO Hub in Bayan Lepas that is the first of its kind to be established in Malaysia is a milestone achievement for Penang.
It is evident that Penang indeed is an ideal incubator for many IT and digital startups. Over the last 12 years, Penang has been the birthplace of the largest hosting provider in Malaysia, Exabytes; and the Asian’s leading online employment marketplace, Jobstreet.com. Off course there are many well-known startups here that you could find there. It is crowned as “Silicon Valley of the East” for the apparent reasons.
Digital economy is about the economic activity that results from billions of everyday online connections among people, businesses, devices, data, and processes. The backbone of the digital economy is hyperconnectivity which means growing interconnectedness of people, organisations, and machines that results from the Internet, mobile technology and the internet of things (IoT). It is about using the latest technology to do what you already do – but better.
It is said that digital transformation will contribute US 10 billion dollar to Malaysia GDP by 2021. How does digital economy can boost Penang’s growth?
Customer Experience with Digital Marketing in Penang, Malaysia In this digital age, customers choose to interact with business whenever and wherever they are in a fashion that is convenient for them. In addition, customer desires to interact with brand with experience that is seamless and personalized. With digital deployment in their business, Penang business would give customer better buying experience; hence translates to better customer retention rate. Digital Marketing in Malaysia becomes important more than ever.
Better business decision.
How enterprises securely share data in real time to enable next-generation commerce applications to thrive is the key for success. The digitisation of everything is creating new intelligent digital networks of networks that fundamentally change the way commerce is managed, optimised, shared, and deployed. The more data you have the higher success rate that you could generate leads and result in higher rate of sales closing.
Adapt to the future of work.
The next generation of business is about work from different office, homes or even coffee shops. This allows flexibility and also scaling of business. This translate to more happier employees, and better productivity. Business operation is longer limited to location. Business in Penang no longer to be bound to local. Penang’s brands could go national and even international with the digital platform ready on digital economy. There are marketplaces they can choose from to market and deliver the products beyond your own territories.
Creating Job opportunities
It is believed that digital economy will generate more than 85,000 new jobs in Penang alone. New digital and IT skills are required to spur the digital economy in the state. Initiatives on ensuring digital economy in Penang shown that Penang state government and Malaysia is committed for the digital transformation here in Penang. With the vision to encourage the growth of digital economy, Malaysia Multimedia Development Corp (MDEC) through MSC Malaysia has set up Cybercities and Cybercentres in Penang.
Based on the concept of industry clustering, companies of similar industries are placed within the same geographical area to fuel economic growth. These companies are also housed within a facilitative eco-system to build their businesses in line with the vision of a developed digital economy. This creates healthy competition amongst businesses, encouraging innovation and development while raising competencies on a national and regional level.With access to world-class infrastructure, MSC Malaysia attracts local/global investors and supports a robust local start-up ecosystem.
MDEC also announced in November 2017 that the first Digital Hub outside Kuala Lumpur will be set up in Penang. Malaysia Digital Hub is tailored for startups and internet economy companies. Malaysia Digital Hub provides rich ecosystem components inclusive of high speed broadband and abundance of soft infra offerings. As a Cybercentre, Malaysia Digital Hub will offer the same 10 MSC Malaysia Bill of Guarantees to MSC Malaysia status companies.
What is crucial now is educating SMEs in Penang by reskilling and training to help them understand and accept this concept of digital economy. It is not a choice for them but a necessities to cater the next generation of consumers who are nothing but digital savvy.