Current magazine

Malaysia at tipping point of digital economy


International Data Corporation (IDC) ASEAN announced 10 predictions for 2018 and beyond at its FutureScape event recently. The event highlighted technology trends and key imperatives that will impact the strategic decisions of business leaders on digital transformation.

“To lead in a fully-scaled DX economy, organisations must become digital native enterprises (DNE),” said Pranabesh Nath, research director, IDC Malaysia. “A DNE can scale its business and innovate at a pace that is an order of magnitude greater than traditional businesses.”

IDC’s predictions primarily focus on the four pillar technology areas: cloud, mobility, social, and big data analytics; and six innovation accelerators: augmented and virtual reality (AR/VR), cognitive/AI system, next-gen security, Internet of Things (IoT), 3D printing, and robotics.

The top 10 predictions that will impact Malaysian organisations in 2018 and beyond are:

  1. Digital economy tipping point. By 2021, at least 20% of Malaysia’s GDP will be digitised, with growth in every industry driven by digitally-enhanced offerings, operations and relationships. By 2020, investors will use platform/ecosystem, data value, and customer engagement metrics as valuation factors for all enterprises.
  2. DX platforms. By 2020, 28% of all enterprises in Malaysia will have a fully articulated organisation-wide DX platform strategy and will be in the process of implementing that strategy as the new IT core for competing in the digital economy.
  3. Cloud 2.0: distributed and specialised. By 2021, Malaysian enterprise spending on cloud services and cloud-enabling hardware, software, and services will reach US$621m, with a diversified cloud environment comprising 15% at the edge; over 20% specialised (non-x86 compute); and 50% multi-cloud.
  4. AI everywhere. By 2019, 30% of DX initiatives in Malaysia will use AI services. By 2021, 50% of commercial enterprise apps will use AI, over 20% of consumers will interact with customer support bots, and over 20% of new industrial robots will leverage AI.
  5. Hyper-agile apps. By 2021, Malaysian enterprise apps will shift toward hyper-agile architectures, with 50% of new application development on cloud platforms (PaaS) using microservices and cloud functions, such as AWS Lambda and Azure Functions, and over 40% of new microservices deployed in containers, such as Docker.
  6. HD interfaces. By 2020, human-digital interfaces will diversify in Malaysia, as 15% of field-service techs and over 15% of info-workers use augmented reality, nearly 20% of new mobile apps use voice as a primary interface, and 15% of consumer-facing M1000 use biometric sensors to personalise experiences.
  7. Blockchain and digital trust. By 2021, at least 10% of Malaysian enterprises will use blockchain services as a foundation for digital trust at scale. By 2020, 20% of banks, 10% of supply-chain, and 5% of healthcare organisations will use blockchain networks in production.
  8. Everyone is a data provider. By 2020, 15% of Malaysian enterprises will generate revenue from data-as-a-service, from the sale of raw data, derived metrics, insights, and recommendations, up from virtually 0% in 2017.
  9. Everyone is a developer. Improvements in simple (low- or no-code) development tools will dramatically expand the number of non-tech developers over the next 36 months in Malaysia. By 2021, these non-traditional developers will build 20% of business applications and 30% of new application features. This is expected to hit 60% by 2027.
  10. Open API ecosystems. By 2021, more than a quarter of Malaysian enterprises will see an average of 15% of their digital services interactions come through their open API ecosystems, up from virtually 0% in 2017. This will amplify their digital reach far beyond their own customer interactions.

For more information, visit


About Author

Leave A Reply