Indo-Pacific Analysis Brief Vol 23
A New Source of Growth for Malaysia: Digital Trade and the Digital Economy
July 2021
Dr Juita Mohamad
Key Messages
→ Digital trade has been vital for the survival of Malaysian businesses affected by COVID-19 lockdowns
→ By transitioning to online platforms, micro, small and medium enterprises have been able to reduce revenue losses and maintain jobs
→ Digital trade presents great potential for Malaysian economic growth, particularly as it aspires to become a high-income economy
→ The Malaysian government seeks to prioritise the digital economy in post-pandemic recovery with the allocation of funds towards digitisation and automation across various sectors
→ Government support for MSMEs is essential to overcome challenges and facilitate growth to build a strong and resilient digital economy

