Cyberjaya, 10 May 2021: Malaysia Digital Economy Corporation (MDEC), the lead agency driving digital investment in Malaysia is optimistic about the Big Data Analytics (BDA) market growth outlook and the significant digital investment opportunities that it can bring, especially in the data technology and service-related field.
“Asia/Pacific’s BDA industry can expect to grow at the fastest rates and in excess of 15 per cent CAGR by 2019-2024 due to increased BDA investments by many start-ups and businesses,” said Raymond Siva, Senior Vice President, Investment and Brand, and Chief Marketing Officer (CMO), citing a recent analysis by IDC Worldwide Big Data and Analytics Spending Guide 2020.
The report forecasts that the revenues for BDA solutions reached US$22.6 billion in 2020, with a year-over-year (YoY) growth of 12.0 per cent in Asia/Pacific.
The report also predicts that it is mainly due to the increasing confidence of decision-makers that investments in BDA will be necessary for achieving digital and business resiliency amid the Covid-19 pandemic.
In Malaysia, an MDEC commissioned study by IDC has forecasted the BDA market to grow in 2021 from US$ 1.1 billion to US$ 1.9 billion in 2025. Services sector will contribute 64 percent of the total data-driven spending, with the Banking and Telecommunications contributing nearly a third.
“Covid-19 has been a true game-changer in terms of demand for BDA which is backed by the surging demand for data and cloud services, both accelerating digital transformation and enabling business sustainability,” said Siva.
He said companies investing in BDA will continue to expand their presence by having Malaysia as a base for its regional and global businesses and operations to manage its core functions.
“As Asia maintains its momentum as the fastest-growing region in the world, we see investors’ confidence in Malaysia’s digital ecosystem continue to soar amidst the global pandemic. Existing companies have also started re-investing in Malaysia,” said Siva.
DataMicron Systems Sdn. Bhd., a local MSC Malaysia company and TDCX, a customer experience service provider, have started embarking on an aggressive expansion starting with BDA as part of their new investment portfolio.
BDA is central to Malaysia’s digital economy and this has resulted in the explosive growth of other digital technologies such as Artificial Intelligence, Internet of Things, Advanced Automation. To support the growth of these technologies towards 4IR, Malaysia is embarking on the implementation of national policies and plans such as the National Digital Network (JENDELA) that is paving the way for the nation to be ready for the next phase in the digital era in what we call the ‘data decade’. This will in turn require development of new skills for our workforce.
With better network connectivity, wider coverage and a better-quality broadband experience for the people, JENDELA will accelerate the growth of BDA as the country prepares for 5G technology.
Engagement of the private sector is essential in attracting the desired level of digital investment into the country. With supportive government policies and through various other MDEC-led capacity building programmes with local and international partners, MDEC has sought to better equip the local workforce with in-demand for rapid-growth digital-led jobs ranging from online content creation, data science and analytics, and programming.
All these are implemented through public-private partnership initiatives driven by MDEC, such as Premier Digital Tech Institutions (PDTIs), Industry Skills Framework (IndSF), Digital Skills Training Directory for working professionals, and Data Technology Partnership Programmes with tech giants. These programmes are introduced to further accelerate data-driven enterprises and develop digital talent which is part of MDEC’s effort to propel Malaysia into the Fourth Industry Revolution (4IR) era.
MDEC continues to strongly support talent development in this BDA area, as the agency believes it will also help Malaysia’s talent and economic players to tap into the US$13 trillion (RM53.2 trillion) revenue projected to be added by data-fuelled applications in the global economy by 2030.
About Malaysia Digital Economy Corporation (MDEC)
Malaysia Digital Economy Corporation (MDEC) is a government agency under the purview of the Ministry of Communications and Multimedia Malaysia entrusted to lead Malaysia’s digital economy forward.
Incorporated in 1996 to oversee the development of the MSC Malaysia initiative, MDEC’s primary mandate today is to accelerate the growth of digitally-skilled Malaysians, digitally-powered businesses and digital investments in Malaysia. MDEC is focused on creating inclusive, high-quality growth through the nationwide digitalisation initiatives that are in line with the Government’s Shared Prosperity Vision 2030 in line with Malaysia 5.0 and firmly establishing Malaysia as the Heart of Digital ASEAN.