The views expressed in this presentation are the views of the

author and do not necessarily reflect the views or policies of

the Asian Development Bank Institute (ADBI), the Asian
Development Bank (ADB), its Board of Directors, or the
governments they represent. ADBI does not guarantee the
accuracy of the data included in this paper and accepts no
responsibility for any consequences of their use. Terminology
used may not necessarily be consistent with ADB official
terms.

SME DIGITALISATION

1
 Championing Malaysia’s
Digital Economy
We are MDEC, the Malaysia Digital Economy Corporation.
Our role is to build a vibrant digital economy and ensure that
Malaysia plays a leading part in the global digital revolution.
We are passionate about digital technology and its potential to
transform the future of our nation and the world.

Through attracting technology investment, supporting technology

champions and helping Malaysian organisations and talent to
embrace digital, we are fuelling a sustainable digital ecosystem
that will drive nation’s digital economy forward.

MDEC. Connecting business and

people to their digital future

2
 DRIVING BUILDING CATALYSING PROPAGATING
INVESTMENTS LOCAL TECH DIGITAL DIGITAL
CHAMPIONS INNOVATION INCLUSIVITY
ECOSYSTEMS

OUR FOCUS PILLARS

3
 Regional 4

eFulfillment Hub
• Phase 1: Collaboration
between Lazada &
Digital Free Trade Zone Pos Malaysia at KLIA Digitalizing Trade
Aeropolis
• Phase 2: JV between Facilitation
MAHB & Cainiao for
• End-to-end cargo
on 60-acre land at
clearance from 6 hrs to 3
KLIA Aeropolis
hrs, with 90% SLA
• Improved cargo terminal
Enabling SMEs operations from 4 hrs to
for Global Trade 1.5 hrs

• Flag-off of >3,500 • Leveraging machine-

learning capabilities for
Malaysian SMEs
data insights
• Expanding market
reach & increased
export
opportunities
 MALAYSIAN SMEs GOING GLOBAL via DFTZ
PBH MUSIC ART SOUND AND YAN MING RESOURCES
AFIQ TRADING CO
LIGHTING SDN BHD SDN. BHD.

• Location: Terengganu • Location: Selangor

• Products: Traditional musical
instruments (Gamelan,
Caklempong) Guitars,
Percussions
• Achieved sales of USD30,000 to
USA after two months
• Products: Raw & clean birds nest
and botted birds’ nest
• Achieved savings of RM100k via
the VIP exchange rate on
Alibaba.com, export to China
• Location: Sabah
• Products: Fresh Coconut
• Export to Poland, of 2
containers of fresh coconuts to
Poland worth USD14,000

ONLINE SALES(BEFORE) ONLINES SALES (AFTER) ONLINE SALES(BEFORE) ONLINES SALES (AFTER) ONLINE SALES(BEFORE) ONLINES SALES (AFTER)

RM 0 RM122,300 RM2.4M RM10m RM 0 RM57,600

 6

eUSAHAWAN:
EMPOWERING THE PEOPLE THROUGH DIGITAL ENTERPRENEURSHIP
INSTITUTIONALISING DIGITAL ENTREPRENEURSHIP THROUGH FORMAL
7

& INFORMAL EDUCATION

Educational
Youth Institutions
Micro-entrepreneurs
Integrated into MPU subject KOLEJ UiTM Delivered short courses
KOMUNITI UUM
POLITEKNIK KUPTM
MARA TVETS - UMK
IKM, KKT, KPM UniKL
KPTM. KPM UNIMAS

Strategic Partners
MARA TEKUN
AIM AADK
MOA JPOKU
KPWKM PERHEBAT
KKWKK FELDA
JAKOA ANGKASA
JTK PENJARA

• Curriculum focuses on Digital Commerce (via social media) and eCommerce

• Training deployment via ToT approach and online learning
• High potential participants coached and facilitated to onboard eCommerce platforms
FINTECH
INDUSTRY DEVELOPMENT AND DIGITAL INCLUSION

8
MALAYSIA’S OPPORTUNITY AND ASPIRATION

MALAYSIA AS
AN EMERGING FINTECH FOR ISLAMIC
REGIONAL HUB BANKING AND FINANCE

FINTECH FOR DEVELOPING

ECONOMY

“FinTech offers Malaysia the opportunity to cement itself as a global centre for Islamic
finance and increase its role in the global financial system therefore Bank Negara’s
focus on this area is absolutely right”
Alex Malley, chief executive of CPA Australia, New Straits Times [20 September 2016]
 2018 INITIATIVES : ORBIT Please email jun.wen@mdec.com.my
for collaboration/partnership
Private Public Partnership investment, driven by MDEC

DIGITAL
ORBIT ACCELERATORs FINTECH ACADEMY
INCLUSION
• Work space for startups, • Nurturing Global scale-ups • Graduate Programmes • UNCDF Financial
professionals & and Local startups Innovation Hub at ORBIT
• Executive
corporates • Local and foreign Intrapreneurship • Assist and facilitate in
• International branding for Investments for FinTech programmes adoption of financial
Fintech Malaysia startups • Supercharger services by population
• Product placements • 1337, UNCDF & Accelerator program pockets
Supercharger

In Collaboration with Bank Negara Malaysia, Securities Commission, Financial Institutions

UNCDF digital transformation programme

Markets Population (in Mn) Banked Population (%) Debit card usage(%) Mobile Penetration (%) Challenge old
business models
Malaysia
32 85 34 140

Use customer data

to design solutions

Benefit from the

‘smartphone’ surge

Provide low cost

solutions

Collaborate with
financial
Please email jun.wen@mdec.com.my institutions

for collaboration/partnership Reach out to the

unbanked and
underbanked using
technology

11
Inclusion, innovation and the Digital Finance Innovation Hub in Malaysia

Please email jun.wen@mdec.com.my for

collaboration/partnership
UNCDF
Accelerating innovation in digital financial services with new or improved solutions that
empower the daily lives of low and moderate-income people
Pillar 1: incubating and Pillar 2: Pillar 3:
accelerating innovation Creating a culture of facilitating learning and
innovation sharing
Support ideas at different levels of Drive community of practice Enable knowledge sharing and peer learning
innovations for the LMI segment through through a Learning Hub and through different
Digital Finance Innovation Hub Empower champions tools

Technical and capital assistance
Provide access to the right tools
Create a safe space for experimentation
Impartial and expert knowledge center that
facilitates and disseminates information
South-South co-operation and positioning
Malaysia as a regional fintech hub

Programme in Malaysia launched in 26th September 2018

First Accelerator to be launched in October 2018
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Customer-centric approaches: understanding the users

In-depth consumer insights research with B40 and M40 people in Malaysia

Understanding their digital lives Business

Market Insights
Insights

Understanding their financial

lives, their pain points and their Product
financial needs Innovations
Knowledge
Dissemination
and Sharing
Taking these insights to fintechs
and partners to help them design
meaningful products and solutions
to meet people’s needs Channel
Partnership Strengthening
Models

13
 Ng Jun Wen
Advocate, Builder, Architech,
Fintech
THANK YOU
For more info, go to jun.wen@mdec.com.my
www.mdec.my
@ngjunwen

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