MDEC supports Digital Free Trade Zone at KKIP
KOTA KINABALU: Malaysia Digital Economy Corporation (MDEC) is supportive of the State Government’s initiative to develop a Digital Free Trade Zone (DFTZ) at Kota Kinabalu Industrial Park (KKIP).
Its CEO, Datuk Yasmin Mahmood, said this when she led her team to pay a courtesy call to Deputy Chief Minister and Industrial Development Minister Datuk Seri Panglima Raymond Tan Shu Kiah at the latter’s office recently.
MDEC is the lead agency in driving the digital economy in Malaysia under the Ministry of Communications and Multimedia Malaysia. The agency had signed a three-way Memorandum of Understanding (MoU) with Hangzhou Municipal Government and Alibaba Company Limited to connect the first e-hubs in the two countries to Electronic World Trade Platform (eWTP) as well as to link the China (Hangzhou) Comprehensive eCommerce Pilot Zone and Malaysia’s DFTZ.
This MoU is a testament to further strengthen the collaboration between the two countries and its companies, and ultimately, to bring DFTZ to the next level.
Electronic World Trade Platform (eWTP) is the vision of Alibaba that empowers small and medium businesses around the world to engage in frictionless trade that is shared by Malaysia.
The partnership between Alibaba and MDEC is critical as they work together to create essential infrastructure for digital trade, and achieving Alibaba’s goal to serve two billion consumers; create 100 million job opportunities; and support 10 million businesses.
During the meeting, Yasmin was impressed with the ministry’s effort on developing Shared Services and Outsourcing Centre (SSO) in KKIP which is an aggressive approach adopted by the State Government to help SMEs to grow, to provide the complete supply chain to the SMEs on trading their products.
“The concept of SSO is already in line with the DFTZ requirement which provides physical part and we need the support from MDEC on the virtual part,” she said.
The virtual zones of DFTZ consist of the eServices Platform, to support internet companies, trade goods, provide services, innovate and co-create solutions. And the physical zone comprises of the eFulfilment Hub and Satellite Services Hub.
This collaboration between the ministry and MDEC will enable the State Government to be part of the Fourth Industrial Revolution or Industry 4.0 era.
Raymond also thanked MDEC for their support during the ministry’s recent event “Championing Sabah’s Digital Economy” Seminar, when the ministry had pledged to create 1,000 e-commerce entrepreneurs within one year.
The Chief Minister also announced a special grant of RM1 million to expand e-commerce activities in the State. This is in line with the State aspiration to develop Sabah’s SMEs in the digital economy.