Challenges in cyberspace

Moving into the digital economy, like every other industry and markets, challenges lie ahead. Some of the major problems that a nation might face when expanding the digital economy across its economic platform include regulation, cyber privacy and security, overwhelming amount exchange of data, budget constraints, digital divide among citizens, and more.

Deloitte in a report on ‘Digital government transformation’ pointed out that the government constantly deals with highly sensitive information while budget constraints can block governments from investing in the right digital solutions.

It recommended that governments should take a thorough assessment of its privacy and security, as well as instigate a risk management approach which accounts for vulnerability.

It also pointed out that a strategic budget and investments from third parties or the private sector could offset the costs that might incur to digitalise a nation.

Aside from that, it also highlighted the possibility of people displaced by digitisation to new roles. It suggested that governments should train their employees and equip them with skills to make them relevant in this transitioning stage.

Besides that, it noted that although digital accessibility has improved over recent years, governments have an obligation to be accessible to citizens and so minimising digital exclusion is critical.

It pointed out that governments should try to reduce the digital divide which might involve: improving the level of digital skills for certain groups and reducing the difficulty of using digital services, by improving user experiences.

Now, the more important question is, are Malaysians ready for a digitalised economy?

According to EY, given Malaysia’s diversified, vibrant economy and youthful population, organisations that get their digital operating models right will have significant opportunities.

“We see a strong upside in businesses undertaking digital transformation projects and participating in government delivery of more efficient and affordable digital infrastructure,” it said in its ‘Decoding the Malaysian digital DNA: From smart to savvy’ report.

EY’s Asean and Malaysia Advisory managing partner Chow Sang Hoe shared, “The high connectivity to the digital environment is redefining the consumer landscape in Malaysia.

“Consumers are demanding a safe, secure and seamless end-to-end experience supported by a more efficient and affordable digital infrastructure.

“With Malaysia’s diverse economy and young population, this presents vast opportunities for government agencies and businesses to rise to the challenge and collaborate on smart transformations that will deliver high-quality digital experiences to the consumers.

“Initiatives recently announced in Malaysia’s Budget 2017 to upgrade the speed of Malaysia’s broadband infrastructure at cost-competitive prices, as well as to establish the Malaysian Digital Hub and Digital Free Zones, are all steps in the right direction.”

As for Sarawak, are we ready to take on the challenge of being a cyber powerhouse? According to Australian Computer Society president Anthony Wong, we are already on the right track.

“We need talent and educational institutions. From my perspective, the talent is here because the educational institutions and facilities are already here.

“These two pillars are already holding up the eco-system here. But to sustain that ecosystem, there needs to be more,” he said.

Wong, who is himself a Sarawakian, added, “For Sarawak, the major ingredients are here but it needs to focus on its priorities. Sarawak needs the infrastructure.

“As a state with a small population, it needs to connect with markets across the region and the world.

“Sarawak also has the leadership to move this digital change. Based on the efforts the Chief Minister has announced, Sarawak is already on the right track.

“The next thing Sarawak needs to look at is to train its employees and the people involved in all these digitisation projects. They need to know more about the digital economy, the technologies out there, and more.”