Digital workers wanted
The Malaysian Employers Federation has warned that disruptive tech will lead to more retrenchments. Are we in trouble?
DISRUPTIVE tech will change the way societies live, work and play.
It’s one of the many enablers of the digital economy that is reshaping the world as we know it. In Asia, the disruption is significant, says Malaysia Digital Economy Corporation (MDEC) CEO Datuk Yasmin Mahmood.
Our region is among the fastest growing globally, impacting all sorts of consumer behaviour, from how we purchase goods and services to the ways in which we consume information and entertainment, and how we engage in social networking.
“Although rapidly growing, disruptive tech here is still very new compared to our neighbours. The ability to unlock value from digital economy is far from being fully exploited. That’s why now is the best time for the country to sprint to the front of the race,” Yasmin believes.
Disruptive tech multiplies growth in the digital economy. It optimises digital investments, resulting in higher productivity and growth, she explains. By 2020, 25% of the world’s economy is expected to be digital.
“Tech is changing the rules of business, and disruption is becoming the norm. Future-proof your business now. Accept that change is coming, embrace the disruption early, understand how it’ll change your playing field, and build a game plan. Business leaders must get ahead of the curve before it’s too late,” she advices.
MDEC’s Global Acceleration and Innovation Network (GAIN) initiative was launched last year to turn local high-potential tech companies into global players with annual revenue exceeding RM100mil. Under the programme, tech disruption was identified as an area companies need help in.
And like it or not, disruptive tech is here to stay, National ICT Association of Malaysia (Pikom) chairman Chin Chee Seong points out.
“The biggest and most common disruptive tech is the smartphone. It has made cameras obsolete and changed the channel and style of communication. And, e-commerce – a disruptive business model – makes cross-border retailing a dream come true,” Chin adds.
“Businesses know that the world has changed and that they must adapt or risk losing their edge and relevance.
“The challenge is to see how to apply disruptive tech to stay ahead of the competition,” says Chin.
“We have an advantage over our neighbours because Malaysia has a vibrant ICT industry, a cost-effective environment, comparatively good English-language communication skills, and, most importantly, a supportive government,” he notes.
“Skilled, savvy and knowledgeable disruptive tech workers will attract companies to invest here.
“The ‘Age of Disruptive Tech’ doesn’t have a shelf-life. Whether or not you adopt it, you must be aware of the impact and implications of your decision.
“Are we in danger of always looking out for the next new tech and innovation to the extent of forgetting to reap the rewards of earlier tech adoption?
“Are disruptive technologies good? It depends on your adoption appetite and pace. Nevertheless, businesses and government leaders must keep abreast of this as well as the new technologies that are coming in.”
The country’s broadband connection has improved, resulting in more startups and online businesses. But the government must ensure that rural communities aren’t left behind in the digital economy rat race.
“Smart phones must be affordable for rural communities. Once broadband access is improved, they can access the mobile apps created. This will help improve their lives and get the youngsters to become more tech savvy,” Chin points out.
There are already a number of Malaysian startups in the market so there’s a lot of interest in tech. The fact that worldwide, there are some successful startups that have gone public or have been acquired by bigger companies, could be a driving factor, he adds.
“Most startups only last between a few months and a year but because the founders are young, brave enough to endure risks and are hungry for success, they learn from their mistakes and go on to form new startups.”
Chin’s excited about what the year holds. Many financial tech (fintech) startups are disrupting things positively.
“It’s time we move up the value chain. We’ve been relying on foreign workers for far too long. There’s a lot of interest in mobile app development among undergraduates and they aren’t necessarily from an IT discipline. Most youngsters are savvy in digital tech.
“Disruptive tech has a wide appeal as the solutions offered are useful and essential to people from all walks of life. So there’s definitely a market for such solutions.”