Businesses need to bolster digital economy – PM

KUALA LUMPUR: The adaptation of digital economy and continuous innovation have proven to be the need of the time to generate jobs and for businesses to remain relevant amid the unprecedented challenges following the health pandemic, said Tan Sri Muhyiddin Yassin.

The Prime Minister said innovation and digitalisation are fundamentals within this context, as these enablers not only facilitate efforts to reinvigorate economic activities, but also safeguard the health and wellbeing of the people.

He said the Covid-19 pandemic has shown that technology can step-in and sustain communities even when the movement is restricted.

“However, without sufficient infrastructure and close cooperation between the public and private sectors, we run the risk of excluding vulnerable groups due to their lack of access to digital tools.

“Promoting digital inclusion and narrowing the digital divide by increasing investments in ICT (information and communication technology) infrastructure for these groups is therefore, a must,” he said in his keynote address at the virtual APEC CEO Dialogues 2020 yesterday.

Currently, APEC economies comprise approximately 60 per cent of global gross domestic product (GDP), half of the world’s global trade and 40 per cent of the world’s population.

Muhyiddin said continuous innovation is beyond mandatory in the era as it is a prerequisite for businesses to remain relevant.

Inventive, or at times, cutting-edge adoption and application of digital technologies is the very foundation upon which innovative business models are built and these digital technologies are pivotal in supporting and enhancing the value proposition of businesses and entrepreneurs, he noted.

The Prime Minister also emphasised the priority of inclusive economic growth to ensure that no one is le behind.

“We must continue to adopt economic approaches that place a specific emphasis on women and youth: the backbone of the region’s economy,” he said.