KUALA LUMPUR – Malaysia and Australia are bringing their digital ecosystems closer with the announcement on December 10 of a new Memorandum of Understanding (MoU) to facilitate bilateral trade and investments in the digital sector.
Both nations have cooperated closely on digital trade and investment for decades. Australian investments in Malaysia from 1997 to 2018, via the Multimedia Super Corridor, totalled RM2.53 billion (US$617 million), with 41 active companies in the market. Australian tech companies are drawn to Malaysia by its strategic location, attractive business environment, and reliable infrastructure.
Australia is a key market for many Malaysian tech companies for expansion, with the country being a key market for testing products prior to a European or North American expansion. In recent years, 11 Malaysian tech companies having been listed on the Australian Securities Exchange (ASX), making the country an ideal alternative for capital raising.
Since its inception, MDEC’s market access programme has formed partnerships with over 200 parties globally and forged over 800 business matching opportunities for its portfolio companies. All of this has resulted in over US$1 Billion in digital export revenue. This new MoU will build upon that success and further strengthen the digital relationship between the two countries.
The MoU will enhance collaboration in corporate digital transformations; capacity building in digital skills; research collaboration; and encourage Australian-Malaysian tech exchange.
“Knowledge-sharing and technology exchange are now vital in this digitally-powered new norm. With these two at the front-and-centre for this MOU, businesses on both sides can now quickly connect and work on collaborations of their own. It will also positively impact other critical economic activities such as cross-border trading on digital platforms and talent development for the technology sector. These, and other ecosystem enhancements, will amplify the digital economy’s growth rate,” added Surina Shukri, CEO of MDEC.
“We are building new pathways between Australia and Malaysia for entrepreneurs, small-and-medium-sized enterprises (SMEs), large ventures, and even entire industrial ecosystems, to innovate and accelerate their digitalisation efforts.”