6 key benefits as SG and MY collaborate closer for digital economy

Singapore and Malaysia inked a bilateral cooperation agreement on digital economy yesterday for the benefit of job markets across both nations. This agreement, which was between Ministry of Communications and Information (MCI) as well as Malaysia’s Ministry of Communications and Digital, will facilitate easier business transactions online and across borders.

Malaysian PM Anwar Ibrahim and Singaporean PM Lee Hsien Loong also signed two more agreements and an MoU, covering areas including cybersecurity and PDPA, during Ibrahim’s first official visit to Singapore. The MoU will allow for the exchange of knowledge and best practices in areas such as data protection.

Some of the areas that are set to benefit the marketing community include digital identities, investment promotion and facilitation in digitalisation and MSMEs digitalisation. The deal will also encourage business adoption of interoperable standards/frameworks related to the digital economy. The two nations will also foster deeper conversations and alignment on new and emerging technologies, such as on AI governance.

Here are some areas for the marketing community to note. 

• Trade facilitation: The MoU will accelerate the digitalisation of the entire process of trade, which will allow businesses to transact online and across borders with greater ease. For example, facilitating the exchange of data related to trade administration as well as exploring collaboration related to the cross-border usage of electronic transferable records.  
  
  
• Cross-border data flows: There will be greater collaboration support cross-border data flows, including through the use of interoperable mechanisms for the protection of personal data.
  
  
• Electronic payments: The two governments will also deepen collaboration on the development of efficient, safe and secure cross-border e-payments systems, towards realising an ASEAN network of linked real-time payment systems.
  
  
• Digital Identities: The MoU will promote exchanges and knowledge-sharing to facilitate the interoperability and development of our respective digital identity regimes, for both individuals and businesses.
  
  
• Investment promotion and facilitation in digitalisation: The two nations will collaborate in mutually beneficial programmes that facilitate investments in digitalisation, including in partnership with private sector stakeholders.
  
  
• MSMEs digitalisation: There will also be initiatives created that support the digitalisation of MSMEs and industries, so as to enhance their competitiveness and maintain dynamism in our economies.

The green economy agreement was also signed between Singapore's Ministry of Trade and Industry (MTI) and Malaysia's Ministry of International Trade and Industry, will allow for both countries to share solutions decarbonising their industries. 

Under the agreement on green economy, both countries agreed to cooperate in the areas of next generation mobility and environmental, social and governance. This will facilitate knowledge sharing and business networking for enterprises from both countries to learn about sustainable business practices and explore collaboration. Other areas include Low-carbon solutions, carbon credits industry collaboration and development of new and renewable energy related technology standards to support domestic and regional decarbonisation.

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In PM Lee’s toast speech at the official lunch meeting he hosted, he said, “When we work constructively together, we produce win-win outcomes with tangible benefits for our peoples and businesses.” He also expressed that with PM Anwar support, both countries stand to reach “greater heights.”

With Singapore being the largest foreign investor in Malaysia, with over SG$56 billion in direct investments, PM Lee said that Singapore has confidence in the Malaysian economy and its "can-do" spirit. He also referenced the two countries’ relationship during the COVID-19 pandemic, where despite supply chains around the world being disrupted, people and goods continued to flow safely and smoothly between Malaysia and Singapore.

According to CNA, PM Anwar concurred with PM Lee saying said that the two countries should do the utmost to enhance their relationship and work together for their collective benefit. “No (bilateral) issue should be left unresolved,” he said.  PM Lee pointed out that with fully reopened borders and freedom of movement between the two countries, “businesses can plan and operate more predictably.” This will be further facilitated by the Johor Bahru Singapore Rapid Transit System (RTS) Link which is set to be completed by 2026.

In 2020, Malaysia Digital Economy Corporation (MDEC) partnered with ‘Malaysia Digital Hub’ operators to address daily business operation challenges by offering affected start-ups and entrepreneurs an affordable daily ‘Digital Hub Pass’ to grow their businesses during post-COVID19 era. The Malaysia Digital Hub is part of MDEC’s initiative to accelerate Malaysia’s digital economy growth, while ensuring socio-economic inclusivity by focusing on three key pillars: digitally-skilled Malaysians, digitally-powered businesses, and digital investments.  To encourage more start-ups to participate, there are more than 13 accelerators and co-working spaces in the pipeline, and soon will be participating with the Malaysia Digital Hubs to offer the Digital Hub Pass.

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