Now is the time to empower the digital economy

With the pandemic spread of the Covid-19 worldwide wreaking havoc with the country's economy, PAS' Economic, Real Estate and Entrepreneur Development Committee believes this is the time is right for the government to continue enabling the digital economy.

With the potential collapse of the economy's traditional pillars such as tourism, services etc. the digital economy now has to be viewed as the main conduit between demand and supply, capable of directly offsetting a large part of the current negative effects on the economy and help maintain its equilibrium.

As a matter of perspective, the World Bank estimates that the Malaysian digital economy will grow almost 20 percent this year in terms of value add. E-commerce is anticipated to grow rapidly, reaching RM110 billion in value and, making up to 40 percent to the digital economy pie of Malaysia.

We therefore recommend:

1. As an immediate measure, to maximise and enable online transactions and business processes in all avenues throughout the public and private sectors. All available channels for business to be conducted online has to be utilised to continue supporting the nation's aggregate supply and demand.

2. As forwarded in previous articles, larger and far-reaching tax and legal structures to better govern and empower the digital economic space is key to ensure its intermediate and long term growth and viability.

This will also ensure the ensuing activities will develop within the scope and parameters most beneficial to the country and in line with its long term vision.

A comprehensive legal and tax structure will also ensure the government is able to maximise its revenue from the industry's continued growth and investment, and driving the nation's overall productivity increases.

The nation's current conventional corporate tax structure can be improved more effectively and efficiently incentivise and develop its value and investments, and help the Government to fully appreciate its contributions.

Only a complete, comprehensive revamp of the current legal and tax structures can ensure the digital economy can fulfil its promise, and become the most effective growth engine it can be.

MAZLI NOOR is the vice-chairperson of PAS' Economic, Real Estate and Entrepreneur Development Committee