Digital platforms laud 2020 budget digital solutions

KUALA LUMPUR, Digital merchant platform Fave believes the continued rapid adoption of mobile payment in Malaysia will fuel the company’s target of enabling 100,000 small and medium enterprises (SMEs) with cashless payments and digital solutions by 2020.

Under the 2020 Budget tabled by Finance Minister Lim Guan Eng, the government said it will offer a one-time RM30 digital stimulus to qualified Malaysians aged 18 and above with an annual income of less than RM100,000.

Commenting on the proposed move, Fave co-founder Joel Neoh Eu-Jin said this could help SMEs to grow their revenue up to RM4 billion by 2020 in Southeast Asia.

“Digital transformation is sweeping through various service sectors, specifically in the food and beverage, wellness and retail industries.

“We are excited to see how we can potentially work with the government to encourage SMEs to adopt more digital solutions for their businesses with the allocation of a 50 per cent matching grant of up to RM5,000,” he said.

Meanwhile, Neoh also expressed optimism over the government’s plan to build up to 14 one-stop digital enhancement centres in all states to facilitate access to financing and capacity building.

“This will help beef up business owners’ capacity and know-how by seeking new ways, such as FaveBiz to transform their operations in a cost-effective way, as well as power the next generation of merchants in the country,” he said.

In a separate statement, Internet provider ViewQwest welcomes the government’s call to further close the digital gap in Malaysia by ensuring that consumers’ demand for faster and cheaper Internet connection is looked into.

“We continue to see value in further investment into next generation broadband systems and capabilities to ensure Malaysians can truly have a better broadband experience,” said group chief executive officer Vignesa Moorthy.

Under the 2020 Budget, the government said it will introduce a 5G ecosystem development grant worth RM50 million to bring 5G technology and services to Malaysians.

In addition, RM25 million will be allocated to set up a contestable matching grant fund to spur more pilot projects on digital applications such as drone delivery, autonomous vehicle, blockchain technology, as well as other products and services that leverage investments in fibre optics and 5G infrastructure.

Source: BERNAMA (News Agency)