How the Budget 2020 will empower the online generation with a stronger digital economy

The Government recently announced Budget 2020 and one of the key areas is accelerating the digital economy.

Here are some of their initiatives and how it affects the rakyat.

For the users :

1. The National Fiberisation & Connectivity Plan (NFCP)

Get ready for high-speed internet in more areas as the government plans to provide comprehensive coverage of high speed and quality digital connectivity nationwide including rural areas.

NFCP is adopting a public-private partnership approach involving a total investment of RM21.6 billion.

Through the Malaysian Communications and Multimedia Commission (MCMC), the government is allocating RM250 million to leverage on various technologies, including satellite broadband connectivity.

This enables the rakyat to enjoy better internet connectivity even in remote areas of Malaysia, especially Sabah and Sarawak.

The government is also allocating RM210 million to accelerate the deployment of new digital infrastructures.

In the future, public buildings especially in schools and also high impact areas like industrial parks will enjoy faster internet speeds and more stable connections.

Spongebob Technology GIF from Spongebob GIFs

2. Digital content

Good news for content creators as the government is allocatingRM20 million to encourage locals especially in areas such as :

e-Games
animation
digital arts

3. Gaming

As for gamers, the allocation is increased to RM20 million for eSports in 2020 compared to RM10 million last year.

4. E-wallets

To encourage the people to use e-wallets, a one-time RM30 digital stimulus is given to qualified Malaysians aged 18 and above with annual income less than RM100,000.

All you need is to do is own an identity-verified e-wallet account with selected service providers.

The one-time digital stimulus per person can be redeemed and used for a two-month period commencing 1 January 2020 and expiring on 29 February 2020.

For SMEs & entrepreneurs;

1. 5G Ecosystem Development Grant

The government is allocating RM50 million to bring 5G to the public and also for companies to capitalise on the technology.

5G is a fifth-generation cellular technology that is 100 times faster than 4G.

5g GIF from 5g GIFs

To further encourage companies and entrepreneurs, RM25 million will be given to spur more pilot projects on digital applications such as :

drone delivery
autonomous vehicle
blockchain technology
and other products and services that leverage in fibre optics and 5G infrastructure.

2. Encouraging Small Medium Enterprise (SMEs) to adopt digitalisation

Especially in areas such as :

electronic Point Of Sale systems (e-POS),
Enterprise Resource Planning (ERP)
electronic payroll system.

They will also provide a 50% matching grant of up to RM5,000 per company for the subscription of the above services.

This matching grant will be worth RM500 million over 5 years, limited to the first 100,000 SMEs applying to upgrade their systems.

3. One-stop Digital Enhancement Centres

14 one-stop Digital Enhancement Centres would be made in all states to facilitate access to financing and capacity building for businesses.

4. Digital Social Responsibility (DSR).

DSR is to encourage businesses to contribute to digital economic development while also improving the digital skills of the future workforce with initiatives such as :

technology scholarships
training and upskilling for digital skills for communities in need.

Contributions towards DSR by the companies will be given tax deduction.

5. Micro-digital entrepreneurs and technologists

RM10 million will also be allocated to Malaysia Digital Economy Corporation (MDEC) to train micro-digital entrepreneurs and technologists to leverage on e-Marketplaces and social media platforms to sell their products.

These are the highlights announced by the government in Budget 2020, we’re on-board with the digitisation and 5G push, but we wish the amount given for the digital wallet was a bit more tho.

What are your thoughts on new budget, do you think it’s geared towards enabling more technopreneurs? Let us know what you think on our Facebook, Twitter, and Instagram!