This article first appeared in Digital Edge, The Edge Malaysia Weekly on September 25, 2023 - October 1, 2023

In my previous column, I discussed the ways to drive the country’s digital growth momentum. Today, I want to shed light on the importance of including every Malaysian in this journey. There seems to be a prevailing misconception that digital growth and transformation primarily benefit urban areas, neglecting rural regions.

This assumption is far from the truth.

The digital economy is expected to contribute 22.6% to the country’s gross domestic product by 2025 and create 500,000 job opportunities. To fulfil Malaysia’s vision of becoming a high-income nation with a focus on digitalisation and pioneering the digital economy in the region, inclusivity is paramount.

As we embrace the digital age, it is imperative that we carefully consider the economic dimensions of social inclusion to create a future that is not only innovative but also equitable and sustainable.

Social inclusion is not merely an altruistic endeavour but a strategic imperative for economic growth and development. The advancement of digital technologies has revolutionised industries, creating new economic opportunities. We must be cognisant, however, that these opportunities must extend to all segments of society, leaving no one behind.

As Malaysia is a culturally diverse nation with varying languages, ethnicities and backgrounds adopting a one-size-fits-all approach just will not work.

Instead, more targeted solutions designed to address disparities faced by marginalised and underserved groups are required. Implementing targeted solutions and repeating the process across the country is vital to promote upward mobility for these communities.

In an increasingly technology-driven world, those without access to digital skills risk falling into a cycle of exclusion from economic opportunities. The World Economic Forum (WEF) highlighted in its “Future of Jobs Report 2020” that 97 million new roles will emerge in 2025.

Specifically for Malaysia, eight of the 10 emerging jobs will require digital tech skills. In a separate study titled the “Asia-Pacific Digital Skills Study: The Economic Benefits of a Tech-Savvy Workforce”, the average Malaysian worker with advanced digital skills earns US$21,773 (RM101,941) more annually than similar workers who do not use digital skills.

Digital skills empower rural, marginalised and underserved groups to access education, jobs and entrepreneurship opportunities. With the right skills, individuals can participate actively in the digital economy.

Government bodies, businesses and educational institutions must invest in comprehensive digital literacy programmes that are customised to meet the needs of specific groups such as rural, seniors, individuals with disabilities or those from low-income backgrounds. These programmes should focus on practical skills, user-friendly training materials and hands-on learning experiences that empower them to actively participate in the digital economy.

The digital divide marginalises low-income individuals and families because of financial barriers that prevent access to digital devices and the internet. A viable strategy to mitigate this challenge is to introduce subsidies or incentives aimed at making affordable digital devices and internet connectivity more attainable. Collaborative efforts between governments, nonprofit organisations and device manufacturers can pave the way for such initiatives.

By collaborating with device manufacturers, governments and nonprofits can negotiate discounts on essential devices such as smartphones, laptops or tablets. This reduction in upfront costs can alleviate the financial strain faced by low-income households, enabling them to access the tools necessary for digital participation. Not only does this approach enhance digital literacy and skills among marginalised communities, but it also empowers them to access online education, job opportunities, government services and communication platforms.

In parallel, ensuring affordable internet connectivity is equally crucial. Establishing partnerships with telecommunications companies (telcos) can result in specially designed discounted data plans. These tailored packages cater for the specific needs of low-income individuals, making internet access financially feasible. Affordable connectivity not only supports communication but also opens doors to online services, remote work, e-commerce and access to information.

The collaboration between governments, nonprofits and the private sector is pivotal in designing comprehensive programmes that holistically address the multifaceted needs of marginalised communities. Such efforts do not merely provide hardware and connectivity but they also foster digital inclusion, bridge socioeconomic gaps and promote equitable participation in Malaysia’s growing digital economy.

Digital technologies offer unparalleled opportunities for promoting social inclusion. The widespread adoption of mobile devices and internet connectivity enables remote communities to access vital services, such as education, healthcare and financial services, previously unavailable to them.

Regrettably, we remain behind in this domain, with much work ahead to guarantee rural communities access to digital technologies.

Online platforms and e-commerce enable small and medium enterprises to reach a broader customer base, fostering economic empowerment. Digital financial services promote financial inclusion while data-driven decision-making and smart infrastructure optimise resource management, enhancing productivity and resilience. Embracing inclusive digital policies and partnerships ensures that no one is left behind, ultimately creating a more equitable and prosperous society.

Functioning as physical spaces equipped with computers and internet connectivity, community-based digital hubs bring the advantages of technology closer to areas that may otherwise struggle to access them. These hubs, in a way, act as equalisers, breaking down barriers that prevent marginalised communities from tapping into the vast opportunities offered by the digital world.

By offering computers and internet access, these hubs empower individuals to explore a wealth of educational content and online job opportunities. This direct exposure to the digital landscape can open doors to learning, skill development and economic advancement that were previously out of reach.

The result? Individuals who lack personal devices or reliable connectivity gain entry to an array of resources, levelling the playing field and fostering upward mobility.

Recognising the unique needs of each community, these hubs provide structured training programmes that cover fundamental digital skills. From basic computer literacy to online communication and job search techniques, these programmes empower participants to navigate the digital space with confidence and competence.

Moreover, these hubs go beyond technology by fostering community engagement and social interaction. They become centres of collaboration where individuals can connect with their peers, exchange ideas and support one another.

As local information hubs, these spaces offer access to news, resources and updates that may otherwise be unavailable to the community. By functioning as sources of knowledge and communication, they contribute to the community’s overall empowerment and awareness.

Ensuring the long-term sustainability of digital inclusion initiatives is crucial for lasting and transformative impact. Diversifying funding sources reduces reliance on a single funding stream and enhances resilience to fluctuations.

Demonstrating the impact of initiatives through regular data collection justifies continued investment and support while capacity building will equip local organisations and community leaders to independently sustain and drive the initiatives.

Integrating digital inclusion objectives into broader policies and strategies secures institutional support and maintains focus on goals. Public-private partnerships provide shared resources and expertise, while continuous adaptation ensures relevance amid evolving technologies and societal needs. Advocacy efforts and community engagement foster commitment and prioritise digital inclusion on the national agenda.

A publication by MDEC called Horizon found that there is a significant digital divide between urban and rural areas in Malaysia. While 92% of urban households have access to the internet, only 68% of rural households do. This gap is even wider for women, with only 58% of rural women having access to the internet compared to 84% of urban women.

The publication found that the most popular digital technologies in Malaysia are smartphones, social media and e-commerce. However, there is still a significant gap in the adoption of these technologies across different segments of the population. For example, only 62% of rural households have a smartphone, compared with 92% of urban households.

By implementing comprehensive strategies, digital inclusion initiatives can create lasting and empowering change, promoting equity and accessibility to digital technologies. Sustained efforts contribute to a more inclusive society, where individuals and communities can fully participate in the opportunities of the digital age.

As we progress, we must remain committed to refining our methods, understanding the unique needs of each community, and adapting our approach accordingly. Achieving digital inclusion is an ongoing journey that requires constant dedication and adaptability. By tailoring solutions to address specific challenges faced by different demographics, we can bridge the gap between social inclusion and economic empowerment.

Mahadhir Aziz is CEO of Malaysia Digital Economy Corporation (MDEC), the government agency leading the digital transformation in the country

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