Why Are Digital Exports Important for the Digital Economy?

The MDEC Digital Export team recently wrapped up its market access trip to Jakarta, Indonesia, to finalise the DEX Connex platform.

MDEC stands at the forefront of Malaysia's digital economy development. Its paramount mission is to empower businesses and propel digital transformation, ensuring Malaysia's unwavering competitiveness on the global digital stage.

The drive to achieve this comes from the top with the CEO of MDEC, Ts. Mahadhir Aziz emphasised, "Through Malaysia Digital (MD), we aim to revolutionise Malaysia's digital capabilities, harness technology and innovation to fuel sustainable economic growth, catalyse digital adoption across industries, and firmly establish Malaysia as the digital hub of ASEAN.”

MDEC assumes an active role in spearheading initiatives that champion and facilitate digital exports, forging strategic partnerships and implementing pioneering programs. This concerted effort creates an environment conducive to businesses expanding their digital exports, propelling Malaysia's economic growth to new heights. Guided by the MD vision, MDEC's pursuit of global recognition and market presence through digital exports is a core pillar of the national strategic initiative.

MDEC recognises the importance of Digital Exports and has established the Digital Exports (DEX) team to support Malaysian tech companies in expanding globally. Working closely with Malaysia External Trade Development Corporation (MATRADE) and the Ministry of Foreign Affairs, the DEX team is actively working on trade opportunities for our local tech companies across the globe.

Why is it essential for the digital economy to be connected to global networks and connections to facilitate and enhance exports?
The digital economy is the economic activity arising from billions of online interactions among people, businesses, and devices worldwide. There are several reasons why it needs to be connected to global networks:

How is MDEC’s Digital Exports (DEX) team operationalising this link to global networks and connections?
Having the pulse of the industry and leveraging on our GAIN methodology (Gateway, Amplification, Investor, Nurturing), MDEC is taking a nimble approach to building global entrepreneurial networks that we believe will prove invaluable for the growth of our startups and small and medium business. In doing so, our companies now have:

• (G) Opportunities for collaboration into new markets: Collaboration is essential for global growth. Being part of a global entrepreneurial network can help you find potential partners, investors, and customers interested in working with you. It can also give you access to markets and opportunities that may have been difficult to reach alone.

But don’t take it from me. This is what Dato’ Kenny Goh, Co-founder of Macrokiosk Bhd, who is coming up to his 25th year as an entrepreneur, has to say. “Macrokiosk operates through 12 global offices while accelerating our new market expansion in collaboration with MDEC via GAIN. It has strengthened our pace and acts as a beacon to the in-country market launch of our BOLD. enterprise solutions platform. Macrokiosk has served over 5,000 customers from 37 countries across 24 industries.”

• (A) Increased visibility and credibility: This can help you gain recognition in the market. It can open doors to new opportunities, partnerships, and collaborations. It can also help you build a reputation as a reliable and trustworthy entrepreneur and business.

Speaking of building reputations, this is the experience of Koh Dim Kuan, co-founder and CEO of Sophic Automation Sdn Bhd, who says: “Over the years, MDEC has promoted us into global networks such as JETRO (Japan), Institute for Information Industry (Taiwan) and many more, allowing us to share our value with clients and growing together in their digital journeys.” Koh credits us for providing Sophic with what he describes as, “a global stage in orchestrating automation symphony for our MNC customers.” That is a nod to the Sophic tagline, “Other people make machines talk; we make them sing.” 

• (I) Access to a larger pool of investors: Tapping into a larger pool of investors, including venture capitalists, angel and institutional investors with their respective areas of interest, creates greater opportunities for our companies to find a match.

Some of our GAIN companies have found their investors thanks to the networks we have created. Chan Kee Siak, the outstanding founder and CEO of Exabytes Network Sdn Bhd, said, “With MDEC's assistance, we were able to connect with a wider range of investors and secure the resources needed to grow and expand our business. We greatly appreciate MDEC's ongoing commitment to promoting the growth and success of Malaysia's digital economy.”

• (N) Access to expertise and resources: You gain access to a wealth of knowledge, skills, and resources from other entrepreneurs. You can learn from their experiences, tap into their expertise, and get access to resources that can help you grow your business. You can call this mentoring or nurturing.

It is something that we take seriously, as Johary Mustapha, the dynamic founder and CEO of Forest Interactive Sdn Bhd, will attest to. “MDEC’s support and guidance have been instrumental in helping us navigate new territories and access previously untapped opportunities, and we are grateful for their partnership.”

We know that support and motivation are paramount because being an entrepreneur can be lonely. Hence, a global entrepreneurial network can provide a support system that understands your challenges and offers guidance, motivation, and encouragement when needed.

We believe that MDEC’s GAIN programme, which we have built over the years, provides a valuable growth pillar with its soft landing in 12 markets covering ASEAN, Japan, Australia and Dubai (for the Middle East). Since 2016, 70 GAIN companies have brought in new contracts worth more than US$1.2 billion. I expect higher exports as under DEX, MDEC is working towards adding new territories and more companies to join us in the globalisation of our tech companies.

MDEC believes connecting to global networks is essential for the digital economy to thrive and grow. It can provide access to new markets, talent, technologies, and collaboration opportunities to help businesses stay competitive and innovative in a rapidly changing global landscape.

The MDEC Digital Export team at the recent DEX Connex and FOX Xposure Indonesia.

This article first appeared on Digital News Asia