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How Digital Economy & Marketing Can Boost Penang Growth

How Digital Economy & Marketing Can Boost Penang Growth

Penang has experience 2 growth transformation to become a successful industrialized
economy. Penang’s economy targeted to move up the value-chain by driving the 3 rd growth
wave of digital economy.

Penang is moving fast to another level of success in the shared services outsourcing (SSO)
industry. The Penang State Government, in envisioning the great potential of the SSO
industry, launched the Information Technology Business Process Outsourcing (IT-BPO)
Hub in Bayan Lepas to attract global leaders in the SSO Industry to establish their presence
in Penang. The IT-BPO Hub in Bayan Lepas that is the first of its kind to be established in
Malaysia is a milestone achievement for Penang.

It is evident that Penang indeed is an ideal incubator for many IT and digital startups. Over
the last 12 years, Penang has been the birthplace of the largest hosting provider in
Malaysia, Exabytes; and the Asian’s leading online employment marketplace, Jobstreet.com.
Off course there are many well-known startups here that you could find there. It is
crowned as “Silicon Valley of the East” for the apparent reasons.

Digital economy is about the economic activity that results from billions of everyday online
connections among people, businesses, devices, data, and processes. The backbone of the
digital economy is hyperconnectivity which means growing interconnectedness of people,
organisations, and machines that results from the Internet, mobile technology and the
internet of things (IoT). It is about using the latest technology to do what you already do –
but better.

It is said that digital transformation will contribute US 10 billion dollar to Malaysia GDP by
2021. How does digital economy can boost Penang’s growth?

Customer Experience with Digital Marketing in Penang, Malaysia

In this digital age, customers choose to interact with business whenever and wherever they
are in a fashion that is convenient for them. In addition, customer desires to interact with
brand with experience that is seamless and personalized. With digital deployment in their
business, Penang business would give customer better buying experience; hence translates
to better customer retention rate. Digital Marketing in Malaysia becomes important more than ever.

Better business decision.

How enterprises securely share data in real time to enable next-generation commerce
applications to thrive is the key for success. The digitisation of everything is creating new
intelligent digital networks of networks that fundamentally change the way commerce is
managed, optimised, shared, and deployed. The more data you have the higher success rate
that you could generate leads and result in higher rate of sales closing.

Adapt to the future of work.

The next generation of business is about work from different office, homes or even coffee
shops. This allows flexibility and also scaling of business. This translate to more happier
employees, and better productivity. Business operation is longer limited to location.
Business in Penang no longer to be bound to local.
Penang’s brands could go national and even international with the digital platform ready
on digital economy. There are marketplaces they can choose from to market and deliver
the products beyond your own territories.

Creating Job opportunities

It is believed that digital economy will generate more than 85,000 new jobs in Penang alone.
New digital and IT skills are required to spur the digital economy in the state.
Initiatives on ensuring digital economy in Penang shown that Penang state government and
Malaysia is committed for the digital transformation here in Penang.
With the vision to encourage the growth of digital economy, Malaysia Multimedia
Development Corp (MDEC) through MSC Malaysia has set up Cybercities and Cybercentres
in Penang.

Based on the concept of industry clustering, companies of similar industries are placed
within the same geographical area to fuel economic growth. These companies are also
housed within a facilitative eco-system to build their businesses in line with the vision of a
developed digital economy. This creates healthy competition amongst businesses,
encouraging innovation and development while raising competencies on a national and
regional level.With access to world-class infrastructure, MSC Malaysia attracts local/global
investors and supports a robust local start-up ecosystem.

MDEC also announced in November 2017 that the first Digital Hub outside Kuala Lumpur
will be set up in Penang. Malaysia Digital Hub is tailored for startups and internet economy
companies. Malaysia Digital Hub provides rich ecosystem components inclusive of high
speed broadband and abundance of soft infra offerings. As a Cybercentre, Malaysia Digital
Hub will offer the same 10 MSC Malaysia Bill of Guarantees to MSC Malaysia status
companies.

What is crucial now is educating SMEs in Penang by reskilling and training to help them
understand and accept this concept of digital economy. It is not a choice for them but a
necessities to cater the next generation of consumers who are nothing but digital savvy.