This article is contributed by Azhar Abdullah, Head of Enterprise at Amazon Web Services (AWS)

As Malaysia pushes towards becoming a regional leader in the digital economy under the Malaysia Madani vision of achieving a highly-skilled, prosperous, and sustainable economy, organizations must now take steps to adopt a digital-first mindset to innovate and transform their businesses.

The digital economy is one of the key economic pillars contributing to 23.2%^[1] of Malaysia’s gross domestic product (GDP), which is set to increase to 25.5% by 2025. However, 77%^[2] of small and medium enterprises, which contribute almost 40%^[3] of Malaysia’s GDP, are still early in their digitalization journey. This represents a huge opportunity for Malaysian businesses to accelerate the pace of digital adoption for tech transformations across the board.

As new technologies emerge, businesses need to invest in both solutions and training to enhance efficiency and productivity in day-to-day work and position themselves for growth. Digital upskilling is a key component of Malaysia’s digital transformation, which includes ensuring employees are equipped with capabilities to deploy cloud-enabled solutions, individuals are empowered for future digital careers, and the digital inclusion of citizens is advanced.

Keeping Pace in an Evolving Landscape

To keep pace with industry disruptions and evolving customer needs, it is essential for business leaders to embrace cloud technology as a strategic priority. Doing so will allow them to benefit from the cost-efficiency, reliability, flexibility, scalability, and security of the cloud.

One such example is the well-loved homegrown curry powder and spice brand, Baba’s Products^[4], which adopted AWS cloud to efficiently scale, optimize costs, and implement disaster recovery strategies. With AWS, Baba’s Products has achieved faster time-to-value, reducing the order-to-cash cycle by 40%, and supporting its expanding regional presence with products sold across nearly all retail grocery stores in Malaysia, Singapore, and Brunei.

Malaysian businesses should move forward on their digitization efforts, to reduce the risk of falling behind as the country moves towards achieving its digital economy goals. Without integrating digital tools and strategies into operations, businesses may face several challenges such as inefficiencies in their productivity levels, resulting in slower delivery of customer products or services. Additionally, with data playing a critical role in decision-making, they might miss out on valuable insights, hindering their ability to make informed choices and strategic decisions.

As part of its strategy, Maxis, Malaysia’s leading converged solutions company and AWS Advanced Tier Partner, taps into resources from the global community AWS Partner Network^[5] to drive innovation, modernization, and deliver enhanced personalized experiences for its end customers. Maxis leverages more than 400 AWS-accredited employees to date that provide solutions to local businesses to accelerate cloud adoption.

Building Malaysia’s digital workforce with the right talent

As technology continues to shape the world, education, skilling, and talent play a pivotal role in driving innovation, economic growth, as well as societal progress. In June 2023, Human Resource Minister V. Sivakumar highlighted that based on 2020 World Economic Forum predictions, 4.5 million Malaysians are likely to lose their jobs by 2030 if they do not improve their skills with the emergence of AI^[6]. 

AWS has committed to training 29 million^[7] people globally in cloud computing through free training programs by 2025 and has helped 13 million globally access cloud skills training to date. Since 2017, AWS has trained more than 1 million individuals across ASEAN and more than 50,000 individuals in Malaysia.

Training programs like AWS re/Start prepare the workforce for a digital economy, as well as transforming lives in Malaysia. One example is Malaysia’s own re/Start alumni, Ganesan Mahesan, who was faced with the challenge of finding a professional job when the COVID-19 pandemic hit. “During the pandemic, I struggled to find employment in my field. I came across the AWS re/Start program, and it was an excellent introduction to core cloud concepts. I was excited to learn new skills.” Through the program, Ganesan secured a job with the chemical company Evonik as an IT Support Engineer.

Investment in skilling is equally beneficial to both individuals in the workforce and employers. According to a Gallup study,^[8] organizations that employ digitally advanced workers, digital technology, and cloud technology reap higher business growth and innovation. In a similar vein, Malaysian workers with advanced digital skills can earn salaries 106% higher, and 74% of respondents express higher job satisfaction.

To stay ahead of the evolving job landscape and skills demands, Bank Islam, Malaysia’s first listed Islamic financial services institution, launched a broad staff upskilling program to give more than 4,000 Bank Islam employees access to foundational cloud skills. This was achieved through a combination of on-demand digital training, live instructor-led training, and group interaction sessions, as part of a skills roadmap to establish the Bank Islam Digital Academy, a permanent learning centre that will drive and grow digital skills across the organization.

Long-term commitment to enable Malaysia’s Digital Era

It is inspiring to see the potential of how cloud technology can enable SMEs, enterprises, government agencies, and citizens. In the public sector, government agencies can tap into the Cloud Framework Agreement with the Malaysian Administrative Modernization and Management Planning Unit (MAMPU), which grants Malaysia’s government agencies and departments access to power IT modernizations and improve citizen services.

Earlier in March, AWS announced its plans to launch an AWS infrastructure Region in Malaysia, which will give government, developers, businesses of all sizes, and non-profit organizations across the country the access to greater choices – from compute and storage, to artificial intelligence and machine learning, and more, to foster innovation and growth. As part of its commitment to the region, AWS is planning to invest $6 billion (approx. MYR 25.5 billion) in Malaysia by 2037. We look forward to seeing how this investment will spur job creation, cultivate skills training, and provide growth opportunities to the communities surrounding our data centres, helping Malaysia reach its potential as a digital leader in the region.

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[1]Department of Statistics Malaysia Official Portal, Ministry of Economy
[2] SME Corp, Post-pandemic growth: Address barriers to business digital transformation
[3] Contribution of SMEs in Malaysia and China, Department of Statistics Malaysia, Newsroom
[4] AWS, Baba’s Keeps Its Spices Fresh with Real-Time Data from SAP on AWS
[5] AWS, Join the AWS Partner Network
[6] HR minister: Malaysia needs to retrain 50% of workforce amid AI rise
[7] Amazon, Our Upskilling Commitments
[8] AWS, Study by Gallup and AWS shows digital skills drive economic growth across APAC