Malaysia: A Sustainable Growth Journey

Malaysia Digital, a national strategic initiative, aims to accelerate the nation’s digitalization efforts in various dimensions of society, business and the economy. 

Since its introduction in 1996, MSC Malaysia has catalyzed and transformed Malaysia into a knowledge-based economy. Driven by the Malaysia Digital Economy Corporation (MDEC) as the nation’s lead digital economy agency, Malaysia has witnessed stellar growth in the digital economy sector, representing 23.2% of the country’s gross domestic product (GDP).

After 27 years of shaping and building the digital landscape, MSC Malaysia has now refreshed its proposition and transitioned to become Malaysia Digital, laying the foundation for rebuilding a progressive and inclusive digital nation.

Guided by the Malaysia Digital Economy Blueprint (MyDIGITAL) and adapting to the rapid shift of socio-economic norms in response to the constant advancements in digital technology, Malaysia Digital aims to ensure that people, global companies, and investors will conduct business in Malaysia.

“The idea of Malaysia Digital is to attract good, purposeful and contextual digital opportunities that will be strategic to Malaysia,” says Mahadhir Aziz, CEO of MDEC.

“Additionally, we aim to create local champions and drive the digitalization of Malaysian society, starting with businesses and eventually extending to individuals. This is the crux of Malaysia Digital—we are here to do business, and we invite global giants to invest in Malaysia.”

Against this backdrop, MDEC’s role is to create supply by offering digital solutions and service providers; digital talent development programs, including training, re-skilling and upskilling; and the creation of export–ready local intellectual property (IP).

On the demand end, MDEC promotes and catalyzes digital adoption, facilitates digitalization of brick-and-mortar businesses, and advocates digital transformation programs across economic sectors.

As for policy matters, MDEC influences regulations and guidelines to support business facilitations that cover funding and talent/knowledge workers, while also promoting the business environment and digital infrastructure.

“I’m happy to say that we are on track to drive the digital economy to contribute at least 25.5% toward the GDP by 2025,” says Mahadhir.

Catalyzing Public-Private Partnerships

Underpinning MDEC’s goals for Malaysia Digital are nine specific areas the agency has identified as high-growth opportunities crucial to driving Malaysia’s digitalization journey. These are: Digital Trade, Digital Services, Digital Cities, Digital Finance, Islamic Digital Economy, Digital Tourism, Digital Agriculture, Digital Health and Digital Content.

To support all these areas, MDEC has developed interventions that address the specific needs of each vertical. These include catalytic projects and initiatives, capacity building programs, regulatory and policy dialogues, and networking events.

According to Mahadhir, the key to making Malaysia Digital a success is to promote public-private partnership. This is where the government’s PEMANGKIN program, a part of Malaysia Digital’s strategic initiative, can help.The PEMANGKIN program acts as a catalyst to equip Malaysia’s talent with digital skills, spur tech innovation and attract investors.

“The government has developed PEMANGKIN to support the growth of nine promoted sectors. It comprises high-impact catalytic programs designed to accelerate the digital transformation of Malaysia Digital’s promoted sectors,” says Mahadhir.

He adds, “Today, we are proactively engaging with the technology industry for collaborative opportunities and will continue to render critical support and intervention across sectors to catalyze and accelerate the growth of the digital economy.

“For instance, the PEMANGKIN industry dialogue acts as a platform to address the needs of our key stakeholders and this is where both the public and private sectors can come together and form an effective partnership. This dialogue can influence areas such as policy and regulation, funding facilitation, private-led investments, market access and development matters.”

Examples of PEMANGKIN programs involving Malaysia Digital’s promoted sectors are in the areas of Web3, talent repatriation and digital trade.

Under Web3, MDEC has embarked on developing the digital content ecosystem in the metaverse realm via the PEMANGKIN IP360 Metaverse initiative. This brings together IPs that can reach new audiences and a new generation of consumers, thereby catalyzing small and medium enterprises (SMEs) to venture into this nascent sector.

In the area of talent repatriation, MDEC has launched DE Rantau, which is expected to inject a total of RM4.8 billion (US$1 billion) into the local economy by 2025. Since commencing applications for DE Rantau Nomad Passes on October 1, 2022, MDEC has received over 1,000 complete applications from digital nomads.

Meanwhile, the National E-Commerce Strategic Roadmap which is driven as a whole-of-nation collaborative approach between the public and private sectors, aspires to achieve three key targets by 2025: RM1.65 trillion (US $345 billion) e-commerce market size, 1,148,000 MSMEs adopting e-commerce, and 84,000 businesses adopting e-commerce for export. The roadmap ensures a more inclusive outcome for a conducive e-commerce ecosystem to be the springboard to digital trade.

Making Malaysia Stand Out

So far, Malaysia has done relatively well in attracting foreign digital opportunities in its digital technology sectors and this can be at tributed to its robust digital infrastructure, a general skilled workforce, and overall business-friendly environment. These attributes have made Malaysia an enticing choice for foreign investors seeking opportunities in the digital realm.

As a testament to this, the country has recently secured a number of digital technology deals, including RM8.3 billion (US$1.7 billion) at the London Tech Week, as well as signing several MoUs worth RM19.84 billion (US$4.1 billion) with Chinese companies in 2023. Additionally, about RM600 million (US$125.4 million) worth of estimated potential digital deals were facilitated and export opportunities worth over RM330 million (US$69 million) were captured in Dubai at the recent business mission to GITEX GLOBAL, a global tech and startup show.

In tandem with this, Malaysia continues to be a hotbed for e-commerce, digital marketplaces and online businesses. It is also a hub for tech and innovation, with a vibrant startup ecosystem, a multilingual and culturally diverse work force, and a strategic location with business-friendly policies.

Mahadhir says, “These substantial digital technology deals not only promise to create high-value job opportunities but also contribute significantly to the growth and advancement of various digital technology sectors. Ultimately, these achievements further solidify Malaysia’s position as a highly attractive and competitive hub for global digital opportunities.

“Malaysia wants to go digital, but it’s not enough to be merely a cost-effective destination or a country with a businessfriendly environment. We must go beyond that to attract digital opportunities and businesses, so that global giants will take notice of us and be open to investing in Malaysia.”

Mahadhir adds that Malaysia has skilled professionals in many sectors but needs to boost its capacity and knowledge in specific emerging technologies such as AI, the Internet of Things (IoT), big data analytics and blockchain. This requires concerted efforts in education and training to meet industry needs and drive digital innovation effectively. This is where the recently launched National Industrial Master Plan (NIMP) can further deepen the country’s digitalization aspirations.

“The NIMP incorporates expertise like Generative AI and the digitalization of manufacturing into its roadmap. At MDEC, we are aligning some of our existing programs and creating new ones, where necessary, to ensure we are able to influence policy-making and implement these technologies when the time comes to do so,” says Mahadhir.

PETRONAS is furthering its commitment to achieving net zero carbon emissions through innovative practices, fostering green economy growth and promoting collaboration. 

PETRONAS Group has responded to the climate change crises by aligning its business goals with global sustainability principles. In 2020, it announced its intentions to achieve Net Zero Carbon Emissions by 2050 (NZCE2050).

Since then, PETRONAS, which has presence in more than 100 countries, has recognized the need to accelerate energy transition to lower carbon production while reducing greenhouse gas (GHG) emissions. Emissions reduction, in fact, has been its pursuit for a decade; since 2013, PETRONAS has cumulatively reduced 18.1 million tonnes of carbon dioxide equivalent (MtCO2e) of GHG emissions from the implementation of decarbonization activities throughout PETRONAS Groupwide operations.

Building on this momentum, PETRONAS launched the NZCE2050 Pathway in November 2022, which sets clear and solid short-, medium- and long-term targets to reduce GHG emissions. The Pathway also supports Malaysia’s net zero emissions by 2050.

PETRONAS is racing to decarbonize to meet its targets, starting with aiming to cap GHG emissions at 49.5 MtCO2e by 2024, covering Scope 1 and Scope 2 emissions for its operations in Malaysia.

The group, through various existing and planned emissions reduction projects, is determined to meet the near- and mid-term emissions targets for its global operations, spanning the upstream, downstream, gas, project delivery, and technology value chain. The pace of this race continues to accelerate.

Energy Transition Gains Momentum 

PETRONAS is committed to ensuring energy security for Malaysia, in addition to its efforts in providing comprehensive solutions on a global scale, which drives its continued production and growth. “It is our commitment to deliver our ‘Amanah,’ or trust, to safeguard and manage the nation’s hydrocarbon resources responsibly for the people and the country,” says Sabah-born Bacho Pilong, PETRONAS Senior Vice President of Project Delivery and Technology, who is also a member of the PETRONAS Executive Leadership Team with an energy-related career spanning 30 years.

In meeting stakeholders’ needs, PETRONAS intends to enhance its role in energy transition by focusing on both energy security and the responsible delivery of energy solutions. As such, PETRONAS has adopted an energy transition strategy to encompass its core production business while capturing new growth opportunities, all while responsibly managing carbon emissions.

“Serious about making such shifts for the better, PETRONAS aims to set aside 20% of its total capital expenditure to ramp up decarbonization and renewable energy development from 2022 to 2026,” says Bacho.

Decarbonizing Comprehensively and Progressively 

PETRONAS’ decarbonization efforts will anchor on four levers: zero routine flaring and venting; energy efficiency with the help of technology and innovation; electrification powered by renewable energy infrastructure; and carbon capture and storage (CCS) to reduce GHG emissions from its operations.

PETRONAS has also pledged to avoid routine flaring in new oil field developments and end routine flaring at existing oil production sites by 2030. Flare gas recovery, improvements in compressor capacity, vent-to-flare conversion and vent recovery are well underway.

CCS efforts are reliant on innovation and partnership with technology providers. PETRONAS, through PETRONAS Research Sdn Bhd, has been developing CCS solutions addressing a range of needs, including to improve storage integrity and gas separation, as well as to minimize corrosion, among others.

The solutions include CO2 capture and utilization technologies, such as CryoMin and Precipitated Calcium Carbonate, which economically separate CO2 from natural gas with less carbon footprint. These technologies bagged the Developing Economies Energy Company of the Year award at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2023 recently.

Keen on upping its renewable energy portfolio, Gentari Sdn Bhd was established in 2022, offering clean energy solutions in tandem with PETRONAS’ core business. The subsidiary will dive deep into renewable energy, hydrogen and green mobility as a portfolio of solutions to help customers in their decarbonization journey.

As of August 2023, Gentari has 2GW of renewable energy capacity in operations and under development, and the plan is to increase the installed capacity of renewable energy to between 30GW and 40GW globally by 2030.

To achieve its ambition of generating up to 1.2 million tonnes per annum (mtpa) of clean hydrogen by 2030, Gentari has ongoing collaborations with foreign partners and customers, focusing on the development of green hydrogen projects, transportation and policy advocacy.

Gentari has its sights set on capturing more than 10% of the market share for public electric vehicle (EV) charging points and Vehicle-as-a-Service (VaaS) in the Asia-Pacific. As of August 2023, more than 340 Gentari charging points have been installed, with more than 1,400 EVs deployed under its VaaS offering in Malaysia and India.

PETRONAS also called out for new levels of collaboration with various initiatives such as its Race2Decarbonise global hackathon. Kindling the spirit of innovation, the crowdsourcing drew over 1,500 ideas and submissions from startups, corporations and even individuals from 25 countries. The winning solutions announced in March this year included ideas aimed at reducing the energy consumption of gas turbines and preventing flare gas leakage. These innovations go toward mitigating GHG emissions.

“We are in the Golden Age of Engineering, where we need to passionately innovate now to shape a sustainable future. We hope our actions in energy transition and decarbonization inspire others to take drastic steps in mitigating GHG and advancing innovation that will help address the many climate challenges gripping our planet,” says Bacho, who hopes to embed, or even supercharge innovation within PETRONAS’ culture.

Specializing in core banking systems, Silverlake Axis, led by its rising star Cassandra Goh, is expanding into new technologies to propel itself into the future. 

In the last three decades, Silverlake Axis has evolved into one of the largest financial solutions providers in Southeast Asia, serving 40% of the top 20 largest banks in the region. While core banking systems remain a pivotal aspect of its business, Silverlake Axis has been intensifying its efforts toward developing innovative financial solutions to facilitate the digitalization journey of the financial services sector.

With the ongoing disruption caused by next-generation technologies, such as cloud computing, artificial intelligence, big data and machine learning, in the financial services industry, Silverlake Axis has expanded its capabilities and expertise to better serve its clients and secure a competitive advantage in the ever-evolving landscape.

Taking on a key role in shaping the future trajectory of Silverlake Axis is the company’s next-generation leader Cassandra Goh, who is currently serving as the Executive Director and Deputy Executive Chairman.

Gaining Experience and Perspectives

After over a decade in the U.S., Goh, daughter of Silverlake Axis Founder and Group Executive Chairman Goh Peng Ooi, returned to Asia and joined Silverlake Private Entities in 2014, where she was responsible for evaluating investment opportunities and value creation. She became a board member of Silverlake Axis in 2015, and in April 2018, was redesignated as Executive Director overseeing strategic acquisitions and investments. She was appointed as Deputy Executive Chairman in October 2023.

As Deputy Executive Chairman, Goh is responsible for leading non-banking business operations and new business initiatives, and fostering synergy among group businesses.

Reflecting on her early days at the company, Goh acknowledged that there was so much to learn about the business. She says, “I found it both interesting and challenging to learn on the job, gain a better understanding of everyone’s roles within the company, and grasp how the different components of the company interplay with each other.”

She also came to realize that running a business like Silverlake Axis is no “walk in the park.” She says, “It has a rich history. Therefore, I need to strike a balance between preserving the aspects that make the company great and ensuring it evolves to be future-ready.”

Her determination to master the business quickly, coupled with her contribution to the Strategic Investment Committee, has yielded significant results for Silverlake Axis.

For the fiscal year ending June 30, 2022, Silverlake Axis reported revenue of RM736.5 million (US$154.6 million), marking an impressive 18% year-on-year increase. In FY2023, the company continued its growth trajectory with a 4% year-on-year revenue increase, reaching a record high of RM765.9 million (US$160.7 million).

What makes these numbers impressive is that this growth occurred amid a companywide transformation exercise, which oftentimes may divert a company’s and employees’ focus, potentially affecting growth.

“This transformation initiative is necessary to take our organization forward. We are moving the pieces around and aiming for it to be completed by June 2025,” Goh says. “All transformations take time, and it will require a few years to fully realize the fruits of these efforts.”

Creating Change 

Goh has been reengaging with all the C-level executives of Silverlake Axis’ key clients. The goal is to have a deeper understanding of the clients’ concerns and frustrations, and subsequently to rebuild trust and strengthen the relationships.

Within the Silverlake Axis Group, Goh has emerged as a passionate advocate for transparent and empathetic communication, as well as the adoption of sustainable practices. Her support for women further strengthens her influence. This commitment underscores Silverlake Axis as an organization that embraces diversity, equity and inclusion.

“Cassandra’s commitment to drive transformation and sustainability aligns with our values and the direction we aim to take as a company.”

–Andrew Tan

Her efforts were recognized this year when she won the Rising Star Gold Award at the ISG Women in Digital Awards 2023 for Asia Pacific and India. The awards honor exceptional women who are changing the face of the digital economy.

Commenting on Goh’s award, Silverlake Axis Group CEO Andrew Tan says she has displayed “exceptional leadership and management qualities, proven by successful results and  contributions within the board, management and the organization.”

He adds, “Cassandra’s commitment to drive transformation and sustainability aligns with our values and the direction we aim to take as a company. With her empathy and charisma as an individual, she was able to rationalize her tough decisions and break through to the management and board members.”

Driving the Next Phase

As the financial services sector ventures into the next phase of digitalization, Goh highlights some potential challenges.

“Many banks are grappling with complex, monolithic and inflexible systems that are unable to provide valuable business insights, and subsequently, deliver superior customer experience. At the same time, the cost of maintaining these legacy systems continues to rise,” she says.

In 2018, Silverlake Axis introduced MÖBIUS, a modular, cloud-native open banking software that allows financial institutions to deliver new products and services to the market in a cost-effective and speedy manner.

MÖBIUS’ modular approach allows customers to transform their services digitally at a pace they are comfortable with. The response has been positive, with Siam Commercial Bank, one of the top five banks in Thailand, choosing MÖBIUS to embark on its digitalization journey.

Success hinges on awareness of market trends and a deep understanding of customer needs. Goh emphasizes the uniqueness of each customer, as they have different business models, target markets and priorities, leading to preferences for IT system hardware and software vendors.

While the multi-vendor, multi-system approach is common, she says, it presents challenges. “Today, financial institutions use numerous third-party solutions. When everything is going smoothly, there’s no issue. But, when a problem arises, you need to resolve it quickly,” she says.

To tackle these challenges, Silverlake Axis has developed another new solution called CloudLink. “This is where our coding shines. It serves as a middle layer solution that cuts across all the third-party solutions, giving organizations an easier way to manage all the different solutions and an overview of their operations,” she says.

With these innovations and more in the pipeline, Silverlake Axis continues to make significant strides in meeting the diverse needs of its clients while positioning itself at the forefront of the technology landscape.

Following a challenging year in 2022, the healthtech startup is strengthening its efforts to inspire healthy behavior through its corporate wellness program.

BookDoc has always been an innovator at its core. Founded in 2015 by the late Dato’ Chevy Beh, BookDoc believes that the key to its success lies in its ability to forge meaningful partnerships within a healthcare ecosystem that is designed for building long-term relationships.

The company was originally founded to help individuals find healthcare providers. Driven by Beh’s vision and passion, its eponymous superapp is now a dominant player in the realm of corporate wellness programs.

These programs cover physical wellness, mental wellness, nutrition and teleconsultations. What’s different about such programs is the use of smart technology to gamify healthy behavior while incentivizing individuals through personalized rewards schemes—all through its superapp.

In August 2022, BookDoc experienced an unimaginable loss when Beh tragically passed away at the age of 37. Since then, the company has been led by Reuben Poh, one of Beh’s most trusted associates and an early employee of BookDoc.

In a tribute to Beh, Poh, the current CEO says, “Chevy was a great entrepreneur and an extremely passionate one at that. Not only did he have a great vision for healthcare, but he also led by example, inspiring employees and working tirelessly toward the company’s success.

“Although he faced many challenges during BookDoc ’s early days, he demonstrated great resilience and determination to adapt to market conditions, turning headwinds into opportunities.

“He also had a talent for identifying market gaps and seizing market opportunities at lightning speed, contributing to BookDoc’s growth every year since its inception.”

BookDoc’s DNA

As the founder of BookDoc, Beh had always been the face of the company. Following his passing, rumors started swirling in the healthcare industry suggesting that BookDoc would cease to operate—a notion that Poh unequivocally refutes.

“To the public, BookDoc is Chevy Beh. While this was true, BookDoc’s operations had never been just about one man. When he was still around, he had laid the foundation of the business and the succession plan for the company,” Poh says.

“Healthcare is at our core. Chevy had a lifelong commitment to healthcare, and I’ve been in the healthcare business since I entered the workforce. Healthcare innovation is integral to BookDoc’s DNA, and we will continue to grow in this sector. This was his vision, and it will be mine as well.”

Poh has been with BookDoc since its inception, and shares Beh’s vision of developing BookDoc into a healthcare superapp. The team has developed numerous features, with each one playing an important role in the healthcare ecosystem.

“We have identified the core features that are most critical for our users and aligned them with BookDoc’s vision. I believe this is the right strategy for our future,” he says.

One recent milestone BookDoc attained is the ISO27001:2022 certification, an internationally recognized standard for information security management systems (ISMS). This certification not only strengthens BookDoc’s data security but also enhances trust, compliance and competitiveness in a highly regulated and sensitive industry.

Promoting Corporate Wellness

Like many companies, BookDoc had to pivot in the past three years due to the pandemic. During that time, BookDoc stepped up to support the government by establishing an online appointment system for public clinics and providing teleconsultation services.

The company also provided onsite Covid-19 testing services and helped set up Covid-19 vaccination centers by leveraging its network of healthcare providers.

More recently, BookDoc is building up its corporate wellness program, which extends wellness beyond the individual level.

“The program uses the BookDoc superapp to gamify healthy behavior, motivating employees within an organization to collectively attain specific health goals,” says Poh.

“In this way, employees are motivated to get healthy as a team and reap rewards together. This fosters a culture of health within organizations, while promoting wellbeing as a shared goal.”

The BookDoc corporate wellness program comprises three key pillars:

• Physical Wellness: Through the “ACTIV” feature on its superapp, employees are encouraged to stay physically active. This can include tracking steps, participating in fitness challenges and setting attainable fitness goals.
• Mental Wellness: The mental health feature addresses an often-overlooked aspect of well-being. It offers self-assessment tools to help employees evaluate their mental health and connects them with mental health professionals when necessary.
• Nutrition: Recognizing the role of nutrition in healthcare, the “Health Coach” feature provides employees with personalized nutritional advice. The “Food Log” feature complements this by helping individuals keep track of their calorie intake, making it easier for them to maintain a balanced diet.

Complementing BookDoc’s corporate wellness program is its teleconsultation service called “TeleConsult.” It allows individuals to schedule appointments with doctors, specialists or other healthcare providers without the hassle of physical visits. This reduces the need for travel, saves time and improves access to healthcare.

Whether it’s a routine check-up, medical advice or a follow-up consultation, TeleConsult has been invaluable to users, especially when in-person healthcare visits may be challenging.

“Over the years, BookDoc’s corporate wellness program has gained traction and is now being adopted by many big multinational companies. By focusing on the holistic well-being of their employees and leveraging technology to motivate healthy behavior, these organizations are witnessing a positive impact on their workforce,” Poh says.

“In fact, our research shows that the corporate wellness solutions market will reach US$94.6 billion by 2026, up from US$61.2 billion in 2021. Hence, there is a lot of potential in the market.”

Carrying on the Legacy

BookDoc’s transformation from a healthcare provider discovery platform to a comprehensive superapp for healthcare and wellness is a testament to its commitment to improving the well-being of individuals and corporate employees.

Poh believes that by gamifying healthy behavior, incentivizing wellness and introducing innovative features like TeleConsult, BookDoc is not only transforming the way the industry approaches health but is also empowering individuals and organizations to prioritize their health and happiness in an ever-evolving world.

“We will continue to explore strategic partnerships with healthcare providers, insurers, pharmaceutical companies and retail partners to expand our app’s reach and services, and extend Chevy’s vision beyond our shores,” he says.