KUALA LUMPUR, Oct 18 -- The government needs to look into providing incentives and exemptions for local players in the online and digital sectors to create a more competitive and conducive business environment.

AIMS Data Centre Sdn Bhd (AIMS) chief executive officer Chiew Kok Hin said while the 2020 Budget has indicated a promising outlook for advancing digital infrastructure and there is still room for Malaysia to grow into a more sustainable and prosperous digital nation.

He said the government is building the right foundation for a digital Malaysia following its recent announcement towards implementing the National Fiberisation and Connectivity Plan (NFCP) and promoting more digital application pilot projects utilising fibre optics and 5G infrastructure.

“The government is focusing on incentives for small and medium enterprises and other new digital applications like blockchain and similar technology that leverage Malaysia’s investments in fibre optics and 5G infrastructure, but it lacks incentives for one of the core infrastructures that supports the development of a digital Malaysia, namely data centre.

“Data centres are not just fundamental to the development of cloud and digital applications, they also serve as an important element in attracting foreign direct investments into the country to enable the creation of jobs and knowledge transfer,” he said in a statement.

Finance Minister Lim Guan Eng, when tabling the 2020 Budget last Friday, said the government will develop the infrastructure needed to form Digital Malaysia via the implementation of the NFCP over a five-year period.

He also announced an allocation of RM210 million to accelerate the deployment of digital infrastructure for public buildings, especially schools and high-impact areas as industrial parks.

-- BERNAMA