Dean Au Yong Hui Nee delivered a keynote speech on Seizing the Benefits of the Digital Economy and Cross-Border Trade: Government Intervention for Digital Transformation of Small and Medium Enterprises in Malaysia. She pointed out that globalization and digitalization are unavoidable trends for businesses, and digital technologies are the main mechanisms to promote development by expanding the information base, lowering information costs and creating information goods, while achieving the good country-led outcomes in digital transformation requires an ecosystem approach including digital infrastructure, digital platforms, digital financial services, digital entrepreneurship and digital skills.

So in order to seize the benefits of the digital economy and cross-border trade in Malaysia, the government encourages the SMEs to increase their export to expand their markets overseas as part of their business growth by the Government's commitment which is to drive the nation's digital economy agenda. By collecting survey data from 215 small and medium enterprises with export markets, she concluded the most essential governmental export support policies from the perspective of the industry players.

First, Access to Financing: Financing is the main concern of the SMEs.  Most of the suggestions are for the government to increase export credits / funds / grants / support / subsidies / low interest loans to entrepreneurs / SMEs, provide grants for promotional activities for manufacturers to provide product overseas, provide allowances / incentives to SMEs, provide extra incentive to those players in the market, provide funds to entrepreneurs to join the foreign market, provide logistics and taxes clearance subsidy, provide incentive for certification and training courses for companies on export businesses, increase incentives e.g. tax cost, subsidies on transportation and sponsor business matching events, provide more financing for SMEs interested to export, and provide subsidies against costs.

Second, Market Access: For market access, SMEs suggest many initiatives for the government’s consideration. The government can consider assisting the SMEs in foreign product registration, getting support from the diplomat to get official channel, ease of contact and to ask for foreign market information, helping SMEs to gain a breakthrough in exporting and identifying the rules of regulation for each country, especially on custom regulations. Others include increase in the quality of the product export and price efficiency, increase in export oversea promotional tours, provide more platforms and provide export information, more exposition and exhibition to introduce the product to other countries, and promote local products to the export market. Furthermore, the government can intensify the promotion of the advantages of export, promote products’ export markets and opportunities, promote export of halal products, promote matching to bring delegates from overseas to meet the locals, provide better exposure to the companies, and provide exhibition / event / summit opportunities to expose companies to the export market.

Third, Human Capital Development: Human capital development is very important for the sustainable development of the export trade.  The SMEs suggest that the government conduct more training / workshops / seminars / forums on e-commerce and expand export opportunities and publish guidance for the SMEs to grow their businesses.

Fourth, Tax Regimes: In terms of taxation, the SMEs suggest reduction in export duties and tax rates, cancellation of Sales and Services Tax (SST) and this is to be replaced with a lower Goods and Services Tax (GST) rate, tax incentives for the use of latest technology and rebate for exporting companies.

Fifth, Infrastructure and Technology Adoption: On infrastructure and technology adoption, the respondents suggest the expansion of warehouse facilities and enhancement of e-commerce, logistics management system and supply chain management. Besides, the SMEs expect that the third-party platform and Digital Free Trade Zone (DFTZ) area are enabled for easy access of tax, permits with simplified process and open one-step center for documentation.

Sixth, Legal and Regulatory Environment: The respondents highlight their desire to have a legal and regulatory environment, which is transparent and open-minded in policymaking for proper procedure for export, reduced red-tape and efficient custom-clearing that provide a better solution for SMEs.

Seventh, Monetary Policy: For the nature of cross-border trade, in terms of monetary policy, the respondents suggest the importance for the government to maintain a stable and favorable foreign exchange rate.