Kuala Lumpur: Malaysia has remained stuck in the economic phenomenon known as the “middle-income trap” for more than two decades, said Stampin MP Chong Chieng Jen.
He stated that Malaysia continues to rely on low wages and resource-based factors to drive economic development.
“The transition to a high-income economy has been slow, and we remain in our comfort zone.
“Neighbouring countries like Indonesia, Thailand, and Vietnam are progressing and quickly adapting to new technologies,” he said during the debate on the 13th Malaysia Plan (RMK13) in the Dewan Rakyat yesterday.
Chong said Malaysia must adapt to digitalisation and the use of Artificial Intelligence (AI) as quickly as possible.
“If not, we will be left behind by others and become obsolete. Therefore, it is timely for us to ‘Menaikkan Siling’ by embracing digitalisation, AI, sustainable ecosystems and innovation – not just for big companies but also for small and medium enterprises (SMEs).
“Although digitalisation may initially incur extra costs for businesses during the implementation phase, in the long run it will facilitate operations and reduce business costs,” he said.
He explained that examples of how technology can benefit small businesses include platforms like GrabFood helping micro and small food operators (including hawkers) grow their business; QR codes and software replacing workers who take orders in food outlets; and Zoom meetings helping to reduce transportation costs and save time.
“The government must provide more accessible and affordable assistance and grants to help SMEs transform.
“The government’s free e-invoicing platform called the MyInvois Portal is not very user-friendly and needs more awareness, especially among elderly small entrepreneurs,” he added.
He also urged the government to enhance Technical and Vocational Education and Training (TVET) courses and increase student intake.
“This can help produce more talent and workforce in the fields of Science, Technology, Engineering, and Mathematics (STEM).
“It will also support the transition to a more innovative, smart, and advanced economy,” he said.
Meanwhile, he said the theme of RMK13, “Melakar Semula Pembangunan”, which sets the three thrusts as “Memperkukuh Tatkelola Baik”, “Menaikkan Siling” and “Menaikkan Lantai”, is precisely what the country and economy need at this stage of development.
