Malaysia gives a boost to rural SMEs with e-commerce hubs

Digital Transformation is the need of the hour and with a huge number of consumers rapidly switching from the traditional markets to E-commerce platforms for any and everything, it also becomes the responsibility of the country’s government to ensure the economic growth of the country through the development of the Small and Medium Enterprises also referred to as SME’s. Taking a step forward in this direction, even amongst the huge political turmoil in Malaysia, the interim Prime Minister of the country Mahathir Mohamad has taken a massive step to benefit a lot of SME’s (Small and Medium Enterprises) and Micro enterprises majorly in rural areas by showing his efforts to transform these sectors and make them go digital.

In the latest installment, the Prime Minister Mahathir Mohamad has proposed a huge sum i.e. approximately US$4.72 million to help these Micro and Small & Medium Enterprises speed up the transformation from the traditional market and increase the adoption rate of digital solutions- channeled to the Malaysia Digital Economy Corp (MDEC).

The proposed growth fund is a part of a recently announced Economic Stimulus Package 2020, that has been carved to strengthen the country’s overall economy and make it ready for any impact arising from the outbreak of COVID-19.

Malaysia Digital Economy Corp (MDEC) will also be further utilizing these funds to empower the Perkhidmatan e-Dagang Setempat (PeDAS) transformation program that has been designed to further focus on modernizing and digitalizing the rural internet centers of Malaysia. With the ultimate goal to convert or transform these internet centers into the e-commerce hubs. With the establishment of these hubs, the rural SMEs and micro-enterprises will be able to expand their future business prospects through the exploration of the massive market opportunities that e-commerce has in store.

In fact, the PeDAS (Perkhidmatan e-Dagang Setempat) program has been launched with the end goal to help the rural MSMEs (Malaysia Digital Economy Corp) become acquainted with the knowledge of how to reach and cater a bigger consumer market through the e-commerce platforms.

Even before the news of allotment of US$4.72 million, the thought of benefitting the rural micro’s and SME’s was still in place and instrumental. However, the allotment of these funds will provide a massive boost and SME’s will be able to develop their skills at these rural internet centers and will be able to get insight into the actual digital, entrepreneurial and e-commerce world.

Also, with the availability of the tools and applications that will be provided, it will certainly help SME’s deliver great values and take business to new heights. Having a good number of products listed in the e-commerce market will not only lead to the growth of the digital economy but will also put the nation on a fast track process of establishing themselves as an online retail hub.

So this is seen as a great opportunity to help the small business grow and touch new horizons.