Opening Speech For PIKOM Leadership Summit

November 23, 2017 at 1:14 pm

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SPEECH BY YB DATO’ SRI LIOW TIONG LAI
MINISTER OF TRANSPORT MALAYSIA
AT LAUNCH OF 9th PIKOM LEADERSHIP SUMMIT 2017
22 NOVEMBER 2017

Members of PIKOM Council

Distinguished Guests

Ladies and Gentlemen

1. A very good morning and Salam 1Malaysia to all of you.

2. I must congratulate PIKOM for successfully organizing the ninth annual edition PIKOM Leadership Summit. I am delighted that the Malaysian ICT fraternity gathered here to participate, share and learn the latest development on digital economy and Industrial 4.0 which are ICT centric. I am sure that this Summit will provide the latest insights on ICT industry, direction and trend including innovation, new technologies, and business models in elevating ICT growth in Malaysia.

Ladies and Gentlemen,

3. A new era of change is upon us where our nation is rapidly embracing digital economy and implementing Industrial 4.0. I foresee that PIKOM has a vital role to drive Malaysia successfully into the new era. PIKOM’s leadership roles will shape the future ICT industries of Malaysia. Today’s Summit is the right direction to disseminate the latest information by the captains and the experts of the ICT industry on the dynamic and fast-changing global trends.

4. The logistics industry and digital economy are intertwine forming the critical backbone to the supply chain and plays a major role to stimulate trade and spur economic growth. Seamless cross border logistics is indispensable without ICT and this will strongly support the digital economy. The cross border logistics is now the life blood of Malaysia supply chain and expected to be more efficient with innovative ICT application.

Ladies and Gentlemen,

5. Recently we witnessed the historic DFTZ Going Live on November 3rd 2017. Our Prime Minister Dato’ Seri Mohd Najib Tun Razak and Alibaba founder, Jack Ma flagged off 1,972 Malaysian SMEs to sell their product online. Only with ICT that our SMEs can now have the opportunity and access to the global market.

6. e-Commerce is the fastest growing facet of trade across the world. We are seeing more and more cross-border e-Commerce trading. Consumers can now purchase products produced anywhere online and expect delivery within a short time-frame. Malaysia has taken the leadership role in this region to capitalise on the exponential growth of the internet economy. By 2025, Malaysia will handle and move up to US$65 billion worth of goods around the ASEAN region.

7. Our vision to position Malaysia as the regional e-fulfilment hub for ASEAN consumers has received endorsement from Jack Ma. Cainiao and MAHB will setup 24-hectare e-fulfillment hub in Phase 2 of DFTZ. It is slated to be operational by 2020. Such a collaboration is the hallmark of our leaders in embracing e-Commerce and digital economy.

8. No one can imagine that Alibaba was able garnered a sales record of US$25 billion (RM104.86 billion) during its Singles’ Day sale. Such a humongous sale, must be accompanied by the ability to deliver the products purchased by the customs within the acceptable delivery window. As many as 60,000 international brands and merchants had joined the promotion event where 167 merchants have generated more than 100 million yuan ($15.1 million) in sales, 17 surpassed 500 million yuan ($75.4 million), and six merchants surpassed 1 billion ($150.9 million).

9. The fast development of e-commerce, online payments, and express shipping services has made online purchasing extremely convenient. With a simple click on one’s smartphone or computer, a customer can buy whatever he wants instantly. The Singles’ Day sale is not just about a one-day event that produces massive revenue, but as a demonstration of e-commerce potential for the future of retail.

10. Our SMEs must quickly get onboard the Alibaba platform so that we too can participate the Singles’ Day sale next year, which I am confident will be another new sales record. Our phase 1 DFTZ facility is already ready to deliver the products to the Chinese market.

11. By capitalizing on the lucrative e-Commerce market, we are targeting to increase our air cargo volume in KLIA by 2.5 million to 3 million tonnes by 2050 from the current 726,000 tonnes. With vast increase volume of cargo, KLIA can play be an important e-commerce hub for South East Asia.

12. I noted that the recently-held Single Day’s Sale by our e-commerce operators also showed impressive sales. Lazada experienced an ‘explosive growth’ in Malaysia and across the region, racking up US$23 million (RM96.4 million) in sales through the 6.5 million items ordered by shoppers. I foresee a huge potential for our logistics service providers to perform the last mile delivery.

13. Also the Single Day’s Sale has generated an increase in search interest were Shopee (71.4 per cent), 11street (66.7 per cent), Hermo (50 per cent) and Zalora (25 per cent). Based on the search interest on November 11, the five most popular e-commerce in Malaysia are Lazada, Shopee, 11street and Zalora (tied at third place) and finally Hermo at fourth place.

Ladies and Gentlemen,

14. Indeed, in today’s economic climate, collaboration among organization is one the best approach to achieve the organization objectives. I am glad that PIKOM has taken this approach. This morning MOUs exchange between PIKOM and the Malaysian Association of Tour and Travel Agents (MATTA) is to bring travel and tour agents onboard the digital platform. Services industry should take the opportunity to market their services online. This is a step in the right direction in embracing digital economy.

15. We will also witness tripartite MOU exchanges between PIKOM, Cybersecurity Malaysia and Fusionex to enhance ICT and data security. I must congratulate PIKOM for taking such an initiative to address security concerns.

16. I am delighted that PIKOM has taken the initiative on PIKOM ICT Strategic Review 2017/2018 Report that highlight the development in the convergence of the digital and physical worlds which include Big Data and Digital Transformation. Such a development is a major movement towards the Fourth Industrial Revolution (4IR). In near future it is expected to permeate and transform all industry.

Ladies and Gentlemen,

17. This year’s summit theme – Road to Success: Inspiring Tales from Business Leaders is about sharing experiences. I hope the participants can learn from your peers and to motivate us to achieve success. We all need inspirations, guidance and advice to help us in pursuing our goals.

18. On that note, ladies and gentlemen, I wish you all a fruitful summit.

19. Thank you.