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M’sia to introduce Digital Free Zone in 2017

PETALING JAYA — Malaysia has said the world’s first Digital Free Zone (DFZ), which will be introduced in the country next year, will boost the digital economy sector as it levels the playing field for all involved.

The Digital Free Zone would mirror the existing Free Trade Zone where businesses get incentives such as tax exemptions, said Malaysia's Minister Abdul Rahman Dahlan. Photo: Malay Mail Online

The Digital Free Zone would mirror the existing Free Trade Zone where businesses get incentives such as tax exemptions, said Malaysia's Minister Abdul Rahman Dahlan. Photo: Malay Mail Online

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PETALING JAYA — Malaysia has said the world’s first Digital Free Zone (DFZ), which will be introduced in the country next year, will boost the digital economy sector as it levels the playing field for all involved.

The Minister in the Prime Minister’s Department in charge of the Economic Planning Unit (EPU), Mr Abdul Rahman Dahlan said the concept would mirror the existing Free Trade Zone where businesses were given incentives, including tax exemptions.

“The establishment of DFZ would stimulate the economy as it gives room for online traders to compete in a healthy environment. Locations of the businesses will no longer be a hindrance to traders,” he said.

“For instance, a trader in Kota Belud would have an equal opportunity to market or sell his items, as a trader from the Klang Valley. This is the future of the digital economy.”

Mr Abdul Rahman said this would cater to the demands of new-age consumers who prefer online shopping over in-store shopping.

During the tabling of Budget 2017 in Parliament on Friday, Prime Minister Najib Razak said the government had allocated RM162 million to implement programmes such as the e-commerce ecosystem and Digital Maker Movement.

Mr Najib said through the Malaysian Digital Economy Corporation (MDEC), the allocation would also see the introduction of the Malaysia Digital Hub.

It was also announced the government would introduce the DFZ, which merged physical and virtual zones, with additional online and digital services to facilitate international e-commerce and invigorate Internet-based innovation.

Mr Abdul Rahman said the funding would act as seed money to regulate the necessary framework and to prepare Malaysia with the right infrastructure.

“The allocations would be used to conduct thorough research where MDEC will act as the overseeing body. We will see what is needed to be done and how best for the concept to materialise,” he said.

The minister also said while the Communications and Multimedia Ministry will be scrutinising the preliminary stage of the implementation, the EPU saw potential inter-ministerial efforts in the future.

“I could think of several ministries becoming the custodians of this project, including the Domestic Trade, Co-operatives and Consumerism Ministry and the International Trade and Industry Ministry. Definitely a joint effort to look forward to,” he said. MALAY MAIL ONLINE

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