Prime Minister Datuk Seri Najib Razak launched the Digital Free Trade Zone or the DFTZ on Friday October 3.
What it the DFTA?
How will it benefit the rakyat and the country?
Let’s take a look.
DFTZ is driven by e-commerce
Before we go to the DFTZ, we must first understand what is e-commerce.
Before we had e-commerce or the digital economy, the rakyat would go and buy shoes and shirts at the nearest supermaket or shop.
They would go there by car or taxi or motorcyle and pay for it before going home.
But now, the rakyat don’t go to shops anynore and some prefer to buy goods on the Internet.
This is called ecommerce.
E-commerce has grown into a multi-billion dollar business
With e-commerce, the rakyat can buy products not just in Malaysia but all over the world.
The rakyat can practically buy almost everything such as books, umbrellas, guitars, makeup, handbags and even cars.
This industry has grown into a multibillion dollar industry giving birth to succesful e-commerce companies such as Alibaba, Lazada, Zalora and hundreds others.
An now Malaysia wants to be part of the global e-commerce success.
That is why Datuk Seri Najib and China’s Alibaba Group founder Jack Ma have launched the DFTZ.
What is the DFTZ?
The DFTZ is an area at the old low cost carrier terminal (LCCT) in Sepang which was formerly the old AirAsia headquaretrs.
It is a dedicated area to facilitate and support e-commerce activities which include the transportation of goods and products mainly in parcels and packages.
This is because most e-commerce products are sold and tranported in packages.
The products are transported via cargo airplanes or ships to buyers from all over the world.
How will the DFTZ benefit the rakyat?
DFTZ is an area which will be busy with business and logistics activities.
Malaysia Digital Economy Corporation (MDEC) chief executive officer Datuk Yasmin Mahmood said DFTZ will be busy with companies importing and exporting e-commerce goods which will mainly be in thousands of packages.
A total of US$65 billion worth of goods is expected to pass through DFTZ creating 60,000 jobs by 2025.
This will provide the rakyat with jobs enabling them to support themselves and their families.
The economic activities at DFTZ will also help make the economy active and stronger.
DFTZ will attract companies, make economy stronger
DFTZ has already attracted investors to come to Malaysia.
Datuk Yasmin told New Straits Times on October 2 that five investors have expressed interest with the government to further develop Port Klang in Selangor and Bukit Kayu Hitam in Kedah as e-commerce hubs.
These companies will set up operations to support their e-commerce business activities in Malaysia and the region.
And they will invest in Malaysia and help make our economy solid.
DFTZ will benefit the SMEs
DFTZ will definitely benefit Malaysia’s estimated one million SMEs.
This is because most of the products which the online shoppers order are mostly manufactured by SMEs.
This include clothes, shoes, make up and so many others.
Online shoppers from all over the world will buy from SMEs which include SMEs from Malaysia.
This is an economic activity which will give business to the SMEs and help its workers make a living.
DFTZ will boost business compeetition
DFTZ will boost the competition among Malaysian businesses.
Online shopping has given the rakyat a lot of choices.
And companies will work hard to deliver the best quality product to its customers.
This will intensify competition among companies.
This is good as it will boost the economy of the country.
Malaysia will become a new power in digital economy
The DFTZ will enable
Malaysia to take a step closer to become a global force in digital economy.
What is digital economy?
Digital economy is the economic activities related to e-commerce hubs such as the DFTZ which will earn the country an income and provide the rakyat with jobs.
This is good as the country has to spread its business activities and not just rely on manufacturing, crude oil and palm oil.
Malaysia has to diversify and the digital economy is the way forward for the country and the rakyat.