Malaysia's MDEC to focus on three domains under Islamic digital economy ambit

Malaysia Digital Economy Corporation, a government agency tasked with leading the country's digital economy, will emphasize on three key domains within its Islamic Digital Economy (IDE) focus. 

The three domains include Islamic finance, halal and lifestyle. 

Syed Ibrahim Syed Noh, the agency's chairman said that it has been strategically designed to pave the way for a thriving ecosystem, Bernama reported.

The country's Islamic economy has been pivotal in its economy development, with MDEC identifying the Islamic digital economy as a promoted sector under its national Malaysia digital initiative.

Malaysia's Islamic finance assets stood at $3.6 trillion in 2021, and are forecast to reach to $4.9 trillion by 2025, a recent MDEC report revealed. Meanwhile, spending on halal food was recorded at $1.27 trillion in 2021, and is expected to grow to $1.67 trillion in 2025. Consumer spend on lifestyle sectors, such as travel, cosmetics and modest fashion, also totaled $467 billion, and is set to soar to $657 billion by 2025. 

MDEC is committed to nurturing IDE companies by offering a comprehensive ecosystem of mentorship, funding, business matching and market access, Noh added. 

"We are weaving a tapestry that fosters collaboration and effective partnerships between supply, demand, and enablers," he said, at the IDE Industry Conference 2023, earlier this week. 

"MDEC also serves as a bridge between traditional Islamic industries and the digital realm, by working close with halal certification bodies, Islamic financial institutions, and other stakeholders to integrate technology into their processes, thereby enhancing efficiency, transparency and compliance," Noh added.