DFTZ

by Aidiela, Gui Hua, and Kanchana

Have you ever heard about Digital Economy? Have you ever been joining a discussion on the Digital Free Trade Zone? Never ? Let us briefly explain to you about the newly model of economy called Digital Economy and the Digital Free Trade Zone.

The digital economy is a growing and popular trend in the global business landscape as the number of organizations, businesses and investors implement it is increasing. The digital economy refers to a form of commerce based on digital computing technology and is expected to be a way of doing business in the future. The methods used have proven to be the most cost effective and time-saving, compared to the traditional way of doing business.

Towards achieving developed nation status by 2020, Malaysia implemented a lot of strategies, including the transition from a traditional business way to a digital economy. This has enables local traders to continue to be competitive with foreign traders in this modern business environment. For example, a digital transformation program known as 'Digital Malaysia' will complement the country's transformation policy.

In March 2017, the Prime Minister of Malaysia, Datuk Seri Najib Tun Razak with the founder and Executive Chairman of Alibaba's e-commerce company, Jack Ma, launched the first Digital Free Trade Zone (DFTZ) outside from China in Kuala Lumpur.

Digital Free Trade Zone (DFTZ) is the latest government initiative in driving the development of the country's e-commerce sector, in line with the effort to strengthen the domestic economy. DFTZ is a preparatory effort to facilitate cross-border trade smoothly and enable local businesses to export their products through e-commerce. In other words, this initiative is to capitalize on the growth and growth of Internet economics and cross-border e-commerce activities.

DFTZ is the world's first trading zone that promotes e-commerce growth by featuring with the best platform for small and medium businesses (SMEs) to do business and offer their services to the world. It is the first e-hub outside of China and can give younger generation more access to the global market by reducing the barriers that exist in trade.