- This paper explores the digital divide in Malaysia by examining three aspects of digital inequalities from a demand-side perspective: first, internet penetration rates (access); second, data pricing (affordability); and third, several ways in which Malaysians use the internet (application). The paper also discusses why closing the digital divide requires more than just technical solutions and offers some policy considerations regarding meaningful connectivity and digital inclusion.
- Generally speaking, as at 2019, Malaysia is a highly digitally networked nation, with 90% of households using the internet, mostly through mobile broadband plans on smartphones. Internet usage trends show the digital generation gap closing, but the digital gender gap widening. Despite data affordability, there remains a positive relationship between median household income and both fixed and mobile broadband subscription rates.
- The most popular online activities among internet users in Malaysia are still oriented around communication, socialising, and media consumption, but economic activities rank highly as well, with approximately one in two internet users engaging in work-related activities, banking, and shopping online.
- Providing affordable digital access is just the first step in the digital transformation of a society. Policymakers would do well to consider the societal implications of an increasingly digital population before jumping ahead to automation, artificial intelligence, and 5G. Digital literacy, data privacy, cybersafety, and surveillance are just some of the issues that need to be addressed as part of the nation’s digital inclusion efforts.
- Six areas for future research and policy considerations are discussed: (1) Internet access as a public utility, (2) measurement of meaningful metrics, (3) the benefits of fixed broadband, (4) subsidies for devices, not just data, (5) reformatting of legal codes, and (6) focusing on fundamentals first.
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