Digital FTZ to boost digital share of GDP to 25pc, say Internet Alliance

Customs clearance (pic) will be much faster with the set-up of the digital free trade zone. — Picture by Firdaus Latif
Customs clearance (pic) will be much faster with the set-up of the digital free trade zone. — Picture by Firdaus Latif

KUALA LUMPUR, March 17 — The initiative to set up a digital free trade zone (DFTZ) would boost the contribution from digital connectivity economy, said Internet Alliance, an association for Internet service providers.

In a statement today, its president Chan Kee Siak said the successful DFTZ implementation could boost the country's gross domestic product (GDP) contribution from digital connectivity economy.

"Currently, the contribution from the digital connectivity is about 16 per cent. We believe that a single focused effort such as DFTZ can boost it to as high as 25 per cent and beyond as soon as by year-end.

"IA believes so because the local Internet community is a fast adapter and knows how to organically leverage on any (good) initiative quickly," he said.

The DFTZ, a brainchild of Prime Minister Datuk Seri Najib Tun Razak, aims at boosting the country's e-commerce industry by primarily, knocking down tariffs imposed on items being shipped into the country that are priced over RM500 and enabling faster Customs clearance procedures.

The details of the DFTZ are expected to to be announced next month. — Bernama