MARCH 28 — Blockchain, artificial intelligence (AI), smart factories, robotics, data analytics, Internet of Things (IoT), e-commerce, cryptography.
The economic potential for these new technologies is enormous. At the same time, recent news reports clearly show the threat posed by technology.
AI could take high-paying service jobs in the accounting and legal fields, smart factories could take away good paying jobs, and IoT could mean a loss of privacy.
Whether Malaysia reaps the gains of innovation or not depends on Malaysia’s ability to enact pro-innovation policies and avoid regulations that may have the unintended anti-innovation consequences.
Take the issue of privacy regulation as an example. Companies have greater and greater access to personal data, from the smart watch that tracks your exercise to the social network where you post your favourite photos.
Consumers want and need protection from misuse of this data. But when a criminal can sell fake goods online anonymously, legitimate and creative businesses suffer – not to mention the public health and safety concerns if these goods turn out to be shoddy or dangerous.
Trade policies are another area for more scrutiny. E-commerce offers Malaysian SMEs amazing potential to serve markets inside and outside the country that previously would be unreachable.
Last year Malaysia established the world’s first digital free trade zone (dFTZ). This zone is designed to get Malaysian SMEs hooked into the global e-commerce fulfillment chain. But, recent research released by the OECD shows that for every FTZ inside a country, the production of counterfeit goods rises by five per cent.
Malaysia is poised to also be a major transit centre for the global supply chain. With the development of Port Klang and Malacca, Malaysia could overtake Singapore as one of the world’s largest trans-shipment hubs.
But, will Malaysian ports be innovative and protect consumers from the trade in dangerous counterfeit goods?
Using blockchain technology and sophisticated data analysis, Malaysia could lead the way in creating a secure global supply chain, and stop the trade in counterfeit goods in its tracks.
Public health is another area to look at the unintended consequences of well-meaning legislation which is stacking the deck against innovation and in favour of criminals.
Thailand passed laws last year to implement the plain packaging of tobacco products, which removes brands from cigarette packs. Singapore is currently considering similar laws.
One side effect of these laws is to make counterfeiting much easier and attractive by lowering the economic barrier to entry and increasing profit margins for the criminals.
Malaysia has so far been able to keep on the side of innovation and consumer protection by protecting brands and not implementing plain packaging.
Malaysian entrepreneurs will inevitably develop new products and services, and find new markets in Malaysia and abroad.
Whether the scales are tipped in favour of innovation or not will make the difference in developing a vibrant and successful Malaysian economy in the 21st century.
* Seth Hays is the International Trademarks Association’s chief representative in Asia Pacific.
** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail
