DIGITAL INCLUSION: ASSESSING

MEANINGFUL INTERNET CONNECTIVITY

IN MALAYSIA
1.1 Introduction 6 1.6 Further research and policy
considerations 26
1.2 What is the digital divide? 7
1.6.1 What is digital inclusion? 27
1.2.1 What is meaningful connectivity? 8
1.7 Conclusion 31
1.2.2 How is broadband defined? 9
1.8 Postscript 31
1.3 Assessing access 12
Appendix 1.1: Data pricing calculations 32
1.3.1 Global comparison: internet
penetration statistics 12 References 34
1.3.2 National demographics: internet
penetration by gender and age 13
1.3.3 State subscription rates: trends in
fixed and mobile broadband 15
1.4 Assessing affordability 18
1.4.1 Absolute pricing: how much does
internet access cost in Malaysia? 19
1.4.2 Relative pricing: is internet access
affordable in Malaysia? 20
1.5 Assessing application 22
1.5.1 What are Malaysians doing online? 22
1.5.2 Communication, social networks
and video streaming 23
1.5.3 Online banking 24
1.5.4 Online shopping 25

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CONNECTIVITY IN MALAYSIA2
By Rachel Gong

most important causes of our time. Today [in 2019], half

of the world is online. It is more urgent than ever to ensure the other half are not left behind
offline, and that everyone contributes to a web that drives equality, opportunity and

Sir Tim Berners-Lee3

Introduction
Sabahan student Veveonah Mosibin made international headlines4 in June 2020 when her video
of spending 24 hours in a tree to take her online examinations went viral. The Malaysian
Communications and Multimedia Commission (MCMC) responded by releasing a statement
indicating that plans had been made to build a new telecommunications tower5 where she lived,
which would improve the 3G coverage and service in the area, and to upgrade coverage in the
area to 4G under the Universal Service Provision (USP) fund.

that the average Malaysian has at least one way of accessing the internet, and that internet
penetration in Sabah in 2019 was 80.7%6
deeper structural inequality masked by macro-statistics?

This chapter 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 chapter also discusses why closing the digital divide requires more than just
technical solutions and offers some research and policy considerations regarding meaningful
connectivity and digital inclusion.

2 An earlier version of this chapter authored by Rachel Gong was published by KRI on 7 September 2020 as a Discussion

Digital Inclusion: Assessing Meaningful Internet Connectivity in Malaysia

3 webfoundation (2019)
4 BBC (2020)

5 MCMC (2020b)

6 MCMC (2020a)

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Even before the Covid-19 pandemic created pressures to accelerate nationwide digitalisation,
Malaysia was well on its path of digital transformation. The National Fiberisation and

7.
Efforts to improve digital
financial services and go cashless saw the average Malaysian making 150 e-payment transactions
in 2019, compared to just 83 in 20158, and schools and universities were trying out online classes
in line with the National e-Learning Policy 2.09. The pandemic has accelerated this process, and it
is imperative that efforts to develop a digital economy do not neglect the fundamentals of a digital
society, namely meaningful connectivity and digital inclusion.

Box 1.1: Definitions of digitisation, digitalisation and digital transformation

Digitisation: the process of making a digital (i.e. electronic) version of something

analogue, e.g. scanning a document or converting a paper ledger into an electronic
spreadsheet.
Digitalisation
10. This process changes the world of

individual, industry, and

11 e.g. automated filtering of resumes and first-round interviews taking

place via video-conferencing.

Digital transformation: the process of technological adoption and cultural change that
have broader socio-technological implications, e.g. influencers on social media becoming
primary news sources as paid print journalism declines.

What is the digital divide?

was primarily focused on digital inequalities in terms of internet access12. As internet connectivity
spread quickly in developed nations and the digital divide closed, at least in terms of access,
researchers turned their attention to other areas of digital inequalities, such as affordability,
quality of service and digital literacy13.

7 MCMC (n.d.)
8 Bank Negara Malaysia (BNM)
9 MOHE (n.d.)
10 Brennen and Kreiss (2016)

11 Muro et al. (2017)

12 DiMaggio, Hargittai, Celeste, et al. (2001), Robinson et al. (2015)

13 Hargittai, Piper, and Morris (2018)

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Most of this early research used socio-economic factors such as income and educational
attainment to predict internet use14, but as access became more ubiquitous, researchers flipped
their models and began to use internet access as a predictor of socio-economic and socio-political
outcomes. Initially, research indicated that people who were better off were more likely to use
the internet. Later research indicated that people who used the internet were likely to improve
their life outcomes, leading to a reinforcing cycle that could worsen existing inequalities.

Studies have shown, broadly speaking, that increases in internet accessibility are positively
associated with improvements in socio-economic outcomes, such as educational attainment, job
opportunities15, political engagement16 and health literacy17. These positive relationships have
been found not just in countries with developed infrastructure but in developing countries as
well.

computer processing power, the debate continues as to whether digital inequalities are the result
of existing socio-economic inequalities or the cause of continued and worsened social
inequalities. These are not mutually exclusive explanations, but both point towards the same
policy implication that one of the priorities of digital policy should be universal, affordable high-
speed internet access.

rights-based approach in providing and in expanding access to Internet and request[ed] all States
to make efforts to bridge the 18. The UN declared internet access a

human right and several countries such as Costa Rica, Finland, Greece and India have made it a
legal requirement that all their citizens have access to the internet. This does not mean that
service is provided at no cost; rather it means that government policy values internet access as a
public utility, like water and electricity.

1.2.1. What is meaningful connectivity?

An important shift in the conversation on the digital divide is a move away from a binary view of
internet access and towards a spectrum measuring multidimensional aspects of meaningful

just available, accessible, relevant and

19.

The Alliance for Affordable Internet (A4AI) has proposed a meaningful connectivity standard that
takes into account four dimensions, as shown in Table 1.1.

14 Howard, Busch, and Sheets (2010), Willis and Tranter (2006)

15 DiMaggio and Bonikowski (2008), Hjort and Poulsen (2019), Kuhn and Mansour (2014)
16 Samsudin A. Rahim (2018)

17 Neter and Brainin (2012)

18 UNHRC (2016)

19 ITU (2019)

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Table 1.1 Four dimensions of meaningful connectivity

Dimension of internet access Minimum threshold

Regular internet use Daily use
An appropriate device Access to a smartphone
Enough data An unlimited broadband connection at home or a place of work or study
A fast connection 4G mobile connectivity

Source: A4AI (2020)

Usage of this standard would mean that instead of evaluating the digital divide in terms of a single
binary measure of internet penetration, policymakers would assess progress to reduce the divide
along these four dimensions. At the time of writing, this standard has been tested in Colombia,
Ghana and Indonesia20.

1.2.2. How is broadband defined?

One of the difficulties in assessing the extent of the digital divide lies in the ways that terms are
defined and measured. For starters, the definition of broadband internet, which is commonly
understood to mean a high-speed connection that is always available (as compared to the early
days of the internet when users had to manually dial in each time they wanted to connect), is
inconsistently specified.

The International Telecommunication Union (ITU), a UN agency, in 2003 defined broadband as a

combination of connection capacit 21. In 2018, this definition was

22

Broadband Deployment Report, defined broadband connections as having a minimum 25Mbps

download speeds and 3Mbps upload speeds23.

The Malaysian government, in its National Broadband Initiative (NBI) in 2010, defined broadband
along two categories: broadband to high impact economic areas and businesses with a minimum
speed of 10Mbps and broadband to the general population with average speeds of 2Mbps 24. The
NFCP has set a target for internet service providers to deliver average speeds of 30Mbps for
download and 10Mbps for upload25. The definitions used in this chapter follow the 2019 MCMC
specifications of fixed broadband with speeds starting at 1Mbps and mobile broadband with
speed starting at 650kbps26.

20 A4AI (2020)
21 ITU (2003)
22 ITU (2018)

23 FCC (2018)

24 MCMC (2010)

25 MCMC (n.d.)

26 MCMC (2020a)

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Broadband can be further divided into fixed broadband and mobile broadband, as illustrated in
Figure 1.1. Fixed broadband refers to a connection tied to an unmoving location, for example, at
home, school or the office. Mobile broadband refers to a connection that is portable, usually
associated with a SIM card and accessed via a smartphone.

Figure 1.1: Broadband classification

Mobile broadband can be classified according to what generation of development it belongs to.
For simplicity, the following classifications are based on only the data transfer capabilities of each
generation. The first generation of mobile technology was analogue, that is, voice only. The second
generation (2G) allowed mobile users to transfer small bits of digital data, typically via text
messages; 3G allowed mobile users to transfer data at up to speeds of 21.6Mbps although in
practice speeds of 2Mbps were the norm. 4G was a big jump up from 3G, with speeds theoretically
able to reach over 100Mbps, and 5G is expected to jump an even bigger order of magnitude, with
data transfer speeds reaching over 1Gbps.

Until 5G infrastructure is widely installed and compatible devices reach the consumer market at
affordable prices, the average mobile broadband user will be limited to 3G or 4G service, which is
generally enough for typical consumer use such as checking email and social media, streaming
audio or video, or playing games. Table 1.2 summarises the development of internet service
provision in Malaysia.

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Table 1.2: A brief history of internet service provision in Malaysia

1985
internet service provider (ISP)a
1986 Rangkaian Komputer Malaysia (RangKom) is set up between academic institutions a
1991 JARING (Joint Advanced Integrated Networking) is launched as a separate entity which absorbed
RangKom and commercialised Internet access b
1992 A satellite link is established between Malaysia and the United States with speeds of 64kbps b
1994 JARING upgraded the average connection speed in Malaysia to 1.5Mbps, accessible via fixed
telephone lines in 16 major cities b
b
1996 Telekom Malaysia Berhad (TM) is
c
1998 TIME, Maxis, Mutiara (later known as Digi), Celcom and Prismanet received ISP licenses
The government passed the Communications and Multimedia Act 1998 (CMA) and Malaysian
Communications and Multimedia Commission Act (1998), which established the Malaysian
Communications and Multimedia Commission (MCMC)d
The Universal Service Provision (USP) fund is established to fund infrastructure costs of the Rural
Broadband Initiative (RBB). ISPs contribute 6% of weighted net revenue to the USP funde
2001 TM launched Streamyx that provided national coverage and at a minimum speed of 384kpbs f
2008 The Government formed the Broadband Implementation Strategy in 2008 which consisted of two
key strands: High Speed Broadband (HSBB) and Broadband to the General Population (BBGP) h
Public-private partnership (PPP) is established with TM for HSBB Phase 1 to provide speeds of
10Mbps to 100Mbps in strategic areash
2010 The government launched the National Broadband Initiative (NBI)g
TM launched its HSBB service, Unifi, providing 48 exchange coverage areas across Malaysia g
2015 Further PPPs are developed for Phase 2 of HSBB and Sub-Urban Broadband Project (SUBB) to
upgrade copper lines and improve speeds in suburban areas i
2018 Mandatory Standard on Access Pricing (MSAP) is implemented to regulate wholesale prices of
broadbandj
The Ministry of Communications and Multimedia launched the National Fiberisation and
Connectivity Plan (NFCP) to further improve high-speed broadband coverage nationwidej

Source: aMohamed b. Awang-Lah (1987), bNorfaezah binti Abd Halim (2010), cMCMC (2015b), dMCMC (2016b), eMCMC (2006),
fTelekom Malaysia (2002), gMCMC (2010a), hNor Akmar Shah Minan (2009), iTelekom Malaysia (2015), jRaju (2019)

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Assessing access
The first of the three aspects of the digital divide explored in this chapter is access, measured in
terms of internet penetration, user demographics and broadband subscription rates.

1.3.1. Global comparison: internet penetration statistics

According to the Department of Statistics (DOS), household internet use in Malaysia has increased
from 21% in 2009 to 90% in 201927. However, it is unclear from this statistic whether that refers
to a fixed connection or a mobile connection.

The MCMC reports slightly different statistics, indicating that broadband penetration rates per
100 inhabitants have increased from 17% in 2010 to 131% in 201928. In other words, for every
100 people in Malaysia, there are approximately 131 registered broadband subscriptions, most
of them in the form of SIM cards. It should be noted that this number is the sum of both fixed and
mobile subscriptions, which are not perfect substitutes. While it is highly likely that an individual
with a fixed broadband subscription also has a mobile broadband subscription, the reverse is not
as likely.

The DOS and MCMC numbers differ because of the distinct ways these agencies calculate internet
penetration. The DOS method employs a household survey in which respondents are asked
whether they used the internet in their household in the last three months. The MCMC method
takes the number of registered broadband accounts and divides it by the population of the
country, as estimated by DOS. Statistics from both agencies are reported to the ITU to evaluate
different measures of internet penetration. Table 1.3
rates to selected countries in 2017 and 2018.

Malaysia outperforms the global average in terms of internet users and mobile broadband
penetration b
provided to the ITU, 81.2% of individuals in Malaysia use the internet, compared to a global
average of 73.6% across 82 reporting countries. The 2018 numbers MCMC provided to the ITU
supply further detail, indicating a fixed broadband penetration rate of 8.6%, compared to a global
average of 15.5% across 178 reporting countries, and a mobile broadband penetration rate of
134.5%, compared to a global average of 111.2% across 179 reporting countries. The statistics
indicate that mobile broadband is preferred over fixed broadband globally, even in countries with
developed fixed line infrastructure.

27 DOS (2012, 2020a)

28 MCMC (2010a, 2020a)

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Table 1.3 internet penetration rates compared to selected countries, 2017, 2018

Country Internet users Internet users Fixed broadband Mobile broadband

(%, 2017) (%, 2018) (%, 2018) (%, 2018)
MALAYSIA 80.1 81.2 8.6 134.5
Selected benchmarks
South Korea 95.1 96.0 41.6 129.7
UK 94.6 94.9 39.6 118.4
US 87.3 - 33.8 129.0
Australia 86.5 - 30.7 113.6
China 54.3 - 28.5 115.5
India 34.5 - 1.3 86.9
Comparable GDP per capita
Kazakhstan 76.4 78.9 13.4 142.3
Poland 76.0 77.5 16.1 134.8
Mexico 63.9 65.8 14.6 95.2
Comparable population
Canada 91.0 - 39.0 89.6
Saudi Arabia 82.1 93.3 20.2 122.6
Ghana 39.0 - 0.2 137.5
Selected ASEAN
Singapore 84.4 88.2 28.0 148.8
The Philippines 60.0 - 3.7 126.2
Vietnam 58.1 70.3 13.6 147.2
Thailand 52.9 56.8 13.2 180.2
Indonesia 32.3 39.9 3.3 119.3

-
Source: ITU (2019)

1.3.2. National demographics: internet penetration by gender and age

Figure 1.2 shows the proportion of women in the Malaysian population and the proportion of
female internet users from 2012 to 2018. The proportion of women in the population remains
steady around 48.0%, but the proportion of female internet users declined over time from 43.6%
to 41.0%. This is a worrying trend as it indicates a possible increase in the digital gender divide.

The digital gender divide is not limited to Malaysia. Across the 100 countries, including Malaysia,
assessed in the Inclusive Internet Index 2020, men are 12.9% more likely than women to have
internet access29. The index indicates that this digital gender gap becomes wider as income levels
decrease. An expert survey conducted by the A4AI
and the World Wide Web Foundation in 2018 found that Malaysia had a gender-responsive
-specific targets for internet access and digital
skills training, with 30. The implementation

and outcomes of this policy will need to be evaluated to determine its effectiveness.

29 EIU (2020)
30 webfoundation (2018)

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Figure 1.2: Percentage of women in Malaysia vs Figure 1.3: Percentage of population aged >50 in
internet users Malaysia vs internet users

50% 50%
45% 45%
40% 40%
35% 35%
30% 30%
25% 25%
20% 20%
15% 15%
10% 10%
5% 5%
0% 0%
2012 2014 2016 2018 2012 2014 2016 2018

Population Internet Users Population Internet Users

Source: DOS population estimates, MCMC Internet Users Survey 2012, 2014, 2016, 2018

Figure 1.3 shows the proportion of the Malaysian population aged 50 and above and the
proportion of internet users in this age group from 2012 to 2018. This proportion of this age
group in the general population increased slightly from 17.2% to 19.3% during this time period,
but the proportion of internet users in this age group increased much more rapidly from 4.2% to
16.0% as internet usage increases overall.

While those in their 20s continue to form the biggest age group among internet users, data
suggest that the digital age gap is closing. The age of the average internet user in Malaysia
increased from 29.7 years in 2012 to 36.2 years in 201831. As the time period under analysis is
just 2012 2018, this effect is likely not only due to internet users moving up into the next age
group, but also likely indicates that more seniors are coming online.

On the one hand, this is an encouraging finding, indicating that Malaysians of all ages are adopting
digital technologies. On the other hand, older internet users who have limited technological
exposure and experience may find themselves at greater risk of becoming victims of cybercrime,
especially fraud and scams, or distributors of misinformation on social media. Reports indicate
that there are seniors unfamiliar with terminology, including cashless and online payments who
are struggling to find appropriate education, guidance and support32. Seniors also report less
experience with computers, the internet and technology in general33. As such they could be
uncomfortable with the pace at which digital technology evolves and may be reluctant to try
relatively more complicated tools such as cashless online payment apps even as they embrace
social media and messaging apps34.

31 MCMC (2014, 2019b)

32 Wong et al. (2018), Yaakob, Wan Hassan, and Daud (2016), Yeoh (2019)
33 Hui (2016)

34 Andalib and Hashim (2018), Wong et al. (2018)

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1.3.3. State subscription rates: trends in fixed and mobile broadband

The following figures show trends in broadband subscription rates at state-level from 2011
2019. Figure 1.4 shows state trends in broadband subscription rates while Figure 1.5 shows state
trends in mobile broadband subscription rates. Both figures are sorted in descending order of
fixed broadband subscription rates for ease of comparison.

Kuala Lumpur has the highest subscription rates among the states for both fixed and mobile
broadband. The fixed broadband subscription rate peaked in Kuala Lumpur in 2014 at 23.1% but
then declined as mobile broadband gained popularity. As at 2019, Kuala Lumpur, Selangor, Pulau
Pinang and Putrajaya outperform the national average in terms of fixed broadband subscription
rates.

Mobile broadband penetration in Kuala Lumpur is significantly higher than all the other states;
the mobile broadband subscription rate in Kuala Lumpur in 2019 is 249.6%, implying that, on
average, every resident has at least two SIM cards. There are at least two possible explanations
for this high number. First, Kuala Lumpur has a larger number of large firms that are likely to

by tourists may have inflated the subscription rates.

Overall trends show fixed broadband subscription rates remaining relatively flat over the years,
with a national rate of 9.0% in 2019 versus 7.6% in 2011. These statistics indicate that there are
approximately nine registered fixed broadband subscriptions for every 100 inhabitants.
However, since the average household size in Malaysia is 3.9 people35, it would be reasonable to
assume that approximately 35% of the population has access to a fixed broadband connection.

Mobile broadband subscription rates, on the other hand, show substantial growth beginning in
2015, which accounts for the steep growth from a national rate of 11.6% in 2011 to 122.7% in
2019. This growth can be attributed to at least three developments circa 2015. First, there was
the roll out of 4G beginning in 2013 that supplemented the migration from 2G to 3G, all of which
improved mobile broadband quality of service. Second, smartphones prices dropped, which made
them more widely affordable. Third, telephone companies (telcos) responded by heavily
promoting mobile data packages36.

35 DOS (2020b)
36 MCMC (2016)

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Figure 1.4: Fixed broadband subscription rates by state, 2011 2019

Ku

WP Kuala Lumpur
24%
National
16%
State
8%

0%
2011 2013 2015 2017 2019

Selangor Pulau Pinang WP Putrajaya

24% 24% 24%

16% 16% 16%

8% 8% 8%

0% 0% 0%
2011 2013 2015 2017 2019 2011 2013 2015 2017 2019 2011 2013 2015 2017 2019

Johor Melaka Negeri Sembilan

24% 24% 24%

16% 16% 16%

8% 8% 8%

0% 0% 0%
2011 2013 2015 2017 2019 2011 2013 2015 2017 2019 2011 2013 2015 2017 2019

WP Labuan Perak Sarawak

24% 24% 24%

16% 16% 16%

8% 8% 8%

0% 0% 0%
2011 2013 2015 2017 2019 2011 2013 2015 2017 2019 2011 2013 2015 2017 2019

Perlis Kedah Pahang

24% 24%
24%
16% 16% 16%
8% 8% 8%
0% 0% 0%
2011 2013 2015 2017 2019 2011 2013 2015 2017 2019 2011 2013 2015 2017 2019

Terengganu Sabah Kelantan

24% 24% 24%

16% 16% 16%

8% 8% 8%

0% 0% 0%
2011 2013 2015 2017 2019 2011 2013 2015 2017 2019 2011 2013 2015 2017 2019

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Figure 1.5: Mobile broadband subscription rates by state, 2011 2019

WP Kuala Lumpur
250 %
200 % National
150 %
State
100 %
50 %
0%
2011 2013 2015 2017 2019

Selangor Pulau Pinang WP Putrajaya

250
250% 250
250% 250
250%
200 200 200
150 150 150
100 100 100
50 50 50
0 0 0
2011 2013 2015 2017 2019 2011 2013 2015 2017 2019 2011 2013 2015 2017 2019

Johor Melaka Negeri Sembilan

250
250% 250
250% 250
250%
200 200 200
150 150 150
100 100 100
50 50 50
0 0 0
2011 2013 2015 2017 2019 2011 2013 2015 2017 2019 2011 2013 2015 2017 2019

WP Labuan Perak Sarawak

250
250% 250
250% 250
250%
200 200 200
150 150 150
100 100 100
50 50 50
0 0 0
2011 2013 2015 2017 2019 2011 2013 2015 2017 2019 2011 2013 2015 2017 2019

Perlis Kedah Pahang

250
250% 250%
250 250
250%
200 200 200
150 150 150
100 100 100
50 50 50
0 0 0
2011 2013 2015 2017 2019 2011 2013 2015 2017 2019 2011 2013 2015 2017 2019

Terengganu Sabah Kelantan

250
250% 250
250% 250%
250
200 200 200
150 150 150
100 100 100
50 50 50
0 0 0
2011 2013 2015 2017 2019 2011 2013 2015 2017 2019 2011 2013 2015 2017 2019

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Table 1.4
subscription rates as at 2019, sorted by state median household incomes. States whose median
household income is above the national average are likely to have fixed and mobile broadband
subscription rates that also outperform the national average, although the direction of causality
cannot be conclusively determined. The data suggest that there is a significant positive
relationship between fixed broadband subscription rates and median household income, and that
this relationship is weaker between mobile broadband subscription rates and median household
income.

Table 1.4: Broadband subscription rates and median household incomes, by state, 2019

State Fixed broadband (%) Mobile broadband (%) Median household income (RM)
MALAYSIA 9.0 122.7 5,873
WP Kuala Lumpur 16.4 249.6 10,549
WP Putrajaya 12.5 102.1 9,983
Selangor 15.8 130.5 8,210
WP Labuan 8.1 107.8 6,726
Johor 9.9 142.0 6,427
Pulau Pinang 12.9 143.3 6,169
Melaka 9.9 116.3 6,054
Terengganu 4.7 96.4 5,545
Negeri Sembilan 9.0 137.4 5,005
Perlis 5.5 108.5 4,594
Sarawak 5.9 107.4 4,544
Pahang 4.7 102.3 4,440
Kedah 5.3 100.0 4,325
Perak 8.0 116.2 4,273
Sabah 3.1 82.0 4,235
Kelantan 2.5 93.0 3,563

Note: Figures diverge slightly from MCMC statistics due to rounding.

MCMC 2020

Using Household Income Survey (HIS) data from 2012, 2014 and 2016, state median household
incomes and fixed broadband subscription rates, the latter lagged by a year, were found to be
positively correlated (r(46) = .72, p<.001) while state median household incomes and mobile
broadband subscription rates, also lagged by a year, were found to have a weaker positive
correlation, (r(46) = .59, p<.001).

Assessing affordability
The second of the three aspects of the digital divide explored in this chapter is data affordability,
measured using data pricing for both fixed and mobile broadband and considered in absolute and
relative terms.

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1.4.1. Absolute pricing: how much does internet access cost in Malaysia?
Mobile broadband plans are typically priced according to how much data is allocated over a fixed
period, e.g. 20GB per month. Fixed broadband plans are typically priced according to the speed
at which data are transferred, e.g. 100Mbps, and do not limit the amount of data transferred.

Figure 1.6: Mobile broadband prices per GB and subscription rates, 2012 2019
RM40 140%

RM35 120%

RM30
100%

RM25
80%
RM20
60%
RM15

40%
RM10

RM5 20%

RM0 0%
2012 2013 2014 2015 2016 2017 2018 2019

Postpaid Price Prepaid Price Subscription Rate

Source: calculations based on web and MCMC data

Figure 1.6 shows the absolute price per GB of mobile data from 2012 to 2019. As might be
expected, as the price of mobile data drops, the total number of mobile broadband subscriptions
increase. From 2012 to 201837, prepaid subscriptions comprised, on average, 79.4% of all mobile
broadband subscriptions. Prepaid subscriptions are slowly declining, making up 72.7% of all
mobile broadband subscriptions in 201838. Postpaid plans are generally better value than prepaid
plans, but usually require a payment commitment and come at higher prices.

Figure 1.7 shows the monthly price of a fixed broadband subscription with unlimited data from
2012 to 2019. Fixed broadband prices do not appear to have affected subscription rates very
much, even when the price of the cheapest unlimited data subscription dropped by about 40%
from 2016 to 2019. This decrease in price was partly attributable to the implementation of the
Minimum Standard on Access Prices (MSAP). The MSAP regulates the price of wholesale
broadband prices, effectively driving down the price of retail broadband.

37 2019 data were not available at the time of writing.

38 MCMC (2016, 2019)

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Figure 1.7: Fixed broadband prices and subscription rates, 2012 2019
RM160 20%

18%
RM140
16%
RM120
14%
RM100
12%

RM80 10%

8%
RM60
6%
RM40
4%
RM20
2%

RM0 0%
2012 2013 2014 2015 2016 2017 2018 2019

Price Subscription Rate

Source: calculations based on web archive and MCMC data

Reports indicate that, as a result of the implementation of the ial

39 from August 2018 to August 2019

100 Mbps rose eight- 40. However, the upgrade in quality

of service at lower prices does not necessarily correspond to an increase in the number of new
fixed broadband subscribers. As seen in Figure 1.7, the total number of fixed broadband
subscribers increased by approximately 10.2% from 2018 to 2019.

1.4.2. Relative pricing: is internet access affordable in Malaysia?

In order to close the affordability gap, it is necessary but not sufficient for absolute data pricing
to decrease over time. Internet access could remain at a relatively higher cost for low income
groups, hence the need to assess not just price, but price relative to income.

In addition to its proposed standards for meaningful connectivit

41

Broadband Commission for Sustainable Development in 2018 as part of its goal to close the global
digital divide.

To assess whether broadband prices in Malaysia meet this affordability threshold, a variation of
est unlimited
data fixed broadband plans available from 2012 to 2019. Median individual monthly income was
estimated and used for the calculation instead of gross national income per capita.

39 Bernama (2019)
40 Bernama (2019)
41 A4AI (2019)

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Using this benchmark, Malaysia performs well in terms of mobile broadband affordability. In
2019, the price per GB of data for both prepaid and postpaid mobile broadband is less than 0.3%

expensive than postpaid data, as shown in Table 1.5. In Kelantan, where a mobile data plan is the
most expensive, relative to the rest of the country, 1GB of prepaid mobile data costs 0.25% of the

threshold and indicates that mobile data in Malaysia is generally very affordable.

Fixed broadband data does not appear to be as affordable as mobile broadband data. Table 1.5

Table 1.5: Data pricing as a percentage of median monthly individual income, 2019

State Prepaid mobile Postpaid mobile Fixed broadband Fixed broadband

(per GB) (per GB) (per GB) (unlimited data)
WP Kuala Lumpur 0.09% 0.06% 0.08% 1.52%
WP Putrajaya 0.09 0.06 0.09 1.60
Selangor 0.11 0.07 0.10 1.95
WP Labuan 0.13 0.09 0.13 2.38
Johor 0.14 0.09 0.13 2.49
Pulau Pinang 0.15 0.10 0.14 2.60
Melaka 0.15 0.11 0.14 2.65
Terengganu 0.16 0.12 0.15 2.89
Negeri Sembilan 0.18 0.13 0.17 3.20
Perlis 0.20 0.13 0.19 3.49
Sarawak 0.20 0.13 0.19 3.53
Pahang 0.20 0.13 0.19 3.61
Kedah 0.21 0.14 0.20 3.70
Perak 0.21 0.14 0.20 3.75
Sabah 0.21 0.14 0.20 3.78
Kelantan 0.25 0.17 0.24 4.50

archive data and HIS 2019

At first glance, it seems that fixed broadband is only affordable at the 2% threshold in Kuala
Lumpur, Putrajaya and Selangor. This analysis suggests a plausible explanation for why an
individual might not want to subscribe to fixed broadband especially if they are already paying
for a mobile broadband subscription.

However, this interpretation of the data for fixed broadband pricing is not strictly comparable to
mobile data pricing for two reasons. First, this is a variation of the affordability measure that does
not consider the price per GB of data, instead calculating the price of access to unlimited data.
Second, fixed broadband access is accessible in the household by more than one person, but the
price is calculated for an individual subscriber. Thus, if multiple household members use large
quantities of data, it is likely that the price per GB of fixed broadband data would be lower than
the price per GB of mobile broadband data.

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Assuming that the average internet user uses approximately 9GB of data per month at home and
the average Malaysian household comprises four people, at least two of whom use that much data,
the estimated price per GB of fixed broadband data does become comparable to the price of
prepaid mobile data, as shown in Table 1.542. Nonetheless, as mobile services are the preferred
means of internet access in Malaysia, take-up of fixed broadband for supplementary internet
access remains low.

This analysis implies that data affordability is not the barrier to getting people connected, as
mobile data plans are extremely affordable. However, internet users solely on mobile plans may
not be able to take advantage of the benefits of fixed broadband connectivity unless they are able
to pay for two broadband subscriptions.

Assessing application
The third of the three aspects of the digital divide explored in this chapter is application,
measured using indicators of five of the top ten online activities in Malaysia communicating by
text, visiting social networking platforms, video streaming, online banking and online shopping.

The following analyses use selected data to gain insight into how Malaysians use the internet.
Unless specifically stated, these data are not nationally representative, and should not be used to
generalise across the Malaysian population. They simply indicate trends and the distribution of
online activities for subsets of internet users in Malaysia.

1.5.1. What are Malaysians doing online?

Figure 1.8 shows the ten most popular online activities among internet users in Malaysia in 2018,
sorted by the proportion of internet users who report engaging in such activities. Communicating
by text ranked first, followed by visiting social networking platforms. Streaming videos online
was the fourth most popular online activity, with online banking and online shopping in ninth and
tenth place, respectively.

Figure 1.8: Online activities, 2018

Communicate by text 96.5

Visit social networking platform 85.6

To get information 85.5

Watch or download video/online TV 77.6

Work related 61.9

Communicate by voice/video 60.6

Study 60.2

Read online publication 56.3

Online banking and financial activities 54.2

Online shopping/booking 53.3

0% 20 40 60 80 100
Source: MCMC Internet Users Survey 2018

42 See Appendix 1.1: data pricing calculations for further details on this estimate.

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1.5.2. Communication, social networks and video streaming

In 2019, mobile internet users in Malaysia used approximately 14GB of data each month43. Figure
1.9 shows the share of internet data used by four of the most popular data-intensive mobile apps
in 2019. These four apps YouTube, Facebook, Instagram, and WhatsApp rank among the top
ten mobile apps, in terms of data volume, used by unifi Mobile users in 2019.

Figure 1.9: Unifi Mobile data usage for top four apps, by state, 2019

Selangor
YouTube
Johor
WP Kuala Lumpur Instagram
Sabah
Facebook
Sarawak
Perak WhatsApp

Pulau Pinang
Pahang
Kedah
Kelantan
Terengganu
Negeri Sembilan
Melaka
WP Putrajaya
Perlis
WP Labuan

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Note: Share of data usage is limited to these four apps and does not represent total mobile data usage.
Berhad upon request

These data are in line with the 2018 MCMC survey findings as three of these four apps are the
preferred apps used for the two most popular online activities of 2018. WhatsApp was the most
popular text communication app, being used by 98.1% of internet users who used such apps.
Facebook and Instagram were the two most popular social networking apps, used by,
respectively, 97.3% and 57.0% of social network users.

The fourth most popular online activity, video streaming, generated the most amount of data,
which is expected as videos are data-intensive. Across all states, YouTube generated the biggest
share of data volume, averaging 50% of data used by these four apps. While there are other apps
and platforms used for video streaming such as Astro Go, iFlix and Netflix, YouTube was the most
data-intensive app among unifi Mobile users.

Facebook was the most popular social networking platform among internet users in 2018, but in
2019 Instagram generated more data volume than Facebook among unifi Mobile users. This may

content being more data-

43 This approximation is based on numbers in the Axiata, Digi and Maxis 2019 annual reports.

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Although it is the most commonly used app for the most common online activity (communication
by text), WhatsApp data made up the smallest proportion of data traffic among the four apps. This
is to be expected because, photo and video sharing notwithstanding, the majority of WhatsApp
exchanges occur through text and voice, which have a smaller data footprint than videos.

While the data sample used in this analysis are not nationally representative, there is no reason
to expect internet use behaviour to differ significantly across service providers. It is reasonable
to assume that the data volume would be proportionally similar across service providers. This
and digital content in Malaysia is being driven by
Google and Facebook, the latter which owns Instagram and WhatsApp, and all together make up
four of the most data-intensive apps in the country.

1.5.3. Online banking

Online banking and financial activities comprised the ninth most popular online activity in 2018.
Figure 1.10 shows the indexed growth trends of bank accounts, active online accounts44, and
online financial transactions from 2011 to 2019. Figure 1.11 shows active online accounts as a
percentage of total number of bank accounts from 2011 to 2019. The growth rate of online
accounts, which increased starting in 2015, can be expected to continue or increase given the
efforts made by Bank Negara Malaysia (BNM) to move Malaysia towards adopting electronic
payments and becoming a cashless society.

Figure 1.10: Growth trends of bank accounts, online Figure 1.11: Online accounts as a percentage of
accounts, and online transactions, 2011 2019 total bank accounts, 2011 2019
(2011 = 1)
10 50%
Bank Acc
9 45%
Online Bank Acc
8 40%
Online Transaction
7 35%

6 30%

5 25%

4 20%

3 15%

2 10%

1 5%

0 0%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2011 2012 2013 2014 2015 2016 2017 2018 2019

data provided by BNM upon request

Active online accounts are defined as internet/mobile banking subscriptions with at least one online transaction per
44

month.

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The number of online transactions per month has increased almost nine-fold over the last nine
years while the number of online accounts has increased five-fold. Online accounts remain less
than half the total number of bank accounts in 2019, indicating that there is still room for growth
in digital financial services. The Covid-19 pandemic is likely accelerating the transition to cashless
systems.

Not only do electronic payment systems provide cost savings and improve efficiency, but they are
also a means of extending financial services to unbanked communities. In addition to digital
banking services provided by traditional banks, BNM has issued licenses to 47 non-bank e-money
issuers to provide electronic payment systems, including e-wallets such as Boost, GrabPay, and
TouchNGo45. Widespread take-up of digital financial services at all levels of society is important
in facilitating the transition to a cashless society.

ork (ICTF) would allow cross-

platform transactions from bank accounts to non-bank e-wallet accounts. In a market with
multiple e-wallets, such interoperability would improve efficiency and convenience by allowing
an e-wallet user to seamlessly pay and receive funds from users of other participating e-wallets.
Not only would this facilitate personal and commercial transactions, it could also facilitate the
disbursal of social assistance and social protections, including the PRIHATIN economic stimulus
package (PRIHATIN) funds, to financially under-served populations in rural and remote areas.

1.5.4. Online shopping

Online shopping was the tenth most popular online activity in 2018 and is likely to rise in the
rankings as a result of the pandemic. Figure 1.12 shows the distribution by state of the number of
Pos Laju e-commerce deliveries per thousand people in 2018 and the median monthly household
income in 2016 relative to their respective national averages, which are scaled to zero. This
me in 2016 was approximately RM2,000 more than
the national average median household income and the number of e-commerce deliveries per
thousand people in Selangor in 2018 was approximately 600 packages more than the national
average of deliveries per thousand people.

A pattern emerges between household income and online shopping, where states with higher
median household incomes receive more e-commerce deliveries per thousand people, Negeri
Sembilan being an exception to the rule. It should be noted that this chart represents e-commerce
deliveries fulfilled by one specific courier whose market share may not be consistent across
states. Nonetheless, the data reveal how income inequalities and digital inequalities are linked.

45Data on the take-up rates and geographic distribution of these electronic payment systems were not available at the
time of writing.

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These economic and digital inequalities can have public health consequences. Digital inequality
scholars point out that those on the privileged side of the digital divide can work from home, stay
in touch with friends and family online, and have their groceries, meals and household supplies
ordered online and delivered. They are better equipped to remain sheltered and connected, thus
lowering their exposure and risk to the coronavirus46. Nor are health concerns related solely to
the coronavirus. Socially-isolated individuals with limited or no internet connectivity during
quarantines or movement control orders may face mental health challenges such as anxiety or
loneliness and may not be able to get the regular healthcare they need without access to
telemedicine.

Figure 1.12: Pos Laju e-commerce deliveries per thousand people, relative to national averages, by state, 2018

WP Kuala Lumpur
Selangor
Negeri Sembilan
Johor
Melaka
Pulau Pinang
Sarawak
Pahang
Terengganu
Perak
Perlis
Kedah
Sabah
Kelantan

-3,000 -2,000 -1,000 0 1,000 2,000 3,000 4,000

Volume Per '000 Median HH Income National Averages

Note: Delivery data for WP Labuan is captured under Sabah and WP Putrajaya under Selangor.

Further research and policy considerations

Three aspects of the digital divide in Malaysia have been examined in this chapter: internet
penetration rates (access), data pricing (affordability), and internet use (application).
Generally, 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.
Mobile data plans are affordable and popular, with national mobile broadband subscription rates
exceeding 130% while national fixed broadband subscription rates lag behind at 9.0%. However,
internet users solely on mobile plans may not be able to take advantage of the benefits of fixed
broadband connectivity unless they are able to pay for two broadband subscriptions. Despite data
affordability, there remains a positive relationship between median household income and both
fixed and mobile broadband subscription rates.

46 Robinson et al. (2020)

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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.
What then of the story of Veveonah Mosibin that opened this chapter? First and foremost, her
story demonstrates that there remains a need for improved network coverage and quality of
service, important supply-side considerations that are outside the scope of this chapter.

Her story also underlines why the digital divide is a pressing policy issue that needs to be
considered from a demand-side perspective. As discussed earlier, improving digital access,
affordability, and literacy could lead to gains in educational attainment, economic opportunity,
and health literacy, all of which are important as Malaysia recovers from the Covid-19 pandemic
and continues its development and growth, including its efforts towards digital inclusion.

1.6.1. What is digital inclusion?

Digital inclusion is a broad policy-driven approach tow
communities, including the most disadvantaged, have access to and use of Information and
Communication Technologies (ICTs). This includes [five] elements:

1) affordable, robust broadband internet service;

2) internet-enabled devices that meet the needs of the user;
3) access to digital literacy training;
4) quality technical support; and
5) applications and online content designed to enable and encourage self-sufficiency,
participation and collaboration.

Digital inclusion must evolve as technology advances. Digital inclusion requires intentional
strategies and investments to reduce and eliminate historical, institutional and structural
47.

Digital inclusion is about more than closing the digital divide. Building more infrastructure,
improving network performance, and developing devices and apps that are easier to use and
more secure are important technical solutions to the problem of the digital divide. But digital
inclusion also requires social solutions, including addressing social inequality, rethinking social
norms and behaviours, and thinking proactively about the societal implications of digitalisation,
including education, healthcare, and social cohesion.

Providing affordable digital access is just the first step in the digital transformation of a society.
Researchers and policymakers must 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

47 NDIA (n.d.)

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The findings of this chapter invite further investigation on the uses, benefits and risks of digital
technologies in a networked, data-driven society. The following topics are presented for both
research and policy consideration:

Consideration #1: Internet access as a public utility

Internet access is important for more than just economic outcomes, and is key to social
development. As described earlier, the UN has declared internet access a human right and several
countries have made it a legal requirement that all their citizens have access to the internet. This
policy implies that governments should take the lead on the funding and provision of
infrastructure in non-profitable areas, especially rural areas deemed unprofitable to private
service providers.

In Malaysia, this is managed using the Universal Service Provision (USP) fund under Section 204
of the Communications and Multimedia Act (CMA) 1998. Telecommunications licensees whose
annual revenue exceeds RM2 million contribute 6% of their weighted net revenue to the USP
fund. This fund is currently the central source of funding for the NFCP but, should this prove
insufficient to ensure universal coverage of populated areas, additional funds should be allocated
for the provision of internet infrastructure.

The public sector should be cautious of entering into public-private partnerships where private

programme was intended to bring free internet access to rural areas in India by allowing users to
ecommunications regulators rejected this plan
because it violated net neutrality, meaning that it privileged some services (including Facebook)
instead of allowing equal access to all online content48.

Consideration #2: Measurement of meaningful metrics

As described earlier, the A4AI has proposed a new standard on meaningful connectivity, which
includes four dimensions: enough speed, an appropriate device, enough data, and daily access.
The organisation has proposed a method of applying this standard and has tested it in Colombia,
Ghana, and Indonesia49. The adoption of these metrics to complement internet penetration rates
would allow policymakers to identify specific dimensions where a digital divide might exist and
to address those gaps accordingly.

The A4AI standard also calls for a gender-disaggregated measure along these dimensions to
examine where gender inequalities might exist. Because national identification numbers used to
register broadband subscriptions include information on gender, Malaysia is well-placed to
gather this data as a means of evaluating the efficacy of its gender-responsive broadband policies.

Existing surveys included data on gender, but data analysis was not always done with gender-
disaggregation in mind. Allowing researchers access to existing microdata that includes gender
information would permit historical analysis of digital gender inequalities to better assess if the
gaps are closing.

48 Bhatia (2016)
49 A4AI (2020)

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Consideration #3: The benefits of fixed broadband

Several studies have found that mobile broadband is a substitute for fixed broadband while fixed
broadband is a complement to mobile broadband50. This corroborates the finding that mobile
connectivity is becoming far and away the preferred means of internet access, driven by the
advance and falling prices of mobile devices and mobile services globally51.

Nonetheless, fixed broadband has several advantages over mobile broadband, typically offering
higher data transfer speeds, better network stability and unlimited data. For a household that
generates high amounts of media streaming traffic, whether streaming movies for entertainment,
attending video conferences for work or attending university or school classes, a fixed broadband
subscription would be a useful supplement to individual mobile subscriptions. This is particularly
important in Malaysia where the most popular online activities are all data-intensive.

Furthermore, fixed broadband access, whether at home, work or school, is associated with a non-
mobile access device, such as a desktop or laptop computer, on which, arguably, users are more
likely to be engaging in educational and/or productive work, compared to mobile access devices
such as tablets and smartphones. The next generation of workers are likely to develop and hone
their digital skills such as data analysis, coding and design on non-mobile devices that have
greater processing power and better network performance. As such, the provision of internet
infrastructure should not be entirely focused on mobile service provision while fixed broadband
service provision is neglected.

Consideration #4: Subsidies for devices, not just data

plans are generally affordable. However, it also finds that Malaysia does not perform as well with
respect to the affordability of access devices, e.g. entry-level smartphones52. Malaysian schools
wrestled with online education in response to the Covid-19 pandemic as 37% of students did not
have appropriate learning devices at home53.

As with considerations of the value of fixed broadband connectivity, so with considerations of

non-mobile access devices such as personal computers. Research indicates that having access to
an internet-enabled device is more effective than reducing mobile prices in increasing broadband
penetration54. Programmes subsidising or providing devices to under-served groups could be
developed alongside programmes subsidising broadband subscriptions. Once network
infrastructure has been established, the USP fund could be redirected for this purpose, which is
still in line with its objective to provide access to internet access throughout the country.

50 Bae, Choi, and Hahn (2014), Prieger (2013), Srinuan, Srinuan, and Bohlin (2012)
51 Roessler (2018)
52 EIU (2020)

53 Hawati Abdul Hamid and Jarud Romadan Khalidi (2020)

54 Hawthorne and Grzybowski (2019)

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Consideration #5: Reformatting of legal codes

The UN Broadband Commission for Sustainable Development notes that there are potential
downsides to digital connectivity, especially for vulnerable groups such as women, children and
seniors. These downsides include online harassment, stalking, bullying, hate speech, exploitation,
fraud and scams. Legal frameworks and digital laws that take into account digital technologies
have to be developed or amended from existing laws to better protect internet users from these
risks. This entails a review of existing laws written in and for an analogue world to ensure they
can be appropriately applied in a digitalised society.

Also needed are regulations around data governance that protect individual privacy and national
data sovereignty. The existing Personal Data Protection Act (PDPA) restricts how personally
identifying data may be distributed but is rarely enforced55
Protection Regulation (GDPR) provides a model that limits personal data collection to only what
is necessary, does not allow data to be used for purposes other than what was originally intended,
and limits how long data can be stored.

Consideration #6: Focusing on fundamentals first

There is much to be said about (and for) technological developments and innovative applications
such as 5G and artificial intelligence leading to the development of smart cities that respond to
citizen actions and needs in real-time. However, before they can benefit from those technologies,
Malaysians should first have meaningful universal connectivity.

For example, much has been made of the improved performance of 5G connectivity that will
enable things like remote surgery and sensor-controlled factories. But in order to provide 5G
service, additional infrastructure must be built and 5G poles must be even more closely placed to
each other than current telecommunications towers providing 3G and 4G service.

Furthermore, internet users will need newer and more expensive devices that are 5G-compatible.
This implies that urban and industrial areas are more likely to benefit from 5G compared to rural
and agricultural areas, further increasing socio-economic inequality.

A more digitally inclusive policy should prioritise improving digital education and the suite of
digital services available to internet users at all strata of society. This includes (1) improving
digital literacy, e.g. avoiding scams and verifying information on social media; (2) improving
digital skills, e.g. software, coding and data analysis; and (3) improving digital services provision,
e.g. government and financial services websites and apps.

55 Gong and Chiam (2019)

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Conclusion
This chapter presents an overview of state of broadband connectivity and internet use in Malaysia
as at 2019, but as with much in the field of digital technology the statistics cited within will soon
be obsolete, if they are not already. However, the problem of digital inequalities and the
challenges to meaningful connectivity and digital inclusion are prevailing and pressing policy
issues. Research must keep up with rapidly changing trends in order to understand how
technological advances affect social and economic outcomes. Policy must be flexible enough to
adjust to new and unintended consequences of digital transformation. Technology, especially
digital technology, evolves quickly, and the appropriate policy response should be to move fast
without breaking things.

Postscript
The Malaysia Digital Economy Blueprint56 launched in February 2021 represents a national
digital transformation policy to enable Malaysia to be a regional leader in the digital economy.
Th

takes a broad approach to digitalisation, focusing on six key areas: the public sector, firms, digital
infrastructure, human capital, digital inclusion, and a secure and ethical digital ecosystem.

Many of the thrusts and strategies outlined in the blueprint are aligned with the policy
considerations discussed in this chapter, which was first published as a paper in September 2020.
In particular, the blueprint mandates broadband as basic infrastructure (Consideration #1),
prioritises the provision of digital public sector services (Consideration #6), and recognises that
data affordability is not enough devices must be provided as well, specifically to students
(Consideration #3). The blueprint also acknowledges the need to review laws and regulations to
accelerate the rollout of digital infrastructure, to facilitate entry to and innovation in the market,
and strengthen data protections (Consideration #5).

The blueprint does not fully detail how these policies will be implemented, particularly as they
require coordination and cooperation across government agencies, corporations, and social
institutions. There is room for further discussion and improvements to these strategies, but in
principle they bode well for the development of not just a digital economy, but a digital society in
Malaysia.

56 EPU (2021)

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Appendix 1.1: Data pricing calculations

The data pricing analysis in this chapter is based on a dataset compiled from archives of
technology and/or news websites that listed or compared broadband pricing plans in Malaysia
from 2012 to 2019. The data were retrieved from multiple sources by a researcher and the details
were verified by a second researcher.

Next, researchers estimated the cheapest available mobile data plans in Malaysia using a
57 of determining the cheapest handset-based mobile prepaid

1GB of broadband data over a 30-day period from the largest mobile network operator in each
country. The modified version used here does not restrict data pricing plans to the single largest
mobile provider in the country or to a 1GB minimum. However, only the three major service
providers (Celcom, Digi and Maxis) were considered and the cheapest among the three was
selected for analysis. Price per GB of mobile data was then calculated based on the cheapest plan.

This process was repeated for the cheapest available fixed broadband plan with unlimited data
and a fibre connection, thus eliminating asymmetric digital subscriber line (ADSL) plans that use
copper wires from consideration. The cheapest fibre plans came at the lowest speeds, with the
lowest speed being a 5Mbps plan in 2014. Since these plans came with unlimited data, price per
GB was not calculated.

The team then calculated 2019 affordability bas

monthly income instead of gross national income per capita. Median monthly income was sourced

median household monthly income by the average number of income recipients per household
in 2019 i.e. 1.8.

An estimate of price per GB of fixed broadband data was derived based on the following
assumptions. First, average mobile broadband data usage in terms of total data volume is
representative of the average internet user, regardless of whether they also have a fixed
broadband subscription. Second, approximately two thirds of usage occur at home. Third, if
internet users have a fixed broadband subscription at home, they will use that while at home
instead of their mobile broadband subscription. Fourth, the average household includes two
internet users. Thus, estimating the average monthly mobile data use to be 14GB in 2019 based
on annual reports from Axiata, Digi, and Maxis, this means that the average fixed broadband home
subscriber uses 2/3 * 14 * 2 = 18.67GB per month.

57 ITU (n.d.)

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Table A1 shows the cheapest price of prepaid mobile, postpaid mobile and fixed mobile data as
well as the median monthly household income by state in 2019.

Table A1. Data prices and median household income, by state, 2019

State Prepaid mobile Postpaid mobile Fixed broadband Median monthly

(per GB) (per GB) (unlimited data) household income
WP Kuala Lumpur RM 5.00 3.27 89.00 10,549
WP Putrajaya 5.00 3.27 89.00 9,983
Selangor 5.00 3.27 89.00 8,210
WP Labuan 5.00 3.27 89.00 6,726
Johor 5.00 3.27 89.00 6,427
Pulau Pinang 5.00 3.27 89.00 6,169
Melaka 5.00 3.27 89.00 6,054
Terengganu 5.00 3.27 89.00 5,545
Negeri Sembilan 5.00 3.27 89.00 5,005
Perlis 5.00 3.27 89.00 4,594
Sarawak 5.00 3.27 89.00 4,544
Pahang 5.00 3.27 89.00 4,440
Kedah 5.00 3.27 89.00 4,325
Perak 5.00 3.27 89.00 4,273
Sabah 5.00 3.27 89.00 4,235
Kelantan 5.00 3.27 89.00 3,563

calculations based on web archive data and HIS 2019

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References

Affordability Report. Washington DC: Web Foundation. a4i.org.

https://a4ai.org/affordability-report/report/2019/.

e Internet.

Journal of Soft Computing and

Decision Support Systems 5 (6):1 12.

Bae, Jinsoo, Yun Jeong Choi, and Jong-

Yonsei University.
BBC News, June 18, 2020, sec.
News from Elsewhere. https://www.bbc.com/news/blogs-news-from-elsewhere-
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