From Production to Knowledge: Why Malaysia and ASEAN’s Digital Economy Is Still Stuck and What Policy Must Change - By Nik Zafri

Read this article as well : 

SHARING ECONOMY VS TRADITIONAL BRICK AND MORTAR IN THE 21ST CENTURY – BY NIK ZAFRI

By Nik Zafri

Summary

Malaysia and ASEAN have made significant strides in digitalisation, from e‑government services and fintech adoption to AI roadmaps and smart cities. Yet beneath this progress lies a structural contradiction: our digital economy largely operates on a production‑based (P‑based) capitalist logic, rather than a true knowledge‑based (K‑based) economy that digital technology promises.

This article will try to address the constraint is not technological capability, but policy design, governance frameworks, and legacy measurement systems. Without deliberate reform, digitalisation will continue to amplify consumption, inequality, and environmental stress rather than generate shared intelligence, resilience, and long‑term value.

1. THE ASEAN-MALAYSIAN DIGITAL PARADOX

Malaysia’s digital agenda supported by initiatives such as #MyDIGITAL, #Industry4WRD, National AI Roadmaps, and various smart city programmes emphasises:

• Platform growth,

• Startup ecosystems,

• Cashless payments

• E‑commerce expansion

Across ASEAN, similar patterns emerge in Singapore, Indonesia, Vietnam, and Thailand.

However, most digital success is still measured by:

• Gross transaction value (GTV),

• User acquisition numbers,

• Platform scale,

• Contribution to GDP

These are P‑based indicators, not K‑based ones. The result is a digital economy that sells more efficiently, but does not necessarily think better.

2. WHY P-BASED LOGIC PERSISTS IN POLICY

2.1 GDP and Fiscal Metrics Dominate

Public policy continues to rely on GDP growth, consumption, and investment flows as primary indicators of success. Knowledge creation, prevention of loss, environmental preservation, and social trust, all critical in ASEAN’s climate‑vulnerable context remain largely invisible to national accounts.

2.2 Investment and Incentive Structures

Government grants, tax incentives, and venture funding prioritise:

• Scale,

• Speed,

• Monetisation

Rarely do they reward:

• Knowledge transfer,

• Skills deepening,

• Open data contribution,

• Reduction of systemic risk

This biases innovation toward platforms that extract value rather than systems that distribute intelligence.

3. P‑BASED VS K-BASED ECONOMY (Policy Lens)

4. THE ASEAN CONTEXT : Why This Matters More Here

ASEAN economies face overlapping challenges:

• Climate vulnerability (floods, heat, food security),

• Ageing infrastructure,

• Youth underemployment,

• Skills mismatch,

• Environmental degradation

A P‑based digital economy worsens these by encouraging over‑consumption and resource strain. A K‑based economy, by contrast, prioritises:

• Predictive systems,

• Preventive policy,

• Skills intelligence,

• Regional knowledge sharing

For Malaysia, this aligns directly with national aspirations on sustainability, ESG leadership, and high‑income status.

5. GOVERNANCE GAPS HOLDING BACK THE TRANSITION

• Policy Silos : Digital, climate, education, and economic policies operate independently,

• Outdated Accounting : Intangible assets and avoided losses are not recognised,

• Platform Regulation : Focused on competition, not knowledge responsibility,

• Public Procurement : Rewards lowest cost, not highest intelligence,

• Data Governance : Treats data as commodity rather than public infrastructure

6. POLICY RECOMMENDATIONS FOR MALAYSIA AND ASEAN

6.1 Redefine National Success Metrics

• Complement GDP with knowledge, resilience, and risk‑reduction indicators,

• Integrate ESG, SDG, and climate intelligence into fiscal planning

6.2 Reform Digital Incentives

Tie grants and tax incentives to measurable knowledge transfer

Reward platforms that reduce systemic costs (energy, fraud, waste)

6.3 Treat Data as Strategic Infrastructure

(which is the very reason why we need a real working Data Centers not for fancy but what works and benefits us)

• Establish trusted data commons for climate, health, and finance
• Encourage cross‑ASEAN data interoperability

6.4 Embed Knowledge in Public Procurement

• Prioritise solutions that improve decision quality, not just cost savings,

• Value learning systems, not one‑off deliverables

6.5 Strengthen Regional Knowledge Cooperation

• ASEAN‑level platforms for shared intelligence on climate, supply chains, and security,

• Reduce duplication through collective learning

7. REFRAMING DIGITAL TRANSFORMATION

Digital transformation must shift from:

• Faster consumption to Smarter decisions,

• Platform scale to System intelligence,

• User capture to Capability building

AI, analytics, and automation should be deployed to prevent harm, optimise resources, and raise collective competence, not merely to increase sales.

CONCLUSION : A POLICY CHOICE, NOT A TECHNOLOGY PROBLEM

Malaysia and ASEAN do not lack digital infrastructure, talent, or ambition. What is missing is policy alignment with a knowledge‑based future.

The continued dominance of a P‑based digital economy is a governance choice,  reinforced by outdated metrics, incentives, and power structures. Transitioning to a K‑based economy requires courage to redefine value, patience to invest long‑term, and humility to share intelligence across institutions and borders.

We are not constrained by technology. We are constrained by how we choose to measure success.

The digital future will not be decided by how much we produce or consume but by how well we learn, adapt, and govern together.

THOUGHT FOR THE DAY - 21/10/2025

I must have spoken about this too many times but let's just do a quick reminder.

Copying and pasting content literally from ChatGPT or other AI-assisted applications can often be detected. Unique punctuation styles, language patterns, scattered emojis and image metadata make it easy to trace such material through reverse searches.

While AI tools can enhance productivity, it is essential to review, rephrase, and verify the accuracy of the generated text. As someone accustomed to traditional writing methods, I can easily identify grammatical inconsistencies, contextual errors, irrelevant data, wrong sampling, factual errors or deviations from the original topic.

It doesn’t feel organic when the person simply lets AI do the work and allows it to spread without even caring what has been written. Writing should still reflect the writer’s own thought process and understanding.

Educators and supervisors frequently emphasize comprehension over completion (of course they do have "Anti-ChatGPT/AI"), they will ask whether the writer truly understands their work. Therefore, use AI responsibly and ensure that your writing reflects your personal understanding and critical thinking.

Learning Through Observation and Demonstration

Photo Credit : The Edge

Construction workers, particularly foreign laborers, often acquire skills through practical exposure rather than formal training. By engaging daily in trades such as concreting, bricklaying, carpentry, plumbing, welding, and fitting, they gradually develop proficiency through observation, demonstration, and repetition. Over time, this experiential learning enables them to estimate dimensions, quantities, and material requirements instinctively, without relying on complex calculations.

Upon returning to their home countries, I heard and seen many of these workers apply their accumulated experience to build their own homes. Their competencies reflect a form of tacit knowledge, skills that are learned on-site, practiced repeatedly, and reinforced through problem-solving in real construction settings.

Notable characteristics of this learning process include:

1) Skill transferability - Techniques learned in one environment can be adapted to new and unfamiliar contexts,

2) Efficiency and intuition - Routine work cultivates an instinctive understanding of materials, tools, and processes,

3) Resourcefulness - Limited resources encourage creative solutions using locally available materials,

4) Self-reliance - Workers become independent builders capable of managing entire construction tasks,

5) Community contribution - Many extend their skills beyond personal use, contributing to family and community projects.

This demonstrates the effectiveness of experiential learning in developing practical expertise, particularly in labor-intensive industries like construction.

(Ironically, this is also my method of learning some trades in construction as well)

9 QUALITIES TO BECOME A GOOD LEADER - NIK ZAFRI

These are insights I’ve gathered over the last 30 years through experience and observation. When I first wrote this in 1999, there were 14 points but I’ve since summarize them into 9 core qualities, refined to suit 2025 and beyond. I’ve made them clear, memorable, and practical for everyday leadership.

It's my version of "Leadership" module

Of course, it shouldn’t take you another 30 years to apply them. Who knows, your leadership journey might just begin today.

1) KNOWLEDGABLE 

A good leader must possess strong domain knowledge and be well-informed about the industry, current trends, and the specifics of the organization. This includes:

• Technical expertise and decision-making frameworks,
• Understanding the roles and responsibilities of the team,
• Being aware of external factors like market forces, regulations, and competitors.
• Staying updated through continuous learning, training, and reading.

Why it matters: A knowledgeable leader earns respect, gives informed direction, and avoids costly mistakes.

2) DO THE RIGHT THING

Integrity and ethics are non-negotiable traits of leadership. 

• Stand for principles even when it’s hard or unpopular,
• Uphold fairness, transparency, and accountability,
• Be a role model in behavior, honesty, and consistency, lead by example

Why it matters: People follow leaders they trust. 

Doing the right thing builds long-term loyalty and credibility.

3) HEAD TO THE RIGHT DIRECTION

Leadership is about setting and aligning everyone with a clear vision.

• Set logical, measurable and achievable goals based on strategic foresight,
• Align the team’s work with the organization’s mission and values.
• Periodically reassess the path to ensure relevance.

Why it matters: A leader without direction leads a team to confusion. Purposeful direction gives clarity and unity.

4) WORK HARDER

Effort and commitment are infectious.

• Show dedication and passion through your work ethic.
• Don’t shy away from getting your hands dirty when needed.
• Be willing to put in the extra time to support your team or resolve crisis.

Why it matters: Hardworking leaders inspire their teams to rise above mediocrity and follow by example.

5) THINK OF NEW WAYS

If you're a seasoned professional, you may need to work with the younger generation. Innovation keeps the organization relevant and competitive.

• Be open to change and embrace creative thinking,
• Encourage brainstorming and experimentation without fear of failure (should you fail, do it again),
• Look for improvements in processes, products, and people development.

Why it matters: Stagnation is the enemy of progress. Leaders must innovate to adapt and thrive.

6) MAKE THE BEST DECISION

Not a popular decision, but the best decision

• Decision-making is at the heart of leadership,
• Base your choices on facts, resources, data, experience, and intuition, 
• Involve stakeholders when appropriate, but take responsibility and to be accountable,
• Balance risks and rewards with long-term implications in mind.

Why it matters: The ability to make timely, sound decisions determines whether a team succeeds or struggles.

7) BUSINESS SUSTAINABILITY

Leadership must consider long-term viability, not just short-term gains.

• Balance economic success with environmental and social responsibility (ESG), 
• Invest in people, processes, and technologies that support sustainable growth.
• Make ethical decisions that preserve reputation and resources.

Why it matters: Sustainability ensures your organization endures and thrives in an ever-changing world.

8) BE A GOOD LISTENER

Effective communication starts with listening.

Practice active listening, seek to understand, not just to respond,

Show genuine empathy and openness to different views and feedback,

Use listening as a tool to detect problems early and build trust.

Why it matters: People feel valued and motivated when they are heard. It improves morale, loyalty, and problem-solving. (AND always reward good ideas)

9) CONTINUAL IMPROVEMENT

Strive for excellence, not perfection.

Promote a culture where learning and improvement are continuous,

Encourage reflection, feedback, and growth - personally and organizationally,

Invest in upskilling, process optimization, and quality enhancement.

Why it matters: In a rapidly evolving world, continuous improvement is necessary to stay competitive and agile.

CONCLUSION 

"The impact of doing something is FAR more greater than doing nothing at all" - Nik Zafri

"True leadership is not about authority, it's about responsibility, humility, and vision" - Nik Zafri

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PROPERTY COMPANY - IT'S TIME TO REBRAND

I know this might be hard on some, but let’s admit it, just like #architectural, #construction and #consulting firms (which I have spoken enough on the subjects) - even a highly successful PROPERTY COMPANY can benefit from a "new breath of life", a strategic refresh that sustains relevance, competitiveness, and long-term growth without abandoning its core values and principles.

LET’S START WITH SOMETHING NOT TOO AMBITIOUS

HERE’S A TYPICAL 6 PHASE PROPOSED ROADMAP SUITABLE FOR PROPERTY COMPANIES OPERATING IN SOUTH EAST ASIA – Hope it helps

Thriving Through Organizational Change: Bridging Seasoned and Young Professionals - by Nik Zafri

 

“Change is the only constant” 

a phrase often repeated, rarely understood in its full weight until it lands on your desk, your workflow, or your job description. 

Organizational change whether driven by digital transformation, leadership shifts, restructuring, or market realignment is no longer a once-in-a-decade event. It is ongoing, accelerating, and multi-generational.

In my experience conducting motivation-based courses, I’m consistently asked the following two questions :

• How do professionals, young and seasoned alike, not just survive but thrive through change? 

• How can senior professionals remain relevant and respected even when reporting to younger bosses?

These are hard questions for me but I'll try to delve with case studies, research-backed insights, and actionable strategies for everyone in today’s evolving workforce.

1.0 The Reality: Change Is Disruptive (and Expensive)

According to McKinsey & Company , nearly 70% of organizational transformation efforts fail, largely due to :

• employee resistance, 
• lack of engagement, or 
• unclear communication. 

Yet when executed well, organizations that embrace structured change see productivity increase by up to 25% and employee satisfaction rise by 20–30%.

Meanwhile, a 2023 Deloitte Global Human Capital Trends survey found that:

61% of professionals felt overwhelmed by constant change,

48% feared being left behind due to digital transformation,

But 71% were willing to reskill or shift roles if given clarity and support.

Case Study 1: Siemens From Traditional Engineering to Digital Twin Leadership

Case Study 2: Unilever – Flattening Hierarchies and Empowering Young Leaders

2.0 How Can Young Professionals Adapt?

a. Stay Curious, Not Complacent

Ask questions, not just for knowledge but to learn from others' experience. Show humility when working with seniors, it earns trust and opens doors.

b. Get Comfortable with Ambiguity

Change is rarely clear-cut. Embrace iterative work and unstructured problem-solving.

c. Build Tech and People Skills Together

Digital skills are essential, but so is empathy, communication, and cross-generational respect.

3.0 How Can Seasoned Professionals Adapt?

4.0 What Happens When the Boss is Younger?

Let’s be honest, it’s awkward at first for both sides. 

BUT RESPECT IS EARNED, NOT DICTATED BY AGE

“In my mid-50s, I found myself reporting to a 32-year-old CMO. At first, I felt invisible. But once I started mentoring his team on stakeholder management and client psychology, skills AI can't teach he told me I was his most trusted partner.” - Former Global VP, now Leadership Coach

4.0 Conclusion

For All Professionals (Regardless of Age)

• Learn continuously. There are many platforms on the internet,
• Strengthen emotional intelligence. That’s what holds people together during turbulent change.
• Communicate transparently. Ask, share, clarify, silence kills culture.
• Adapt your role to value delivery, not title.
• Ask yourself - “How do I help the team win?” will beat “What’s in my job description?”

Change is no longer something to "get through." It's the new normal.

Whether you're a young professional fresh out of university, or a seasoned expert with 30 years under your belt, the real winners are those who:

• Stay flexible in their role,
• Stay humble in their approach,
• And stay human in how they work with others.

Because in a world where AI is doing more, it’s the human capacity to adapt, relate, and guide that becomes most valuable.

DUE DILIGENCE ON TROUBLED COMPANIES - A SIMPLE GUIDE BY NIK ZAFRI

 BASIC PRINCIPLES OF DUE DILIGENCE (ON TROUBLED COMPANIES)

Due diligence on a troubled company requires a particularly rigorous and comprehensive approach. It involves delving deeper into potential risks and liabilities than a typical due diligence process.  See the table below - please expand further. (Remember : It's not as easy as it looks)

hashtag#DueDiligence hashtag#Audit hashtag#RiskAssessment hashtag#RiskManagement 

IT'S ALL ABOUT US. GOOD JOB EVERYBODY. TAKE A BREAK AND SPEND QUALITY TIME WITH YOUR FAMILY

 

KNOWLEDGE MANAGEMENT HAS REACHED A NEW HEIGHTS - NIK ZAFRI

The evolution of Knowledge Management requires adapting knowledge to fit the present landscape. Big data and data mining might soon yield to the capabilities of Artificial Intelligence, Quantum Computers, and even blockchain. However, it's crucial not to undermine the core principles of KM; otherwise, we risk losing our sense of direction.

SOLAR SYSTEM DESIGN AND NETWORKING - a brief guideline

 

Networking in in solar systems design has always been a topic that is "easier said than done". But with proper guideline, the networking has a big future potential to open up a network of business.

I personally believe that building connections is extremely important within the industry to enhance collaboration.

We also need to stay updated on advancements, and create opportunities for professional growth.

Here are some useful tips :

a. Get the knowledge by attending events such as conferences, trade shows, and seminars related to solar energy and systems design. These events provide excellent opportunities to meet professionals, learn about new technologies, and stay updated on industry trends. Remember solar system design is a very unique scenario. You may think that you have what it takes but you need others to provide other expertise that you may not possess.

b. Affiliate with the right professional organizations - don't be afraid or timid to become a member of organizations like the Malaysian Photovoltaic Industry Association, Solar Energy Industries Association (SEIA) or the International Solar Energy Society ISES. These groups offer networking events, forums, and access to valuable resources.

c. LinkedIn is a great online platform that I know of connecting with professionals in the solar energy field. Join relevant groups, participate in discussions, and share your knowledge and experiences.

d. Seek Opportunity to collaborate on solar projects. Working with others not only enhances your skills but also expands your network within the industry.

e. Stay Informed - on the latest developments of solar technology by taking courses, attending webinars, or pursuing certifications. This not only enhances your knowledge but also connects you with like-minded professionals.

f. Be part of Local Networking by attending local events and meetups related to renewable energy. Building connections within your geographic region can lead to valuable partnerships and opportunities.

g. Find the right Mentor - from experienced professionals in the solar industry. A mentor can provide guidance, share insights, and introduce you to their network.

h. Write Blog Post or articles about solar systems design and contribute them to industry publications. This can help establish you as an authority in the field and attract networking opportunities.

i. Maintain a Professional Presence on Social Media - especially those popular within the industry. Share relevant content, engage with others, and build a reputable online presence.

j. Reach Out - be proactive - take the initiative to reach out to professionals you admire or want to connect with. Be clear about your goals and how you can contribute to the solar energy community.

Remember, effective networking is about building genuine relationships, sharing knowledge, and being open to collaboration. It's not just about what you can gain, but also about what you can contribute to the community.