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Purpose

This study evaluates the role of digital infrastructure and policy initiatives in Malaysia’s economic growth, focusing on the Digital Economy Performance Indicator (DEPI) from 2017 to 2021.

Design/methodology/approach

Through the implementation of national initiatives like the Digital Free Trade Zone (DFTZ) and the National Fiberisation and Connectivity Plan (NFCP), Malaysia has emphasized the importance of digital transformation for economic resilience and global competitiveness. The DEPI framework assesses key dimensions—connectivity, affordability, infrastructure, human capital, and digital technology integration—using the entropy weight coefficient method to ensure objectivity.

Findings

Findings suggest that while Malaysia has made notable progress in digital connectivity and infrastructure, challenges persist in affordability, especially in rural areas. The development of human capital, particularly digital literacy, also remains crucial for long-term sustainability.

Practical implications

The research concludes that further investment in digital infrastructure and skills development is essential for Malaysia to thrive in the global digital landscape.

Originality/value

This study offers insights for policymakers to address the digital divide and foster a more inclusive and competitive digital economy.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2024-0826

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