Consumers are significant players in the digital economy. In fact in a modern economy, mobile and broadband have become the electricity of the twenty first century. It is fundamental in the way people work, live and play.
One of the critical impacts of the current pandemic in fact has been the substantial increasing role of consumers in the digital economy; sometimes out of choice, often out of sheer necessity. Employees have been forced to work from home. Students have been forced to study online. With movements and travel being restricted, consumers have been buying their food online. Further to reduce travel to the banks, many who had not used online banking were forced or chose to do so.
Certainly, online purchasing which had been growing rapidly even before the pandemic had its growth rate increased exponentially during the covid pandemic. Cleary, consumers play a significant role in the digital economy.
The growth and management of the digital economy is under the Ministry of Communications and Multimedia. According to the Malaysian Digital Economy Blueprint, the primary aim of the digital blueprint is to “transform Malaysia into a digitally-driven, high income nation and a regional leader in the digital economy”.
Six key thrusts that have been identified to achieve that vision include transformation in the public sector, boosting economic competitiveness, building infrastructure, building competent talent, creating an inclusive society and building a secure and ethical digital environment.
Recognising the significant role that consumers play in the digital economy, one key critical area that has been neglected is digital consumer protection. The protection and the empowerment of consumers in the digital economy has been substantially ignored.
This is not say that there have been some ad hoc programmes for example on addressing the digital divide and consumer awareness; it is suggested however that the protection and empowerment of consumers in the digital economy have not been given the priority and importance it deserves at the strategic level.
Five areas of digital consumer protection are of concern: bridging the digital divide, privacy and data security, dispute resolution and redress, ensuring a competitive market and consumer empowerment through education and awareness.
During the pandemic, more than ever consumers were forced to depend on broadband for both work, study and purchasing. Yet, only 35% in urban areas have access to fixed broadband; while in rural areas only 12% have access to fixed broadband. Apart from the poor and low income, many communities, such as the elderly and the digitally disadvantaged have been left out of the digital system. In face even in the covid vaccination programmes, the elderly have been unable to engage productively.
Secondly, in relation to data security and privacy, data leakages have been become increasingly frequent. Many consumers continue to complain of getting unsolicited messages from unknown or marketing sources. The number of scams have also been increasing.
Thirdly, the number of complaints against the telcos and broad band providers continues to increase. The quality of network issues continue to dominate the complaints received.
Fourthly, the consolidation of the telco industry is of great concern to consumers. With mergers and thus diminishing competition in the market, it is feared that consumers will suffer even more through over-pricing and poor quality services.
Finally, the empowerment of consumers through education and awareness is lacking in reach. There is also the issue of the effectiveness of the current programmes; has it really been able to change behaviour to achieve the desired protection in the digital space.
These are five major concerns for consumers. FOMCA hopes that the government, apart from the six major thrusts in the digital economy blueprint will give serious focus at the strategic level on Consumer Digital Protection.
