PETALING JAYA: The presence of digital nomads is a boon for Malaysia’s economy, driving demand for local goods and services while fostering innovation and cultural exchange, say economists.

Sunway University economics professor Dr Yeah Kim Leng said the rise of digital nomads is positive for the local economy primarily through their spending on accommodation, food, transportation and other consumer goods and services.

“In addition, their longer stays compared to tourists also yield greater benefits to the local economy besides generating knowledge transfer and innovation alongside higher demand for digital infrastructure,” he said when contacted.

Yeah added that digital nomads help position Malaysia as a global remote work hub for investment, technology and startup ecosystems.

“Given their strong involvement in tech, creative industries and entrepreneurship, their presence can lead to knowledge transfer as well as the sharing of best practices, innovative business models and technical skills with local professionals.

“Such exposure to global trends enables local startups and freelancers to remain competitive in international markets,” he said.

Economist Geoffrey Williams said an unverified estimate is that 35 million digital nomads contribute about US$787bil to the global economy, equating to around US$22,600 or RM95,000 per capita income.

“Malaysia can capture a share of that, and while it may start small, it has the potential to grow rapidly if the right ecosystem is in place,” said the founder and director of Williams Business Consultancy.

He said the digital nomad community can also create new businesses, including the ecosystems of short-term living arrangements, virtual workspaces, Internet access and more.

“They can also develop innovation hubs and network access to creative communities for local permanent players,” Williams noted.

“Malaysia should promote the digital nomad scheme more positively, encouraging longer stays and more frequent visits.”

Malaysian Tourism Federation president Datuk Tan Kok Liang pointed out that digital nomads could potentially boost tourism in Malaysia.

“With the rise of remote work, digital nomads seek destinations that offer a mix of good infrastructure, affordable living, and desirable lifestyle factors such as culture, natural beauty, and connectivity.”

He added that digital nomads can also bring cultural diversity and foster networking opportunities, benefiting local businesses, especially in sectors like co-working spaces, cafes and technology-related services.

https://www.thestar.com.my/news/nation/2024/10/12/nomads-bring-a-big-boost