Economic forecasting has historically been based on static models and historical data, which frequently had trouble capturing complex interactions and real-time trends.
Big Data transforms this environment by offering an abundance of up-to-date information. For example, in Malaysia, social media trends, online job ads, and e-commerce sales data can all serve as early warning signs of changes in the country's economy.
Big Data has an impact on forecasting, but it also plays a key role in several levels of policy-making:
Although big data has enormous potential, there are important ethical and privacy issues to be aware of, particularly with regard to individual data.
To sum up, big data has revolutionized the domains of policy-making and economic forecasting. It increases accuracy, provides real-time insights, and makes it possible to make more individualized, fact-based decisions. Nonetheless, navigating the privacy and ethical issues that come with using big data is crucial. To achieve a more informed, responsive, and prosperous economic future, Malaysia, like other countries, must leverage Big Data while protecting individual rights.
