A Ministry dedicated to the industry, says the National ICT Association of Malaysia (Pikom).
With a membership of more than 1,400 companies involved in a range of ICT products and services, the organisation commands 80 per cent of the total ICT trade in the country.
“Currently, there is an overlap of responsibilities between ministries and this may affect the smooth functioning of the government. For the industry, it means having to deal with multiple agencies and ministries.
Having an ICT ministry makes sense, including from an outcome accountability point of view,” says chairman Woon Tai Hai. “We are still hopeful that the government will heed our views.”
According to Woon, ICT is not only a major contributor to the GDP, it is also a great enabler across all sectors of the economy. As a percentage, ICT contributes almost 10 per cent to the country’s economy and employs more than 500,000 people. Emerging Asean countries such as Cambodia, Vietnam and Myanmar are also leveraging on the power and pervasiveness of ICT and embedding them into their respective digital strategies to leap-frog their economies.
“ICT played a key role in moving the country up the value chain in the last five years. Firstly by providing the necessary technological platforms for organisations, including government bodies, in automating and streamlining their processes and functions to increase efficiency. Same-day passport, IC renewals and road tax renewals would not have been possible without technology. Nor online submission of tax returns, procurement and government e-services, as all are enabled by the ICT sector,” says Woon.
Secondly it has connected us globally to best practices and latest innovations both in terms of trade, commerce and also technology trends.”
This significant contribution of ICT, he adds, is also reported in the Economic Transformation Programme and it is estimated that over 6 per cent of the entry point projects across all the National Key Economic Areas are ICT intensive or enabled.
“This is testament to the important role ICT plays in the country’s economic development,” says Woon.
Within the ICT industry, there are basically four sectors: hardware, software, services and communications.
“Over the past years, services and communications had gradually moved up in terms of significant contributions as compared to the 1990s when hardware took centre stage. We anticipate that as the country moves up the value chain, services will play an increasingly important role in supporting a knowledge-based economy. For example, the services sector commanded 18 per cent or RM52.3 billion of the ICT industry revenue in 2012. This is expected to grow by leaps and bounds as the country heads towards developed status by 2020 with a targeted Gross National Income of US15,000 (RM46,440) or more,” says Woon.
Other areas of high growth include outsourcing, shared services and e-commerce related services. In addition, data communication has also grown as adoption of high speed broadband is expected to experience exponential growth, with the seeding of broadband initiatives from the government. The explosion of tablets and smartphones will further provide the impetus to this growth as early as in the next 12 to 18 months.
On how the industry has fared in the first quarter, Woon says that though it will not match the last quarter (6.4 per cent), the overall outlook for the country is still very positive with projection of up to 5.5 per cent for 2013.
“The major event that is perhaps creating some uncertainly is the upcoming general elections. While we have not done a detailed study on the first quarter performance, based on feedback from members, it is still a very challenging environment, especially retail, with new gadgets and product launches still fuelling some buying into 2013. Major product launches in Q4 of 2012, especially Windows 8 have provided impetus for 2013 as consumers seek to embrace the latest technologies.
“The impact of iPhone 5 is still being felt and that helps drive demand for the first quarter of this year. We expect the launches, including those for Samsung Galaxy S4, to sustain demand throughout the year. The launch of Z10 Black Berry smart phone will also provide some impetus to the smart phone industry and broadband services. The introduction of the wireless village will also further enhance the broadband penetration for the industry and country and hopefully will also translate to more purchasing by consumers.”
Asked whether the industry is on track to reach its growth targets by year-end, Woon says Pikom remains optimistic that a 10 per cent growth for the entire ICT industry is achievable since the outlook for the economy is also expected to be positive.
“While the world economy is still not completely out of the wood, with the Eurozone still in the doldrums and a tepid US economy, 2013 appears rosier than last year. China and the rest of Asia will remain the growth drivers that will stimulate demand,” he says.
“Consumption will remain strong in 2013 with most of the growth spurred by local consumption.”
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Autor(en)/Author(s): Rozana Sani
Quelle/Source: New Straits Times, 01.04.2013
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