Malaysia Information Technology Report Q1 2012
Business Monitor International, February 2012, Pages: 63
Business Monitor International's Malaysia Information Technology Report provides industry professionals and strategists, corporate analysts, information technology associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Malaysia's information technology industry.
MARKET OVERVIEW
Malaysian IT spending is expected to grow to US$5.2bn in 2012, from US$4.9bn in 2011. BMI forecasts 9% overall growth in Malaysian IT spending in 2011. Demand is expected to stay resilient overall, even as economic growth moderates. IT-friendly budget measures boosted the upturn in 2011 and there was also a boost from previously delayed computer hardware tenders.
There will be increasingly attractive opportunities in the IT services area as the government implements measures to make Malaysia a regional services hub. The government has a number of initiatives with favourable implications for demand for IT products and services, including cloud computing for SMEs and computers for education programmes.
The IT market overall has strong growth fundamentals and key sectors will include government, telecoms and finance, including Islamic banking. The National Broadband Initiative has the potential to boost demand across all IT market segments.
Industry Developments:
In October 2011, the Multimedia Development Corporation (MDeC) announced it was allocating RM1.8mn to help SMEs to use cloud-computing. The funds will be provided in the form of disbursements and benefits for independent software vendors (ISVs) to develop cloud solutions for SMEs. The MDeC has also set aside RM2.25mn to deploy cloud software and services developed by ISVs.
Malaysia's 2011 budget contained a number of measures to boost the IT industry and help stimulate ICT adoption in the country. Key measures included a two-year extension on import tax and sales tax exemption on broadband equipment, and the establishment of the MY Creative Content programme to encourage the development of local content. The tax exemption should stimulate the purchase of various types of connectivity devices, including notebook PCs.
In H111, the Malaysian government announced a new initiative to provide every adult in the country with a free web-based email account. The 'Malaysia Email' initiative, which will enable the government to deliver tax returns, court documents and other official notices online, is expected to provide a major boost to e-government development. The government will spend US$16.6mn setting up the service.
Competitive Landscape:
Cloud computing services are now being actively promoted by vendors in the Malaysian market. In August 2011, Malaysia telco giant Maxis launched its 'Maxis Cloud' service, which it promoted as an ondemand, full-managed cloud service. Maxis Cloud features a self-service portal that provides real-time statistics, and simplified remote management. Clients can access the service via Maxis's 100 Gbps optical backbone network and Telekom Malaysia's HSBB network.
Japanese IT vendors are also actively pursuing the cloud opportunity in Malaysia. In August 2011, Fujitsu Malaysia announced it had formed a partnership with local IT giant HeiTech Padu to expand cloud offerings in Malaysia. The partnership, which also includes data-storage company NetApp, will target projects in the government sector, as well as banks and oil and gas companies.
One focus for Microsoft and other software vendors is to make products more affordable to the key small and medium-sized enterprises (SME) segment. In 2011, Microsot launched a cooperation agreement with the SME Corp Malaysia to provide SMEs with cloud computing solutions based on Microsoft's Office 365 software.
Computer Sales:
BMI forecasts that the addressable Malaysian computer hardware market, including notebooks and peripherals, will have a value of US$2.7bn in 2012, up from US$2.6bn in 2011. PC sales will be supported by the government's push for greater broadband penetration, for which an optimistic target of 75% by 2011 was set.
Other factors include ICT in education programmes and a number of e-government initiatives. The government is determined to tackle the digital gap beyond the Klang Valley and is rolling out an extensive network of community PC centres. One of the target groups of the plan is middle-income potential computer owners who have the ability to afford a PC. Such initiatives, alongside falling prices, are opening up the market to lower income tiers.
Software
Malaysia's addressable software market is expected to grow to US$871mn in 2012, consolidating a recovery in 2011. The cloud computing spend is forecast to grow in 2012 as more small companies adopt the idea, creating opportunities for vendors along the industry chain.
E-business applications such as enterprise resource planning (ERP) and finance are Becoming increasingly popular in the business market as enterprises try to enhance productivity through automating accounting and other functions. Customer relationship management (CRM) is expected to be a doubledigit growth opportunity despite the economic downturn. Software-as-a-service (SaaS) has achieved double-digit regional growth in Malaysia in the past few years, but this market is still at an early stage.
IT Services:
The government has accounted for about 15% of Malaysian IT spending in recent years. The upgrade of core banking systems will drive bank spending on application services. The government also continues to try and create a more competitive environment in the telecoms sector, encouraging newly licensed WiMAX operators to roll out services.
E-Readiness:
Malaysia is developing most 'e-society' indicators at a steady rate. The government is pursuing programmes to reduce the digital divide between urban and rural areas, with the Ministry of Rural and Regional Development cooperating with the Ministry of Science, Technology and Innovation and the national IT industry association on plans to establish more community PC centres in the country. Nearly 2,000 centres are already managed by the Economic Planning Unit.
The growing popularity of broadband, after a slow start, is set to be an important driver of PC penetration over the next few years. To encourage faster penetration, the government awarded WiMAX licences are to be issued to a number of service providers, including ISP Jaring. Telekom Malaysia was awarded a MYR11.31bn contract to roll out a high-speed broadband network. The government will invest MYR2.4bn and Telekom will foot the rest of the bill. This covers the first phase of the project that will be implemented over 10 years.
Over BMI's five-year forecast period, the most potential for large projects is in sectors such as financial services, oil and gas, telecoms and agriculture.
Executive Summary
SWOT Analysis
Malaysia IT SWOT
Malaysia Telecoms SWOT
Malaysia Political SWOT
Malaysia Economic SWOT
Malaysia Business Environment SWOT
IT Business Environment Ratings
Regional IT Business Environment Ratings
Asia IT Markets Overview
IT Penetration
IT Growth And Drivers
Market Overview
Government Authority
Background
Hardware
Software
Services
Banking
Islamic Banking
Telecoms
Industry Developments
Open-Source Software
IT-BPO
Industry Forecast Scenario
Market Drivers
Segments Summary
Table: Malaysia's IT Sector – Historical Data & Forecasts (US$mn Unless Otherwise Stated) Internet
Telecoms Sector – Internet – Historical Data And Forecasts
Competitive Landscape
Hardware
Software
IT Services
Internet Competitive Landscape
Macroeconomic Forecast
Table: Malaysia – Economic Activity
Company Profiles
IBM Malaysia
HeiTech Padu
HP Malaysia
Microsoft Malaysia
Country Snapshot: Malaysia Demographic Data
Section 1: Population
Table: Demographic Indicators, 2005-2030
Table: Rural/Urban Breakdown, 2005-2030
Section 2: Education And Healthcare
Table: Education, 2000-2003
Table: Vital Statistics, 2005-2030
Section 3: Labour Market And Spending Power
Table: Employment Indicators, 2001-2006
Table: Consumer Expenditure, 2000-2012 (US$)
Table: Average Annual Manufacturing Wages, 2000-2012
BMI Methodology
How We Generate Our Industry Forecasts
Transport Industry
Sources
- IBM Malaysia
- HeiTech Padu
- HP Malaysia
- Microsoft Malaysia
Product Samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
All rights reserved. © Copyright 2013 Research and Markets WWW6
Terms and Conditions Privacy Policy Publishers Employment Opportunities Site Map Link to us Webmaster Affiliate Network
