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Malaysia Information Technology Report Q4 2012
Business Monitor International, September 2012, Pages: 81
The 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.
BMI View: Malaysian IT spending is expected to reach US$5.2bn in 2012, up 7%, despite a downwards revision by BMI as economic activity is expected to slow over the coming quarters. Demand for IT products and services is forecast to stay resilient overall, even as economic growth moderates. There should be several areas of opportunity, particularly in key spending verticals such as telecoms, and a new government Digital Malaysia Plan is expected to be unveiled in 2012. Spending on IT products and services should be boosted by growing enterprise interest in cloud computing, and ICT-friendly budget measures, but much will depend on confidence in a sustainable economic recovery.
Headline Expenditure Projections:
Computer hardware sales: US$2.6bn in 2011 to US$2.7bn in 2012, +6% in US dollar terms. Forecast in US dollar terms unchanged, despite an expected moderation in economic growth, and PC sales will be supported by the government's push for greater broadband penetration.
Software sales: US$805mn in 2011 to US$873mn in 2012, +8% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification, and e-business applications such as enterprise resource planning (ERP) and customer relationship management (CRM) are becoming increasingly popular in the business market.
IT services sales: US$1.5bn in 2011 to US$1.6bn in 2012, +9% in US dollar terms. Forecast in US dollar terms unchanged with government accounting for about 15% of Malaysian IT spending.
Risk/Reward Ratings: Malaysia's score was 51.8 out of 100.0. Malaysia ranks fifth in our latest Asia RRR table, behind developed markets such as Singapore and Australia, but ahead of ASEAN regional peers such as Thailand, Philippines and Vietnam. Its overall rating was boosted by relatively high 'country structure' and 'market risk' scores.
Key Trends & Developments:
- Around 90% of Bursa Malaysia companies fall into the small and medium-sized enterprise (SME) category and these are increasingly being seen as a key IT vertical demand sector in the country. Many are facing a tough time due to rising costs and high oil prices. At the same time, SMEs need to become more competitive and have greater access to information and technology.
- Cloud computing software delivery models, with monthly costs as low as MYR300, are seen as having great potential to help more SMEs to access technology.
- In 2012 the government is expected to launch its latest Digital Malaysia Masterplan to drive the next stage of development of Malaysia's ICT sector. The plan will propose a number of measures to strengthen Malaysia's ICT ecosystem, including talent development, as well as stimulating demand by consumers and businesses for ICT products and services. Encouraging the creation of more local applications for cloud computing is expected to be one focus of the Digital Malaysia plan. The government's plan to develop a national cloud computing programme should also drive opportunities in this key emerging area for vendors.
- In 2012 Malaysian PC sales will be supported by the government's push for greater broadband penetration, for which an optimistic target of 75% by 2015 has been set. Malaysia's IT market is distinguished by a marked digital divide, which effectively creates two separate markets. In the Klang Valley area around Kuala Lumpur, a mature urban population surpasses even some developed nations in terms of IT adoption on some indicators.
Executive Summary 5
SWOT Analysis 7
Malaysia IT Sector SWOT 7
Malaysia Telecoms Industry SWOT 8
Malaysia Political SWOT 9
Malaysia Economic SWOT 10
Malaysia Business Environment SWOT 11
Asia Pacific IT Risk/Reward Ratings 12
Table: Asia Risk/Reward Ratings Q412 15
IT Markets Overview 16
IT Penetration 16
IT Growth and Drivers 18
Market Overview 24
Government Authority 24
Industry Developments 34
Industry Forecast 39
Table: Malaysia IT Sector – Historical Data & Forecasts (US$mn Unless Otherwise Stated), 2009-2016 42
Industry Forecast Internet 43
Table: Telecoms Sector – Internet – Historical Data And Forecasts , 2009-2016 43
Competitive Landscape 45
IT Services 48
Internet Competitive Landscape 50
Macroeconomic Forecast 52
Company Profiles 54
Microsoft Corporation 59
HeiTech Padu 70
Country Snapshot 73
Table: Malaysia's Population By Age Group, 1990-2020 ('000) 74
Table: Malaysia's Population By Age Group, 1990-2020 (% of total) 75
Table: Malaysia's Key Population Ratios, 1990-2020 76
Table: Malaysia's Rural And Urban Population, 1990-2020 76
BMI Methodology 77
How We Generate Our Industry Forecasts 77
IT Industry 77
Malaysia Information Technology Report Q4 2012
© Business Monitor International Ltd
IT Ratings – Methodology 78
Table: IT Business Environment Indicators 79
Table: Weighting Of Components 80