Malaysia Information Technology Report Q1 2013
- ID: 2364046
- December 2012
- Region: Malaysia
- 83 pages
- Business Monitor International
Malaysian IT spending is expected to reach US$5.6bn in 2013, up 7%, although 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 was unveiled in 2012. Spending on IT products and services should be boosted by growing enterprise and government interest in cloud computing, and ICT-friendly budget measures, but much will depend on confidence in a sustainable economic recovery. Malaysia's IT market is distinguished by a marked digital divide and, 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.
Headline Expenditure Projections:
Computer hardware sales: US$2.7bn in 2012 to US$2.9bn in 2013, +6% in US dollar terms. Forecast in US dollar terms upwardly revised due to to macroeconomic factors, and PC sales will be supported by the government's push for greater broadband penetration.
Software sales: US$876mn in 2012 to US$952mn in 2013, +9% 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$1.6bn in 2012 to US$1.8bn in 2013, +9% in US dollar terms. Forecast in US dollar terms upwardly revised with government accounting for about 15% of Malaysian IT spending.
Risk/Reward Ratings: Malaysia's score is 51.2 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:
- The MSC Malaysia has named cloud computing as a strategic priority and has said that it will try to develop a national cloud computing platform. Cloud projects are not confined to the national level, as state governments are also exploring this area. Malaysia's Melaka State Government has started to build new infrastructure, including a common datacentre and a disaster recovery centre. The Melaka State Government has virtualised the datacentre infrastructure to make sure it is 'cloud-enabled'. Cloud computing is also seen in Malaysia as having considerable utility for schools.
- 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 announced 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. SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 7
Malaysia IT SWOT 7
Malaysia Telecoms SWOT 8
Malaysia Political SWOT 9
Malaysia Economic SWOT 10
Malaysia Business Environment SWOT 11
Asia Pacific IT Risk/Reward Ratings 12
Table: Asia Pacific IT Risk/Reward Ratings, Q113 15
Asia Pacific IT Markets Overview 16
IT Penetration 16
IT Growth and Drivers 18
Sectors And Verticals 20
Market Overview 24
Government Authority 24
End-User Analysis 34
Industry Developments 36
Industry Forecast 41
Table: Malaysia IT Industry - Historical Data And Forecasts (US$mn unless otherwise stated), 2010-2017 44
Industry Forecast Internet 45
Table: Telecoms Sector - Internet - Historical Data And Forecasts, 2010-2017 45
Competitive Landscape 47
IT Services 50
Macroeconomic Forecast 53
Table: Malaysia - Economic Activity, 2011-2016 55
Company Profiles 56
Microsoft Corporation 67
HeiTech Padu 72
Country Snapshot 75
Table: Malaysia's Population By Age Group, 1990-2020 ('000) 76
Table: Malaysia's Population By Age Group, 1990-2020 (% of total) 77
Table: Malaysia's Key Population Ratios, 1990-2020 78
Table: Malaysia's Rural And Urban Population, 1990-2020 78
BMI Methodology 79
How We Generate Our Industry Forecasts 79
IT Industry 79
IT Ratings - Methodology 80
Table: IT Business Environment Indicators 81
Table: Weighting Of Components 82