February 29, 2024

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Malaysia’s ICT spending to reach US$25 billion in 2023

The information and communication technology (ICT) market in Malaysia is set to grow at a compound annual growth rate (CAGR) of 8.9% between 2019 and 2023.

This growth from 2018 US$16.5 billion to US$25.2 billion in 2023, will mainly be supported by the rising adoption of ‘client computing’ and ‘cloud computing’, according to a leading data and analytics company.

According to the company’s Market Opportunity Forecasts, ‘mobility’, ‘cloud computing’, ‘data analytics’, ‘storage’ and ‘business process outsourcing’ will be the five leading IT solution areas in terms of growth rate. Mobility is set to witness the highest CAGR of 21% during the forecast period.

The Senior Technology Analyst at the firm stated that the Malaysian Government’s initiative to create a hub for innovative producers and users of multimedia technology with Mandatory Standard for Access Pricing (MSAP) is paving the way for the availability of affordable high-speed Internet services and the emergence of a mature telecommunications infrastructure in the country.

As a result, Malaysia is set to witness a relatively high broadband penetration as compared to other peer Asian countries.

Manufacturing in Malaysia continues to be the most significant revenue contributing sector, with its revenue contribution to the overall ICT spending expected to marginally increase from 18.4% to 18.5% of the total ICT revenues in period (2018-2023).

The growth of ICT in Malaysia, especially in the manufacturing sector, has been further aided by government-enacted policies such as ‘Industry4WRD’, a national policy which aims to transform the manufacturing sector and related services within the period from 2018 to 2025. These policies are expected to lead to a mature digitalization of the Malaysian market.

It was noted that the Malaysian information communication technology (ICT) market boasts of strong fundamental government policy, high-tech focused national development and availability of skilled workers, which has further contributed to the growth of the industry in the country.

Additionally, the high levels of digital adoption and internet penetration will continue to drive the ICT market in Malaysia.

Economic Stimulus Package

OpenGov Asia previously reported that Malaysia’s former Prime Minister announced an RM20 billion Economic Stimulus Package so economic risks associated with Covid-19 outbreak can be addressed effectively and that the economy stays afloat amidst this crisis and national political unrest.

Several plans have been put in place to ensure Malaysia’s economy will continue to be on the right track to sustainable growth. One recurring focus in the Prime Minister’s speech was to leverage and invest in ICT to keep the nation competitive and productive.

The Government encourages employers to further invest in raising the productivity of the workforce during this economic slowdown. The Government will provide deductions on expenses incurred on approved tourism-related training. It will also provide up to RM100 million to fund an additional 40,000 employees from the tourism and other affected sectors.

The Government will allocate grants of RM1,000 to 10,000 local entrepreneurs to promote the sale of their products on e-commerce platforms as well as allocating RM20 million to Malaysian Digital Economy Corporation (MDEC) for Perkhidmatan eDagang Setempat (PeDAS) programme to transform Pusat Internet Desa into e-commerce hubs.

To enhance greater national competitiveness, the Government will promote higher value-added private sector investments. Bank Negara Malaysia will provide an SME Automation and Digitalisation Facility of RM300 million at an interest cost of 3.75%.

The Government will provide accelerated capital allowances over two years on expenses incurred on machinery and equipment including ICT.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

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CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

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Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

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HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

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