Business

Monday June 1, 2009

Information and communications technology sector revenue to grow 5%

BY DALJIT DHESI


PETALING JAYA: The information and communications technology (ICT) industry is expected to chart a 5% revenue growth this year despite the bleak economic climate, thanks to surging demand in outsourcing, content development and software usage.

The Association of the Computer and Multimedia Industry of Malaysia (Pikom) chairman David Wong Nan Fay said revenue for the ICT industry rose 7% last year to about RM45bil.

“With more foreign companies looking to save costs, many are looking at outsourcing their operation to Malaysian ICT companies who have talent and expertise in multi-lingual call centres, supply chains and high value added business process outsourcing services.

David Wong

“Malaysia has also recently been rated again as the third most attractive country in the world in the field of outsourcing by global research company AT Kearney,” he said during an interview.

Local companies had also developed good software, especially in the area of Islamic banking, he said, adding that some of these Islamic finance products had been making inroads into the Middle East and China.

Creative content is another area which has been doing well even with the onslaught of the economic crisis, according to Wong.

This relates to the development and design of creative and animation software and information technology-related products.

Wong said although people had been limiting their purchases of IT products, interest in such products remained healthy judging from the number of people attending PC fairs.

For example, the PC fair organised by Pikom in April was well received as the number of people who attended shot up by 20% compared with the previous one held last year.

PC Fair is held three times a year in over 30 cities and towns nationwide.

On the penetration rate of PCs in the country, Wong said it was almost 40% which was still low compared with between 70% and 80% in developed countries.

In terms of broadband penetration, he said it was probably about 26% versus 70% to 80% in developed nations.

On the challenges facing the ICT industry, Wong said they were mainly in the areas of human resource and expertise, telecommunication infrastructure and funding.

He added getting the right pool of talent for specific ICT jobs, especially in the middle and upper management, was still an area of concern which needed to be beefed up.

The various grants provide by the government to boost IT skills had to an extent improved the situation but more was needed, he said.

For the telecommunication infrastructure, the completion of the broadband highway would enhance the ICT sector as more would go online due to competitive Internet rates, Wong reckoned.


For latest Bursa Malaysia indices, charts and other information click here

  • E-mail this story
  • Print this story