Malaysia Information Technology Report Q1 2013

Business Monitor International
December 19, 2012
83 Pages - SKU: BMI4933623
Countries covered: Malaysia

BMI View: Malaysian IT spending is expected to reach US$5.6bn in 2013, up 7%, although economicactivity is expected to slow over the coming quarters. Demand for IT products and services is forecast tostay 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 wasunveiled in 2012. Spending on IT products and services should be boosted by growing enterprise andgovernment interest in cloud computing, and ICT-friendly budget measures, but much will depend onconfidence in a sustainable economic recovery. Malaysia's IT market is distinguished by a marked digitaldivide and, in the Klang Valley area around Kuala Lumpur, a mature urban population surpasses evensome 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 inUS dollar terms upwardly revised due to to macroeconomic factors, and PC sales will be supported by thegovernment's push for greater broadband penetration.

Software sales: US$876mn in 2012 to US$952mn in 2013, +9% in US dollar terms. Forecast in USdollar terms upwardly revised due to analyst modification, and e-business applications such as enterpriseresource planning (ERP) and customer relationship management (CRM) are becoming increasinglypopular 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 dollarterms 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 RRRtable, behind developed markets such as Singapore and Australia, but ahead of ASEANregional peers such as Thailand, Philippines and Vietnam. Its overall rating was boosted byrelatively 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 tryto develop a national cloud computing platform. Cloud projects are not confined to the nationallevel, as state governments are also exploring this area. Malaysia's Melaka State Government hasstarted to build new infrastructure, including a common datacentre and a disaster recoverycentre. The Melaka State Government has virtualised the datacentre infrastructure to make sureit is 'cloud-enabled'. Cloud computing is also seen in Malaysia as having considerable utility forschools.

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 thecountry. 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 ashaving great potential to help more SMEs to access technology.

In 2012 the government announced its latest Digital Malaysia Masterplan to drive the next stageof development of Malaysia's ICT sector. The plan will propose a number of measures tostrengthen Malaysia's ICT ecosystem, including talent development, as well as stimulatingdemand by consumers and businesses for ICT products and services. Encouraging the creation ofmore local applications for cloud computing is expected to be one focus of the Digital Malaysiaplan. The government's plan to develop a national cloud computing programme should also driveopportunities in this key emerging area for vendors.



More Technology reports by Business Monitor International

Information Technology Report - Slovenia Q4 2014 by Business Monitor International
Information Technology Report - Slovenia Q4 2014BMI View: The development of the Slovenian IT market was stymied in 2012 and 2013 by the challengingeconomic environment ...
Information Technology Report - Mexico Q4 2014 by Business Monitor International
Information Technology Report - Mexico Q4 2014BMI View: We have a bullish outlook for IT sector development in Mexico over the medium term due to ...
Information Technology Report - Israel Q4 2014 by Business Monitor International
Information Technology Report - Israel Q4 2014BMI View: Although Israel's small and mature IT market is expected to grow more slowly than most othersin MEA, ...
Information Technology Report - Indonesia Q4 2014 by Business Monitor International
Information Technology Report - Indonesia Q4 2014BMI View: our bullish outlook for the Indonesian IT market is reflected in the latest consumer confidencesurvey released by ...
See all reports like this >>

More Malaysia Technology reports

Information Technology Report - Malaysia - Q3 2014 by Business Monitor International
Malaysia Information Technology Report Q3 2014BMI View: The Malaysian IT market is expected to continue on its strong developmental trajectory over themedium term due to ...
See all reports like this >>

More Malaysia reports

D&B Country RiskLine Report: Malaysia by Dun & Bradstreet Inc.
This D&B Country RiskLine Report will help you analyze the risks, opportunities and likely payment delays when doing business in this country. It includes ...
PCs – Malaysia – a snapshot (2010) by Mintel - Snapshots
PCs in Malaysia by Mintel Global Market Navigator provides you with annual year-end market size data, most recently updated in 2010. This market covers desktop ...
See all reports like this >>

 

SELECT A LICENSE

    Report with 3 quarterly updates  USD 1,175  
 
US: 800.298.5699
Int'l: +1.240.747.3093
 

Share this report


    Other tasks

     
     
    Join Alert Me now!
    Receive bi-weekly email alerts on new market research

    Sign up today!