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(Last updated: 25 Aug 2008)
Trends and opportunities
The market
Under the Ninth Malaysia Plan (9MP) period, the blueprint highlights ICT as a core component in the three main aspects of the country's education system: infrastructure, content and manpower.
According to The Malaysian Communications and Multimedia Commission (MCMC) the Internet dial-up subscription has 11.5 million users and the nation's broadband penetration rate is still low at 12.8 per cent for every 100 households. Broadband growth encouraged by the government’s Broadband Plan and the growth in WiMAX usage resulted in a reduction in the number of Internet dial-up users and increase in multimedia revenues.
There were about 22 million mobile phone users in Malaysia in 2007. With the entry of new 3G service providers and introduction of mobile network portability (MNP) in 2008, calling rates are expected to decrease and more innovative value-added services, such as mobile advertising, mobile music, and mobile broadcast TV, are expected to be launched.
The Multimedia Super Corridor (MSC) is a zone that encompasses Kuala Lumpur and five key infrastructural projects:
- Petronas Twin Towers
- Putrajaya (new government administrative capital)
- Cyberjaya (‘intelligent’ research and development city)
- Technology Park Malaysia
- KL Tower
There are eight MSC Flagship Applications and three rollout phases over a 20-year timeframe. The MSC aims to attract world-class multimedia companies to establish research and development facilities with a Bill of Guarantees and incentives for MSC-status companies.
The MSC remains the major Malaysian Government initiative. Having seen the establishment of much of the regulatory background, the Cyberjaya ‘industrial park’ and some of the flagship applications, the plan is now to extend its reach into other regions of Asia with the intention to establish useful relationships with other countries to facilitate effective business matching and trade.
Another boost for the ICT industry is the setting up of specialised intellectual property courts, which will start hearing cases under the Trade Description Act 1972, Patent Act 1983, copyright Act 1987 and Optical Disc Act 2000. The move underlines the government's effort to position the country as a regional ICT hub.
Opportunities
The Malaysian IT industry is still largely import-oriented and reliant on foreign-based technologies. This creates opportunities for Australian companies.
The key growth areas for the supply of hardware, software and services in the Malaysian IT industry include:
- E-security
- E-learning
- Mobile content or other content applications for PDAs/mobile phones
- Asset management solutions
- Application software with specific functions
- Telecommunications products and services
- Systems integration and consultancy services
- Outsourcing
Companies are focusing more on mission-critical specific applications (eg. enterprise software, asset/inventory management) than ‘nice-to-have’ products. Generic software does not attract the local market, but customised solutions that match the needs to the particular sector are currently sought.
Competitive environment
The local information and communications technology (ICT) sector is set to continue to draw foreign direct investment (FDI) this year, despite intense competition from other Asian countries.
With Malaysia taking measures to strengthen its position as an international Islamic financial centre, this should encourage more investments from the Middle East. Malaysia is an ideal location for these countries as we have a ready ICT infrastructure.
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