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Despite global economic scenario, 2011 is milestone year for Malaysian ICT: MDeC

AvantiKumar | Aug. 15, 2012
Malaysian ICT agency Multimedia Development Corporation said that revenues of about US$9.59 billion were driven by the InfoTech cluster of MSC Malaysia programme

InfoTech - MDeC

PHOTO - (from left) Datuk Badlisham Ghazali, chief executive officer, Multimedia Development Corporation (MDeC); and Dinesh Nair, director, information technology industry division at Multimedia Development Corporation (MDeC) at the InfoTech cluster update press conference.


Malaysian ICT agency Multimedia Development Corporation said the MSC Malaysia's Information Technology Cluster (InfoTech) initiative helped to drive more than RM30 billion (US$9.59 billion) in ICT revenues during 2011.

This represents 48 percent of the overall revenue, which  amounts to RM15.36 billion (US$4.9 billion), an increase of 22 percent from 2010.

Speaking on 15 August 2012, Multimedia Development Corporation (MDeC) chief executive officer Datuk Badlisham Ghazali said the InfoTech cluster's contribution to GDP (gross domestic product) rose to RM3.38 billion (US$1.08 billion), an increase of 21 percent from the previous year. 

Badlisham said that in the area of job creation, the cluster realised more than 4,030 new jobs, which represented 53 percent growth from 2010. This brought the total number of jobs created within the InfoTech Cluster to 37,824 as of 2011.

R&D spending rose three percent from 2010 to RM998.09 million [US$319 million] while exports recorded a decline of two percent from 2010 and stood at RM3.736 billion [US$1.19 billion].

"We are very pleased with the latest performance of the InfoTech cluster as it is a reflection of the fact that our ICT sector has reached a level of maturity." he said. "Amidst the uncertain global macroeconomic scenario, our ICT companies exhibited resilience and adaptability in continually reinventing themselves to retain their appeal to clients."

"The key contributors to the cluster's revenue were the following top five segments; Consumer Software, Security Telecom & Networking, Supply Chain Management (SCM), Operations and Manufacturing Apps, Enterprise Resource Planning (ERP)/Enterprise Resource Management (ERM) and Banking, Financial Services and Insurance (BFSI)," said Badlisham.

"Spending on information technology (IT) products and services by enterprises in the Asia Pacific is expected to grow by eight percent and will exceed US$367 billion in 2012 according to Gartner," he said. "In the context of Malaysia, enterprise IT spending is expected to reach RM31.5 billion (US$10.02 billion) in 2012, up 6.1 percent over 2011.

"This is good news for us as these significant developments in 2011 have set the tone for 2012 and 2013. Thus, we are geared to ensure that our companies are deploying the right go-to-market strategy to capture this opportunity."

Go to market models

Badlisham said that MDeC's next broad objective would be to help a new wave of up-and-coming MSC [Multimedia Supercorridor] Malaysia status companies break into key emerging markets via a comprehensive private sector driven programme focused on enhancing sales and marketing capabilities through a comprehensive mentoring and partnership model known as 'stacking.'

He said that stacks are consortiums of companies with a set of non-competitive, complementary and interoperable solutions, which are led by an anchor company in sharing and operating within common target markets. "This approach increases market exposure for new players via channel buyers or 'superbuyers' as well as develop MSC Malaysia status companies to match market and demand expectations."

Part of the strategy also includes intensifying integrated promotional activities within key emerging markets in synergy with government agencies such as the Malaysian Investment Development Authority (MIDA) and the Malaysia External Trade Development Corporation (MATRADE).

In quarter two of 2012, MDeC and MATRADE successfully conducted two Market Missions to Jakarta and Ho Chi Minh involving over 37 local MSC Malaysia status companies, which successfully identified potential revenues in the region of RM200 million (US$63.97 million).

InfoTech cluster director, Dinesh Nair, said: "As we develop our suite of innovative go-to-market models, we will continue to invest in key technologies such as Cloud Computing and Embedded Industry. We believe that cloud is an essential link that has enhanced the pervasiveness of the concept of Big Data.

"With a dynamic cloud infrastructure and a strong embedded ecosystem in place, we will help drive the next engine of growth for MSC Malaysia InfoTech companies between the years 2014 and 2015. This will optimise their overall revenue potential by tapping into new business opportunities arising from the Internet of Things (IoT) and Big Data."


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