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Malaysia risks slipping further if gaps not addressed, warns study

AvantiKumar | March 2, 2016
Better mobile infrastructure is important to lifting overall app experience and Malaysia’s competitiveness in the Application Economy, said CA Technologies' Nick Lim.

Nick Lim - Vice President for Asia South 

Photo - Nick Lim, Vice President, Asia South, CA Technologies.

"Malaysia's scores on the AEI show there are both weaknesses to work on and strengths to build upon, with highlights like having the strongest cybersecurity in the region," said Nick Lim, vice president, Asia South, CA Technologies.


"The results offer a snapshot of the environment today, and indicate where Asia's economies are in terms of how conducive their market environments are for app development and market entry in the present," he said.
 
 Future leaders
 
The second part of CA's study examined future leaders of the application economy through the use of Market Potential Accelerators (MPA). This index evaluated factors that have the ability to impact and accelerate market potential in the new application economy.

They are: (i) the number of smartphone users in a market, (ii) the number of people who use mobile Internet on a daily basis, (iii) the use of virtual social networks, (iv) the daily use of mobile applications, and (v) the size of the youth demographic in the market.
 
When MPA are taken into account, Malaysia risked slipping three spots to ninth place if it leaves market gaps unaddressed. Some of the challenges it faces include a relatively small market of smartphone users, and the lowest number of people who use the mobile Internet on a daily basis.

Its population was also not as familiar with new mediums and modes of communication within the application economy, ranking seventh for daily use of applications and fifth for use of virtual social networks.

Silver lining

The study found that Malaysia has a silver lining in the form of an above-average percentage of youth population. Given proper education and training, this group will be in good stead to become the next generation of digital natives.
 
Malaysia's drop in rankings in the MPA shows how markets can fall behind in the application economy, if they do not move fast to address gaps.

The study concluded that Malaysia can prepare itself for the future marketplace by investing in its youth population and helping them to be more familiar with applications and social media, while addressing key weaknesses like poor infrastructure. Enterprises must act fast to capture market share, and governments need to push ahead with policies to improve infrastructure ahead of demand.

"Businesses will find it more critical than ever to harness software to stay competitive and relevant in a fast changing world, while governments should address any weaknesses in policy or infrastructure," said CA Technologies' Lim.

 

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