Industry Report Malaysia
ICT SECTOR
OFFICIAL PROGRAMME
ICTSECTOR MALAYSIA This report describes the main aspects of the ICT sector in Malaysia including eGovernment, Cloud Computing, ICT security, multimedia, and mobile communications. All information in this report is drawn from credible secondary sources, and even, what was conveyed directly by experts in the field is included with corroboration from recognised, reliable sources. The objective is to layout for the reader the scope of the ICT landscape and the existing business opportunities. The Malaysian ICT industry and the nation as a whole are determined meet the 2020 deadline for attaining developed nation status. This is the impetus for their aggressive surge forwards to catch up with the other Asian countries like Hong Kong, Japan, Singapore, South Korea and Taiwan. ICT has become the enabling element in virtually every sector of the Malaysian economy and life in the overall development and growth. With all the barriers in place, mostly self-imposed, Malaysia’s attainments are worthy of consideration and acknowledgement.
Language: English Number of pages: 37 Author: Acutance Sdn Bhd Other ICT Sector Report: Are you interested in other ICT Reports for other sectors and countries? Please find more Reports here: www.switzerlandge.com/reports
Contents
EXECUTIVE SUMMARY _________________________ 5
8.
MARKET ACCESS ____________________ 26
8.1
suggested business models _______________ 26
8.2
msc status company____________________ 27
8.3
recent development ____________________ 27
8.4
marketing strategies ___________________ 28
8.5
trade shows & Events ___________________ 28
8.6
risk factors __________________________ 29
9.
MARKET OPPURTUNITIES _____________ 29
10.
RECOMMENDATIONS _________________ 34 APPENDIX ___________________________ 35
1.
INTRODUCTION ________________________ 7
2.
OVERVIEW ____________________________ 7
2.1
Country View _________________________ 7
2.2
ICT Historical Overview _________________ 8
2.3
Current Status ________________________ 10
3.
THE MARKET 2013 AND BEYOND ________ 11
4.
DETAILED VIEW _______________________ 12
4.1
EGovernment / ehealth __________________ 12
11.
4.2
IT Security / cyber security / access security ____ 15
APPENDIX A – MINISTRIES, GOVERNMENT
4.2.1
IT Security / Cyber Security _______________ 15
4.2.2
Access Security _______________________ 16
4.3
Cloud Computing ______________________ 16
4.4
Telecommunication / mobile carriers /
APPENDIX C ______________________________ 39
Applications _________________________ 18
APPENDIX D ______________________________ 40
4.4.1
The Communications Content And Infrastructure 18
APPENDIX E - A COMPARISON OF REVENUE
4.4.2
Cellular Phones _______________________ 21
DISTRIBUTION AMONGST THE DOMINANT
4.4.3
Smart Phone _________________________ 21
CARRIERS __________________________ 41
4.4.4
Tablets _____________________________ 21
APPENDIX F – Financial Data from PIKOM _________ 42
4.5
creative industry – games, content creation ____ 21
APPENDIX G – Economic Transformation Programme __ 44
5.
FUTURE TRENDS ______________________ 22
5.1
Malaysian Specific trends _______________ 22
5.2
world trends ________________________ 22
6.
PLAYERS IN THE MARKET ______________ 22
6.1
Players in egovernment / ehealth ___________23
6.2
Players in it Security ____________________23
6.3
Players in cloud computing ______________ 24
6.4
Players in mobile solutions ______________ 24
6.5
players in creative industries _____________ 24
7.
SWOT ANALYSIS ______________________ 25
AGENCIES AND ASSOCIATIONS __________ 35 APPENDIX B - COMPONENTS OF MALAYSIA’S EXPORTS AND IMPORTS 2012 ___________ 37
EXECUTIVE SUMMARY This report targets the suppliers of ICT hardware, software, and services from Switzerland. It describes the main aspects of the ICT sector in Malaysia including eGovernment, Cloud Computing, ICT security, multimedia, and mobile communications. All information in this report is drawn from credible secondary sources, and even, what was conveyed directly by experts in the field is included with corroboration from recognised, reliable sources. The objective is to layout for the reader the scope of the ICT landscape and the existing business opportunities. The Malaysian ICT industry and the nation as a whole are determined meet the 2020 deadline for attaining developed nation status. This is the impetus for their aggressive surge forwards to catch up with the other Asian countries like Hong Kong, Japan, Singapore, South Korea and Taiwan. ICT has become the enabling element in virtually every sector of the Malaysian economy and life in the overall development and growth. With all the barriers in place, mostly self-imposed, Malaysia’s attainments are worthy of consideration and acknowledgement. ICT Readiness - Malaysia is seriously well advanced in the use of ICT. It is ranked 30 th out of 144 countries in the Network Readiness Index of the Global Information Technology report 2013, one place down from 2012 but, despite this drop it is still the highest ranked developing Asian country after Hong Kong, Japan, Singapore, South Korea, and Taiwan. Broadband penetration in Malaysia stands at 66 per cent for 2012 according to the Ministry of Science Technology and Innovation- MOSTI, 1 and is expected to be 75 per cent by the year 2015. There are four mobile carriers and over a dozen Mobile Virtual Network Operators - MVNOs. Mobile phone penetration was at 137.7 per cent of the population according to Business Times report in May 20132, and there are over 41 million cell phones.
ICT Growth Readiness - Malaysia has a population of 29.7 million and is the 25th largest trading nation in the world for 2011 rankings with a GDP of USD 242 billion – year 20123, according to Malaysia’s Central Bank. The per capita income is currently at USD 9,974 (2012). The country plans to expand the per capita income to between USD 15,000 and 20,000 by the year 2020. Malaysia is cognisant of the pervasive use of ICT in all sectors, both public and private, and its importance in achieving the desired per capita income. To realise this, the Malaysian government has activated specific plans. These include the 10th Malaysia Plan, Economic Transformation Plans, a Master plan for ICT in the public sector, and Digital Malaysia.4 The Malaysian Government has set up MDeC, as the organization to assist foreign companies seeking to be established in Malaysia.5
1
http://nitc.mosti.gov.my/nitc_beta/index.php/ict-indicator/broadband-penetration-rates-by-state http://www.btimes.com.my/Current_News/BTIMES/articles/jrmilan/Article/ Bank Negara Annual Report 2012 http://www.bnm.gov.my/index.php?ch=en_press&pg=en_press_all&ac=2781&lang=en 4 http://www.epu.gov.my/en/tenth-malaysia-plan-10th-mp-, http://etp.pemandu.gov.my/, http://www.mampu.gov.my/pdf/flipbook/ISPplan2011/,http://nitc.mosti.gov.my/nitc_beta/index.php/key-ict-initiatives/digital-malaysia 5 http://www.mampu.gov.my/pdf/flipbook/ISPplan2011/,http://nitc.mosti.gov.my/nitc_beta/index.php/key-ict-initiatives/digital-malaysia 2 3
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Projections – The outlook for the ICT sector looks positive with PIKOM, The National ICT Association of Malaysia, forecasting ICT spending to be about USD 20 billion in 2013 and rising to USD 34 billion in the year 2017.6 See appendix F. Opportunities - The 10th Malaysia Plan describes twelve engines of growth that will require ICT investment. The Master plan for ICT describes the projects that must be fulfilled. Digital Malaysia is a programme responsible for the implementation of eight key ICT projects with the private sector support. These are projects that Swiss companies will do well to consider. Mobile telecommunications will see rapid growth, and, as such, the private sector must provide applications, especially mobile applications. In particular, for now, banks are seeking mobile banking applications. Cloud computing has taken off with the state of Malacca, and more such opportunities are expected to open up in the other states of Malaysia. ICT security, especially with mobile computing, is recognised as a vulnerable area needing attention. The government recognizes the creative industry as an export earner and is providing financial and non financial incentives for this sector. Malaysia has over 4000 ICT companies including the large multinationals such as Accenture, IBM, EDS, CSC and others. There are also several large Malaysian ICT companies that have ICT related revenues of USD 35 million and more. The ICT market is well served. However, the growing demand in Malaysia increases the capacity for more players, and this means that Swiss ICT companies will have the opportunity to compete with the established players. The government’s intentions are that the projects should be funded by a Private Financing Initiative (PFI), and this opens opportunities for companies that have access to funds. An initial SWOT analysis which addresses simple risk factors is included in this report. As each market is different, the desired market entry mechanism will be determined by the dynamic forces of the market itself. Market access mechanisms are described in Section 8 of this report. This paper shows that the Malaysian ICT sector is vibrant and growing, and with it the demand for goods and services that are the strengths of the Swiss ICT sector such as, eGovernment, Cloud Computing, ICT security, multimedia and mobile communications. These are the exact areas that are expanding rapidly now and although there are already many international players, the capacity driven by demand is ever expanding and is able to accommodate even more. This report also includes recommendations and details of potential projects in sections 9 and 10.
6http://www.pikom.org.my
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