Cisco Malaysia’s Post-Budget Commentary Malaysia National Budget 2009

Kumaran Singaram, Managing Director, Cisco Malaysia

As the National Budget 2009 aims at building a resilient nation for sustained growth and shared prosperity, it is important that the government continues to support further adoption of information and communications technology (ICT) and capitalise on the vast power of technology to enable business efficiency and drive competitive advantage.

We are pleased with the ICT-related initiatives in the National Budget 2009 and we are confident that it will propel greater adoption of ICT technology across all industries. These initiatives can only help to enhance productivity, improve efficiency and promote operational effectiveness.

In particular, the reduction of the claim period from two years to one year under the Accelerated Capital Allowance on expenses incurred on ICT equipment is laudable and will encourage more companies to invest in technology.

More significantly, we are encouraged by the government’s move to further enhance the role of SMEs in the economy. The funding and aid that is available to SMEs through Bank Negara Malaysia to assist the modernisation of SME operations, especially for purchase or upgrading of machines and equipment, will definitely encourage the adoption of business-critical technologies among Malaysian companies and spur SMEs to compete in the global stage.

Another critical area of ICT that the government has addressed is manpower development. Cisco welcomes the government’s call for organizations to instill a culture of excellence and high performance, in particular, by recognizing and rewarding innovation and productivity, at all levels of the workforce. Cisco has been working with key institutions across Malaysia such as Multimedia Development Corporation (MDeC), IMS Asia, MIMOS and local universities through the Cisco Networking Academy program to contribute to the country’s agenda of increasing the pool of technology and research-based human capital capable of competing on the global stage. To build a more resilient nation, there is more to be done to build a progressive workforce. There is a great need for more private sector players to jointly promote a more knowledge-based society to meet the demands of today’s employers.

In realising the increasing importance of green and sustainable measures for our future and with key issues such as global warming and carbon emissions at the forefront, the government and organisations alike can no longer depend on traditional business practices in order to remain environmentally sustainable.

Moving forward, we hope to see greater adoption and implementation of world-class technology and infrastructure for a more sustainable future. A key initiative is the establishment of energy-efficient data centers with world-class facilities in Malaysia. As energy costs continue to escalate, data centers need to be re-architectured to minimise power consumption, while at the same time maximise data availability, storage efficiency, security and compliance. Cisco is committed to help the government achieve this vision by using the network as a platform, to help people work, live, play, and learn in an environmentally-friendly way.