Monday, October 28, 2013

AIMS Group Comments on Budget 2014

KUALA LUMPUR, 25 October, 2013 – AIMS Group (‘AIMS’) the country’s premier carrier-neutral data centre Group CEO, Chiew Kok Hin, comments on Budget 2014.

ICT Equipment and Software given Accelerated Capital Allowance

The ICT industry is a constantly evolving industry. In order to remain competitive, Enterprises need to continuously keep up with the latest technology advancement and regularly upgrade our equipment and most times these upgrades make up a substantial amount of the industries operations cost. The continuous support by the government in providing accelerated capital allowance for the purchase of ICT equipment and software is therefore much appreciated.

Our daily lives are dominated by technology from the morning news to social media to our daily purchases. With technology playing such a big role in our lives, any increase in operational costs will over the long run be passed on to the clients which will eventually affect the daily cost of consumers.

GST for electricity
While we applaud the introduction of GST in 2015, we are wary on its effects to the cause of electricity consumption for the Datacentre industry which falls under EPP3. The average price for electricity in Malaysia for businesses is much higher than global prices and this cost has already been a major burden for the datacentre industry. Despite the boom of cloud services and social media across the globe, we have yet to see this translate to business for the Datacentre industry. The high cost of electricity in a warm climate such as our country means higher cost to maintain data centres in Malaysia and will eventually become a deterrent for businesses to turn to Malaysia for their datacentre needs. We hope the government will look into this in the near future as it is a growing concern for the industry.

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