PIKOM對2008年財政預算案的回應

BROADBAND THUMBS UP FROM PIKOM PETALING JAYA, Friday, 6 September 2007 – Association of the Computer and Multimedia Industry of Malaysia (PIKOM) welcomes the wide array of incentives which appear to encourage Information and Communications Technology (ICT) ICT usage and penetration, especially broadband.

According PIKOM chairman David Wong Nan Fay, the ICT-related incentives mentioned by Prime Minister Datuk Seri Abdullah Ahmad Badawi, will encourage nationwide broadband penetration among the industry, more so for Small and Medium-sized Enterprises (SMEs). “PIKOM now sees a light at the end of a formerly dark broadband tunnel. In addition, we feel the three incentives mentioned by the PM now make it possible to achieve a target of 50 per cent broadband penetration in households by 2010.”

The first incentive grants last mile network facilities providers an Investment Allowance of 100 per cent on capital expenditure which they incur for broadband, up to 31 December 2010. “PIKOM, as the voice of the industry, is pleased at such savings but feels the Government should extend this beyond 2010. This will contribute towards a higher broadband penetration rate beyond 50 per cent.”

The second incentive grants broadband equipment and consumer access devices exemptions from sales tax and import duty. “We expect such devices to be more affordable and appealing, especially to SMEs and homes. However, broadband device merely provide access. The crux of the matter still revolves around the broadband cost, which PIKOM feels is still relatively high. PIKOM sees it necessary for the Government to directly intervene and lower the cost of broadband subscription to make it more affordable to the average Malaysia.” He added, PIKOM wants the Government to seek ways of assisting broadband provider realise a nationwide and consistent Quality of Service of 2Mbps, which is International Telecommunications Union (ITU)’s definition of broadband.

The third incentive announced by the PM grants tax deductions to employers and employees. Employers benefit from tax deductions by investing in new PCs and broadband subscription fee payments to their employees. “This is a multi-prong incentive that encourages employers to leverage their workforce using ICT and builds a broadband-capable mobile workforce. At the same time, it also benefits employees. It creates a spill over effect, which will result in more Malaysians having access to a PC. It will also extend a wider broadband experience to customers and homes.” However, he noted other factors like the relatively high cost of broadband subscription was not addressed.

Wong said other ICT-related incentives reflect a more ICT-friendly Government. “However, we’ve to dig deeper before we can realise Malaysia’s ambition of becoming a net ICT exporter, have a critical mass of broadband users and subscribers,” he said, welcoming the PM’s intent to closely monitor the rollout of broadband by service providers.

The ICT industry is also experiencing rapid growth as a world-renowned shared services and outsourcing (SSO) hub. “The proposal to simplify the issuance of work permit and entry visas for skilled workers will be a boon for the local ICT industry, especially SSO companies, as we’re facing talent shortage,” said Wong, highlighting that human capital is a key issue in the ICT services industry.

“This proposal will allow local ICT companies to make it more convenient in recruiting human capital talent. It directly influences their ability to expand and serve a global market.”

He also said PIKOM was glad to have the Government’s full support and commitment to ensure the success of 16th World Congress on Information Technology (WCIT) next May. PIKOM is co-organising WCIT 2008 with Multimedia Development Corporation (MDeC). “Both PIKOM and MDeC will work closely with related Government agencies to met PM’s expectation of welcoming 5,000 delegates at this event.”