SCCyberworld

Friday, July 25, 2008

PIKOM aims to double the size of Malaysia’s ICT industry in 5 years

Petaling Jaya July 24, 2008– PIKOM today unveiled an ambitious plan to facilitate doubling of the Malaysian information and communications (ICT) industry from RM40 billion in 2007 to RM80 billion in 2012. In relation to the national Gross Domestic Product (GDP), this will increase the industry’s contribution from about 7 per cent in 2007 to 10 per cent at the end of the period.

The Five-year Plan seeks to enlarge the domestic market as well as rapidly grow the export business among Malaysian ICT companies. The Plan adopts a ‘5x5 Strategy’ which outlines five key thrusts identified as crucial elements to propel the industry towards the stated goal and greater heights. The five key thrusts are:
(1) To enable ICT for all
(2) To globalise Malaysian ICT
(3) To enhance partnerships with Government & Industry
(4) To create a national ICT repository of statistics and market intelligence
(5) To strengthen PIKOM for successful execution

In turn, each thrust encompasses a number of key activities designed to address elements relevant and crucial to the growth of the ICT industry. These activities are at various stages of planning and implementation.

“Indeed this is a challenging endeavour for PIKOM but we are committed and confident that we have what it takes to do it. After all, what we are doing is crucial for the industry’s future survival in the face of global competition,” says PIKOM chairman Mr David Wong Nan Fay.

PIKOM President Mr C J Ang

He explains that given the borderless nature of the ICT industry, it is imperative for Malaysia to have strong domestic market as well as world-class ICT companies if it were to make an impact on the global arena.

“We want our domestic market to be sizeable so that it will be able to generate and sustain indigenous technology and product developments; and our players globally capable so that they can capitalise on opportunities anywhere in the world,” says Mr Wong, who is also the Group CEO of SnT Global.

Elaborating on the ‘5x5 Strategy’, Mr Wong explains that under the first thrust- enabling ICT for all, PIKOM will identify and promote ICT enablers for all engines of growth to generate demand for PIKOM members locally. This will include efforts to enhance awareness among CEOs on the enabling role of ICT in strategy execution and engaging industry groups to promote ICT adoption.

He says PIKOM has been pushing for more incentives to increase the nation’s PC and broadband penetration. In the recent Budget 2009 dialogue, PIKOM proposed that the government provide a PC Rebate of RM1,000 be given instead of RM3000 tax relief currently in effect. The change will enable more citizens to qualify for the incentive.

In addition, PIKOM also proposed that the cost of broadband access to be reduced to RM10 - RM20 per month for the currently available services offered on “best effort” basis. Alternatively, PIKOM suggested that an income tax rebate of RM1, 200 to be given to Malaysians to encourage take-up of broadband.

For the wider community, PIKOM President Mr C J Ang adds that for the PIKOM has already embarked on an industry initiative to bridge the digital divide with the Projek Menguasai Aplikasi INternet & PC (Projek M.A.IN PC).

“Under this project, we are pulling together ICT industry leaders to contribute to this PC literacy project. Initially, this project is being promoted as a Corporate Social Responsibility (CSR) initiative but we are striving towards sustainability with 150 new centres by 2010,” says Mr Ang.

On the thrust to go global, Mr Wong says PIKOM will secure a global platform and leverage on the highly successful WCIT 2008 – which Malaysia hosted in May this year, to create opportunities for Malaysian ICT products and services overseas.

PIKOM chairman Mr David Wong Nan Fay

He adds that being the host secretariat for the World IT and Services Alliance (WITSA) as well as holding its Chairmanship at least for the next two years also enables PIKOM to leverage of the Alliance’s global network to promote Malaysian ICT companies.

“Through Outsourcing Malaysia, which is a chapter of PIKOM, we are positioning Malaysian outsourcing companies into global opportunity spheres. In addition, we are also working closely with relevant government agencies on overseas trade missions to promote participations of Malaysian ICT companies,” says Mr Wong.

As to the thrust of enhancing partnership with the industry and government, PIKOM will immediately seek improved participation in Federal and State Government committees to further enable its role as the Voice of the Industry. This is to ensure an environment conducive to ICT business.

Mr Wong adds that PIKOM will also passionately pursue the development of adequate and relevant human resources that is the lifeblood of the ICT industry. This will include finding workable remedies to the shortage of skilled talents as well as the issue of “unemployable” graduates.

Under the fourth thrust, Mr Ang explains that PIKOM is setting up a Market Research Department to provide in-depth information on the levers of a global ICT market.

“The department will spearhead PIKOM’s effort to create a national ICT repository of statistics and market intelligence. The department will conduct its own research activities as well as collaborate with established market research companies in some areas,” he says.

With all the plans outlined, Mr Ang says PIKOM must enhance its strength as an industry association. This will be crucial to the successful execution of the strategies.

“This fifth thrust encompasses growing our membership base, deliver higher values to members and strengthen the secretariat resources. At the same time, PIKOM is also looking at ways to enhance its financial strength to enable the Association do what it has set out to do,” says Mr Ang.

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