PIKOM sets agenda for ICT industry growth

KUALA LUMPUR – PIKOM, the National ICT Association of Malaysia, has set itself high targets as it seeks to lead the efforts to strengthen the Malaysian ICT industry capacity to achieve strong growth, particularly in the export sector.

Speaking at a Press Conference after the association’s 22nd Annual General Meeting (AGM) here today, PIKOM chairman David Wong Nan Fay says in addition to continuing present efforts to improve on and stage activities such as PIKOM PC Fair, PIKOM Software and Services Showcase, and PIKOM National ICT Awards, three new focus areas have been identified. “At the top of the priority list is the pursuit for 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.”

Specifically, he says that PIKOM will seek to improve the rate of employability – defined as having sufficient competency level to be immediate absorbed into ICT workforce, among fresh ICT graduates.

“We would like to achieve at least 80 per cent employability rate among ICT graduates by 2012. By our definition, this is to say that 80 per cent of our ICT graduates would be employed in an ICT field within six months of their graduation,” says Wong, who is also the Group Chief executive Officer of SnT Global.

Currently, he says, the rate is said to be very low, partly due to the lack of soft skills such as command of English and communications ability. Reliable statistical numbers on this is not available but a range of 10 to 15 per cent employability rate has been quoted.

“Intervention is certainly needed to rectify the situation if we were to meet the expected ICT industry demand for additional graduate employees which is projected to be about 60,000 by 2010 and 100,000 by 2012.”

Towards this end, the Association will introduce the PIKOM Assessment for Competency Test (PAC) designed to measure skills gaps of the graduates. Once the gaps are identified, it would be relatively easy to devise suitable courses to close the gaps. The PAC program is expected to start on a pilot basis this December.

“We will also continue to promote the Finishing School Programme to local institutes of higher learning as well as the relevant bodies. Implementation of this programme will ensure a longer-term and sustainable solution to the employability issues among our ICT graduates,” says Wong.

On another front, PIKOM is also putting emphasis enhancing its market research capability through its own Market Research Department which was establish earlier this year.

PIKOM President CJ Ang explains that the Malaysian market currently lacks definitive statistical information on Malaysia’s ICT industry. Local companies rely heavily on statistical reports by research companies and non-Malaysia-based organizations such as WITSA and ITU.

He says it is difficult for local players to find reliable market intelligence to help them make informed business decisions. In addition, there is no single point-of-reference information on ICT. As far as industry classification is concerned, ICT is currently split into Electrical & Electronics and Services sectors instead of being not treated as sector on its own.

“Our aim is to create a National ICT Repository (NIR) and envisioned it to be the first-point-of-reference for everything and anything about ICT. We hope to have the NIR up and running by 2009 or 2010,” says Ang.

With the Market Research Department established, PIKOM has lined up several market research projects to be implemented over the next one year. They are the Outsourcing Malaysia Strategic Study, Malaysia ICT Exports Study, Human Resource Study and PC Industry Study.

Another high priority area for PIKOM in the new term is to promote growth of export business among Malaysian ICT companies.

Wong says at present, only a small percentage of local players export their products and services. It has been reported that Malaysia’s ICT exports is currently worth about RM5 billion – mostly by MSC companies.

In line with its 5 Year Plan which targets to double the industry size to RM80 billion by 2012 (from RM40 billion in 2007), PIKOM hopes to see Malaysia’s ICT export market to grow to a minimum of RM10 billion over the same period.

“Achieving this will be challenging as local ICT companies lack brand recognition at the international levels. There is also inadequate funding available to assist them to expand their business overseas,” says Wong.

Towards this end, he says that PIKOM plans to establish overseas resources in strategic locations to provide necessary assistance to local ICT companies break into foreign markets. The first one is expected to be established in 2009 but the location has yet to be decided.

Earlier at the AGM, Wong thanked PIKOM members for their vote of confidence in his ability to lead the Association for another term. He was returned unopposed as Chairman of PIKOM for the 2008/2009 term.

Also returned unopposed are the three incumbent office-bearers namely Deputy Chairman Wei Chuan Beng, the Group Managing Director, REDtone Telecommunications Sdn Bhd; Secretary Low Wai Sun, the Managing Director, MTEC Computer (M) Sdn Bhd; and Treasurer Woon Tai Hai, the CIO, Chief Knowledge Officer & Partner, KPMG Business Advisory Sdn Bhd.

Continuing their services as Councillors for another term are Ralph Tay Cho Hup, Executive Director, One-Technoniche Sdn Bhd; Dave Chong Min Kuin, Director, Global Web Holdings Sdn Bhd; Stan Singh-Jit, Senior Vice President, MUI dotCom Sdn Bhd; and Derrik Khoo Sin Huat, Chief Innovation Officer, E-Genting Holdings Sdn Bhd.

They are joined by re-elected councillors Hasannudin Saidin, Director, Government Programs of IBM Malaysia and Cheah Kok Hoong, General Manager of Sunway Computer Services; as well as new-elected councillors Yoshinori Nakajima, Manager of VAIO Department, Product Marketing Division of Sony Malaysia; and Jeffery Ooi, General Manager, Business Innovation Division of Celcom.

PIKOM Councillors are elected on a two-year term basis and outgoing councilors may seek re-election once their terms ended.