Malaysia’s ICT Retailers Unite to Form Independent Association For a Better Future

Kuala Lumpur, 27 September 2012 - While the debate continues over the performance of the newly launched iPhone 5, IT retailers in Malaysia gathered to discuss a much more important matter; their survival in a changing and evolving IT market. Over 140 IT retailers and representatives of regional IT associations from all over Malaysia attended the forum.  This included Irene Sau, Chairman of Penang ICT Association (PICTA), Kevin Chan, Chairman of Ipoh IT Association and Simon Kong, Vice President of  Kuching Computer Business Association. The forum was initiated and chaired by 1 Utopia Berhad Managing Director, Chin Boon Long at Federal Hotel today.

The discussion, entitled “Survival of IT Retailers” was called in response to the current challenges faced by Malaysian IT retailers over the years. The discussion highlighted serious issues that plague IT retailers, including the steady decrease of retail price and profit margin and the ever increasing burden of operating expenses and rental cost.

1 Utopia Berhad Managing Director Chin Boon Long championing the survival of IT retailers in Malaysia

The forum also saw the IT retailers’ intent to form an independent association, a separate entity from PIKOM, to safeguard the interest and future of IT retailers in Malaysia. The association hopes to address the many challenges faced by IT retailers and aims to develop a vibrant and sustainable IT retail eco-system and fair marketplace in Malaysia. The idea, which was mooted by Managing Director of 1 Utopia, Chin Boon Long, received overwhelming support from over 100 IT retailers, who see the urgency of its independent formation.

The IT retailers have also signed a petition form to show their support on the solutions proposed during the forum. The petition has garnered the support of the majority of the attendees, and is still ongoing nationwide to reach out to those who were not able to attend today’s forum. So far, thirteen IT retailers from all over the country volunteered themselves to be part of the working committee for the new association.

Unanimous support by the country's IT retailers for the formation an independent IT retail association

While the increased demand for ICT related products in Malaysia has seemingly result in better business, IT retailers find themselves in an increasingly difficult situation, with many of them going out of business and facing legal actions as business dwindles and competition increases. Some IT retailers expressed their frustration and aired grievances notably low profit margins, price protection/rebate claims, stock commitments, financial liquidity, frequent trade fairs, no IT industry association and the impact of the government’s recent free laptop policy.

Among the suggestions made were to increase profit margins, reduce unrealistic stock commitments set by vendors, a mutually  fair and timely rebate claim system, reduction in the number of trade shows from the current 9 to 3 per year and to provide support for retailers facing financial difficulty.

The working committee, headed by Chin Boon Long (first from left), volunteering to play a role in the association

Mr. Ong Kian Yew, Executive Director of Pikom, who was also present said that Pikom was committed to take on the issues raised during the discussion and to table them at the coming council meeting in 2 weeks’ time. However, the IT retailers have united to form an independent association to champion and safeguard the survival of IT retailers in Malaysia.