Malaysia Ict Industry Status

Abstract

Nowadays, understanding and using information and communications technology (ICT) to make a much better competitiveness is impose by international markets. Since Malaysia is still under developing country, the businesses must keep updated with changes and progresses that are occurring. Outsourcing initiatives will increase the efficiency and effectiveness of the business activities with IT performance.

This paper identifies current status of ICT industry or market esp. after 2005 in Malaysia. Beyond the research it got to be know that, Malaysia has a very good strength to become world player in ICT industry because of sufficient infrastructure, strategic position of Malaysia and the widely usage of English language. These will make our country Malaysia develops and success in providing ICT outsource. In addition, the minus point that should consider is the very poor level of e-readiness in the worldwide ranking. Furthermore, political contacts with China, Middle East and India are the excellent opportunities for Malaysia to develop its strength on ICT industries. Lastly, this paper includes with some ideas to improve the strength of Malaysia to excel in ICT industry.

Introduction

In today’s modern life, technology often believed to be pervasive in our society. The drastic development and use of technology start when the timing known as the industrial revolution that had transformed our society. Globalization has contributed with transnational corporations to develop the communication technologies and it being as an important market.

ICT system will inspire the great changes happens in our world’s political, social, and economic environments. It really takes a very long period to the progression of ICT. However, the changes in its development have increased significantly by the past decade. Recently, ICT sector has been given importance especially its role in economic growth, social, in the formation of the new information society which relate with new economy. An accurate definition, which allows for a reliable, comprehensive indicators and measurement, is important to get clear information on ICTs’ causes on economies and societies.

Since the over the last 40 years there was a rapid development on Malaysia’s economy. Our country has developed to an export-driven economy with high technology and manufacture-based industries from an economy that depends on agriculture and primary commodities. For the timing, the world economy is progressing at a moderate level. Past the last decade, Malaysia has gone through a drastic progression, which has put our country on the world map in between the high-tech sector. These also include segments like Information and Communications Technology (ICT), hardware and software, and IT-services in general.

The definition of ICT

ICT is not only included in the parts of infrastructure and hardware. However, it also concludes data, knowledge and information. ICTs provide a skilled human resource component in where the knowledge will transmit through computer and communications networks. Later, it will accept to get with the needs of its users that are informatics.

The current status on ICT industry in Malaysia

Malaysia really excelled to its production of semiconductors, computer monitors, disk drives and memory chips. Now our lovable country Malaysia is at the halfway of its journey upon 2020 and just started towards the second fifteen-year phase. ICT also has given drastic changes in the speed and spread of transactions.

In the world of ICT industry, Malaysia is at the third rank. It is also a very suitable to study about ICT outsourcing which will be a good decision for offshore and local companies. Malaysia’s growth IT industry shows the demand for the related hardware appliances, software and products and services based on internet and the great progression of e-commerce worldwide.

PIKOM is a member of World IT and Services Alliance (WITSA). In the year of 2006, PIKOM from its research it gets to know that the Malaysian ICT industry shows about 12 percent growth by 2006. This compares with a growth of 10% in 2005. Based to Digital Planet, the total ICT spending in Malaysia shows RM 31.92billion (USD 8.4billion) and it falls in communications sector by RM 21.66billion (USD 5.7billion) by the year 2005. Then the IT Services RM 1.9billion (USD 500million), hardware spending is about RM 5.7billion (USD 1.5billion), and software RM 2.66 billion (USD 700 million).

The economic indicators show a higher level of growth in national economy by the year 2006 that also includes ICT industry. The outsourcing and shared services industries