Market Study
G: 9907101676 IT Services | M: 7020 Consultancy Services
Major Demographic, Economic, Social & Cultural Factor
Major credentials from Malaysia were Public Key Infrastructure (PKI), e-passport management systems, public database management solutions, HR management systems, electronic counter services and web based e-services, e-procurement and e-payment (QR & e-Wallet). Our future direction now resides in penetration of Big Data – Big Data & Analytics (BDA) form a significant part of ICT services in Malaysia with projected revenue expected to reach to RM720 million by 2020. The applications of BDA are targeted on retail, crime prevention and citizen data analysis.
Malaysia is one of the leading countries in ASEAN regionals to adopt BDA and has proliferating elements to support the ecosystem for (IoT). Recently the government of Malaysia launched the National IoT Blueprint to take advantage of numerous opportunities offered by IoT technologies.
Major Players
Malaysia is generally viewed in a positive light for its competitive position, which has attracted several reputable multinational corporations and service providers to its shores. With strong domestic demand for outsourcing services and intense competition from India and China, the government has been supportive in developing Malaysia into a competitive location through various incentives, programs to improve skill sets to create a ready ICT services talent pool.
World-class companies such as DHL, HSBC, IBM, Intel, Motorola, Nokia, Shell, Unisys and others have set up their base of regional and global operations in Malaysia. With the growth in Business Process Outsourcing (BPO) and IT services, Malaysia’s IT services sales of US$1.6 billion back in 2012 itself produced a high growth potential. (Source: Business Monitor International, Malaysia Information Technology Report Q1 2013)
Nature of The Industry
According to Business Wire: A Berkshire Hathaway Company, the Malaysian ICT market is going through a lot of changes and will gain momentum in 2016. The Malaysian government has taken special interest in developing the Internet of Things (IoT) sector, which has resulted in several market partnerships.
The country’s eCommerce market is slowly but steadily increasing while its telecom sector has strong competition. Mobile Network Operators (MNO) are using innovative marketing tactics to attract new subscribers and retain existing ones. In the last year, there has been an increase in cyber attacks on Malaysian businesses; the country is now one of the top 10 global countries affected by online banking malware.
Trends In The Industry
The past two decades seem to confirm the power of regulatory reform trinity: separate regulators, competition and privatization. By following, adapting or reinventing these approaches, countries around the world have revitalized their ICT markets, transforming them into digital economies. Importantly, most countries have created separate regulatory authorities that are independent in their decision-making. The number of separate regulatory authorities has increased from only 12 in 1990 to 153 at the end of 2009.
Government Regulation
Regulators have gradually opened fixed-line services to competition, almost always privatizing the national fixed-line incumbent along the way – some 124 fixed-line incumbents had been private by 2009. The traditional role of regulators has been primarily to regulate access to the telecommunication market through licensing, assigning spectrum and other scarce resources, dealing with interconnection issues and contributing to universal access support programs. Now the focus has shifted towards creating an enabling environment for investment to foster market growth and ensure effective digital inclusion for all.
Market Segment
Malaysian Government has implemented many innovative e-Government projects to increase the civil services effectiveness, productivity and delivery of services. According to the United Nations e-Government Survey 2010, Malaysia is ranked at 6th place in the list of 25 developing countries for e-Government development after Republic of Korea, Singapore, Bahrain, Israel and Colombia. Mainly, Malaysia stood out as one of the strongest to what constitutes the overall ASEAN segment.
Market Trends
According to research firm Gartner Inc, international spending on cyber security in 2019 will hit US$101bil (RM443.7bil). A separate report by Markets & Markets estimates that the global cyber security market is set to reach US$170bil (RM747bil) by 2020. This is at a compound annual growth rate of 9.8% from 2015 to 2020.
While some of the major industries that are expected to increase the demand for cyber security solutions are aerospace, defense, and intelligent industries. In our region, the Asia Pacific’s cyber security market is expected to grow to US$32.95bil (RM144.7bil) by 2019, according to Micro Market Monitor, with an expected compound annual growth rate of 14.1% for the period 2013-2019. The Asia-Pacific market represents 17.21% of the global market and this will increase to 21.16% by 2019. The figures all point to the tremendous global business potential in ICT security-related products & services. But it is one that would be competitive and dynamic.