| Frost & Sullivan Research Service | Published: 6 Jun 2007 |
| Research Overview |
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The global information and communications technology (ICT) industry has provided the supporting infrastructure for economic growth across the world in the last decade. Despite the setbacks following the failure of dot com enterprises, the ICT industry continues to show enormous growth potential. ICT is a vital component of the infrastructural support needed for the development of any economy. Global trends in telecommunications indicate a shift toward open access, creation of a healthy competitive environment, and a consequent drop in prices. Although companies are likely to continue outsourcing IT services mainly to India, they are also expected to increasingly witness lucrative bids from Russia, the Philippines, Ireland, Israel, and China. ICT spending is likely to grow impressively, with emerging markets in eastern Europe and Asia Pacific leading the way. Shares of IT and telecommunications sectors are almost equally important in the total ICT spending, with governments and businesses accounting for more than three quarters of the spending. The general economy, an expanding consumer base, and increasing foreign investments play critical roles in the development of the ICT industry. In 2006, Malaysia was the 33rd largest economy in the world based on purchasing power parity (PPP). The Malaysian economy, which is growing faster than anticipated, continues to remain resilient despite threats of inflation. The country’s gross domestic product (GDP) recorded a moderate growth rate of 5.8 percent in 2006. Stable inflow of foreign direct investment and large current account surplus have aided the accumulation of significant foreign exchange reserves, strengthening Malaysia’s economy. Increase in domestic demand, private sector investments, and rise in exports further cemented its position. The ICT industry is also emerging as a strong contributor to employment and economic growth, especially with the country becoming a top investment destination. The industry has achieved high growth rates on the back of robust economic growth, greater political stability, and expanding consumer base. The Malaysian ICT industry contributed to 5.7 percent of the GDP in 2006. While the telecommunications sector has dominated in volume, the IT sector has shown greater growth rates. IT hardware is the largest IT segment, driven by lower prices and showing a trend toward mobility. Packaged software dominates, but creative multimedia has major growth potential in the IT software segment. IT services, particularly the shared services outsourcing (SSO) business in the banking and transportation sectors, are growing fast. There is a perceived shift from traditional IT outsourcing (ITO) to discrete outsourcing services or IT provision. The steady decline in fixed line telephony is offset by broadband connectivity and mobile telephony, which are booming with the introduction of UMTS and 3G technologies. Frost & Sullivan’s Information and Communications Technology Country Industry Forecast service provides vital inputs for evaluating the attractiveness of a country and its ICT industry. Besides enabling decision makers to assess the impact of non-market forces, it also helps in identifying new market opportunities. This service provides a strong base for preparing contingency plans. In addition, investors can assess industry-specific risk factors as well as conduct an in-depth micro research. Frost & Sullivan Growth Partnership Service Based on extensive and in-depth research, real-world consulting work, and new theories tested in hundreds of companies across many industries, Frost & Sullivan has evolved its Growth Partnership Services (GPS) program that provides established and emerging firms with powerful growth visions. Moving beyond token mission statements, GPS provides an actionable vision to growth consulting partners by illustrating how key intelligence and strategic research based on defined goals can guide day-to-day behavior and overall company direction. The foundation of Frost & Sullivan's GPS includes:
To maximize the potential for growth within a firm’s internal and external environment, Frost & Sullivan consultants can facilitate the creation of strategic programs that deliver improved market success. Frost & Sullivan’s strengths lie in combining strategic understanding with market expertise and applying these with absolute commitment to its clients’ growth. |
| Benefits of this Service |
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Identify New Market Opportunities The future trends of the economy of Malaysia have been analyzed along with their impact on the ICT industry. This analysis will provide valuable information to industry participants on market opportunities in specific segments of the industry. Understand Future Industry Trends The study discusses the Malaysian ICT industry’s dependence on the prevailing economic framework and forecasts its future. This will help participants to gauge the direction of the industry, enabling them to devise appropriate strategies to improve market share. Comprehend Policy and Regulatory Environment A detailed analysis of the policy and regulatory framework of Malaysian ICT industry provides insights into the regulatory environment as it exists and the future direction of the same. This is particularly beneficial in the case of the telecommunications industry, as regulations form an important criterion for industry performance. Devise Country Entry Strategies The study provides valuable information and analysis of the strengths and weaknesses of the economy of Malaysia, which are relevant to the ICT industry. This is particularly useful in devising country-specific strategies for industry participants. Evaluate Industry Segment Potential This research service offers a detailed coverage of economic issues as well as industry-specific and macro economic policies impacting the industry. It provides both country and industry trends and forecasts for major variables and is an excellent tool for companies that plan to enter new geographic markets. This will help corporate planners in developing accurate business plans and enhance credibility to planning company resources. |
| Table Of Contents |
1. Introduction
1. Country Industry Overview
1. Malaysian Economy and ICT Industry
2. Economic Analysis
1. Economic Trends
1. Overview and Forecasts
3. Industry Analysis
1. Industry Structure and Performance
1. Information Technologies Industry
2. Telecommunications Industry
4. Impact Analysis of Economic Trends
1. Impact Analysis and Growth Opportunities
1. Major Trends
2. Growth Opportunities
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