BMI View: The Malaysian IT market is expected to continue on its strong developmental trajectory over the medium term due to an accommodative economic environment and supportive government policy. In the hardware market , s ales of tablets are helping to compensate for the slowdown in desktop and notebook shipments. W e believe lower priced u ltrabooks and hybrids/convertibles, as well as new devices using Intel 's Haswell chips, will boost sales in the short-to-medium term , thereby capitalis ing on the strong consumption story in Malaysia. Meanwhile, i n the enterprise market growth will be slightly slower, with corporate customers more hesitant as a result of ongoing global economic uncertainty. However , there will be some areas of strong growth , including security software and services, as well as outsourcing and cloud computing.
Headline Expenditure Projections
Computer Hardware Sales: MYR8.7bn in 2013 to MYR9.2bn in 2014, +5.5% in local currency terms. A strong consumer outlook will support spending on tablets, notebooks and hybrid devices.
Software Sales: MYR2.9bn in 2013 to MYR3.2bn in 2014, +10.6% in local currency terms. SME spending presents a significant opportunity for vendors where enterprise resource planning (ERP) and customer relationship management (CRM) penetration remains low.
IT Services Sales: MYR5.4bn in 2013 to MYR8.6bn in 2014, +11.0% in local currency terms. IT services is expected be the fastest growing segment of the market, with enterprise spending on outsourcing, cloud computing and security services driving demand growth.
Key Trends And Developments
The computer hardware market in Malaysia has seen a marked shift in the device sales mix since 2012, with the popularity of tablets cannibalising some notebook demand, while other consumers acquire them as complementary devices to traditional form factors. The popularity of tablets is evident in the fact household tablet penetration reached 15.3% at the...
The Malaysia Information Technology Report features Business Monitor International (BMI)'s market assessment and independent forecasts covering personal computers and software; semi-conductors, memory chips, integrated circuits and general components; the internet and IT solutions. It analyses analyses regulatory changes (licensing, customs and intellectual property protection) and competitive landscapes comparing IT companies by products, sales, market share, investments, projects and expansion strategies.
BMI's Malaysia Information Technology Report provides industry professionals and strategists, corporate analysts, IT associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the IT industry in Malaysia.
- Benchmark BMI's independent IT Industry forecasts for Malaysia to test other views - a key input for successful budgetary and strategic business planning in the Malaysian IT market.
- Target business opportunities and risks in Malaysia's IT sector through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments in Malaysia.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).
Summary of BMI's key industry forecasts, views and trend analysis covering IT, regulatory changes, major investments and projects and significant national and multinational company developments.
Cross-border analysis of regional markets, commenting on IT penetration (PC and internet) and market growth drivers (IT market size and IT market compound growth).
Country Market Overview
Structure, size and value of the industry sectors including hardware, software and services; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments and government authority.
BMI Industry Forecasts
Historic data series and forecasts to end-2017 for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:
IT Sector: IT industry value (US$bn); IT sector contribution to GDP (%); value of hardware, software and services industry (US$mn); PC, peripherals and software imports and exports (US$mn); PC, peripherals and software sales (US$mn); number of PCs (`000); PCs/100 inhabitants; internet users (`000); internet users per 100 inhabitants; broadband subscribers (`000); broadband subscribers per 100 inhabitants.
Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).
BMI Macroeconomic Forecast
BMI forecasts for all headline macroeconomic indicators to end-2017 including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.
Full analysis of the competitive landscape within the hardware, software and services sectors.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.