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Strong Government Focus Takes Malaysian ICT Industry to the Next Level

PALO ALTO, Calif., July 24 /PRNewswire/ -- The Malaysian information and communication technologies (ICT) industry is demonstrating high growth rates and emerging as a strong contributor to the country's employment and economic growth. While the telecommunications industry has been dominating in terms of volume, the IT industry is leading in terms of growth rates.

PALO ALTO, Calif., July 24 /PRNewswire/ — The Malaysian information and communication technologies (ICT) industry is demonstrating high growth rates and emerging as a strong contributor to the country's employment and economic growth. While the telecommunications industry has been dominating in terms of volume, the IT industry is leading in terms of growth rates.

New Country Industry Forecasts from the Frost & Sullivan Economic Research and Analytics (ERA) team addressing the Malaysian ICT Industry reveal that particular opportunities exist in the segments of shared services and outsourcing (SSO), R&D in next-generation networks, wireless broadband and IPv6, next-generation multimedia technologies, open source software, information and network security, and business intelligence software.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest political, economic and social analysis of the Malaysian ICT Industry then send an e-mail to Danielle White, Corporate Communications, ERA, at dwhite@frost.com with your full name, company name, title, telephone number, e-mail address, city, state and country. We will send you the overview by e-mail upon receipt of the above information.

"The Malaysian Government has identified the development of the ICT industry as a strategic tool for the country's continued growth and its positioning in the global market," says Frost & Sullivan Research Analyst Subhadra Chandrasekhar. "In this initiative, it is guided by 'the National Vision Policy' (NVP) or 'Vision 2020', which calls for appropriate economic polices and lays down a framework to build a knowledge-rich Malaysian society by 2020."

Accordingly, the Malaysian Government invested substantial funds in creating the Multimedia Super Corridor (MSC) in 1996 to attract domestic and foreign investors to its ICT industry. The MSC currently serves as the backbone of ICT infrastructure in the country and is supported by a high-speed link (10Gb/s network) that connects it to Japan, the ASEAN countries, the U.S. and Europe.

"While the MSC offers state-of-the-art infrastructure, the Malaysian Government is also offering various tax incentives to attract global technology companies to participate in this initiative," notes Frost & Sullivan Research Analyst Farheen Pasha. "It has also launched programs aimed at building a highly educated workforce and is intensely focused on improving and expanding telecommunications infrastructure as well as telephone penetration rates."

IT hardware is currently the largest IT segment and is driven by falling prices and a growing trend toward mobility, which in turn is spurring demand for notebook PCs, smart phones and PDAs, and related content. Packaged software dominates, but creative multimedia has significant growth potential in the Malaysian IT software segment. Open source software is receiving major growth stimulus from the Government sector.

IT services, particularly SSO business in the banking and transportation sectors, are growing at a rapid pace. There is a perceived shift from traditional IT outsourcing (ITO) to discrete outsourcing services or IT provision. Although there is a steady decline in fixed-line telephony, this is offset by increasing broadband connectivity and mobile telephony due to the introduction of universal mobile telecommunications system (UMTS) and 3G technologies.

"Wireless voice dominates the telecommunications industry, followed by fixed voice and data transmission," notes Pasha. "Although Malaysian hardware is world renowned and accounts for the bulk of the IT industry, the distinction of providing growth stimulus has shifted to the IT services segment, particularly the burgeoning shared services market."

Despite many people being highly skilled, there is a shortage of labor force in the ICT industry. This has led the Malaysian Government to offer unrestricted and user-friendly work permits to attract foreign knowledge workers. Simultaneously, the country is making concerted efforts to increase ICT literacy among the general population, since the widespread computer illiteracy is restraining the expansion of ICT products and services.

The three-part series addressing the Malaysian ICT Industry is part of the Frost & Sullivan ICT GPS subscription services. The Political and Policy Analysis of the Malaysian ICT Industry provides a detailed coverage of the political establishment, general economic and industry-specific policies, and their impact on the industry. The Economic Analysis provides an overview of the market size, a discussion of drivers as well as restraints and an analysis of market structure in the context of the overall Malaysian economy. The social, infrastructure and labor analysis studies the labor market dynamics, infrastructure conditions and consumption profile. Analyst interviews and briefings to the press are available.

Frost & Sullivan's Country Industry Forecast research provides a unique country-specific perspective on various industries. The valuable Country-Industry Linkage includes in-depth analyses and forecasts.

The Frost &Sullivan Economic Research and Analytics team provides research focused on timely and critical sociometric, econometric, demographic, political, and regulatory information for specific countries by industry. It produces research services, economic impact articles, and economic updates that discuss relevant and critical economic trends.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com.

CONTACT: Danielle White Corporate Communications – Global P: +1-210-247-2403 E: dwhite@frost.com Sarah Lourdes Corporate Communications – Southeast Asia & ANZ P: +603 6204 5878 E: sarah.lourdes@frost.com Bo Zhang Corporate Communications – China P: +86 21 5407 5780 ext 8611 E: bo.zhang@frost.com http://www.frost.com

SOURCE Frost & Sullivan

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