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Computing & Internet Diffusion Telecom Regulation & Liberalization
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Hardware Overview [1]As a leading producer of semiconductors and integrated circuits, Malaysia has developed a strong manufacturing base for computers and components. It also has a developed telecommunications system in deploying modern technologies such as optic fibers, satellites and digitalization. Other items produced by Malaysia are memory and chips, computer monitors, and disk drives. However, the industry still faces problems such as a lack of trained and skilled IT personnel, low Internet competence and low R&D capability in universities. The local computer industry is forecast to grow between 2 percent and 4 percent during 2000. Prices of PCs are set to drop as they are targeted increasingly to the general public rather than to large organizations. Malaysia's electronics industry (comprising electronic components, consumer and industrial electronics) is concentrated at the lower end of the assembly and packaging of semiconductor components and consumer electronic goods, and is export-oriented. Improvements are required in training and in establishing competitiveness at a global level. However, rapid advancement in IT and Internet usage should increase demand for PCs and other electronic products. The country's Multimedia Super Corridor (MSC) project also provides momentum towards a stronger technology focus within this industry. The government is encouraging the development of the wafer fabrication industry to complement the electrical and electronic sub-industries, and ultimately to strengthen links within the industry through the development of precision parts and components such as vacuum equipment, precision valves and enhanced R&D activity. The Malaysian Hardware Industry [2]The electronic hardware components industry, both in terms of manufacturing and design, operates on an international basis and a global supply chain. The components industry covers a vast range of components—passive components, capacitors, resistors fixed and variable, resistors, wound components, hybrid, inductors and oscillators. It also covers electromechanical connectors—switches and relays. Semiconductors, integrated circuits, printed circuit boards plus the equipment to manufacture them and display technologies is also included. Independent contractors operate as a third party to design and provide intellectual property. The electronic component sector will continue to play an important role in the growing electronics industry. Over the last few years there has been significant structural change in the industry with acquisitions by major players leading to significant consolidation. Contract Electronic Manufacturers (CEM) have become important as the sector as OEM divest manufacturing operations to concentrate on design and marketing.
Sector Content [3]The Electronics & IT Hardware Sector contains the following areas:
Software Overview [1]According to a recent IDC (International Data Corporation) report on Malaysian Software Forecast and Analysis, 2002-2007, the local market is expected to earn US$361.4 million (RM1.373 billion) in 2003. It was worth US$342.7 million (RM1.302 billion) in 2002. The software market grew to 5.5 percent in 2003 and an updated forecast expected a 6.2 percent compound annual growth rate (CAGR) during the five-year period, reaching US$463.4 million (RM1.761 billion) in 2007. Malaysian is concerned with the rate of IT (information technology) adoption among small and medium-sized enterprises (SMEs). In an effort to encourage SMEs to use IT, the government has provided tax incentives, IT infrastructure, and set up research and development sites. According to the report, the packaged software market is fragmented and software vendors do not compete head-on with each other. Partnerships and alliances are established among vendors to provide end users a complete automation of their business process and infrastructure. The analysis also found the Malaysian packaged software market is predominantly dominated by multinational software vendors.
World Value [2]The total world-wide Software & Computer Services market value was around US$719 billion in 2000 with the United States holding the dominant market share. The European SCS market occupies 24 percent of the world market and is still growing faster than the US and Japan. The SCS market in Europe grew by 10.8% in 2000 to US$189 billion and is estimated that it will be worth US$317 billion in 2004. The UK experienced 8.5 percent growth in 2000 giving a market worth US$39 billion. A distinct competitive advantage for the Malaysia is that English is the language of IT. Another advantage are the clusters of IT and software firms attracted by Multimedia Super Corridor.
Sector Content [3]The Software & Computer Services Business to Business (B2B) Sector contains the following areas:
[1] Copyright 2003. Financial Times Information Limited - Asia Africa Intelligence Wire [2] UK Trade and Investment [3] UK Trade and Investment
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