The information and communication technology (ICT) market in Malaysia is set to grow at a compound annual growth rate (CAGR) of 8.9% between 2019 and 2023.This growth from 2018 US$16.5bn to US$25.2bn in 2023, will mainly be supported by the rising adoption of ‘client computing’ and ‘cloud computing’, says GlobalData, a leading data and analytics company.
According to GlobalData Market Opportunity Forecasts, ‘mobility’, ‘cloud computing’, ‘data analytics’, ‘storage’ and ‘business process outsourcing’ will be the five leading IT solution areas in terms of growth rate. Mobility is set to witness the highest CAGR of 21% during the forecast period.
Shamim Khan, Senior Technology Analyst at GlobalData, says: “The Malaysian Government’s initiative to create a hub for innovative producers and users of multimedia technology with Mandatory Standard for Access Pricing (MSAP) is paving the way for the availability of affordable high-speed Internet services and for the emergence of a mature telecommunications infrastructure in the country. As a result, Malaysia is set to witness a relatively high broadband penetration as compared to other peer Asian countries.”
Manufacturing in Malaysia continues to be the most significant revenue contributing sector, with its revenue contribution to the overall ICT spending expected to marginally increase from 18.4% to 18.5% of the total ICT revenues in period (2018-2023).
The growth of ICT in Malaysia, especially in the manufacturing sector, has been further aided by government-enacted policies such as ‘Industry4WRD’, a national policy which aims to transform the manufacturing sector and related services within the period from 2018 to 2025. These policies are expected to lead to a mature digitalization of the Malaysian market.
Shamim concludes: “The Malaysian information communication technology (ICT) market boasts of strong fundamental government policy, high-tech focused national development and availability of skilled workers, which has further contributed to the growth of the industry in the country. Additionally, the high levels of digital adoption and internet penetration will continue to drive the ICT market in Malaysia.”