PIKOM revises 2014 ICT market spend upwards

KUALA LUMPUR: The information and communication technology (ICT) market, which is on track to achieve RM95 billion revenue by 2017, is expected to see a market spend of 13% by year-end, said The National ICT Association of Malaysia, PIKOM.
Its chairman Cheah Kok Hoong said the estimated 13% growth in ICT market spending is an upward revision by PIKOM from 10% to 12% forecasted earlier this year, as preparation for the implementation of the Goods and Services Tax (GST) has resulted in some companies experiencing market share growth this year.
"The momentum of ICT adoption is picking up especially with the imminent implementation of GST and also the Economic Transformation Programme. The Malaysian ICT market is growing in line to achieve the set target of RM95 billion revenue by 2017 and the ICT market spending is poised for a double digit growth for 2014 taking into account the healthy first half gross domestic product growth for 2014.
"From the industry perspective, it (GST) is positive news. As a result of the GST implementation, quite a number of our members, the software members, application providers, they've been requested to do customisation and changes as a response to the government's requirement for GST implementation," he told reporters at the 6th PIKOM Leadership Summit yesterday.
He said the segments that would contribute to the RM95 billion revenue target include hardware, software licences, mobile devices, Telco and services, with Telcos and IT services playing prominent roles in the industry's growth.
Cheah said PIKOM had also submitted its Budget 2015 recommendation for the ICT industry to the Finance Ministry two months ago and has proposed for the exemption of ICT products from GST.
"We are proposing to remain status quo, which is not to impose GST on ICT gadgets such as smartphones, handsets or software," he said.
"Overall, we would expect optimism from the government side, to continue to encourage GST. Perhaps for the last quarter (before GST), January, February and March 2015 the last period of compliance and readiness, we still hope the government can have some good subsidy," he added.
The 6th PIKOM Leadership Summit yesterday saw 250 participants sharing thoughts on various business-ICT related issues and discuss the emerging industry trends and market challenges.
PIKOM also released its annual ICT Strategic Review for 2014/2015. According to the review, the Internet of Things trend will be the next significant revenue stream driver for the ICT industry while the advents of Big Data, Cloud and Social Business are expected to transform the industry.