The continuing growth of IT industry in Malaysia has been more and more prominent in Asia over the last few years as it newly creates over 98,000 jobs in more than 800 new IT companies in the country. Business Monitor International Organisation (BMI) expected a big growth in 2010, attributed to a pickup in business spending on hardware and applications. The market has strong growth fundamentals and key sectors will include government, telecoms and finance.
As BMI reported that Malaysian IT spending was expected to reach U$4.6bn in 2010 from US$4.1bn in 2009, as demand recovers from the impact of a difficult economic and political situation. The market has strong growth fundamentals, including low PC penetration, rising incomes and a hi-tech-focused national development plan.
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In the latest Malaysia Information technology Report, the computer sales in Malaysia has been forecasted that the addressable Malaysian computer hardware market, including notebooks and peripherals, would have a value of US$2.5bn in 2010, up from US$2.2bn in 2009.
The software Market was expected to grow up by US$756mn in 2010, following a deceleration in 2009 due to the global economic headwinds. By 2014, the software spending will be rising healthily to US$1.1bn, with software CAGR for 2010-2014 in the region of 11%.
While IT service spending, excluding telecommunications-related spending, was forecast to reach a value of US$1.4bn in 2010, with high single-digit growth compared with 2009. Spending on IT services was expected to be a relative bright spot for the IT market in 2010, remaining in positive growth territory. The government had accounted for about 15% of IT spending in recent years.
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