Pikom had envisioned ICT growth for 2009 to be at 5%, compared with our forecast of 7% for 2008. This was a contrast to the double-digit growth achieved in 2007 and earlier.

We foresaw organisations, small and medium enterprises (SMEs) and consumers re-evaluating their ICT spending, which may have put the industry on a conservative path going forward into the year.

Having said that, the ICT industry in Malaysia has remained strong and vibrant throughout the year, unlike the electronic, manufacturing, construction and retail industries, which had been hit hard by a spate of problems in the face of the economic crisis.

Pikom had anticipated banking, government and telecommunications to lead in ICT investment and consumption activities for the year, given the liquidity flowing in from the Middle East to Malaysia’s Islamic banking financial services sector, which may have increased IT spending.

There’s also the rollout of high-speed broadband infrastructure as well as the rollout of WiMAX nationwide to achieve the targeted 50% broadband penetration of households by end-2010. The government’s investment in education and e-government projects would also boost spending in the public sector.

Overall, ICT is increasingly an enabler and a tool for increasing efficiency and effectiveness in societal and economic growth.
The RM60 billion stimulus plan announced by the prime minister early in the year provided a lifeline for the industry. It contained measures that tackled the key problems facing the economy — rising unemployment, difficulty in accessing funds by SMEs, a squeeze on corporate earnings and waning consumer confidence.

The financial crisis also saw the emergence of next-generation ICT solutions, such as Web 2.0, dot net, SAAS, cloud computing, open source solutions and e-commerce, which dominated the IT landscape in 2009. This has brought about greater virtualisation of business on the Internet and the development of content.

Outsourcing has also gained further inroads as more organisations decide to outsource operations. This could be seen with the emergence of Malaysia as a destination of choice for outsourcing activities. It was ranked consistently the third most attractive location by AT Kearney Survey. New outsourcing cities in India, the Philippines and China have also emerged to benefit from this trend.

Pikom applauds the government for its intention to make innovation the key driver for the economy. Budget 2010 saw the beginning of a new journey and a new economic model, with the aim of doubling the income of citizens over the next 10 years. Through ICT, innovation has become a key enabler of the economy and will continue to play an important role in many years to come.

Some of Pikom’s initiatives to generate demand in the ICT sector in 2009 were as follows.
1.    Submitted a proposal to relevant government agencies for the government’s second stimulus package to stimulate the ICT industry.
2.    Increased the pervasive use of ICT via Pikom National ICT Month 2009.
3.    Collaborated with government agencies like MDeC, MITI, EPU, MCMC and Mosti.
4.    Generated demand for the industry via regional business missions and export promotion activities.
5.    Set up five Pikom chapters nationwide.
6.    Had a strong focus on ICT policy, capability and research.
7.    Improved HR skill development through Pikom’s assessment for competency test (PAC).
8.    Expanded PC Fair coverage and increased the number of visitors.
9.    Conducted PC ownership programme through EPF funds.
10.    Conducted Projek Menguasai Aplikasi Internet dan PC (Projek M.A.IN PC).
11.    Hosted Asia-Pacific Outsourcing Summit via Outsourcing Malaysia initiative.

This article appeared in netv@lue2.0, the technology section of The Edge Malaysia, Issue 788 jan 11 - 17 2010