NEWS: Pikom fancies an ICT Ministry

The Star

By STEVEN PATRICK

PETALING JAYA: The country needs an ICT (information and communications technology) Ministry, said the Association of the Computer and Multimedia Industry of Malaysia.

The association, better known as Pikom, said a ministry dedicated to spearheading the nation’s ICT sector would streamline many processes, helping to fast track the sector.

Pikom chairman David Wong said industry players currently have to deal with three ministries – Energy, Water and Communications; Science, Technology and Innovation; and International Trade and Industry.

The convergence of many technologies over the past eight years has resulted in local ICT companies also having to interact more frequently with the various government agencies.

“It would be a lot simpler if everything is under one roof,” Wong said. “It would also make it easier for such a ministry to plan strategies and execute its programmes.”

He was speaking to In.Tech on Tuesday, shortly after Prime Minister Datuk Seri Abdullah Ahmad Badawi announced the new Cabinet line-up. Pikom’s hope for an ICT Ministry was not realised.

“It would have been nice if it was,” said Wong, adding that a single point of contact for ICT industry players would help quicken bureaucratic processes, save costs, and increase efficiency.

“These are pro-investor conditions that are likely to increase foreign direct investment in Malaysia,” he added.

According to Pikom, several other countries like China, India, South Korea, Thailand and Indonesia have realised the strategic importance of their ICT industries and have formed ICT ministries.

“The pace abroad has gone up a beat and we must catch up,” Wong said.

Malaysia aims to become a net ICT exporter over the next five years. The sector contributes 7% of the nation’s Gross Domestic Product and this is expected to increase to 10% in that period.

Pikom estimates that the ICT sector will rake in RM44.8bil this year, compared to RM40bil last year. One area of growth would be in shared services outsourcing (SSO) for the promising banking and transportation markets.

It noted that research company IDC has reported that the SSO segment is expected to grow by 22.5% over the next five years – making this potentially one of the fastest growing segments of the ICT industry.

“Our view is that the ICT sector continues to be a pivotal force in building Malaysia’s economy,” said Wong. “The nation’s prosperity is linked to value-added industry initiatives and productivity gains.”

About 660 ICT companies are members of Pikom and they represent more than 80% of the total ICT trade in the country.

The newly appointed Energy, Water and Communications Minister is Datuk Shaziman Abu Mansor, Datuk Dr Maximus Ongkili is Science, Technology and Innovation Minister, and Tan Sri Muhyiddin Yassin is International Trade and Industry Minister.