NEWS: Keeping ICT on growth path

THE local ICT industry is, at best, expected to grow five per cent this year, down two points from last year. It’s a grim spectre of how things have gone from bad to worse for the industry following the global economic crisis. For an industry used to seeing double-digit growth over the last couple of years, it’s certainly not something to savour.
Tough times are certainly good times to take stock of what works and what doesn’t for the ICT industry. The EPF PC scheme, for example, could help stir the industry.
Tough times are certainly good times to take stock of what works and what doesn’t for the ICT industry. The EPF PC scheme, for example, could help stir the industry.

With ICT spending in major sectors giving way to other more pressing needs, many players are finding it hard to stay afloat. This is why the ICT fraternity is eagerly awaiting the second stimulus package, expected to be announced by the Government soon. There is much hope that this time around, the package will have a more direct impact on boosting the ICT industry.

So, the Government sector, which is one of the largest ICT spenders in the country, for example, should proceed with its ICT initiatives such as e-government and public sector computerisation, which are not only meant to boost operational efficiency within the agencies, but also improve the overall public service delivery.

Meanwhile, the consumer electronics market, which has been one of the more vibrant segments of the ICT industry, is also feeling the effects of the slowing economy. Although consumers have not abandon the market altogether, purchases of technology items such as PCs and related peripherals have dropped rather significantly over recent months. This has certainly caused some concern among industry representatives, which is calling for more concerted efforts to help weather the challenges.

The Association of the Computer and Multimedia Industry Malaysia (Pikom), for example, has called for the revival of the Employees Provident Fund (EPF) withdrawal scheme for PC purchases, which could help stir the industry.

For the record, the scheme got an encouraging response from the public before it was aborted in 2002 due to fraudulent withdrawals.

Pikom reckons that the scheme, if reintroduced,

could help generate sales of about 300,000 PCs a year, which would add about RM700 million to the ICT industry.

Also, the current scenario is a good time to look at addressing other issues which could indirectly help stimulate the ICT industry further. Boosting Internet and broadband adoption among the masses is one example. For this to be achieved, the relevant authorities need to ensure greater Internet penetration nationwide and more affordable services. The same goes with e-commerce, the adoption of which should be expanded to all business and home users.

Tough times are certainly good times to take stock of what works and what doesn’t for the ICT industry. This will not only help cushion the impact of the weak economy, but also position the industry on a stronger footing when the economy turns around.