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IDC: Malaysian PC market tipped to grow despite global turmoil

AvantiKumar | Sept. 29, 2008
ICT to drive productivity and sustainability

KUALA LUMPUR, 29 SEPTEMBER 2008 - Analyst firm IDC Malaysia still expects growth in Malaysia's commercial PC market, despite the worsening global economy.

According to IDC's associate analyst, Jaygan Fu Ponnudurai: The current global economic slowdown, coupled with increase in fuel cost and the government's move to cut spending, are telling times for the commercial PC market in Malaysia, said Ponnudurai. However, ICT will continue to be the enabler in achieving business productivity and sustainability and this will help to drive growth in the commercial PC market."

Laptops drive consumer segment

Ponnudurai said that the Malaysian client PC market in the second quarter of 2008 (April June) grew 29 per cent year-on-year in comparison to the same period in 2007. This was driven mainly by an increased uptake in portable PC sales in the consumer segment. This had grown 50 per cent year-on-year.

In addition, he said there was a 37 per cent year-on-year growth in the home segment following the Malaysia PC Fair held in April. PC vendors, in their efforts to capture bigger consumer traction outside Clang Valley, concentrated on geographic expansion through participation at the event.

Ministry project powers commercial sales segment

Ponnudurai admitted that the commercial segment also experienced an increase of 20 per cent, year-on-year, due to the much-anticipated completion of the final phase of the PPSMI project (Pengajaran Dan Pembelajaran Sains Dan Matematik) by the Ministry of  Education  in the second quarter of 2008.

This contributed to approximately 23,000 units giving rise to an impressive 110 per cent growth, year-on-year, in the education sector. There was also strong demand from the SME and Enterprise sectors.

However, he said that the government segment plummeted 16 per cent year on year, after  the government implemented fiscal measures to cut public spending in order to save  RM2 billion (US$600 million) annually.

National Budget 2009: HR focus will help

Ponnudurai noted that human capital development, instead of ICT infrastructure, was listed again as a top priority in the National Budget 2009 proposals. However, this will indirectly encourage ICT adoption among Malaysians especially since the government has proposed to extend double tax deduction to employers who sponsor their employees to pursue postgraduate studies in areas such as ICT, electronics and life sciences.

In addition, the Budget proposals that will directly impact ICT spending is the availability of the Accelerated Capital Allowance to encourage small and medium enterprises (SMEs) to adopt ICT.


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