Mission Statement
Information And Communication Technologies Trade Mission
Malaysia, Singapore, and Thailand
March 15-March 23, 2004

Mission Description:

The U.S. Department of Commerce, International Trade Administration, U.S. Commercial Service, Office of Export Promotion Services, is organizing an Information and Communication Technologies (ICT) Trade Mission to Malaysia, Singapore, and Thailand, March 15-March 23, 2004. The mission will target companies in all sectors of the ICT industry. The delegation participants will be matched with qualified agents, distributors, representatives, licensees, and joint venture partners in these markets.

Commercial Setting:

Singapore

Singapore's telecom services market is set to cross $3.8 billion in end-user spending in 2003, up 11 per cent over 2002. Singapore has one of the most advanced info-communications infrastructures in the world. This has been possible due to the small size of the country, the high national income, and the government’s commitment to develop the country into a premier telecommunications and broadcasting hub in the region. Virtually every home in Singapore has a fixed telephone line. Mobile phone penetration reached an all-time high of 79.7 percent in May 2003, with more than 3.3 million mobile subscribers in a country with a population of only four million. There are more than two million Internet subscribers in Singapore and every school and every public library is equipped with PCs with broadband access.

The Singapore telecommunication industry was liberalized in April 2000 and the move increased competition for existing players and provided opportunities for many new market entrants. There are excellent opportunities to sell new applications and solutions to Singapore, as it is a leading adopter of such technologies in the region. Areas of best prospects include broadband services, Internet protocol virtual private network, wireless communications and security technologies. With its high mobile phone penetration rate, Singapore is an ideal test bed for the development and launch of new wireless applications, products and services. Three mobile operators in Singapore are expected to roll out their 3G services nationwide by end 2004. The building of the 3G networks is expected to cost US$600 million.

Malaysia

The ICT market in 2002 was estimated at $1.86 billion and is expected to grow 10 percent in 2003 to $2.1 billion. The Malaysian ICT market is import oriented and reliant on foreign technologies. Currently, the U.S. dominates the Malaysian software and hardware markets, and should continue to do so for the next 5-10 years. With the Malaysian Communications and Multimedia Commission (MCMC) acting as the regulatory force behind a 2001 initiative called the Malaysian 8th Plan, the Malaysian ICT market should continue to grow. The MCMC has been given the task of establishing the Framework for Industry Development, which will focus on five main challenges. To achieve its goals, Malaysia will need to continue to rely heavily on ICT imports. These goals include continuing to upgrade networking capabilities; improving service quality and choice of service; building capacity; and managing resources efficiently. Best prospects for Malaysia include 3G, Wireless LAN, and Digital Terrestrial Television Broadcasting Technology.

Thailand

Thailand’s ICT market in 2003 is about $1.4 billion and is expected to grow 12-15 percent over the near term. Fast-changing technology, competitive prices and the entry of new strong financial players have intensified the competition in Thailand’s telecommunications market. The growth rate of fixed line telephones is relatively slow at 5-7 percent due to high acquisition costs. On the other hand, the mobile phone growth rate is incredible. The penetration rate expanded from 18 percent in early 2002 to 22 percent, or 18.5 million subscribers, at the end of the year. Monthly fee cutting and value-added services such as higher data speed technologies, multimedia capabilities and short-message-services are the most important of today’s sales strategies. Even though Thailand is somewhat behind in implementing new technologies, the country has followed developed market trends on wireless technologies from analog to digital, then WAP to broadband.

Thailand’s Internet usage has grown tremendously, by approximately 20-30 percent, year-on-year, with 3.5 million users at the end of 2002. Wireless Hot Spots are a new trend and are increasingly being deployed in business areas, commercial buildings, shopping malls, and airports. Although the opportunity for ICT equipment and services shows solid growth, the barrier for new entrants is the delay in the establishment of independent regulators in the form of a National Telecommunication Commission (NTC) and National Broadcasting Commission (NBC), as licensing and spectrum allocation is on hold until this is completed. Once established, however, these two agencies will play an important role in Thailand’s communication and broadcasting sector.

Best prospects for Thailand’s ICT market include 2.5-3G services, high-speed Internet, wireless hot spots, e-procurement, e-government, and e-education systems.

Mission Goals:

The Trade Mission’s goal is to gain first-hand market information and provide access to key government officials and potential business partners for new-to-market, and/or new-to-export U.S. ITC firms desiring to enter these Asian Markets.

Mission Scenario:

Participants will spend approximately two days in each country. At each stop, the Commercial Service will provide an extensive market briefing, highlighting opportunities in ICT and recent policy developments; schedule one-on-one appointments with potential business partners for each participant; and arrange a reception to introduce the participants to key business and government officials.

Timetable:

Sunday, March 14 Arrive in Singapore, Singapore
Monday, March 15 Market Briefing and Trade Mission Meetings
Tuesday, March 16 Trade Mission Meetings
Wednesday, March 17 Arrive in Kuala Lumpur, Malaysia, Market Briefing and Meetings
Thursday, March 18 Trade Mission Meetings
Friday, March 19 Trade Mission Meetings in the Morning
Saturday, March 20 Free
Sunday, March 21 Arrive Bangkok, Thailand
Monday March 22 Trade Mission Meetings
Tuesday March 23 Trade Mission Meetings, Conclusion of Trade Mission Criteria for Participation:

• Relevance of the company’s business line to mission goals;
• Potential for business in the selected markets;
• Timeliness of the company’s completed application and payment of the mission participation fee;
• Provision of adequate information on the company’s products and/or services and communication of the company’s primary objectives to facilitate appropriate matching with potential business partners;
• Certification that the company meets Departmental guidelines for participation including certification that the company’s products and/or services are manufactured or produced in the United States or if manufactured/produced outside of the United States, the product/service must be marketed under the name of the U.S. firm and have U.S. content of at least fifty-one percent of the value of the finished good or service.

The mission will be promoted through the following venues: the Export Assistance Centers and Teams; the Federal Register; relevant trade publications; relevant trade associations; past Commerce trade mission participants; various in-house and purchased industry lists; and on the Commerce Department trade missions calendar – www.ita.doc.gov/doctm/tmcal.html - and other Internet websites.

Any partisan political activities of an applicant, including political contributions, will be entirely irrelevant to the selection process. The participation fee will be between $3,000-3,500 for the trade mission. Participation fees do not include the cost of travel and lodging. Participation is open to the first 10 qualified U.S. companies. Recruitment will begin immediately and will close on Friday January 30, 2004. Applications received after that date will be considered only if space and scheduling constraints permit.

Contact Information:

Matthew H. Wright
International Trade Specialist
Export Promotion Services
U.S. Department of Commerce, Room 2002
Washington, D.C. 20230
Tel: 202-482-2567 Fax: 202-482-0178
Email: Matthew.Wright@mail.doc.gov