Information and Communication Technology

 

Malaysia

Overview                                        

 

                                                  2004            2005             2006 (estimates)

Total Market Size                      1465             1485             1500

Total Local Production             14200           20200           20500

Total Exports                           24507           31527           32000

Total Imports                           11772           12812           13000

            *Unofficial estimates generated by the Commercial Service in Kuala Lumpur

            Figures given in U.S. dollars in millions.  Exchange rate: U.S. $1= RM 3.66 (Ringgit Malaysia)

 

·           As of September 2006, Malaysia’s broadband penetration rate stood at 2.8% out of 26 million population. Year-on-year comparison, there is over 70% increase in broadband subscribers. Internet dial-up penetration rate for the same duration is 14%.

 

·            Twenty-two million people in Malaysia use cellular services, of which 85% are pre-paid users. Fixed-line/ wire-line telephony penetration is on the decline. From a high of 19.7 per 100 inhabitants in 1998, 2006 Q3 penetration rate is at 16.2 per 100 inhabitants.   

 

·            Technologies adopted for broadband access are: ADSL, SDSL, wireless LAN, satellite and others. Year-on-year, there is 40% increase in ADSL adoption; 22% increase for SDSL, 47% for wireless, and a marked 440% increase of satellite, wireless LAN and other technologies.

 

·           Mobile players are entering a new phase of market dynamics. Market maturity is forcing carriers to reposition and further differentiate themselves. Constant first-to-market introduction of new mobile solutions and faster mobile broadband speed are some of the differentiation methods to increase user base and Average Revenue Per User. Cellular content and value added services are key growth area.

 

·           Urban cities encompassing Metropolitan Kuala Lumpur and various state capitals are key demand areas for Internet access and cellular services.

 

Best Products/Services                                                                    

 

·            Broadband best prospects are: WiMAX, VoIP, IP based, satellite point-to-point, and last mile access technologies. These technologies are tagged to overcome the last mile access hurdle in Malaysia.

 

·           Overall, the ICT sector continues to be a key growth area for the next few years.  Future export growth opportunities are primarily in wireless telecommunications.

 

Opportunities                                                                           

 

·           Telcos in Malaysia are planning on implementing WiMAX to assuage pent-up market demand. Base stations and wireless access controllers are some of the equipment needed for implementing wireless Internet access.

 

·            Although the public sector will be the main driver for broadband usage, private sector and residential consumers demand are increasing. Education institutions, healthcare facilities and public administration will take lead for the public sector. The ministry of defense, justice and the central/federal government are following close behind.

 

·            Malaysia’s Broadband Plan has targeted 10% broadband penetration by 2008.

 

 

Resources                                                                                         

 

ASEAN Communications & Multimedia Expo 2007: www.ambexpo.com.my

Commercial Service Webcast on ICT sector: www.buyusa.gov/malaysia

Malaysian Communications and Multimedia Commission: www.mcmc.gov.my

Ministry of Energy, Water and Communications: www.ktkm.gov.my

Malaysian Energy Commission: www.st.gov.my

SIRIM Bhd: www.sirim.my

For more information contact Commercial Specialist Tracy Yeoh.