Tech spending in Malaysia set to surpass $25B by 2023
The technology market in Malaysia is forecast to reach US$25.2 billion by 2023, driven by increased demand for client computing and cloud solutions.
Representing a compound annual growth rate (CAGR) of 8.9 per cent between 2019 and 2023, the industry is expected to invest almost $10 billion more in technology solutions and services during the next four years, after reaching $16.5 billion in 2018.
According to GlobalData findings, mobility, cloud, data analytics, storage and business process outsourcing represent the five leading IT solutions in terms of market growth rate. Mobility is widely expected to record the highest CAGR of 21 per cent during the forecast period.
“The Malaysian Government’s initiative to create a hub for innovative producers and users of multimedia technology with Mandatory Standard for Access Pricing (MSAP) is paving the way for the availability of affordable high-speed Internet services and for the emergence of a mature telecommunications infrastructure in the country,” said Shamim Khan, senior technology analyst at GlobalData.
“As a result, Malaysia is set to witness a relatively high broadband penetration as compared to other peer Asian countries.”
As explained by Khan, manufacturing in Malaysia continues to represent the most significant sector from a revenue perspective, and is expected to contribute 18.6 per cent of total technology revenue by 2023.
Such growth has been further aided by government-enacted policies such as Industry4WRD, added Khan, a national initiative which aims to transform the manufacturing sector and related services up until 2025. For Khan, these policies are expected to lead to a “mature digitalisation” of the Malaysian market.
“The Malaysian ICT market boasts of strong fundamental government policy, high-tech focused national development and availability of skilled workers, which has further contributed to the growth of the industry in the country,” Khan added. “Additionally, the high levels of digital adoption and internet penetration will continue to drive the ICT market in Malaysia.”