GLOBAL markets entered into a flux when the US government’s initial US$700bil bailout proposal last week did not materialise.
While many are hoping that a new revised bailout plan will be approved by the US soon, Deputy Prime Minister and Finance Minister Datuk Seri Najib Razak has assured that Malaysia’s economic fundamentals are still strong, underpinned by ample liquidity in the banking system, high international reserves and growing intra-regional trade links.
It is also worth noting that not all sectors are necessarily being curtailed by the impact of the financial crunch in the US.
The Asian Banker reported last week that financial institutions’ spending on information technology (IT) for transaction banking was expected to remain robust, as they still see technology as a vital component to their operations.
It said areas such as data and risk management could see a boost in take up due to the financial crisis and consolidation taking place in the banking industry.
Association of the Computer and Multimedia Industry (Pikom) chairman David Wong said local information and communications technology (ICT) spending, which stood at about RM40bil in 2007, was expected to grow 8% this year.
This would be bolstered by the major ICT spenders in the oil and gas, telecommunications, banking and finance, Government, transport and consumer sectors, he said.
“In view of the current situation, it is even more crucial for businesses to look to ICT because of its productivity-enhancing nature. ICT has greatly benefited the transport, healthcare, finance and services sectors,” he told StarBiz.
Mesdaq-listed firms like My E.G. Services Bhd and TechnoDex Bhd view the current business climate with optimism as their offerings are designed to help organisations reduce costs while improving efficiency and service delivery.
My E.G. executive director Raja Munir Shah Raja Mustapha said the company’s BOO (build-operate-own) model was not impacted by fluctuations in economic cycles.
“The Government is committed to improving the public sector delivery system by leveraging on IT systems and changes to business processes.
“Malaysians, in an increasingly time-pressed environment, will certainly appreciate the convenience of undertaking Government-related transactions at the time and place suitable to them rather than be confined to the usual working or over-the-counter hours,” he said.
My E.G. is currently focusing its research and development efforts on new services such as online booking of the Road Transport Department’s driving test, online checking of Kejara demerit points and also online motor vehicle registration and electronic application of vehicle registration numbers.
TechnoDex chief operating officer Heng Ling Jy said open-source software (OSS) applications were expected to continue charting growth as businesses shift from the traditional licensing model of proprietary IT systems.
She said organisations were looking to reduce the total cost of ownership of their IT systems without sacrificing operational efficiency and effectiveness.
“OSS solutions would naturally benefit from the current economic situation by providing a cost-effective alternative to enterprises. We do see more demand (for OSS solutions) in the dampening economic situation,” she said.
She added that the company was seeing increased demand for business intelligence tools and office streamlining solutions, especially in paperless operations (e-documentation) which she believes will be an area of growth in the next few years.
Multimedia Development Corp Sdn Bhd industry development division business and market development head Rob Cayzer also opined that the recessionary pressures on the US might result in accelerating offshoring of services where MSC Malaysia would be an immediate benefactor.
“The Malaysian outsourcing industry is experiencing accelerated growth and the overall prospects remain strong as these firms tend to serve the Asian and global markets,” he said.
Cayzer said a panel of top companies at the recent MSC Malaysia €“ Pikom Export Promotion Forum highlighted that “this was the time for the Malaysian ICT industry to strike out in the international markets”.
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