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MALAYSIA
INTERNET COUNTRY REPORT 4TH MARCH 2002 QSNCC,
BANGKOK PRESENTATION BY PIKOM Association of
the Computer and Multimedia Industry of Malaysia
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MALAYSIA
TOTAL POPULATION 23.7 MILLION AGE DISTRIBUTION 15 YEARS - 34 15-65 YEARS - 62 65 YEARS -
4 URBAN POPULATION - 57
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Malaysias IT Industry Billing(Estimated)
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Malaysian IT Expenditure byIndustry Sector (2001)
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Malaysias Internet Population
Over 29,000 domain names registered with MYNIC -
90 for the .com domains.
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MAIN USE OF THE INTERNET

• About 25 of the population are internet users.
  However, much is confined to
• - E-MAIL
• - WWW
• Emerging E-COMMERCE Transactions. Very much in
  infancy

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BROADBAND

• MOSTLY CORPORATE USERS
• SLOW TO TAKE OFF DUE TO - LACK OF OPTIONS -
  ROLL OUT OF DSL HAS BEEN SLOW
• AVAILABILITY OF DSL CONFINED TO MAJOR CITIES
• PRICING AN ISSUE COST A DETERRENT

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ISPs
MAJOR ISPs TM NET- 56.4 JARING - 30 TIME DOT
NET - 7 MAXIS NET - 5.6 Many smaller ISPs that
offer niche and value-added services. At least
another 30 other ISPs though some are not active.
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NETWORK DEVELOPMENT

• Most parts of the countries covered
• Pops available in major towns all over Malaysia
• Main traffic - corridor linking Penang, KL JB
  (west coast of Peninsular Malaysia)

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FIXED LINES VS CELLULAR

• As at Sept 2001
• 4.7 million fixed lines subscribers - Telekom
  Malaysia as incumbent has 96 market share for
  fixed line
• 7.1 million cellular
• -60 market shared by Maxis and Celcom for
  cellular

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Fixed and Cellular
In the year 2000, the number of cellular
subscribers exceeded fixed line subscribers
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2.5G 3G

• MAJOR TELCOS ARE OFFERING 2.5G ON A SMALL SCALE
  
• 3G LICENSING PLAN AVAILABLE FROM THE REGULATOR.
  TENDER PROCESS TO START SOON WITH LICENSES TO BE
  AWARDED BY AUGUST 2002.
• 3 FREQUENCY BANDS WILL BE MADE AVAILABLE FOR
  TENDER.
• PILOT SERVICE EXPECTED BY END 2002 OR EARLY
  2003.

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WIRELESS LAN

• MORE USAGE BY CORPORATES FOR OBVIOUS REASONS -
  EASIER TO SET UP AND MAINTAIN
• COMPLEMENT EXISTING WIRED LAN
• Eg. Some HOTELS QUICK TO ADAPT TO CATER TO
  CUSTOMERS NEEDS

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VOIP

• LIBERALISED MARKET - NEW ENTRANTS
• NO OF VOIP PROVIDERS - 52 companies have been
  licensed by the Malaysian Communications and
  Multimedia Commission. Gaining popularity in the
  corporate sector.

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Electronic Government

• 7 KEY PROJECTS
• E-SERVICES - Transport Registration, Utility
  Payments And Health Information
• E-Procurement for public service
• Generic Office Environment
• Human Resource MIS
• Electronic Labour Exchange
• Project Monitoring System
• EG integration with legacy systems

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Electronic Government Model
Source www.mampu.gov.my/EG/EG_Vision.htm
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E-COMMERCE

• B2C
• Banking - all major banks provide internet
  banking services or at least embarking on
  e-banking services
• Travel, gifts, flowers, books
• Substantial amount still to overseas sites

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E-COMMERCE

• B2B
• MNCs and large manufacturers are requiring
  local suppliers and customers to be web-enabled.
  Provides an impetus for local SMEs to be
  ICT/internet competent.

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DIGITAL DIVIDE

• Malaysian govt has set aside budget allocation
  for ICT initiatives in the rural areas, eg.
  internet desa
• Other incentives include tax deduction for
  purchase of computers

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CHALLENGES

• The shortage of ICT personnel in key areas -
  govt, manufacturing. Trend towards outsourcing
• Development of local content - the need for
  local applications and services for e-commerce to
  take off.

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CHALLENGES

• Cont
• Bottlenecks in the internet infrastructure -
  facilities providers need to expand network in
  tandem with the growth of internet usage
• Security - major concern of internet users.
  Govt has set up NISER - to coordinate ICT and
  internet security initiatives and responses

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OTHER ISSUES

• Registrar of domain names. Liberalise?
• Multilingual domain names - not much interest
• Need for vibrant internet community with
  interest in ICT policies

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About PIKOM

• Established in 1986 to represent the ICT industry
  in Malaysia
• Mission To serve our members and promote
  industry growth in line with national
  aspirations
• 370 members to-date
• Membership commands about 80 of the ICT business
  in Malaysia

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About PIKOM
Some activities we have organised-
CEO Cocktail
PIKOM Industry Forum
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THANK YOU