IDC Says Growth Is Still Expected In The Malaysia Commercial PC Market Despite Macroeconomic Pressures

Kuala Lumpur, September 26, 2008 – The Malaysian Client PC Market in Q2 2008 (April – June) grew 29% year–on-year in comparison to Q2 2007, driven mainly by an increased uptake in Portable PC sales from the consumer segment, which grew 59% year-on-year. There was also a 37% year-on-year growth in the home segment following the Malaysia PC Fair held in April. PC vendors, in their efforts to capture bigger consumer traction outside Klang Valley, concentrated on geographic expansion through participation at the PC Fair that was held in 14 locations, including key cities such as Taiping, Sandakan, Sibu, Miri and Manjung .

Malaysia PC Shipments Segment Breakdown for 2 nd Quarter of 2007 and 2008

Source: IDC, 2008

On the other hand, the commercial segment increased 20% year-on-year, thanks to the much anticipated completion of the final phase of the PPSMI project (Pengajaran Dan Pembelajaran Sains Dan Matematik) by the Ministry of Education in Q2 2008. This contributed to approximately 23,000 units giving rise to an impressive 110% growth year-on-year in the education sector. There was also strong demand from the SME and Enterprise sectors. On a negative note, the government segment plummeted 16% year on year, after the government implemented fiscal measures to cut public spending in order to save RM 2 billion (US$600 million) annually. This fund will be re-directed to infrastructure projects that were impacted by the fuel hikes, hence benefiting the entire nation.

In the recent Malaysian National Budget 2009 announcement, human capital development, instead of ICT infrastructure, was listed again as a top priority. However, this will indirectly encourage ICT adoption among Malaysians especially since the government has proposed to extend double tax deduction to employers who sponsor their employees to pursue postgraduate studies in areas such as ICT, electronics and life sciences. However, one of the Budget Highlights which will directly impact ICT spending is the availability of the Accelerated Capital Allowance to encourage SMEs to adopt ICT. Lastly, the government also encouraged a culture of corporate social responsibility (CSR) by granting tax deductions to private organizations involved in projects that preserve the environment, such as Green IT adoption.

According to Jaygan Fu Ponnudurai, Associate Analyst IDC Malaysia, “The current global economic slowdown, coupled with increase in fuel cost and the government’s move to cut spending, are telling times for the commercial PC market in Malaysia. However, ICT will continue to be the enabler in achieving business productivity and sustainability and this will help to drive growth in the commercial PC market."

For more information about this research, kindly contact Lizzie Shunmugam at +603-2169-7536 or eshunmugam@idc.com, or Belinda Yap at +603-2169-7521 or byap@idc.com.

-ENDS

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Contact

For press enquiries, please contact:

Belinda Yap
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Tel: +603 2169 7543
Email:byap@idc.com

Jaygan Fu Ponnudurai
Associate Analyst
Tel: +603 2169 7543
Email:jponnudurai@idc.com