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NEWS UPDATES Asean Affairs        15 January 2011

IT Spending In Malaysia To Grow

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Total IT spending in Malaysia is to grow by 9 percent to US$6.5 billion this year compared to US$5.9 billion last year due to growing confidence in the local economy.

Total spending for telecommunications in Malaysia is expected to grow by 5.3 per- cent, hitting US$7.3 billion this year from last year, said International Data Corporation (IDC) in a statement today.

Roger Ling, research manager for software research at IDC Asean, said IDC expects more changes in the Malaysian information and communications technology (ICT) market, allowing for growth capitalisation moving into 2011.

Ling said IT spending growth is expected to be driven by factors such as the government's continued efforts to raise broadband penetration level.

This includes outsourcing initiatives by organisations looking to address increased IT complexity and continued adoption of system infrastructure software for operations and management of computing infrastructure resources.

The latter is a key element of IT infrastructure deployment and operations.

"IDC expects to see further growth in telecommunications spending for Malaysia this year but expects to see a 3.2 per cent decline in fixed voice compared to last year," it said.

IDC said fixed data will take the lead with an estimated 12.7 per cent growth from last year followed by wireless data and wireless voice.

It also expects the success of the Apple iPad in the global market to trigger similar trends in Malaysia.

The local market is expected to experience significant boom in the tablet market for this year as consumer feedback and reception for iPad have been overwhelmingly positive so far and will likely carry on this year.

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