Pikom unveils 5yr plan, says ICT industry to hit RM95bil by 2017
By A. Asohan February 8, 2013
- 6 key thrusts will determine programs Pikom runs over next 5yrs
- Ultimate aim is to develop world-class Malaysian ICT players
THE national ICT association Pikom has unveiled a five-year strategic direction which ultimately aims to create world-class Malaysian players and projects annual industry revenue based on transactions to hit RM95 billion (US$31 billion) by 2017.
That projection is based on a conservative CAGR (compounded annual growth rate) of 10%, Pikom president Shaifubahrim Saleh (pic) told reporters at a media briefing on Feb 7, adding that other estimates had CAGRs ranging from 11% to 12%.
“We could also hit RM100 billion in revenue by 2017,” he said, adding that the association estimates total ICT revenue in Malaysia for 2012 to have been RM57 billion (US$18.4 billion), up from nearly RM52 billion (US$16.8 billion) the year before.
Based on the 10% estimate, the industry would continue to contribute about 15% of the country Gross Domestic Product (GDP), Shaifubahrim said, adding that the association is aspiring to hit the higher end of the projections so that the industry would contribute up to 20% of the GDP.
However, Pikom chairman and executive director Woon Tai Hai noted that the association has no control over external factors, adding that in its previous five-year plan which ended in 2012, it had targeted RM80 billion in revenue before the global economic crisis struck, slowing down ICT purchases and trade.
“It was the one area in which we had failed to deliver in our last five-year plan,” he acknowledged, as the association, which boasts more than 1,500 members commanding about 80% of the total ICT trade in the country, unveiled a five strategic direction to take it until 2017.
The new five-year strategic direction was finalized in a recent two-day offshore planning session by the association’s council, and would be supported by six key thrusts, Woon (pic) said.
“At this brainstorming session, we looked at Pikom’s core values – Passion, Integrity, Knowledge driven, Ownership and Members-focused – and decided this would remain,” he said, adding that these also informed the six key thrusts.
“The six key thrusts are important because they will determine the kinds of programs and activities we run over the next five years,” he said.
The six are:
- Globalize the Malaysian ICT industry;
- Increase the competitiveness of the ICT industry here;
- Promote human capital development;
- Lead the digital trend;
- Enhance value to members; and
- Accelerate the growth of Malaysian ICT demand.
“Our priority for this year would be key thrusts 5, 3 and 2,” said Shaifubahrim, saying that the association would enhance its value to members by providing access to research and market data, such as its annual ICT Strategic Review report and salary survey, which would also contribute to the second thrust to increase competitiveness.
Pikom also intends to help members get access to capital through its Angel Investors Chapter, and will continue to work on pitching sessions to put members in touch with angels and venture capitalists. It also works closely with the Malaysian Business Angels Network launched last December and would conduct more programs with the Malaysian Venture Capital and Private Equity Association or MVCA.
The association also launched the first issue of Inbox, a quarterly newsletter to keep its members informed of industry developments, technology trends and business issues, as well as its own activities.
As for human capital development, both Shaifubahrim and Woon lamented the plunging number of Malaysians pursuing computer science degrees or related ICT courses, saying it was alarming.
According to government statistics, there were over 119,000 students enrolled in ICT courses and 53,000 graduates produced in 2002; by 2007, the numbers had dropped to 80,000 students and 19,500 graduates.
Adding to the problem was the brain drain. “The biggest issue is that this is not just about the ICT industry but the nation itself,” said Woon. “We keep losing talent because other countries just pay better.”
Pikom has raised the issue itself in many dialogues with various government bodies. “We know the curriculum needs to be looked at,” he added. “Whether Pikom can influence such policy decisions would be a major challenge, but we will continue making our voice heard.”
In the meantime, the association would continue to work with bodies such as the National ICT Human Resource Task Force, and run its own programs such as the recently-announced Project Management Certification Program.