- 67 % of Malaysians are using internet.
 - More people are using mobile devices and social media.
- The mobile entertainment segment is the primary contributor of revenues growth.  - There is also a growing demand for digital media/e-commerce.

 Broadband IT

- Malaysia strives to promote itself as an IT hub in the Asia-Pacific region.
- Demand for broadband is increasing due to mobile technology. 
- Mobile broadband is popular due to the usage of smart phones.

 - In its efforts to become an industrialised nation by year 2020 and realising the importance of broadband, the government has devised a national broadband plan and invested in wireless networks to increase broadband access.

- This strategy will help to achieve the target as it will use a mixture of fixed, mobile and satellite technologies. This will lead to a large demand for telecommunication products and solutions including cloud computing.

 Cloud Computing and Data Centres

- It is an important part of most organisations. 
- IT strategy is one of the government’s top 10 strategic technology priorities in the government’s Economic Transformation Programme.

- Malaysia  is providing a base for cloud computing growth and IT security solutions. 

- According to Frost & Sullivan (2015) 33% of organisations consider cloud computing as their top priority and one-third of organisations in Malaysia are using some form of cloud computing. 

- The adoption of cloud computing offers multiple potential benefits.

- Tthere are also drawbacks regarding bandwidth consumption, lack of maturity of cloud environments, latency, data security and privacy guarantees from service providers.

 Financial IT

- Bank Negara Malaysia (BNM), the country’s central bank, is responsible for promoting monetary stability and smooth operations of national payment and settlement systems. 

- The introduction of the Tun Razak Exchange, formerly known as the Kuala Lumpur International Financial District, will house major international banks and financial services firms which is expected to draw local software investments that support the growth of industry-specific applications such as banking and customer services solutions. 

 Health IT                                             

- Healthcare expenditure in Malaysia is increasing rapidly. 

- The scale and scope of e-health in Malaysia shows potential in Internet-based health services. e-Health in Malaysia covers all forms of electronic health care delivered over the Internet. 

- The Malaysian government has committed funding to enable telemedicine and healthcare IT adoption feasible for the rapidly growing healthcare sector.

 IT Services

 - Malaysia’s IT services spending is forecasted to grow 9.5 per cent over 2016-2020 and reach A$3.3 billion by 2020 (Business Monitor International 2016). 

- The Malaysia IT market is one of the most developed markets in the Southeast Asian region. 

- Malaysia is generally viewed in a positive light for its competitive position, which has attracted several reputable multinational corporations and service providers. 

- IT can account for as much as 70% of company IT budgets, according to Business Monitor International (2016).

 - Strong domestic demand for outsourcing services and intense competition from India and China, the government has been supportive in developing Malaysia into a competitive location through various incentive programs aimed at upskilling the local workforce to create a ready IT services talent pool.

- World-class companies such as DHL, HSBC, IBM, Intel, Motorola, Nokia, Shell, Unisys and others have set up their base of regional and global operations in Malaysia.                                                                                                                                      High internet penetration rate stimulates online travel

- The internet penetration rate in Malaysia exceeded 60% of the overall population in 2014, with the broadband penetration rate reaching 67%. 

- This has enabled travellers to reach out to consumers easily through the internet. 

- Online travel is becoming an important trend spanning across categories like airlines, lodging and intermediaries. 

- Airasia, Agoda.com and Expedia.com also have a high percentage of online sales in 2014.

- Car rental is following the trend also.

 
 

Industry Overview | 13 Oct 2015

-In 2014, Malaysia was haunted by several major air disasters.

- In March 2014, the Beijing-bound flight MH370 went missing less than an hour after departure
- In July 2014, a Malaysia Airlines-operated plane MH17 bound for Kuala Lumpur from Amsterdam was shot down over Ukraine airspace by a missile.
 
At the end of the year, Air Asia flight QZ8501 crashed into the Java Sea during bad weather.

 All these major airline disasters affected consumer confidence in airline safety and the performance of the different categories in travel in 2014, with airlines being affected significantly by demonstrating only 4% value growth.

-

One factor that could tilt the balance for a snap poll is the fractured opposition, which lost this year in two by-elections and in the Sarawak state elections.

But some analysts say weakening growth and the spotlight of global probes into billions allegedly embezzled from state investment company 1Malaysia Development Bhd are reasons for Najib to delay.

“Ideally, they would want to hold elections when people feel they are materially better off,” Sholto Byrnes, a senior fellow at the Institute of Strategic and International Studies Malaysia, was quoted as saying.

“Having it at a time when oil and commodity prices are so low, when there’s been a lot of fluctuation in the ringgit, negative talk about the economy — I would feel from those points of view, it’s a riskier time to hold elections sooner.”

Ooi Kee Beng, the deputy director of the ISEAS-Yusof Ishak Institute in Singapore, was quoted as saying: “Given how pressurised Najib is by events and by the scandals surrounding him, the need to strategise instead of wait is great. It should not surprise anyone that elections are called sometime next year.”

The BN may also want to tap the mood of patriotism as Malaysia commemorates its 60th year of independence next year. In Singapore, Bloomberg said, the ruling party retained power with a bigger majority in 2015 amid massive festivities for its 50th anniversary.

For the last election in May 2013, Najib waited until the last minute to dissolve parliament, after two years of hints, Bloomberg noted.

As he vacillated, the opposition grew stronger, giving the BN its worst result in more than five decades in power, including its first-ever loss of the popular vote.

The tables, said the report, had since turned. Infighting and policy differences have torn the opposition alliance apart, while the BN secured bigger wins in the Sarawak state polls in May and two by-elections in June.

And this happened while Najib was battling graft allegations and efforts by former prime minister Dr Mahathir Mohamad to remove him.

The report noted that there were tentative signs the opposition was attempting to unify, and that Najib might not want to wait for them to try.

Najib’s office didn’t reply to a request for comments on the possibility of an early vote, while an Umno spokesman wouldn’t elaborate on the speculation, Bloomberg said.