Malaysia IT spending prospect 2006 - v1

With introduction of 9th Malaysian Plan on March 2006 earlier, many industrial players were positive about making impacts to the society.

Either the government has real money or not, we can't be too sure. But it will be certain that government projects will be awarded and money from the central fund will be liquidated over the next five years. So, wealth are up for grap!

It is quite amazing that many good news from within the Malaysian context emerged. In fact it couldn't be too wrong that every major industry player was waiting for years to the good news of th 9th Malaysian Plan. The irony of all these is that you might have to wait for the next five years if you haven't been prepared to take up instance opportunities!

Can we assume that the central bank also was energized by similar trend ? For raising interest rates to 3.5% yesterday. This is seen by many as within expectations because the prospect for the country is rosy for the coming months. Industrial analyst predicted that interest rates could hit 4% by year end 2006, putting inflationary pressure to a lose valve.

To my understanding, the good news would be that entities would be expected to have windfall of 0.5% when year end comes. Thus, even though the hike of interest rates encourages saving, it also prompted business entities to increase banking transactions because they are assured with higher saving interest rates with a bonus of 0.5% by year end. Therefore, IT spending within Malaysia context would be increased by 0.5% from now till year end.

Let's see how the development goes, I hope to give you more micro-analysis when more news surface in the future.