Malaysia IT Spending Prospect 2006 - V4

Fresh from our discussion pertaining to Malaysia IT Spending Prospect 2006, where the following had been published..

Version 3
Version 2
Version 1

Now, with recent news about the government to review MSC incentives to make all MSC-status company more competitive in the run-up to 15th World Information Congress (WCIT) at Texas.

In other words, they are going to add more incentives for MSC-status companies such as:

1. More funds.
2. More scholarships.
3. Create a MSC-center at Sillicon Valley.
4. Provide incentives for marketing costs.
5. Provide incentives for travelling costs.
6. Provide incentives for licensed softwares.

Yahoo!, we await their good news.

However, this will build up more supply than demand. Thus, ICT spending is not really going to dip but the margin going to dip. And to worst things up, alamak (means OMG), Jeff Ooi hinted that Crude oil prices will hit USD 90 by end of 2006. When the government raised petrol prices with a 0.30 hike, crude oil prices leveled at USD 60. Many also predicted that Malaysia economy would be effected severely when it reaches USD 100.

So, for those ICT entrepreneur out there, your time is up, it is now(May 2006 to November 2006) or wait!

Second round recession is expected to hit by 2007 to 2008, based on the theory of 10 years economic cycle; since 1999 recession after the asian financial crisis. Things look pretty bad for years down the road.