Malaysia IT Spending Prospect 2006 - v6

Microsoft on IT Spending Growth:

First of all, Microsoft mentioned that IT spending to grow only 7% by 2006, contradicting with IDC reports that IT spending would grow by 11%.

Microsoft was quoted as saying that three major IT buyers for 2005 was:
1. Banking sector
2. Government
3. Telecommunication

With majority money spent on purchasing equipments and solutions for telecommunication purposes.

Microsoft is investing another RM 26 million towards it ISV(Independent Software Vendors) program; a program which provides registrant with cheaper Microsoft products. This program is expected to sustain growth of 20% over the next five years.

Iris and Patimas Suspension Big Blow to Local Entrepreneurs:

On the other hand, Iris Corporation Bhd and Patimas Computer Bhd had both been suspended by the security commission; for its share counter. This is a big blow for the IT market as both are market leaders in respective areas. This also shows that how real jeolousy sentiment is around the Malaysian ICT market. The SC didn't quite able to come up with a strong conclusion towards the decision, however it seems that the speculation about Iris's share prices started since 2005, when many claims something is wrong with the sudden rise in strenght.

However, Iris Corporation Bhd countered offer speculators with securing a huge contract from Indonesia; RM 74 million E-ID system.

The suspension is bad for local entrepreneurs in a sense that honest intention is vulnerable towards sabotage potentials.

Meanwhile, Jeff Ooi and SKThew offers no condolences or analysis for it. At least not yet. We will wait for them.

Stock Revalued as Ringgit Firms Up:

Stocks revaluation activities are being undertaken and many blue chips are expected to experience slight windfalls. For instance, 1% appreciation in the ringgit would translate into RM 150 billion gains for TNB (Tenaga Nasional Bhd).

Therefore, as we blogged about in previous entries:

Version 5
Version 4
Version 3
Version 2
Version 1

That we expect all these to create a better prospect for IT spending for year 2006, based on the fundamental reason that Malaysian would be richer by year end. Before the crude oil prices gaining sharp edge to USD 100 per barrel.

Digi is probably running out of idea:

Meanwhile, Digi is probably running out of idea to make way for a better future in the ICT market of Malaysia.

Ever since it was not granted by the Malaysian government for a 3G licence since March 2006, it has been so-called misaligned.

We recently realized that 3G is not an option for telco.

Recently, they came out with the idea of "Galleries without Walls" to create value-adds to its EDGE(2.5G) network.