Healthy growth of industry under MCMC’s watch

The communication and multimedia industry grew by a healthy 4.5% with an extra RM2.3 billion into the Malaysian GDP, since a year ago. Malaysian Communication and Multimedia Commission Chairman Dato’ Mohamed Sharil Tarmizi presented the performance report card on the communication and multimedia industry this morning.

Bernama.com story:

Communication & Multimedia posts 4.5pc growth

Business Times  – 6 hours ago KUALA LUMPUR: The communication and multimedia industry’s revenue grew 4.5 per cent to RM53.4 billion last year compared with RM51.1 billion in the previous year. Malaysian Communications and Multimedia Commission (MCMC) chairman Datuk Mohamed Sharil Tarmizi said telecommunication was the main contributor, accounting for nearly 85 per cent of the revenue, followed by broadcasting (11 per cent), and postal sector and others (four per cent). “Our focus over the past few years was to get more people connected via broadband services. Until 2013, there are 20.3 million broadband subscribers, 88.7 per cent of them were mobile broadband users while the rest were fixed-line users. “In 2014 and beyond, Malaysians will continue to benefit from telecommunication infrastructures provided over past 10 years. “However, we need to build more infrastructures and accelerate the growth of telecommunication in order to move towards a productive digital lifestyle,” he said when presenting the Industry Performance Report 2013, here today. Citing online credit as yet another growth sector, he said the value of internet banking in 2013 was RM3,457 billion with the number subscribers increased to 15.6 million from merely 2.6 million in 2005. Sharil said the MCMC would strive to provide a wider coverage of wireless broadband services through the 4G LTE rollout in 2013 to reach the population coverage of up to 50 per cent by 2017.– Bernama   *********************

According to Sharil, there are more opportunities on convergence platforms of communications and multimedia and would be the new engine of growth for the industry, which already saw the telecommunication sector monopolising 85% of the revenue generated within the industry.

MCMC: Converged Platforms Of Communications And Multimedia Will Generate New Economic Opportunities

11/09/2014 KUALA LUMPUR, September 11, 2014 — The Industry Performance Report for 2013 was published by MCMC today. The communications and multimedia (C&M) industry performed respectably, recording a 4.5% growth in revenue to RM53.4 billion from RM51.1 billion in 2012. This steady performance of the C&M industry was contributed mainly by telecommunications with nearly 85% revenue share, broadcasting 11% and the remaining from the postal sector and others. In terms of market capitalisation, the C&M industry performed moderately based on market capitalisation in Bursa Malaysia with a 2.3% growth to RM195.3 billion in 2013. This represents 11.5% of total market capitalisation of RM1,702.2 billion. According to MCMC Chairman, Dato’ Mohamed Sharil Tarmizi, MCMC has been focusing in getting people connected with broadband services over the last few years. This is reflected in the 20.3 million broadband subscribers recorded for 2013; of which 88.7% are on mobile broadband i.e. 3G, and the remaining are on fixed. With the service providers committed to provide wider coverage of wireless broadband services through 4G LTE rollout in 2013 and to reach 50% population coverage by 2017, the mobility aspect is ready to make traditional Internet usage even more ubiquitous. For example, online shopping can reach a bigger number of customers and transactions like billing and payment can be enabled in real time, online. Higher speed internet connection will enable the usage of Information and Communications Technology (ICT) to be further intensified in many areas of business. This will ensure savings on time and operational costs thereby increasing business efficiency. Additionally, the aspect of being ‘connected’ can provide valuable information for business decision-making through availability of dashboards or enable Big Data analytics of customer behaviour to obtain relevant information to enhance a business’s agility to respond to changes in the marketplace. Such converging platforms provide more avenues for diverse range of products and service offerings which are easily available and are becoming more affordable as a result of digitalisation. Applications and services such as, data centre services, connected healthcare, authentication services and e-Commerce services along with improved postal and courier networks are increasingly in demand. Content services incorporating video in many aspects of usage such as online education, workforce collaboration, mobile advertising, social networking aside from online entertainment provide enhanced user engagement and increased competitiveness, but also tests telecommunication network capacities. “In 2014 and beyond, Malaysia is expected to continue to ride on the telecommunications infrastructure built over the last 10 years. We need to accelerate and build more to catch up in order to progress towards a productive digital lifestyle in Malaysia,” said Dato’ Sharil. Moving forward, it is envisaged that the infrastructure and coverage made ready by the C&M industry will be leveraged by other sectors towards improving productivity and value creation, with more innovation and creativity. “MCMC has a key role to help steward Malaysia as a focal point for C&M information and content services. It is timely that MCMC, KKMM and Finas is organising an inaugural KL Converge, from 17 to 19 September to provide a platform for experts, users, developers, producers and entrepreneurs to come together to forge partnerships and expand our content and creative industry’s footprint internationally,” added Dato’ Sharil *************

The regulator for the communication and multimedia industry with specific powers of the Communication and Multimedia Act 1998, also provided the strategic framework for the development and growth in the industry.

An interesting conclusion

An interesting conclusion

In his industry report presentation, the MCMC Chairman gave an emphasis for the improvement of security and quality and service of the communication and multimedia eco-system, as most important for continued growth for the industry.

When contacted, Sharil’s remark “The focus on the continued improvement and service delivery, particularly for the rural areas. This will promote stronger eco-system for e commerce. We also need the capacity building of the eco-system, for e-commerce growth”.

Market capitalisation of the communication and multimedia industry

Market capitalisation of the communication and multimedia industry

“Content and creative industry direct contribution to the GNI currently is at RM32 billion. We are targeting at RM57 billion by 2020”.

There are vast opportunities and rooms for all sectors under communication and multimedia industry to work together and capitalise and synergise on the various strength and value added which are available to be realised.

The industry performance report showed the communication and multimedia industry cornered 11.5% of the market capitalisation of Bursa Malaysia. Axiata Group Bhd. and Celcom Axiata Bhd. leads with RM59 billion of market capitalisation where over 27,000 people are employed. Axiata and Celcom revenues are RM18billion and 8billion respectively.

ICT Development Index (IDI) for Malaysia, as compared to the other Asian countries

ICT Development Index (IDI) for Malaysia, as compared to the other Asian countries

The past two years also saw the market capitalisation communication and multimedia industry grew from RM138.5 billion to RM195.3 billion.

In the report, MCMC also outlines the ICT Development Index (IDI) for Malaysia is 5.04, which above the global benchmark of 4.35. The broadband penetration rate achieved 67% by end of 2013, which is almost 70% way above the International Telecommunication Union (ITU) and Digital Commission target of 40% penetration by 2015.

Broadband penetration rate for Malaysia by end of 2013

Broadband penetration rate for Malaysia by end of 2013

One point interesting to note, amidst intense competition and despite declining Average Revenue Per User (ARPU), the communication and multimedia industry continue to grow by 4.5%. Either pricers steadily dropped or more value for money packages already offered.

It is obvious that MCMC is gearing up as a catalyst, if not towards realising Prime Minister Dato’ Sri Mohd. Najib Tun Razak’s agenda for the economy based on creativity and innovation to take more centre position, as part of the economic transformation plan for the nation.

Published in: on September 11, 2014 at 20:00  Comments (3)  

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3 CommentsLeave a comment

  1. The effort toward improvement of security and quality and service of the communication and multimedia eco-system can only succeed when they have suitably qualified and experienced people. The facts that it is happening, speaks volume of the peoples that they have. Congratulation.

  2. My understanding of this industry is low. Very poor knowledge of IT. I’m interested in measures like automatic censors to control the seditious, the subversives and the outright criminals. Wonder how much can be done against those in the Internet.

    Anybody knows, terima kasih lah kalau kasi tahu sikit details di sini.

    After knowing, we should campaign for the Government to put those measures in place. And not to listen to those seditious and subversive buggers who wanted ISA removed and now egging on Najib to remove the Sedition Act. Despite at least 170 out of a total 191 UMNO Divisions saying they want it retained.

  3. Good of MCMC having those successes and committed to seeking further achievements.

    I trust those concerned are having deliberate programmes to ensure Malays and Bumiputeras get the desired benefits in terms of businesses. To catch up with the richest community in the country – however small the catching up can be – the percentage of benefits should be several fold over and above the richest.

    And what of measures to lessen the number of Malays and Bumiputeras hugging on the various devices to just wastefully chat away endlessly, or watch comics, cartoons, even porno? Can we hope on parents to do it? When many parents themselves are doing it? Can MCMC do something – start dialogues and discussions towards that if not much is being done as of now.


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