Plenty of room for growth

ROZANA SANI

2011/08/01

Pikom, which will be celebrating its 25th anniversary, maps out its future goals of increasing ICT penetration, writes ROZANA SANI
THE name Pikom, or the National ICT Asssociation of Malaysia, is synonymous with computers and the information and communications technology (ICT) industry.

Celebrating its 25th anniversary this year, it was formed to create an environment conducive to the health, prosperity and competitive nature of the ICT industry. The association has now included in its repertoire a role to contribute towards the country’s socio-economic development.

A natural addition, says chairman Datuk Wei Chuan Beng, as ICT now has a far-reaching impact across industries and all aspects of life.

“We are in the era where we are becoming truly connected, via ICT. When Pikom was established 25 years ago, there was already limited connectivity — from mainframe to terminals, where computing involves a lot of punch cards though there was direct feed for computation. But today, the kind of connectivity is very distributed. Everyday you get connected in totally different ways, using totally different devices to various servers, sites or whatever applications.”

This has spawned new knowledge, triggered by a whole new ecosystem in the ICT world.

“It is not just about computing devices or gadgets. But rather a whole new ecosystem comprising games, music, videos and applications that are useful for personal, professional and family lives. That accelerates knowledge, and because of this, new thinking about the entire ecosystem has emerged. Everyone in the industry across the globe has been thinking where they play in the new ecosystem. This is where we are at today,” says Wei.

In the new landscape, he says the membership groups within Pikom continue to evolve and expand their roles.

For example, principals of hardware products, distributors and retailers are now playing an extremely important role.

“These are the people who make the devices, products available to all users. Without their investments, the penetration of devices like PCs, smartphones, notebooks, and all kinds of ICT devices will not have taken off. We must acknowledge that although their business may not sound sexy, their contribution is indeed enormous. And because they play a pivotal role in bringing the devices and reaching out to the people, this warrants a lot of support.”

Pikom has been supporting hardware vendor members through its flagship event Pikom PC Fair and other consumer-based events like the recently concluded Digital Lifestyle Expo 2011 at the Kuala Lumpur Convention Centre.
The support is about to expand and be morphed into a dedicated venue called the Pikom ICT Mall, which is expected to officially open in October.

“With about 8,100 sq metres of space, we hope to position this mall as a place where, when people think ICT retail, they will think of the full spectrum of products offered there. The mall, in CapSquare, Jalan Ampang, Kuala Lumpur, will provide retailers and distributors with an effective platform to serve end-consumers who want choice, best deals, quality and genuine products.”

Wei revealed that mall developer Bandar Raya Development Berhad will offer a special 10-year predictable rental arrangement.

“The lower overhead will allow retailers to give back to consumers, offer better promotions and be more creative in using the margin. The mall goes beyond retailing and will among others, host events such as the coming Word Cybergames Challenge 2011. Carnivals, educational events will also be held there.”

While consumers may argue that the mall is yet another project aimed at only those in the Klang Valley, Wei says Pikom is prepared to bring the concept to other parts of the country once the model is well-tested.

Its members are also making an impact on both business and society with its outsourcing platform.

“Through our joint initiative with Multimedia Development Corporation (MDeC) which kicked off in 2006, we are proud to say that this segment has grown tremendously. However, what is worrying is the decline in the enrolment in ICT courses. As we move into becoming a knowledge and high income society, we want people to be more productive. So, more awareness need to be put on ICT in this respect,” says Wei.

On broadband and telco providers, Wei terms them as the movers and shakers of the industry in the new landscape. And content and games developers as the next big thing.

“Content and games will increasingly make the bigger difference in terms of revenue. A growth area but requires us to play catch-up with other countries,” he adds.

For software development, Wei says Pikom can be an important conduit for players.

“There are notable software tools — solutions across all different sectors — for the financial, telco, manufacturing, sales and distribution, food and beverage, and government sector. We hope to introduce in the Pikom website a directory for those looking for ICT solutions,” he says, adding that the feature will be ready by next year.

“There’ll be choices for user organisations and individuals, just like the ICT mall... only that this is virtual, he says.

While Pikom has contributed enormously to the economy (the ICT industry has contributed close to nine per cent to the total GDP), more still has to be done.

“We have close working relationship with the Federal Government, as well as State governments like Sabah, Sarawak, Johor, Selangor, Perak, Penang, Kelantan and Pahang. As a country, we are now adept at using ICT as a tool for knowledge sharing but not quite there where ICT is used to reach greater income. Much more needs to be done.”

One step towards this is to have a dedicated ministry in charge of ICT. “A single ICT Ministry will be able to facilitate a more coherent implementation of ICT policies. Co-ordination under one umbrella may be even stronger,” he adds.
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