Industry reactions to Malaysia’s US$16.2 billion stimulus package
By AvantiKumar
16 Mar 2009
While everyone I spoke to welcomes the Malaysian government’s mini-budget stimulus package worth RM60 (US$16.2) billion announced recently, some of the industry leaders have definite ideas on where that money should go.
Cisco Malaysia managing director Anne Abraham says: “The RM60 (US$16.2) billion stimulus package announced has exceeded expectations on many fronts and it is inspiring to see that while the mini-budget addresses the immediate needs of the people, the government will also be investing in growing future opportunities and building the foundation for accelerated growth once the global economic outlook improves.”
Reach and speed
Abraham says: “The drive to improve broadband infrastructure in the country is decisive as broadband connectivity is no longer a luxury, but a necessity for government, businesses and citizens. Broadband has the potential to transform our country. It will create jobs in the growth sectors of our economy—jobs that are driving the collaboration and interaction economy. Broadband’s economic power is derived from two sources.
“The first is reach—how many people are using broadband at work, at home and in the community. The second is speed—the speeds of the connection determine the impact it has on user behaviour. If we get this right, then Malaysia’s broadband infrastructure can indeed be the highway to our nation’s future.”
Abraham also says Cisco is keen to support the re-skilling of the workforce to prepare them for new opportunities that emerge in this economic transition.
The focus on small and medium enterprises is also welcomed by all the people I spoke to over the past couple of days. Abraham adds: “SMEs [small and medium enterprises] are an important engine of growth and innovation today and a springboard to a stronger economy in the future. The focus on key projects will also be a catalyst to stimulate many other businesses and in turn the economy as a whole.”
National Broadband Plan
Nokia Siemens Networks Malaysia country director, Bill Chang, welcomes the focus on telecommunications and technology, among other sectors. The additional off-budget projects, which will enhance our telecommunication infrastructure, are a welcome boost to the country’s journey to connectivity and clearly demonstrate the government’s commitment to the National Broadband Plan. It can be shown that the increased broadband penetration has some definitely multiplying effects in the GDP growth in most economies.”
“Having surpassed the target of 20 per cent penetration in household broadband last year as reported by government regulator MCMC [Malaysian Communications and Multimedia Commission], Malaysia has established good footing to move to the next level of connectivity and economic development,” says Chang. “The availability of multiple modes of broadband access and services today, i.e. 3G, WiMAX and HSDPA [high speed downlink packet access] will continue to grow, and new business opportunities such as Mobile TV, IPTV and VoIP will offer next-generation growth potential to operators.”
“The announcement of the increased stimuli in this area shows that the government is keeping a tight rein of new target for 50 per cent penetration in household broadband by 2010,” adds Chang.
Information infrastructure crucial
Intel Malaysia’s country manager, Ryaz Patel, also strongly believes that information infrastructure is crucial for raising Malaysia’s national productivity and competitive advantage in the global economy. “In the mini budget, Intel Malaysia had hoped the government would capitalise on the opportunity to invest in information infrastructure in ways that would advance its economy to emerge stronger beyond the present crisis.”
Patel praises the government’s decision to improve telecommunications infrastructure, including ‘Broadband Libraries, Broadband Community Centres’, as well as the provision of basic telephony services in 89 districts in rural areas.
However, Intel Malaysia wishes to see more incentives for school students, households and SMEs to be connected to the Internet via their own broadband-enabled computers. “Countries investing in individual and household broadband access, through a downturn, as seen in developed countries, emerge more competitive, as the population and its businesses become more connected and informed.”
In addition, Cisco’s Abraham reminds us that even in times of economic downturn, key issues such as global warming and carbon emissions still deserve attention.
She points out: “Green technology was briefly mentioned in the stimulus package but there were no specifics on how the government intends to drive adoption.”
All those I spoke to agree on one final point: it is critical that the stimulus package is channelled fast and used to drive the overall economy so that impact of the recession is reduced. This should raise confidence levels among consumers and key sectors, improve spending in general.
AvantiKumar is the Malaysia correspondent for Fairfax tech brands and deputy editor of Computerworld Malaysia.
