PIKOM to Host Regional ICT Summit

With the imminent implementation of the ASEAN Economic Community (AEC) by end 2015, this year’s Asian-Oceanian Computing Industry Organization (ASOCIO) PIKOM ICT Leadership Summit 2015 addresses the challenge of how the ICT sector should play a more active role in AEC’s overarching objective of transforming the ASEAN region into a ‘single production and market base’ for the world, which will in turn spillover to offer tremendous opportunities for the local ICT industry.

Hosted by PIKOM, the ASOCIO PIKOM ICT Leadership Summit 2015 is a C-level thought leadership event that is specially designed to cover the highest leadership trends and insights with the intent to spur innovation and adoption of new technologies and business models to drive ICT growth in the region. Themed “Reinventing Leadership in the Digital Age”, 2015’s summit will be held in conjunction with several other keynote events, notably the MSC Malaysia APICTA Awards ceremony and gala night.

(L-R): Stan Singh, C.S. Chin, Cheah & Eric Wong Announcing the ASOCIO PIKOM ICT Leadership Summit

Currently, ASOCIO represents over 10,000 ICT companies that generated a total revenue of over US$350 billion. ASOCIO PIKOM ICT Leadership Summit 2015 expects to see participation from over 500 C-Level executives and government officials from 24 Asian and Oceanian economies.

Key speakers who have confirmed for the event include Tan Sri Dr Lin See Yan (former Deputy Governor of Bank Negara), Tan Sri Munir Majid (Asean Business Advisory Council – Malaysia chairman), Goh Peng Ooi (founder of Silverlake), Ivan Teh (founder of Fusionex) and Fredrik Haren, author of the Ideas Book.

ASEAN ICT Sector in the Post-AEC Period

ASEAN’s ICT industry currently employs some 11.7 million people, contributing over US$32 billion (or over 3%) of the region’s GDP. This number is poised to grow significantly after AEC policy and program implementation formally takes shape by 31st December 2015 – giving rise to new opportunities in digital business trends that will drive ICT adoption in the region.

PIKOM Chairman, Cheah Kok Hoong says that under the ASEAN ICT Master Plan 2015, ICT will continue to be a major driver in all aspects of AEC for the next few decades.

“The digital divide and socio-economic gaps between ASEAN member countries in key areas such as broadband penetration, ICT infrastructure, disposal income and market sophistication and so on are good areas to start looking for opportunities.

“Malaysian companies can either venture into under-developed markets to provide basic products, services and infrastructure; or penetrate into more developed economies with sophisticated solutions. The market is huge, so companies should look to establish a niche area in which they can excel,” he says.

ASEAN ICT Masterplan includes six strategic thrusts: Economic Transformation; Engagement and Empowerment; Innovation; Infrastructure Development; Human Capital Development and Bridging the Digital Divide. The Summit will delve into details on the specific opportunities and challenges of the masterplan and in line with the theme of the conference of “Reinventing Leadership in the Digital Age”.

Also on the agenda are expected further discussions on the impact of taxation (or none thereof) on the ICT industry i.e. e-business, standardisation of systems and processes as well as mutual recognition arrangements / agreements across the region.

In addition, recently published reports by PIKOM on the ICT Job Market has shown gaps in the human capital development as salary arbitrage in the region and globally may affect ASEAN as a hub of ICT innovation. Outsourcing Malaysia, a PIKOM chapter, has also released a study on the demand for ICT and global business services (GBS) is on the rise in the region. However, it also points to some areas that ASEAN countries may be lagging behind.

Cheah highlights, “The data indicates that while the region is poised for strong growth in ICT, challenges abound that may stymie the momentum. ASEAN, and by extension, ASOCIO, as a region will need to seriously look into this.”

Other areas expected to see strong ICT growth in their ICT infrastructure spending; as well as enjoying government focus are in the sectors of banking, manufacturing and telecommunications.

A rising middle class with higher disposal income will contribute to greater demand for consumer goods and services grows strongly (retail, healthcare, FSI, technology, etc). According to Nielsen, ASEAN will have over 400 million people with personal disposable income of $16-$100 a day by 2020.

Also expected is a further increase in talent mobility as ICT talents embrace the free movement of human capital to seek greener pastures across the region. This is potentially a double edged sword for Malaysia, given the prevailing issues of talent shortage and brain drain locally.

In going forward, PIKOM will propose to ASOCIO to form a task force to address these areas of concern as well as solicit input from member countries and formulate papers for submission to ICANN, OECD, ASEAN and their respective governments on policy initiatives to spur growth.

Recent statistics by McKinsey show that if ASEAN were a ‘single country’ it would already be the seventh-largest economy in the world, with a combined GDP of US$2.4 trillion in 2013. It is projected to rank as the fourth-largest economy by 2050.

On a separate note, PIKOM during the press conference also recognised its first batch of partners and sponsors for the ASOCIO PIKOM ICT Leadership Summit ASOCIO. They are: MDeC (Strategic Partner); Fusionex (Platinum Sponsor); Silverlake (Gold Sponsor); NTT Data (Silver Sponsor);  HT Consulting, Epson, Genovasi, Glocomp, Galasys, Hitachi Sunway, Juniper, Logon, Powerware, Symantec (Bronze Sponsors); Amazon Web Services, e-Lock, K2 (Industry Partners),supported by MyCEB and Malay Mail and in association with Outsourcing Malaysia.

About PIKOM

THE NATIONAL ICT ASSOCIATION OF MALAYSIA (PIKOM) is the association representing the information and communications technology (ICT) industry in Malaysia. Its membership currently stands at over 1,000 comprising companies involved in a whole spectrum of ICT products and services which commands about 80% of the total ICT trade in Malaysia. PIKOM works to improve the business climate in the interests of all its member companies and to promote industry growth in line with national aspirations. PIKOM’s membership is open to all Malaysian companies who supply ICT products and services in the computing and telecommunications industries. However, non-ICT companies are also welcome to join the Association as associate members.

About ASOCIO

The Asian-Oceanian Computing Industry Organization (ASOCIO) is a grouping of IT industry associations representing economies in the Asia and Oceania region. ASOCIO was established in 1984 with the objective to promote, encourage and foster relationships and trade between its members, and to develop the computing industry in the region.

Presently, ASOCIO represents 24 members economies. Its mission is to be globally recognised as the champion for Asia Oceania in the promotion and facilitation of ICT trade and development for our members. Today, ASOCIO’s members account for more than 10,000 ICT companies and represent approximately US$350 billion of ICT revenue in the region.