Top 50 Outsourcing Destinations in the world

Top 50 Outsourcing Destinations in the world

by Arun Prabhudesai

India is miles ahead of the rest when it comes to its popularity as a offshoring destination. China is making progress, but so far India has managed to keep the threat at bay.

(source)

Although the top order looks pretty much settled the dynamics of lower order are visibly changing.

According to A.T. Kearney’s Global Services Location Index 2009 (GSLI), a ranking of the most attractive offshoring destinations, Central/Eastern Europe is falling off the radar while Southeast Asia and Middle East countries are gaining popularity.

Following are the current 2009 rankings of top 50 most preferred Outsourcing destinations in the world

(Current Ranking, Country Name and 2007 ranking in parenthesis. The Green denotes countries that have risen compared to 2007 and Reds have fallen. Blacks are the ones who have held their position)

1. India (position in 2007 GSLI: 1)
2. China (2)
3. Malaysia (3)
4. Thailand (4)
5. Indonesia(6)
6. Egypt (13)
7. Philippines (8)
8. Chile (7)
9. Jordan (14)
10. Vietnam (19)
11. Mexico (10)
12. Brazil (5)
13. Bulgaria (9)
14. United States (Tier II)* (21)
15. Ghana (27)
16. Sri Lanka (29)
17. Tunisia (26)
18. Estonia (15)
19. Romania (33)
20. Pakistan (30)
21. Lithuania (28)
22. Latvia (17)
23. Costa Rica (34)
24. Jamaica (32)
25. Mauritius (25)
26. Senegal (39)
27. Argentina (23)
28. Canada (35)
29. United Arab Emirates (20)
30. Morocco (36)
31. United Kingdom (Tier II)* (42)
32. Czech Republic (16)
33. Russia (37)
34. Germany (Tier II)* (40)
35. Singapore (11)
36. Uruguay (22)
37. Hungary (24)
38. Poland (18)
39. South Africa (31)
40. Slovakia (12)
41. France (Tier II)* (48)
42. Ukraine (47)
43. Panama (41)
44. Turkey (49)
45. Spain (43)
46. New Zealand (44)
47. Australia (45)
48. Ireland (50)
49. Israel (38)
50. Portugal (46)

The top half has changed a lot compared to bottom half in matter of 2 years, whereas the top 4 popular destinations have managed to stay where they are.

Highlights from 2009 GSLI survey include:

• The Middle East and North Africa is emerging as a key offshoring region because of its large, well educated population and its proximity to Europe. In addition to Egypt and Jordan, ranked at sixth and ninth, respectively, Tunisia (17^th), United Arab Emirates (29^th) and Morocco (30^th) all rank among in the GSLI’s top 30 countries.
  “The Middle East and Africa area has the potential to redraw the offshoring map and in the process bring much needed opportunities for its large, underemployed educated class,” said Johan Gott, project manager for the Global Services Location Index.
• Saharan Africa also showed strength. Ghana ranked 15^th, Mauritius 25^th, Senegal 26th and South Africa 39^th.
• Countries in Latin America and the Caribbean continue to capitalize on their proximity to the United States as nearshore destinations. Chile placed highest among countries from the region, ranking 8^th on the strength of its political stability and favourable business environment. Other strong performers in the region include Mexico (11^th), Brazil (12^th) and Jamaica, which rose 11 places to rank 23^rd.
• India, China and Malaysia continue to lead the index by a wide margin through a unique combination of high people skills, favourable business environment and low cost. In particular, India has remained at the forefront of the outsourcing industry and actually has become an enabler for industry growth through expansion of Indian offshoring firms into other countries.
• The United States, as represented by the onshoring potential of smaller “tier II” cities such as San Antonio, rose to 14^th in the rankings due to the financial benefits of a falling dollar. The country is the leader in the people skills category and the combination of rising unemployment and political pressure to create jobs is increasing interest in onshoring possibilities among smaller inland locations. Similar trends are evident in the UK, France and Germany, all of which also rose in the GSLI.
• While the global financial crisis has slowed recent offshoring moves, the percentage of companies’ staff offshore may very well increase as a result of the crisis. Layoffs at home are not translating to layoffs among offshore workers as companies seek to maintain service but reduce costs. Additionally, offshore facilities tend to be more efficient because they are newer and lack years of inefficiencies often built up in onshore facilities.

Malaysia bucks the banking trend

Malaysia bucked the trend by showing a continuing demand for banking professionals. Robert Walters related Global Salary Survey 2009, now in its 10th year, also released today, said that banking is still hiring in Malaysia and there is more demand for professionals in shared services and outsourced operations, especially in IT and finance.

The report noted that: “Strong demand remains for sales and business development professionals with specific product, technical or industry knowledge in IT, fast moving consumer goods (FMCG) and the oil and gas sectors.”

Robert Walters related Global Salary Survey 2009, also released today, stated that: “Another notable trend that has emerged from the economic downturn is the increased demand for contractors, particularly within the banking and IT sectors, where many permanent roles are now offered on a contract basis as employers, unable to increase permanent headcount, look to flexible solutions to fulfill resourcing needs,” the report said.

“Demand for IT contractors increased as organisations utilised flexible headcount on projects whilst waiting for permanent headcount approval. Permanent hires are, however, still being made for business critical projects,” the Global Salary Survey stated.

In IT commerce, as outsourcing becomes more prevalent, employers are looking for mid to senior level IT candidates with experience in vendor, contract and relationship management. IT services and outsourcing providers are expanding, driven by an increasing volume of government contracts.

Source:

http://mis-asia.com/news/articles/jump-in-asia-pacific-demand-for-it-contractors

Gartner forecasts Australian market growth in business intelligence software

From www.itwire.com

The market for business intelligence (BI) platform software in Australia is forecast to reach A$174.8 million (US$152 million) in 2009, up 16.8 percent from A$149.6 million (US$130.1 million) in 2008, according to technology research and advisory firm Gartner.

Speaking ahead of the Gartner Business Intelligence and Information Management Summit in Sydney this month, Gartner analysts said BI platform purchases should be more resilient to a recession compared with some other software areas, “but a tougher economic environment, together with stronger pricing pressures, will still hamper growth during the next five years.”

According to Gartner, many organisations were still trying to get value from their BI investments, and further investments by these organisations would be constrained until they determined how to get value from the investments already made.

Gartner says that for the fourth year in a row, business intelligence (BI) applications have been ranked the top technology priority in its 2009 Executive Programs survey of more than 1,500 chief information officers (CIOs) around the world.

Speaking ahead of the Gartner Business Intelligence and Information Management Summit in Sydney this month, Gartner analysts said BI platform purchases should be more resilient to a recession compared with some other software areas, “but a tougher economic environment, together with stronger pricing pressures, will still hamper growth during the next five years.”

According to Gartner, many organisations were still trying to get value from their BI investments, and further investments by these organisations would be constrained until they determined how to get value from the investments already made.

Gartner says that for the fourth year in a row, business intelligence (BI) applications have been ranked the top technology priority in its 2009 Executive Programs survey of more than 1,500 chief information officers (CIOs) around the world.

20 emerging outsourcing destinations - Malaysia name is not there

from Trakin' the india business buzz by Sriram Vadlamani

However protectionist one can turn out, outsourcing will prevail. Not because India is leading it, but because that is how the world trade has prospered over the centuries. Countries usually buy goods from places where it is cheaper. That’s what outsourcing is. Here the good is a service.

India is the outsourcing hub or the back office for the world. China and Vietnam are fast catching up. To displace India from its outsourcing lead, it does not take a China and Vietnam to do it. As per the experts it takes a whole lot of small countries to do it.

Of course, most of the emerged outsourcing destinations are in India. Bangalore, Chennai, Delhi, Dublin, Hyderabad, Makati City, Mumbai and Pune are the cities which have established themselves as the outsourcing destinations.

These are the emerging outsourcing destinations. These might not be Bangalore’s yet but has the ability to close down the gap in few years.

20 emerging outsourcing destinations :

1. Cebu City, Philippines
2. Shanghai, China
3. Beijing, China
4. Ho Chi Minh City, Vietnam
5. Krakow, Poland
6. Kolkata, India
7. Cairo, Egypt
8. Sao Paulo, Brazil,
9. Buenos Aires, Argentina
10. Shenzen, China
11. Hanoi, Vietnam
12. Chandigarh, India
13. Curituba, Brazil
14. Prague, Czech Republic
15. Pasig City, Philippines
16. Dalian, China
17. Coimbatore, India
18. Santiago, Chile
19. Colombo, Sri Lanka
20. Johannesburg, South Africa

Kolkata, Chandigarh and Coimbatore are India’s next Bangalore’s. But cities from China, Vietnam and Philippines are fast closing in. Surprise pack here is Vietnam. It is already dubbed as the next China. May be a little way to go, but India has some serious challenges in the outsourcing space. Not from a single country but a host of small countries. (source)

HCL has stepped on the accelerator. Big 3 better watch out!

Ever since the Satyam episode broke out, everyone was in dilemma about the overall rankings. The top 3 rankings in the Indian IT space are in tact. TCS, Infosys and Wipro are the big league players.

The next spot usually belonged to Satyam. Since there are concerns about Satyam’s valuation, HCL has emerged as the 4th largest IT player in India. But would they remain there for very long? Given the pace at which they are going, I doubt it.

shed everybody on the defensive and IT majors were no exception. IT companies were rich with cash and there were many bargains across the globe. No one really dared to use up the cash. HCL made a very bold motive to acquire Axon to gain key SAP expertise.

HCL has $500 mn in cash. But, it is funding the acquisition through debt. Its logic is simple. Cash in India is earning a 11% interest. Nothing can beat that so you won’t use it. HCL is a AAA rated company and can get capital for an interest rate of under 7%. Why would you not use it? I agree. Raising cash in a difficult environment is difficult. But, if you are a AAA rated company then you are a VIP for the banks who have seen worse things happen to them.

Intriguing thing to look for is HCL is not targeting the Big 3 of India. It is going after Accenture and IBM. Can you believe that? That sure came as a surprise for me, but if you connect the dots it all makes sense. I really like HCL’s ambitions. Not only its ambitions but its business too. With the Axon bid, HCL knew very well what they are paying for. It is bundling its SAP services with remote infrastructure management services and making a lot of money.

It is not all services which HCL is targeting. Vineet Nayar makes a very valid point. HCL is not trying to solve technology problems. Instead they are solving business problems with the help of technology. Not many would realize that but that is a paradigm shift. Especially for services driven Indian IT sector.

I have nothing but praise so far for HCL. Let me end with 3 of their revenue sharing programs which solve a business problem :

1. HCL has collaborated with Boeing for its largest aircraft called the Dreamliner or 787. HCL participated in 36 components in risk-reward program. Some will be paid immediately and some will be paid after the aircraft is successful.
2. HCL took a Cisco product called Cisco Works, fixed the bugs and made it marketable. The revenues for that product increased after HCL too over.
3. In another revenue sharing deal HCL took a security product of Computer Associates added some features and made it profitable.

HCL will not remain at number 4 for very long. It is moving up the ladder pretty fast.

PS : It is unfair to say that HCL has moved up because of Satyam’s fall. HCL rise was inevitable.

Gates predicts four-year downturn

Microsoft founder Bill Gates has told the BBC that it could take as much as four years for economies in trouble to return to positive growth.

He said the upturn would be driven by innovations in science and technology.

Speaking at the World Economic Forum, where he is promoting his charitable foundation, he said the world's poor could not wait for economic recovery.

He said it was up to philanthropists like himself to urge governments, firms and individuals to keep on giving.

Bill Gates, the world's richest philanthropist, said the Bill and Melinda Gates Foundation has lost one fifth of its value in the current crisis.

Despite his prediction that it could be as much as four years before many economies see growth again, he insisted the fundamentals of the global economic system were sound.

Capitalism, he said, had led to incredible opportunity and innovation, and when in five to 10 years, a new upward trend is established, he believed advances in medicine, genetics and software would drive new growth. 

Email solution for sme

Industry giants help SMBs

KUALA LUMPUR: Telecommunications giant Maxis Communications Bhd has introduced two new solutions that target small- and medium-sized businesses (SMBs).

In partnership with Microsoft Malaysia, it kicked off a campaign to take technology to SMBs through its Maxis Push Mail and Maxis Mail services.

Tom Schnitker, Maxis chief marketing officer, said the new services are affordable solutions for SMBs that do not have the type of IT funds that their larger counterparts enjoy.

He said that only 5% of SMBs in the country have fully automated their IT and communications operations.

"The smaller enterprises cannot afford the IT service fees, so our solutions are made to encourage them to embrace IT," he said. Maxis Mail allows SMBs to personalise their e-mail addresses so that they can set themselves apart from other companies.

"Instead of having an e-mail address from a free web-based e-mail service, SMBs can now have their own domain in their addresses, for example, yourname@yourcompany.com.my" Schnitker said.

Maxis will operate the servers, thus relieving SMBs of maintenance costs. Instead, SMBs just need to pay a monthly access fee of RM38 for the service for every e-mail address they apply for.

"SMBs (usually) don't give every employee an e-mail address but we expect this to scale," said Jeff Chong, head of small- and medium-sized businesses at Maxis.

He said there are no limits to the number of e-mail addresses a company can have because the servers can always be scaled up to meet the demand.

Maxis Push Mail is a value-added option for Maxis Mail subscribers. This service allows users to access their e-mail from anywhere.

Joint efforts
Yasmin Mahmood, Microsoft Malaysia managing director, said the partnership with Maxis will help SMBs settle comfortably into the latest technologies.

"I see this partnership as part of an effort to 'Malaysianise' Microsoft by engaging the local SMBs with the new working world," she said.

She said SMBs in developed countries have their employees communicating via e-mail from anywhere in the world on mobile devices, but this is a rare occurrence in this country.

Maxis and Microsoft, she said, are working to change this scenario.

The release of the new services is just the beginning of the Maxis and Microsoft partnership, according to Yasmin.

Both companies are also working together on a unified communications service, that will be launched by March next year.

The service delivers multiple forms of communication, including e-mail, instant messaging and Internet access, through a single device.

Maxis and Microsoft will also be expanding their suite of services to help more businesses take advantage of new technologies.

Scary

A story for all my friends who have to travel

Willie (IBM Senior Certified Consulting IT Software Specialist) Posted 20 hours ago
Comments (0) | Trackbacks (0)

I saw this story on the 11:00 PM news while I was out in California last week. I have no idea how many hotels are like this, it may be just the three they visited, however I know I will not be using hotel glasses anymore.

Dirty Secrets about Hotel Drinking Glasses

Huge changes to be made in Public service

Monday October 8, 2007

Huge changes to be made in public service

By YAP LENG KUEN

Excerpts from the interview with the chief secretary to the Government Tan Sri Mohd Sidek Hassan.

STARBIZ: What are your biggest challenges in moving the public sector to be more pro-business?

Tan Sri Mohd Sidek Hassan: We had a sampling involving 2,300 people done before we decided on the change. The feedback is that they want the change and they want it fast and that is the message I got. So to me, challenges are opportunities.

Tan Sri Mohd Sidek Hassan

There are some bad apples in the service that can influence others. What can be done about that?

They are there as there is lack of integrity. But the numbers are small. We have to take quick action. We can first help by providing training, but if the problem is serious – they do not perform or do not fit in – they will have to go.

We have an exit policy but a voluntary separation scheme is a misnomer in the civil service.

Would everyone in the service be subjected to KPIs (key performance indicators), as recently it was announced that the local councils would be?

Yes. Now the secretary-generals have their KPIs. We have to fine-tune it for everyone since the guidelines and circulars are available.

The KPIs may be there, but implementation is critical. We have to continuously monitor to ensure value is extracted from the exercise (and those who deserve to be rewarded do get their dues.)

What are the rewards?

In May, everyone in the civil service got a big pay rise and they should complain no more. Those who work hard and with integrity would get better increments. We would also honour them with titles such as Datuk.

Is there a need to benchmark against others in terms of service?

We would benchmark against the best, and the best could be benchmarking against us. In terms of payments, we are still better at 14 days. As for one-day passport (issuance), we are the most unique globally.

The Prime Minister's Office in Putra Jaya

So the benchmark is us, and therefore, we should give our real best in whatever we do. We can keep on harping that the civil service should move faster but there is no compromise on integrity.

How do you intend to weed out corruption within the civil service?

I speak and believe in simple things. When we raise our children, we always tell them not to lie, cheat and study for exams. The same concept applies here.

Integrity is not about corruption alone. If you are honest, you would to come to work by 8am and not 8.30am or 9am. People who are honest come before 8am and leave after 5pm.

And once you have clocked in, make sure the day’s work is really worth “the ringgit and sens”. Make sure the resources that are under your control – human and materials – is not wasted.

Make sure you handle contracts by following the rules. If you have clients, help the clients if they need help. If all of us have these kinds of values, then the issue of corruption will not arise.

Would you sack anyone if there is a cause?

It is being done. People who are caught are taken to task. We would do it fast as we do not want bad apples.

How can you trace the bad apples?

Having whistle blowers and the private sector can help by reporting any incident. We take complaints seriously. We should not let a few bad apples tarnish the image of the civil service, which to me is rated as one of the best.

Talent management is an issue. How can you resolve that?

We are trying to attract a younger workforce and make it more multi-racial. Surprisingly, there are more Indians than Chinese in the workforce while the vast majority are Malays. Perhaps it is not that attractive, and therefore applications are less.

The basic salary for a graduate is now RM2,800 and that, to me, is attractive. We want to forget about colour or gender and focus on professionalism, as a fresh perspective is vital. We are going to universities to attract graduates early and our website www.gov.my is open for year-round registration.

You reckon you can steer the ship safely to shore?

The response is positive thus far. There can be further improvements. The reward system is merit-based and not seniority-based to encourage people to work hard.

There have been cases where people get promoted very quickly, not withstanding colour or gender.

I practise favouritism, but in the good sense of the word. If they perform, they should be rewarded.

If you are a Sec-Gen, would you like the best deputy around when you are not around or (would you put in) someone who does not perform?

Each job demands the right skills. How is that possible?

Empowerment and training. At the point of entry, we should ensure people hired have the qualifications; and at the interview, we should get people with the right attitude.

Then it is the training part. We have to empower the various ministries to have the right man for the right job.

One percent of the payroll is meant for training, so all the ministries and departments must not be stingy to use the money to enhance the workforce.

How important is Pemudah?

Pemudah is a special taskforce set up by the Prime Minister to facilitate and improve the public delivery system. It is made up of representatives from the public and private sectors.

We meet so often to deliberate on issues and how we can best resolve or facilitate policy or other issues relating to the public delivery system.

The current issue we are working on is to reduce the timeframe for valuation of property to 10 days. We are also starting a one-stop business centre online. We are trying to reduce the approval process for expatriate posting and extend the validity to five years.

We have done quite a bit at Immigration as visas for workers and tourists are all coming out faster. Even though the issue of working permit is still slow, we are establishing facilities so that it is faster.

We have promised seven days and we hope to reach that. Whatever we do, we cannot compromise on the issue of security and that is where Immigration has to be responsible.

Saying is one thing, enforcing is another. How effective would enforcement be this time around?

You have to enforce it, and I am not going to tolerate it (ineffective enforcement). I do not mince my words.

For example, if the price of sugar is RM1.45 per kilo, it should be that. If it is sold at higher prices somewhere, then take action. We cannot compromise and take people for granted. There should also be no compromise on enforcement too.

What would be most gratifying to you?

The public delivery system is massively improved, where layers of bureaucracy are reduced, empowerment prevails. The employees are responsive, fast. There is credibility and integrity.

Customers get friendly service and the people are proud to be part of a very efficient and credible service force that stands at par or is better than the private sector.

Tariff rates at tip of your cursor

The Star online News Thursday September 27, 2007

Tariff rates at tip of your cursor

By CHRISTY LEE S.W.

KUALA LUMPUR: Traders in the manufacturing industry will no longer have to deal with the tediousness of manually looking up information on tariffs through books or CDs, which may also only contain dated information.

They can now use the online search portal Tariff Finder Online (TFO) to find up-to-date and accurate information on tariffs.

The web-based portal was officially launched recently by Tradenex.com Sdn Bhd, a subsidiary of the Federation of Malaysian Manufacturers (FMM).

“There is a lot of data on tariffs, but the problem is getting hold of the information at the right time,” said Soon Koi Voon, Tradenex.com CEO.

At present, he said, anyone who wants to import or export goods would have to call up the Customs department or manually sift through tariff books and CDs for information.

“And very often, you’ll need to cross-reference more than one book or CD – it’s a time-consuming process,” he said.

TFO is targeted at manufacturers (who are involved in the import of components), importers, exporters, distributors and freight agents.

According to Soon, TFO was developed locally through a partnership with independent software vendor In-Glow Technologies Sdn Bhd.

“We took only three months, from the time of conception to completion, to develop the entire system,” he said.

TFO was built on Microsoft .NET framework, and uses both SQL Server and Windows Server.

Tyson Dowd, Microsoft Malaysia Sdn Bhd senior director of local software economy, likens TFO to the “Suez Canal” for the customs industry in the country.

“It is virtually the entire database of the Malaysian Custom tariff rates consolidated into a single web-based platform,” he said.

“With a click of the mouse, traders can now search for information – it will ensure greater efficiency for the industry,” he said.

TFO’s database contains entire tariff rates of the Malaysian Customs for more than 8,800 items under Harmonised Systems, and more than 12,600 under the Asean Harmonised Tariff nomenclature codes, according to Tradenex.com.

Ironing out inefficiencies
“There are a lot of inefficiencies in the supply chain industry, many of which are not due to poor business processes or weak management, but because information is not available at the right time and place,” said Datuk Paul Low, FMM vice-president and chairman of Tradenex.com.

He said supply chain processes in the country are often not integrated with warehousing, sales and suppliers, although they should be.

“As long as we have these inefficiencies, we will waste time and be unable to manufacture and ship products in minimal time,” Low said.

“Also, because tariffs now vary from country to country, the business of import and export has become more complicated,” he said.

Low said it has become harder to keep track of the latest tariff reductions. “If you’re overseas and you want to check for information on tariffs in Malaysia, you would have to make numerous calls or buy books from here,” he added.

Avoiding confusion
According to Ken Wong, In-Glow Technologies managing director, there are two concerns when importing goods – if a duty or tariff needs to be paid, and if an import licence is required.

“To find the answer, you will first need a tariff code,” he said. “If you do not have years of experience in the manufacturing industry, you’ll have a hard time looking for tariff codes because the terms used in this business are not the same as those a layman uses,” said Wong.

For example, a layman who wants to find the tariff code for cars might simply search for the word, although the typical term used is “vehicle,” he said.

TFO has a smart search feature which enables a person who is not familiar with manufacturing jargon to find the proper tariff codes easily.

“You just need to key in a word, and the smart search feature will provide suggestions of what it thinks you are looking for,” said Wong.

TFO also comes with multilingual support. “Misinterpretations often occur in classifications, which might cause an importer to pay the wrong duties and get fined for it,” he said.

For example, if someone wants to look up tariff codes for importing live fish, he might come across the word “fry,” which is a classification for immature fish.

But the word “fry” may have an ambiguous meaning, Wong said, especially to those who are not well-versed in English.

“The finder can check boxes for Chinese and Malay, and the site will display the translated word in these languages on the same page,” he said.

Pay to use
Traders who are interested in using TFO will have to register at the website, and pay a registration fee of RM200 (per user).

A one-day pass costs RM20 while a 12 month subscription costs RM600.

“We also have corporate rates for companies that want to register multiple users,” Soon said.

But those who just want to preview some of TFO’s features without registering, can log in with the username and password “demo,” he said.

++++

http://tariff.tradenex.com

WCIT expected to rake in RM500m for Malaysia

News Wednesday September 19, 2007
MYT 12:36:58 PM

WCIT expected to rake in RM500m for Malaysia

By FOO YEE PING

NEW YORK: Malaysia's hosting of the 16th World Congress on Information Technology (WCIT 2008) is expected to bring in about RM500mil for the country.

This was the projected economic impact in the short term as a result of trade deals, hotel stay, and food and beverage consumption, among others, said Deputy Science, Technology and Innovation Minister Datuk Kong Cho Ha.

"The estimate is based on the experiences of past host cities such as Taipei and Adelaide," he said.

The congress, often known as the Olympics of the ICT World, will be held at the Kuala Lumpur Convention Centre from May 18 to 22 next year.

Kong said it would be the ministry's biggest IT undertaking so far.

"Our winning the rights to host the congress is by itself recognition that Malaysia has made it on the global IT map," said Kong, who was here to attend the United Nations' Global Alliance for ICT and Development (UNGAID) meeting. He also met with several US firms to promote WCIT 2008 to them.

Supported by the ministry, the biennial WCIT congress is expected to be attended by 2,000 delegates from about 80 countries.

"Sponsorship of the event, through various means, is targeted to reach RM30mil in value," Kong said.

Its highlight is the business forum in which Microsoft chairman and co-founder Bill Gates, former UN secretary-general Kofi Annan and Dell’s chief information officer Stephen F. Schuckenbrock are confirmed speakers.

Kong also said that Malaysia had just been confirmed as the host of a UN Global Alliance for ICT for Development-initiated meeting which would be attended by science and technology ministers throughout the world.

"These ministers will have a dialogue with industry leaders, NGOs and academicians on ways to ensure ICT for development policies are effectively implemented," he said.

The meeting will be held on the sideline of the WCIT 2008, in which CNBC is the international broadcast partner.

Manufacturing sector to expand 3.1% this year

The Economic Report (Thestar.com.my)

Saturday September 8, 2007

Manufacturing sector to expand 3.1% this year

The manufacturing sector is expected to grow 3.1% this year, supported by domestic-oriented industries, particularly chemicals and chemical products, food and, construction-related industries.

For the first six months of the year, softer external demand, particularly for electrical and electronic products, textiles and apparels as well as machinery and equipment affected the overall performance of the sector.

The sector grew by 0.5% compared with last year's 8.8% during the same period.

Output in the domestic-oriented industries grew 5.3% while export-oriented industries contracted 1.9% during the first six months.

Despite the contract, export-oriented industries continue to remain as a major contributor to the total manufactured output.

The chemicals and chemical product industry, including agricultural and industrial chemicals, cosmetics and toiletry products, paint and soap is a significant contributor to the manufacturing sector.

For the first six months of the year, output of the construction-related industry continued to expand significantly by 30.8% due to strong growth in basic iron and steel and structural metal products.

Output of the food products industry grew significantly by 12.7%, driven by higher output in processing and preserving of fish and fish products, which grew by 27.1% in tandem with increased marine fish landings.

Output of the off-estate processing industries, comprising mainly palm oil and rubber contracted by 7.8%, constrained by supply of latex and crude palm oil.

The plastics products industry registered a decline in output and sales of 3.6% and 0.7% respectively due to lower demand for components from electrical and electronics (E&E) and transport equipment industries and lower supply of petroleum feedstock.

While export-oriented industries contracted in the first six months of they year, following the downtrend in global demand for E&E products, that fall was mitigated by strong growth recorded in the medical, optical and scientific instruments, and resource-based industries.

Output of the E&E industry declined by 5.6% in weak global demand.

The rubber-based industry however continued to register growth of 8% contributing 3.9% share to total manufacturing output.

Output of medical, optical and scientific instruments also posted strong growth of 10% in the first six months of the year.

In line with lower production of crude oil, output of petroleum products grew moderately by 8.6% in the same period.

The production of textiles, apparels and footwear industry declined by 10.1% for the six months due to a contraction in output of textiles and apparels as a result of stiff competition from low-cost producing countries.

Meanwhile, production of machinery and equipment industry including air conditioning, refrigerating and ventilating machinery, contracted by 13.7% during the first six months of the year.

Plans spell win-win situation, say IT industry players

Sunday September 9, 2007 ( The Star Online : TechCentral - Malaysia)

Plans spell win-win situation, say IT industry players

By STEVEN PATRICK

PETALING JAYA: Plans aimed at boosting broadband penetration in the country, as announced in the Budget, will be well received, according to information technology industry players.

They said that giving employers who provide staff with computers and broadband Internet facilities a tax deduction helped create a win-win situation.

"The employers will benefit from tax savings and there will be a strong spill-over effect," said David Wong, chairman of the Association of the Computer and Multimedia Industry of Malaysia (Pikom).

He said if employers bought PCs for their employees, they would bring the machines home.

"This will give their family members the opportunity to use these computers.

"We have a 26% household PC penetration (in a population of 27 million). This move would increase that rate," he said.

To further improve broadband penetration, the Government is providing companies that offer last-mile network facilities a significant incentive.

Such companies will get an investment allowance of 100% on capital expenditure incurred for broadband infrastructure, up to Dec 31, 2010, and should increase broadband penetration from 12% to 50% by then.

Datuk Badlisham Ghazali, chief executive officer of the Multimedia Development Corporation (MDeC), believes the move will alleviate the financial burdens of these service providers.

"They have to spend huge amounts of money initially and may only see profits after a few years," he said.

The Government has also allocated RM15mil to be spent on programmes to educate rural folk on the benefits of using information and communications technology (ICT).

In addition, telecommunications industry regulator, the Malaysian Communications and Multimedia Commission will spend RM45mil to provide Internet services to rural schools.

Companies undertaking ICT activities outside the country's cyber-cities and cyber-centres are also being encouraged to move into these areas.

The Government will discontinue its incentives for companies located outside these cyber-cities and cyber-centres.

Wong, however, said he was surprised by the announcement.

"This is a step backward. Incentives should be extended to companies outside cyber-cities and cyber-centres.

"But then again, there are many such cyber-centres coming up, so relocating shouldn't be a problem," he said.