Gadget sales expected to slow down in 2H22


MALAYSIA’S gadget sales are expected to decelerate in the second half of the year (2H22) due to the slowdown of the global economy.

According to The National Tech Association of Malaysia (Pikom) chairman Dr Sean Seah, the community as a whole should work together in order to address these issues, as well as remain cautious on the ever-changing economic landscape.

“And that’s in a nutshell I think, the 1H (sales), good. The 2H, need to work harder,” he said during a press conference after the launch of the GBS Malaysia Strategy 2022 Report today.

During the launch, Pikom announced its rebranding into digital Global Business Services Council Malaysia (GBS Malaysia) with its new logo.

“Pikom is proud to announce that this is the first-ever GBS Report that has been produced by GBS Malaysia in collaboration with the corridors in Malaysia — another feather in the cap for the GBS industry.

“Pikom will continue to place GBS as the top priority and ensure we maximise all opportunities for the Malaysian GBS players,” he added.

The findings of the report are also a testament to and success of the association’s strategy and efforts in this industry.

Seah is also confident that this will attract more investors to Malaysia and make it a preferred GBS hub.

The International Data Corp, is also GBS Malaysia’s research partner, stated that its industry has achieved approximately US$4.95 billion (RM21.93 billion) of businesses in 2020 and is estimated to grow at a five-year compound annual growth rate of 6.2% to potentially reach US$6.7 billion by 2025.

This also includes the presence of third-party information technology (IT) and non-IT business process service, offshore service providers as well as captive end-user operations.

Moreover, there are over 250,000 GBS employees in Malaysia who have managed to contribute significantly to the country’s GDP.

Even during the Covid-19 pandemic, it has also managed to grow its revenue and provided employment and will even continue to grow based on the report’s findings.

GBS Malaysia chair Anthony Raja Devadoss felt that they resonate with the constant changes in the global business services sector.

In the next five years, he also advised that the local IT sector must remain relevant to the current situation.

“The Global Business Services Malaysia Strategy Report significantly outlines how global and local companies focus on enhancing the skills of their employees that led to the creation of a group of more than 250,000 trained talent, including in the areas of customer experience, digital technology, finance, accounting and human resources.

“GBS companies realised the need for advanced access and to drive the leading technologies to execute innovative solutions using data analytics, digital experience, robotic process automation and artificial intelligence for the Asean and global markets,” he explained.

Devadoss is also confident of Malaysia’s position as a global business continuity hub where companies are able to set up operations within a short timeframe.

The “Global Business Services — Malaysia Strategy 2022” is a strategic public-private-partnership initiative that was idealised in early 2021 as an industry-led Strategic Roadmap for the GBS Industry to drive this industry forward in the next five years from 2022 to 2027.

The initiative was spearheaded by GBS Malaysia and supported by the Malaysian Digital Economy Corp (MDEC), Invest Penang, Iskandar Investment Bhd, Invest KL, Invest Selangor, Cyberview, the Sarawak Digital Economy Corp and the Contact Association of Malaysia.

GBS research chair Raymond Devadass observed how the pandemic has created many opportunities which also showed how important it is to have policies that are evidence-based, resilient, and future-proof.

“This national GBS strategy is a roadmap for strengthening Malaysia’s position as a high value digital GBS hub.  

“It provides guidance for companies wishing to develop their own GBS roadmaps and expand their services into new areas that will alter traditional business processes and increase shareholder value,” he mentioned.

One of the key highlights of the report was how the local GBS market is growing during the pandemic which is supported by a resilient workforce (the transition to work from home).

Devadass observed how there are more and more people who want to set up a footprint here and they have been receiving many queries and thought about whether Malaysia should include a second GBS hub.

This is also where the research scope is assessing Malaysia’s strengths in the areas of organisation capabilities, its talent market, niche capabilities, infrastructure, the markets and the verticals served by the Malaysian companies.

The report also looks at whether it can compete with other neighbouring countries in attracting foreign direct investments.

Meanwhile, MDEC CEO Mahadhir Aziz believes that Malaysia has a potential where we can look at specific countries to invest in here.

“For example, we have developments, which could be beneficial to this region, developments in Europe that would have an effect in terms of migration of certain services to this region, as opposed to centering around Europe.

“So again, it’s about going out, reaching out to them and collaborating with the right kind of people to show them the kinds of incentives that we already have today,” he said.

Mahadhir also advised that the country requires the right kind of infrastructure in order for investors to operate within the environment.