GST Implementation Will Accelerate Malaysian Enterprise Application Software Market: IDC
16 Jun 2014
KUALA LUMPUR, 16 June 2014 – The latest IDC’s enterprise software forecast showed GST implementation is one of the key drivers for growth in the Malaysian Enterprise Application (EA) market and IDC expects 2014 to be a much better year compared to 2013. This will be a boost to many EA vendors as this forces business to either upgrade or replace their legacy system with a system that is GST compliant.
“With GST coming into effect in the early part of 2015, we predict there will be a scramble from the businesses to be fully GST ready in line with government regulations and the implementation will be one of the catalysts for growth in Malaysian EA market for 2014 and possibly in 2015 as well,” says Wong Yih-Khai, Market Analyst, Software, IDC Malaysia.
The latest forecast published in IDC’s Asia/Pacific Semiannual Enterprise Applications Tracker for 2H2013 (second half of 2013) showed the purchasing pattern for Malaysian EA market generally peaks during the second half of the year and 2013 did not prove to be an exception with the market bouncing back from a slow first half due to the uncertainty that surrounded GE 13 in May.
Although Malaysian EA market did grow slightly in the later part of 2013 (3.2% revenue growth compared to the first half of 2013), the total revenue for 2013 was slightly lower compared to the total revenue for 2012 (0.4% decline year on year). Total revenue in the second half of 2013 for Malaysian EA market was US$118.7 (RM382,725), representing 50.8% of the total revenue generated in the whole of 2013.
This shows that there were some key deals that were closed towards the latter half of 2013, showing a positive sign for the Malaysian EA market. In terms of total revenue in the Malaysian EA market, manufacturing continues to be the biggest contributor followed by retail, communications and media.
IDC also forecasts there will be a 6-8% of total revenue growth for Malaysian EA market in 2014 compared to the previous year.
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