Over 21 per cent of Malaysia’s GDP will be digitalised by 2022, with the digital economy central to its journey towards becoming a high-income nation.
That's according to new research from IDC, outlining the top 10 predictions for the Malaysian IT industry in 2019 and beyond.
“In its journey towards achieving greater economic progress, Malaysia needs to do more to unlock the full potential of its digital economy,” said Baseer Siddiqui, senior research manager of ASEAN at IDC.
“Industries in Malaysia must transform themselves by adopting best practices and emerging technologies in order to sustain and be able to compete in a highly connected and competitive world.
“The government and IT vendors have a major role to play in setting up right policies, development of talent, and implementation of right solutions to help end- user enterprises thrive and grow the digital economy of Malaysia."
Furthermore, digitalisation across Malaysia is expected to drive an estimated US$82 billion in IT-related spending from 2019 through 2022.
The adoption of emerging technologies is expected to be one of the key drivers in future economic growth, according to IDC.
The recent budget focusing on Industry 4.0 blueprint, titled “Industry4WRD”, is a right step, according to IDC, towards helping businesses especially SMEs to rapidly adopt third platform technologies.
Furthermore, financial institutions, telecommunications, media, and retail industry are the leading industries that have successfully started to digitally transform and align their overall strategy with Malaysia’s digital strategy.
“The adoption of emerging technologies such as artificial intelligence, robotics and internet of things has enabled businesses across industries in Malaysia to start realising the desired outcomes such as improved customer experience, better workforce efficiency, new revenue streams and business models, but the number of success stories are still small compared to other matured digital economies,” said Siddiqui.
“There is greater need to enable digital success at bigger scale, and to achieve it every stakeholder has to work in tandem with a comprehensive and actionable roadmap."
IDC Malaysia’s top 10 IT industry predictions to guide all the stakeholders in driving digital economy and IT Industry in Malaysia are:
#1: Digitalised Economy - By 2022, over 21 per cent of Malaysia's GDP will be digitalised, with growth in every industry driven by digitally-enhanced offerings, operations, and relationship - driving US$82 billion in IT-related spending from 2019 through 2022.
#2: Digital-Native IT - By 2023, 70 per cent of all IT spending will be on third platform technologies, as over 50 per cent of all enterprises build "digital-native" IT environments to thrive in the digital economy.
#3: Expand to the Edge - By 2022, over 25 per cent of organisations' cloud deployments will include edge computing, and 25 per cent of endpoint devices and systems will execute AI algorithms.
#4: AppDev Revolution - By 2022, 60 per cent of all new apps will feature micro-services architectures that improve the ability to design, debug, update and leverage third-party code; 25 per cent of all production apps will be cloud-native.
#5: New Developer Class - By 2024, a new class of professional developers producing code without custom scripting, will expand the developer population by 20 per cent - accelerating digital transformation.
#6: Digital Innovation Explosion - From 2018 to 2023 - with new tools/platforms, more developers, agile methods and lots of code reuse - four million new logical apps will be created.
#7: Growth Through Specialisation - By 2022, 20 per cent of public cloud computing will be based on non-x86 processors (including quantum); by 2022, organisations will spend more on vertical SaaS apps than horizontal apps.
#8: AI Is the New UI - By 2024, AI-enabled user interfaces and process automation will replace one-third of today's screen-based apps. By 2022, 20 per cent of enterprises will use conversational speech tech for customer engagement.
#9: Expanding/Scaling Trust - By 2023, 30 per cent of servers will encrypt data at rest and in-motion; over 20 per cent of security alerts will be handled by AI-powered automation; and 3.0 million people will have blockchain-based digital identities.
#10: Consolidation vs. Multi-cloud - By 2022, the top four cloud "mega-platforms" will host 80 per cent of IaaS/PaaS deployments, but by 2024, 90 per cent of Malaysia 100 (M100) organisations will mitigate lock-in through multi-cloud/hybrid technologies and tools.