Malaysia may be losing its mojo as investment destination
- Japanese companies invested in 806 businesses in Malaysia; 1,000+ in Singapore, almost 2,000 in Thailand
- HSIS aims to grow revenue by 25% this 12 months and with the aid of another 20% in 2015, says CEO
IN THE eyes of Japanese buyers, Malaysia might not be as attractive as it became all through the Eighties or 1990s, said a top legitimate of Hitachi Sunway Information Systems Sdn Bhd (HSIS).
According to Cheah Kok Hoong (percent), the institution leader government officer, Japanese corporations invested in 806 corporations in Malaysia in 2012.
The variety is notably lower than maximum of its regional friends that year. For example: Japanese corporations invested into 1,777 corporations in Thailand and 1,069 companies in Singapore, he said, citing various sources.
“The records speaks for itself. Is Malaysia nevertheless a great region for funding? Perhaps in a few regions, but no longer in all areas anymore,” he instructed a media briefing on May 19.
Meanwhile Cheah stated that HSIS, an IT offerings issuer, expects revenue to grow by 25% this year to RM114 million and with the aid of some other 20% in 2015 to RM137 million, specially helped through its local growth. [RM1 = US$0.31]
The agency, formerly referred to as Sunway E-Systems (M) Sdn Bhd, plans to expand to 3 new markets this year, namely Indonesia, Vietnam and the Philippines.
“Without doubt, our regional growth plan will play a key function in our increase over those two years,” stated Cheah, additionally the chairman of the National ICT Association of Malaysia (Pikom).
Even though HSIS is persevering with to expand to other components of the location, Cheah believes that Malaysia will continue to be its single largest market over the close to-term.
“However, that whole equation can also exchange in the longer run. For example, we are seeing quite a few potential in Indonesia, in which there is a lot of demand for device integrators, records centres and so forth.
"So, will our remote places enterprise surpass the Malaysian commercial enterprise? Maybe, but not so soon,” he introduced.
In order to develop the foreign places market, Cheah said that HSIS is probably to goal small and medium corporations (SMEs) at some point of the early ranges. Once it builds its rapport, it will then check out penetrating the organization section.
“It isn't that sincere whilst involves the opposite markets; it takes a piece of time earlier than you may sincerely penetrate these markets,” he stated.
In terms of customer segments, HSIS’ important recognition in 2014 may be on growing its economic offerings enterprise commercial enterprise, accompanied by using oil and fuel, manufacturing, as well as the architecture, engineering and production industries.
Besides expanding its nearby footprint, HSIS is also hoping to offer greater offerings to its customers as a part of its efforts to be a “one-stop centre,” stated Cheah.
“Technology has turning into a key element for groups today, and we consider we can be the only-forestall centre for his or her era desires.
“For instance, inside the past, when a organization desired to installation a information centre, it could just come to us for community solutions. Now, we want to offer them a wider range of answers,” he stated.
As part of its efforts to emerge as a one-forestall IT solutions issuer, HSIS has made several strategic collaborations to reinforce its solutions portfolio, Cheah said. One of the maximum recent partnerships is its tie-up with SAP Ariba.
“Today, for most firms in Malaysia, IT structures infrastructure is already a given basic foundation for enterprise operations. However, with the appearance of massive information and mobility, those organizations at the moment are centered on optimising their current infrastructure to improve productiveness and decrease value to fulfill speedy-converting marketplace dynamics.
“Hitachi’s rate-based cloud presenting helps this by means of allowing the powerful transport of IT answers and offerings on a hard and fast month-to-month rate, instead of utilization-based totally billing. This reduces clients’ capital expenditure considerably,” he claimed.
HSIS, mounted in April 2013, is a fifty one:49 joint challenge between Japan’s Hitachi Systems Ltd and Malaysia’s Sunway Technology Sdn Bhd.
Cheah stated that the fee-primarily based cloud supplying may additionally assist HSIS amplify its footprint in the SME market.
“Today, about 60% of our consumer base accommodates the enterprise phase. Clearly, there’s lots of capability in the SME [space],” he stated.
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