IDC Downgrades IT Market Growth, Sees ’99 Rebound

By Julian Matthews

April 3, 1998 (KUALA LUMPUR) — International Data Corp. revised downward its growth forecast for Malaysia’s information technology market to 9.7 percent from 20 percent for the next five years.

IDC predicts the local IT market will experience a compounded annual growth rate (CAGR) of 9.7 percent from 1997 to 2002. Previously, the company forecast a 20 percent CAGR for years 1996 through 2000.

“The currency crisis has affected growth in all sectors,” said IDC country manager Selinna Chin.

Chin said that for 1998, the local IT market is valued at US$1.368 billion, a drastic 28 percent dip from the US$1.9 billion in 1997.

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PC Makers Adopt Build-to-Order to Stay Competitive

By Julian Matthews

Manufacturers are touting the build-to-order model and localization as a means to stay competitive in the cut-throat PC assembly business in Asia.

Dell Computer Corp, Gateway 2000 Inc and Packard Bell-NEC Inc, are leading the way in Malaysia by using flexible configuration and local sourcing of parts to slash inventory and reduce exposure to price dips.

The three companies have benefited since opening manufacturing plants in Penang and Malacca in the last two years.

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