Focus on services, says Acer’s Shih

by Julian Matthews

KUALA LUMPUR: Acer cofounder Datuk Dr Stan Shih advises Malaysia to focus on services in order to get ahead of the curve and compete in a globalised economy.

He said thinning margins in hardware manufacturing and the rise of China as the “factory of the world” has left manufacturing-dependent countries like Malaysia with little choice.

“The services industry is the next wave in economic development. In advanced countries, the services sector comprises two-thirds of their economies. There are higher returns and more opportunities in services.

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Acer vows to beef up venture capital fund

By Julian Matthews
Published: July 8, 1999 5:00 PM PDT

CYBERJAYA, Malaysia–Acer will enlarge its venture capital fund five-fold to US$1 billion from US$200 million in the next three years.

Chairman and CEO Stan Shih told CNET Asia that Acer currently has three funds spread over key markets in the US, Taiwan, Southeast Asia, Israel and Australia.

Shih said the funds were part of Acer’s strategy to move into Internet-related and software industries, particularly Intellectual Property (IP) and service sectors.

“This began a year ago and is the new direction of Acer on top of pure hardware manufacturing. We have to leverage on IP and services to enhance our competitiveness. That is critical. It is the future and we don’t have a choice. But it won’t be easy,” he said. He spoke to CNET Asia at the third international advisory panel meeting of the Multimedia Super Corridor project held in Malaysia.
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