Miti S Rm1bil Tech Revenue Goal Challenging But Achievable

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Deputy minister of investment, trade and industry Liew Chin Tong says the ministry aims to have 100 local technology firms achieve an annual revenue of RM1 billion each by 2030.PETALING JAYA: The government’s target of having 100 local technology companies each generating RM1 billion in revenue by 2030 is challenging, but feasible with effort, say major industry players.
The Federation of Malaysian Manufacturers (FMM) said focusing on strengthening the information and communications technology (ICT) ecosystem will be crucial in supporting the growth of tech companies to meet this goal.
“According to Bursa Malaysia’s portal, only five out of the 118 technology companies listed on the exchange have achieved more than RM1 billion in revenue so far,” FMM president Soh Thian Lai told FMT.
“In addition to providing financing assistance, advisory services and business guidance, the government should look into strengthening the ICT ecosystem and talent pool.”
Soh said the government should focus on specific measures such as developing local technology solution providers to aid small and medium-size enterprises (SMEs) in technology innovation.
“The government should also foster technology talent development by redesigning technical and vocational education and training (TVET) programmes for high-skilled jobs.
“It should also strengthen science, technology, engineering and mathematics education to produce sufficient and competent engineering graduates,” he said.
Malaysian Employers Federation president Syed Hussain Syed Husman also said Miti’s target was achievable despite being a challenge.
“This is based on the idea that the companies will be supported by the government, which will also continue to support the SMEs in research and development and innovation,” he said.
Syed Hussain said the Malaysian Investment Development Authority’s (Mida) work in Selangor, Kuala Lumpur, Melaka and Negeri Sembilan, particularly in aerospace and global services clusters, will have an impact in this area.
Economist Carmelo Ferlito said he remains “very sceptical” about setting quantitative targets, citing the challenge firms face in accurately predicting their future revenues.
“Therefore, it is quite unrealistic to think that we can really target a certain industry to count a certain number of players generating a certain amount of revenue.
“The target is not too big or too small, it is just impossible to determine. The economy is an evolving and ever-changing organism, and it does not respond to centrally planned targets,” the Center for Market Education CEO said.
However, he said, the commitment to create the appropriate ecosystem for private firms to flourish is positive.
“It needs to be translated into adequate policies that may benefit the entire economy and not only the high-tech sector,” he said.
On March 12, deputy minister of investment, trade and industry Liew Chin Tong said the ministry aimed to have 100 local technology firms achieve an annual revenue of RM1 billion by 2030.
Liew said the government will continue to support local companies in R&D and innovation by providing assistance to SMEs nationwide. - FMT

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