INTERNATIONAL COMPARISONS

Major exporters of ICT goods, 2003

10.5 INTERNATIONAL COMPARISONS

Regionally, Malaysia is one of the top three ASEAN countries in terms of penetration rates in main telephone lines, cellular phones and Internet subscription per 100 inhabitants as indicated in Figure 10.14. Malaysia’s position in these selected indicators, with the exception of cellular phone penetration, is well below the level observed in OECD countries such as US, UK, Australia and Japan.

Malaysia is one of the top three ASEAN countries in terms of main telephone lines, cellular phones and internet subscription per 100 inhabitants.

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Telecommunications equipment

Electronic components United States

23%

China 16%

Hong Kong SAR 9%

United States 9%

Singapore 8%

Malaysia 7%

Rep. of Korea 6%

Japan 6%

Taiwan PC 6%

Germany 5% Mexico 4%

United Kingdom 7%

Germany 6%

Hong Kong SAR 5%

China 5%

France 3%

Italy 3%Singapore 3%Netherland 3%

Spain 3%

United States 21%

United States Hong Kong 28%

SAR 10%

Germany 7%

United Kingdom 6%

Japan 5%

France 4%

Netherland 3%

Italy 3%Canada 3%

Singapore 3%

Germany 8%

Netherland 7%

Japan 7%

United Kingdom 6%

Hong Kong SAR 6%

China 5%

Singapore 4%

France 4% Mexico 3%

Computers and related equipment

Rest of the world 39%

Rest of the world 24%

Audio and video equipment Rest of the world 29%

Rest of the world 28%

Box 10.2: Major importers by category of ICT goods, 2003 (million USD)

Source : Information economy report 2005, UNCTAD.

10.4 E-COMMERCE

The substantial increase in e-commerce in Malaysia from US$1,376.7 million in 2002 to US$2,720.8 million in 2003, and US$5,228.3 million in 2004 demonstrates the growing acceptance of e-commerce in Malaysia (Figure 10.13). In terms of e-commerce activities, most of the e-commerce activities were business-to-business (B2B) based compared to business-to-customer (B2C) based. B2B activities made up almost 70% to 78% of the e- commerce market from 2002 until 2004, and these trends are expected to continue for the coming years.

E-commerce is rapidly gaining acceptance in Malaysia. Most of the e-commerce activities are B2B based.

396.6

982.1 1,378.7

684.9 1,128.6

4,099.7

5,228.2

2,035.9

2,720.8

0 1,000 2,000 3,000 4,000 5,000 6,000

B2C B2B Total

USDMillion

2002 2003 2004

Figure 10.13: Electronic Commerce in Malaysia, 2002-2004

Source: IDC September 2003; MSC Facts & Figures 2004

10.5 INTERNATIONAL COMPARISONS

Regionally, Malaysia is one of the top three ASEAN countries in terms of penetration rates in main telephone lines, cellular phones and Internet subscription per 100 inhabitants as indicated in Figure 10.14. Malaysia’s position in these selected indicators, with the exception of cellular phone penetration, is well below the level observed in OECD countries such as US, UK, Australia and Japan.

Malaysia is one of the top three ASEAN countries in terms of main telephone lines, cellular phones and internet subscription per 100 inhabitants.

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43.20 25.57 12.28 4.49 4.16 1.30 0.79 0.26 59.91 56.35 54.60 46.00 19.04 17.20

89.47 40.06 6.01 44.12 13.48 39.85 3.53 0.17 3.52 60.97 102.16 82.60 71.58 27.75 56.50

56.12 15.30 7.12 11.25 6.52 5.32 0.36 0.12 0.25 62.28 62.88 65.28 50.20 13.70 38.20

0 20 40 60 80 100 120

Singapore BruneiDarussalam Vietnam Thailand Indonesia Philippines LaoP.D.R. Myanmar Cambodia US UK Australia Japan WORLD Malaysia

ASEAN COUNTRIES OECD COUNTRIES WORLD M'sia

Per100inhabitants

Main telephone lines Cellular phones Internet users lines

10.59

Figure 10.14: Main Telephones Lines, Cellular Phones and Internet Users per 100 inhabitants in ASEAN and Selected OECD Countries, 2004

Source: Communication and Multimedia: Selected Facts and Figures (Q1) Malaysian Communications and Multimedia Commission, 2006

Figure 10.15 provides a comparative survey of Malaysia’s ICT tariffs in relation to that found in other countries. Malaysia is competitive against other ASEAN countries (Indonesia, Philippines, Singapore and Thailand) in terms of international fixed line costs and dial-up Internet costs, but not in terms of mobile telephones costs and broadband costs (compared to Singapore).

In comparison to other OECD countries, Malaysia is competitive in terms of dial-up Internet costs, international fixed telephones costs and mobile telephone costs. However, broadband costs in Malaysia are much more expensive compared to most of the OECD countries.

Malaysia’s ICT tariffs are competitive in most indicators except broadband costs where we are even more expensive than those found in most OECD countries.

Chapter 10

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International Fixed Telephone Costs, 2005

[USD per 3 minutes in peak hours to US (for US to Europe)]

3.08

1.64 0.70

1.63

1.10 0.87 0.84

0.65 0.64 0.45 0.33 0.23 0.15 0.71 0.00

0.50 1.00 1.50 2.00 2.50 3.00 3.50

Indonesia Thailand Singapore Japan New Zealand Finland Korea UK Australia US France Netherlands Germany Malaysia

ASEAN Countries OECD Countries M'sia

Countries

USD

Countries

USD

Countries

USD

Countries

USD

Figure 10.15: ICT Tariffs in Selected ASEAN and OECD Countries

Mobile Telephone Costs Prepaid Cellular Traffics, 2005 [USD per 1 minutes, local]

0.14 0.13 0.12 0.10 0.79

0.61 0.59 0.42

0.29 0.27

0.19 0.10 0.09 0.14

0.00 0.10 0.200.30 0.40 0.50 0.60 0.70 0.80 0.90

Philippines Singapore Thailand Indonesia France New Zealand Germany Netherlands Australia Japan Finland US UK Malaysia

ASEAN Countries OECD Countries M'sia

Dial-up Internet Costs, 2004 [Costs for 20 hours dial-up per month]

21.54 15.70

11.74 7.39

33.27 31.29

29.07 28.59 27.23 24.25

19.81

14.95 12.66 8.42

0 5 10 15 20 25 30 35

Indonesia Philippines Singapore Thailand Netherlands France UK Japan Finland Australia Germany US NewZealand Malaysia

ASEAN Countries OECD Countries M'sia

Broadband Costs [USD per 200 kbits/s per month]

18.61

10.05 9.87

6.37 4.42

3.53 3.36 2.71 2.21

0.25 0.09 13.46

02 46 108 1214 1618 20

France Finland Australia UK Germany US Netherlands New Zealands Singapore Korea Japan Malaysia

OECD Countries M'sia

Source: Communication and Multimedia: Selected Facts and Figures (Q1), Malaysian Communications and Multimedia Commission, 2006 and World Competitiveness Yearbook 2006

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International Fixed Telephone Costs, 2005

[USD per 3 minutes in peak hours to US (for US to Europe)]

3.08

1.64 0.70

1.63

1.10 0.87 0.84

0.65 0.64 0.45 0.33 0.23 0.15 0.71 0.00

0.50 1.00 1.50 2.00 2.50 3.00 3.50

Indonesia Thailand Singapore Japan New Zealand Finland Korea UK Australia US France Netherlands Germany Malaysia

ASEAN Countries OECD Countries M'sia

Countries

USD

Countries

USD

Countries

USD

Countries

USD

Figure 10.15: ICT Tariffs in Selected ASEAN and OECD Countries

Mobile Telephone Costs Prepaid Cellular Traffics, 2005 [USD per 1 minutes, local]

0.14 0.13 0.12 0.10 0.79

0.61 0.59 0.42

0.29 0.27

0.19 0.10 0.09 0.14

0.00 0.10 0.200.30 0.40 0.50 0.60 0.70 0.80 0.90

Philippines Singapore Thailand Indonesia France New Zealand Germany Netherlands Australia Japan Finland US UK Malaysia

ASEAN Countries OECD Countries M'sia

Dial-up Internet Costs, 2004 [Costs for 20 hours dial-up per month]

21.54 15.70

11.74 7.39

33.27 31.29

29.07 28.59 27.23 24.25

19.81

14.95 12.66 8.42

0 5 10 15 20 25 30 35

Indonesia Philippines Singapore Thailand Netherlands France UK Japan Finland Australia Germany US NewZealand Malaysia

ASEAN Countries OECD Countries M'sia

Broadband Costs [USD per 200 kbits/s per month]

18.61

10.05 9.87

6.37 4.42

3.53 3.36 2.71 2.21

0.25 0.09 13.46

02 46 108 1214 1618 20

France Finland Australia UK Germany US Netherlands New Zealands Singapore Korea Japan Malaysia

OECD Countries M'sia

Source: Communication and Multimedia: Selected Facts and Figures (Q1), Malaysian Communications and Multimedia Commission, 2006 and World Competitiveness Yearbook 2006