Singapore to lead APAC's IT growth, says IDC
Tao Ai Lei, 10-Jul-2001
Singapore's IT market will have the highest growth rate in Asia-Pacific over the next five years (2000-2005), at a blistering pace of 13.2%. This is in contrast to its keen rival Hong Kong with 9.8% growth, according to IDC Asia-Pacific's latest reports.
IDC also ranks Singapore as the highest and Hong Kong as the 5th highest in Asia/Pacific (excluding Japan) in terms of Internet user penetration. Key drivers in both countries are robust telecommunications infrastructures and high PC penetration rates.
"Positive performance in the Singapore technology sectors in 2000 has been indicative of a thriving economy but also the government's fervent commitment to further develop its telecommunications and IT markets," said Stephanie Li, senior analyst for IT Spending Research in IDC. "Already recognised as a mature IT market, Singapore is now striving to establish itself as an IT and telecommunications hub in Asia-Pacific".
In April 2000, the Singapore telecommunications market was fully deregulated, a plan that was originally in the pipeline for another two years. In addition, the number of government initiatives and monetary aid to develop the technology sector in 2000 have been plentiful.
In Hong Kong, the HKSAR Government also recognises the importance of expanding its technology sector to compete regionally and globally and it has taken decisive measures to drive growth both in the telecommunications and IT market. HKSAR Government initiatives have been in the form of huge government projects, investment funds to the private sector and tackling Internet security issues.
Li commented, "The Cyberport and Science Park projects have been symbolic developments towards establishing Hong Kong as a technology hub in the region." Further commitment to technology developments from the HKSAR Government was shown when the Hong Kong telecommunications market was also fully liberalised in early 2000, giving rise to new licences to further strengthen its already robust telecommunications infrastructure and enhance its broadband services.
Other key findings from both reports show that IT investments are currently largely dominated by spending in the hardware market. In 2000, IT spending in Singapore on hardware products made up over 50% of the total IT market with the remaining invested in package software and IT services. In Hong Kong, hardware products made up over 70% of total IT spending. Major vendors dominating the hardware market for both countries are IBM, Hewlett Packard and Compaq, combining to represent over 40% of the market in Singapore and 50% in Hong Kong.
Amid this positive IT landscape, however, the full effects of the US economic slowdown and its effect on the IT budgets of businesses remains to be seen.
For Singapore, as trading with other ASEAN countries bears great significance, the country is also dependent on the performance of its neighbouring countries and investor confidence in the region.
For Hong Kong, after 156 years of British ownership, the HKSAR is still in a period of adjustment. Nevertheless, the mainland is one of Hong Kong's largest trading partners and China's WTO participation and economic reform is expected to generate further opportunities for Hong Kong. Given that China is expected to account for 35% of Asia/Pacific (excluding Japan) IT market by 2005, the potential benefits for Hong Kong's IT market as a result certainly look promising.
More details are available from IDC's Asia/Pacific (excluding Japan) reports, "Singapore IT Market Overview and Forecasts" and "Hong Kong IT Market Overview and Forecasts". |
