OUTLOOK & PROSPECTS Worldwide IT spending is expected to grow 8% year-on-year to US$5.06 trillion in 20243, according to the latest forecast by Gartner, Inc. The forecast would likely put worldwide IT spending on track to surpass US$8 trillion well before the end of the decade. With spending on IT services on track to grow by 9.7% to eclipse US$1.52 trillion, this category is on pace to become the largest IT market sector that Gartner tracks. 2023 Spending 2023 Growth (%) 2024 Spending 2024 Growth (%) Data Center Systems 236,179 4.0 259,680 10.0 Devices 664,028 -9.1 687,943 3.6 Software 914,689 12.6 1,042,174 13.9 IT Services 1,385,120 6.1 1,519,928 9.7 Communications Services 1,487,161 3.3 1,551,288 4.3 Overall IT 4,687,177 3.8 5,061,013 8.0 Source: Gartner (April 2024) In Malaysia, the digital economy is targeted to contribute over 25.5% to the nation’s GDP by 20242, reflecting the strategic importance of digital technologies in spurring economic growth and innovation. Building upon our track record in delivering nationally critical IT projects, we aim to leverage on our strategic partnerships forged with leading technology companies to deliver innovative solutions that accelerate digital transformation. We are expanding our service offerings by strengthening capabilities and seizing opportunities in new technology areas such as IoT, Big Data and analytics. Our focus is on securing large-scale IT and digitalisation projects in both public and private sectors, locally and globally, with a target on the Middle East and North Africa region for smart city development, e-government services and system integration projects. Reinforcing our position as a leading player in trade facilitation, we are committed to roll-out new digital solutions that simplify trade processes and enhance ease of doing business for the trading community. Sources: 1. IDC Research, IDC’s Forecast for Worldwide IT Spending in 2023 Continues to Slowly Trend Downward - https://www.idc.com/getdoc. jsp?containerId=prUS50554323 2. MIDA, Malaysia raises 2023 digital investment target to RM80b - https://www.mida.gov.my/mida-news/malaysia-raises-2023-digitalinvestment-target-to-rm80b/ 3. Gartner, Planning for GenAI Initiatives is Helping to Drive IT Spending in 2024 and Beyond - https://www.gartner.com/en/newsroom/pressreleases/2024-04-16-gartner-forecast-worldwide-it-spending-to-grow-8-percent-in-2024 Integrated Report 2023 89
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