KUALA LUMPUR (Apr 22): The National ICT Association of Malaysia (PIKOM) has welcomed the government’s decision to reduce fixed broadband rates between 10% and 57% as announced on April 15 and said the move would have a catalytic effect on eCommerce while spurring the growth of the local economy

In a statement today, PIKOM chairman Cheah Kok Hoong said broadband connectivity was akin to the lifeblood of the ICT industry and society as a whole.

Cheah said that with the reduced broadband rates by up to 10% and 57% in Malaysia, PIKOM believed that the more affordable movement of content, data and transactions will boost the overall advancement of the local economy.

“Businesses will be encouraged to adopt and advocate new IT services and solutions, and jump onto the eCommerce bandwagon.

“For individuals, cheaper broadband will spur contribution and participation in the K-economy,” he said.

Cheah said the expected growth in broadband penetration and adoption rates would also lead to greater adoption of ICT especially among SME and SMI businesses, adding this was vital considering that the segment was responsible for 31% of National GDP and employed close to 56% of the local workforce.

“With the Malaysian Government looking to increase GDP contribution of the SME sector to 40% by 2020, the proposed move to reduce broadband rates is timely,” he said.