The intersection of technology, media and telecommunications has never been more complex or more challenging in these extraordinary times. And this has gotten more pronounced during the COVID-19 pandemic. Businesses face various challenges including financial and operational issues arising from COVID-19 and the Movement Control Order (MCO) implemented by the government. Learn more about the implications of COVID-19 to the technology, media and entertainment, and telecommunications sectors in these publications.
Amidst the COVID-19 pandemic, the technology industry in Malaysia managed to continue production during the Movement Control Order (MCO) period with a minimal workforce. It is also expected to benefit from demand recovery from China and depreciation of the Ringgit against the US dollar - this could partially offset the negative impact of the pandemic.
Despite the short-term negative outlook, emerging technologies like 5G, IoT, data centres, high-performance computing, and intelligent edge could spur investments and recovery in the technology sector.
The COVID-19 pandemic has not spared the media and entertainment industry. In the first three months of 2020, traditional media advertising expenditure dipped by 9% with newspapers reporting the biggest losses, dropping 24%, according to Nielsen.
The uncertain outlook will continue to cloud the industry for the rest of the year as advertisers themselves struggle with dwindling businesses. The postponement of international events, such as Euro 2020 and Tokyo Olympics, has resulted in advertisers either having to defer or cancel their advertising campaign commitments.
The COVID-19 pandemic has placed the telecommunications industry in a unique situation. On a positive note, as a result of the Movement Control Order (MCO), there was a surge in internet demand from households due to people working from home, video conferencing, e-learning, online shopping and consuming over-the-top media (OTT). The Malaysian Communications and Multimedia Commission (MCMC) reported that broadband Internet traffic increased 23.5% during the first week of MCO (March 16 - 22).
However this has posed a challenge to telecommunications companies and Internet Service Providers (ISPs) who had to work hard to reduce the strain on residential connections.