Chong: Time for Sains to venture out of Sarawak, capture bigger ICT market share

KUCHING (Dec 16): It is time for the wholly state-owned Sarawak Information Systems Sdn Bhd (Sains) to expand its business operation off the shores of Sarawak, Stampin MP and Padungan assemblyman Chong Chieng Jen has suggested.

The Democratic Action Party (DAP) Sarawak chairman said Sains, since its incorporation way back in 1991, had received full support in terms of financial grants and information and communication technology (ICT) contract works, from the state government.

“Over time, it has grown in strength and is now the largest local ICT company in Sarawak.

“Therefore, the question now is whether Sains should continue to stay in Sarawak or venture out of Sarawak to capture the bigger market out there,” he said at the Sarawak ICT Association’s 23rd anniversary dinner here on Thursday.

Chong added that Sains should take the lead to venture outside Sarawak given that the state’s market for ICT products and services were limited, in view of its population and the relatively smaller economic size.

He opined that Sains ought to expand and compete against other ICT companies ‘over this very limited economic pie’.

“In economic terms, the continued operation of Sains in Sarawak may result in the unintended effect of ‘crowding-out’ for the other players in the market.

“As the state government, who is the highest policy-maker in the state and also the sole shareholder of Sains, it should come to terms that after more than 30 years of nurturing and supporting Sains, it is high time that Sains exits Sarawak market and ventures into Peninsular Malaysia or even overseas to make its mark and compete in an even larger market,” he said.

Chong said the Sarawak government’s ICT contract works, which had helped build up Sains, should now be given to other local ICT companies.

Towards this end, he said the government would then give more opportunities for other ICT companies in Sarawak to grow and build up their profiles.

“It will then help to nurture and create more big players in the state and thus a more robust ICT industry in Sarawak,” he stressed.

Chong also pointed out that the federal government had, under Budget 2024, set aside RM44 billion for the development of small and medium enterprises (SMEs).

Of the amount, he said RM20 billion was meant for the Government Corporate Guarantee Scheme and RM1 billion for the Industrial Digitalisation Transformation Scheme.

He added that RM914.2 million out of the amount was for SME automation and digitalisation facility, RM200 million for SME Technology Transformation Fund, RM126.7 million for soft loan for automation and modernisation, RM100 million for Corporate Venture Capital Fund, and RM30 million for the Agrofood value-chain Modernisation Programme.

“The information relating to all these grants, schemes and facilities and how to go about applying for them, are available on the websites of the respective implementation agencies.

“I hope the Sarawak ICT companies would strive to make full use of these funds and facilities to help develop their business and take their companies to a higher level,” said Chong.