- Strong overall growth of 34.7% to $5billion - Growth rate of domestic sales tripled (33.5%) - Hardware sales enjoyed highest overall growth of 37.8% - Online information service and multi-media development are two hot ...
Singapore, 26 October 1995 | For Immediate Release
- Strong overall growth of 34.7% to $5billion
- Growth rate of domestic sales tripled (33.5%)
- Hardware sales enjoyed highest overall growth of 37.8%
- Online information service and multi-media development are two hot areas.
- Bullish outlook for 1995 and 1996 sales
The following is a summary of the findings of the Singapore IT Industry Survey 1995. The survey covers only sales of complete systems, peripherals, software and IT services to end-users. Manufacturing output and sales to distributors are excluded from this survey. More details are provided in the special edition of the NCB newsletter, IT FOCUS (attached).
1994 sales hit $5billion. Singapore's IT industry registered a high sales growth of 34.7% to end users in 1994, up from 23.2% in 1993. This is the highest growth rate achieved since 1989-90. The total turnover from sales of hardware, software and IT services to end users grew from $3.7 billion in 1993 to $5.0 billion in 1994. The high growth rate was due both to a strong export market and a high increase in domestic IT spending.
Growth rate of domestic sales tripled. Domestic and export sales in the IT industry grew at 33.5% and 36.3% respectively. The growth differential between these two markets was much lower compared to previous years. In 1993, export sales grew by 42.3% while domestic sales grew by 11.4%. The three-fold increase in the growth rate of the domestic market was the major factor for the faster overall industry growth over 1993-94. The high growth rate of the domestic market was due to the widespread adoption of client-server computing, mobile computing, networks and multimedia technology in businesses. In terms of contribution, the export market accounted for 44.2% of total IT sales. The domestic market continued to account for more than half of total IT sales.
Hardware sales enjoy fastest growth of 37.8%. The overall growth in sales of hardware, software and IT services were 37.8%, 29.4% and 24.9% respectively. The sales of hardware contributed 73.8% of total IT sales. PC sales accounted for 58.6% of total complete system sales. This reinforced the importance of PCs as the engine of growth for the Singapore IT Industry. For the local market, hardware and software sales grew by 37.5% and 26.3% in 1994 compared to about 9% in 1993. For the export market, hardware and software sales grew by 38.0% and 33.3% respectively. Export of IT services dropped from 37.5% to 22.7%.
Hot areas: on-line information service and multi-media development. About 47% of the firms surveyed are expected to engage in on-line information services in 1995/96. This shows a growing demand for on-line content. As expected, the number of organisations involved in multi-media tools and content development will increase significantly over the next two years. Currently, about 25% of the companies surveyed are already developing multi-media tools and education/training content. Another 40% of them plan to do so by 1995/96.
Bullish expectations for 1995 and 1996. Most companies surveyed expected the good growth to carry into 1995 and 1996, with an overall growth projection for the IT industry sustaining at over 30%. The domestic and export markets are expected to grow equally. Hardware sales remain the fastest growing, followed by software and IT services. The main driving force behind such high growth would be the 1995 GDP growth of 8.7% in the Asia Pacific economy (outside of Japan). Businesses and homes in the Asia Pacific will continue to invest heavily in IT.
About the Survey. The IT industry survey was launched in June 1995 to capture the performance of IT sales to end-users in the 1994 calendar year. The survey this year achieved an excellent response rate of 26%, with more than 330 companies participating.