After being hit hard by the global financial crisis a couple of years back, Malaysia’s economy has been steadily picking up. However, several economic and political factors have been nudging it toward a slowdown, and these have been exerting their effect on the country’s security market as well. Based on numbers rel
After being hit hard by the global financial crisis a couple of years back, Malaysia's economy has been steadily picking up. However, several economic and political factors have been nudging it toward a slowdown, and these have been exerting their effect on the country's security market as well.
Based on numbers released by the Department of Statistics Malaysia, the country experienced a growth of 4.0 percent in Q2 2016, which many sources state is the slowest growth rate since 2009. This can be partially attributed to the country's susceptibility to global drops in oil and gas prices, and is clearly reflected in the number as well as the delay in progress of various security projects in both the public and private sectors.
The weakening Malaysian ringgit has also proven to be a challenge for local security companies as some of them are forced to absorb the losses in carrying out projects that have been signed in prior years or to stay price-competitive, especially in a time where an increasing number of international entrants – most notably Chinese brands – are aiming to secure themselves positions in the local market scene.
Despite this, the security industry is seeing an increase in need in several verticals and this is due in part by better customer knowledge and education. Companies are experiencing steady business from maintenance of existing systems and from customers that are asking for better image quality and thus, making the move from analog to HD analog or IP systems.
An increase in demand for integration, such as integrated access control and video surveillance systems, is currently being seen in the country, in places like residential lots and high-rise buildings as Malaysia's construction sector continues to grow at a rapid rate. Furthermore, local distributors mentioned that commercial and retail businesses are now more vigilant about security. Analytics is a trend that is picking up speed in the local market as enterprises aim to increase return on investment by using their systems for business intelligence, rather than just mere surveillance.