BUDGET 2009, which was presented in Parliament last week, received mixed response from the local information and communications technology (ICT) fraternity.

Malaysians tuning in to the Budget 2009 announcement last week, which drew mixed response among the ICT community.

Some expressed disappointment over the lack of incentives specific to the industry; others felt that the Budget has what it takes to propel greater adoption of ICT across all industries, spurring a more vibrant ICT environment.

However, Budget 2009 pales in comparison with previous Budgets. For example, it did not fulfil the industry’s wish to have more incentives to boost personal computer and Internet penetration into homes and rural areas.

With the rise in cost of equipment, removal of import duty and sales tax exemption on broadband equipment and consumer-access devices would help to reduce infrastructure costs and encourage more efforts to narrow the digital divide in the country.

There are other critical areas not addressed in the Budget. These include incentives to boost PC literacy and promote Malaysia as an outsourcing hub.

Nevertheless, not all is bad with Budget 2009. The small and medium-sized enterprise segment, for example, is one obvious beneficiary. The availability of funding through Bank Negara to assist the modernisation of SME operations, especially for the purchase or upgrade of machines and equipment, will encourage the adoption of business-critical technology.

The five-year tax exemption offered to venture capitalists is also expected to attract more VCs to provide funding to local startups. Then there are the incentives to help meet the growing demand for knowledge workers and development of quality human capital in the country.

In all, Budget 2009 might not have met every expectation. But the local tech industry has always been able to manage on its own. The goodies announced should help encourage industry players to strive harder to meet the challenges in the coming year.