The evolution of Malaysia’s technology landscape has been largely positive, as government support and local innovation has led to Malaysia gaining a stronger foothold in the region as a technology hub.

One of the major global technology players from Malaysia, Infomina Berhad announced a partnership with global technology provider Software AG to become Malaysia’s Premier Partner. To give you some idea on scale, Software AG has provided solutions to over 10,000 organisations worldwide and will be using this partnership to expand its reach in the Malaysian market.

To find out more, we spoke to Aju Murjani, Head of Southeast Asia at Software AG, about the partnership and what it means for the Malaysian technology landscape.

Software AG has noticed significant changes in the way IT departments provide technology to businesses in recent years. Many businesses now use cloud applications, infrastructure, and development platforms. As a result, the traditional data centre is evolving into a hybrid environment that includes both on-premises and cloud components, as well as third-party leased applications.

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This has made managing and connecting these distributed systems more difficult. These market changes have created uncertainty, prompting businesses to question the significance of APIs, microservices, cloud platform services, and continuous delivery over the next three to five years.

The collaboration between Infomina and Software AG aims to provide advanced integration technologies that will assist its clients in overcoming complex integration challenges and staying ahead of the changing digital landscape. Infomina can provide their clients with credible capabilities such as application, cloud, and big data integration, API management, master data management, B2B integration, and managed file transfer by leveraging Software AG’s webMethods.

Infomina and Software AG signing ceremony
Infomina and Software AG signing ceremony

Congrats on the latest partnership with Infomina. Could you share what this means and how you plan to work with them?

As the Premier Partner in Malaysia, Infomina will work with Software AG solutions, including products across API and Integration management, to the growing Malaysian market. 

As a leader in the hybrid integration market, Software AG offers a comprehensive solution that addresses the opportunity for enterprises to get connected, including Integration Platform-as-a-Service (iPaaS) and API offerings that can be seamlessly integrated into existing tech ecosystems. As businesses adapt their development and operations methodologies, Software AG and Infomina are dedicated to delivering solutions that meet their needs and drive their success.

The partnership with Infomina Berhad as our Premier Partner in Malaysia will also enable Software AG to continuously expand its regional presence and customer engagements.. Combining the extensive experience and expertise of both companies will allow us to provide end-to-end technology solutions to our regional customers. 

The partnership between Software AG and Infomina is particularly relevant to Malaysia’s current digital transformation efforts. As Malaysia continues to move towards a more digitally-driven economy, businesses are looking for innovative solutions to modernize their processes and stay competitive. With Software AG’s comprehensive digital solutions and Infomina’s expertise in implementing these solutions within existing tech ecosystems, Malaysian businesses can take advantage of future-proven technologies and experiences to maximize revenue streams, improve productivity, and drive growth through innovation. This partnership is a step forward in supporting Malaysia’s efforts to become a digital leader in Southeast Asia.

What are the key trends and emerging technologies that are likely to shape the future of Malaysia’s tech sector?

Several key trends and emerging technologies are likely to shape Malaysia’s technology landscape. According to the IDC Asia/Pacific Cloud Survey 2021, 86% of organizations in Malaysia had higher than regional average increases in cloud usage. Building capabilities in cloud cost visibility and measurement capabilities will benefit cloud services advancement in more mature activities and environments.

Malaysia aims to transform its crucial economic sectors like manufacturing to be globally competitive through policies such as the National 4IR Policy and Industry4WRD, aiming to boost productivity by 30% before 2030. The application of these technologies is not only beneficial for the economy but also for the improved quality of life for Malaysians. 

In addition to that, the Malaysian government is promoting the digitalization of public services to create a highly skilled and digitally enabled nation with a competitive digital economy under the MyDIGITAL blueprint. This includes initiatives such as the Malaysia Government Integrated Data Exchange and the ePermit system, which aim to integrate data from various government agencies and enable online permit applications for businesses. The digitalization of public services is expected to improve efficiency, reduce costs, enhance access to government services, and increase productivity and innovation in Malaysia.

In the finance sector, the Malaysian government has been promoting digital banking to increase financial inclusion, with Bank Negara Malaysia issuing digital banking licenses in 2020. Digital banks offer banking services through mobile apps and online platforms, enabling customers to perform transactions and access financial services conveniently. Digital banking is expected to enhance the accessibility, affordability, and efficiency of financial services for Malaysians, particularly those in underbanked and underserved areas.

Where do you see the most opportunity for growth in Malaysia?

We see significant opportunities for growth in Malaysia’s financial services sector, which is undergoing rapid digital transformation. Banks and financial institutions invest heavily in new technologies to improve efficiency, enhance customer experience, and remain compliant. Another area of opportunity is the manufacturing sector, where Industry 4.0 technologies such as IoT and AI drive innovation and productivity gains. 

COVID also fuelled the healthcare sector. With an ageing population and rising healthcare costs, there is increasing demand for innovative solutions to improve healthcare outcomes while reducing costs. This has led to the development of new technologies and services in areas such as telemedicine, digital health, and health analytics. 

Lastly, the Malaysian public sector is evidently driving citizen centricity by leveraging technologies such as cloud and AI. The government has been adopting cloud computing to provide digital services, manage data, and improve collaboration among government agencies, such as the MyGovCloud initiative.

What about Southeast Asia?

The World Economic Forum predicts that ASEAN will become the world’s fourth-largest economy in the next decade, with 70% of its population joining the middle class, resulting in a consumer market worth $4 trillion. The new economy is expected to be a major theme, with a compound annual growth rate of 33% between 2015 and 2019, reaching a GMV of $100 billion in 2019 and projected to reach $300 billion by 2025. 

Southeast Asia is a rapidly developing market with diverse growth opportunities in multiple industries. ASEAN’s labour force is currently the third largest in the world, and its middle class is projected to more than double from 135 million to 334 million by 2030, making it a powerful engine for long-term economic growth.

Each market has its own set of opportunities and challenges, but it is clear that the opportunities far outweigh the challenges. 

In many emerging economies like the Philippines or Indonesia, the growth in the middle class means a significant increase in consumer purchasing power. Technology usage is also increasing across the region, with both business organizations and consumers increasing their online spending – this helps spur opportunities for growth in those markets around digital payments, logistics, and more. 

Governments in ASEAN are promoting digital solutions, especially fintech, to develop the banking and insurance sectors and meet the needs of the dispersed farming community. Digital technology has a bright future in the region, driven by both governments and consumers.

Southeast Asia’s e-commerce presents a promising opportunity with the market estimated to reach a massive size of $210 billion by 2025. Specifically, the Indonesian e-commerce market is expected to soar, with online retail sales predicted to hit $95 billion from $25 billion in 2019. Thanks to the expanding middle class and wider internet accessibility, Indonesia is projected to account for more than 45% of the region’s e-commerce market by 2025. 

As a result of this growth, numerous potential opportunities exist for businesses involved in online marketplaces, payment gateways, digital banks, financial management platforms, and last-mile delivery companies.

Another area of growth is the development of the emergence of smart cities. Smart city technologies, such as IoT, big data analytics, and cloud computing, can enable governments in Southeast Asia to improve urban planning, transportation, energy management, and waste management. For example, Singapore has been a leader in the adoption of smart city technologies, with initiatives such as the Smart Nation Programme, which aims to leverage technology to enhance the quality of life for citizens. The program includes initiatives such as intelligent transportation systems, smart homes, and smart healthcare solutions.
Finally, manufacturers in Southeast Asia can benefit from a broader digital transformation, which involves leveraging technology to transform business processes, improve customer experiences, and enhance competitiveness. This can involve adopting cloud computing, implementing digital platforms, and leveraging big data analytics to gain insights into customer behaviour and preferences. For example, The Thai government has launched the Thailand 4.0 initiative, which includes a focus on digital manufacturing, with the aim of transforming Thailand’s manufacturing sector into a smart industry by leveraging advanced technologies.

What’s next for Software AG in Southeast Asia?

Software AG is committed to empowering Southeast Asian businesses to achieve their digital transformation goals. On the global mission to keep enterprises connected, SoftwareAG uniquely provides Hybrid deployment options which are imperative for organizations that need to leverage their current technology landscape and cloud technologies. The company plans to focus on enhancing its presence in the region by investing in strategic partnerships, such as the one with Infomina. These partnerships will help Software AG better address and solve the needs of its customers in Southeast Asia. 

In addition to building partnerships, Software AG aims to collaborate with the ecosystem of Hyperscalers like AWS, and Microsoft along with local startups to promote innovation and drive growth in the area. By fostering a culture of innovation and creativity, the company hopes to support the development of cutting-edge technologies and solutions that can benefit businesses in Southeast Asia.

The company is also expanding its team across the region,  with the goal of enhancing its presence and deepening relationships with customers in the country. Finally, Software AG has acquired StreamSets to accelerate its growth in hybrid integration and strengthen its position in the data integration market. The acquisition aligns perfectly with Software AG’s existing hybrid integration portfolio and will drive cross-selling opportunities, joint iPaaS offerings, and profitable stand-alone growth for StreamSets. This acquisition supports Software AG’s organic business growth and ambitions for 2023 and beyond.