Industry Overview

8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (prepared for inclusion in this Prospectus) o VITAL FACTOR CONSULTING Creating Winning Business Solutions Vital Factor Consulting Sdn Bhd (Company No.: 266797.T) 75C & 77C Jalan 5522/19 Oamansara Jaya 47400 Petaling Jaya Selangor Darul Ehsan, Malaysia Tel: (603) 7728-0248 Fax: (603} 7728-7248 Email: enquires@Vitalfactor.com Website: WYtrW.vitalfaC\or.com 6 October 2011 The Board of Directors iDimension Consolidated Bhd 3’d Floor, 17 Jalan Ipoh Kecil 50350 Kuala Lumpur
Dear Sirs and Madam Independent Assessment of the IT Industry Focusing on the Development and Provision of Manufacturing Software Solutions, particularly for the Semiconductor Industry
The following is an independent assessment of the IT Industry focusing on the Development and Provision of Manufacturing Software Solutions in Malaysia prepared by Vital Factor Consulting Sdn Bhd for inelusion in the prospectus of iDimension Consolidated Bhd (herein together with all or anyone or more of its subsidiaries will be referred to as “iDimension Group” or the “Group”) in relation to its proposed listing on the ACE Market of Bursa Malaysia Securities Berhad. iDimension Group is primarily a developer and provider of manufacturing software solutions. Most of the manufacturing software solutions that iDimension Group provides are proprietary or customised solutions, while a small proportion are third-party solutions. iDimension Group supports its customers by providing after-sales software system maintenance services, and supplies its customers with other IT products and services that are related to the Group’s manufacturing software solutions. The independent assessment shall place some emphasis on software solutions in relation to the Semiconductor Industry, as most of iDimension Group’s revenue was derived from manufacturing software solutions and other services and products provided to operators in the Semiconductor Industry. iDimension Consolidated Bhd Page 1 of30 Industry Assessment 87
8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions I ECONOMIC PERFORMANCE OF MALAYSIA I.1 Economic Performance • The performance of the Malaysian economy has a direct impact on businesses operating in Malaysia. A growing economy will provide the basis for business growth
• Malaysia’s real GDP had been 8%’ growing every year from 2006 6% to 2008. The Malaysian economy registered growth of 4% 4.8% in 2008, amidst the 2% international financial turmoil and sharp deterioration in the 0% global economic environment. ·2%

 

-1.6% Robust domestic demand, in Source: Bank Negara Malaysia particular private consumption and strong public spending, Figure 1. Real GDP Growth supported growth during the year. • While external demand was strong in the first half of2008, the sharp and rapid deterioration in the global economic conditions as well as major correction in the commodity prices in the second halfled to a contraction in Malaysia’s export performance in the latter part of the second half of the year.
• As for 2009, Malaysia’s real GDP for the first quarter contracted by 6.2% compared to the same period in the previous year. Howcver, the implementation of fiscal stimulus measures by the Malaysian Government led to the subsequent recovery in the last quarter of 2009. Overall, Malaysia’s real GDP for 2009 contracted moderately by 1.6%.
• The Malaysian economy registered real GDP growth of 7.2% in 2010. The growth was driven by expansion in domestic demand, which was supported by higher private and public sector spending.

iDimension Consolidated Bhd Page 2 af30 Industry Assessment 88 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions • During the first quarter of 2011, real GDP growth was 4.9%. The expansion in domestic demand was supported by higher private sector spending. External demand also recorded a stronger growth during the quarter, mainly as a result of regional demand for commoditics and non­electrical and electronic products.
• Real GDP growth for the second quarter of 2011 was 4.0% following a weaker external environment. However, overall growth continued to be underpinned by the sustained expansion of private domestic demand. This was further supported by strong exports of commodities and resource-based products given favourable regional demand and high commodity prices.

(Source: Bank Negara Malaysia) 1.2 Business Couditions 30%• The level of confidence of the 200 1I j_DCI Poinla I 13,9%_GI”QloI’\h~ Malaysian economy within ! 4.4% 6% -5.1 0%the business community 150 -12.3% 124.0 11 1133 114.0provides an indication of the 104.9 99.5
·30′)i.robustness and likely trend of 100 business activities III Malaysia A strong business
-60% confidence level is expected to boost economic activities o
lQtrl0 2OIrl0 3Qttl0 4Qtr10 lQtrl1 20lrl1that will benefit businesses in Malaysia. Source.’ Malaysian Institute ojEconomic Research • In the first quarter of 2010, thc Business Condition Index Figure 2. Busiuess Condition Index (BCI) grew by 4.4% to reach I24.0 points. The growth is attributable to the continued increase in domestic order, expected production and expected export sales. • The BCI contracted by 3.5% to 119.6 points in the second quarter of 2010. The contraction was due to quarter-on-quarter losses recorded by sales, production, new domestic orders, new export orders and capacity utilisation sub-indices. Nevertheless, the BCI remained above its 100-point threshold.
• In the third quarter of 2010, the BCI registered a contraction of 12.3% to 104.9 points. Production, new local and export orders, and expected production and export sales declined significantly, although capacity utilisation of businesses grew marginally.

iDimension Consolidated Bhd Page 3 of30 Industry Assessment 89 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions • The BCI declined further by 5.1 % to 99.5 points in the fourth quarter of 2010. Businesses recorded lower sales, expected export sales was also lower while capacity utilisation of businesses remained stable. However, production and expected production increased marginally.
• After declining for three consecutive quarters, the BCI recovered and surpassed its 100-point threshold in the first quarter of 20II by reaching 113.3 points, representing a growth of 13.9%. Growth was driven by higher sales and new export orders, as well as positive expectations for production and export sales.
• In the second quarter of 2011, the BCI grew marginally by 0.6% to

114.0 points. Although new domestic orders and production increased while export orders remained stable, there were concerns over future production and export sales. (Source: Malaysian Institute ofEconomic Research) 2 OVERALL INDUSTRY STRUCTURE 2.1 Structure of the IT Industry • The IT Industry is depicted as follows:
• The hardware sub-sector is concerned with physical computing

 

~  Tela- IT  Intarnet-Based  ~ ,-_s_o_ftw_a_,_a_J  …..c_o_rn_rn_u_n_ic_a_tio_n_s J  …..__S_e_lV_ic_e_s_ J  …..__S_e_lV_ic_es_–‘  o ID/mension Group operates in these sub-sectors.  Figure 3.  Strueture of the IT Industry
related devices and is segmented into three major subsections: Processor hardware such as mainframes, midrange systems, desktop computers, notebooks, servers and others; iDimension Consolidated Bhd Page 40f30 Industry Assessment 90 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions Input/output devices such as keyboards, scanners, desktop monitors, printers, speakers and others; Storage devices such as solid-state drives, optical disks and hard disks.
• The software sub-sector involves encoded programs that run on
hardware. There are four major types of software: Operating systems; Application software; Systems and development tools; Platforms.
• The telecommunications sub-sector involves the transmission of

signals to enable communications, and includes: Designing and manufacturing communications equipment such as hubs, routers, switches, bridges and modems; Maintaining and operating data networks, including copper wire, fibre optic and wireless networks. • The IT services sub-sector includes: Software development; Systems/network integration; Facilities management/outsourcing; Consulting and professional services; Education and training; User support services; Sales and distribution.
• The Internet-based services sub-sector includes, among others: Cloud computing services, including Software-as-a-Service, Infrastructure-as-a-Service, and Platform-as-a-Servicc; Content, including content in the form of video, audio, still images and text; Platforms, including social networking platforms, e-mail platforms and image posting platforms; Security, such as anti-virus and anti-spam software; e-commerce websites.
• The manufacturing software solutions developed by iDimension Group are categorised as application software. iDimension Group primarily operates in the software sub-sector of the overall IT Industry.

iDimension Consolidated Bhd Page 5 of30 lndustry Assessment 91 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions

 

2.2 Types of Software • In general, the main classes of software are depicted in the following diagram:
Systems and Development Platforms Tools o iDimension Group develops and provides this type of software product. Figure 4. Types of Software • System software refers to software that is designed to operate computer hardware, and to provide and maintain a platform for running application software. The main types of system software are: Computer Basic Input/Output System (BIOS) and device firmware; The operating system, which allows the various components of a computer to work together, serves as the interface between the user and the hardware, and provides a platform to run other software. The main operating systems that are currently in use are Microsoft Windows, Mac OS X, and Linux; Utility software, which is used to analyse, configure, optimise and maintain the computer. • Application software is a type of software that is designed to perform one or more tasks for users. Application software can be programmed to manipulate information in the form of text, numbers, graphics, sound, still images and moving images or some combination of these elements, depending on the task for which it is designed. Some examples of application software include manufacturing software solutions, accounting software, word processors, spreadsheet programs, engineering software and graphics software. iDimension Consolidated Bhd Page 6 of30 Industry Assessment 92 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions • Systems and development tools (also known as programming software) provides tools to assist a programmer in writing computer programs. Examples of systems and development tools include programming languages and compilers, performance analysis tools, debugging tools, static analysis and formal verification tools, correctness checking tools, memory usage and optimisation tools, and application build tools.
• Platform software is a type of application software that serves to facilitate communications, collaboration or sharing of information among multiple users. It differs from the traditional application software in that the main function of platform software is to facilitate activities rather than process information. Some examples of platform software includes social networking platforms like “Facebook”, video sharing platforms like “YouTube”, photo sharing platforms like “Picasa” and others like emails and blogs.
• iDimension Group is involved in developing manufacturing software solutions, which are categorised as application software.

 

2.3 Manufacturing Software Solutions • In general, manufacturing software solutions may be categorised according to the type of manufacturing operations that it is designed to manage. The main types of manufacturing software solutions are depicted in the following diagram: Manufacturing Software Solutions Discrete Manufacturing
Process Manufacturing
iDimens/on Group devefops and provides o manufacturing software solutions for tMs type of manufacturing operation. Figure 5. Types of Manufacturing Software Solutions iDimension Consolidated Bhd Page 7 of30 Industry Assessment 93 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions • In discrete manufacturing, manufacturing operations are concerned with producing output that can be measured and tracked as distinct units, rather than by weight or volume. The products are produced individually, and as a result may be labelled and tracked individually. Examples of products that are produced by discrete manufacturing include semiconductor and electronic devices, cars, motorcycles, trucks, airplanes, consumer electronic devices, medical devices, clothing, footwear and toys.
• In process manufacturing, manufacturing operations are concerned with producing output that is measured by weight or volume, and which cannot be labelled and tracked individually. The products are produced continuously, or in batches. Petroleum refining, chemical production, pharmaceutical production, and food processing are examples of process manufacturing.
• The primary differences between manufacturing software solutions that are designed for discrete manufacturing operations and process manufacturing operations lie in the tracking methodology that is employed, and the factors that are tracked.
• In discrete manufacturing, products may be tracked individually as they make their way through the manufacturing process. The factors that may be tracked include raw materials and routing.
• In process manufacturing, the product is normally tracked as batches. The factors that may be tracked include formulation, routing, ingredients, units of measure, and pricing.
• iDimension Group is currently focused on developing manufacturing software solutions for discrete manufacturing operations. As part of its future plans, the Group intends to develop manufacturing software solutions for process manufacturing operations.

 

2.4 Manufacturing Software Solutions for the Semiconductor Industry • Most of iDimension Group’s revenue is currently derived from manufacturing software solutions that are developed for operators in the Semiconductor Industry. iDimension Consolidated Bhd Page 8 of30 Industry A.<;:wssmenl 94 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d)
o VITAL FACTOR CONSULTING Creating Winning Business Solutions • In general, the Semiconductor Industry employs discrete manufacturing tcchniques in most of its manufacturing processes. Manufacturing software solutions that are catered to the specific requirements of the Semiconductor Industry have heen developed to assist operators enhance their efficiency and competitiveness.
• Semiconductor manufacturing has become increasingly complex with advances in technology, Some of the operational issues that manufacturing software solutions help semiconductor manufacturers address may include:

Inventory management; Production scheduling to efficiently manage conflicting customer demands and to maximise machinery and equipment usage; Forward and backward product traceability to enable operators to handle complex product tracking issues; Quality control management to ensure that all the required tests and checks are carried out; Data collection and analysis to help operators to improve their manufacturing efficiency and rectify problems; Operators with multiple production facilities may want to integrate individual factory’s data collection and managemcnt across a standard platform; Customer billing.
• Manufacturing software solutions for the Semiconductor Industry have developed in line with the increasingly complex demands of the industry. Manufacturing software solutions for the Semiconductor Industry typically comprises individual modulcs that may be integrated with one another. The individual modules are normally developed to perform a specific task.
• In some instances, users of the manufacturing software solutions may make use of modules developed by more than one developer.

 

iDimension Consolidated Bhd Page 90130 Industry Assessment 95 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions

2.5 Manufacturing Software Solutions Supply and Value Chain • iDimension Group’s position within the supply and value chain for the development and provision of manufacturing software solutions is depicted in the following diagram: IT Hardware  Software  Development  [Core. Software  )  System Requirements  Implementation
Specification  [  Modules  )
D iDimenslon Group are involved in these activities. Figure 6. Value Chain for Manufacturing Software Solutions • In the software development phase, software developers design and develop the computer programs that are used to run the manufacturing software solution. The software developer may develop the core software that runs the manufacturing software solutions.
• The software developer may also develop software modules that work with manufacturing software solutions developed by other software developers, and perform specific tasks.
• In the systems requirements specification phase, the manufacturing software solution is adapted to meet the business needs of individual manufacturing facilities. This is necessary as each manufacturing facility is different, and some degree of customisation is usually required.
• The manufacturing software solution is then implemented at the manufacturing facility. Implementation normally involves installation of the manufacturing software solutions, IT hardware and data collection equipment.

 

iDimension Consolidated Bhd Page 10 of30 Industry Assessment 96 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions • The manufacturing software solution will nonnally require after-sales maintenance and support to ensure that it perfonns efficiently with minimum downtime. Users may also upgrade their manufacturing software solution to improve or expand its functionality.
• iDimension Group is positioned as an integrated one-stop provider of manufacturing software solutions. The Group has developed a range of proprietary core software, as well as customised modules for use with third-party manufacturing software solutions.
• The Group carries out system requirements specification to customise its manufacturing software solutions to meet individual customer’s needs, and implements its manufacturing software solutions at the customer’s manufacturing facility.
• The Group also provides after-sales upgrading, maintenance and support services.

 

 

3 THREAT OF SUBSTITUTE • The manufacturing software solutions that are developed and provided by iDimension Group are primarily used by operators in the Manufacturing Industry.
• A substitute for enterprise application software solutions is the traditional or non-IT manual system. Examples include manual data collection, manual filing, manual calculation and manual stock quantity adjustments.
• Although the manual system is a substitute, it has several

disadvantages: Difficulty in keeping track of updates as collecting data takes time, especially for manufacturing operators with large operations and stock. This encourages information inaccuracy and delay. This difficulty may then compel operators to employ additional personnel, such as factory floor managers, to assist in the collection and control of data, which may lead to an increase in costs. Requires regular staff training to ensure consistency of the operating procedures, which may be costly and time consummg. iDimension Consolidated Bhd Page 11 of30 Industry Asses!;menf 97 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions • Hence, manual systems may not be a practical substitute for manufacturing software solutions, particularly for large manufacturers that employ complex manufacturing operations. In particular, IT­based manufacturing software solutions provide better storage, retrieval and management of data, and allow decisions to be made in real time. In addition, data capture may be undertaken directly from machine to machine to eliminate data capture errors and provide real time information. 4 GOVERNMENT LEGISLATION, POLICIES AND INCENTIVES
4.1 Government Laws, Regulations and Policies • There are currently no licensing or registration requirements in Malaysia for companies that develop and provide manufacturing software solutions or provide supporting services of the type offered by iDimension Group.
4.2 Multimedia Super Corridor Status • In general, the Malaysian Government provides incentives for active MSC status companies under the Promotion oflnvestment Act 1986.
• A MSC status company that is granted with pioneer status in its field, such as software development, would be given a 100% exemption from taxable statutory income for a period offive years. This exemption can be renewed for one additional five-year period.
• In addition, a company that is conferred with MSC status is also eligible for a 100% Investment Tax Allowance (ITA) on qualifying capital expenditure within a five year period.
• A company that carries out in-house research and development (R&D) activities with the purpose of developing or improving its products and services for its business operations is eligible for a 50% ITA of qualifying capital expenditure within a ten year period.
• Other incentives include: Duty-free importation of multimedia equipment;

iDimension Consolidated Bhd Page 12 of30 Industry Assessment 98 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions Provision of R&D fucilities and infrastructure if companies are located within MSC Cybercentres such as CybeJjaya, Technology Park, Kuala Lumpur City Centre, UPM-MTDC, Penang Cybercity-I, Kulim High Tech Park, KL Sentral, Melaka International Trade Centre and MSC Cyberport Johor. (Source: MSC Malaysia, Multimedia Development Corporation and MlDA) • Two companies within the iDimension Group, namely iDimension MSC Sdn Bhd and OS Solutions Sdn Bhd, were granted MSC status on 26 October 2005 and on 15 June 2006 respectively by the Multimedia Development Corporation. 4.3 Research and Development Grant • The Malaysia Development Council Sdn Bhd awarded a Research and Development Grant ofRMO.7 million to iDimension MSC in 2010.
4.4 Trademarks • In Malaysia, Trade Marks are governed by Trade Marks Act 1976 and Trade Marks Regulation 1997 (Amendment 2001).
• Trademark registration provides trademark owners with the exclusive right to use their marks in trading, and the registration certificate issued by Registrar Office serves as legal evidence.
• The Registrar of Trade Marks is the authority for the registration of trademarks in Malaysia. Registration of trademarks shall be valid for a period of ten years and may be renewed from time to time.
• iDimension Group has submitted applications for the following trademarks, which are currently pending approval:

Trademark  Date Submitted  Class  Description  iCIMENSICN  7 March 2008  42  Manufacturing IT solutions provider, IT services and consultancy, all included in Class 42.
iDimension Consolidated Bhd Page 13 0[30 Industry Assessment 99 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions Trademark  Date Submitted  Class  Descriotion  iCIMENSICN  8 April 2010  9  Computer programs and software for use in manufacturing and materials management and plant maintenance, all included in Class 9.
• iDimension Group has registered the following trademark with the Intellectual Property Office of Singapore: Trademark  Validity Period  Class  Descriotion  iCIMENSICN  6 May 2010106 May 2020  9 and 42  •
Note: * Computer programs and software for use in manufacturing and materials management. management and plant maintenance; all included in Class 9. Creation, development and design of computer programs and soflware of manufacturing solutions and processes, particularly for use in production, manufacturing and materials management, quality management and plant maintenance, sales and distribution of materials, human resources and project management, general office functions such as word proceSSing, electronic mail and archiving; implementation, installation, analysis, testing, updating and maintenance of computer programs and sofnvare; computer so/nvare and hardware integration for manufacturing solutions, products and processes; technical consultancy and advice regarding programming, design, development, implementation and installationofcomputerprogramsandsofnvare; allincluded inClass42, 4.5 Environmental Regulations • iDimension Group does not generate any waste that has an adverse effect on the environment as it is primarily engaged in the provision of manufacturing software solutions. 5 DEMAND AND SUPPLY • In general, the level of demand for, and supply of, the IT Industry’s products and services can be measured by the total spending on these products and services. iDimension Consolidated Bhd Page 14 0/30 Industry Assessment 100 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING CreatingWfnning Business Solutions

5.1 Total Spending on IT • Between 2006 and 2010, total spending on IT in Malaysia increased at an average annual rate of 11.2%. In 2010, the total spending on IT grew by 9.7% to reach RM49.9 billion. (Source: PIKOM) • In 2010, total spcnding on IT was segmented into the following main sub-sectors: Computer
Figure 7. Spending on IT in 2010 • The largest sub-sector was the communications sub-sector, which represented 54.8% of total IT spending in 2010. The computer hardware and computer services sub-sectors represented 19.8% and 15.8% of total IT spending respectively, while the computer software sub-sector accounted for 9.6% oftotallT spending in 201 O. (Source: PIKOM)
5.2 Spending on Software • Between 2006 and 2010, total spending on computer software (a sub­sector of total spending on IT) increased at an average annual rate of 19.8%. In 2010, the total spending on computer software grew by 17.2% to reach RM4.8 billion. (.’)ource: PIKOM) iDimension Consolidated Bhd Page 15 of30 Industry Assessment 101 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions 6 DEMAND DEPENDENCIES • For the financial year ended 31 December 2010, a large proportion of iDimension Group’s customers were involved in the [manufacturing of semiconductor devices]. In addition, iDimension Group’s software is able to be easily modified to meet the requirements of most manufacturing operations.
• Hence, demand for iDimension Group’s manufacturing software solutions will be influenced by the performance of the overall manufacturing sector, in particular the semiconductor sector.

 

6.1 Sales Value ofthe Manufacturing Industry in Malaysia • Between 2006 and 2010, sales value of the Manufacturing Industry in Malaysia increased at an average annual rate of 0.6%. In 2010, the sales value of the Manufacturing Industry grew by 13.8% to reach RM535.5 billion.
• In the first half of20II, the sales value ofthe Manufacturing Industry in Malaysia totalled RM291.9 billion, representing a growth of 11.3% compared to the corresponding period in 2010.

(Source: Department ofStatistics)
6.2 Sales Value ofthe Manufacture of Semiconductor Devices in Malaysia • Between 2006 and 2010, sales value of the manufacture of semiconductor devices in Malaysia decreased at an average annual rate of3.2%. In 2010, the sales value ofthe manufacture of semiconductor devices declined by 5.5% to RM42.7 billion.
• In the first half of 2011, the sales value of the manufacture of semiconductor devices totalled RM24.4 billion, representing a growth of 19.9% compared to the corresponding period in 2010.

(Source: Department ofStatistics) iDimension Consolidated Bhd Page /60/30 Industry Assessment 102 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions
6.3 Valued Added of Manufacturing Industries in China • Between 2004 and 2008 (the most recent year for which data is available), value added of the manufacturing industries (at current prices) in China increased at an average annual rate of 18.6%. In 2008, the value added of the manufacturing industries (at current prices) grew by 17.2% to reach RMB10,254 billion. (Source: National Bureau ofStatistics, China) 6.4 Gross Industrial Output Value of the Manufacture of Integrated Circuits in China • Between 2005 and 2009, gross industrial output value of the manufacture of integrated circuits (at current prices) in China increased at an average annual rate of 13.6%. In 2009, the gross industrial output value of the manufacture of integrated circuits (at current prices) declined by 17.8% to RMB192.7 billion. (Source: China Statistics Yearbook on High Technology Industry) 6.S GDP Contribution of the Manufacturing Sector in Indonesia • Preliminary data indicated that between 2006 and 2010, GOP contribution of the manufacturing sector (at current prices) in Indonesia increased at an average annual rate of 14.7%. In 2010, preliminary data indicated that the GDP contribution of the manufacturing sector (at current prices) grew by 7.9% to reach Rupiah 1,594.3 trillion. (Source: Bank Sentral Republik Indonesia)
6.6 GDP Contribution of the Manufacturing Sector in the Philippines • Between 2006 and 2010, GOP contribution of the manufacturing sector (at current prices) in the Philippines increased at an average annual rate of 6.8%. In 2010, the GOP contribution of the manufacturing sector (at current prices) grew by 13.1 % to reach Pesos 1,930.8 billion. (Source: National Statistical Coordination Board, Philippines) iDimension Consolidated Bhd Page 17 of30 Industry Assessment 103 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions 6.7 Output Value of Semiconductor Devices and Other Electronic Components in the Philippines • Between 2006 and 2008 (the most recent year for which data is available), output value of semiconductor devices and other electronic components in the Philippines decreased at an average annual rate of 1.7%. In 2008, the output value of semiconductor devices and other electronic components totalled Pesos 436.4 billion. (Source: National Statistics Office, Philippines)
6.8 GDP Contribution of the Manufacturing Sector in Thailand • Preliminary data indicated that between 2006 and 2010, GOP contribution of the manufacturing sector (at current prices) in Thailand increased at an average annual rate of 7.0%. In 2010, preliminary data indicated that the GOP contribution of the manufacturing sector (at current prices) grew by 16.6% to reach Baht 3,599.7 billion. (Source: Office of the National Economic and Social Development Board, Thailand) 6.9 Gross Output Value of the Manufacture of Electronic Valves and Tubes, and Other Electronic Components in Thailand • 1n 2007, gross output value of the manufacture of electronic valves and tubes, and other electronic components in Thailand totalled Baht 499.3 billion. (Source: National Statistical CJffice, Thailand) 7 SUPPLY DEPENDENCIES • The 1T Industry’s supply dependencies primarily comprise hardware and software. iDimension Consolidated Bhd Page 18 a/30 Industry Assessment 104 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions 7.1 Spending on Computer Software • Between 2006 and 20I0, total spending on computer software increased at an average annual rate of 19.8%. In 2010, the total spending on computer software grew by 17.2% to reach RM4.8 billion. (Source: PIKOM)
7.2 Spending on Computer Hardware • Between 2006 and 2010, total spending on computer hardware increased at an average annual rate of 10.7%. In 2010, the total spending on computer hardware grew by 10.4% to reach RM9.9 billion. (Source: PIKOM)
7.3 Sales Value of the Manufacture of Computer and Computer Peripherals • According to the Department of Statistics, the manufacture of computer hardware is classified under the “manufacture of computer and computer peripherals” category.
• Between 2006 and 2010, sales value of the manufacture of computer and computer peripherals decreased at an average annual rate of 15.4%. In 2010, the sales value of the manufacture of computer and computer peripherals declined by 13.2% to RM33.3 billion.
• Inthefirsthalf of2011,thesalesvalue ofthemanufacture ofcomputer and computer peripherals totalled RM13.8 billion, representing a decline of23.9% compared to the corresponding period in 20IO.

(Source: Department ofStatistics) iDimension Consolidated Bhd PageI90f30 Industry Assessment 105 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions 8 COMPETmON 8.1 Nature of Competition in the IT Industry • In general, operators in the IT Industry in Malaysia face normal competitive conditions, which is similar to a free enterprise environment characterised by the following: There are no undue government regulations or licensing requirements; The industry is not dominated by a single or small number of operators; Operators may enter and leave the industry freely; No single or small group of operators is large enough to dictate pricing. • In such an environment, the industry is subjected to normal supply and demand conditions moderated by the price mechanism. Operators compete on product and service differentiations, and other factors of competition.
8.2 Factors of Competition • As with most free enterprise environment, the factors that are used to compete and to differentiate one operator from another include the following: Software development capability; Proprietary software; Strong marketing and brand equity; Ability to create value for customers; Integrated operations.

8.3 Impact of Factors of Competition on iDimension Group • Software Development Capability Operators with the ability to develop software will be able to create proprietary software and offer unique value propositions to their customers on an ongoing and expedient basis. This will differentiate operators with the ability to develop software from software resellers that do not have the ability to develop their own software. An operator that does not have in-house software development capability will be at a disadvantage, as it is dependent on its software suppliers to keep up with its competitors’ developments and with evolving market demand. iDimension Consolidated Bhd Page 20 of30 Industry AS.’1essment 106 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions In-house software development capability will also enable an operator to continuously modify and develop enhancements for their proprietary software, which will enable the operator to provide on-going support to its customers. iDimension Group has developed a range of proprietary manufacturing software solutions using its in-house software development capability. • Proprietary Software Ownership of proprietary software as opposed to reselling third-party software is a major advantage in that the operator is able to continuously modify and develop the software to meet changing needs. iDimension Group carried out software development to create a range of manufacturing software solutions, and the software is proprietary to the Group. The Group’s proprietary software solutions include both complete software solutions and add-on modules for third-party software solutions. • Ability to Create Value for Customers Operators that offer services that can create continuing value for their customers “,ill increase their ability to hold on to their customers. iDimension Group’s manufacturing software solutions can create value for customers by enhancing their ability to collect, manage and analyse data to improve their productivity. • Integrated Operations Having an integrated operation for providing manufacturing software solutions should provide an operator with an added advantage over other operators that have to rely on third parties for some of its critical products and services. An integrated operation provides the advantage of a better understanding of customers’ preferences. In addition, an operator with integrated operations is in a better position to ensure that all the components of a manufacturing software solution, such as software, hardware and other resources, work well together for maximum efficiency and effectiveness. iDimension Consolidated Bhd Page2l of30 Industry Assessment 107 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d)
o VITAL FACTOR CONSULTING Creating Winning Business Solutions iDimension Group is not only involved in providing manufacturing software solutions, but also in the development of the software solutions. In addition, the Group also carries out in-house software development to improve its products and services as well as develop new ones. The Group also provides after-sales software maintenance services, as well as on-going technical support and technical updatcs. The higWy integrated operation of iDimension Group provides them with a key competitive advantage by positioning the Group as a one­stop operator providing a full solution to customers in the Manufacturing Industry.

 

 

8.4 Competitive Intensity • Competition among operators in the IT Industry for the provision of manufacturing software solutions is based on the following: In general, most developers and/or providers of manufacturing software solutions compete against other developers and with resellers. According to MSC Malaysia of the Multimedia Development Corporation, there are currently approximately 1,150 MSC status companies involved in software development. Operators in the IT Industry in Malaysia will also face competition from operators who are based overseas. Overseas operators either set-up their operations or establish partners or agents for their products and services locally.
8.5 Operators in the Industry • Some examples of companies that are involved in the development and/or provision of manufacturing software solutions in Malaysia include the following (listed in alphabetical order): Asoft Digital Sdn Bhd (Subsidiary of Asoft Computer Sdn Bhd); Careware Systems Sdn Bhd; DCS Business Solutions (M) Sdn Bhd (Subsidiary of DCS Group); ERPStar Inc Sdn Bhd; Everise Technology Sdn Bhd; iDimension Consolidated Bhd; Mexter Technology Berhad;
lDimension Consolidated Bhd Pagen 0/30 Industry Asse.<;.<;menl 108 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions Optimal Expert Management Solutions Sdn Bhd; Ramcosystems Sdn Bhd; Rockwell Automation (M) Sdn Bhd; SAP Malaysia Sdn Bhd; Silkron Technology Sdn Bhd; SL Information System Sdn Bhd.
Note: This is not an exhaustive list. (Source: Vital Factor Consulting Sdn Bhd)
9 BARRIERS TO ENTRY 9.1 Set-up Costs • Set-up costs generally represent a low barrier to entry for a new entrant that wishcs to operate as a developer and/or provider of manufacturing software solutions. This is because the tools need to develcop or provide software are computer hardware and software, which are relatively low cost.
9.2 Skills and Knowledge Base • Developing manufacturing software solutions requires a high level of technical knowledge and skill, and would create a moderate barrier to entry for a new entrant. Qualified and experienced softwarc cngineers and developers are required to define the functionalities and technical specifications, and create the suite of software programs. The level of skills and experience required generally rises as the complexity of the manufacturing software solution increases or if it rcquires highly specialised functionalities.
• Similarly, if an operator were to provide manufacturing software solutions using third party software, it would still require a high lcvel of skills and knowledge base to be able to scope the work, specify the systems and functionalities required, set the parameters and implement the system.
• Qualified and experienced technicians are also required to maintain the hardware and software, and to rectify faults and fix bugs as and when they occur.

iDimension Consolidated Bhd Pagel30f30 Industry Assessment 109 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions 9.3 Track Record and Market Reputation • Track record and market reputation creates a barrier to entry for new entrants who wish to provide manufacturing software solutions. The new entrant has to demonstrate that its manufacturing software solutions are reliable, safe and secure. Users would not want to retrieve and rely on data and information that are inaccurate and incorrect, or run the risk of having their day-to-day operations disrupted by failures in its manufacturing software solutions.
• In this respect, established developers and providers of manufacturing software solutions with a proven track record have an advantage over new entrants.

10 RELIANCE ON AND VULNERABILITY TO IMPORTS • In general, operators in the IT Industry in Malaysia are vulnerablc to competition from overseas operators, as thcre are few limitations to the impcrts of software to Malaysia or to the use of overseas-based operators. Howcver, vulnerability to competition from overseas operators is reduced by the following factors; Operators based in Malaysia are in a better position to develop the localised content and services that are more likely to meet the requirements oflocal users; Users are more likely to choose services that are provided in a language that they are familiar with, which reduces competition from services that are not available in these languages. • Some operators may be reliant on imports of third-party software that are used as platforms to develop their software products. However, operators may be able to reduce or eliminate their dependency on imports of third-party software by developing their own software platform in-house. 11 INDUSTRY OUTLOOK • In general, the outlook of the IT Industry in Malaysia will be dependent on the pcrformance of the Malaysian economy as a whole, and on the performance of its main user industries such as the manufacturing sector. iDimension Consolidated Bhd PageN 0/30 Industry Assessment 110 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions • In general, economic conditions in Malaysia were bettcr in 2010 than they were in 2009. In 2009, Malaysia’s real GOP contracted by 1.6%. However, the Malaysian economy rebounded by recording a real GOP growth of 7.2% in 2010 driven by expansion in domestic demand, which was supported by higher private and public sector spending. (Source: Bank Negara Malaysia) • Real GOP growth for the first quarter of 20 I I was 4.9% led by continued expansion in domestic demand. In the second quarter of 2011, real GOP growth was 4.0% led by sustained expansion in private domestic demand although poor economic conditions in the advanced economies and natural disaster in Japan led to a slowdown in the manufacturing sector. (Source: Bank Negara Malaysia)
• As for 20 II, the Government of Malaysia has forecasted continuing economic growth of between 5.0% to 6.0%. (Source: Bank Negara Malaysia)
• Although the Malaysian economy as a whole contracted in 2009, spending on computer software and computer hardware continued to grow. In 2009, the total spending on computer software grew by 18.4% to reach RM4.1 billion while total spending on computer hardware grew by 9.3% to reach RM9.0 billion. (Source: PIKOM)
• In 20I0, the total spending on computer software grew by 17.2% to reach RM4.8 billion while total spending on computer hardware grew by 10.4% to reach RM9.9 billion. (Source: PIKOM)
• The sales value of the overall manufacturing industry grew by 13.8% in 2010. The sales value of the overall manufacturing industry in the first half of 2011 totalled RM291.9 billion, representing a growth of 11.3% compared to the corresponding period in 2010. (Source: Department ofStatistics)

12 THREATS AND RISKS ANALYSIS 12.1 Global Financial Crisis • Any prolonged and/or widespread economic downturn such as those of the recent global financial turmoil has affected the global and Malaysian economies. This will in tum reduce business confidence. iDimension Consolidated Bhd Pagel50f30 Industf}, Assessment 111 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions Mitigating Factors • As evidenced in the past, the Malaysian Government’s continued prompt policy flexibility in implementing pro-growth measures to sustain the country’s growth momentum, by raising domestic demand to compensate for slower external growth, has helped Malaysian companies to counter some of the effects of the slowdown in the global economy.
• In early November 2008, the Malaysian Government announced a RM7 billion stimulus package, which was to be channeled into 15 projects to promote business activity, and helps minimise the impact of the global financial crisis.
• On 10 March 2009, the Government tabled a mini budget as part ofthe second stimulus package. The second stimulus package was to be implemented over 2009 and 2010, and will include RM60 billion in spending and incentives.
• It is expected that these measures will help to generate domestic business activities and domestic consumption, which will in tum help counter the slowdown in the local economy.

12.2 Software Piracy • Software can be easily copied, replicated and distributed. Unauthorised copying, replication and distribution deny revenue that is due to the owners of the software, which may have a negative effect on their financial performance. Mitigating Factors • The risk arising from software piracy is less intense for operators who develop manufacturing software solutions, as thcse solutions must be customised to suit the specifie needs of an organisation or manufacturing plant. Successfully deploying manufacturing software solutions requires some degree of consultation between the software developer and the user, customisation, installation and user training.
• Users will also require after-sales technical support, enhancements, modifications and maintenance services. These services are usually not available with pirated software

iDimension Consolidated Bhd Page 26 of30 Industry Asse.’isment 112 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions 12.3 Advances in Technology • The generally rapid rate of technological advances in the IT Industry may lead to the rapid obsolescence of manufacturing software solutions. Mitigating Factors • Operators with the capability to carry out in-house software development are in a better position to adopt new technological advances. These operators can develop and enhance their manufacturing software solutions to keep up with technological developments, and meet changes in the marketplace. 12.4 Availability of Freeware • Freeware is software that users can legally use without paying any fees to the owner of the software’s intellectual property rights. An example of freeware is an Internet-based email application. The ready availability of freeware is a risk to operators, including providers of enterprise application software solutions, who charge a fee to users for the use oftheir software solutions. Mitigating Factors • In general, the range of freeware that is currently available is limited to more basic applications. Developers of freeware are typically unable to provide users with value-added services such as consulting services, customisation, or to offer managed services and extensive technical support.
• Freeware is generally not an attractive proposition for business users who wish to implement some sort of manufacturing software solutions, as these solutions must be customised to suit the specific needs of an organisation or manufacturing plant. As a result, manufacturing software solutions require some degree of consultation between the software developer and the user, customisation, installation, user training, and assurance of after-sales technical support, enhancements, modifications and maintenance services. These services are usually not available with freeware.

iDimension Consolidated Bhd Page 27 of30 Industry Assessment 113 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions 13 AREAS OF GROWTH AND OPPORTUNITY 13.1 Overseas Markets • Software solutions, including manufacturing software solutions, are easily sold and delivered to overseas users. There are opportunities for developers and providers of manufacturing software solutions based in Malaysia to provide their software solutions to users located throughout the world. 13.2 Diversification to Other User Industries • One of the areas of growth and opportunity for operators involved in the development and provision of manufacturing software solutions is to diversify their markets to other user industries.
• The manufacturing software solutions, with some customisations and modifications, may be distributed to users in service-based industries such as the wholesaling, retail, transportation and storage, accommodation and restaurant, and tourism industry sectors.
• Diversification as a strategy can help to reduce dependency on users in the Manufacturing Industry by addressing wider growth opportunities in other industry sectors, including the service-based industries.

14 CRITICAL SUCCESS FACTORS The critical success factors for developers and providers of manufacturing software solutions include the following: • In-house Software Development Capability: Operators that have in­house software development capability are able to expediently create new solutions and enhance existing solutions to meet changing user needs and exploit technological innovations. This is important as technology within the IT industry evolves rapidly and user needs change constantly.
• Proprietary Software: Operators in the IT Industry that have ownership of proprietary software have the ability to continuously modify and develop their software.

iDimension Consolidated Bhd Page 280130 Industry Assessment 114 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions • Estahlished track record: Operators have to demonstrate that the manufacturing software solutions they provide are effective, reliable and secure. As such, operators with strong track record would be in a better position to win the confidence and trusts of potential customers.
• Strong Marketing and Brand Eqnity: As there are a large number of enterprise application software solutions developers and providers both locally and internationally, competition is intense and global in nature. As such, operators that have strong marketing and brand equity would be in a better position to sustain and grow the business.

15 MARKET SIZE AND SHARE 15.1 Market Size • In 2010, the market size of the overall IT Industry in Malaysia based on spending was RM49.9 hillion. (Source: PIKOM)
• In20I0,themarketsize ofthecomputersoftwaresub-sector oftheIT Industry in Malaysia based on spending totalled RM4.8 hillion.

(Source: PIKOM) 15.2 Market Share • The market share of iDimension Group within the computer software sub-sector of the IT Industry is less than 1%. IDimension Consolidated Bhd Page 29 of30 industry Assessment 115 8. INDEPENDENT ASSESSMENT OF THE IT INDUSTRY FOCUSING ON THE DEVELOPMENT AND PROVISION OF MANUFACTURING SOFTWARE SOLUTIONS, PARTICULARLY FOR THE SEMICONDUCTOR INDUSTRY (Cont’d) o VITAL FACTOR CONSULTING Creating Winning Business Solutions Vital Factor Consulting Sdn Bhd had prepared this report in an independent and objective manner and had taken all reasonable consideration and care to ensure the accuracy and completeness of the report. It is our opinion that the report represents a true and fair assessment of the industry within the limitations of, among others, secondary statistics and information, and primary market research. Our assessment is lor the overall industry and may not necessarily reflect the individual performance of any company. We do not take any responsibilities for the decisions or actions of readers of this document. This report should not be taken as a recommendation to buy or not to buy the shares of any company. Yours sincerely
Managing Director iDimension Consolidated Bhd Page300f30 lndustry Assessment 116

 

 

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