With uncertainties in global economy looming over the country, Pikom the National ICT Association of Malaysia has revised down its forecast of the Gross Domestic Product growth for 2016 and 2017 to 4.2% and 4 % respectively.

The depreciation of the Ringgit against the US dollar, the unexpected outcome of the Brexit vote and the US presidential election results as well as the uncertain future of the Trans-Pacific Partnership Agreement are the significant factors attributed to the lower forecast.

Pikom chairman Chin Chee Seong “We are living in economic uncertain times and we cannot ignore the impact of the internal and external factors could have on the future of our economy and our country in particular the potential changes in US economic policies and the threat of a slower Chinese economy,” he said, adding that the effects could be far more reaching in 2017.

According to the Department of Statistics Malaysia, the GDP growth for Q1 2016 was 4.2% — a 0.3% reduction from Q4 2015. Quoting excerpts from this year’s ICT Strategic Review report, Chin said the declining GDP growth rate continued in Q2 of this year, which marked the slowest expansion since 2009

The total ICT value in Malaysia for 2015 of 155.2 billion clocks an average annual growth rate of 11% at RM70.2 billion in 2015 and projected to reach RM77.5 billion in 2016.

During the briefing the association released an 11-chapter report covers a broad range of topics relevant to the disruptive technology, such as Big Data, Internet of Things (IoT) and Digital Governance. For the first time, in its eight year history, the ICT Strategic Review report writes about the growth journey of young and established startups who are making a mark in the industry and perhaps one day in the world.