PETALING JAYA: Vstecs Bhd expects the higher interest rate environment in the country to negatively impact consumer spending and sentiment.

The information and communications technology (ICT) company said the demand for consumer products would likely slow for the next few quarters but the enterprise sector would remain resilient with opportunities from cloud services and data centres. “We continue to work on large project opportunities from the government-linked companies and public sector.

“While we are cautious on the consumer sector, the outlook for the enterprise sector continues to remain strong for the second quarter (2Q23) and the balance of financial year 2023 (FY23).

VSTECS posted a 3% year-on-year (y-o-y) rise in revenue of RM664.7mil for the first quarter ended March 31, 2023 (1Q23) with its Enterprise Systems and ICT Services segments posting a 30.6% and 39.7% rise in revenue respectively.

“This growth underscores the ongoing upward trend in enterprise spending on infrastructure and digital transformation, as businesses increasingly recognise the critical role of technology in maintaining competitiveness in today’s business landscape,” the company said in a statement yesterday.

VSTECS ICT distribution segment’s revenue fell 25.2% y-o-y in 1Q23, reflecting consumers’ heightened caution towards discretionary spending.

The company remained focused on adapting to market dynamics and meeting evolving consumer demands.

Source from https://www.thestar.com.my