DIPLOMA IN ACTUARIAL SCIENCE

FACULTY OF COMPUTER AND MATHEMATICAL

SCIENCES

DEMAND OF INTERNET SERVICES

NO STUDENT
GROUP MEMBERS
. ID
1. AIMAN HAKEEM BIN ABDUL HALENG KHANGA 2020464686
2. MUHAMMAD UWAIS BIN MOHAMAD LUTFI 2020617246
BATRISYIA NATASHA BINTI MOHAMAD
3. 2020833608
TABEAIN
4. NUR DIANA BINTI MOHD ZUL SHARINAN 2020877024
5. AMALIA FALIHAH BINTI ROSLI 2020601568

MICROECONOMICS (ECO 162)

A4CS1121A
 JAN 2021
TABLE OF CONTENTS

ACKNOWLEDGEMENT 4
1.0 INTRODUCTION TO DEMAND 5
1.1 Definition of demand 5
1.2 Law of Demand 5

2.0 INTRODUCTION TO INTERNET SERVICES 6

2.1 Definition of Internet Services 6
2.2 Percentage of Internet Activities 7
2.3 Place to Access The Internet 8
2.4 Device To Access Internet 10

3.0 ANALYSIS ON DEMAND OF INTERNET SERVICES 11

3.1 Number of Internet Users in Malaysia 11
3.2 Overview of Internet Use 12
3.3 Age 13
3.4 Gender 14
3.5 Urban-Rural Distributions 15
3.6 Employment and Current Educational Status 16

4.0 DETERMINANTS OF DEMAND OF INTERNET SERVICES 17

4.1 Advertising 17
4.2 Better Download Speed 20
4.3 Promotions and Discounts 21
4.4 Better Coverage 23
4.5 Social Networking and Communication Applications 25
4.6 Online Banking 27
5.0 INTERNET SERVICES DURING MOVEMENT CONTROL ORDER (MCO) 29
5.1 Demand of Internet Services During MCO 30
5.2 Determinants of Internet Services During Movement Control Order (MCO) 31

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 5.2.1 Work From Home 31
5.2.1 Online Education 32
5.3 Government Intervention 33
6.0 CONCLUSIONS 34

REFERENCES 35

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 ACKNOWLEDGEMENT

First of all, we held out our hands to express our big gratitude to Almighty Allah for giving us
perseverance as well as patience in preparing our report on ​“Demand Of Internet Services”​.

Successfully completing any assignment and group presentation requires a lot of help from
numbers of people. For their kindness in helping us, there is a little effort to show our deep
thankfulness to that helpful person.

We give our full sincere gratitude to our beloved lecturer, ​Mr. Zarul Azhar Bin Nasir. ​Without
his kind and patient direction and detailed guidance this report would not be able to complete
and be assigned. In every phase of the report is from his supervision and grateful guidance that
shaped this report to be completed perfectly.

We also want to thank our parents for their unlimited support and encouragement as long as we
complete this report. A roll of appreciation for our friends in especially our colleagues of UiTM
for their solid idea and help.

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1.0 INTRODUCTION TO DEMAND

1.1 Definition of demand

Demand is an economic concept which refers to the desire of a consumer to buy goods and
services and the willingness to pay for particular products or services at a certain level, location
and time range. While holding all other variables unchanged, the quantity demanded would be
decreased by a rise in the price of a good or service, and vice versa. In an economy, demand
can mean either market demand for a particular product or aggregate demand for the sum of all
products. Demand is what continues to drive the economy, and industries will not generate
much without it.

1.2 Law of Demand

The law of demand states that when the prices of a good itself increases the quantity demanded
for the good will decrease with assuming that other factors are constant. The relation between
price and quantity demanded of goods and services are negatively related to one another.
Therefore, the demand curve will generally show us to be downward sloping because of the
negative relationship between price of goods or service and quantity demanded.

Law of Demand Curve

Figure 1: Example of Demand Curve

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2.0 INTRODUCTION TO INTERNET SERVICES

2.1 Definition of Internet Services

Nowadays everyone needs the internet, do you know the meaning of the internet? The definition
of the internet that I found in Techopedia is one of the technologies that is connected to the
network system globally that make us easily find any data resources in the collection of private,
public, academic, business, and government. It also may help you to connect with anybody you
want, anywhere and anytime. ‘Internet’ began to exist in the 1960s. It was built by the U.S
government which started with a computer network known as ARPANET. The U.S. National
Science Foundation was assigned as the backbone of the development university network in
1985 and it is named NSFNET. In 1995, because the internet was brought to the public and it
needed a larger scale, the system was replaced by a new network that was managed by
commercial internet service.

Since the system had a larger scale and was in public, the internet had grown with many
facilities and services. For instance, gaming and movies, social media, online shopping,
financial services, online class, and so on. Progress of the internet becomes better day by day,
as a global network responsible for the data transfer and process facilitation in vast amounts.
For example, now we are using the IPv6 model for distributing Internet Protocol (IP) compared
to before we just use IPv4 because IPv6 can increase the number of addresses available
around the world. As technology grows, many types of internet have begun to be made. This is
because now we need a bigger space, a better and faster internet service. Nowadays, the
content of the presentation via the Web also changed drastically. Before the internet grew, the
small things like being able to center, bold, and produce text in different colors was something to
admire. But today, animations, online gaming, and mobile applications are among the standard
things.

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2.2 Percentage of Internet Activities

Figure 2: The Percentage of Internet Activities Individuals, Malaysia

(Dato’Sri Dr. Mohd UzairMahidin, 2020)

The picture above shows that most Malaysian people use the internet in several activities. The
main Internet activity by individuals is engaging in social networks (97.1%). And be the most
engaging activities among internet users. Next, it is followed by activities for downloading
images, movies or music and playing online games (84.7%). The Third most activity is
searching for information (83.5%). After that, Telephoning over the internet for (77.4%) and
lastly activities for downloading software and applications (77.1%).

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2.3 Place to Access The Internet

Figure 3: Place to access internet

(Malaysian Communications and Multimedia Commission, 2018)

The most frequent place to access the internet is at users’ own house which is at a rate of
88.6%. This is due to internet users such as children and secondary school’s students that use
the internet more when they stay at home compared to at school and when in other places.
Then, followed by the usage of the internet access via on-the-go that is 68.1%. On-the-go
means when we use the internet services while on-the-go like using GPS navigation while
driving, waiting for the public transportation, walking, and so on.

Subsequently, the consumption of the internet services at the workplace is 56.4%. This shows
that the workplace is the third of the most frequent places to access the internet services.
According to the next, the use of the internet in other people’s homes is at the rate of 38.7%.
Consumers who surf the internet through a free Wi-Fi anywhere provided in 2018 are less if
compared to 2016. In 2016, the percentage of the users via free Wi-Fi was 55.9% while in 2018
was 36.3% only.

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One of the factors that makes the differences quite significant is caused by the service providers
offering innovative and competitive mobile broadband packages. For example, they offer an
unlimited internet plan for a month for only RM35 and have a speed of 3 megabits per second
(Mbps). The price offered is also reasonable and affordable. As a result, more and more users
are choosing to purchase their own mobile data Internet plan instead of relying on the free Wi-Fi
provided. Furthermore, some free Wi-Fi is a bit slow due to the large number of users.

According to the next, there are 26% of commercial internet access facilities that have been
used in 2018. Commercial internet access facilities that provide computers for access to the
internet like cyber cafes. In this era of globalization, almost every single person in this world
might have their own gadgets. So, they can only access the internet services on their mobile
internet data plan. Hence, there are only several people that access the internet on commercial
internet access facilities.

Besides that, the total percentage for the consumers on a community internet access facility is
18.2% which is the second last frequent place for the internet access. The improvement in the
quality of a service that becomes a connectivity much better, leads to the shrinkage of the users
to visit the community internet access facilities such as libraries. Finally, the least of the most
frequent places is at the education place with the number of percentages is only 12%.

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2.4 Device To Access Internet

Figure 4: Device to Access Internet

Based on the graph, we know that the smartphone is the most popular technology for users to
connect to the internet with nine out of ten. The reason is that the smartphone is easy to bring
anywhere plus, it can connect with the internet to find information anytime and anywhere. The
percentage of internet users that use smartphones is 93.1% and the average has increased
from 89.4% in 2016 with 3.7 points. From here, we can know that year by year, the percentage
of the internet will boost quickly. No wonder as the subscriptions of mobile-broadband in
Malaysia can reach 36.2 million in the second quarter of 2018, compared to fixed-broadband
subscriptions with 2.6 million.

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3.0 ANALYSIS ON DEMAND OF INTERNET SERVICES

3.1 Number of Internet Users in Malaysia

Figure 5: The Number of Internet User in Malaysia from 2019 to 2025

(Muller, 2020)

Based on the graph above, the numbers of internet users boost from one year to year, and then
for 2025, 5 years from now, the number of internet users is predicted to reach 33.49 million. It
displays that the internet will be more often used in our daily tasks, and the internet will become
an essential part of our lives. As nowadays, people use the internet most of the time to do
various activities such as online banking, playing online games, binge on movies and many
more.

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3.2 Overview of Internet Use

Figure 6: The Number of Malaysian People Using the Internet, and How Much Time They
Spend Using the Internet.

(Simon Kemp, 2020)

This picture's information says that the number of internet users on any device is almost 26.69
million while the percentage of the total population is (83%). The annual growth of internet users
is plus (+3.6%) for this year. The value is like 919 thousand. The average time spent using the
internet on any device by Malaysian people is almost 7 hours and 57 minutes per day.

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3.3 Age

Figure 7: Age Group Distribution of Internet Users

(Malaysian Communications and Multimedia Commission, 2018)

Internet users survey 2018 found that the percentage of the Internet users is increasing. The
percentage of the Internet users at a national level in 2016 is 76.9% and increased by 10.5% in
2018. Based on the graph above, it indicates that the higher age group for consumers of the
Internet services as adults in their 20’s and 30’s with the total amount 30% and 25.9%. Most
people within that age are necessary to use the internet services for their studies, research and
work. Furthermore, university students which require the internet services for their assignment
or else are usually at the range of that.

At the stages of age below 20, only 8.1% of the Internet users. At that age, the
consumers are from high school students, primary school students and children. They do not
need a lot of internet services because their learning is based on textbooks and school learning
only. From the age of 40’s, 50’s, 60 and above, internet users were 17.9%, 11.6% and 6.5%
respectively. From the age 40 and above, we can conclude that the numbers of internet users
are getting lesser.

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3.4 Gender

Figure 8: Gender distribution of Internet Users

(Malaysian Communication and Multimedia Commission, 2018)

Based on the figure above, we can conclude that the number of internet users for male is higher
than the number of internet users for females. The sum of Internet users by sex for male is 59%,
while the female is 41%. It indicates that the number of internet users for male exceeds female
by 18%.

Gender 2014 2016 2018

Female (%) 41.7 42.6 41.0
Male (%) 58.3 57.4 59.0
Ratio 1.4 1.3 1.4

Table 1: Gender distribution and ratio of internet users (2014, 2016, 2018)

(Malaysian Communications and Multimedia Commission, 2018)

According to the table above, it shows that there is a decrease in consumers of internet services
by male from 2014 until 2016, then increased to 59% in 2018. Meanwhile, the distribution of
internet users by female boost from 2014 to 2016, then have an insignificant reduction in 2018.
Internet users survey conducted by Malaysian Communications and Multimedia Commission
(MCMC), determined that the ratio of internet users by gender is 1:4.

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3.5 Urban-Rural Distributions

Figure 9: Urban and Rural Distribution of Internet Users

(Malaysian Communications and Multimedia Commission, 2018)

There are some differences in the use of the internet either in rural, or urban areas. After doing
a survey, it was found that as many as 67.2% of urban internet users in 2014 and 2016.
Meanwhile, internet users in the rural area in 2014 and 2016 were 32.8%. This shows quite a
significant difference and may be due to the internet in coverage not being fully accessible. The
other reason is maybe it is affected by the population living in rural areas less than the
population living in urban areas.

In the year of 2018, the increase in internet usage in urban areas increased to 70%, but
the percentage of the internet users in rural areas decreased by 2.8% of users which led to only
30% of users in rural areas. The number of internet users can be attributed to 2.3:1 which is 2.3
refers to the users in urban areas and 1, is a user in rural areas. The increase in the percentage
of users in urban areas in 2014 and 2016 is in line with the increase in population in the area.

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3.6 Employment and Current Educational Status

Figure 10: Employment and current educational status

Internet users by employment status consists of five categories which are self-employed,
employed, unemployed, retired, and full-time students. Mostly the internet users are employed
and self-employed which 51.8% and 18.7% respectively. The total percentage for both was
70.4% that is almost three-quarters. This is because usually employees need to access the
internet connection for job purposes like sending company emails, online banking payments and
so on. At the year of 2016, the proportion of internet users among retirees was 2.2% only and
increased by 3.3% in 2018. At the age of retirement, they are less interested in technological
advances. Under these circumstances, normally they use the internet connection for
communication such as WhatsApp and Telegram. Besides, 12.1% of the internet users who are
full time learners. Among them are currently enrolled in college or university, in secondary
school, primary school or kindergarten. They were using the internet connection to do some
research, looking for reference sources or even any assignment.

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4.0 DETERMINANTS OF DEMAND OF INTERNET SERVICES

4.1 Advertising

Figure 11: Internet Advertising Spending in Malaysia

(Muller, 2020)

Internet access demand is increasing significantly at a dramatic pace. Good advertising

strategies typically have a higher demand due to popularity. As we know, people are more
drawn to exciting goods besides the quality itself. As you can see from the above figure, the
number of internet advertising spending in Malaysia is increasing rapidly in 2014 to 2019.
Attractive advertisements would attract a number of people to purchase the goods.

From the figure below, we know that most of the internet companies promote their
network on television, newspaper and social media. This is because some of us do not have
internet access at home, especially the elders. Due to the scenario the company needs to
advertise their network on television or newspaper so that the elderly will notice their promotion.
This approach focuses on those who are not yet exposed to internet services in Malaysia.

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 Figure 12: Celcom Advertisement on Newspaper

We can say that televisions and newspapers are good mediums to promote a network.
However, nowadays youngsters rarely watch television, not to mention reading the newspaper.
Because of this situation the network companies need to use other alternatives to promote their
network such as online platforms. Since everyone in their daily lives now uses smartphones,
social media is the best medium to promote their network. They tend to advertise their deals on
social media such as Instagram, Facebook, Twitter and YouTube. Even though most of us have
internet access, we love to change our network for better deals. Most network businesses are
competing with each other in building advertisements to draw more users.

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Figure 13: Advertisement on Social Media Figure 14: Celcom Booth Stand

Other than that, we can see these companies are having booth stands at the mall to promote
their deals at the customers. This method is one of the most effective ways as they can engage
the customers directly. From the below figure, we can tell that Celcom has the second highest
percentage of subscribers as their company has a better advertisement than DiGi.

Figure 15: Percentage of Subscribers for 3 Internet Services

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4.2 Better Download Speed

Consumer preferences are described as the tastes of the person, as measured by their
satisfaction with the products they have bought. The tastes and preferences of customers also
play a major role in the demand for internet services. If a network comes out with new deals, the
demand for the network will rise as they have a great offer. While the demand for those
networks that have poor internet services, unfriendly customer service, or expensive charges
will decline, as we have a better option now. In Malaysia, there are seven registered internet
services providers such as Celcom, Digi, Maxis, U Mobile, Unifi Mobile which formerly known as
webe digital and Yes 4G. Many internet services providers emerged causing competition among
them. The average internet speed of Malaysia for mobile servicesis 24.69 megabits per second
(Mbit/s) as of August 2020. All of these network companies are trying to have better internet
speeds to attract the users.

Below is information of internet download speed in Malaysia according to the internet service
providers:

Table 2: Internet Download Speed in Malaysia

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 Figure 16: Mobile Experience Awards, Malaysia
(Mobile Network Experience Report, 2020)

From the figure above, we know that Maxis has won the Mobile Experience Awards Malaysia in
the Download Speed Experience category. Speed Experience downloading is a measure based
on the speed of the internet over time (second). OpenSignals analysis suggests that with more
than 7.7 Mbps more than its greatest competitor Celcom, just 12.7 Mbps, Maxis is the faster
Telcos. When downloading materials, movies, homework, and more, consumers who choose
Maxis will have much more speed. From this evidence we can tell that consumers prefer
internet services that have a better download speed experience.

4.3 Promotions and Discounts

Since we have many internet service providers to choose from, all of these providers need to
improve their game to win the hearts of users. Due to that, most of the internet service providers
come up with special promotions and discounts to attract more subscribers.

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 Figure 17: MORE@HOME DEALS Package

(DiGi, 2021)

For instance, Digi is currently having a More@Home Deals. This is up to one year of promotion
discounts for new line sign-ups through postpaid plans, mobile and broadband plans. You will
get additional lines for you and the entire family from RM28/month. In addition, you can upgrade
to a new 4G phone for the most optimum network. While Celcom is having a Celcom MEGA
UNLIMITED deal where you can experience unlimited internet access.

This kind of promotion will attract more users as you can enjoy the internet on the best 4G LTE
network as long as you want. Besides, you can play your favourite game indefinitely, roam your
internet when you are travelling abroad and binge the latest entertainment whenever you want.
All of these deals will attract more subscribers as everyone loves promotions. From the figure
below, we can see that DiGi has the highest number of telecommunications subscribers in
Malaysia during 2016. This was because during the year 2016, DiGi had better promotions and
deals that attracted the user’s attention. In 2016, DiGi successfully gained 12.3 million
subscribers followed by Maxis with 10.85 million and lastly, Celcom Axiata gained 10.53 million.
This situation showed that having promotions is quite impactful in gaining new subscribers.

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 Figure 18: Number of Telecommunications Subscribers in 2016, Malaysia

4.4 Better Coverage

Better internet coverage means we could get internet access in that covered area. In internet
service providers, a good coverage plays a big role as the users will always expect that the
internet services will be smooth and fast all the time. If the internet service is weak, users can
get angry easily. There are many factors that slow down the internet services, not just because
of geographical factors. In fact, bad weather is also one of the causes. Bad weather could
prevent your gadgets from getting the signal from the internet tower.

Although poor internet services have occurred many times, users still do not want it to be
sluggish. This will influence user’s choice when selecting service providers, as they will select
those providers with a wider coverage area. Apart from that, it can create dissatisfaction among
users when there are poor internet services. It is very important for providers of internet services
in Malaysia to ensure that their services are consistent. From time to time, they need to expand
their coverage area to prevent receiving complaints from their users.

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 Figure 19: Mobile Experience Awards, Malaysia

(Mobile Network Experience Report, 2020)

Figure 20: Mobile Experience Awards, Malaysia

(Mobile Network Experience Report, 2020)

From the above figure, we can see that Celcom won the Mobile Experience Award Malaysia in
4G Coverage Experience category, as Celcom has a better coverage among all of them.
Consequently, consumers were already likely to pay more since they want more extensive
Internet coverage to boost their work. This situation makes the demand of Celcom get higher
day by day as users from all over Malaysia get access to the internet services wherever they
are. Especially for those who live in rural places as not all of the internet services are available
there.

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4.5 Social Networking and Communication Applications

Social media has been a powerful medium for linking individuals, forming groups, sharing one's
viewpoint, and promoting and advertising for industry. In 2018, the survey reported that there
were around 24.6 million social networking users, of whom 97.3% held a Facebook account,
making it the most popular social networking site in the world. The study showed that there were
about 27.8 million people in 2018 used contact applications. WhatsApp was the most common
chat software, as everyone has their own account. Approximately half have a Facebook
Messenger account (55.6%), followed by WeChat (36.8%) and Telegram (55.6%).

Figure 21: Social Networking and Communication Apps Account Ownership In 2018

(Internet Users Survey, 2018)

As we can see from the figure, social networking and communication application users are
increasing rapidly. Nowadays, everyone has their own social media account even for a primary
school kid. As having a social media account is one of the ways to communicate with other

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people, especially those who are far away from us. Because of that, the demand for internet
services is increasing as everyone needs an internet service to access their account.

Figure 22: Number of People Using Social Media

From the above figure, we can tell that the number of people using social media is increasing by
year. As you see, people using Facebook have exceeded 2 billion users before 2018, followed
by Youtube with almost 2 billion users in 2019. This situation is connected to the demand of
internet services, as everyone who wants to access their account needs to have an internet. So,
the demand of internet services keeps on increasing as the number of social media users are
increasing.

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4.6 Online Banking

These days, banks have online banking services that allow you to pay your expenses, pass
funds, and view from your search engine a record of your checking account transactions.
Banking from the convenience of your home makes anything you do about your money a little
smoother at any time of the day or night. Due to this condition, the demand of internet services
is increasing as online banking systems need internet services to access into the system. In
2018, 54.2% used the services, compared with 41.7% in 2016. It was in sync with statistics from
Bank Negara Malaysia (BNM), which estimates that over the past decade, the value of internet
banking transactions have risen gradually.

Figure 23: Percentage of Internet Users by Online Banking in 2018

(Internet Users Survey, 2018)

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Figure 24: Volume of Internet Banking Transactions Made by Private Persons In Malaysia from
2011 to 2019

As you can see from the figure above, the volume of internet banking transactions made by
private persons in Malaysia is increasing from 2011 to 2019. This shows more people prefer to
use online payment methods rather than old-fashioned ways. This is because it is easier to
make online transactions than using cash.

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5.0 INTERNET SERVICES DURING MOVEMENT CONTROL ORDER (MCO)

Malaysian Communications and Multimedia Commission (MCMC) detected that demand for
Internet bandwidth grew in the past few weeks as Malaysians people need to stay at home
following the implementation of the Movement Control Order (MCO) by Malaysia government on
March 18, 2020. The increase in Internet usage due to the video conferencing, e-learning and
online shopping has granted a rise in demand for better internet services during the Movement
Control Order (MCO) period.

Malaysia Internet Exchange (MyIX) recorded the highest internet traffic climax of 588Gbps,
even higher than the 532Gbps posted during the first half-month of the MCO and towering over
2019’s highest traffic climax point record of 500Gbps. Attachment to the Movement Control
Order (MCO) by staying safe at home at all times saw 23.5% higher Internet traffic all over
Malaysia during the first week of the MCO, while the second week of the MCO saw a more
increase of 8.6%. Malaysian Communications and Multimedia Commission (MCMC) allege that
all territorial telecommunications and Internet service providers in this country are candidly
working seriously to add bandwidth capacity to assure continued transmission of absolute
services during the Movement Control Order (MCO) period.

Malaysian Communications and Multimedia Commission (MCMC) also stated that the
telecommunications industry is intensifying its network action through an additional contribution
of RM400 million as declared in the Prihatin Rakyat Economic Stimulus Package (PRIHATIN) by
the Malaysia government. Besides, Prime Minister of Malaysia, Tun Muhyiddin bin Haji
Muhammad Yassin announced that all the Telco’s company is offering 1 GB internet data for
daily and education use during Movement Control Order (MCO) and Malaysia’s significant
telcos company which are Celcom, Digi, Maxis, TM and U Mobile have declared that it is
extending the servicesto the free 1GB productivity internet data offer to 24 hours per day. This
open data action was part of the short-term Economic Recovery Plan (PENJANA). It shows that
the internet is the most important thing to not just consumers.

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5.1 Demand of Internet Services During MCO

Malaysian Communications and Multimedia Commission (MCMC) detected that demand

for Internet bandwidth grew in the past few weeks as Malaysian people need to stay at home
following the implementation of the Movement Control Order (MCO) by the Malaysian
government since March 18, 2020. Because of this government's plan, the demand for internet
services boosts drastically in a short time.

Because of this implementation, Prime Minister of Malaysia, Tun Muhyiddin bin Haji
Muhammad Yassin announced that all the Telco's company is offering 1 GB internet data for
daily and education use during Movement Control Order (MCO) and Malaysia's significant
Telcos company which are Celcom, Digi, Maxis, TM, and U Mobile have declared that it is
extending the servicesto the free 1GB productivity internet data offer to 24 hours per day.

Figure 25: The graph of average data consumption based on every week and 4G download
speed experience
(Hardik Khatri,2020)

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 Based on the diagrams provided above, the average data consumption for weekly and
4G download speed download at the early of February until the middle of March 2020. In the
normal average, but when the government announced the Movement Control Order (MCO) on
16 March 2020, the graph is increasing drastically just in a few days. Also, on 1 April, when the
Telcos company started offering 1GB of data every day, the chart continued to stay in the
highest state. The data are continued to increase at a decreasing rate on 20 May and so on,
because the consumer is adapted with new environments and given a chance to go out of the
home because of the covid-19 cases in a normal stage.

5.2 Determinants of Internet Services During Movement Control Order (MCO)

5.2.1 Work From Home

Figure 25.1: Statistic of employees that be affecting by the Covid-19

(Siti Aiysyah Tumin,2020)

Based on the diagram above, the highest percentage of the employees affected by
Covid-19 outbreaks are work from home (43.7%). Nowadays, daily tasks mostly use the
internet, such as video conference, communication, and more. The consumers who demand the

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best performances from working from home during Movement Control Order (MCO) need a
better service by the internet Telco, which will boost the demand for internet services during
Movement Control Order (MCO).

5.2.1 ​Online Education

Figure 25.2: The statistic about the number of students be affected by Covid-19 outbreaks

(World Economic Forum, 2020)

The number of students affected is increasing at a fast rate until the value hit 1.38 billion
in just two months. Because of the lack of physical education, the students switch to online
education to continue the study until now. Online education will also boost the demand for
internet services due to online education such as video conferences, online quizzes, online
teaching videos, and more.

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5.3 Government Intervention

Because of many internet networks' problems during the implantation of the Movement
Control Order (MCO) such as internet crowded, online system shutting down and increase in
loading. The Malaysia Prime Minister, Tun Muhyiddin bin Haji Muhammad Yassin declared on
27 Mac 2020 that this problem would stay under the People-Centric Economic Stimulus
Package (PRIHATIN) valued at RM250 billion. Other non-government agencies also donated to
increase internet services such as Celcom, Digi, Telekom Malaysia, Time and UMobile during
Movement Control Order (MCO).

This are the initiative provided by Malaysia Government during the implementation of the
movement control order (MCO)

i. Free internet that value more than RM600 million in early April until the end of the
Movement Control Order (MCO)
ii. Mobile Postpaid and Prepaid customers from all Telcos around Malaysia can
have 1GB of free Internet per day for 11 hours.

Table 3: Table From Malaysian Communications And Multimedia Commission That Stated
About The Donations From Multiple Telcos Agency.

(Malaysia Communications And Multimedia Commission,2020)

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6.0 CONCLUSIONS

In conclusions, the results of this study indicate that internet connectivity used in Malaysia has
already begun to expand widely. Demand of internet connection is increasing due to the
demand of the consumers. In this era of globalization, the internet has grown with many facilities
and services that can make us able to access everything as it is just at our fingertips. The
internet’s progress is gradually improving day by day, thus increasing the number of
subscribers. It is also triggered by the growth of mobile broadband networks and intensive
market rivalry. The numbers of internet users boost from one year to year. Internet users survey
2018 found that mostly consumers of internet connection are from 20 until 30 years old. In
addition, gender distribution of internet users found that male is exceeds the number of internet
users for females. In the aspect of urban and rural distribution, of course internet users in urban
areas are higher than rural areas due to the internet coverage.

The Internet has become obligatory in our current lives, as well as the Internet is the medium
and network that dominates the whole world and helps billions of people to communicate on
earth. Furthermore, consumers can access the internet connection wherever they are, at any
time. For instance, we can access the internet when staying at home, while on-the-go, at work
places and so on. Some of the determinants of demand for internet services are advertisement.
Glad to let us know that 53% of internet advertising revenue was made in the second half year
in 2019. Most of the internet service providers come up with special promotion and discounts to
attract more subscribers. Next, online banking services that need internet services to access
into the system may increase the number of internet users. During the implementation of the
Movement Control Order (MCO) by the Malaysian government, the Telco’s company is offering
1GB internet data for daily and education use during MCO. Hence, the demand for internet
services boosts drastically in a short time.

34
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