KUALA LUMPUP: - The National ICT Association of Malaysia (Pikom) lauds the government's decision to reduce fixed broadband rates as it will have a catalytic effect on e-commerce and spur the growth of the economy.

With the cut in broadband rates of between 10 per cent and 57 per cent, Pikom said more affordable movement of content, data and transactions would boost the overall advancement of the local economy.

Its chairman, Cheah Kok Hoong, said businesses would be encouraged to adopt and advocate new information technology services and solutions, and jump onto the e-commerce bandwagon.

For individuals, cheaper broadband would spur contribution and participation in the knowledge economy, he said in a statement today.

"The expected growth in broadband penetration and adoption rate will also lead to greater adoption of information and communications technology especially among Small and Medium Enterprises and Small and Medium Industries sectors.

"This is vital considering that the segment is responsible for 31 per cent of the national gross domestic product and employs close to 56 per cent of the local workforce," he added. -- BERNAMA