Now that the government has decided to allow the RM200 rebate for all types of smartphones, local phone distributors and telecommunication providers are now experiencing a big jump in sales.

For some, problems have even cropped up: they do not have enough phones to sell because of the surge in demand.

The government's move to remove the limit to smartphones costing RM500 each or less is expected to benefit about one million youths between 21 and 30 years earning less than RM3,000 a month.

Jason Lo, Chief Executive Officer of Tune Talk Sdn Bhd, said since the announcement, demand for its smartphones has risen by over 50 per cent.

Tune Talk is one the service providers for the package under the Malaysian Communications and Multimedia Commission (MCMC).

"The announcement was a good move by the government. We receive around 10 to 15 new applications for the rebate daily and the number is rising," Lo told Bernama.

The government's pro-active move also benefited Tune Talk's 800 dealers nationwide, he said.

"We do not have a problem in terms of smartphones stocks as our policy is to order only when there is a demand. Currently, demand is still under control," Lo said.

Eddy Tay, Head of Sales at NineTology Malaysia Sdn Bhd, said youths were benefiting from the government effort to equip them with smartphones as they have more models now to choose from.

"Youths these days not only purchase smartphones to communicate but also for Internet data," he said.

With the latest announcement, Tay said demand from his distributors had increased.

Meanwhile, ZTE Malaysia Director of Terminal Division, Jeremy Zhao, hoped that the government could extend the campaign to not only smartphones but also to the entire list of mobile broadband products to help enrich end-user options and increase mobile broadband penetration in Malaysia.

"Initially, 23 models were shortlisted, but now all smartphone vendors stand to benefit," he said, adding that his company was also experiencing an increase in sales.