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Tech firm woes to hit new high

The number of business failures in the technology, media and telecommunications (TMT) sector is set to peak at 2,360 in 2010, exceeding levels seen in the aftermath of the dot-com bust. According to the latest Industry Watch report by accountants and business advisors, BDO Stoy Hayward, the business failure rate will peak at 1.5 per cent in 2010, higher than the 1.3 per cent seen in 2002. A sharp contraction in business investments, down by 3.6 per cent in the first quarter of 2009, is among the key drivers for this surge in bankruptcies.