UNCTAD – ESCAP ASIA PACIFIC REGIONAL CONFERENCE
ON E-COMMERCE STRATEGIES FOR DEVELOPMENT
November 21, 2002
Bangkok, Thailand
MALAYSIA: The New Economy
Technology Powering
Economic Transformations
BY
Rahayu Ezrani ABDUL RAHMAN
E-Business Department, Multimedia Development Corporation
1
Agenda
MSC
Strategic Policy
Directions for the
ICT Sector
Development
The MSC
Vision
Challenges
2
A knowledge and idea-based economy
where the key to wealth and job
creation are the extent to which
information, ideas, innovations and
technology are embedded in all the
various sectors of the economy
3
Strategic Policy Directions
1999: Consultant engaged to study and propose
future policy directions
Policy options proposed:
– delayed transition towards full competition; or
– rapid transition towards full competition.
Factors taken into account:
– Global trends
– Status of infrastructure
– Regulatory readiness
– Industry readiness
4
CURRENT STATUS OF MALAYSIAN
ICT INDUSTRY
4
“Advanced”
3
“Delayed
Transition”
Path
“Average”
2
“Rudimentary”
1
“Rapid
Transition”
Path
MALAYSIA
I
II
III
“Monopoly”
“Early
Competition”
“Managed
Competition”
POLICY FRAME WORK
IV
“Full
Competition”
5
POLICIES TO FACILITATE RAPID
TRANSITION
• Multimedia Super Corridor (MSC) initiatives
• Universal service provision- policy framework
in place with funding from industry and
Government
• Moves towards cost based tariff started with
tariff re-balancing implemented on March 1,
2002 for fixed line services
• Opening up the last mile by issuing new
licenses
6
POLICIES TO FACILITATE RAPID
TRANSITION
• Voice-Over-Internet Protocol legalized which
serves as an efficient and cheaper voice
service for international calls
• Control of mobile telephony charges lifted in
August 2000 which led to exponential growth
of mobile penetration
• Develop a National Spectrum Plan to
maximize spectrum usage with 3G as the first
block of spectrum assignment
7
Agenda
MSC
Strategic Policy
Directions for the
ICT Sector
Development
The MSC
Vision
Challenges
8
The MSC – A Quick Glance
Multimedia Super Corridor
• 15x50 km garden corridor
south of downtown Kuala
Lumpur
• Special cyberlaws, policies
and practices tailored to
enable residents to achieve
the full promise of
multimedia
• World-class physical infrastructure and nextgeneration 2.5-10 Gb
multimedia network
• A one-stop shop to facilitate
investment - the MDC
9
Leapfrogging Into The Information Age
Go Global
Create the ideal multimedia
environment to attract world-class
companies to use MSC as a hub
Enhance
domestic
productivity
Leapfrog into
success in
the
Create value from
Information
Information Age
Age
businesses
Catalyze a highly competitive
cluster of Malaysian multimedia/IT
companies that become worldclass over time
Lead
Regional
10
No.1
Ten Bill of Guarantees
No.2
Incentives & Programs to Create Enablers,
Meet Outcomes
Flagship Applications
11
Bill of Guarantees
FINANCIAL
1.
2.
Five-year exemption from
Malaysian income tax
renewable to 10 years,
~ relief from tax on
statutory income.
100-percent Investment
Tax Allowance (ITA).
~ those engaging in
capital-intensive activities,
or those multimedia
activities that are treated
as cost centers and not as
revenue-generating
businesses.
NON-FINANCIAL
4.
5.
6.
7.
World-class physical & IT
infrastructure
8.
Globally competitive
tariffs
High-quality urban
development
9.
3.
Duty-free importation of
multimedia equipment.
Unrestricted employment
of foreign knowledge
workers
Freedom of ownership
~ Co. can be wholly
owned by foreign legal
entities, can register as a
branch.
Freedom to source capital
globally
10. Excellent education
facilities & human
resource talent pool
12
MSC Flagship Applications
Smart Schools
Telehealth
Multipurpose Card
Technopreneur
Development
Electronic Government
R&D Cluster
E-Business
Borderless Marketing
Center
Worldwide
Manufacturing Web
13
Agenda
MSC
Strategic Policy
Directions for the
ICT Sector
Development
The MSC
Vision
Challenges
14
We have seen and done things,
are seeing and doing things,
Build Critical Mass
-internet & access devices’ penetration
-Network access & tariffs
-Telecoms infrastructure
Build Trust on the Web
-Encryption technology development
-Integrated logistics hub
-Awareness & education
Attracting Inbound Consumers
-Trading hubs
-Internet Exchange
-Global Connectivity
Organization Transformation
-Awareness and education program
-Work Culture
-Re-structuring of companies to exploit E-Commerce
Policy and Regulatory Framework
-IP Management System
-Taxation
-Consumer protection
but are also still learning…
15
Thank you
http://www.mdc.com.my
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