Progress Update on the Multimedia Super Corridor Presentation to Delegates From The Royal Government of Bhutan at Wisma UN, Kuala Lumpur, Malaysia Thursday 25th Feb 1999 - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 1 Agenda 1. The concept and rationale for Malaysia’s Multimedia Super Corridor 2. Creating the ideal multimedia environment 3. Participation in the Multimedia Super Corridor 4. Nurturing small and medium-sized companies - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 2 Multimedia Super Corridor (MSC) KLCC PETALING JAYA SHAH ALAM KLANG EDER AL HI PELABUHAN KLANG L COUNTRY HEIGHTS KAJANG SEMENYIH TELOK PANGLIMA GARANG CYBERJAYA PUTRAJAYA BANDAR BARU BANGI BERANANG PULAU INDAH AIRPORT CITY A AY PULAU CAREY BANTING TELOK DATOK BANDAR SALAK BANDAR BARU TINGGI NILAI KLIA SEPANG SEREMBAN PORT DICKSON - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 3 MSC Physical Boundary Puchong HI-TECH PARK Bkt. Jalil TELESUBURB CYBERJAYA TECHNO. PARK UPM Serdang PUTRAJAYA TELESUBURB CYBERCITIES • Cyberjaya • Technology Park Malaysia • UPM (Silicon Valley Project) • KLCC Twin Towers • KL Tower Dengkil AIRPORT CITY KLIA Inner conical zone KLIA - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 4 Creating Wealth Potential per capita GDP in real 1992 US$ thousands 16 Potential Information Age approach 14 12 10 Vision 2020 requirement 8 6 Current industrial approach 4 2 0 1992 1996 2000 2004 Source: EPU; IMF; World Bank; McKinsey analysis - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 2008 2012 2016 2020 Leapfrogging Malaysia’s Development Go Global Create the ideal multimedia environment to attract worldclass companies to use as a hub Enhance domestic productivity Leapfrog into success in the Information Age Create value from Information Age businesses Catalyze a highly competitive cluster of Malaysian multimedia/IT companies that become world-class over time - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - Lead Regional 6 MSC Vision Phase 1 Successfully create the Multimedia Super Corridor Phase 2 Link the MSC to other cybercities in Malaysia and worldwide 1996 Milestones • 1 Corridor Phase 3 Transform Malaysia into a knowledge society Leapfrog into leadership in the Information Age 2020 • Web of corridors • All of Malaysia • 50 world-class companies • 250 world-class companies • 500 world-class companies • Launch 7 flagship applications • Set global standards in • Global test-bed for new flagship applications multimedia applications • World-leading framework of cyberlaws • Harmonized global • International CyberCourt framework of cyberlaws of Justice in MSC • Cyberjaya as worldleading intelligent city - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - • 4-5 intelligent cities linked to other global cybercities • 12 intelligent cities linked to global information highway 7 Seven Flagship Applications World-first multipurpose card Magnetic Contact R&D cluster Connection Contactless Optical 2 0 2 0 Smart schools M S C Worldwide manufacturing web Telemedicine Chinese Japanese Bahasa English - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - Electronic government Borderless marketing center 8 Agenda 1. The concept and rationale for Malaysia’s Multimedia Super Corridor 2. Creating the ideal multimedia environment 3. Participation in the Multimedia Super Corridor 4. Nurturing small and medium-sized companies - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 9 The MSC Provides A Unique, World-class Multimedia Environment And Incentive Package KL Cyber Laws I To ASEAN, Japan, US, Europe Cyber Putra Jaya Jaya KLIA Leading-edge cyberlaws and incentives MDC as high-powered, one-stop super agency - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - World-class IT network Top quality urban development in Cyberjaya 10 Access To A Unique, World-class Multimedia Environment And Incentive Package KL Cyber Laws I To ASEAN, Japan, US, Europe Cyber Putra Jaya Jaya KLIA World-class IT network Leading-edge cyberlaws and incentives MDC as high-powered, one-stop super agency - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - Top quality urban development in Cyberjaya 11 The MSC Bill Of Guarantees The Government of Malaysia commits the following to MSC Status Companies: 1. Provide a world-class physical and 6. Become a regional leader in information infrastructure intellectual property protection and cyberlaws 2. Allow unrestricted employment of knowledge workers 7. Ensure no censorship of Internet 3. Ensure freedom of ownership 8. Provide globally competitive telecoms tariffs 4. Allow freedom of sourcing capital globally for MSC infrastructure and 9. Tender key MSC infrastructure freedom of borrowing funds contracts to leading companies willing to use MSC as their regional 5. Provide competitive financial hub incentives including Pioneer Status (up to 10 years) or an 10. Provide a high powered investment tax allowance ( up to 5 implementation agency to act as an years) and no duties on the import effective one-stop super-shop of multimedia equipment - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 12 Cyberlaws - Achievement To-Date CYBERLAWS STATUS “Digital Signature” Amendments to the Copyright Act 1987 “Computer Crimes” All passed by Parliament. “Telemedicine ” “Communications & Multimedia” “Data Protection” “Electronic Government” - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - Studies to be made. If feasible, acts will be drafted and tabled in Parliament in 1999. 13 Access To A Unique, World-class Multimedia Environment And Incentive Package Cyber Laws KL I To ASEAN, Japan, US, Europe Cyber Jaya Leading-edge cyberlaws and incentives Putra Jaya KLIA World-class IT network MDC as high-powered, one-stop super agency - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - Top quality urban development in Cyberjaya 14 The MSC Is Supported By A Comprehensive I.T. Infrastructure . . . Fibre coverage KL I Description To ASEAN, Japan, US, Europe Cyber Jaya Putra Jaya • Open multimedia network for easy interconnect • 2.5-10 Gb fibre backbone with ATM switches • Direct 5 Gb fibre linkage to ASEAN, Japan, US, and Europe by 1997 KLIA • 100% fibre access network Phase 1 loop (1998) Phase 2 loop (2005) I International gateway • Fully managed, highly reliable and secure network • Most cost-competitive and innovative tariffs Node - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 15 Access To A Unique, World-class Multimedia Environment And Incentive Package KL Cyber Laws I To ASEAN, Japan, US, Europe Cyber Putra Jaya Jaya KLIA Leading-edge cyberlaws and incentives World-class IT network Top quality urban MDC as high-powered, development in Cyberjaya one-stop super agency - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 16 Development Of Cyberjaya FLAGSHIP ZONE Phase 2 Phase 1 - 1,460 ha Phase 2 - 1,360 ha Total MMU Phase 1 2,820 ha MMU = MULTIMEDIA UNIVERSITY - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 17 Cyberjaya Development Target Timeline 1997 1998 1999 INITIAL PLAN (1996) 2000 MSC companies move to CyberJaya MDC move to Cyberjaya Infrastructure completed Cyberjaya Opening ACCELERATED DEVELOPMENT (1997) MDC move to 10 Companies Cyberjaya already in Cyberjaya I year ahead of schedule 40 more expected - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 18 Regional Access to Cyberjaya Petaling Jaya Shah Alam Expressway (KESAS) Status: Operational Shah Alam Damansara-Puchong Highway (LDP) Status: Operational Puchong Kajang North-South Expressway Central Link (ELITE) Status: Operational Putrajaya CYBERJAYA South Klang Valley Expressway Status: Deferred Elite-Cyberjaya-Putrajaya (Putrajaya Link) Status: Completion 12/99 - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - Dedicated Highway Status: Deferred Kuala Lumpur N Dengkil KLIA Seremban ERL Status: Completion rescheduled to year 2000 North South Expressway (KL - Seremban Highway) Status: Operational New B15 Status: Ph. 1A - Completion 03/99 Ph. 1B - Completion 09/99 19 Cyberjaya Internal Road Network New B15 -- Phase 1A Completion: Mar. 1999 Current: Final Completion Stage Interchange D Current: Completed New B15 -- Phase 1B Completion: Sept. 1999 Current : Earthworks in Progress Bridge D2 Completion: Jun. 1999 Current: Bridge Span Across New B15 Completed MSC HQ Road A (Multimedia Road) Current: Completed N - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - Road D (APEC Road) Completion: Oct. 1998 (Phase 1) One Carriageway Completion: April 1999 (Overall) Current: Balance of Roadwork in Progress Putrajaya Link Completion: Dec. 1999 Current: Earthworks & Piling for Elevated Viaduct in Progress Dedicated Highway Current : Deferred 20 Land Prices At Cyberjaya Types Rate (psf)* Residential RM 35 - 55 US$ 9 - 15 Enterprise RM 40 - 60 US$ 11 - 16 Commercial RM 85 - 110 US$ 23 - 29 * Prices vary depending on size, location and usage. US-RM conversion rate of 3.80 - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - Access To A Unique, World-class Multimedia Environment And Incentive Package KL Cyber Laws I To ASEAN, Japan, US, Europe Cyber Putra Jaya Jaya KLIA Leading-edge cyberlaws and incentives World-class IT network Top quality urban MDC as high-powered, development in one-stop super agency Cyberjaya - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 23 MDC Will Act As A One-stop Super Agency To Ensure Success Of MSC And Its Clients Roles and powers Governance and funding • Company incorporated under the Companies Act • Empowered “one-stop shop” for all approvals • Marketer to international and Malaysian companies • Provider of client service and quality control over MSC environment • Coordinator of MSCrelated contracts • Financier to foster entrepreneurship by providing access to capital Mission: Ensure world’s best environment for multimedia • Owned and initially funded by Federal Government • Will become selffunding over time by participating in value creation activities • Planned overseas network of marketing offices • Facilitator of MSC Status award - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 24 Agenda 1. The concept and rationale for Malaysia’s Multimedia Super Corridor 2. Creating the ideal multimedia environment 3. Participation in the Multimedia Super Corridor 4. Nurturing small and medium-sized companies - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 25 Qualifying Criteria To Obtain MSC Status 1. Provider or Heavy User of Multimedia products and services 2. Employ a substantial number of knowledge workers 3. Strong value proposition specifying how operations will contribute to the development of MSC and Malaysia 4. Establish separate legal entity for MSC-qualifying activities 5. Locate in an MSC-designated cybercity 6. Comply with environmental guidelines - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 26 Applications For MSC Status - February 2, 1999 Borderline 11% (30) Rejected 3% (9) Total Applications: 268 - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - Work In progress 11% (30) Approved 75% (199) 28 Ownership Structure Of MSC Companies February 2, 1999 Canada 1% USA 10% European 13% Japan 3% Foreign JV 2% JV with local 25% Local 46% - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 29 Approved Companies By Activity February 2, 1999 Software 36% Systems Integration 15% Telcoms 10% Electronics 6% Post Production/ Animation/ Film 8% Heavy Users 3% Training /Education 3% - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - Content 19% 30 29 World Class Companies With MSC Status February 2, 1999 •Nokia (M) •Fujitsu (Malaysia) •SITA •Bloomberg •SAP Regional Enterprise Center •Siemens Multimedia •Motorola Multimedia •Intel Malaysia Design Center •Reuters •Newbridge Networks •Fujitsu Telecommunications •Lotus Development •Pernec-NEC Multimedia R&D Center •Lucent Technologies •BT Multimedia •Oracle MSC •Sun Microsystem •Ericsson Support Malaysia •Ericsson Academy •Ericsson Data •NTT (MSC •EDS •Ericsson-Hewlett Packard •Compaq@ MSC •Asia Pacific Information Service (DHL) •Microsoft Knowledge Capital Center •Baan Education Asia Pacific •Shell Services International •BAT-Asia Pacific IT Development Center - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 31 Key Financial Highlights - February 2, 1999 (RM millions) Key Indicators of 199 Approved MSC Companies Year 1 Year 5 Investment 2,287 4,016 Revenue 2,232 14,357 Profit -499 4,249 - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 32 Projected Growth of Knowledge Workers - Feb 2, 1999 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 1997 1998 CEOs/Directors - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 1999 Mgrs/Sr.Execs 2000 2001 Key IT/Multimedia staff 33 Agenda 1. The concept and rationale for Malaysia’s Multimedia Super Corridor 2. Creating the ideal multimedia environment 3. Participation in the Multimedia Super Corridor 4. Nurturing small and medium-sized companies - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 34 MDC ACCESS Potential world class IT & Multimedia companies IT & Multimedia SMEs Linkage to funding sources Facilitation of smart partnerships - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - Linkage to business opportunities 35 Thank You - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 36 Contact: Kamil Ahmad Othman Senior Manager Corporate Communications Multimedia Development Corporation 63000 Cyberjaya Selangor, Malaysia e-mail:kami@mdc.com.my - MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 37