- M ULTIMEDIA D EVELOPMENT C ORPORATION C OPYRIGHT - 1 The Multimedia Super Corridor A Model for...

1- MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT -

The Multimedia Super Corridor

A Model for Fostering Economic Growth and Development using IT

World Trade OrganizationInformation Technology Symposium

Geneva, July 16, 1999Presentation by

Mohd. Salleh MasdukiMultimedia Development Corporation

Malaysia


TOPICS

1. NEW FORCES IN PLAY

2. CREATING THE IDEAL MULTIMEDIA ENVIRONMENT

3. RESPONSE FROM WORLD CLASS COMPANIES

4. CATALYZING LOCAL COMPANIES


Globalization and the Information Age

Driven by

Technology Change Economic Liberalization

The natural barriers of time, space and form have disappeared

In a knowledge economy and borderless world

both opportunities and challenges abound

Digitalization + Convergence + Microprocessor technology +

Interactive broadband + Internet

=

Continuously declining costs and increasing speed of

communication and computing

Economic liberalization, deregulation

=

freer global capital and trade flows


New Forces for Gaining Competitive Edge

New Forces

Moore’s Law Metcalfe’s Law

Coase’s Theory of Transaction Cost

Creation of the Digital/Knowledge Economy

Transistor Density in a Chip Doubles Every 18 months

~~

Computer Power Doubles Every 18 months

The Utility Value of a Network is the Square of the Number of

Users in the Network



A company will grow to the point where the cost of performing a task in-house is equal to the cost of

doing the job in the open market.

Transaction cost is dramatically reduced with the use of Information and Communications

Technologies.



0

0.2

0.4

0.6

0.8

1

1.2

Branch Tel ATM Internet

Cost

$1.07

$0.68

$0.27

$0.10

US$

Banking Transaction Cost


Results from the 3 Key Forces

Moore’s Law

Metcalfe’s Law Coase’s Theory of Transaction Cost

Breakdown of the Natural Barriers of Time,

Space and FormDisrupts

• Customer relationships

• Distribution networks

• Competitor behaviour

• Economies of size and scale Killer

Applications


1. THE ECONOMIC FACTOR - HOW DO WE SUSTAIN OUR GROWTH TOWARDS 2020?

2. THE SOCIAL FACTOR - HOW DO WE ENSURE EQUITABLE AND EFFICIENT ACCESS TO PUBLIC GOODS, SERVICES AND INFORMATION?

3. THE GLOBAL FACTOR - HOW DO WE DEAL EFFECTIVELY WITH THE FORCES OF GLOBALIZATION AND BECOME A SIGNIFICANT CONTRIBUTOR TO THE INFORMATION AGE?

THE MSC SOUGHT TO ANSWER A NUMBER OF CRITICAL QUESTIONS FACING THE NATION


Create the ideal multimedia environment to attract world-

class companies to use as a hub

Catalyze a highly competitive cluster of Malaysian multimedia/IT companies

that become world-class over time

Leapfrog into success in the

Information Age

Go Global

Lead Regional

Create value from Information Age

businesses

LEAPFROGGING MALAYSIA’S DEVELOPMENT

Enhance domestic

productivity

- MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 10

MSC boundaryPETALING JAYA

KLCC

KLIA

AIRPORT CITY

Technology Park

PUTRAJAYA

KL Tower

“Multimedia Utopia”

• 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 infra-structure and next-generation 2.5-10 Gb multimedia network

• A one-stop shop to facilitate investment - the MDC

CYBERJAYA

MALAYSIA’S RESPONSE - THE MSC - NOT JUST ANOTHER TECHNOLOGY PARK


1996 2020

Leapfrog into

leadership in the

Information Age

Transform Malaysia into a knowledge society

Phase 3Phase 2

Link the MSC to other cybercities in Malaysia and worldwide

• 1 Corridor

• 50 world-class companies

• Launch 7 flagship applications

• World-leading framework of cyberlaws

• Cyberjaya as world-leading intelligent city

Milestones • Web of corridors


• Set global standards in flagship applications

• Harmonized global framework of cyberlaws

• 4-5 intelligent cities linked to other global cybercities

• All of Malaysia


• Global test-bed for new multimedia applications

• International CyberCourt of Justice in MSC

• 12 intelligent cities linked to global information highway

Phase 1

Successfully create the Multimedia Super Corridor

THE MSC VISION: FROM HERE TO 2020


The Government of Malaysia commits the following to MSC Status Companies

1. Provide a world-class physical and information infrastructure

2. Allow unrestricted employment of knowledge workers

3. Ensure freedom of ownership

4. Allow freedom of sourcing capital globally for MSC infrastructure and freedom of borrowing funds

5. Provide competitive financial incentives including no income tax or an investment tax allowance for up to ten years and no duties on the import of multimedia equipment

6. Become a regional leader in intellectual property protection and cyberlaws

7. Ensure no censorship of Internet

8. Provide globally competitive telecoms tariffs

9. Tender key MSC infrastructure contracts to leading companies willing to use MSC as their regional hub

10. Provide a high powered implementation agency to act as an effective one-stop super-shop

THE MSC BILL OF GUARANTEES


CYBERLAWS

Telemedicine Act

Electronic Government Law

Digital Signature Act

Amendments to the Copyright Act 1987

Computer Crimes Act

Communications & Multimedia Act

STATUSEnforced 1st Oct.1998. Controller of Certification Authority appointed

Enforced 1st April 1999. Commission - appointed 1st Nov. 1998

All passed by Parliament - 1997.Yet to be enforced

In the process of being drafted

Soft InfrastructureCyberlaws - Current Status

Enforced 1st April1999

Data Protection Law


MSC

R&D cluster

Borderless marketing center

Chinese

Bahasa

English

JapaneseTelemedicine

Worldwide manufacturing web

World-first multipurpose card

Connection

Optical

Magnetic

Contact Contactless

2020 Electronic

governmentSmart schools

THE FLAGSHIP APPLICATIONS WILL PROVIDE OPPORTUNITIES FOR WEB-BASED COLLABORATION


DESIGNATED CYBERCITIES – JULY 1999

KUALA LUMPUR TOWER

KUALA LUMPUR

CITY CENTRE

TECHNOLOGYPARK MALAYSIA

CYBERJAYA (MSC HQ)KLIA

CyberjayaPutrajaya

UPM Incubation Center


Attractive Living Environment in Cyberjaya:Completed and Planned Projects – July 1999

AmenitiesCity Command CentreCyberpark

E Ve

e-VILLAGEEntertainment Village

Housing60 apartment units available818 residential units ready by

2000


NTT MSC Center2nd largest NTT R&D facility outside Japan

Multimedia University3,000 students admitted

TM Cyberjaya CentralState-of the-art exchange enabling quality

broad band services

Central IncubatorCapacity: 45,000 sfTaken: 36,000 sf

Creating Ideal Multimedia Environment in Cyberjaya: Completed Projects – July 1999


MSC Status Companies - Participating Countries (as at July 1 ,1999)

USA9%

Canada1%

Europe12%

Japan4%

Others8%

Local43%

Foreign JV2%

JV with local21%

Total Approved Applications: 228

Total Number of Applications: 288


MSC Status Companies By Activity (as at July I,1999)

Telecoms 13%Heavy Users 3%

Training/Edu 3%

Content 17%

System Integ 15%

Electronics 5%

Post Prod/Animation/

Film 8%

Software 36%


Critical ingredients for creating Malaysian

Technoprenuers

Venture Capital/ Financing

Incubation Centres

Market Access

HRD/Training

R&D Grant

Incentives


TECHNOLOGY FOCUS OF 122 MALAYSIAN MSC-STATUS SMES

Software Development 33

E-Commerce 17

Telecommunications 10

Content Creation & 14 Training

Production/Post Production 12 Animation/Broadcasting

Internet Publishing 9

Systems Integration 7

Smart Card Solutions 5

Virtual Reality 3

Telemedicine

2

Chip Design

2

Authentication/ 2 Encryption Technologies

Remote Storage & Retrieval 2

Remote Energy 1 Management Systems

GIS

1

Borderless Marketing

1

DVD

1

22- MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT - 8- MULTIMEDIA DEVELOPMENT CORPORATION COPYRIGHT -

MSC Flagship Webs

Smartschools

World’s firstmultipurpose card

Singapore

Australasia

Japan

Philippines

Taiwan

Europe/ Scandinavia South Asia

ElectronicGovernment

R&D cluster

BUILDING GLOBAL BRIDGES THROUGH 7 FLAGSHIPAPPLICATIONS

Borderlessmarketing center

Worldwidemanufacturing web

Tele-medicine

Africa

North America

South America

Indonesia


.…Thank you….

http://www.mdc.com.my

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