Presentation on theme: "The Multimedia Super Corridor"— Presentation transcript:
1 The Multimedia Super Corridor A Model for Fostering Economic Growth and Development using ITWorld Trade OrganizationInformation Technology SymposiumGeneva, July 16, 1999Presentation byMohd. Salleh MasdukiMultimedia Development CorporationMalaysia
2 TOPICS 1. NEW FORCES IN PLAY 2. CREATING THE IDEAL MULTIMEDIA ENVIRONMENT3. RESPONSE FROM WORLD CLASS COMPANIES4. CATALYZING LOCAL COMPANIES
3 Globalization and the Information Age Driven byTechnology ChangeEconomic LiberalizationDigitalization + Convergence + Microprocessor technology + Interactive broadband + Internet=Continuously declining costs and increasing speed of communication and computingEconomic liberalization, deregulation=freer global capital and trade flowsThe natural barriers of time, space and form have disappearedIn a knowledge economy and borderless worldboth opportunities and challenges abound
4 New Forces for Gaining Competitive Edge Moore’s LawMetcalfe’s LawTransistor Density in a Chip Doubles Every 18 months~~Computer Power Doubles Every 18 monthsThe Utility Value of a Network is the Square of the Number of Users in the NetworkCoase’s Theory of Transaction CostCreation of the Digital/Knowledge Economy
5 Coase’s Theory of Transaction Cost 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.
6 Coase’s Theory of Transaction Cost Banking Transaction CostUS$$1.07$0.68$0.27$0.10
7 Results from the 3 Key Forces Moore’s LawMetcalfe’s LawCoase’s Theory of Transaction CostBreakdown of the Natural Barriers of Time, Space and FormDisruptsCustomer relationshipsDistribution networksCompetitor behaviourEconomies of size and scaleKillerApplications
8 THE MSC SOUGHT TO ANSWER A NUMBER OF CRITICAL QUESTIONS FACING THE NATION 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?
9 LEAPFROGGING MALAYSIA’S DEVELOPMENT Go GlobalCreate the ideal multimedia environment to attract world-class companies to use as a hubEnhance domestic productivityLeapfrog into success in the Information AgeCreate value from Information Age businessesCatalyze a highly competitive cluster of Malaysian multimedia/IT companies that become world-class over timeLead Regional
10 MALAYSIA’S RESPONSE - THE MSC - NOT JUST ANOTHER TECHNOLOGY PARK “Multimedia Utopia”15x50 km garden corridor south of downtown Kuala LumpurSpecial cyberlaws, policies and practices tailored to enable residents to achieve the full promise of multimediaWorld-class physical infra-structure and next-generation Gb multimedia networkA one-stop shop to facilitate investment - the MDCMSC boundaryKLCCPETALING JAYAKL TowerTechnology ParkCYBERJAYAPUTRAJAYAAIRPORT CITYKLIA
11 THE MSC VISION: FROM HERE TO 2020 Leapfrog into leadership in the Information AgeTransform Malaysia into a knowledge societyPhase 3Phase 2Link the MSC to other cybercities in Malaysia and worldwidePhase 1Successfully create the Multimedia Super Corridor199620201 Corridor50 world-class companiesLaunch 7 flagship applicationsWorld-leading framework of cyberlawsCyberjaya as world-leading intelligent cityMilestonesWeb of corridors250 world-class companiesSet global standards in flagship applicationsHarmonized global framework of cyberlaws4-5 intelligent cities linked to other global cybercitiesAll of Malaysia500 world-class companiesGlobal test-bed for new multimedia applicationsInternational CyberCourt of Justice in MSC12 intelligent cities linked to global information highway
12 THE MSC BILL OF GUARANTEES The Government of Malaysia commits the following to MSC Status Companies1. Provide a world-class physical and information infrastructure2. Allow unrestricted employment of knowledge workers3. Ensure freedom of ownership4. Allow freedom of sourcing capital globally for MSC infrastructure and freedom of borrowing funds5. 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 equipment6. Become a regional leader in intellectual property protection and cyberlaws7. Ensure no censorship of Internet8. Provide globally competitive telecoms tariffs9. Tender key MSC infrastructure contracts to leading companies willing to use MSC as their regional hub10. Provide a high powered implementation agency to act as an effective one-stop super-shop
13 Soft Infrastructure Cyberlaws - Current Status Enforced 1st Oct Controller of Certification Authority appointedDigital Signature ActAmendments to the Copyright Act 1987Enforced 1st April1999Computer Crimes ActAll passed by ParliamentYet to be enforcedTelemedicine ActEnforced 1st April Commission - appointed 1st Nov. 1998Communications & Multimedia ActDataProtection LawIn the process of being draftedElectronicGovernment Law
14 THE FLAGSHIP APPLICATIONS WILL PROVIDE OPPORTUNITIES FOR WEB-BASED COLLABORATION MSCR&D clusterBorderless marketing centerChineseBahasaEnglishJapaneseTelemedicineWorldwide manufacturing webWorld-first multipurpose cardConnectionOpticalMagneticContactContactless2Electronic governmentSmart schools
15 DESIGNATED CYBERCITIES – JULY 1999 UPM Incubation CenterKUALA LUMPURCITY CENTRETECHNOLOGYPARK MALAYSIACyberjayaPutrajayaKLIAKUALA LUMPUR TOWERCYBERJAYA (MSC HQ)
16 Attractive Living Environment in Cyberjaya: Completed and Planned Projects – July 1999 CyberparkAmenitiesCity Command CentreeEVe-VILLAGEHousing60 apartment units available818 residential units ready by 2000Entertainment Village
17 Creating Ideal Multimedia Environment in Cyberjaya: Completed Projects – July 1999 Multimedia University3,000 students admittedNTT MSC Center2nd largest NTT R&Dfacility outside JapanTM Cyberjaya CentralState-of the-art exchange enabling quality broad band servicesCentral IncubatorCapacity: 45,000 sfTaken: 36,000 sf
18 MSC Status Companies - Participating Countries (as at July 1 ,1999) Total Approved Applications: 228Total Number of Applications: 288
19 MSC Status Companies By Activity (as at July I,1999)
20 $ Critical ingredients for creating Malaysian Technoprenuers Incubation CentresVenture Capital/ FinancingMarket AccessCritical ingredients for creating Malaysian TechnoprenuersR&D GrantHRD/TrainingIncentives
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