LEVERAGING INFRASTRUCTURE TO MEET E-GOVERNMENT NEEDS TURIDI BIN MAT Principal Assistance Secretary MINISTRY OF ENERGY, COMMUNICATIONS AND MULTIMEDIA MALAYSIA APT Regional Forum for ICT Experts in South-East Asia: Meeting the Challenges on Digital Gaps Approaching e-Government, 4-5 February 2004, Jakarta, Indonesia.

Content LEVERAGING INFRASTRUCTURE TO MEET E-GOVERNMENT NEEDS Introduction ICT Policy Strategy Development of Broadband Initiatives Conclusion

Changing Economic Structure Three Waves of Economic Change Information and Knowledge Wave 1996-2xxx Living Standards 1976-1995 Industrial wave 1957- 1975 Agricultural Wave Time

Vision of K-Malaysia 2020 2020 People are Integral Values-based Knowledge Society Competitive Knowledge Economy Economic People are Integral Value creating knowledge products and services Knowledge Society Information and Communication Technology as an Enabler ICT as a sector and information as a commodity Information Society Social Access to information Culture of life long learning and innovation United, moral and ethical society Sustainable quality of life Note: Development is non-linear

Embracing the New Economy The MSC initiative started in 1996. To jumpstart the MSC the Government implemented the flagship Applications that will transform both business as well as Govt. Business through encouragement of e - commerce Govt. through various e-government applications which are now at various stages of rolling out

Flagship Applications To Jumpstart & Accelerate Development Of MSC Smart Schools Multipurpose Card Electronic Government Developmental Flagship R&D Cluster Telehealth Environmental Flagship E-Commerce Technopreneur Development Worldwide Manufacturing Web and Borderless Marketing

Content LEVERAGING INFRASTRUCTURE TO MEET E-GOVERNMENT NEEDS Introduction ICT Policy Strategy Development of Broadband Initiatives Conclusion

Technology Policy and the New Economy Technology policy is critical for the development of the ICT industry Malaysia started early when we introduced the Cyberlaws in 1996, meant to provide the appropriate legal framework for the development of the Communication and Multimedia. Since then some new developments have taken place and one can categorize the policy and regulatory framework to match the development of components of the value chain.

Principles of Enabling Legislation Key Elements Transparency Less rather than more regulation Flexibility and generic orientation Industry self regulation Technology neutral Service focus

Cyberlaws As Instruments Of Governance Existing Cyberlaws The Computer Crimes Act 1997 The Copyright (Amendment) Act 1997 The Telemedicine Act Digital Signature Act 1997 The Communications & Multimedia Act 1998 Purpose Covers offences relating to misuse of computers. Scope of Copyright protection widened to cover communications to public through wire or wireless means. To facilitate the practice of Telemedicine To regulate the use of Digital signatures and provide its legal status for electronic transactions. To regulate and facilitate the development of converging communications and multimedia industry.

Three New Acts Electronic Transactions Act (ETA) Law of general applications that provides the necessary legal certainty for e-transactions E-Government Activities Act (EGA) Law that enables the removal of all procedural and administrative impediments for E-Government activities Personal Data Protection Act aims to built consumer trust and confidence in the handling of their personal data both on-line and off-line. Businesses must be able to assure consumers that the information that they provide especially personal information send over the Internet to vendors while browsing, making inquiries or purchasing products etc. are adequately protected and their privacy rights are not infringed.

Ten Policy Objectives of CMA 1998 Creating a global hub Building a new civil society Nurturing local content and culture Giving priority to people Nurturing user confidence in the new sector Promoting access and equity Growing applications service markets Allocating resources efficiently Developing sector capabilities Providing secure and safe networking

Self Regulatory Forums Consumer Forum Content Forum Established Service quality; Complaints handling Established Content standards CONSUMERS To be established Choice of service providers; Service reach; Cost of service Access Forum Technical Forum To be established Standards; Interoperability

Among key achievements from the introduction of the Act so far are as follows: Clear policy objectives Supportive Cyber laws Easy licensing with introduction of class category USP fund Dynamic cellular market

Generally there are 3 major policy areas we are looking at now namely Stimulating the development of the Communications and Multimedia industry Policies to widen access and bridge the digital divide Policies on security to build trust and confidence in e-transactions

Content LEVERAGING INFRASTRUCTURE TO MEET E-GOVERNMENT NEEDS Introduction ICT Policy Strategy Development of Broadband Initiatives Conclusion

Infrastructure The most critical infrastructure is the network infrastructure since information as well as knowledge needs to be communicated. All flagship applications are networked based. Network has to be ubiquitous to derive optimum benefits to organizations and society. Network penetration is still low, with internet penetration only about 11% of population. Broadband (bandwidth for data & voice more than 128 kbps) is less than 1%.

NETWORK PENETRATION KPI Fixed lines per 100 population (teledensity) CURRENT LEVEL (M’SIA)2003 CURRENT WORLD CLASS LEVEL TARGET (MP-8) 2005 Fixed lines per 100 population (teledensity) 19 50 30 Internet users per 100 population 11.3 25 25 Mobile subscriber per 100 population 41.3 70 50* * PROJECTION

Broadband Penetration Rates (%) Among Selected Asian Countries In 2002 Source: Frost & Sullivan

Why broadband? In the context of the development a knowledge-based society and economy Pre-requisite for high-speed info-communications access New benchmarks on national infrastructure and country competitiveness Expansion of Multimedia Super Corridor (MSC) nationwide Rollout of e-government and other flagship applications Potential for bridging the digital divide hence the knowledge divide

Strategies for Broadband Rollout Government formulating National Broadband Plan encompassing: Regulatory Framework Demand Supply Incentives Focal Point

Short-term Strategy Initial government intervention to catalyse increase demand and supply of broadband by Boosting-up broadband take up by identified sectors to increase demand Stimulating the rollout of broadband infrastructure among service providers to increase supply Until a 5% broadband penetration is achieved Countries like Korea, Australia, Sweden, France and UK have adopted a similar strategy

Key Drivers of Broadband in Malaysia (1/2) MSC Flagship Applications Electronic Government (rollout - about 20,000 sites) Smart Schools Telehealth – linking hospitals and clinics throughout the country Government Multipurpose Card (GMPC) or MyKad e-Commerce Education – distance e-learning, video conferencing

Key Drivers of Broadband in Malaysia (2/2) R&D – IHLs and Research Institutes Local Administration & other government institutions Entertainment Industry (VOD, Video streaming) Telecentres – residential, community centres

Connecting Communities Programme Focus on a specified community groups Community Network Government Departments Federal State District EG * Network Schools School Net Network Universities & Research Institutions Malaysia Research & Education Network (MyREN) Trade Facilitation DagangNet Hospitals and clinics Telehealth Network Internet Community Centres & General Public ADSL, Wi Fi, ISDN And VSAT ADSL- Asymmetrical Digital Subscriber Line Wi Fi - Wireless Fidelity ISDN - Integrated Switched Digital Network VSAT- Very Small Aperture Terminal

Content LEVERAGING INFRASTRUCTURE TO MEET E-GOVERNMENT NEEDS Introduction ICT Policy Strategy Development of Broadband Initiatives Conclusion

Conclusion Need to provide right policy to encourage smooth implementation of e-Government and other ICT initiatives Need greater efforts to stimulate the development of broadband initiatives Need to promote ICT awareness and education to all levels of society in order to bridge the digital divide

Thank You Ministry of Energy, Communications and Multimedia,Malaysia http://www.ktkm.gov.my E-mail: turidi@ktkm.gov.my