ADB/ITU FINAL INTERNATIONAL WORKSHOP ON RURAL ICT DEVELOPMENT 1st July 2011 Krabi, Thailand Enter ITU-UUM ASP CoE For Rural ICT Development Universiti Utara Malaysia 06010 UUM Sintok, Kedah Darul Aman, MALAYSIA. Tel: +604-928 4751 Fax: +604-928 4792 Email: itu@uum.edu.my Website: http://www.itu.uum.edu.my

Malaysia Country Report SESSION 3: FUNDING MECHANISM

Funding Sources Public Driven Fund Government allocation through budgeting process Private Driven Fund Private sectors’ mandatory contribution through the implementation of Acts.

Public Funding Allocation Process 1. Central Annual Budget 2. Allocation based on sectors 3. Allocation to Ministries responsible to sectors 4. Allocation based Agencies 5. Allocation based on Programmes

ICT Financing & Funding based on Programmes Demonstrator Application Grant Scheme (DAGS) Enterprise Innovation Fund Science Fund TechnoFund eContent Fund MAVCAP Fund MSC Malaysia Research and Development Grant Scheme (MGS) SMIDEC Grants Special Stimulus Package

Funding Allocation for ICT - Public

Private Contribution To Fund Process 1. Creation of Act 2. Enforcement of Act 3. Companies’ Performance 4. Contribution to fund 5. Disbursement of Fund

Programmes under Private Fund Universal Service Provision (USP)

Funding Sources for ICT Development USP Fund Contributions and Expenditures Source: 2009 Annual Report (SKMM)

USP Funding Management USP project Status of Project Committed/Budgeted Amount (RM) Basic telephony The provision of basic telephone infrastructure and services to USP designated areas Pilot project began in 2002 and since then around 57,500 households have benefited from the telephony projects. RM 629.23 million Telecommunication towers for expansion of cellular coverage The building of telecommunication towers and facilities across the country including the East-West Highway and Time 3 projects in USP designated areas Construction of 873 telecommunication towers across the country including for Sabah and Sarawak Cellular coverage to populated areas of the country is expected to increased from 71% in 2004 to 97% by 2011. RM1.87 billion Source: Press Release, 1 November 2010 (SKMM)

USP Funding Management USP project Status of Project Committed/Budgeted Amount (RM) Community Broadband Centres (CBC) and Community Broadband Libraries (CBL) Communities in underserved areas have access to broadband services and ICT facilities Basic ICT and content development training provided free at these centres by supervisors appointed from the local communities. Currently there are 246 CBC and 100 CBLs established since 2007 with 80,799 to date. Another 100,000 additional members expected with 1Malaysia Netbook distribution for Phase 1. Members are mostly rural folks with low-income who may not be able to afford computers and Internet access on their own, but through use of CBC and CBLs is now Internet or ICT savvy and have access to facilities such as e-learning, e-Government and other on-line services and information. RM573.70 million Source: Press Release, 1 November 2010 (SKMM)

USP Funding Management USP project Status of Project Committed/Budgeted Amount (RM) 1Malaysia Netbook Distribution of 1Malaysia Netbooks to qualified Malaysians. For Phase 1, recipients of the Netbooks are secondary students whose household income is less than RM 3,000 and the recipients reside in a district where SKMM had established CBC. It is expected that the project will contribute to increase of 9% to the 50% broadband penetration target by end of 2010. Distribution in phases 1, 2 & 3 Phase 1 – 123,000 units of 1Malaysia Netbooks allocated for distribution. Phase 2 – Request for Proposal issued by SKMM on 17 August 2010 and currently undergoing evaluation for award of project. Phase 3 – will be implemented after impact study conducted for Phase 1 and 2 implementation. RM1.00 billion CBC-to-Home Expansion of broadband network coverage areas to the communities surrounding CBCs and CBLs. Implementation of project involving 246 CBC areas to begin by end of 2010 RM150.00 million Source: Press Release, 1 November 2010 (SKMM)

USP Funding Management USP project Status of Project Committed/Budgeted Amount (RM) Mini CBC/ Pusat Internet Rakyat (PIR) Transformation of 121 Information Department regional offices around the country into mini community broadband centres or ‘Pusat Internet Rakyat (PIR)’ Phase 1 of the project has already been completed whilst phase 2 work is in progress and phase 3 to be commenced by year end 2010 involving 121 sites RM10.00 million Collective Broadband Network/‘Kg. WiFi’ Provision of broadband network to identified rural communities 400 villages identified across the country including Sabah and Sarawak. Pilot project began in July 2010 and 400 sites to commence implementation nationwide by year end 2010. 7 Kg Wi-Fi have been established including 4 in Sabah and Sarawak RM520.00 million Other committed projects Other collective broadband network projects RM40.00 million Source: Press Release, 1 November 2010 (SKMM)

Monitoring & Evaluation 1. Feedback Programmes 2. Agencies 3. Ministries 4. Economic Planning Unit (EPU) Responsible agency for monitoring at Federal Level is the EPU

Thank You

Demonstrator Application Grant Scheme (DAGS) A seed fund for small, focused and sustainable pilot ICT-based community projects that have the potential for replication, up-scaling and commercialization. Include a project that: demonstrate the utilization of ICT relate how ICT can benefit the community’s life. Requires clear explanation on the activities for community development such as awareness programs, seminar or training on order to improve the community’s knowledge and skills.  Project implementation – 12 months Deliverable include outline the plan to sustain and upscale the project after the end of DAGS ROLL OUT funding.