1. The Multimedia Super Corridor
A Model for Fostering Economic Growth and Development using IT
World Trade Organization
Information Technology Symposium
Geneva, July 16, 1999
Presentation by
Mohd. Salleh Masduki
Multimedia Development Corporation
Malaysia

2. TOPICS 1. NEW FORCES IN PLAY
2. CREATING THE IDEAL MULTIMEDIA ENVIRONMENT
3. RESPONSE FROM WORLD CLASS COMPANIES
4. CATALYZING LOCAL COMPANIES

3. Globalization and the Information Age
Driven by
Technology Change
Economic Liberalization
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
The natural barriers of time, space and form have disappeared
In a knowledge economy and borderless world
both opportunities and challenges abound

4. New Forces for Gaining Competitive Edge
Moore’s Law
Metcalfe’s Law
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
Coase’s Theory of Transaction Cost
Creation 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 Cost
US$
$1.07
$0.68
$0.27
$0.10

7. 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 Form
Disrupts
Customer relationships
Distribution networks
Competitor behaviour
Economies of size and scale
Killer
Applications

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 Global
Create the ideal multimedia environment to attract world-class 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
Lead Regional

10. MALAYSIA’S RESPONSE - THE MSC - NOT JUST ANOTHER TECHNOLOGY PARK
“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 Gb multimedia network
A one-stop shop to facilitate investment - the MDC
MSC boundary
KLCC
PETALING JAYA
KL Tower
Technology Park
CYBERJAYA
PUTRAJAYA
AIRPORT CITY
KLIA

11. THE MSC VISION: FROM HERE TO 2020
Leapfrog into leadership in the Information Age
Transform Malaysia into a knowledge society
Phase 3
Phase 2
Link the MSC to other cybercities in Malaysia and worldwide
Phase 1
Successfully create the Multimedia Super Corridor
1996
2020
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
250 world-class companies
Set global standards in flagship applications
Harmonized global framework of cyberlaws
4-5 intelligent cities linked to other global cybercities
All of Malaysia
500 world-class companies
Global test-bed for new multimedia applications
International CyberCourt of Justice in MSC
12 intelligent cities linked to global information highway

12. THE MSC BILL OF GUARANTEES
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

13. Soft Infrastructure Cyberlaws - Current Status
Enforced 1st Oct Controller of Certification Authority appointed
Digital Signature Act
Amendments to the Copyright Act 1987
Enforced 1st April1999
Computer Crimes Act
All passed by Parliament
Yet to be enforced
Telemedicine Act
Enforced 1st April Commission - appointed 1st Nov. 1998
Communications & Multimedia Act
Data
Protection Law
In the process of being drafted
Electronic
Government Law

14. THE FLAGSHIP APPLICATIONS WILL PROVIDE OPPORTUNITIES FOR WEB-BASED COLLABORATION
MSC
R&D cluster
Borderless marketing center
Chinese
Bahasa
English
Japanese
Telemedicine
Worldwide manufacturing web
World-first multipurpose card
Connection
Optical
Magnetic
Contact
Contactless 2
Electronic government
Smart schools

15. DESIGNATED CYBERCITIES – JULY 1999
UPM Incubation Center
KUALA LUMPUR
CITY CENTRE
TECHNOLOGY
PARK MALAYSIA
Cyberjaya
Putrajaya
KLIA
KUALA LUMPUR TOWER
CYBERJAYA (MSC HQ)

16. Attractive Living Environment in Cyberjaya: Completed and Planned Projects – July 1999
Cyberpark
Amenities
City Command Centre e E V
e-VILLAGE
Housing
60 apartment units available
818 residential units ready by 2000
Entertainment Village

17. Creating Ideal Multimedia Environment in Cyberjaya: Completed Projects – July 1999
Multimedia University
3,000 students admitted
NTT MSC Center
2nd largest NTT R&D
facility outside Japan
TM Cyberjaya Central
State-of the-art exchange enabling quality broad band services
Central Incubator
Capacity: 45,000 sf
Taken: 36,000 sf

18. MSC Status Companies - Participating Countries (as at July 1 ,1999)
Total Approved Applications: 228
Total Number of Applications: 288

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

20. $ Critical ingredients for creating Malaysian Technoprenuers
Incubation Centres
Venture Capital/ Financing
Market Access
Critical ingredients for creating Malaysian Technoprenuers
R&D Grant
HRD/Training
Incentives

21. TECHNOLOGY FOCUS OF 122 MALAYSIAN MSC-STATUS SMES
Software Development
E-Commerce 17
Telecommunications 10
Content Creation & Training
Production/Post Production Animation/Broadcasting
Internet Publishing
Systems Integration
Smart Card Solutions 5
Virtual Reality 3
Telemedicine 2
Chip Design
Authentication/ Encryption Technologies
Remote Storage & Retrieval 2
Remote Energy Management Systems
GIS
Borderless Marketing 1
DVD 1

23. .…Thank you….