Mr. Thein OoPresident, Myanmar Computer Federation

Chairman, Myanmar Info-Tech

Cooperation Opportunities in ICT Between

Japan and Myanmar

Contents

Introduction of MyanmarCooperation with CICC ICT Status and Trend in MyanmarCooperation opportunitiesWhy cooperation is necessary?What & how to cooperate?Conclusion

GeographyGeography

Point of Strategic Importance : Located in the northwest of the Indochina Peninsular in Southeast Asia, Myanmar is bordered by China, India, and ASEAN countries.

Introduction to MyanmarIntroduction to Myanmar

Area (sq km) : 676, 552 km2Capital City : NaypyidawPopulation : 52 million Languages : Myanmar Climate : tropical monsoonMonetary unit : Kyat Internet domain : .mm

Cooperation with CICC

Areas of cooperation with CICC

• ICT Policies Formulation• ICT Awareness building ( IT Caravan)• Human Resource Development• Open Source Software Development• ICT Industry Development• Localization

Cooperation with CICC

ICT Policies FormulationMCF members are invited to AFIT ( 6 Times ) where we have the opportunity to share ICT policies in various countries.This is a tremendous help for us in preparation of ICT master plans.

CICC support to conduct Research projects:(1) 2003FY ICT Country Report(2) 2006FY Research of IT Human Resource in Myanmar

Data collected from these are very useful for policy formulation

ICT Awareness buildingIT Caravan• The First IT Caravan covering 3 townships in Mandalay Division and

2 townships in Bago Division.5 seminars and exhibition from 28 January 2003 to 2 February 2003.

• The Second IT Caravan. covering 6 townships in Ayeyarwaddy Division.8 seminars and exhibition from 21 October 2003 to 27 October 2003.

• The Third IT Caravan covering 2 townships in Mon State and 1 township in Kayin State.4 seminars and exhibition from 28 January 2007 to 31 January 2007.

Cooperation with CICC

ICT Human Resource Development

Invitational Training ( Scholarships ) : 75 ICT engineersOn Site Training : >150 ICT engineers• Business Process Analysis Course in 2001 • Basic Multimedia System Development Course in 2002• Basic Multimedia System Development Course in 2003• Basic Multimedia System Development Course in 2003 • Web Master Training Course in 2003• Network Security Management Training Course in 2005 • IT Project Manager Training Course in 2005FY• Japanese Course for IT Project Manager in 2005• Web Master Training Course in 2006FYSeminars• Joint Seminar on IT HRD & Information Security 2005 Feb

Cooperation with CICC

Cooperation with CICC

Open source software development

MCF representatives attended AOSS Symposium ( 8 times ) sponsored by CICC.

Trainees from MCF are invited to training courses on OSS.

Cooperation with CICC

ICT Industry Development

Bilateral Conference in Myanmar in 1998Members of MCF ( ICT Companies in

Myanmar) and members if CICC ( ICT companies in Japan) have the first chance to meet and do business matching.

Localization

• CICC support Myanmar experts to attend ISO meeting.

• Localization (L10N) Workshops in Myanmar

Cooperation with CICC

Current ICT Status and Trend in Myanmar

National backbone : Fiber link between major citiesCross border Fiber : India-MyanmarLink : China-Myanmar

: Thai-MyanmarInternational Link : Sea-Me-We(3) Cable

: Satellite (Thai com 4)Last Mile Link : PSTN, Dedicated Link

: ADSL: Wireless Broad Band Access: MPT Satellite Terminal (iPstar)

Telephone subscribers : 0.81 ( 2003)Mobile subscription : 0.12Internet Access : 0.05

Current Status (Infrastructure)

ICT Infrastructure Plan

Short-term vision

•To install 100,000 lines from 2005 to 2007 and achieve 3.2% teledensity by 2010.

•Deploy mobile base stations and switching systems in major cities achieving 3.5% of mobile subscription rate.

•Install village phones in rural areas.

Long-term vision

•To achieve 30% of teledensity so that each household has access to telephone lines.

•To achieve 25% of the mobile subscription rate.

•To make village phones and the Internet available at the government office in every village by 2025.

Computer Science Development Law in 1986

Electronic Transaction Law in 2004

Wide Area Network Order (2002)

Telecommunication Law (being drafted)

Intellectual Property Right (being drafted)

VisionTo provide appropriate legal supports for ICT industry development, ICT infrastructure building, e-Government, e-Commerce and informatization.

Legal Framework

Current Status

ICT Human Resource Development

Current Status

MOST No. of Computer Universities/College : 26Total No. of ICT professionals/year : 6000 ( Under/Postgrad: Diploma, Bachelor, Master, Doctorate)

MOE Total No. of ICT professionals/year : 1500(Undergrad/Postgrad: Diploma, Bachelor, Master)

MCF Total No. of ICT professionals/year : 700( JITEE, MCPA Certification)

Private Total No. of ICT Professionals/year : 850

VisionTo become one of the ICT outsourcing service centers in the world on the basis of proper ICT HRD

ICT Education : Present Status

• Multimedia Classrooms : 1593• e-Education Learning Centers : 624

• Ministry of Education network (Intranet: Link all institutions)• Smart School Project • Developing Education portal (Web based education system)

Vision and Objectives ofe-Education

ICT Industry

Current Status

#ICT Companies in Myanmar : 267

#ICT Companies in Yangon : 260

#Software Development Companies : 29

#ICT Training Schools : 54

#Computer Hardware Sales Companies : 105

#ICT companies doing Outsourcing : <10

#PC distributed monthly : 20000

Two ICT Parks already established. Building YADANABON Cyber city is in progress. Will be a self contained city covering 10000-30000 acres.

Vision

To become a good outsourcing destination and software exporting country.

Social-Economic Development of Myanmar

Toll Free SystemLogistic

Management System

ComputerizedTax

CollectionSystem

AgriculturalDatabase

e-GovernmentPortal

NationalRegistration

e-Billing and PaymentSystem

FormLodgment

System

e-Government ProjectsCurrent Status

e-ProcurementSystem

DataCenterGASRDISPAC

Under developmentBeing Implemented

IDIS CA

e-Government Plan

Informatization

Building the bases

For informatization

Phase I(~2010)

Phase II(~2020)

Phase III(~2030)

Phase I(~2010)

Phase II(~2015)

Phase III(~2020)

Spreading Informatization

Achieving Informatizationas the e-enabler

Build all the bases for informatization and at least 10%

of firms should informatized

Build all the bases for informatization and at least 10% of firms should informatized

Strengthen the through

enterprise/industrial informatizationenterprise/industrial informatization

Strengthen the corporate competitiveness through

Actualize ebetween and across busine sse s

Actualize e-Transformation for connecting value chain

Vision

between and across businesses

Current Status

At the early stage.Functional systems.Most have static Web page.A few interactive systems.

Not at SCM, ERM, CRM, ERPNot integrated.Only in major cities.

E-Commerce

Promotion ( Web sites )Order acceptanceNo online payment

Why cooperation is necessary ?

•Weak Infrastructure•ICT HRD •SME Awareness•Cyber Law•Technological know-how•Job Creation•Entering international Market•Financial resources

MyanmarProblems & Weakness

JapanProblems & Weakness

• Demography• Shortage of ICT • High cost• Legacy Systems• New Applications• Language • Politics• Culture

• Technical Transfer• Financial Assistant• Consultation• Outsourcing• Investment

• Outsource Human Resource• New Market

• Cost Saving•Extension of Working Hours •Overcome Manpower shortage•Investment Opportunities•New Market

•Technology Transfer•Know-How and Experiences•Job Creation• High Income •Growth in ICT industry•Increase Competitiveness of Myanmar

Advantages Advantages

Cooperation opportunities in Infrastructure & AccessWhat and How?

Promote Japanese Solutions- Do –

Work with Myanmar Info-Tech

Business Model: Invest and share the regular income

National backboneInternational AccessLast mile linkSpecial Networks( IDIS, RDIS, HealthNet, EduNet)

Access ( PAC )

How?What?

•New Telecommunication Law will allows private operators.•Establishment of special networks is already allowed.•Myanmar Info-Tech, a public ICT company, working as a hub between Public and Private sectors.•China, Korea are very active in this area.

Legal FrameworkWhat & How?

• Some concrete efforts• A lot more still need to be done.• Myanmar is still new to cyber law. • ICT Legal framework becomes very important for socio-economics relationship

Japan can provide materials and consultation services.

Speed Up development of Legal framework

How ?What ?

e-Government:What & How?

• First phase of e-Govt. already implemented with us$12 Korea loan.• E-Government Network already established.• Government data center already established.• Development of e-Government projects is a national priority.• Myanmar Info-Tech is the key organization for implementation of e-

Government project.

Can work with any ICT Co. including Info-Tech

Put up proposals

Joint introduction of systems

How ?What ?

e-Commerce: What & How?

• Payment system is the biggest problem

Work thru Myanmar Info-Tech.

Web hostingLinking Japanese website to Myanmar PortalJapanese version Myanmar website link to Japanese portal

How ?What ?

Outsourcing Software Development Projects

• Cost saving will be considerable ( salary and overhead )• Language is a big problem• Migration of legacy systems • No problem with technology• QA will be key success factor

Bridge Engineers position in Japan and/or Myanmar. Improve VISA procedure.Develop good development Process.Develop specification standards.Develop QA standards.Strength HRD.

Start pilot projects or small projects now not later.

How ?What ?

Outsourcing Personnel

• Cost saving will be considerable ( salary and overhead )• Language is a big problem

MOU with a Myanmar co.Define Knowledge and skill set.Invest in HRD.Improve VISA procedure.

Recruit and trainHow ?What ?

Note: It may solve manpower shortage problem. But will not be cost advantage. It may create immigration problem.

Establishing Business in Special Zone

• Yadanabon Cyber city is under construction.• Very good climate• Equip with all necessary facilities; housing, sport, hospital, shopping, banking• Consist of two sub zones; Software & services and hardware &

telecommunication equipment• Will open in 2008• Can establish joint venture co. or 100% foreign own• Initial 8 years tax break and can apply for another 7 years.• Myanmar Info-Tech in Yangon may have special zone status at that time.

Q & A