DIGITAL DIVIDE AND THE ROLE OF GOVERNMENT

Malaysian Country Paper

I. IntroductionII. Strategic Government

InterventionsIII. The National IT Agenda

(NITA), 1996IV. Government StrategiesV. Future Trusts

DIGITAL DIVIDE AND THE ROLE OF GOVERNMENT

I. Introduction

National IT Agenda (NITA) in 1996 -framework for transition into knowledge – based society Wider diffusion of ICT National digital divide & international digital divide

Wide spread diffusion of ICT

a) Incentives for computerization and automation;

b) Created venture capital funds;c) Enhanced education and

training programmes; and d) Provided a conducive

environment to facilitate the development of ICT

Main cyber law –Communications and Multimedia Act 1998

Objectives:-to promote deregulation-streamline licensing procedures-facilitate market liberalization

II. Strategic Government InterventionsMultimedia Super Corridor (MSC)

• Established in 1996• Comprehensive world-class

ICT-enabled environment• As a global test-bed with

enabling environment and incentives to develop as a hub & spawn local and foreign SMEs

contd...

• Creation of smart partnerships• Establishment of MultimediaDevelopment Corporation (MDC) asone-stop agency

MSC status - Bill of Guarantees :a) Freedom of ownershipb) unrestricted employment of

foreign knowledge workers; c) Freedom of sourcing capital

globally;d) fiscal incentives

• 429 companies with MSC status ( 38 global players and 274 Malaysian-owned companies

• Five cybercities:Technology Park MalaysiaCyberjayaUniversiti Putra Malaysia – Malaysian Technology Development Corporation (UPM-MTDC)Petronas Twin TowersKL Tower

• Electronic Government concept In Federal Territory of Putrajaya

• Expanding ICT infrastructure to rural areas:

• Mobile Internet Unit (MIU)Building Computer Laboratories in schools

• Emphasis on HRD & network infrastructure

III. National IT Agenda (NITA), 1996

Strategic Thrusts Agenda! Five strategic thrust areas:

• E-economy• E-public Services• E-community• E-learning • E-sovereignty

• Strategic Thrusts Implementation Committee (SITC)

30 projects implemented (E-community,Resource Exchange, National Grid Learning

• Rural Vision Movement in 1996- computer facilities to 995

villages- Village Internet Programme (March 2000)- E-Bario-Mobile Internet Unit (MIU)

• Demonstrator Applications Grant Scheme (DAGS), April 1998

-Promote use of ICT and multimedia through developing e-networks in communities-37 community-based projects (E-Thalassaemia, NutriWeb, Cybercare & Masjid as a neighbourhood centre)

IV. Government StrategiesExpansion and upgrading of communications infrastructure

Increased accessibility - fiber optics, satellite and cellular technologyPenetration rates lowFiber optic backbone – 360 km for MSC – Asynchronous Transfer Mode (ATM) Switches at Cyberjaya , Federal Territory Putrajaya and Bukit JalilQuality assurance- Performance guarantee (1999)Promote “One home, one PC” Campaign

Roll-out MSC Flagship Application

7 flagships:• E-government;• Smart schools – 8000 primary & secondary schools

• Multipurpose card;• Telehealth• R&D Cluster;• Worldwide manufacturing web• Borderless marketing

Promotion of e-commerce

Potential of Electronic-commerce-improve competitiveness-establish global presence-undertake customization-create novel businesses

National Electronic Commerce Committee established to promote & coordinate development

Local Content Development

On-line business through e-commerce-enabled websites

Covers various industries (e.g. Mall of Malaysia, Asia Travel Mart,Cyber Music Asia)

Second wave flagship applicationsto attract leading-edge technology developersPromote transfer of technology & R&Daddress issues to improve first wave flagship application pilot projects prior to roll-out

Human Resource Development in ICTIncrease in numbers of ICT workers

88,160 in1998 increased to108,200 in 2000 (10.7 per cent per annum)

Established Multimedia University of MalaysiaUpgrade ICT skills of working population- under Human Resource Development Fund-14.7 per cent / RM101.6 million disbursed to296,800 trainees in ICT-based courses

Nurture IT-based SMEsTo promote critical mass of ICT-based SMEs & R&D activities:

•ICT Fund set up in 2000•Malaysia Venture Capital Management Bhd. (MAVCAP) established in April 2001 to manage ICT Fund•MSC Venture Corporation set up to assist companies to obtain MSC-Status & gain access to venture capital

V. Future ThrustsPositioning Malaysia as a global ICT and Multimedia hubMSC formed the foundation for growth based on opportunities provided by ICTFuture focus

- strengthening HRD- developing hard and soft

infrastructure- building critical mass of

SMEs and internet users- reducing the digital divide