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UNCTAD – ESCAP ASIA PACIFIC REGIONAL CONFERENCE UNCTAD – ESCAP ASIA PACIFIC REGIONAL CONFERENCE ON E-COMMERCE STRATEGIES FOR DEVELOPMENTON E-COMMERCE STRATEGIES FOR DEVELOPMENT
November 21, 2002Bangkok, Thailand
MALAYSIA: The New EconomyMALAYSIA: The New Economy
Technology Powering Technology Powering Economic TransformationsEconomic Transformations
BYBYRahayu Ezrani ABDUL RAHMANRahayu Ezrani ABDUL RAHMAN
E-Business Department, Multimedia Development CorporationE-Business Department, Multimedia Development Corporation
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MSC
Strategic Policy Strategic Policy Directions for the Directions for the ICT Sector ICT Sector DevelopmentDevelopment
The MSC Vision
AgendaAgenda
Challenges
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A knowledge and idea-based economy A knowledge and idea-based economy where the key to wealth and job where the key to wealth and job creation are the extent to which creation are the extent to which
information, ideas, innovations and information, ideas, innovations and technology are embedded in all the technology are embedded in all the
various sectors of the economyvarious sectors of the economy
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1999: Consultant engaged to study and propose future policy directions
Policy options proposed:– delayed transition towards full competition; or– rapid transition towards full competition.
Factors taken into account:– Global trends– Status of infrastructure– Regulatory readiness– Industry readiness
Strategic Policy DirectionsStrategic Policy Directions
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CURRENT STATUS OF MALAYSIANCURRENT STATUS OF MALAYSIANICT INDUSTRYICT INDUSTRY
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I II III IV
“Rudimentary”
“Average”
“Advanced”
Competition”“Monopoly”
“Early Competition”
“Managed Competition”
“Full
MALAYSIA
“RapidTransition”
Path
“DelayedTransition”
Path
POLICY FRAME WORK
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• Multimedia Super Corridor (MSC) initiatives
• Universal service provision- policy framework in place with funding from industry and Government
• Moves towards cost based tariff started with tariff re-balancing implemented on March 1, 2002 for fixed line services
• Opening up the last mile by issuing new licenses
POLICIES TO FACILITATE RAPID POLICIES TO FACILITATE RAPID TRANSITIONTRANSITION
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• Voice-Over-Internet Protocol legalized which serves as an efficient and cheaper voice service for international calls
• Control of mobile telephony charges lifted in August 2000 which led to exponential growth of mobile penetration
• Develop a National Spectrum Plan to maximize spectrum usage with 3G as the first block of spectrum assignment
POLICIES TO FACILITATE RAPID POLICIES TO FACILITATE RAPID TRANSITIONTRANSITION
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MSC
Strategic Policy Directions for the ICT Sector Development
The MSC The MSC VisionVision
AgendaAgenda
Challenges
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Multimedia Super CorridorMultimedia Super Corridor
• 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 2.5-10 Gb multimedia network
• A one-stop shop to facilitate investment - the MDC
The MSCThe MSC – A Quick Glance– A Quick Glance
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Create the ideal multimedia environment to attract world-class companies to use MSC as a hub
Catalyze a highly competitive cluster of Malaysian multimedia/IT
companies that become world-class over time
Leapfrog into success in
the Information
Age
Go Global
Lead Regional
Create value from Information Age
businesses
Leapfrogging Into The Information AgeLeapfrogging Into The Information Age
Enhance domestic
productivity
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Ten Bill of GuaranteesTen Bill of Guarantees
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o.1
No
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o.1
Flagship ApplicationsFlagship Applications
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.2N
o.2
No
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o.2
Incentives & Programs to Create Enablers, Incentives & Programs to Create Enablers, Meet OutcomesMeet Outcomes
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Bill of GuaranteesBill of Guarantees
4. Unrestricted employment of foreign knowledge workers
5. Freedom of ownership ~ Co. can be wholly owned by foreign legal entities, can register as a branch.
6. Freedom to source capital globally
7. World-class physical & IT infrastructure
8. Globally competitive tariffs
9. High-quality urban development
10. Excellent education facilities & human resource talent pool
1. Five-year exemption from Malaysian income tax renewable to 10 years, ~ relief from tax on statutory income.
2. 100-percent Investment Tax Allowance (ITA).~ those engaging in capital-intensive activities, or those multimedia activities that are treated as cost centers and not as revenue-generating businesses.
3. Duty-free importation of multimedia equipment.
FINANCIAL NON-FINANCIAL
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E-BusinessE-Business
TelehealthTelehealth
Smart SchoolsSmart Schools Multipurpose CardMultipurpose Card
R&D ClusterR&D Cluster
Electronic GovernmentElectronic Government
Worldwide Worldwide Manufacturing WebManufacturing Web
Borderless MarketingBorderless MarketingCenterCenter
Technopreneur Technopreneur DevelopmentDevelopment
MSC Flagship ApplicationsMSC Flagship Applications
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MSC
Strategic Policy Directions for the ICT Sector Development
The MSC Vision
AgendaAgenda
ChallengesChallenges
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We have seen and done things,are seeing and doing things,
but are also still learning…
Build Trust on the Web-Encryption technology development-Integrated logistics hub-Awareness & educationAttracting Inbound Consumers-Trading hubs-Internet Exchange-Global ConnectivityOrganization Transformation-Awareness and education program-Work Culture-Re-structuring of companies to exploit E-CommercePolicy and Regulatory Framework-IP Management System-Taxation-Consumer protection
Build Critical Mass-internet & access devices’ penetration-Network access & tariffs-Telecoms infrastructure