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UNCTAD – ESCAP ASIA PACIFIC REGIONAL CONFERENCE ON E-COMMERCE STRATEGIES FOR DEVELOPMENT November 21, 2002 Bangkok, Thai

UNCTAD – ESCAP ASIA PACIFIC REGIONAL CONFERENCE ON E-COMMERCE STRATEGIES FOR DEVELOPMENT November 21, 2002 Bangkok, Thailand. MALAYSIA: The New Economy Technology Powering Economic Transformations. BY Rahayu Ezrani ABDUL RAHMAN E-Business Department, Multimedia Development Corporation.

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UNCTAD – ESCAP ASIA PACIFIC REGIONAL CONFERENCE ON E-COMMERCE STRATEGIES FOR DEVELOPMENT November 21, 2002 Bangkok, Thai

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  1. UNCTAD – ESCAP ASIA PACIFIC REGIONAL CONFERENCE ON E-COMMERCE STRATEGIES FOR DEVELOPMENT November 21, 2002 Bangkok, Thailand MALAYSIA: The New Economy Technology Powering Economic Transformations BY Rahayu Ezrani ABDUL RAHMAN E-Business Department, Multimedia Development Corporation

  2. Agenda MSC The MSC Vision Challenges Strategic Policy Directions for the ICT Sector Development

  3. A knowledge and idea-based economy where the key to wealth and job creation are the extent to which information, ideas, innovations and technology are embedded in all the various sectors of the economy

  4. Strategic Policy Directions 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

  5. 4 “Advanced” 3 “Delayed Transition” Path “Rapid Transition” Path “Average” 2 MALAYSIA “Rudimentary” 1 I II III IV “Early Competition” “Managed Competition” “Full “Monopoly” Competition” CURRENT STATUS OF MALAYSIANICT INDUSTRY POLICY FRAME WORK

  6. POLICIES TO FACILITATE RAPID TRANSITION • 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

  7. POLICIES TO FACILITATE RAPID TRANSITION • 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

  8. Agenda MSC The MSC Vision Challenges Strategic Policy Directions for the ICT Sector Development

  9. The MSC– A Quick Glance • Multimedia 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

  10. Leapfrogging Into The Information Age Go Global Create the ideal multimedia environment to attract world-class companies to use MSC as a hub Leapfrog into success in the Information Age Enhance domestic productivity Create value from Information Age businesses Catalyze a highly competitive cluster of Malaysian multimedia/IT companies that become world-class over time Lead Regional

  11. Incentives & Programs to Create Enablers, Meet Outcomes Flagship Applications No.2 Ten Bill of Guarantees No.1

  12. FINANCIAL NON-FINANCIAL • Five-year exemption from Malaysian income tax renewable to 10 years, ~ relief from tax on statutory income. 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. 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. 6. Freedom to source capital globally 7. World-class physical & IT infrastructure 8. Globally competitive tariffs 9. High-quality urban development • Duty-free importation of multimedia equipment. 10. Excellent education facilities & human resource talent pool Bill of Guarantees

  13. MSC Flagship Applications Smart Schools Multipurpose Card Electronic Government Telehealth Technopreneur Development R&D Cluster E-Business Worldwide Manufacturing Web Borderless Marketing Center

  14. Agenda MSC The MSC Vision Challenges Strategic Policy Directions for the ICT Sector Development

  15. Build Critical Mass • internet & access devices’ penetration • Network access & tariffs • Telecoms infrastructure • Build Trust on the Web • Encryption technology development • Integrated logistics hub • Awareness & education • Attracting Inbound Consumers • Trading hubs • Internet Exchange • Global Connectivity • Organization Transformation • Awareness and education program • Work Culture • Re-structuring of companies to exploit E-Commerce • Policy and Regulatory Framework • IP Management System • Taxation • Consumer protection We have seen and done things,are seeing and doing things, but are also still learning…

  16. Thank you http://www.mdc.com.my

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