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Recent Developments of ICT based Economy in Malaysia

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Recent Developments of ICT based Economy in Malaysia Powered By Docstoc
					Recent Development of
 ICT based Economy in
             Malaysia

         Ahmad Zainal Abidin, Fazly Salleh Abas
                    Multimedia University
                   Jalan Ayer Keroh Lama
                        75450 Melaka
                        MALAYSIA
Contents
   History of ICT in Malaysia
   Towards ICT based Economy
   Knowledge Economy
   Investment for the Future: The Multimedia Super Corridor
   ICT Landmarks: “CyberCities”
   Improvising Knowledge Through Education
   ICT for Commerce and Banking
   Strengthening the Economy through Smart Governance
   Telecommunications and the Internet
   Impact of ICT on the Economy
   Conclusions and Future Prospects
History of ICT in Malaysia
 Computers are in use in Malaysia since 1970s
 1975 - Universiti Teknologi Malaysia became first
  University to develop a computer centre
 Datel service introduced by Telekom Malaysia 1983

       May 1977 – Malaysian Administrative
      Modernisation and Management Planning
                   Unit (MAMPU)


         January 1985 - Malaysian Institute of
          Microelectronic Systems (MIMOS)
History of ICT in Malaysia (2)
  August 1986 – Association of Computer and Multimedia
                   Industry (PIKOM)


       January 1996 – National IT Council (NITC)


     December 1996 – National IT Agenda (NITA)


        1996 – Multimedia Super Corridor (MSC)


   1996 - Multimedia Development Corporation (MDC)
 Towards ICT based Economy
  7th Malaysian Plan (1996-2000) saw rapid growth in ICT
   utilization rates.
  8th Malaysian Plan – plans to spend RM5.2 billion on ICT-related
   projects

                            RM300 million for
 RM1.1 billion for      research and development
“Bridging the Digital                                       Misc.
  Divide” project




   RM1.6 billion for                            RM1.8 billion for flagship
   computerization                                   applications
     programs
Knowledge Economy (K-Economy)
                            Present

 Past                      Malaysia                              Future

                                                      K-Economy –
                                                      emphasizes on
Agricultural economy –    Industrial economy –        acquiring, generating,
wealth measured by land   wealth measure by           utilising and diffusing
and product               industrial product          knowledge in all
                                                      activities to create
                                                      wealth

 All sectors of the economy become knowledge-based when
  strategies are done via application of knowledge
 e.g. business/financial, manufacturing, education, health services,
  scientific research and telecommunication sectors
Multimedia Super Corridor (MSC)

 Most notable breakthrough
  in leaping forward into the
  ICT industry
 Malaysia committed
  RM48billion
 Currently, 1118 companies
  with MSC-status (95.6%
  technology companies,
  3.3% institute of higher
  learning, 0.01% incubators)
Multimedia Super Corridor (2)


                 Multi-purpose Card
    Electronic                        Smart School
   Government

                 7 Flagships of
                     MSC
                                      Telemedicine
Technopreneur
 Development

                                          R&D
   E-Business                             Cluster
 ICT Landmarks: “Cybercities”


Cyberjaya
                                        KLCC

Technology
   Park
                                         KL
                                        Tower


    UPM/MTDC         KL International
                         Airport
Improvising Knowledge Through ICT
Based Education
 As a source for K-Workers
 Malaysia‟s National Philosophy of Education calls for
  “Developing the potential of individuals who are intellectually,
  spiritually, emotionally and physically balanced and harmonious”
 Main policies of ICT in education as formulated by Ministry of
  Education


     1) ICT for all students, used as enabler to reduce the digital
        gap
     2) Role of ICT as a teaching and learning tool, as part of a
        subject as well as a subject
     3) The use of ICT to increase productivity, efficiency and
        effectiveness of the management systems
The Smart School Project
 - Jumpstart deployment of technology to
 schools
 - Change the culture and practice of
 Malaysia’s primary and secondary
 schools


                              Educational Portals


   - Developed to extend the use of ICT in education
   - Serves students with alternatives in acquiring knowledge
   through interactive multimedia
Electronic Learning (E-Learning)
 • Internet-based learning allows flexibility to meet education
   goals at the student’s convenience
 • Universiti Tun Abdul Razak (UNITAR) – first E-Learning
   university in Malaysia
 • Universiti Terbuka Malaysia (OUM)
 • Multimedia University
   ICT for Commerce and Banking
 E-Commerce – trades, purchases, procurements and marketing of
  goods and services via electronic devices or telecommunication tools
 Business to Business (B2B), Business to Customer (B2C), Customer to
  Customer (C2C)
                         Year    Revenue (USD Million)
                        1997             6.31
                        1998            18.01
                        1999            58.89
                        2000*           164.15
                        2001*           426.72
                        2002*           993.68
                        2003*          2006.40
                        2004*          3469.85           * projections

                 Source: Malaysian Business, April 2000
             • ICT in Banking
Electronic Banking

   Automated Teller Machine
   Introduced in 1981; balance enquiry, deposits, transfer of funds, etc.

   Phone Banking
    Introduced in early 1990s; transactions through an automated
    bank system utilizing Automated Voice Response (AVR)

   PC-Banking

    Virtually establishes bank branches at the customer‟s premises
    via an Intranet proprietary desktop electronic package
Electronic Banking
                         • ICT in Banking(2)
  Internet Banking
    Introduced in 2000;
    Malayan Banking Berhad (Maybank) was the first to venture into
    Internet Banking – www.maybank2u.com.my



   Mobile Banking                             Cheque book
                                                request
        Services through SMS, e.g.

                                                     Bill payment

             Own account
                                     Alerts     Balance enquiries
               transfer
Strengthening the Economy Through
Smart Governance
            Electronic                  E-Service
             Labour
            Exchange
                                                    E-Procurement
                         E-Government
E-Syariah                    Pilot
                          Applications
                                                      Human
   Project                                           Resource
  Monitoring                Generic                 Management
   System                   Office                    System
                          Environment
Telecommunications and the Internet

  Malaysia became official member of Asia-Pacific
  Telecommunication (APT) on the 1st of July 1979

              Five main telephony companies
                        in Malaysia
Penetration rates of fixed lines and cellular (%)




              Source: Ministry of Energy, Telecommunication and Multimedia
                               TOP 20 COUNTRIES WITH HIGHEST
                                 NUMBER OF INTERNET USERS
                                Internet Users,      Population        Internet       Source and Date          % World
#          Country or Region
                                  Latest Data       ( 2004 Est. )     Penetration      of Latest Data           Users
    1   United States                 202,452,190       293,271,500          69.0 %      Nielsen//NR July/04      25.3 %
    2   China                          87,000,000     1,288,307,100           6.8 %         CNNIC June/04         10.9 %
    3   Japan                          66,548,060       127,853,600          52.1 %      Nielsen//NR July/04       8.3 %
    4   Germany                        47,182,668        82,633,200          57.1 %      Nielsen//NR July/04       5.9 %
    5   United Kingdom                 34,874,492        59,595,900          58.5 %      Nielsen//NR July/04       4.4 %
    6   Korea (South)                  30,670,000        49,131,700          62.4 %         KRNIC June/04          3.8 %
    7   Italy                          28,610,000        57,987,100          49.3 %      C.I.Almanac Dec/03        3.6 %
    8   France                         23,216,191        60,011,200          38.7 %      Nielsen//NR July/04       2.9 %
    9   Canada                         20,450,000        31,846,900          64.2 %      C.I.Almanac Dec/03        2.6 %
10      Brazil                         19,311,854       179,383,500          10.8 %      Nielsen//NR July/04       2.4 %
11      India                          18,481,000     1,088,056,200           1.7 %              ITU Dec/03        2.3 %
12      Spain                          14,332,763        41,895,600          34.2 %      Nielsen//NR July/04       1.8 %
13      Australia                      13,359,830        20,275,700          65.9 %      Nielsen//NR July/04       1.7 %
14      Taiwan                         11,602,523        22,689,300          51.1 %      Nielsen//NR July/01       1.5 %
15      Netherlands                    10,806,328        16,254,900          66.5 %      Nielsen//NR July/04       1.4 %
16      Mexico                         10,033,000       102,797,200           9.8 %              ITU Dec/02        1.3 %
17      Poland                          8,970,000        38,158,100          23.5 %              ITU Dec/03        1.1 %

18      Malaysia                    8,692,100        25,581,000            34.0 %           ITU Dec/03           1.1 %
19      Indonesia                       8,000,000       221,777,700           3.6 %              ITU Dec/02        1.0 %
20      Sweden                          6,722,562         9,010,700          74.6 %      Nielsen//NR July/04       0.8 %
                                                                        Source: www.internetworldstats.com
                            Internet-subscriber/user („000)
9000
                                                                                                                         8187
                                                                                                               8037
8000                                                                                             7842

                        Internet-subscriber ('000)
7000
                        Estimated Internet-user ('000)                             6345

6000

                                                                     4977
5000


4000


3000                                                                                      2614          2679          2729

                                                           2004             2115
2000                                                              1659
                                           1215
1000                             615                 668
                                        405
       14 42   64 192      205
   0
       1995    1996          1997        1998         1999          2000      2001          2002        2003 Q1       2003 Q2


                                          Source: Ministry of Energy, Telecommunication and Multimedia
Impact of ICT on the Economy
According to the MSC Impact Survey 2003

            Year               2002              May 2003
      # of employees          17,000              17,854


                                For both years, 88% are
                                      K-Workers


     Year              2001       2002         2003*          2004*
% of profitable        33%        53%           74%           91%
 companies

                                                   * prediction
   Impact of ICT on the Economy (2)
 Percentage Annual Change of Real GDP for Service Sector
      8                                 7.4

      7      6.4

      6
                          4.4
      5
  %   4
      3                                            Source: Quarterly Update,
      2                                            Malaysian Economy, Ministry of
      1                                            Finance, September 2004.
      0
            2002         2003        2004 Q2

                                    Increasing number of cellular phone,
                                    Internet and broadband subscribers as
Among the reasons for growth        well as expansions in finance, insurance,
                                    real estate and business services sub-
                                    sectors.
Conclusions and Future Prospects

Future of economic growth lies on the effective utilization of opportunities
based on ICT

The key is to shift from industrial-based to knowledge-based economy

Public and private sectors must work together to ensure
significant economic growth

Infrastructures such as Internet accessibilities and mobile networks
must also be improved in order to strive forward

R&D must be paid special attention as well as IT related education and
awareness
:: Thank you ::

				
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