Digital Malaysia Prospectus
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  • 1. Digital Malaysia Crowdsourcing Service Providers (CSPs) Partner Prospectus
  • 2. Table of Contents Introduction & Context.................................................................................................3 Background Crowdsourcing as Engine of Sustainable Economic Growth...............................................4 Malaysia, a Forward-Looking Nation..........................................................................4 Digital Malaysia, an Overview..................................................................................5 Digital Malaysia and Microsourcing............................................................................5 A Unique Opportunity...................................................................................................6 What We Need From You...............................................................................................8 About MDeC & Massolution Contacts...........................................................................................................10 Appendix A Appendix B
  • 3. Introduction and Context This document provides background information on the Malaysian government’s strategy to develop the nation as an international hub for digital work. This will be achieved through public/private sector collaboration that will target three strategic dimensions: 1. Establishing partnerships with international platforms and upgrading the capabilities of local Crowdsourcing Service Providers (CSPs) 2. Developing an online talent pool, trained and onboarded through the support of government sponsored custom training programs 3. Driving domestic and international demand from both the private and public sectors. Malaysia’s goal by 2020 is to create additional income of MYR 7,000 (~US$2,150) per annum for 350,000 citizens that perform digital work, thereby producing in the region of $750m per annum total digital income for the nation. We are seeking CSPs that can contribute strategically to this program and we are approaching you to determine whether formal participation in this program is of interest to you. This initiative should appeal to you if: 1. You would like to gain access to a significant labor force that has been trained and onboarded with your participation (e.g. training would include specific training on your platform and tasks). 2. You would like to serve the crowdsourcing needs of local Malaysian companies. 3. You recognize the opportunity to develop your business strategy for Asia from an anchor position in the Malaysian market, and potential partnerships with local CSPs. In addition to increasing Malaysia’s capability to win and deliver work, we are particularly interested in identifying CSPs that can direct existing or future demand to the Malaysian workforce. Digital Malaysia Crowdsourcing Service Providers (CSPs) Partner Prospectus Page 3
  • 4. Background Crowdsourcing as Engine of Sustainable Economic Growth Advances in communications technology have allowed individuals to work remotely and at their preferred time. With everything, from banking to multimedia moving online, it’s not surprising that labor marketplaces have also gone digital. While some tasks have been automated by software and complex algorithms, many jobs still require a human element to ensure that the levels of quality demanded by leading enterprises are reached. Crowdsourcing has become a topic of much discussion over the past several years, not only for its unique ability to combine the technical precision of machines with the nuanced workings of a human employee, but also for its potential as a source of employment for both those with specialized, sophisticated skills, and those with fewer qualifications. Crowdsourcing has emerged at a time when the decades-old paradigm of international aid is shifting from a giving model, which leads to short-term gains, to one that prioritizes long-term economic growth by finding jobs for those who are under- or unemployed. Malaysia, a Forward-Looking Nation Malaysia sees crowdsourcing as part of the nation’s job creation strategy. Recognizing the need to develop the nation’s strategy in the context of the global crowdsourcing landscape, Malaysia has engaged the services of Massolution, the specialist international crowdsourcing and crowdfunding research and advisory firm, to help develop a digital jobs ecosystem. The goal is to create a marketplace that will flourish and that will underpin the development of Malaysia as a leading country for digital work. Malaysia is a rapidly growing nation situated in the heart of Asia, surrounded by Singapore, the Philippines, Indonesia, and Thailand. It has a young population of 30 million (the median age is 27), which is relatively well-educated. Like many of its neighbors, Malaysia’s economy has experienced strong growth since the turn of the century, expanding by an annual average of 4.9 percent from 2000 to 2012. Part of the growth can be attributed to government policy of evolving the nation from an exporter of raw goods to a much more diversified economy. As part of this effort, Malaysia has vastly improved its infra- structure. This has resulted in a leap from 15 percent internet penetration in 2007 to over 67 percent in late 2013, well above the world average of 34 percent. In 2011, the Malaysian government outlined a series of new reforms meant to further promote diversification of the economy, with an eye to propelling Malaysia to high income status by 2020; Digital Malaysia Crowdsourcing Service Providers (CSPs) Partner Prospectus Page 4
  • 5. collectively, these reforms are known as the ‘Digital Malaysia Initiative’. This growth agenda focuses on the inclusion of targeted Malaysian citizens in a sustainable labor marketplace. A major element of the program focuses on promoting employment and job training by connecting Malaysian workers with em- ployment both at home and abroad. Digital Malaysia, an Overview The Multimedia Development Corporation (MDeC) is a government-owned and -funded agency that oversees programs that are focused on the country’s Information and Communications Technology (ICT) goals. MDeC is thereby the lead agency for Digital Malaysia and the National Digital Economy Initiative. MDeC is shaping a far-reaching and expansive growth program centered on promoting Malaysia’s human capital (see: http://www.digitalmalaysia.my). The Digital Malaysia initiative hopes to build on the country’s advances in communication technology infrastructure to increase its gross national income, enhance productivity, and improve standards of living. This is not the first such program Malaysia has undertaken: in 1996, the country launched the initiative to develop the ‘Multimedia Super Corridor’ (now MSC Malaysia) , which was one of the leading reasons, in the years following, for the nation’s strong economic diversification and growth. With those goals now reached, the government seeks to further advance its economy and improve the lives of its citizens. For the program to be successful, the Malaysian government wants to complete three interrelated ‘thrusts.’ The first is to shift the economy from a supply to a demand-focused one. An “if we build it they will come mentality” will not ensure Malaysia’s competitiveness nor will it stimulate the demand side of the market. The focus will be on intentional and specific programs that drive domestic and international demand. The second thrust is moving Malaysian businesses from low to high knowledge-add. Part of this means nurturing the country’s SMEs. Malaysia’s small and medium businesses contribute 32 percent of the country’s GDP, a relatively low number that the government wants to see trend upwards. Through the Digital Malaysia Initiative, the government hopes to increase the SMEs’ productivity and drive the “creation of high-value products and services.” The third thrust is the move from consumption to production - to “nurture a generation of IT-savvy youths”, who see the Internet not just as the information highway but as a tool to harness and deploy talent, and generate income. There are a number of ways in which the government wants to make this happen (for example, developing an on-demand, customized education portal). Digital Malaysia and Microsourcing One of the initiatives most closely related to the third thrust is the Development of Malaysia’s Microsourcing Industry program. Malaysia’s current digital workforce is approximately 100,000, many of whom (approximately 70%), are between the ages of 17-30, are well educated, and very proficient in English. This initiative aims to strengthen that digital workforce by onboarding, training and deploying 350,000 additional digital workers from the group that reside in the bottom 40 (B40) percent of household income, who number roughly 11.7 million. The intent is to provide additional income for the B40 component by connecting this population to Digital Malaysia Crowdsourcing Service Providers (CSPs) Partner Prospectus Page 5
  • 6. demand for microtask work via domestic and internationally based CSPs. As an estimated 9.4 percent of the B40 do not have steady access to the internet, the plan is to connect these individuals via a national network of 2,500 ‘telecenters’ (broadband-connected, work-location units) that have been constructed across the country. In order to provide suitable tasks for the B40 workers as well as for those more experienced, demand will need to be generated across a range of tasks, from simple to complex. In particular, the B40 workers will need to begin with relatively simple tasks that will help to train the population, such as content and photo moderation; data categorization, verification, and entry; survey production; location services; and the like. As the workers begin to learn the processes and skills needed to complete the tasks, they can advance on to more complex jobs. Digital Malaysia Crowdsourcing Service Providers (CSPs) Partner Prospectus Page 6
  • 7. A Unique Opportunity The opportunity to participate in the government’s strategy to build a crowdsourcing industry in Malaysia is a first of its kind and unique for several key reasons: ● The state’s willingness to promote the development of crowdsourcing and help drive demand ● Access to a substantial talent base of ~500,000 individually identifiable workers that have been specially trained via government-funded programs ● Opportunity to build off an anchor strategy in Malaysia, located in the heart of Asia ● Ability to help create sustainable jobs for workers from marginalized communities Total investment for the Development of Malaysia’s Microsourcing Industry Program is MYR 413 million (~US $126 million). In its latest Ease of Doing Business rankings, the World Bank ranked Malaysia as the 6th nation overall, above Korea, the UK, and Australia, underscoring Malaysia’s willingness to develop a free market economy and support foreign company investment. Digital Malaysia Crowdsourcing Service Providers (CSPs) Partner Prospectus Page 7
  • 8. What We Need From You We have identified your company as a potential partner for the Digital Malaysia, Development of a Microsourcing Industry program. At this stage we simply want to hear from you regarding your interest in the program and, if you are interested, what you feel you can bring to the table. We invite you to respond to the following questions which will help MDeC identify the right partner(s) (see Appendix B). ● Indicate Yearly Revenue and Growth Rate ● Indicate ability to on-board and retain large groups of workers, and generate and distribute work to them. ● Indicate number and variety of large enterprise or public sector contracts. ● Indicate your experience partnering or establishing joint ventures with governments, NGOs, enterprises, etc. ● Is there existing demand, either actual or potential, that can be resourced via Malaysia? ● Is work on your platform primarily performed in English? ● Do you have an impact sourcing/social mission? ● Does the breadth of use cases supported/delivered match our recommended use case set? (see Appendix A) Digital Malaysia Crowdsourcing Service Providers (CSPs) Partner Prospectus Page 8
  • 9. Please first communicate your intention to submit a response within 24 hours of receipt, naming your primary contact person. Additionally, once we’ve received your notice of intent to submit, by separate cover we will send you a response template (Appendix B) which you should submit by 20 May 2014. Please feel free to provide any additional information you feel is relevant. Our plan is to short-list the CSPs that seem best qualified and to invite those selected for exploratory discussions. References: ● Crowdsourcing as part of State Policy (http://www.crowdsourcing.org/editorial/crowdsourcing-as-part-of-state-policy/26631) ● Multimedia Development Corporation (http://www.mdec.my/index.php) ● Digital Malaysia (http://www.digitalmalaysia.my/) ● DM Fact Sheet (http://www.digitalmalaysia.my/about-digital-transformation-programme/dtp-dimensions/) ● DM Programs (http://www.digitalmalaysia.my/about-digital-transformation-programme/dtp-dimensions/) ● World Bank: Malaysia (http://www.worldbank.org/en/country/malaysia/overview) ● Overview of DM Program (http://www.crowdsourcing.org/editorial/crowdsourcing-as-part-of-state-policy/26631) Digital Malaysia Crowdsourcing Service Providers (CSPs) Partner Prospectus Page 9
  • 10. Digital Malaysia Crowdsourcing Service Providers (CSPs) Partner Prospectus Page 10 About MDeC The Multimedia Development Corporation (MDeC) was incorporated in 1996 to strategically advise the Malaysian Government on legislation, policies and standards for ICT and multimedia operations as well as to oversee the development of the Multimedia Super Corridor (now MSC Malaysia). MSC Malaysia became the platform to nurture the growth of Malaysian Small and Medium Enterprises (SMEs) in the IT industry whilst attracting participation from global ICT companies to invest and develop cutting-edge digital and creative solutions in Malaysia. In 2011, 15 years after the introduction and successful implementation of MSC Malaysia, MDeC’s mandate was broadened by the Prime Minister to include driving Malaysia’s transition towards a developed digital economy by 2020 through Digital Malaysia. Following this, in 2012, Digital Malaysia was official unveiled as the national transformation programme to achieve this aim. Founded on three strategic thrusts, Digital Malaysia is a natural progression to harness the building blocks already laid by MSC Malaysia. It will drive wealth creation, stimulate efficiency and enhance quality-of-life by harnessing and building upon Malaysia’s varied ICT initiatives, resulting in a nation that connects and empowers government, businesses and citizens through a vibrant and demand-focused digital ecosystem. About Massolution Massolution (massolution.com) is a unique research and advisory firm that is pioneering the design and implementation of crowd-based solutions for government institutions and private sector enterprises that drive organizational efficiency, improved business performance, product and service innovation, and enhanced levels of customer engagement. Massolution provides consulting services to businesses on the adoption of crowdsourcing and crowdfunding and supports the design and delivery of new work processes through crowdsourced labor solutions. It also advises the public sector on the design and implementation of national crowdsourcing and crowdfunding strategies that aim to drive social and economic impact. Massolution also operates a leading industry website, www.crowdsourcing.org. Contacts: Darzy Norhalim, Director Digital Malaysia B40 Cluster & Initiative (C: +60-19.233.3960 or nordarzy@mdec.com.my) Redzuan Abdul Rahim, Project Head, DM Crowdsourcing / Microsourcing (C:+60-19.352.2275 or redzuan@mdec.com.my) Carl Esposti, CEO Massolution (C: +1-310.948.1258 or carl@crowdsourcing.org)
  • 11. Digital Malaysia Crowdsourcing Service Providers (CSPs) Partner Prospectus Appendix A Figure 1 - Recommended B40 and General Worker Use Cases No 1 7 9 10 11 12 13 14 8 2 4 3 5 6 Use Case Type Content Management Data Management Data Management Data Management Survey Production Survey Production OCR Validation Location Services Data Management Content Management Categorization Categorization Categorization Categorization Use Case Description Monitor check social media platforms, customer product reviews, etc. to identify or filter out inappropriate, offensive, or illegal content (e.g., SPAM). Enter data from various sources (e.g., scanned images, audio files, unstructured text) into systems and databases. Edit a large number of records to ensure data con- sistency or a uniform format (e.g., phone number format). Remove repetitive records from a database (e.g., duplicate products). Use a broad range of participants to source opinions, collect data, or conduct measurements. Assemble input from many people (e.g., customers) to inform business decision-making Validate the output of OCR systems for hard- to-process materials (e.g., handwriting, charts, diagrams). Deploy local resources to gather or verify specific information (e.g., find local products, scout out local points of interest). Validate and refresh existing data to verify num- bers, sources, or other reference data (e.g., business, organization, or consumer listings) using online sources. Check photographic content for compliance with specific rules. Apply metadata / tags to data records (e.g., articles) to create searchable records for data min- ing, cataloging, or knowledge management. Tag images (e.g., digital receipts, invoices) for subsequent processing and cataloging. Tag audio or video files for archiving purposes. Clean up existing metadata (e.g., remove duplicates). Use Case Title Content moderation Data entry Data normalization (or standardization). Data deduplication Consumer surveys Consumer surveys OCR Validation Location-based information Data verification Photo moderation Data categorization Image categorization Audio and video categorization Metadata Appendix A
  • 12. Digital Malaysia Crowdsourcing Service Providers (CSPs) Partner Prospectus Appendix A Further, the 3 use cases identified below will provide opportunities for more experienced workers. Figure 2 - Recommended Experienced Worker Use Cases No 1 2 3 Use Case Type Data Management Transcription Software Services Use Case Description Extract data from various databases and other sources to gather, aggregate, or append information. Transcribe audio data and video content following predefined rules for content access. Test software code, based on predetermined test cases, with the help of a distributed base of testers (e.g. functional, localization / globalization, compatibility / configuration, load / performance and security / vulnerability). Use Case Title Data mining Audio and video transcription Application testing (Crowdtesting)
  • 13. Digital Malaysia Crowdsourcing Service Providers (CSPs) Partner Prospectus Appendix B Year Client Name 2011 2012 2013 Revenue Contract Type/ Scale YoY Revenue Growth Rate (%) Comments % % % Appendix B Digital Malaysia CSP Response Template ***Provided as reference. Once interest is expressed an editable template will provided.*** Please comment on the following questions: 1. Indicate Yearly Revenue and Growth Rate [If you feel at this stage you can’t share actual revenue numbers, please provide other information i.e. examples of a few large contract wins, worker growth, or growth in jobs/task posted, to indicate your relative size and how quickly you’re growing] 2. Indicate ability to on-board and retain large groups of workers, and generate and distribute work to them. [Give examples of numbers of workers on-boarded, whether you have experience just with “expert” workers or if you have also worked with B40 type workers, the method of on-boarding, training and retaining workers - please include any links to pertinent website information.] 3. Indicate number and variety of large enterprise or public sector contracts. [Please expand table as necessary] 4. Indicate your experience partnering or establishing joint ventures with governments, NGOs, enterprises, etc. a. Can you provide any examples of how you have partnered with other companies/CSP’s to expand your international footprint? b. Have you licenced your technology to partners/clients? [Please reference any press announcements]
  • 14. Digital Malaysia Crowdsourcing Service Providers (CSPs) Partner Prospectus Appendix B 5. Is there existing demand, either actual or potential, that can be resourced via Malaysia? [Mention immediate and potential need for workers based on foreseeable growth] 6. Is work on your platform primarily performed in English? [What other languages have your workers performed work in?] 7. Do you have an impact sourcing/social mission? [Please elaborate] 8. Does the breadth of use cases supported/delivered match our recommended use case set? (see Appendix A) [Which use cases are core focus areas for you?]
  • 15. www.digitalmalaysia.my/b40 Massolution Inc.