MSC Malaysia
by Matthew L Barsing
Multimedia Development Corp (MDeC)
Malaysia

MDeC (Multimedia Development Corporation) is
the one-stop developmental agency mandated
with the implementation of MSC Malaysia
Financial Technical
Facilitation Assistance Assistance
(Immigration, Foreign KWs,
Business Advisory etc) (R&D grants, certification
(SADC, CADC, VRC)
subsidies and incentives)
Market Access Capability Human Capital
& Biz Dev. Improvement Development
(Foreign Trade Missions,
(R&D grants, certification (Knowledge-worker
Business Matchmaking,
subsidies and incentives) Development Institute)
Demand-Supply Matching)
Promotion Nurturing & Development

ITO Activities BPO Activities
a) Data Center a) Contact/Call Center
b) IT Helpdesk b) Transaction Processing
c) Tech Support c) Payroll Processing
d) Hosting d) Customer Relationship Management
e) Human Resource Training
e) Software Development f) Recruitment Process Outsourcing
f) Applications Development g) Supply Chain Management
g) Disaster Recovery Data Center h) Finance & Accounting
h) Device Management i) Data Entry
i) Vertical (Industry Specific) j) Billing
Applications
j) Horizontal (Process Specific)
Applications
k) Systems Integration

KPO
a) Research, Design & Development
b) Project Management
c) Sourcing and Procurement
d) Process Design & Engineering
e) Market Strategy
f) Global Business Integration
g) Investor Relations & Management
h) Equity Research
i) Financial Modeling and Analysis
j) Customer and Portfolio Analysis

Impact of MSC Malaysia
MSC Malaysia Status
2,200 +
Companies
Revenue RM 17 bil p.a*
Jobs Created 79,000+*
Export RM 5.6 bil p.a*
R&D Expenditure RM 1.4 bil*
MSC Malaysia Status
52*
companies listed on MESDAQ
IP/Patents registered 2178*
Source : MSC Malaysia Impact Survey estimated at 2007 ( Include IHLs
and Incubators)

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MSC MALAYSIA NATIONAL ROLL OUT

SMW3
PEOPLE FLAG
SAT3/WASC/ PENANG
To ASEAN,
Asia Pacific &
SAFE CABLE STATION USA
KL: 87% speak English MT
APC
50,000 educated KUANTAN To ASEAN, Asia Pacific,
overseas every year SMW4 (2005)
Cyberjaya
CABLE
EARTH STATION
STATION APCN
Oceania & USA
5.5% wage inflation, 5% MERSING
SMW3
CABLE STATION
attrition M’sia - Indo (2004)
Low cost of high value
workers
ENVIRONMENT
Stable political
COST environment
No natural disasters
Low infrastructure
Robust economy
costs
Excellent cost of living
No hidden costs
vs. quality of life
Low start-up costs
Low inflation rates

INFRASTRUCTURE LOCATION GOVT. SUPPORT
Growing broadband Heart of the emerging One-stop agency
networks and markets Private sector oriented setup
backbones Strategically within a Customer service
Reliable and abundant lower cost region Incentive Packages
power supply Strategy & mandate
World class physical
infrastructure

Malaysia: The Best of All Worlds
6 times the population of
Singapore 27 mil people
50% of the world’s language
spoken naturally 40 Language
Skill available
40% of UK’s GDP per capita 6% CAGR
10% More cost effective than India
(for experienced staff)
3.2 % inflation
rate
1 New high tech firm
created every day 1,500 American
investments

Provide a world-class physical and information
infrastructure.
Allow unrestricted employment of local and foreign
knowledge workers.
Ensure freedom of ownership by exempting companies
with MSC Status from local ownership requirements.
Give the freedom to source capital globally for MSC
infrastructure, and the right to borrow funds globally.
Provide competitive financial incentives, including no
income tax for up to 10 years or an investment tax
allowance, and no duties on import of multimedia
equipment.

Become a regional leader in intellectual property
protection and cyberlaws.
No Internet censorship.
Provide globally competitive telecommunications
tariffs.
Tender key MSC infrastructure contracts to leading
companies willing to use the MSC as their regional hub.
Provide an effective one-stop agency - Multimedia
Development Corporation (MDeC)

Regional / Global Shared Services Centres
International Outsourcing Delivery Centres

OUTSOURCING MALAYSIA

Verticals where Malaysia ranked in top 5*
Energy (# 2)
Finance (# 4)
Transportation and Logistics (# 3)
Source: Frost & Sullivan
Source: AT Kearney
Source: McKinsey & Company

MSC Malaysia’s Value Proposition
Foreign Direct Investment (FDI)
The 6 Factors for Site Considerations
Bill of Guarantees (BOG)
Talent Development
Domestic Direct Investment (DDI)
Bill of Guarantees (BOG)
Talent Development
Outsourcing Malaysia
Nurturing Local SSO Companies to go Global
- Supporting Attainment of International Standards – CMMI
Marketing Support
Knowledge Sharing

Thank You
Matthew L. Barsing
FDI & OECD Markets
Multimedia Development Corp (MDeC), Malaysia
http://www.mscmalaysia.my
matthew@mdec.com.my

Designed to
Hybrid Secure
Simplify
•One of the most advanced fully-digital voice
switches in the world
•Some Achievements:
– re-badged and sold by large equipment manufacturer
since 2005/6. Large install base in Europe
– Core switch provider to a major Chinese mobile
network
– Major provider to one of top three .com in China
•Powered by revolutionary QTAP Architecture and
Technology. Simplification is a key design feature

Designed to
Hybrid Secure
Simplify
•Create enterprise class
applications without writing a
single line of code
•Unique technology:
integrates specification, design
and deployment. No
development
•Capability for real-time design,
Time-to-market: 20 times faster
multilanguage, net and mobile Cost: 10 times cheaper
ready, works in off-line mode Improved quality

Designed to
Hybrid Secure
Simplify
•Among the top 10 trusted identity card makers in
the world
•Powered by the world’s first fully utilised multi-
app: IRIS’s card operating system (MCOS) created
by IRIS
•IBM smartcard solutions are identification card and
“Iris is among the pioneers in electronic powered by IRIS
electronic passport. We are impressed with the group’s
innovation and believe this partnership will be beneficial to
both parties.” IBM vice president of global engineering solutions (GES)

Designed to
Hybrid Secure
Simplify
•Pioneer in Seamless mobility, including MESH
and ad-hoc networks. Designed for hybrid
environments
•Install base: incumbent Telco's in China, Middle
East and various countries Asean
•Worldwide patent owner including “ODMA”
Winner of Deloitte Technology Fast 500 Asia
Pacific
“10 mobile technologies to watch” Mercury, San
Jose

Designed to
Hybrid Secure
Simplify
•A global leader in Intelligent Transportation
systems (ITS) technology and engineering
•Centerpiece technology named i-tac: used
pervasively in Malaysia and UAE.
•Rated as the most
cost-effective world-class
ITS provider in the world

Designed to
Hybrid Secure
Simplify
•Provider to 40% of Top
Banks in South East Asia
•100% success track
record for end-to-end
core banking apps
•Powered by “Silverlake Axis Group Theoretic
Architecture “ including 7,000 banking tables.
Global IBM PartnerWorld Award winner: “Systems & Technology Group (STG)”