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ICT/E-Commerce in Malaysia
 

ICT/E-Commerce in Malaysia

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The Institute of Strategic and International Studies (ISIS): Technology, Innovation,

The Institute of Strategic and International Studies (ISIS): Technology, Innovation,
Environment and Sustainability Seminar
17 July 2007

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    ICT/E-Commerce in Malaysia ICT/E-Commerce in Malaysia Presentation Transcript

    • The Institute of Strategic and International Studies (ISIS)Technology, Innovation,Environment and SustainabilitySEMINAR17 July 2007
    • Transformation: an act, process, or instance of transforming or being transformed
    • Malaysia in TransitionEngine of growth for the K-Economy Malaysia as exporter of technology Source : National Economic Action Council, Malaysia
    • Malaysia in TransitionEngine of growth for the K-EconomyPotential per capita GDP (real 1992 US$) Malaysia as exporter of15,000 MSC technology strategy Enhance domestic productivity10,000 IT-based value creation 5,000 No action (original industrial approach) Source : National Economic Action Council, Malaysia 1992 1996 2000 2004 2008 2012 2016 2020
    • MSC Malaysia: VisionThe MSC is about changing the way we live and work… this special area will be a global test-bed for: „ the new roles of government; „ new cyber laws and guarantees; „ G2B and B2B collaborations; „ new broadcasting; „ education; „ delivery of healthcare; and „ new technologies … Government’s Policy Statement at Launch of MSC, 1 August 1996
    • MSC Malaysia: Mission  To realize Malaysia as a global hub and preferred location for ICT, Multimedia and Services for Innovation and Operations  To realize the next engine of growth in support of Malaysia’s Vision 2020
    • MSC Malaysia: Spearheading TransformationSlide 7 [ DAY 2: 18 May, 2007 - Friday ]
    • MSC Malaysia’s Contribution to Realising the National Mission FIVE (5) THRUST AREAS OF 9TH MALAYSIAN PLAN (2006 ‟ 2010) Facilitating ICT based New Growth Areas:  Creative Multimedia Content Industry  Shared Services Outsourcing  MSC Malaysia Flagship Applications  MSC Malaysia: Nurturing Human Capital for K-based Economy  MSC Malaysia National Rollout will create K-based Infrastructure  MSC Malaysia National Rollout and Flagship Applications will help reduce the income gap and the digital divideSlide 8 [ DAY 2: 18 May, 2007 - Friday ]
    • MSC Malaysia: Reaching out to the People Quality education  88 smart schools to serve as benchmark for schools nationwide.  “Quality Education for All” through Education Development Blueprint (2006-2010)  Smart School Qualification Standards adopted for quality assurance Better healthcare delivery  38 hospitals providing Teleconsultation Healthcare services nationwide  1000 professionals trained on Online Healthcare coursesSlide 9 [ DAY 2: 18 May, 2007 - Friday ]
    • MSC Malaysia: Reaching out to the People MyKad significantly improves governance, transparency and government services delivery  Greatly enhances National Security  No cloning of chip based ID  Zero fraud in payment transactions  Convenience for citizens enhanced  Reduced queues e.g. Immigration points  Reduced processing time for passport renewal  150,000 Points-of-Usage  Access to multiple applications:  9 On-Card and 29 Off-Card to date  “ONE COMMON PLATFORM” more than 300 integrated Government Service Centre (GSC)Slide 10 [ DAY 2: 18 May, 2007 - Friday ]
    • MSC Malaysia: Enhancing Government Services Delivery Positive Impact of EG Applications  myGovernment (myServices) portal offers more than 400 online services and 19 SMS services  E-Procurement transaction value grew in 2006: RM 2 billion worth of contracts  Electronic Labour Exchange captured 120,000 job applicants, 436,000 vacancies and 17,000 job placementSlide 11 [ DAY 2: 18 May, 2007 - Friday ]
    • MSC Malaysia: Nurturing Human Capital for K-based Economy  MDeC K-Workers Development Programs including stop-gap measures on going. Will train 30,000 Malaysians in High-Value Industry Skills  Long Term measures e.g. Universities curriculum changes will produce 100,000 graduates to meet investors needs MDeC working with investors to rapidly scale to global standards, human capital in high value niche areas. e.g. Infosys (Software Engineers) Rocket Fish (Creative Multimedia) Altera (Hardware Design) K-Worker Demand-Supply matching system being developed Structured Government-Industry Engagement Process EstablishedSlide 12 [ DAY 2: 18 May, 2007 - Friday ]
    • MSC Malaysia Milestones
    • The MSC Malaysia – Global Test-Bed KLCC PETALING JAYA SHAH ALAM LAND-PORT KLANG ED ER AL HI PELABUHAN KLANG COUNTRY HEIGHTS L KAJANGSEAPORT SEMENYIH TELOK DATAPORT Putrajaya PANGLIMA GARANG PULAU INDAH Cyberjaya AIRPORT CITY BERANANG A AY PULAU CAREY BANDAR SALAK TELOK TINGGI BANDAR BARU BANTING DATOK NILAI AIRPORT KLIA Sepang F1 SEREMBAN SEPANG PORT DICKSON PORT Dickson
    • MSC Malaysia – Roll-Out MSC Malaysia Cybercity Status: MSC Malaysia Cybercenter Status :„ Physical location and environment to catalyse and support growth of ICT and ICT-enabled industries nodes for development of ICT and ICT-enabled clusters„ Nuclei to bridge digital divide and extend ICT benefits to the community„ Platform to cultivate a performance culture in service delivery Kulim Penang KL SENTRAL Perak Pahang KLCC UPM-MTDC National MSC Hub N. Sembilan MITC Melaka TECH PARK CYBERJAYA Johor
    • Strategic Advantage of MSC Malaysia Raise Your Productivity • High Quality SkillsSTRUCTURALSTRENGTHS • Low Cost of Doing Business • Strong Economic Environment YAB Datuk Seri Abdullah • Freedom to Move Key Factors Ahmad Badawi, Prime Minister - People, Ideas, Capital, EquipmentMSC MALAYSIA • Zero Corporate Tax Regime INCENTIVES • Lowest Cost World-Class Infra. • One Stop Agency YB Dato Dr. Jamaludin Jarjis • Customised Incentives Science, Technology and Innovation Minister
    • Strategic Advantage of MSC Malaysia Raise Your Productivity  87% speak English  50,000 educated overseas every PEOPLE year  5.5% wage inflation, 5% attritionSTRUCTURAL STRENGTHS  Low cost of high value workers  Low infrastructure costs  No hidden costs COST  Low start-up costs  Low inflation rates ENVIRONMENT  Stable popular government  No natural disasters  Robust economy  Excellent cost of living vs. quality of life
    • MSC Malaysia Incentives The Government of Malaysia commits the following 10 Bill of Guarantees (BoG) to MSC Malaysia Status Companies: 1. Provide a world-class physical and 6. Become a regional leader in intellectual information infrastructure property protection and cyberlaws 2. Allow unrestricted employment of knowledge 7. Ensure no censorship of InternetMSC MALAYSIA INCENTIVES workers 8. Provide globally competitive telecoms tariffs 3. Ensure freedom of ownership 9. Tender key MSC infrastructure contracts to 4. Allow freedom of sourcing capital globally for leading companies willing to use MSC as their MSC infrastructure and freedom of borrowing regional hub funds 10. 5. Provide competitive financial incentives including no corporate tax or an investment tax allowance for up to ten years and no duties on the import of multimedia equipment
    • Driving Malaysia’s IT InitiativeMDeC is the organization that is mandated by the Govt. ofMalaysia to drive the realization of the National IT initiative‟ the MSC MalaysiaWe move the country towards theK-Economy and help Malaysia achieve Vision 202010 Year old government company that is under the purviewof the Ministry of Science, Technology & Innovation
    • Services provided by MDeC MDeC (Multimedia Development Corporation) is the one-stop 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)
    • MSC Malaysia Flagship Applications : Catalyst
    • MSC Malaysia Industry Clusters : Focus Focus on developing 5 business clusters crucial for the development of the ICT industry MobilityembeddedSoftware-Hardware Application Software
    • MSC Malaysia Status Companies as of July 2007 Total Approved MSC Status companies 2000 Malaysian Owned (51% and above 1,859 Foreign Owned (51% and above 1800 50-50 Joint Venture 1728 1600 1,421 1,383 1400 Number of Companies 1285 1,163 1200 1,033 973 1000 812 825 800 666 621 600 543 429 410 401 428 349 400 300 276 281 307 248 197 181 198 200 94 107 112 144 47 84 39 42 48 443 7 9 13 21 26 31 6 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Current
    • Operational Cluster Awarded* ** Mobility,Application Software Embedded Software & Creative(AS) 792 681 Hardware, 312, Multimedia, 147, 21% 10%Mobility, Embedded IHLs and SSO, 106, 7%Software & Hardware Incubators, 76,(MeSH) 404 312 5%SSO 127 106Creative Multimedia 200 147IBB 254 164 Application Software, 681,IHLs & Incubators 82 76 IBB, 164, 11% 46%GRAND TOTAL 1,859 1,486 MSC Malaysia Status Companies by Technology Cluster: Operational as of July 2007
    • Success Story: Investments
    • MSC Malaysia Strong Performer (MSP) as of Feb 14th, 2007 Companies Year of Approval Redtone Telecommunications Sdn Bhd 1996 IFCA MSC Bhd (Software Online Sdn.Bhd) 1998 Computer Infobase System Berhad 2000 Airocom Technology Berhad 2000 Green Packet Berhad 2001 Tricubes Computers Sdn Bhd 2002 Actinium Network Sdn Bhd 2002 SCAN Associates Berhad 2002 Inventec Multimedia Corporation (M) Sdn Bhd 2004 JCY International Sdn Bhd 2005 Silver Ant Sdn Bhd 2006 MCSB E-Commerce Sdn Bhd 2006 iCIMB Sdn Bhd 2006
    • MSC Malaysia: Sharing Our Experiences with the World  First of its kind in the region  Representation  MSC Malaysia: ICT Global Hub In Smart Card & from 32 e-Passport (44 Participating Countries) countries  Already Secured more than RM 70 mil exportSlide 27 [ DAY 2: 18 May, 2007 - Friday ]
    • MSC Malaysia: Rapidly Growing Exports Across Global Market 15% 20% 10% 30% 25% Over 300 MSC Malaysia status firms exporting to All Major MarketsSlide 28 [ DAY 2: 18 May, 2007 - Friday ]
    • MSC Malaysia Impact (KPIs)MSC Status Companies (As of 17 Feb. 2007) 1,734Jobs Created (Impact 2005 – Sept. 2006) 33,851 HVJsRevenue (Impact 2005 – Sept. 2006) US$2.69 bilExport (Impact 2005 – Sept. 2006) US$700 milR&D Expenditure (Impact 2005 – Sept. 2006) US$151 milIP/Patents registered (Impact 2005 – Sept. 2006) 1,072MSC companies listed on MESDAQ 44
    • Implications: Hollowing out of Businesses Physical Economy Digital Economy Multiple Sources ‘Marketplace’ ‘Marketspace’ Product Multi Products Customisation INFOmediaries: e.g. Malaysian Portals, Search Engines, Communities intermediaries Gateways, Call/Service Centers $$$ Information Fulfillment Malaysian Foreign/Malaysian Consumers Consumers
    • Malaysia Internet & E-Commerce DevelopmentMalaysia Internet Users Versus Population, 2004 ‟ 2005 (Million) 2004-2005 Year 2004 2005 (est) Growth Internet Users 11.6 14.0 20.7% Malaysia Population 25.50 26.0 2.0% % of Internet Users/Total 45.5% 53.9% Population in Malaysia Source: IDC 2005Malaysia E-Commerce Spending, 2004 ‟ 2005 (US$M) 2004-2005 Year 2004 2005 (est) Growth B2C E-Commerce 1,345.8 1,946.3 44.6% B2B E-Commerce 4,099.7 7,698.0 87.8% Total E-Commerce Spending 5,445.5 9,644.3 Source: IDC 2005
    • Internet Buyers – 414,631 (9.3 % from Internet users)Online Purchases in Malaysia by Products – Airline tickets – 43.8% – Books – 15.6% – Music – 6.8%
    • THE IDEAL ENVIRONMENT Internet Based Business B Q T I D M R U R A UI P I A A L SN C S R N I &N T I O P T K D T E NO N R R E Y S E D TV T O I T I P R EA E T B D S R R VT N E U A E O I E FI T C T C N D C R AO T I C T U E V CN I O E I C S I E S C S O N S T T N S Y E S GOOD BANDWIDTH EFFICIENT AND TRUSTED PAYMENT SYSTEMS FULFILMENT SYSTEMS AND LOGISTICS USER FRIENDLY, AFFORDABLE ACCESS DEVICES & INTERFACES STABLE AND SUPPORTIVE INSTITUTIONAL ENVIRONMENT
    • Internet Based Business Cluster: Definition/Qualifying Activities Utilise the world wide web as its main platform of operation such as its marketing, web hosting and/including e-commerce transactions Application service providers, e-commerce service providers; web- based trading platforms. E-Government based service providers
    • Internet Based Business Cluster: Breakdown by Focus Areas  Construction  Consulting120  CRM/ERP  E-Commerce/Web Development  E-Government 100100  E-Stockbroking  eTax  Financial Services80  Healthcare  Logistic  Online Portal HR60  R&D and Training  SCADA  Transport - Ticketing40  Travel  Wireless/Mobile/SMS Services20 12 11 10 7 5 5 4 4 3 2 1 1 1 0 value chain e- e-marketing value chain virtual info search e- online entertainment e-payment e-auction e-shop finance integrator marketplace svc pro community brokerage engine procurement recruitment
    • IBB Companies: Local
    • Some of Internet Based Business Cluster Companies in MSC … Cari Internet Sdn. Bhd. MAL www.cari.com.my L “Malaysian- Specific Search Engine” NetBuilder Sdn Bhd www.netbuilder.com.my “E-Commerce Online Mall Solutions ” MyMix Sdn Bhd “Online Music Downloading www.mymixstation.com Through Kiosk and Internet” Webture Sdn Bhd “Online Community and www.webture.net Cross Industry Integrated Web Solutions ”
    • Some of Internet Based BusinessCluster Companies in MSC .. cont’d (1) Excard Corporation Sdn Bhd www.excard.com.my “Malaysia Full ‟ Service Printing via Internet” MCSB E-Commerce Sdn Bhd www.manex.com.my “Malaysian Automotive Network Exchange” Alpine Innovation Sdn Bhd “Integrated ERP Solutions www.alpine.com.my via ASP Model” Holiday City Sdn Bhd “Online Hotel Accommodation Reservation Services www.holidaycity.com ”
    • Some of Internet Based BusinessCluster Companies in MSC .. cont’d (2) Netwhizz Sdn Bhd “Malaysian Food Information and Traceability ” www.m-fit.info PC3 Technology Sdn Bhd www.hargaruntuh.com “Online Shopping for IT technology Products and Accessories ” asiaEP Berhad “Malaysia Business to Business (B2B) E- www.asiaep.com Marketplace” Dagang Net Commerce Sdn Bhd www.dagangnet.com “E-Trade Facilitation Services”
    • IBB Companies: International/Joint Venture 48 IBB companies SHAREHOLDING BY COUNTRIES/REGIONS Cayman Islands
    • 16th World Congress on Information Technology May 18 – 22 2008 KUALA LUMPURThank you suhaimi@mdec.com.my