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THE 2001 APEC CUSTOMS-BUSINESS DIALOGUE (ACBD) 13 – 14 AUGUST 2001, SHANGHAI, CHINA

THE 2001 APEC CUSTOMS-BUSINESS DIALOGUE (ACBD) 13 – 14 AUGUST 2001, SHANGHAI, CHINA

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Information Technology in Global Trade - “Knowing You & Me, Know Where We Are!” Information Technology in Global Trade - “Knowing You & Me, Know Where We Are!” Presentation Transcript

  • THE 2001 APEC CUSTOMS-BUSINESS DIALOGUE (ACBD) 13 – 14 AUGUST 2001, SHANGHAI, CHINAInformation Technology in Global Trade - “Knowing You & Me, Know Where We Are!” Presentation by: Suhaimi Nordin Head of Borderless Marketing Multimedia Development Corporation
  • AGENDA ICT: Technology Adoption And Progression Global Trends And Development - Implications for Malaysia ICT, E-Business And E-commerce - Addressing Strategic Issues for Malaysia Is Malaysia e-Ready?, and what are the challenges? Public & Private Sector Initiatives Growing Market for E-Commerce in Malaysia Closing Remarks 2
  • TECHNOLOGY ADOPTION RATE Television Electricity (1926) (1873) 100 Radio (1905) TelephonePercentage of ownership (1876) 80 VCR (1952) Automobile (1886) 60 PC 40 (1975) 20 Internet (1975) 0 20 40 60 80 100 120 Years since introduction 3 Source: Network Services Executive Summit, USA
  • PROGRESSION OF TECHNOLOGY ’50s ’60s ’70s ’80s ’90s 2000 2010 Television Cable Black and Expanded white programming Color Premium services Internet, online, and broadband networksMainframe Nintendo IBM® PC IHPC Mini Multimedia PC Computing 4
  • ICT ENVIRONMENTExplosion of Transactions Information Appliances More users, more devices, B2B e-markets PC + Television =Deep Computing Web TV or Interactive TV Intelligent CommerceExplosion of Data Television + Internet = Web Content, Intercasting Business Intelligence, e-CRM Palmtop PC + Wallet =Rich Media Wallet PC New uses, new marketsInteroperability Telephone + Internet = Flexibility, open standards Web PhonePervasive AccessAnytime, anywhere Internet + PC =Next Generation Internet Internet PC or NC Very high bandwidth, Low cost Internet + Kiosks = Integrated voice, video, data Internet Kiosks 5
  • INTERNET ADOPTION RATE COMPLEXITY Stages of Internet Adoption by Government and Business VALUETO IMPLEMENT Publish Interact Transact Integrate Transform Websites Use of e-mail Ability to Integration of Websites used provides to interact handle on-line website with to transform information with Internet transactions legacy the business only users systems E-Business / E-Commerce is being recognised as not just involving the use of the Internet for e-mail and web brochures but the use of ICTs throughout all business processes to create real, sustainable competitive advantage. 6
  • AGENDA ICT: Technology Adoption And Progression Global Trends And Development - Implications for Malaysia ICT, E-Business And E-commerce - Addressing Strategic Issues for Malaysia Is Malaysia e-Ready?, and what are the challenges? Public & Private Sector Initiatives Growing Market for E-Commerce in Malaysia Closing Remarks 7
  • IMPLICATIONS: HOLLOWING OUT OF MALAYSIAN BUSINESSESPhysical 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 e.g. Malaysian Foreign/Malaysian Consumers Consumers 8
  • IMPLICATIONS IN GLOBAL CONTEXT1. First-mover enjoysentrenched position as „lock-in‟increases switching costs2. There will winners and United Kingdom Canada Irelandlosers in Knowledge Age Germany United States of America Japan3. Government Indiainterventionist policies Malaysiaare needed to correct for Singaporemarket imperfections Australia4. Capital will gravitate towards a few„hubs‟ which have developed a critical New Zealandmass of users and producers E-Business may be used to circumvent non-tariff barriers and gain access to the protected service sectors of emerging economies. 9
  • THE CULTURAL ORIGINS OF THE INTERNET DO NOT FAVOUR DEVELOPING COUNTRIES Digital Divide Affecting Developing Economies  North America,  80% of the world‟s web sites are in with less than 5% English, which is spoken by less than of the world‟s 10% of the world‟s population population, has more computers than the rest of the world combined Only 2.4% of allpeople in the world have  Southeast Asia has 8.6% of theaccess to the Internet world‟s population, but only 1.8% of the world‟s Internet users 10 Source: United Nations Development Program (UNDP)
  • THE RACE IS ON ….. • Countries around the globe are racing to prepare themselves for electronic commerce and Canada United Kingdom Ireland Germany the emerging knowledge economy.United States Japanof America India • One of the defining Singapore characteristics of the Australia knowledge economy is New Zealand that it is truly global. Markets are no longer defined by, or limited to, national boundaries 11
  • WORLD COMPETITIVENESS SCOREBOARDCOUNTRY 2001 2000 COUNTRY 2001 2000US 1 1 New Zealand 21 18Singapore 2 2 Estonia 22 -Finland 3 4 Spain 23 23Luxembourg 4 6 Chile 24 25Netherlands 5 3 France 25 22Hong Kong 6 12 Japan 26 24Ireland 7 5 Hungary 27 26Sweden 8 14 South Korea 28 28Canada 9 8 Malaysia 29 27Switzerland 10 7 Greece 30 34Australia 11 10 Brazil 31 31Germany 12 11 Italy 32 32Iceland 13 9 China 33 30Austria 14 15 Portugal 34 29Denmark 15 13 Czech Rep. 35 40Israel 16 21 Mexico 36 33Belgium 17 19 Slovak Rep. 37 -Taiwan 18 20 Thailand 38 35UK 19 16 Slovenia 39 36Norway 20 17 Philippines 40 37 12 Source: World Economic Forum
  • AGENDA ICT: Technology Adoption And Progression Global Trends And Development - Implications for Malaysia ICT, E-Business And E-commerce - Addressing Strategic Issues for Malaysia Is Malaysia e-Ready?, and what are the challenges? Public & Private Sector Initiatives Growing Market for E-Commerce in Malaysia Closing Remarks 13
  • ICT, E-BUSINESS & E-COMMERCE There are many definitions for E-commerce. Examples: “The electronic exchange of information goods, services and payments” but underneath the surface E-commerce is also: …the digitization of information ...Internetworking of human ingenuity creating a new socio-economic transformation …propelled by BRAINS instead of BRAWN …driven off by both technology push and business pull …the foundation of a new economic order Nations need to identify clusters for industrial development and reposition themselves to be at the centre of the virtual marketspace… 14
  • NATIONAL E-COMMERCE COUNCIL CHAIRMAN OF NECC Chief Secretary Government of Malaysia Secretariat MDC Sub-Committee on Sub-Committee onElectronic Infrastructure Trade (MECM) (MITI) Inter-Agency Task Force on E-Commerce (IATFEC) 15
  • NATIONAL E-COMMERCE STRATEGIC DIRECTIONS PLAN The broad aim of the study is: • To understand and assess the full potentials of e-commerce and anticipate their various ramifications • Recommend options for national strategy • Recommend programmes for developing local capability to exploit e-commerce for national competitiveness Key objective:To create an environment conducive for global Electronic Commerce business in Malaysia. 16
  • FIVE (5) REQUIREMENTS FOR EFFECTIVE PARTICIPATIONPRECONDITIONS FOR PARTICIPATION IN GLOBAL E-COMMERCE GOOD BANDWIDTH FULFILMENT SYSTEMS AND LOGISTICS EFFICIENT AND TRUSTED PAYMENT SYSTEMS STABLE AND SUPPORTIVE INSTITUTIONAL ENVIRONMENT USER FRIENDLY, AFFORDABLE ACCESS DEVICES & INTERFACES 17
  • THE EIGHT PILLARS FOR COMPETITIVENESS QUALITY TRUSTED IP MARKET BRAND PRODUCTS SERVICEINNOVATION CONTENT PROTECTION DISTRIBUTION ACCESS IDENTITY & SERVICES INTERFACES The EIGHT PILLARS FOR COMPETITIVENESS represent the core requirements for firms to participate competitively in Electronic Trade and the Supply Side of E-commerce 18
  • THE IDEAL ENVIRONMENT MALAYSIAN E-COMMERCE 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 19
  • AGENDA ICT: Technology Adoption And Progression Global Trends And Development - Implications for Malaysia ICT, E-Business And E-commerce - Addressing Strategic Issues for Malaysia Is Malaysia e-Ready?, and what are the challenges? Public & Private Sector Initiatives Growing Market for E-Commerce in Malaysia Closing Remarks 20
  • ICT READINESSReadiness is the degree to which acommunity is prepared to participate inthe Digital Economy.Its is gauged by assessing a community‟srelative advancement in the areas that aremost critical for ICT adoption and themost important applications of ICTs. 21
  • WHY ICT READINESS ASSESSMENT?Understanding our EC Readiness will providedeeper perspectives on the following strategies:• Organising our country for success in the New Economy• Planning for E-Business initiatives• Aligning governance models for optimum leverage of the Internet• Promoting E-Business leadership• Linking Internet and business strategies• Helping identify opportunities for competitive advantage• Identifying best practices 22
  • ICT CAPABILITIES OF SMEs IN MALAYSIA (1999 – 2003)The level of ICT Readiness in terms of capabilities of 811 SMEs surveyed Capabilities Possessed 1999 2000 2003 % % % A strategy for e-commerce 16 45 66 Computers 90 90 92 Access to the Internet 55 77 82 Have electronic mail 49 76 80 Company web site 17 55 69 Web site advertising of products/services 15 50 68 Internet based order taking 7 43 67 Internet based order payment 2 32 62 Customer service via the Internet 17 47 70 Internal computer network 31 56 75 External computer network linking 9 38 68 key business partners Computerized database of customers 49 69 78 Computerized database of suppliers 43 66 77 Computerized inventory of products 39 63 75 811 811 811 BASE: All Firms 23 Source: MSCTC
  • E-COMMERCE CAPABILITIES BY INDUSTRY FOR SMEs (1999)Manufacturing and Services sector are the most ready SME sectors interms of EC capabilities and awareness. TOTAL TYPE OF INDUSTRY % Construction Manufacturing Service Agriculture % % % % A strategy for e-commerce 16 7 22 21 8 Computers 90 85 92 93 75 Access to the Internet 55 35 62 68 38 Have electronic mail 49 24 54 66 29 Company web site 17 4 23 25 4 Web site advertising of products/services 15 2 20 21 4 Internet based order taking 7 3 11 8 0 Internet based order payment 2 2 1 4 0 Customer service via the Internet 17 4 22 23 0 Internal computer network 31 18 31 45 4 External computer network linking 9 2 8 17 0 key business partners Computerized database of customers 49 34 54 57 42 Computerized database of suppliers 43 30 52 47 38 Computerized inventory of products 39 21 53 44 25 BASE: All Firms 811 227 225 273 24 24 Source: MSCTC 1999
  • FINDINGS – ASSESSING READINESS• Most of the company surveyed lack the full range of capabilities that are prerequisites for participation in the digital economy• Most companies posses only the basic capabilities such as the use of (stand-alone) computers and having access to the Internet• Less than 50% of the companies surveyed have moved to capabilities such as using email, developing databases of their customers, product inventory and supplier information.• Less than 15% of companies are engaged in selling and purchasing via the InternetDespite all of the above, by the year 2003, most companiesreported that they will increase their level of readiness for E-Commerce. More than 60% of companies plan to engage inInternet selling and purchasing. 25
  • CONSTRAINTS FACED BY COMPANIESCommon Primary Barriers:• High set-up costs• Lack of technical knowledge to implement E-Commerce• Lack of critical mass• Inadequate legislation protecting Intellectual Property Rights• Lack of standards of conducting trade nation-wide and globally• Lack of public trust on the Internet• Current technologies do not address security and privacy concerns• Insufficient customers/suppliers have Internet access 26
  • NECSDP RECOMMENDATIONSThe Study identifies 5 recommendations and 22 sub-recommendations:• To build critical mass• To build trust on the web• To attract inbound consumers• To transform organisation in Malaysia to be E-Commerce ready• To establish ground rules: Policy and regulatory framework 27
  • E-Commerce Strategic Directions: The Recommendations(i) Build Critical Mass (1) Internet Penetration - To increase the number of online users and online hosts (2) Access Devices Penetration - To increase the number of access devices in Malaysia (3) Network Access and Tariffs - To create cost effective network access for businesses and consumers entering e-commerce (4) Telecommunications Infrastructure - To create an efficient telecommunication infrastructure. 28
  • Growth of Internet Subscribers in Malaysia (1995-2005)(‘000 million) Projected growth 7,000 An Internet penetration of 20% of 6,005 6,000 population will spur the growth of 5,525 E-Commerce in Malaysia 4,837 5,000 4,225 4,000 3,111 3,000 1,852 2,000 892 1,000 442 90 210 25 0 95 96 97 98 99 00 01 02 03 04 05 Year (1995 – 2000) 29 Source : MECRA (TMnet, Jaring, MaxisNet, TimeNet), PIKOM, MDC, MECM
  • ACCESS DIVIDE Northern 5% 14% Eastern Sabah 7% Central 56% Southern 11% 7% SarawakConcentration of Internetusers in Malaysia. 30 Source: Ministry of Energy, Communications and Multimedia / TMnet / Jaring Dec.1999)
  • E-Commerce Strategic Directions: The Recommendations (Cont’d)(ii) Build Trust on the Web (5) Electronic Payment System - Promote the use of trusted payment systems and applications for business merchants (6) Logistics and Fulfillment Infrastructure - Creating a trusted and competitive logistic and fulfillment infrastructure for e-commerce products and services (7) Protecting Privacy - Establish protection for personal information (8) Security - Maintain integrity of electronic data and protection from infringement (9) Awareness and Education - Encourage promotion and training of E-Commerce 31
  • E-Commerce Strategic Directions: The Recommendations (Cont’d)(iii) Attracting Inbound Consumers (10) Content Development - Build pool of local content that meets international standards and demands (11) Web Hosting - To develop web hosting capabilities as well as maximising its usage. (12) Global Connectivity - Create better connection with international communities. (13) National E-Commerce Branding - Creating a portal for national e-commerce branding campaign 32
  • E-Commerce Strategic Directions: The Recommendations (Cont’d)(iv) Organisational Transformation (14) Creating EC Corporations - Restructure Corporation to cut costs, improve flexibility and make better use of technology to exploit E-Commerce (15) Physical to Digital Value Chain - EC requires a more dynamic and interrelated function of the value chain. (16) Work-culture - Encourage an Entrepreneurial culture to make it easier to start new business (17) Venture Funding - Develop Venture Capital and IPO markets to aid innovative companies (18) Incentives - Government intervention needed to help to bring out the best of the firms. 33
  • E-Commerce Strategic Directions: The Recommendations (Cont’d)(v) Policy and Regulatory Framework (19) Consumer Protection - Increase consumer confidence in transacting over the internet (20) Intellectual Property Management & Commercial Codes - New intellectual property management and e-commerce code needed and enforced. (21) Dispute Resolution - Amendments needed to remedy the problem of dispute resolution in e-commerce (22) Taxation - Review taxation laws and tariffs to encourage businesses. 34
  • AGENDA ICT: Technology Adoption And Progression Global Trends And Development - Implications for Malaysia ICT, E-Business And E-commerce - Addressing Strategic Issues for Malaysia Is Malaysia e-Ready?, and what are the challenges? Public & Private Sector Initiatives Growing Market for E-Commerce in Malaysia Closing Remarks 35
  • MSC FLAGSHIP APPLICATIONS Multipurpose Card Smart Schools Electronic Government Tele-health R&D Cluster E-Business WorldwideBorderless Marketing Centre Manufacturing Web 36
  • E-GOVERNMENT APPLICATIONSELECTRONIC LABOUR eSERVICES EXCHANGE ePEROLEHAN E-Procurement PROJECT MONITORING E-GOVERNMENT SYSTEM ACCOUNTANT GENERAL E-GOVERNMENT HUMAN RESOURCEMGMT INFO. SYSTEM GENERIC OFFICE ENVIRONMENT 37
  • SCOPE OF E-PROCUREMENT Central Contract Direct ELECTRONICPurchase Tender PROCUREMENT Quotation 38
  • E-PROCUREMENT PROCESSES An on-line Government procurement process for goods andservices – linking 33,000 suppliers to 3,500 government agencies Product Supplier PO Order Order Requisition Selection Issuance Fulfillment Payment • Electronic• Electronic • Electronic • Order Tracking • Payment Match Requisition Catalog Submission • Delivery • Ledger Linkage • Electronic• Electronic • PO Acknowledgement • Electronic Approval Browsing Acknowledge- • Invoicing Payment • Budgetary ment Control Central Contract, Direct Purchase, Quotation and Tender Agency Supplier Product Management Management Management • Agency Profile • Supplier Profile • Contract Management Management Management • Product and catalog • User Profile Management • User Profile Management Management 39
  • E-PROCUREMENT BENEFITS• Building the national e-Commerce engine• Low risk and low entry cost into e-commerce for SMEs• More effective and efficient procurement processes - Through better informed selection of products & services - Online up-to-date product information and pricing• Minimum investment cost to the Government• Greater accountability and transparency• Ease of monitoring suppliers‟ performance, statistics, etc.• Centralisation of operations for suppliers• Self-service tracking of order & delivery status• A more skilled and knowledgeable workforce 40
  • GOVERNMENT MULTI-PURPOSE CARD (GMPC) NATIONAL I.D DRIVING LICENSE MULTI APPLICATION SMART CARD PASPORT MALAYSIA E-CASHIMMIGRATION PUBLIC KEY INFRASTRUCTURE HEALTH INFORMATION 41 (Open PKI Digital Certificate)
  • PUBLIC KEY INFRASTRUCTURE(PKI) msc trustgate.com www.msctrustgate.com www.digicert.com.my 42
  • GMPC SERVICES Transport: Driving License Using E-Cash for Toll charges, Bus rides, Light Rail, ERL, Parking Traveling: Passport for immigration clearance Retail: Purchases of small items (e.g. at 7-Eleven) Databases: Individual information Health Information: Clinics 43
  • BENEFITS OF GMPCBenefits offered - security, convenience andefficiency:  First in the world to have multi Government applications and E-Cash on a single national smart card  Combined Government services at one-stop centre, GSC (Government Service Centre)  Future extension of government e-Services over the Internet  Common and standardised set of identification data across different Government Agencies preventing duplication of records 44
  • Private Sector Initiatives:Financial: E-Banking & Security TradingManufacturingTourism 45
  • FINANCIAL SECTOR Electronic Banking in Malaysia 1981• 1st Electronic Innovation – Automated Teller Machines (ATM) • Released constraint of time and geographical location. 1990s• Telebanking • Financial services via telecommunication devices1st June 2000• Malaysian Central Bank allowed local owned commercial banks to offer Internet banking services. 46
  • IMPORTANCE OF E-BANKING• Costs of business transactions Traditional Telephone Internet System Based BasedRetail banking transaction 1.08 0.54 0.13(US$ per transaction) Source: OECDThe cost of doing business with traditional paper-based andhuman-intensive processes continue to grow, whereas theelectronic processing of transactions can be done at the fractionof the original cost.• Convenience of electronic interactionsConsumer choice will be driven by the richness and depth of theon-line service offered by the bank. The consumer wants, easyand comprehensive banking services and self-service control. 47
  • IMPORTANCE OF E-BANKING (Cont’d)• New growth marketsIt is becoming increasingly difficult to expand market share inthe traditional marketplaces. By shifting to Internet-drivenmarketplaces, banks have a chance to redefine market sharesin the marketspace. This is an opportunity for local banks tohave global reach by opening international markets viaelectronic marketplaces.• Banks can offer wider range of servicesThe creation of new products specifically designed for theon-line markets, making financial services and productsmore efficient and less costly to end-users. 48
  • INTERNET BANKING BY MALAYSIAN BANKS• 15 June 2000 Maybank  www.maybank2U.com• December 2000 Hong Leong Bank EC Banking  www.hlbb.hongleong.com.my SBB Direct• 1st Quarter 2001 Southern Bank Internet Banking  www.sbbdirect.com.my• End-2001 Alliance Bank  www.mphh.com.my 49
  • SECURITY TRADINGThe shift in the Malaysian trading paradigm:• Renew perspective on the fundamental role of market intermediaries• Exchanges and clearing houses will have to keep up with the pace of change• Composition of investors is changing• New breed of investors emerging• To face reality of liberalisation 50
  • PRO’S & CON’S OF ONLINE TRADINGBenefits of Online Trading• Savings / Efficiency / increase productivity• Facilitate foreign investors• Online trading allows 24 hours trade• Opening the capital markets to more players• Trading will be done on multiple currencyImplications• Capital out-flow – more difficult to manage 51
  • Efforts to develop E-Commerce in the Malaysian Capital Market• As at 20 November 2000, the KLSE had approved 14 stockbroking companies providing the Electronic Client Ordering Systems (ECOS) via the Internet – The 14 companies had approximately 8,000 ECOS-Internet clients registered with them.• Two (2) stockbroking companies were granted regulatory approval to provide order-routing services through wireless application protocols (WAP).• As at September 2000, the Commission had granted the investment adviser‟s license to two (2) on-line investment advisers, surf88.com.my and MalaysiaStreet.com.my 52
  • MANUFACTURING SECTOR Benefits of Manufacturing Online:• Integrate business processes• Maximize process efficiencies• Reduce inventory costs• Increase time to market• Minimize supply chain implementation risks• Efficient order and inventory management• automate the exchange of information with multiple business partners 53
  • Impediments of E-Commerce Implementation in Manufacturing Industry• Lack of knowledge and understanding of E-Commerce• Inadequate legislation protecting intellectual property• High setup cost (hardware and software)• Lack of International standards• High day-to-day operation cost• Not convinced of financial and business benefits• Internet channel conflicts with current sales channel. 54
  • ASPs for Online Manufacturing Local grown Application Service Providers (ASPs) can assist manufacturing companies to move on-line:• Internet based order taking and payment• Computerised databases of customers and suppliers• Computerised inventory of products 10,000 homepages and promotes 50,000 products Asian Manufacturers for North America Market The earliest player in the b2b game, It launched it services in April 1999 55
  • TOURISM INDUSTRYMillions Tourist arrivals, 1990 - 2000 12 Between 1996 – 2000, it is estimated that over 15% of tourist that came to Malaysia 10 obtain information about Malaysia over the World-Wide-Web 8 6 4 2 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 56 Year
  • Benefits of Tourism OnlineBenefits of Tourism Online Able to reach out for bigger market Engaging content Bigger participation in the tourism portal Introduction of multiple services such as, hotel booking, airlines ticketing, car rental and visits/tour packages 57
  • TOURISM INDUSTRY 1998 1999 2000 Total Tourism Revenue RM 9.5b RM 12.2b RM 17.3b No. of Tourism Arrivals 5.55m 7.93m 10.22m No. of Hotels 1,419 1,404 1,459 Top generating markets in 2000 – Singapore, Thailand, Indonesia, Japan, China, Brunei, Taiwan, UK, Australia and the U.S The Ministry and Tourism Malaysia formed a Tourism for the new economy Task Force in year 2000. Members of the TF includes private industry players and tourism associations. A Tourism portal – MalaysianTourism.com will be launch on 15th June 2001. 58
  • ASIA TRAVEL MART Highlight: • AsiaTravelMart is a one-stop travel shop for hotels, air tickets, tour packages and other travel products • Offers more than 60,000 products from over 3,000 travel suppliers in more than 100 countries • Also, offers mobile-commerce transactions to WAP users (world‟s first). • Awards, including PATA Gold 2000, Internet World Asia Industry Award, PIKOM Award and APMITTA Award 59
  • RELIANCE TRAVEL Highlight: • Reliancetravel.com provides online retailing of tourism, travel and hospitality products and services. • Expected gross-sales for 1Q2001 – RM20 million • Provides referral program (sharing revenue) with many local Internet companies • Currently offers nearly 10,000 travel- products • Website features, multiple currency pricing, instant online booking 60 confirmation and travel management
  • SMEs Success Stories (RoyalSelangor.com) Highlight: • E-Commerce Type (B2C & B2B) Pewter products • Went on-line early 1999, website build in-house • Offer few hundred products. Price average US$30 – US$1,500 • 70% of customers from North America and Europe • Awarded “Intelligent 20 Awards 2000” 61
  • SMEs Success Stories (smarttransact.com) Highlight: • One Stop powerhouse for E- Commerce solutions: providing a complete set of software, infrastructure and services. • Established in 1999 with 3 staff and has grown to 130 staff (March 2001) • Recorded revenue of US$3 million (US$ 1 million profit) – March 2001 • 95% of revenue came from overseas • Clientele spread worldwide including Ireland, U.S and Hong Kong • “Internet Company of the Year” – 62 Malaysia Internet Awards 2000
  • SMEs Success Stories (watchesplanet.com) Highlight: • Malaysian watch e-tailer (B2C) Watches are Duty-Free items • Started in 1998 with a capital of US$65,800, Year 2000 sales was US$1.1million. • Offers over 5,000 watches from 60 brands. Price average US$100 – US$2,000 • 75% customers from North America 63
  • Home Grown B2B On-line Exchanges Some of the b2b online exchanges that have sprung up in Malaysia:Developed by a United Engineers (M) Bhd subsidiaryCONSTRUCTION EXCHANGE Combination of 3 vertical portals: KWX.Asia.com IdeasAsia.com InvestmentBankAsia.com STATIONERY EXCHANGE FOR BANKS AND FINANCIAL INSTITUTIONS 500 local manufacturers are members Launched by XYBASE E-Business For Airport Community Rubber-products-based exchange 64
  • AGENDA ICT: Technology Adoption And Progression Global Trends And Development - Implications for Malaysia ICT, E-Business And E-commerce - Addressing Strategic Issues for Malaysia Is Malaysia e-Ready?, and what are the challenges? Public & Private Sector Initiatives Growing Market for E-Commerce in Malaysia Closing Remarks 65
  • Total E-Commerce Revenue Growth for Malaysia (1997 – 2005) eCommerce Revenue continue to grow US$383.5 million in 2000 to US$9.4 billion in 2005 10,000 US$9.4b 9,000 8,000 7,000US$million 6,000 5,000 4,000 3,000 2,000 US$383.5m 1,000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 66 Source: IDC Internet Commerce Market Model, IDC 2001
  • Estimated Revenue Growth for b2c and b2b in MalaysiaIt is forecasted that b2b will have bigger market sharee.g. E-procurement project will grow b2b transactions 10,000 9,000 8,000 7,000 b2c b2b US$million 6,000 5,000 4,000 3,000 2,000 1,000 0 2000 2001 2002 2003 2004 2005 67 Source: IDC Internet Commerce Market Model, IDC 2001
  • AGENDA ICT: Technology Adoption And Progression Global Trends And Development - Implications for Malaysia ICT, E-Business And E-commerce - Addressing Strategic Issues for Malaysia Is Malaysia e-Ready?, and what are the challenges? Public & Private Sector Initiatives Growing Market for E-Commerce in Malaysia Closing Remarks 68
  • CLOSING REMARKS1. Recognise that E-Commerce will transform the national economic landscape and the emergence of new breed of companies providing services in the e-space.2. The borderless nature of E-Commerce will increase Malaysia‟s exposure to the impacts of liberalisation and globalisation and it is imperative for Malaysia to be e-ready.3. The need to focus and develop skills in knowledge intensive areas required by local and global markets. 69
  • Terima Kasihsuhaimi@mdc.com.my 70