MSC Malaysia: Contribution in the Agriculture Sector


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ICT is a tool to allow the agriculture businesses to manage information

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MSC Malaysia: Contribution in the Agriculture Sector

  1. 1. MSC MalaysiaContribution in the Agriculture Sector A P R E S E N T A T I O N B Y : Suhaimi Nordin Senior Manager, Internet Based Business Multimedia Development Corporation 6 SEPTEMBER 2007
  2. 2. Agenda Introduction ICT Adoption in Agriculture Challenges in Agriculture Benefit of ICT in Agriculture MDeC’s Agriculture related projects Conclusion
  3. 3. Malaysia’s VISION 2020Vision 2020 – a national vision of creating adeveloped nation in our own mould Characteristics of a Vision 2020 society:  Strong moral and ethical values self-regulating and self-managing empowered through information and knowledge based on the concept of the dignity of human-kind Characteristics of a Vision 2020 economy:  Robust and resilient competitive and dynamic, but with fair and equitable distribution of wealth
  4. 4. “. . . I BELIEVE THAT I.C.T.HAS THE POWER TOIMPROVE THE ECONOMICCONDITION OF, ANDQUALITY OF LIFEENJOYED BY, THEPEOPLE . . .”Opening remarks by by YAB Prime Minister, during the9th MSC International ADVISORY Panel Meeting.8 September, 2005.
  5. 5. Malaysia In TransitionENGINE OF GROWTH FOR THE K-ECONOMY Malaysia as exporter of technology Source : National Economic Action Council, Malaysia
  6. 6. MSC Malaysia Vision The 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
  7. 7. MSC Malaysia’s Contribution to Realising the National Mission 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 EconomyMSC Malaysia NationalRollout will create K-basedInfrastructure MSC Malaysia National Rollout and Flagship Applications will help reduce the income gap and the digital divide
  8. 8. MSC Malaysia Milestones & National RolloutPHASE ONE: 1996-2003 PHASE TWO: 2003-2010 PHASE THREE: 2010-2020 Successfully create Grow MSC into Transform Malaysia into the MSC a global ICT hub a Knowledge society Northern Corridor Eastern Corridor Central Corridor Cyberjaya Sabah Central Corridor Cyberjaya Southern Corridor Sarawak 1 Corridor Web of corridors All of Malaysia Comprising 5 Cybercities National Rollout comprising National Transformation enabled Cybercities and Cybercentres By MSC Malaysia environment
  9. 9. MSC Malaysia National Rollout Strategic ObjectivesWealth Creation  To develop and fast-track ICT industry in States nationwide, to contribute to:  High value jobs creation  ICT revenue and exportsQuality of Life  To extend the MSC Malaysia’s benefits and enabling environment nationwide:  Performance culture for service delivery to both industry and citizens  E-enablement of society
  10. 10. MSC Malaysia National Rollout: Partnering with States to Transform the Country MSC Malaysia National MSC Malaysia National Rollout Rollout 2004  2010 to the States is to spread MSC Malaysia’s benefits and value Northern Corridor Eastern Corridor Sabah propositions to all Malaysians by reaching out to both industryCentral Corridor Cyberjaya and the general community Southern Corridor Sarawak Transform Malaysia Into A K-Economy & Society by 2020 As ICT plays an ever increasing role inMalaysians’ economic and social lives, we cannot leave anyone behind.
  11. 11. Agenda Introduction ICT Adoption in Agriculture Challenges in Agriculture Benefit of ICT in Agriculture MDeC’s Agriculture related projects Conclusion
  12. 12. MSC ICT/E-Commerce Strategic Direction Study In 1997, The Inter Agency Task Force on E Commerce (IAFTEC) was established reporting to the National E-Commerce Committee (NECC) with the aim to evolve a national strategy for a competitive Electronic Commerce/ICT environment in Malaysia. Under the Electronic Commerce Strategic Direction II (SD2) for Malaysia, a study on the 5 identified sectors with low ICT uptake were undertaken in 2004.
  13. 13. E-Commerce Focused Sectors Based on the SD2 study, the Agriculture sector focuses on the following:- 1. Creating and improving the Supply Chain Management 2. Creating a community development programme 3. Creating a registry of agriculture products with traceability features 4. Creating a value-added services specifically tailored to modern farmers
  14. 14. ICT Uptake in Agriculture Level of E-Commerce by Sector 90 High Medium Low 80 70 % of Respondents 60 50 40 30 20 10 0 Agriculture Construction Manufacturing Retail TourismSource: Frost & Sullivan 2003The Agriculture sector has the lowest level of E-Commerce whilst the highest level of e-enablementwas demonstrated by the Tourism sector.
  15. 15. Productivity in Agriculture Growth in Agricultural Land, Labour and Capital • Intensive and Productivity 1991 - 2000 (%) integrated farming • Better farm 12.00 management 10.00 8.00 practices. 6.00 • Usage of labour 4.00 2.00 saving technology 0.00 Capital Productivity Land Productivity Labour Productivity -2.00 • Slow adoption of -4.00 -6.00 technology by small -8.00 farmers. -10.00 • Reduced in privateSource: NPC Productivity Report 2001. investment due to the Economic crisis of 1987 and 1997
  16. 16. Factors Promoting ICT in Agriculture Reduced Cost Improved reliability Increased awareness Ease of operability & Integration Government incentives Competition pressure Better training Reducing cost, increasing Global trends awareness and improvingTrading partners using the applications reliability is the most ROI effective way to increase Demand by business strategy E-Commerce usage in the Enhanced security Agriculture sector. Senior Management involvement 0 5 10 15 20 25 Source: Frost & Sullivan 2003 RELATIVE IMPORTANCE
  17. 17. ICT in AgricultureICT as tools to facilitate local and globalagricultural surveillance: • Better agricultural methods • Faster contacts with consumer & providers • Up-to-date information • Central registry • Decision Tools • Food Safety
  18. 18. Value PropositionKey Objectives with ICT Will assist in the objectives of:1. Allows for efficient dynamic  Encouraging modern farming capturing and detailed to increase productivity & analysis of strategic quality; agriculture information for better planning and  Increasing income of our forecasting of agriculture farmers; produce;  Malaysia to be an exporter2. Provide better access to of quality agricultural market demand and produce; agriculture know-how and  Increases sector contribution best practices; to3. Bring farmers closer to national income and export retailers and international earnings. markets.
  19. 19. Agenda Introduction ICT Adoption in Agriculture Challenges in Agriculture Benefit of ICT in Agriculture MDeC’s Agriculture related projects Conclusion
  20. 20. Challenges In Agriculture1. The impact of globalisation towards agriculture:  Only the lowest-cost producers can make money from their products  Producers have to be sensitive to market demands and trends  Specialisation and value-add are the key to profitability2. Consumers are becoming very demanding:  The safety of food products has to be proven  Purchasers are looking for extra information
  21. 21. Consumer Demands Key Areas of Consumer Needs and Preferences QUALITY is crucial in the demand of Consumers multiple dimensions
  22. 22. Agenda Introduction ICT Adoption in Agriculture Challenges in Agriculture Benefit of ICT in Agriculture MDeC’s Agriculture related projects Conclusion
  23. 23. Benefit: E-Commerce Usage Overall Benefits Experienced as a Result of E-Commerce Usage Enhanced Customer Relations Increased Productivity Improved Revenue Reduced Cost Improved Competitiveness Enhanced Employee Relations 0% 10% 20% 30% 40% 50% 60% 70% 80%Source: Frost & Sullivan 2003 Enhancing customer relations, increasing productivity and improved revenue are the most important benefits experienced in the Agriculture sector as a result of E-Commerce usage.
  24. 24. Benefit: Value Food Chain• Development, validation and harmonisation of technologies and methodologies in good farming methods• Registry of data capture throughout the food chain• Increase consumer confidence in food products
  25. 25. Agenda Introduction ICT Adoption in Agriculture Challenges in Agriculture Benefit of ICT in Agriculture MDeC’s Agriculture related projects Conclusion
  26. 26. Information is key It is information which can add value towards the agriculture business  ICT is just a tool to allow the agriculture businesses to manage information Information is the key to:  Improved efficiency and productivity of farming  Knowledge and responsiveness to market demands  Differentiation from commodity products  Assuring and demonstrating food safety  Communicating high-value features to consumers
  27. 27. Catalyst for ICT agriculture adoption
  28. 28. MDeC’s Agriculture related projects 1. ECR-CIR Efficient Consumer Response – Central Item Registry 2. 3. MSC Malaysia Flagship: Smart Card 4. Food Traceability
  29. 29. MDeC’s Agriculture related projects ECR-CIR Project Description
  30. 30. ECR-CIREfficient Consumer Response – Central Item Registry 1. Raise the level of productivity by reducing transactional errors and improving data accuracy and customer service 2. Conform to global standards and participation in global retailing 3. Increase visibility and competitiveness in export markets
  31. 31. ECR-CIREfficient Consumer Response – Central Item Registry Central Item Registry is an electronic catalogue for the retail industry that contains information of a product, description, item number, brand name, dimensions, image and other details that form the database of the product.
  32. 32. Data Synchronisation and Global Item Registry Initiatives GS1, BELGIUM/LUXEMBOURG GS1, UKGS1, CANADA GS1 KOREA GS1, HONG KONG GS1, U.S.A. GS1, SINGAPORE GS1, AUSTRALIA
  33. 33. MDeC’s Agriculture related projects Project Description
  34. 34. MOA Initiatives Market trends and fulfillment relationships Agrolink,, SDVI, MARDI, etc Upload GS1 for retailers’ usage and download info for internal useLarge farmers FarmersDirect Farmer Associations  Repository of farming Farmers produce based on GS1 Download GS1 E.g. NAFAS, standards; for internal use LPP. Agencies within  Features of food Trading transactions Retailers MOAABI traceability; Farmers E.g. FAMA, LKIM,  E-Trade Facilitation Export • E-procurement Markets • E-Stock • E-Payment Farmers AgriBazaar • E-Logistics Trading transactions Direct Exports Farmers Wholesalers Towards improving the agriculture Buyers supply chain management
  35. 35. MDeC’s Agriculture related projects MSC Malaysia Flagship Smart Card
  36. 36. MSC Malaysia Smart Card Flagship: Reaching out to the PeopleMyKad significantly improved 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  Reduce 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)
  37. 37. MSC Malaysia Smart Card Flagship: Reaching out to the PeopleCommunity Content Impact on CommunitymTr@ders Pasar Tani Traderse-Nelayan Fishermene-Farm Farmer & Farmer Co-opVessel Secure Ferry & Vessel PassengersIMR Citizense-District Citizense-PAID Muslim Communitye-Masjid Network Muslim Communitye-Resort TouristCelik IT Villagerse-Library Students
  38. 38. MDeC’s Agriculture related projects Food Traceability Project Description
  39. 39. Defining TraceabilityThe European Union definition of traceability: The ability to trace and follow a food, feed, food-producing animal or substance intended to be or expected to be incorporated into a food or feed through all stages of production and distribution – EU Regulation-178/2002
  40. 40. Unique Identification Food operators Identification – the Food Food production key to traceability consignments Unique standardised ISO-based Inspection numbering should be applied Contact unique records and along the food chain. material identification certificatescategories This makes traceability numbering important to global food business as it is actually Vehicles Contact material Transport necessary to continue consignments monitor from raw materials to Food final products. Storage FROM FARM-TO-TABLE
  41. 41. Agenda Introduction ICT Adoption in Agriculture Challenges in Agriculture Benefit of ICT in Agriculture MDeC’s Agriculture related projects Conclusion
  42. 42. ConclusionBringing ICT to farmers1. Increase productivity through automation of farming techniques2. Increase profitability through an efficient supply chain3. Opening of global market potentialFrom the above factors, the following can be achieved: – Better farming techniques – Experience of growth and profitability – Network effect of adoption within communities and supply chains – Global market outlook
  43. 43. Thank you
  44. 44. MSC Malaysia:Contribution in theAgriculture Sector6 S E P T E M B E R 2 0 0 7 A P R E S E N T A T I O N B Y : Suhaimi Nordin Senior Manager, Internet Based Business Multimedia Development Corporation