The Multimedia Super Corridor

Published Date: 02 Nov 2017

Introduction

In order to compete in the modern world, a country need to change it political dynamics and the economics in order to succeed. Some time, after Malaysia has achieve their independence, government has initiated series of projects to drive the country towards achieving vision 2020. Malaysian 4th Prime Minister Mahathir Mohamad officially inaugurate The Multimedia Super Corridor on 12 February 1996. Since then, our nation’s transformation towards a knowledge-based society has been lead by MSC for almost 17 years. MSC has become our gateway to ICT industry in the region and Malaysia. Multimedia Super Corridor (MSC) is an initiative designed by the Malaysia’s governments. MSC projects is fully supported by the Malaysian Government.

1.1.0 MSC Vision

MSC holds the vision to transform Malaysia’s nation into a knowledge based society. This has been implemented and seen in three phases below:

1.1.1 MSC 1st Phase (1996 to 2004)

This is the year where MSC was introduced and created, MSC also successfully surpassing all the milestone that was set during phase 1.

1.1.2 MSC 2nd Phase (2004 to 2010)

In MSC 2nd Phase, few high intelligent cities is created and formed, these cities is known as cybercities. Cyberlaw that is par with global standard was created. Series of web that hold the same corridors concept was establish as well.

1.1.3 MSC 3rd Phase (2010 to 2020)

In this phase, MSC has versioned Malaysia to transform into a knowledge-based society. More intelligent cities will be linked and a Cybercourt will be formed as well.

2.0 Knowledge-Based Society

Knowledge-based society is a society who posses community of many professional individuals. These professional individuals are consist of engineer, researchers, technician and also scholars. Beside owning many professional individuals, research and development play s it’s part too. A knowledge based society cannot exist if continues researching and developing high technology service and products is not available.

MSC initiative has driven Malaysia toward a knowledge-based society. Malaysia citizen has responded positively since MSC project was implemented on1996. MSC plays a very important role in this transformation and has directly and indirectly by its contribution. There are several projects and programs that has been implemented to helps MSC Malaysia realizing it role to transform our nation to a knowledge-based society. Those initiatives are:

Multimedia Development Cooperation (MdeC)

E-Government 7 Flagship Application

Other Programs under MSC

Pre-seed Fund programs

Undergraduate Apprenticeship and Development Program (UGRAD)

MSC Malaysia Industry-Academia Collaborations

MSC Malaysia MyUniAlliance Programme

MSC Malaysia Graduate Trainee Programme (GTP)

MSC Malaysia MyProCert

3.0 Multimedia Development Cooperation (MDeC)

The Multimedia Development Cooperation, known as MDC previously holds the responsibility in managing the MSC Malaysia. To oversee the development of MSC, The Multimedia Development Corporation ( MDec) was created. According to www.mdec.my, MDeC holds the vision of:

"To realize Malaysia as a global hub and preferred location for ICT and multimedia innovations,

services and operation."

And their vision is :

"Leadership in the information Age"

MDeC aims to attract world-class and leading-edge companies to facilitate wealth creation and knowledge transfer. MDeC continuously ensures MSC’s Bill of Guarantees is always followed and implemented. MDec also actively assisting Malaysia Government in monitoring, updating Cyber-laws and formulate policies for MSC Malaysia.

3.1.0 MSC Malaysia Status

ICT Companies and ICT-facilitated business that enhance their services and products through the use of multimedia technologies has the chance to gain the MSC Malaysia status. Once a company or business is entitled with MSC Malaysia Status, they will be known as a world-class service and it will be a mark of their achievements. This status is recognize by MDeC and the Government of Malaysia.

According to www.mdec.my, business entities that are qualified are:

Institutions of Higher Learning

Incubators

Private limited companies

Besides being entitled and recognized as a world-class service provider standard, these ICT companies and ICT-facilitated business also gain advantage of the following :

Bill of Guarantees

Cyber laws

Infrastructure

Incentives

3.2.0 MSC Malaysia Bill of Guarantees

Once an ICT companies or ICT-facilitated business is granted with MSC Status it will be committed with MSC Malaysia’s Bill of Guarantees. MSC Malaysia’s Bill of Guarantees is listed down at www.mscmalaysia.my, there are:

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 Malaysia status from local ownership requirements.

Give the freedom to source capital globally for MSC Malaysia infrastructure, and the right to

Provide competitive financial incentives, including pioneer status which gives 100% tax exemption for up to 10 years or an Investment Tax Allowance for up to 5 years, and no duties on import of multimedia equipment.

Become a regional leader in intellectual property protection and cyberlaws.

Ensure no Internet censorship.

Provide globally competitive telecommunications tariffs.

Tender key MSC Malaysia infrastructure contracts to leading companies willing to use the MSC Malaysia as their regional hub.

Provide an effective one-stop agency - MDeC.

3.3.0 Cyber Laws

MSC Status Company are protected by cyber law, Malaysia government is committed to enforcing these cyber laws under the MSC Malaysia Bill of Guarantees. Existence of these cyber laws establish an ideal ICT and multimedia environment. One of the cyber laws is ‘Intellectual Property Protection’. According to www.mscmalaysia.my, Intellectual Property Protection consist of the following:

Cyber laws

Digital Signature Act 1997 (Effective 1 November 2001)

Communications & Multimedia Act 1998 (Effective 1 April 1999)

Malaysian Communications & Multimedia Commission Act 1998 (Effective 1 November 1998)

Copyright (Amendment) Act 1997 (Effective 1 April 1999)

Telemedicine Act 1997 (Not yet enforced)

Computer Crimes Act 1997 (Effective 1 June 2000)

Electronic Commerce Act 2006 (Effective 19 October 2006)

Electronic Government Activities Act 2007 (Effective 1 January 2008)

Pending Initiatives

More information about the Cyber Laws can be found at www.msc.com.my/cyberlaws

3.4.0 MSC Infrastructure

There are total of 26 Cybercentres and Cybercities that is fully operational within Malaysia as in July 2011. These location are:

1

Cyberjaya

14

Wisma Hamzah Kwong Hing, KL

2

Technology Park Malaysia

15

Puchong Financial & Corporate Centre, Selangor

3

UPM-MTDC

16

Mid Valley City, KL

4

KLCC, KL

17

Jaya 33, PJ, Selangor

5

1-First Avenue, Bandar Utama, KL

18

Menara KL, KL

6

Tower 5, Avenue 5, Bangsar South City, KL

19

Kulim Hi-Tech Park, Kedah

7

The Intermark, KL

20

Menara Worldwide, Shah Alam, Selangor

8

Quill 9, PJ, Selangor

21

Putra Square, Pahang

9

Penang Cybercity 1, Penang

22

Symphony House, Selangor

10

Meru Raya, Perak

23

G Tower, KL

11

Melaka International Trade Centre, Melaka

24

Spansion, Penang

12

I-City, Selangor

25

TM Annexe 1& 2, Menara TM, KL

13

Menara MSC Cyberport Johor

26

KL Sentral, KL Central

These Cybercities and Cybercentres has their standards set and audited by the Multimedia Development Corporation (MDeC). This is to ensures there Cynercities applied the latest intelligent cities standards is up to date.

To meet international standards in terms of reliability, pricing and capacity, MSC infrastructure is designed and supported by high capacity digital infrastructure. According to www.mscmalaysia.my, regional and global centre that links to MSC Malaysia uses the network features below:

A fibre-optic backbone with an unprecedented 2.5-10 gigabits per second capacity.

High-capacity links

Open standards, high-speed switching, and multiple protocols including Asynchronous Transfer Mode (ATM).

Best-in-class performance guarantees.

Competitive telecommunications pricing.

Integration into new transportation proje

3.5.0 Incentives

ICT companies and ICT-facilitated business also received incentives from MSC. These incentives can be categorized in both financial and non-financial. According to www.mscmalaysia.my the financial and non-financial benefits are:

3.5.1 Financial

Guided by Malaysia's Promotion of Investment Act (PIA) 1986, amended 1997, MSC Malaysia status companies, institution or faculties may enjoy the following financial incentives: Pioneer Status -100% exemption from taxable statutory income. This incentive is granted for a period of 5 years for the first round.

A 100-percent Investment Tax Allowance (ITA).

Eligibility for R&D grants (for majority Malaysian ownership MSC Malaysia-Status companies

Freedom to source capital and borrow funds globally.

Duty-free importation of multimedia equipment (DFI)

3.5.2 Non-Financial

No censorship of the Internet

Globally competitive telecommunication tariffs and services guarantees if MSC Malaysia-status companies are located within the MSC Malaysia.

World-class physical and IT infrastructure if companies are located within MSC Malaysia.

Intellectual property protection and a pioneering and comprehensive framework of cyberlaws can be enjoyed by MSC Malaysia-status companies irrespective of location.

High-powered implementation agency to act as an effective one-stop super shop - the MDeC.

High-quality planned urban developments

Excellent R&D facilities, including the region's first Multimedia University if companies are located within MSC Malaysia.

Green environment protected by strict zoning if located within MSC Malaysia.

4.0 E-Government 7 Flagship Application

Seven Innovative flagship has been introduced and implemented in MSC to achieve the objectives of vision 2020. These application serve as a purpose to kick start the MSC initiative for both entrepreneurs and consumers. The seven flagship of MSC applications are :

Electronic Government

Multipurpose Smart Card

Smart School

E-Business

Tele-Health

R & D Group

Technopreneur Development

4.1.0 Electronic Government

In MSC, E-Government is one of the seven flagship application that were introduced. E-Government seeks to provide convenience to the citizens, in the same time improving quality and accessibility interactions for businesses. It Improves the quality and speed of policy development, enforcement and improve coordination. Result of this, the government has become more responsive to the needs of its citizens.

There are seven main project under e-government applications that becomes the core of the applications. The projects are :

Project Monitoring System (PMS)

Human Resource Management Information System (HRMIS)

Generic Office Environment (GOE)

Electronic Procurement (EP)

Electronic Services (E-Services)

Electronic Labor Exchange (ELX)

E-Syariah

These online services saves time and money, resulting citizen, businesses and government itself benefits from this implementation of e-government.

4.2.0 Multipurpose Smart Card

This main purpose of this project is to provided citizens of Malaysia to possess a smart ID. This smart ID incorporates the holder’s national identity, driving license, health records, biometrics, passport and other functionality as well. This card also serve as an e-cash card whereby electronic money is stored.

4.3.0 Smart School

Smart School project is an application designed to driven Malaysia to undergo transformation from an industrial to an information-based economy. It help to prepare access to learner with self directed learning and practice facilities, It is focus on the learner individual’s self development.

4.4.0 E-Business

E-Business creates a potential market that helps economic growths. It promotes by offering an ideal environment which is suitable for ICT companies to run their business and grow.

4.5.0 Tele-Health

Tele-Health serve to provide services and products in health care, it aims to provide virtual health services and health information seamlessly.

4.6.0 R & D Group

R & D stands for research and developments. R & D group heavily focuses on multimedia technologies developments and research.

4.7.0 Technopreneur Development

Technopreneur development focuses on the growing and development of Malaysia ICT Enterprises. It emphasis and promotes these ICT Enterprises to grow and reaching world-class standards.

5.0 Other Programs under MSC

Over the years, MSC has offered several golden opportunities focused on development, as well as expanding and strengthening ICT businesses in Malaysia. Several of MSC’s well known programs are:

Pre-seed Fund programs

Undergraduate Apprenticeship and Development Program (UGRAD)

MSC Malaysia Industry-Academia Collaborations

MSC Malaysia MyUniAlliance Programme

MSC Malaysia Graduate Trainee Programme (GTP)

MSC Malaysia MyProCert

5.1.0 Pre-seed Fund programs

Through Pre-seed Fund programs, Individuals is entitled to received fund up to RM150 000 and if certain conditions is fulfilled, the pay back is waived. It is a very helpful fund for people who do not have capital in starting their business however have a good business idea based in ICT field.

5.2.0 Undergraduate Apprenticeship and Development Program (UGRAD)

During undergraduates industrial attachments, they will be placed by selected MSC Malaysia Status companies. They will receive internal training programs and undergraduates will be monitor and guided by their mentors.

Benefits that these undergraduates will obtained are:

RM500 of minimum allowances per month during the duration of internship.

Gained extra skill set and working experiences.

Participating companies will very likely to absorb and hiring the undergraduate.

More information can be obtain from : http://kdi.mscmalaysia.my/DisplayProgramme.action?p=UGRAD

5.3.0 MSC Malaysia Industry-Academia Collaborations

This program’s objective is to develop faculties members with industry relevant skill such as MySQL technologies. These individuals are mainly from faculties such as Institutions of Higher Learning. This is to ensures that these collaborations faculties trainers and properly well equip and trained. More information can be obtain from :

http://kdi.mscmalaysia.my/DisplayProgramme.action?p=IAC

5.4.0 MSC Malaysia My Uni Alliance Program

Multimedia Development Corporation (MDeC) and The Performance Management and Delivery Unit (PEMANDU) created the MSC Malaysia My Uni Alliance Program. The objective of this program is to create and meet the demand of resources required in the ICT industry. More information can be obtain from : http://kdi.mscmalaysia.my/DisplayProgramme.action?p=MUA

5.5.0 MSC Graduate Trainee Program (GTP)

The main objective of GTP is to save the cost of MSC Malaysia status companies in employee’s trainings and employment by lowering the training cost. More information can be obtain from : http://kdi.mscmalaysia.my/DisplayProgramme.action?p=GTP

5.6.0 MSC Malaysia MyProCert

This program aims to increase and upgrade the skill of Malaysian professional. Participants of this program will enjoyed discounted price in certification fees. Participating companies and individuals will also receive reimbursement if they pass the examination. More information can be obtain from : http://kdi.mscmalaysia.my/DisplayProgramme.action?p=MPCmain

5.0 Thoughts about MSC

"After almost 17 years, implementation of MSC project has reached a level that we can be proud of." I am strongly agree with this, MSC project has changed our nation in both lifestyle and economy.

Over the years, MSC has successful in attracting a lot big investors by turning Malaysia into a global hub where it has become an ideal environment for ICT and multimedia innovations, services and operation. Result of this, doing business in our country has become favorable and when it comes to the cost terms, we are able to offer a lower costs of business compared to other countries. Looking back at things before 1996 when the idea of MSC is yet born, Malaysia only have very few IT companies available. And today, we can see that there are many global IT groups and companies that has moved to Malaysia. This does not just improves the economy by creating more working opportunity, we also harness the technology that was brought together with them.

Besides that, we can also see the rapid growth of English language usage. From media to education and business sector, we can almost see English is used almost everywhere. English is the global language on the world, adopting English has created a communication bridge for us to communicate and cooperate with global investor and companies. MSC has also created a socio-economic fundamental which is very solid. Continuous effort and commitment from Malaysia Government to develop more professional has been extremely helpful. This has helps to cater the demand of the growing ICT market and also helps professional to have global standards and qualification. Programs such as MSC Malaysia MyProCert has promotes huge increase numbers of professionals in our nation. Not to mention, through the Pre-seed Fund programs it has also kick-started many business and companies.

Last but not least, MSC Malaysia has improve our nation life’s quality. Many Cybercities were build and E-Government 7 Flagship Application has certainly provides the nation and business with easy access and hence changes our way of doing things.

6.0 Suggestions for MSC

MSC is the right move for Malaysia to change it way in transformation becoming a knowledge-based society. However there are always still place that can be improve, below are the suggestion in my own opinion that it will helps to improve MSC. They are:

6.1 Better Marketing Strategy to promoting MSC development.

Actually a lot of peoples who live in rural areas have no idea and they are not clear about what actually is MSC. MSC is mostly only understand by peoples who lives urban areas or has embarked on higher education. Some of us might not even aware of the E-Government application that is available to used. A good marketing strategy should has been used, this will helps to promotes MSC’s developments. Beside awareness can be build, more opportunities and talented individuals might get discovered.

6.2 MSC Development in East Malaysia.

We have seen a lot of development and cybercities were build in West Malaysia, but how about East Malaysia? East Malaysia do not received any much attention from MSC. There are not much projects that was launch and there are 26 Cybercities available in West Malaysia but there are none in East Malaysia? East Malaysia has its own advantages in terms of natural recourses and geographical landmark. I honestly think that MSC should focus on East Malaysia and at least one Cybercities can be established there. This will create a lot of job opportunities as well as create awareness to people living in rural areas in east Malaysia.

6.3 Manufacturing and Creating Our Own Parts.

We still fail to see a lot of part and hardware being manufactured from Malaysia. Examples, a dell computer might label itself that it was assembled in Malaysia however the parts or hardware inside is made from China. One of MSC goals is to push Malaysia to become a producer of computer, however we are still at lost compared to China. More manufacturing factories for these hardware should be established, creating our own brand will benefits a lot of parties. Supplying and exporting such parts to other countries will promotes an economic growth. Besides that it will increase the job opportunities in our country. They may be some barrier in terms of cost and price war, however this can be overcome if the product that we produced is able to gain the trust of buyer in terms of quality.

6.4 Idea & Creativity Reward Programs.

It is actually a fact that we are behind a lot of countries in terms of technologies change and product development. Innovative product ideas such as IPhones and tablets are all created and started in other countries. Seems to me, Malaysia is lack of creative ideas to kick-start these high technology invention. We might have the peoples and talent required to make this to happen but what we’re lacking is the encouragement in terms of creativity. A very wild crazy idea that seems to be impossible might be possible and can be realized through proper research. There should be a reward programs created under MSC to reward those who do not have the skills however posses a good creative invention ideas. These ideas would be then used and researched under the D & R. Who knows, Malaysia might have invented the "next big thing" and we can compete with others countries.

4.0 Summary

ICT industry in Malaysia has been revolutionized by MSC Malaysia. MSC Malaysia close the technology gap and enable collaboration between local Industry and global companies. This has contributed a economic growth in our country. In order to help managing MSC, MDeC created. MDeC drive MSC Malaysia by realizing Malaysia’s goal to transform into a preferred ICT and multimedia innovations, services and operations. Opportunities was also created under programs such as pre-fund seed programs and also MyProCert. This has been very effective in helping a lot of business to start and training professionals. Incentives financial such as 5 years free of tax encourages the involvement of entrepreneurship

Malaysia now have the vision to grow thanks to MSC Malaysia. MSC has successfully helped Malaysia to become a society that is higher technology based and is pushing towards realizing the goal to become a knowledge-based society. We might be left behind by more advance country such as Silicon Valley and not in par with them, however MSC has provided a ideal platform for Malaysia Citizen to grow and explore.