Country Profile: Malaysia

Country Profile: Malaysia

The MSC : Narrowing the digital divide.

Conceptualized and created in 1996, the Multimedia Super
Corridor (MSC) is a national project by the Malaysian government
designed to propel Malaysia into a knowledge-based society
through the innovative use of information and communications
technology (ICT).

As one of the key engines of growth, the MSC will help drive
Malaysia to achieve its vision of becoming a fully developed
nation by the year 2020.

The Multimedia Super Corridor (MSC) aims to achieve its goals
by revolutionizing how Malaysians and others in the region
conduct business.

Located at the hub of Asia's fastest-growing markets, the
central MSC corridor occupies a 15 km by 50 km corridor governed
by groundbreaking Cyberlaws, policies and practices that enable
operating companies to harness the full potential of ICT and
multimedia. Its goal is to provide an ideal multimedia
environment that attracts topflight Malaysian and international
IT and multimedia companies, or those that have the potential to
become world-class over time. The MSC is also a model of how ICT
can provide a better quality of life for citizens.

In January 2005, the MSC began its national roll-out by
expanding to the newly conferred MSC Cybercity in Bayan Lepas,
Penang. This will soon be extended to Kulim High Tech Park in
Kedah and other states such as Perak and Melaka. It is envisaged
that by the year 2020, every state in Malaysia will have a
designated MSC Cybercity forming a network with Cyberjaya in the
pilot MSC area as its nucleus.

The MSC has also become the regional launch site for companies
developing or using leading multimedia technology, allowing these
innovators to harness Malaysia's unique competitive advantages
that arise from its multicultural links, committed leadership,
and proven track record in developing products and services for
the regional and global markets.

MSC milestones

To date, there are more than 1,200 local and foreign companies
as well as universities under the banner of the MSC. These
establishments have achieved the highly-regarded and sought-after
MSC-status certification that provides a number of incentives
with the backing of the government. Currently, a number of MSC-
status companies have been successfully listed on the Malaysian
stock exchange and are exporting their products and services
worldwide.

Managing the growth of the MSC is the Multimedia Development
Corporation (MDC). MDC attracts foreign investment, nurtures
local ICT companies and develops the MSC's infrastructure and
cyberlaws. In partnership with other ministries, government
agencies and private companies, MDC has created a number of
applications such as MyKad, Smart School, Telehealth, e-
Government and e-Business.

R&D grant scheme

The MSC R&D Grant Scheme, or MGS, was intended to realize the
MSC into becoming the global hub and preferred location for
innovative global R&D centers. It is divided into two major
programs with one desired goal. The two programs are the
Strategic Thrust Areas In Research (STAR), a global program and
MSC R&D Grant Schemes(MGS), a domestic program, which are aimed
at creating multifarious R&D projects and technoprenuers of
diverse industries, develop R&D capabilities of MSC companies and
also to produce pools of talented researchers. Through the MGS,
MSC anticipates the employment of capable home-grown researchers,
the transfer of R&D methodologies and expertise and collaboration
between industries and IHLs, which will then lead to further
product development, innovation and commercialization.

The MSC next leap

The first seven years of the MSC were focused on developing
the foundation for a socio-economic transformation in Malaysia
through ICT. The second stage of its development is the "MSC Next
Leap" which will place greater emphasis on ICT as an enabler of a
better quality of life -- an access for each and every Malaysian
to better education, health care and social opportunities without
marginalizing anyone.

The MSC Next Leap will cover the period between 2004 and 2010
and aims to promote innovation as a cornerstone of Malaysia's
standing in social and economic development and is intended to
narrow the digital divide.

With the national roll-out ready to commence, several MSC
cybercities and cybercentres will be set up and are expected to
stimulate the ICT agenda throughout the country while not
excluding any sector of the nation's economy. By 2010, the MSC
aims to attract 250 global companies from both local and foreign
multinationals.

To enhance the quality of the nation's education system,
10,000 schools will become Smart schools with the roll out of the
pilot program. Besides the Smart Schools, all the other MSC
flagship applications, which are vehicles designed to overcome
the digital divide, will be enhanced, while new flagships will be
introduced to amplify national competitiveness and value-added
services.

The final milestone of the MSC Next Leap is to ensure that the
Malaysian corridor is linked with leading global smart
communities for mutually beneficial social and economic gains.
Essentially, the Next Leap is expected to provide Malaysians with
more innovative ways of coping with the dynamic nature of the
modern world.

Driving this bold initiative is the Multimedia Development
Corporation (MDC), a high-powered 'one-stop agency', wholly
focused on ensuring the success of the MSC and the companies
operating in it.

It markets the MSC globally, facilitates investment,
formulation of new Cyberlaws and policies, and sets standards for
the MSC's information infrastructure and urban developments. Its
mission is also to help bridge the digital divide in the country
towards achieving the objectives of Malaysia's Vision 2020.