MSC, a revolutionary step for IT development

The Multimedia Super Corridor (MSC) aims to revolutionize how Malaysians and others in the region conduct business.

Located at the bud of Asia's fastest growing markets, the MSC occupies a 15-kilometer by 50-km corridor governed by groundbreaking Cyberlaws, policies and practices that enable operating companies to harness the full potential of Information Communications Technology 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 has 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 regional and global markets.

As of July 6, 2001, a total of 527 companies have been granted the MSC-Status of which 43 are international world-class companies such as NTT, Fujitsu, IBM, Sun Microsystems, Microsoft, Oracle, Ericsson, Nokia and Siemens.

The MSC aims to attract at least 50 international world-class companies by the year 2003.

The MSC-Status companies are involved in various sectors of the Information Communication Technology (ICT) industry such as web development, e-commerce, application service providers (ASP), content development, telecommunications, education and training, security, system integration, networking and software development.

Foreign companies with MSC-Status constitute around 34 percent of the total MSC-Status companies with the majority coming from Europe, the U.S. and other Asian countries.

In tandem with the country's Vision 2020, the MSC is actively promoting the development of a Malaysian knowledge society as well as the development and growth of local small and medium enterprises (SMEs).

As a result of these efforts, the number of Malaysian companies constitutes the majority of 66 percent of the MSC- Status companies.

The MSC is equipped with a world-class physical and information infrastructure, and its boundary extends from the Petronas Twin Towers at the Kuala Lumpur City Center in the north to the new world-class Kuala Lumpur International Airport in the south. It is also an integrated logistics hub with rapid rail links to Kuala Lumpur, a smart highway system.

The MSC is supported by a world-class high capacity global telecommunications and logistics network built on a 2.5 gigabits to 10 gigabits digital fiber optic backbone.

To spur the growth and development of the high value creative multimedia industry, the MSC launched the E-Village in September 2000.

This latest development and initiative will propel the MSC to become a regional hub for media and content development through the provision of state-of-the-art film and sound studios, digital animation studios, training and support facilities for film- making and content development.

Apart from its success in providing a world-class infrastructure, information network and attracting some of the best ICT companies in the world, the MSC has also created and inspired a tremendous growth in the awareness and adoption of ICT in Malaysian society.

The MSC has created new knowledge-based employment opportunities at a rate of 2,000 new jobs per year since 1996 and is projected to provide 35,000 new jobs by 2005 at the current rate of progress of the MSC.

To fill up these new job positions, the MSC has encouraged the growth of institutions of higher learning (IHLs) and this has tremendous impact on the group enrollment ratio (GER) -- for the 18 to 21-year-olds entering tertiary education.

The number of IHL has increased from 170 in 1996 to 623 in 2000. The GER has also increased from 13 percent to 22 percent over the same period.

The number of Malaysian students graduating in ICT related subjects has also grown rapidly and contributing to a steady increase in the number of knowledge workers for the ICT sector.

Another major impact of the MSC is the growth of personal computer (PC) penetration from 880,000 in 1996 to 2.2 million in 2000. The number of Internet subscribers' growth is even more rapid from 90,000 in 1996 to 1.68 million in 2000.

These substantial growths are indicators of Malaysia's quest to become a knowledge society as envisioned in the country's Vision 2020.

To further drive the development and growth of the MSC, seven MSC Flagship Application were launched. They are the Electronic Government, Multipurpose Card, Smart Schools, Telehealth, R&D Cluster, Borderless Marketing and World Wide Manufacturing Web.

Together, these Flagship Applications will jump start the development of MSC, provide business opportunities for ICT companies especially Malaysian ICT SMEs and to spearhead the transformation of Malaysian society into a knowledge society.

The nurturing and development of Malaysian SMEs in the ICT sector plays a pivotal role in the eventual and long-term success of the MSC.

The critical ingredients identified to spawn Malaysian ICT technopreneurs are a national incubator network headed by the MSG Central Incubator, venture capital financing, R&D grant, human resource development, and international market access and networking where MDC ACCESS is leading the efforts to promote and champion young Malaysian ICT companies.

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, formulates new Cyberlaws and policies, and sets standards for the MSC's information infrastructure and urban development.