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Multimedia Super Corridor (MSC), a revolutionary step

| Source: JP

Multimedia Super Corridor (MSC), a revolutionary step
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.

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