INFORMATION TECHNOLOGY STRATEGY AND POLICY IN MALAYSIA

7 July, 2000

Background

Computers in Malaysia were introduced in the workplace in the 1960s, but it was not until 1980s that the country began wide-scale application of IT. The first computer systems for the public sector were introduced in sixties for the accounting and payroll systems implemented in the National Electricity Board in 1965. This was followed the by Inland Revenue Department in 1966 for processing statistical information, the Examination Syndicate, Ministry of Education and the Statistics Department. In 1967, the Computer Society Malaysia was formed, which later on became a professional body and renamed the Malaysian National Computer Confederation (MNCC) in 1989.

The eighties saw major structural and infra-structural changes taking place. The first public network, MAYPAC, was implemented by Telecom Malaysia., the Science and Technology Policy was formulated in 1986 followed in 1988 by the Computerization Guideline Manual of MAMPU (Management and Manpower Planning Unit).

In the early and middle 1990s, the new technologies and tools related to information technology. In 1990, the National Industrial Technology Action Plan (MOSTE) identifies that microelectronics and IT must attain a high level of competence.

The National IT Council (NITC) was formed in 1994 as a think-tank and advisor to the Government on IT development. It is a high-powered committee chaired by the Prime Minister, with the Deputy PM, relevant Cabinet Ministers, top Corporate chiefs, and the Chief Secretary to the Nation as members. The use of IT generally focuses on individual agencies effort in modernizing the administration including finance, project management, inventory control, and counter services, education and training, and information provision for public, researchers, business consumption.

Today the mega projects, the Multimedia Super Corridor (MSC) and the Electronic Government (EG) have introduced to implement. MSC and Electronic Government provide an integrated to guide the country towards becoming a fully industrialized, developed nation and to drive Malaysia towards becoming a global competitor for the next millennium.

Information Technology Sales Product

Information technology is changing the world where development countries struggle for economic survival and growth (Munasinghe et. al., 1985). The information technology can affect the central social and economic functions of an interdependent world economy. How the developing countries manage the information technology driven process of change will influence the economic goal and determine the benefit. Therefore the processes require systematic consideration when national information technology policy is formed and implemented.

Information Technology in Malaysia, progresses steadily beginning from the mid 1990s. The market for IT products for 1990 achieving more than US$770 million and increasing up to 30% in 1991. This figure is above per capita expenditure for developing country standards.

Firm strategy

IT Infrastructure in Malaysia is well developed to be able to support R&D, communicate knowledge and information enhancing service support to both public and businesses. Private organizations like Telekom Malaysia,MIMOS, and GITN providing the necessary infrastructure support.

(i) Telekom Malaysia

The Corporate Information Superhighway (COINS) is Telekom Malaysia's network system, a nationwide multimedia network infrastructure a fiber-optic based, globally and nationally connected, broadband communications network which supports multimedia applications, network computing and electronic voice and data communications. A communications backbone that supports MSC, for the purpose of attracting the world's advanced, high tech R&D

(ii) Mimos Bhd

The Joint Advanced Research Integrated Networking (JARING) is a project by MIMOS that offers access to the Internet for information exchanges and database development, supporting creative and innovative educational and R&D activities and communication through e-mail

(iii) GITN Sdn Bhd

The Government Integrated Telecommunications Network (GITN) is a communications and IT infrastructure to facilitate electronic delivery of information and services, intra and inter-Government agencies. GITN Sdn Bhd is currently offering its nation-wide Wide Area Network (WAN) services and computer resources to Government agencies, which include hardware, software, databases, applications, data and warehousing facilities, common service applications (e.g. office systems), management services and consultancy.

Government Policy

Initiatives to have a policy on IT have been carried out since the 1970s. A Steering Committee on National Information Technology Policy (DTMN) was formed in 1989 to coordinate the formulation of an IT policy. Not until 1994 when the NITC was formed, that a more serious effort was made towards a policy creation. NITC initiated the process of formulating a national IT plan and identifying key programmers that will contribute to the transformation of Malaysian society into a knowledge-based society. The need for a clear IT roadmap is also due to the challenge of creating an information literate society, that will enhance national socio-economic planning and development, as stated by the National Vision 2020, and the emergence of the Multimedia Super Corridor and its flagship applications.

In 1997, an integrated direction was outlined in the National Information Technology Agenda (NITA). The objective of NITA is to shape a Malaysian civil society that uses information, knowledgeable and apply proper value systems.

Electronic Government Policy

The Electronic Government Information Technology Policy and Standards (EGIT) provides an overview of each technology for EG and states government policy about the specified technologies. Its also provides a list of current standards to be considered in designing new systems solutions to ensure the coordination, compatibility across all present and future EG applications.

Multimedia Super Corridor

The objectives of MSC is to transform Malaysia into a regional and global leader in IT development and applications (Multimedia Development Center; MDC, 1997). MSC to be a potential engine growth for Malaysia’s IT industry (Francis, 1998).

Far away from the metropolitan city, Kuala Lumpur, 50 km long by 15 km wide give the best physical and information infrastructures. Linking from KL Tower and KLCC Petronas Twin Towers in the north, Kuala Lumpur International Airport in the south, the "intelligent city" Cyberjaya in the west and Multimedia university in the east.

Putrajaya, the new administrative capital, with modern information infrastructure and will be the new electronic government administrative center, Cyberjaya, an intelligent city; provide top quality intelligent buildings, multimedia enterprise estates, residential housing, hotels and leisure facilities that can support a working population of 150,000 and a residential population of 100,000 and fiber optic backbone of 2.5 to 10 Gbit/sec are the asset for paradigm shift in economic development. To achieves this mission, electronic business have been identified to attract world class multimedia systems and software companies. The types of companies invited to the MSC are computer hardware and software vendors, system integrators, R&D organizations and relevant high-tech service providers.

Eligibility criteria for a company wishing to operate within the MSC are directly involved in multimedia development, employ a highly skilled workforce and be willing to collaborate with other companies in R&D. Special incentives for world class companies involves in MSC are tax free pioneer status for 10 years, tax exemption for all multimedia equipment, special incentives for companies whose presence attracts other companies.

MSC has come up with Multimedia Bill of Guarantees which provides protection from theft of intellectual property rights, breakdown of hard and soft infrastructures, censorship and corporate ownership, framework of societal and commerce-enabling cyber laws on copyrights.

Five-year development master plans

Malaysia is a nation whose growth has been carefully shaped and guided by strategic five-year development master plans. Currently, the Seventh Malaysia Plan or 7MP, 1996-2000 (Economic Planning Unit; EPU, 1996), shows a shift from an input-driven to a productivity-driven strategy incorporating the contribution of total factor productivity (TFP) arising from the introduction of new technology, innovation and enhancement of IT from 28.7 percent of the GDP to 41.3 percent (EPU, 1996).

Government Education Policies

Primary and secondary schools

Education in Malaysia is not compulsory. Most children complete at least six years in primary schooling. Malaysia has close to 8,000 primary schools and 2,000 secondary schools. Education is a important investment for socio-economic development. Planned and expenditure for education in the five-years development plans in Malaysia since 1965 has increased. Budget for education in the five-year development plans in Malaysia :

Five-year development plan	1 MP	2 MP	3 MP	4 MP	5 MP	6 MP	7 MP
Percentage of total expenditure	7.8	6.9	7.3	10.1	16.1	13.4	15.1

In 1998, RM12.458 billion has been allocated for education, in which government emphasizes the development for upgrading of technology in teaching and educational techniques – use of IT in teaching and learning (Ibrahim, 1997)

Smart School is one of the seven flagship-applications of the MSC. Through the Smart Schools

, the Malaysian workforce more creative and innovative in thinking, adept a new technologies and able to access and manage the information explosions and prepare the society for the Information Age (MDC, 1997; Mohd Najib, 1998).

Institutions of Higher Learning

Changes in the University and University Colleges Act, 1971 and introduction of the Private Higher Educational Institutions Aact, 1996 will enable the private sector to play a great role in the tertiary education (Sulong, 1996). These have resulted in a number of technology-based universities offering courses in multimedia, information technology, computer science, engineering and management. They include Multimedia University (MMU), University Telekom Malaysia (UniTele), Malaysia University of Science and Technology (MUST) and University Tun Abdul Razak (UNITAR).

Conclusion

Malaysia has reached the present stage in IT development to a large degree due to full commitment of its leaders. IT initiatives at the national level, of having a national vision, an IT agenda; MSC and 9^th Challenges in Vision 2020 (1991), support of private sector
organizations like Telekoms Malaysia, GITN Sdn Bhd and MIMOS Bhd.

Bibliography

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Ahmad Sarji. (1993). The Changing Civil Service: Malaysia’s Competitive Edge. Kuala Lumpur: Pelanduk Publications.

Norsaidatul Akmar.M , Harnevie. M, Valida C.A. (1999). Multimedia Super Corridor: A Journey to Excellence in Institutions of Higher Learning, London : Asean Academic Press.

Economic Planning Unit. (1996). Seventh Malaysia Plan 1996 – 2000. Kuala Lumpur: Author

MDC. (1997). Unlocking the Full Potential of Information Age. Kuala Lumpur, Malaysia

Francis, S. (1998). MSC to spur local IT growth. The Star. (14^th April 1998).p. 29

Ibrahim. A. (1997). Budget speech [WWW document]. URL : http://www.jaring.my/msia/newhp/speech98/bs.htm

Sulong, W. (1996, May 7). 7^th Malaysia Plan - All set for the 21^st Century. The Star [WWW document] URL : http://thestar.com.my/achieves/7plan/gthll.html

Report of an Ad Hoc Panel on the Use of Microcomputers for Developing Countries. (1992). Policy Issues in Microcomputer Applications for Developing Countries.Westview Press.

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