Multimedia Super Corridor (MSC) Malaysia

www.mscmalaysia.my   www.mdec.com.my The Multimedia Super Corridor (MSC Malaysia) was established in 1996 with the aspiration of becoming a global hub for ICT and multimedia innovation, operation and services and to transform Malaysia into a knowledge-economy and achieve developed nation status in line with Vision 2020. BASELINE PERFORMANCE OF MSC MALAYSIA (1996-2007) Progress To-date The number of MSC status companies, including Institutes of Higher Learning (IHLs) and Incubators has increased from 94 in 1997 to approximately 2,000 in 2007. Of these, roughly 1,500 companies are still in operation.   From 2002 to 2007, the total sales revenue of MSC status companies increased 32% from RM4.4 Bn to RM17.5 Bn   In the same period, employment in MSC status companies also rose 32% from a total of 17,700 employees to 67,700 employees in 2007. Out of these employees, 93% were classified as knowledge-workers (k-workers) who possess at least a degree qualification. In addition, 93% of the k-workers in MSC Malaysia were Malaysian while the rest were foreigners   R&D spending by MSC status companies increased fivefold from RM258 Mn in 2002 to RM1,371 Mn in 2007. The number of cumulative IP registrations also increased from 230 in 2003 to 2,574 in 2007   Four key flagship applications were launched, namely E-goverment, MyKad, Smart School and Telehealth.   The three other flagship applications – i.e., R&D cluster, E-business and Technopreneur Development were also launched but have since evolved into a set of initiatives targeted at developing critical enablers to develop the ICT industry and promote adoption of ICT in other business sectors. MSC Malaysia Milestones Phase I (1996-2004)  Target Milestones Achievements to-date 1 corridor A 15 x 50 km2 corridor ranging from KLCC to KLIA, including Cyberjaya and Putrajaya was created 50 world class local companies 742 companies, including 10 strong performers and 50 foreign and local MNCs were awarded MSC status Launch 7 flagship applications All 7 flagship applications were launched before the end of Phase I World leading framework of cyberlaws Comprehensive set of cyberlaws were enacted. However, cyberlaws targeted at increasing e-commerce adoption such as the Personal Data Protection Act are still pending Cyberjaya as world-leading intelligent city with balanced and environmentally-sensitive development plan Investments in Cyberjaya were focused on physical infrastructure while the development of social infrastructure was not at the same pace Phase II (2004-2010) Target milestones  Achievements to-date Web of corridors 7 Cybercities and 8 Cybercentres (KL, Perak, Johor and Melaka) have been rolled out while the eastern and southern corridors are still undergoing development 3,750 MSC Malaysia status including 250 MSC Malaysia global companies By end 2007, 1,482 MSC status companies were operational while 428 were inactive. Of the operational companies, 17 are Strong Performers and 84 are MNCs Enhance current flagships and introduce new ones to improve national competitiveness Flagship applications that were launched have yet to realize their full potential. Besides new projects to improve the e-Government service delivery, there have been no new flagships Leadership towards harmonized global framework of cyberlaws ICT-related laws (especially IP-protection rights) have yet to be adequately enforced Enhance local ICT industry and catalyse competitive cluster of potential world class local companies By end 2007, MSC Malaysia had approximately 1,100 local companies (including 17 Strong Performers), with a total GDP contribution of approximately 0.6% in 2007 Link to world leading intelligent cities High speed link connectivity to Japan, Europe, Asia Pacific and US is now available with approximate outbound bandwidth at 27Gbps and further improvements planned *   Sourced from Study on the Economic Impact of MSC Malaysia by EPU - 2009