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Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	THE PUTRA WORLD TRADE CENTRE, 
			KUALA LUMPUR 
Tarikh/Date 	: 	01/11/95 
Tajuk/Title  	: 	THE OFFICIAL OPENING OF THE INFOTECH 
			`95 CONFERENCE 



           Malaysia has  been  very fortunate to experience rapid
    growth in recent years.  Our continued economic  and  social
    progress  has  contributed  to  the  overall  stability  and
    prosperity of the country.

    2.    Now that we are at the threshold of the Seventh  Plan,
    the  time  is  opportune  to  review our strategies.   Their
    relevance and effectiveness in achieving national objectives
    and targets must be assessed.  This is particularly critical
    in the light of rapid technological changes, both nationally
    and internationally.

    3.    Sustaining  growth  in  the  increasingly  competitive
    world  economic  order will be our major challenge.  This is
    because 85 percent of the world's  wealth  is  still  shared
    among  the  richest  20 percent. Among other things, this is
    due to the fact that capital and technological resources are
    still under the control of industrialised countries.

    4.    Economic competition and political  restructuring  are
    now  being  reinforced  by  the  combined  effects  of a new
    factor:  the  digital  economy  and  the  borderless  world.
    Information  technology  or  IT,  integrating  the  power of
    computers and telecommunication, is providing easy access to
    information: to anyone, at any time, in any place and in any
    form.   Unfettered information flow  across  boundaries,  in
    real  time  without  regard  for  distances while  providing
    new opportunities, can also  be a threat to  the  well-being
    of countries politically, economically and socially.

    5.    However  IT  is  more  than  just a new technology. It
    involves a  fundamental  shift  in  the  way  we  think  and
    function.  The demand for IT products and systems stems from
    the  need  to  increase  efficency  and  productivity  in  a
    competitive world.  We have learnt that first by automating,
    and then lately by transforming work processes, we can  gain
    a  quantum  jump  in  productivity.    Socially, people have
    discovered  the  utility of instant global communication.  A
    fundamental psychological need is being fulfilled and at the
    same   time   the   floodgates   to   enhanced  intellectual
    interchange have been opened.

    6.    The knowledge society is therefore not  merely  a  new
    manisfestation of technological inventiveness.  It marks the
    rise  of  information  and  knowledge  as  new parameters in
    economic advancement  and  social progress. The  essence  of
    the  knowledge  society lies in its contents.  The key human
    skills are  cognitive, mental and  intellectual. Thus  human
    resources become the ultimate resource for any nation.

    7.    The  application  of IT in all critical areas has been
    promoted in this country for many years.   As  a  corollary,
    the  electronics  industry  has  become  one  of  the  major
    manufacturing activities, contributing about 25  percent  to
    our  GDP. Use  of  IT in both the public and private sectors
    has been encouraged, resulting in per capita expenditure  on
    IT  becoming  one of the highest among developing countries.
    In the mid-80s we also  deregulated  the  telecommunications
    industry  by  privatising  the Telecoms Department.  We have
    now gone one step further by introducing competition in  the
    telecommunications business.  More importantly education and
    training  in IT has been vastly expanded through encouraging
    local  institutions  to  venture  into  new  areas  and   by
    stimulating  the growth of private educational institutions.
    Additional human resources possessing new skills  have  been
    produced,  even  though  we  still  do not have enough.

    8.    In  the  past  we   facilitated  the  development  and
    application of IT through the bottom-up approach.  This is a
    necessary   phase  to  enable  people   to   experiment  and
    experience, to learn  and  to gain expertise. Lately we have
    decided that the bottom-up approach has to  be  complemented
    by the top-down policy planning  and  management  scheme  as
    well.  The formation  of  the National IT  Council is geared
    towards the  establishment of  national  policy  imperatives
    which  will  propel us into the Information  Age. We need to
    know  the  priorities  in  order  to  optimise  the  use  of
    resources available.  Key industries, their main players and
    the related success factors have to be understood.  Critical
    applications  in  economic and social development have to be
    identified and implemented.  Top-down  policy  planning  and
    management   therefore  serves  to  steer  the  national  IT
    programme towards achieving our development objectives  more
    efficiently.

    9.    Already  we have embarked on an ambitious programme to
    establish a Multimedia Super  Corridor  (MSC)  in  Malaysia.
    This corridor stretches all the way from Kuala Lumpur to the
    new KL International Airport in Sepang, encompassing an area
    of  about  15  kilometers wide and 40 kilometers long.  This
    corridor will not only house the  new  KLIA  with  the  most
    advanced  Total  Airport  Management System (TAMS), but also
    the new government  centre  of  Putrajaya,  which  is  being
    planned to be an Intelligent City.

    10.  The objective of the MSC is to showcase the development
    and  application  of  multimedia in industry and business as
    well as for life and  work  in  general. Software,  hardware
    and systems companies in the computer, telecommunication and
    broadcasting  industries  will  be attracted to locate their
    operations in  the  MSC. Businesses  integrating  both   the
    print    and   electronic   media,   including   publishing,
    information services, broadcasting and movie industries will
    be prioritised. World  class  companies  in  these  business
    areas  will  be  invited  and  local companies encouraged to
    become their business partners.

    11.   In  order   to   attract   these  companies  the  best
    infrastructure  will   be   provided.  A network of highways
    criss-crossing the MSC is already  being  implemented.    To
    complement  the highways, there will be a Light Rail Transit
    (LRT) as well as an  Express  Rail Link  (ERL). These  links
    will provide rapid and efficient transport between the major
    centres such as the airport, Putrajaya and the ports, and of
    course,  to   the   rest  of  the   country. The  electronic
    superhighway    will   also    be    in    place.  Broadband
    telecommunications  is  already  being  implemented  through
    fibre  optic  transmission,  synchronous  digital  hierarchy
    (SDH) and satellite links.

    12.   Multimedia  cities will be created in the MSC catering
    to various industries.   Around the KLIA  the  Airport  City
    will  facilitate  and  synergise air travel.  This city will
    not only cater to the needs of  passenger  and  freight  air
    transport  businesses but also integrate passenger transport
    with the travel and tourist business globally.

    13.   The needs of IT in government will spawn another major
    area  of business activity.  Putrajaya will see the creation
    of new kinds of government services made possible through IT
    and   multimedia.  Higher   levels    of    efficiency   and
    productivity  will  be achieved by using IT to transform the
    internal operations and processes  of  government  agencies.
    Services  offered  to  the  public will also be reengineered
    such that the clients will be able to interact directly with
    public servants through electronic means and in  some  cases
    even  avail themselves of the services by direct interaction
    with intelligent and automatic IT systems.

    14.   The MSC will fulfill four  primary  objectives. First,
    it  will  demonstrate  the  effectiveness  of  multimedia in
    increasing the efficiency and productivity in the production
    and delivery of goods and services in both  the  public  and
    private  sector.  Second, it will introduce a new supply and
    demand  spiral  for  the  multimedia  industry  located   in
    Malaysia  for the world market.  Third, it will add value to
    the  infrastructure  already  put  in  place  in  the   MSC,
    including  KLIA,  Putrajaya,  the  transport network and the
    electronic superhighway. Fourth,  Putrajaya  will  stimulate
    the  growth of electronic governance: one that is more open,
    transparent, responsive and entrepreneurial; in  short  more
    suited to the Information Age.

    15.   The  viability  of  the MSC concept has been accepted,
    both by the government as well as by many companies we  have
    interacted    with.   Multimedia,   its   coordination   and
    development, including the proposed  Multimedia  Development
    Corporation  will  be  placed  under  the  Prime  Minister's
    Department.  Coordination is necessary as multimedia touches
    upon  many   kinds   of   information   infrastructure   and
    information  content.  The  MDC  will  be the master planner
    and strategic arm for the creation of the MSC.  It will also
    promote the MSC throughout the world in order to attract the
    best companies to work with us.

    16.   These new initiatives will  not  be  possible  without
    strong  economy  and political  stability. Although  we have
    done rather well in the manufacturing  industry,  we  should
    now look at the services sector, particularly those services
    that are information-intensive with high value added.

    17.   As   for  the  MSC   itself,  having  state-of-the-art
    technology at hand will mean nothing if we  do  not  prepare
    ourselves to apply it.  There is a need for a  more balanced
    approach  to  IT development and application.  We should not
    view IT and multimedia merely  as  technological  artifacts.
    Rather  there should exist a more harmonious balance between
    the  technological  imperatives  and  the  social  needs  of
    society.

    18.   Towards  this   end,  five  key   principles  must  be
    considered:-

         First,  the  technology  push  through  rapid  advances
         should be balanced by the  social  pull  represented by
         the economic,  social and cultural needs of the people.
         The proper application  of IT requires the creation  of
         socio-technical   systems   which   must   meet  social
         objectives.

         Second,  our Information Superhighway should be equally
         balanced  between  technological sophistication and the
         efficacy of the information content.

         Third,  while  the  government  can  take  the  lead by
         forming   new   strategies   and   facilitating   their
         implementation, the  private sector must play its part.
         Malaysian   companies   must  be  more  innovative  and
         creative by venturing into the multimedia industry.

         Fourth, there should be greater focus on transformation
         as opposed to automation.   Knowing  that  IT  has  the
         potential of transforming organisational structures, we
         should  reengineer  our  processes  to gain even higher
         benefits from IT investment.

         Fifth,   we need to reemphasise the importance of human
         resources in realising these aspirations.

    19.   Many kinds of balance must be achieved. Not only  must
    people  gain  competence  and literacy in IT, they must also
    know their specialised areas well, so that they may be  able
    to  reengineer  the  necessary work processes.   At the same
    time, knowledge and skills must be balanced with  the  right
    values  and  attitudes  towards information and knowledge so
    that they will create  the  required  culture  in  the  work
    environment.

    20.   Malaysia  has   reached  a  crossroad  in its economic
    development.   The choice seems to be  clear:  the  need  to
    embark  on  a programme to apply multimedia more intensively
    in business and in society at large.   The MSC  is  a  major
    initiative  in   this  direction. The synergies created will
    bring into sharp focus  the  key  success  factors  and  the
    problems that may arise.

    21.  I am confident that Infotech Malaysia 95 will set a new
    trend in discussions on  IT  by  highlighting  the  critical
    components  of  our  IT policy.  I wish everybody a fruitful
    deliberation.

    22.   On this note, I declare this  Infotech '95  Conference
    open. 
 
 



 
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