Oleh/By		:	DATO' SERI DR. 	
			MAHATHIR BIN MOHAMAD 
Tempat/Venue	: 	MINES, KUALA LUMPUR 
Tarikh/Date 	: 	03/11/98 
Tajuk/Title  	: 	MAJLIS PERASMIAN ASEAN TELEKOM 1998 



        Terlebih  dahulu,  saya  mengucapkan  terima   kasih
  kepada  penganjur persidangan ini kerana  menjemput  saya
  untuk  menyampaikan ucaputama serta merasmikan  pembukaan
  ASEAN Telekom 98 pada pagi ini.
  
  2.      The    theme    of   this   conference,    `ASEAN
  Telecommunications:   Driving   Forces   And    Strategic
  Responses'  is, indeed,  most appropriate  and  relevant.
  It   provides   an   opportunity  for  telecommunications
  practitioners,  members  of  the  business   communities,
  policy   makers  and  regulators  as  well  as  potential
  investors to deliberate on the issues of the day  and  to
  identify   workable  strategies  in  the  light  of   the
  prevailing   economic  situation  faced  by  most   ASEAN
  countries.  Apart  from  the  current  economic  turmoil,
  there  are  other  challenges that the telecommunications
  industry  has  to  face as well as to positively  respond
  to   in  order  to  maintain  the  pace  and  spread   of
  development    of    the   telecommunications    industry
  commensurate  with  the demands of developing  economies.
  Let us examine some of them.
  
  3.    A  very significant challenge is one that is  posed
  by  the  rapid  development in communications  technology
  and  the  changing dynamics of world trade.  Unlike  some
  other  industries, demand in the communications  industry
  is  heavily   dependent on technology  because  of  rapid
  improvements  in  the  quality  and  range  of   services
  resulting  from  technological advancement.  Continuously
  greater technological sophistication will continue to  be
  the  trend.   It is already evident that the single  most
  powerful technological breakthrough in communications  in
  recent  years is digital technology. This innovation  has
  fueled   the   convergence   of   technologies   in   the
  telecommunications,    broadcasting     and     computing
  industries. It has given rise to a new value chain and  a
  new  industry  structure with digital technology  as  its
  basis. In short, a multimedia paradigm has now evolved.
  4.    This  development has caused a profound  impact  on
  the  industry  structure  of the traditionally  segmented
  and   fragmented  telecommunications,  broadcasting   and
  computing  industries.  The convergence  of  technologies
  of  these  industries has already begun to  revolutionise
  communications and multimedia developments globally.  New
  players,   alliances  and  technological  solutions   for
  transmission,    network   development   and    programme
  distribution  have begun to emerge. This  has  inevitably
  led  to  new  strategies  for  sector  restructuring  and
  cross-sector activities.
  
  5.    Technological  changes have not  only  reduced  the
  cost  of information processing and transmission but also
  rendered    advanced   information   and   communications
  services  largely indistinguishable.  This has  opened  a
  new  way  of meeting a wider range of user communications
  needs,   one   that   is  more  flexible,   cheaper   and
  independent     from    the    existing    communications
  enterprises.     Consumers    worldwide,    from    large
  corporations to small businesses and domestic users,  can
  now  enjoy  a  wider  access,  better  quality  and  less
  expensive communications and information services.
  
  6.    Currently, large multinational corporations form an
  important  segment  of  the world  communications  market
  because   they   require   advanced   and   sophisticated
  communications  solutions and  are  willing  to  spend  a
  disproportionate  amount  of  revenue  on  communications
  needs.  The world communications and information  markets
  are  presently  estimated  to be  worth  almost  USD  one
  trillion  and  these  markets are dominated  by  services
  which account for eighty percent of the global revenue.
  
  7.    Therefore, to sustain and maintain their  positions
  in  the globalised information economy and to continue to
  be   competitive,   local  enterprises   in    developing
  countries,  which  are  still  largely  technology-based,
  must   move   swiftly  to  re-engineer  their   business,
  restructure  their  services, expand overseas,  penetrate
  global  markets and capture sales. Towards this end,  and
  in  view  of the current financial setback, the  industry
  players   must  compete  hard  for  the  direct   foreign
  investments  of  transnational firms that dominate  large
  segments    of   the   communications   and    multimedia
  industries.
  
  8.     In   recent  years,  in  addition  to  technology,
  business   practices   related  to  communications   have
  changed  very  quickly.   A strong  business  demand  for
  better  quality  and variety as well as  lower  costs  of
  communications services reflects increased  awareness  of
  the  economic importance of communications.  New  markets
  continue   to   evolve  with  totally  new  demands   for
  services.    Development  at  the  software  front,   for
  instance, has enabled computers to talk and, at the  same
  time,  eliminate  language barriers between machines  and
  humans.   Electronic  communications   will  enable   our
  memos  or  mail to be delivered in a language other  than
  that  in  which  they were  sent.  The voice  recognition
  technique  and  automatic  message  translation,  on  the
  other  hand,  will  make it possible for  us  to  conduct
  telemeetings where everyone is able to speak  in  his  or
  her  own language. This has led to the development of new
  markets  for  more sophisticated application requirements
  and information services .
  
  9.    As the main platform for the  information industry,
  the  development  of  technology  in  the  communications
  sector  has caused a significant impact on the growth  of
  this   industry.    The  emergence  of  the   information
  industry   and   economy   brings   into   reality    the
  internationalisation  of services.  This  development  is
  expected  to have substantial influence on the  role  and
  market  structure  of  the communications  industry.   In
  addition,  the  liberalisation of the  service  industry,
  which  includes communications and other public services,
  has  resulted in the extension of competitive contracting
  in  business and government. Finally, with the  breakdown
  of   geographical  boundaries  and  national   regulatory
  autonomies together with significant growth in the  value
  margins   of  content  software  and  hardware   in   the
  electronics  industry, the pressure  of  competition  has
  grown   tremendously.    It   has   also   expanded   the
  communications market from national to global  levels  as
  well   as   unleashed   aggressive  enterprises   seeking
  business  opportunities abroad. In short,  and  from  the
  macro      economic     perspective,     the      growing
  internationalisation of the communications  industry  has
  given  rise to  immense opportunities for expanding  into
  new  markets   and attracting foreign direct  investments
  as well as broadening the range of service providers.
  
  10.   These  opportunities will pose challenges  to  many
  developing  countries, especially in terms of  efficiency
  improvement of the communications industry.  This  is  in
  view  of the fact that efficiency improvements are vital,
  not  only  to capture opportunities that have  been  made
  available in the export markets, but also to enhance  the
  overall   competitive   edge.   In   this   regard,   the
  government  is prepared to set national priorities  based
  on  a global perspective through the establishment of   a
  more  liberal  trade and investment  regime  to  maximise
  the  internationalisation of the communications industry.
  Hence,  the  move  by  the Government  to  allow  foreign
  investors   to   increase   their   stakes    in    local
  communications  companies,  signals  our   intention   to
  ensure  that the communications sector will benefit  from
  foreign   direct   investments  besides  enabling   local
  companies to leverage for export opportunities.
  
  11.   I  would  like  to  remind everyone  that  although
  foreign  companies may now play a prominent role  in  the
  telecommunication industry of developing countries,  they
  must  never  forget  or  disregard the  nationalism,  the
  pride  and  the sensitivities of the locals.  The  locals
  appreciate   their   need   for   foreign   participation
  particularly  in the telecommunication field  because  of
  the  enormous investments needed, the sophistication  and
  the  constantly  changing technologies.  Without  foreign
  investments and technology it is possible for them to  be
  disconnected  from  the  worldwide international  system.
  But   their  willingness  to  sacrifice  their   national
  independence and identity cannot be unlimited.   Even  if
  their  Governments are pragmatic and wish to open  up  as
  widely  as possible for the sake of keeping up  with  the
  rest  of  the world, the people might not be so  willing.
  The  people will be especially unwilling if the price  is
  to  be  paid  by  them,  through losing  their  jobs  for
  example.   We  are already seeing this in some  countries
  where  restructuring  involves laying  off  workers.   It
  should  not be allowed to happen in the telecommunication
  industry when countries open up.
  
  12.    While  privatisation  has  become  the  norm,  the
  Government   will   continue  to  play  a   constructive,
  facilitative   and  proactive  role  in  supporting   the
  development  of  this  industry to  build  up  the  basic
  infrastructure  for  the  new  information  economy.  The
  communications  industry enjoys a high  priority  in  the
  Government's   micro-economic   development    programme.
  Several  policy  alignments  and  structural  adjustments
  have  been  carried out to enable this industry  to  move
  forward   to  generate  more significant  growth  in  the
  years  to  come. Realising the need for a  more  flexible
  and  dynamic policy, regulatory and legislative  regimes,
  the Government  has already taken the necessary steps  to
  review  and  introduce changes to  keep  abreast  of  the
  rapid  evolution in technology and to respond to emerging
  needs of the market.
  
  13.   Among others, the Communications and Multimedia Act
  1998  was passed by Parliament in July this year, and  is
  expected  to  be implemented early next year.   This  Act
  bears  testimony  to  the  Government's  commitment   and
  recognition  of  the  important  role  played   by   this
  industry   in   supporting  the   economic   and   social
  developments  of  the  country.  The  Act  provides   the
  necessary   legal  framework  for  a   new   policy   and
  regulatory   regime   for   the   convergence   of    the
  telecommunications,    broadcasting     and     computing
  industries.   It   is   also  a  manifestation   of   the
  Government's  intention  of  defining  a  more  open  and
  market-driven approach in dealing with the industry.
  
  14.   In line with the need to promote a more dynamic and
  informed  market environment, the Government has reviewed
  the  policy  and regulatory institutions  to  guide  this
  industry.   Towards  this  end,  the  Communications  and
  Multimedia Act 1998 provides for a single Ministry to  be
  responsible  for the policy and strategic  framework  for
  the  development  of  the communications  and  multimedia
  industries.     In    addition,   the   Commission    for
  Communications  and Multimedia Act 1998  provides  for  a
  single  and  more independent regulatory body  to  ensure
  healthy and competitive operations within this industry.
  
  15.   The  Ministry  of  Energy,  Telecommunications  And
  Posts  which has been  renamed as the Ministry of Energy,
  Communications And Multimedia under Yang Berhormat  Datuk
  Leo Moggie will be responsible for the implementation  of
  both  these Acts, effective from 1st November  1998.  The
  establishment  of  the Commission for Communications  and
  Multimedia  is  also effective from the same  date  under
  its   Chairman,   Dr.  Syed Hussein Mohamed.   I  believe
  that   Dr.   Syed  Hussein  is  well  known   among   the
  telecommunications   fraternity,   having    served    as
  Executive  Director  of Telekom Malaysia  as  well  as  a
  Board member for several years.
  
  16.    Dengan  kata-kata  ini,  saya  dengan  sukacitanya
  merasmikan  persidangan  ini  serta  Expo  dan   ForumY2K
  Solution.

 
 



 
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