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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