Oleh/By : DATO' SERI DR.
MAHATHIR BIN MOHAMAD
Tempat/Venue : BUKIT JELUTONG,
SHAH ALAM, SELANGOR
Tarikh/Date : 21/02/2000
Tajuk/Title : THE OFFICIAL OPENING OF ERICSSON
MOBILE PHONE PLANT
Firstly, let me thank Ericsson for inviting me to
officiate at this auspicious function. Today, we
witness the launch of yet another large investment in
Malaysia by a major multinational company. This event
is another vote of investor confidence in the
Government's economic policies. What is more meaningful
is that it is symbolic of the continued faith shown by
Ericsson in Malaysia.
2. This morning's event is also significant because
Ericsson is one of the largest technology companies in
the world. We are thus justifiably proud to be
associated with Ericsson and to host their first mobile
phone manufacturing facility in the World. When
started in 1997, its capacity was one million units per
annum. This new factory has a capacity of five million
units per annum, and represents an opportunity to
generate several billion Ringgit of export business
per year. I wish to thank Ericsson for choosing
Malaysia as `the preferred location' for this state-of-
the-art plant.
3. Obviously Ericsson is in the right industry at the
right time. Overall world market for Telecoms equipment
and services forecast for 2000 is US$1.16 trillion. The
International Telecommunications Union forecast for
2000 is 500 million mobile phone lines growing to 750
million in 2002. The mobile phone growth rate of some
10 per cent per annum is twice the fixed line growth
rate. But Ericsson's growth is also due to its
innovations and focus on knowledge.
4. With convergence of technologies, the
opportunities are going to increase even further.
However Malaysians will only reap maximum benefits from
the presence of companies like Ericsson if we are
willing to acquire and use knowledge. We must quickly
adopt the processes and knowledge, which drive such
companies and keep them on the cutting edge of
technology. It is no longer enough to just provide the
labour for foreign investors. Our managers and
scientists must master the key enablers and management
techniques, which determine international
competitiveness. In this context the Multimedia Super
Corridor project is designed to both create new
sources of wealth and improve national productivity and
technological competitiveness. This launch today is
also symbolic of the fact that we must continue to
modernise and increase productivity in our traditional
areas of strength such as manufacturing. It also
indicates that we must enhance our networking to
develop the next engine of growth led by knowledge.
5. It is significant that Ericsson is in the
forefront of the knowledge-based companies who are
driving the new global economy. Importantly, 22,000 of
Ericsson's employees are in research and development.
15-20 per cent of sales revenue is re-invested in R &
D. Ericsson's willingness to share its knowledge with
us through the MSC initiative will help Malaysia's
journey into the Knowledge Economy. In fact they were
amongst the first web shapers to obtain MSC Status. The
establishment of this new plant will complement the
high-end R&D activities of Ericsson's four sister
companies with MSC Status. Ericsson has in the process
established an IT hub in Malaysia, one of three
worldwide, representing an investment of RM100million
in Malaysia. This augurs well for our efforts to create
high technology jobs and fortifies our national efforts
in becoming a leading IT and multimedia regional hub.
6. To spur further such investment, the Government
needs to develop the necessary infrastructure and
provide other enabling environment. Indeed through the
MSC initiative, we have completed both the basic hard
and soft infrastructure such as the necessary broadband
infostructure and Cyberlaws to facilitate Knowledge-
based investments. Our strategy and offering is being
continually improved and reviewed. With the advice of
the MSC International Advisory Panel we hope to be able
to innovate continuously. Despite such innovation and
quick response to investors needs, we have seen of
late some media articles critical of our Government's
investments in such high tech projects and of our
ability to succeed.
7. We must respond quickly and effectively to such
reports since effective communications with our
stakeholders is a critical success factor for the MSC
initiative.
8. No information rich country is poor, and no
information poor country is rich. Pursuant to this,
Malaysia has no choice but to pursue the path it has
taken. We have put in place a strategy and plan which
together with our proven ability to implement, leaves
no doubt in my mind that Malaysians can achieve what is
their next priority national objective - the MSC as the
vehicle to transform our society into one which can
compete internationally based on knowledge. There are
many reasons behind this optimism.
9. For one, the MSC does not attempt to duplicate
Palo Alto in Dengkil. But the MSC does take those
aspects of Silicon Valley, which are positive, such as
the idea of a community dedicated to e-business and
other e-technologies as guidelines. We have built on
our strengths and adopted a master plan to support the
new ways of working and living made possible by the new
technologies. Cyberjaya will be devoid of the less
desirable elements of rapid expansion like traffic
congestion and pollution common in other technology
hubs which arise from the fact that they grew more or
less by chance. Cyberjaya is a greenfield project
planned to avoid the environmental and quality of life
drawbacks in other "Silicon Valley" type developments.
10. Some of our detractors have also called Cyberjaya
a ghost town. But we cannot build an entire city in a
few months. In Cyberjaya, we have built large
buildings in months but not the entire city. This
takes years. In fact we have made considerable
progress from the Greenfield site acquired just in
1997. The newly completed Multimedia University already
houses over 3,000 students and teaching staff from
around the world. By the end of the year, fast track
completion of public amenities such as schools and
parks will be largely completed to complement the basic
infrastructure ready since July 1999. Importantly, all
the office space under construction or completed is
already fully tenanted. We expect more than 100 MSC
status companies to move into Cyberjaya by September
2000. We already have some 87 companies located in
Cyberjaya.
11. The strength of the MSC is also derived from the
diversity and breadth of companies which have obtained
MSC status. Whilst some target the global market,
others are aiming to serve Asia and the region.
Obviously the content market in the US is very
competitive for Asian entrepreneurs but it is there.
Leveraging on our multicultural background which gives
us a unique advantage, many MSC status companies have
carved a niche focussing on the Asian market.
Building on this, they can cost-effectively scale up to
perform development of software and technology for the
World market. English, the language of the Internet is
widely used in Malaysia, and should draw investors to
the MSC. We are also developing just south of
Cyberjaya, a new E-Village which will house all of the
creative multimedia cluster. This development will
complement Cyberjaya in such a way as to bring together
in one synergistic whole, the Hollywood and Silicon
Valley concepts thus giving the MSC another unique
competitive advantage.
12. Though in the formative stage, we have recognised
and put in place the crucial ingredients that shall
spur the development of small and medium-sized
enterprises (SMEs). These include: venture capitalists,
incubation centres, IT-savvy workforce, R&D grants,
provision of necessary incentives, and access to
markets. We also have some success stories. VMS, an
MSC company, recently announced the launch of their
product for managing the various communication
facilities using a single platform - the first of its
kind in Asia. The product, which won the Teleconnect
Best 98 award in New York, has been developed using an
MSC R&D grant they obtained in 1998. Admittedly there
is a shortage of venture capital in Asia when compared
with the US, and less expertise in applying it. But
measures are being taken in Malaysia such as through
MDC's Venture Corp. We will also take all necessary
fiscal and other incentives to ensure that this
critical aspect of SME development is given the right
support and nurturing.
13. We are also establishing a culture in the MSC to
support and nurture innovation. In the past, much of
the innovative technology was invented by Asians
working in developed countries. We want to provide the
right environment and opportunities to bring these
innovators back because they are so critical for our
future growth. Laws to encourage a tolerance of
business failure and taking risks are in the cards.
14. Malaysians have already proven their ability to
successfully operationalise any project they
undertake. The negative sentiments that have been
expressed about the MSC have been heard earlier on the
National Car Project, the new Kuala Lumpur
International Airport; the Kuala Lumpur City Centre,
and the currency control measures that have rescued
Malaysia from the Asian Economic Crisis. All these have
proven to be successful. Is there any reason to believe
these naysayers now, when they have been wrong every
time in the past?
15. Notwithstanding the many reasons I have given, my
confidence that Malaysians have a secure future in the
knowledge economy stems largely from the results
achieved by the MSC to date. Through the MSC initiative
we have set ourselves a comprehensive well conceived
strategy. We have also set realistic targets and
timelines. To date the MSC project has met all the
major milestones set for it. We now have 300 MSC status
companies including 34 web-shapers. These companies
together had projected investments of some RM 3.4
billion in 1999 and employed over14,000
knowledgeworkers.
16. Whilst we have achieved progress, much remains to
be done. The various Government departments which have
helped to create an unrivalled business friendly
environment in the MSC must do more and replicate such
service to serve other industries as well. In the MSC
itself we must cooperate and innovate to stay ahead of
the increasing competition. There is need to further
enhance the private sector-public sector cooperation
that has helped us to build Cyberjaya and launch the
first wave of the flagships applications. We must
build on the trust built up and develop the E-Village
and E-Business catalysed by the Second Wave of
flagships applications.
17. On this note of mutual cooperation and gain, it
gives me great pleasure to officially declare open
Ericsson's new mobile phone plant.
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