Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : PUTRA WORLD TRADE CENTRE,
KUALA LUMPUR
Tarikh/Date : 01/08/96
Tajuk/Title : THE OPENING OF MULTIMEDIA ASIA ON
MULTIMEDIA SUPER CORRIDOR (MSC)
1. I would like to welcome you all to Multimedia
Asia -- both those who are physically present here
in Kuala Lumpur but also those who are with us
through the magic of the Internet. I am delighted
to have this opportunity to use this new medium for
a live broadcast which will later be available on
the MSC homepage for reference.
2. Our goal for this conference is to launch the
Multimedia Super Corridor (MSC) and explain to the
world all that we are doing to make it a reality. I
hope you will all leave here with a full
understanding of what we truly believe is a world-
first -- the careful creation of a region with an
environment especially crafted to meet the needs of
leading edge companies seeking to reap the rewards
of the Information Age in Asia.
3. No other country is even considering anything
similar. I see the MSC as a global facilitator of
the Information Age, a carefully constructed
mechanism to enable mutual enrichment of companies
and countries using leading technologies and the
borderless world. Other plans may sound similar
because they all use "IT, Cyber, or Multimedia" to
market one or another development. But we are not
adding new facilities to existing ones; we are
building and installing the latest on a huge 15 km x
50 km greenfield site. We are not just upgrading.
4. We are talking here about something much more
far-reaching. We are talking about changing the way
we live and work within the MSC. This special area
will be a global `test-bed' for the new roles of
Government, new cyber laws and guarantees,
collaborations between Government and companies,
companies and companies, new broadcasting and new
types of entertainment, education, delivery of
healthcare, and applications of new technologies.
We are taking a single-minded approach to developing
the country using the new tools offered by the
Information Age. The MSC will be the R&D centre for
the information based industries, to develop new
codes of ethics in a shrunken world when everyone is
a neighbour to everyone else, where we have to live
with each other without unnecessary tension and
conflicts.
5. Malaysia had industrialised so rapidly that
where once commodities made up 100 percent of our
exports, today manufactured goods constitute 78
percent of our exports valued at US$75 billion. Yet
we are not a developed country. To become a
developed country according to our Vision 2020 we
cannot continue with conventional manufacturing
industries. We have to move into the Information
Industry. We need to tap the talents of the whole
world in order to do this. As in the past those who
respond to our invitation to invest in Malaysia will
reap a rich return.
6. As usual in Malaysia we move very fast. In the
information age and instant communication, there
would be people working at any time in 24 hours who
will want to be serviced. Malaysia takes this fact
seriously. Not only do we work 24 hours a day to
construct and manufacture, but we expect to provide
information service 24 hours a day through our MSC.
Consequently we have already readied a blue print
for the massive 750 sq. km. site. We have almost
completed the Kuala Lumpur International Airport and
the Kuala Lumpur City Centre at both ends of the
corridor, started work on the new wired high tech
intelligent administrative capital to be served by
dedicated road and rail linkages. New cyber laws
are being formulated and a Bill of Guarantee is
being worked out to ensure hassle-free operation by
foreign and local companies operating out of the
MSC.
7. The MSC is both a physical area and a new
paradigm for creating value in the Information Age.
Physically, the MSC will be a 15 x 50 KM square area
spreading south of Kuala Lumpur. It begins with the
Kuala Lumpur City Centre in the North and runs to
Kuala Lumpur International Airport at Sepang in the
South. It is bounded by the North-South Highway in
the East and the new Coastal Link Highway in the
West. The MSC includes two other mega-projects in
its centre -- Putra Jaya, the new administrative
capital, and an IT City, a development of smart
buildings with the latest information infrastructure
that is being tailored to meet both the living and
business needs of the knowledge worker. Most of
these projects are underway and each is exciting in
its own right:
KLCC is the Northern gateway to the MSC and is
graced by the tallest towers in the world. They
already dominate our skyline at 450 metres each and
constitute a city within a city.
KLIA will be ready before the Commonwealth Games in
1998 and will have initially 80 gates with two
parallel runways. It will be an airport in the
forest to ensure it is an appropriate international
gateway to the environmentally beautiful MSC. KLIA
will also become an integrated logistic hub with the
latest in IT to facilitate movements of people and
goods.
Putra Jaya is Malaysia's new electronic government
administrative centre and will also be developed as
an `intelligent' garden city. It will provide a
balanced urban environment for 250,000 people served
by state of the art communications and
transportation systems.
IT City will be located in West Putrajaya and
provide top quality business facilities, residential
housing, leisure and recreation facilities, and
state of the art supporting infrastructure. It will
support a working population of approximately
150,000 and a living population of over 100,000.
8. In between these megaprojects, there will be
ample land to be developed especially for the
multimedia industry and other companies using
leading edge information infrastructure to provide
products and services to their clients. The entire
area will be served by a 2.5-10GB, 100 percent
digital fiberoptic network that will directly link
the MSC with ASEAN, Japan, U.S. and Europe. There
will also be high speed road and rail links. Its
location between the airport and KL puts the MSC in
the most convenient location for industrial IT
innovators and knowledge workers.
9. That describes the physical aspect of the MSC,
but we are talking about creating something much
greater. The best way to fully describe the MSC is
to provide a vision of what it will hopefully become
by the year 2020.
10. As we approach the 21st century, fantastic
changes are taking place which make what was
impossible in the old economy of the Industrial Age
suddenly possible in the Information Age. Borders
are disappearing due to ease of global
communications, capital flows, the movements of
goods and people and location of operational
headquarters. Where countries once competed with one
nation's trade surplus resulting in another's trade
deficit, in the future both countries can benefit
because networks of companies collaborate across
borders to deliver value to customers in the most
economically sensible way.
11. In short, the Information Age has created
conditions for the first time in history that will
enable countries and companies to mutually enrich
one another -- it is no longer a zero sum game with
winners and losers. I believe neighbours prosper
more when they help each other than when they are
selfish or envious. Sometimes neighbours need new
ideas and tools to help them move beyond petty
conflicts of the past. These may be frightening at
first -- because they require fundamental
attitudinal changes -- but once accepted, people
will forget their petty jealousies simply because
they are racially or nationally different. If we
can imagine how our grandparents felt about the
freedom of movement when automobiles were first
introduced, we can appreciate the sense of freedom
which the Internet for example make possible in the
Information Age. Many of us are of course still
afraid to go for a test drive.
12. I hope the MSC will change this in Malaysia.
The MSC is the first place in the world to bring
together all of the elements needed to create the
kind of environment to engender this mutual
enrichment. I see the MSC in 2020 as a
multicultural `web' of mutually dependent
international and Malaysian companies collaborating
to deliver new products and services to customers
across an economically vibrant Asia and the world.
I fully expect that this `web' will extend beyond
Malaysia's borders and out across Malaysia's
multicultural links to our neighbours. Component
manufacturing can then be done in China, on machines
programmed from Japan, with software written in
India, and financing coming from the Labuan IOFC.
The product may be assembled in Penang and shipped
to global customers direct from our new airport at
Sepang.
13. Malaysian companies are already working with
world-class international companies and technology
transfer is taking place because each company will
really be adding value to the product. Moreover,
companies and neighbouring countries are benefiting
as well because parts of the product are produced in
other locations. The consumer benefits most of all
because they get a top quality product at the best
possible price. In short, all parties touched by
this `web' will benefit and are enriched through
their contribution to it.
14. By 2020, I see the MSC having hundreds of large
and small companies working collaboratively with one
another and with partners across Asia. Some of
these companies will certainly be today's leaders.
Many others will be the smaller companies that are
members of each of these companies `web'.
Hopefully, a few of tomorrow's leaders will be from
Malaysia with new products and services in the MSC.
I hope the MSC will be far more than a business
development by 2020. I see a global community living
at the leading edge of the Information Society.
Their smart homes will be connected to a network
through which they can shop, receive information, be
entertained, interact with one another, and educate
themselves. Of course when they grow tired of all
these new fangled things they can enjoy the pristine
environment which we have preserved in Malaysia.
15. By 2000, I expect to see seven specific
applications being developed in the MSC by `webs' of
international and Malaysian companies:
First, Malaysia will be a pioneer in electronic
government. This will be a multimedia-networked
paperless administration linking Putra Jaya to
government centres around the country to facilitate
inter-governmental collaboration and citizen access
to government services.
Second, Malaysia will be a regional centre for
telemedicine. With our Chinese, Ayurvedic, and
Western medical knowledge, we are a natural hub.
Rural clinics can be connected to medical experts
from Malaysia and to the great clinics worldwide
using new tele-instruments for remote diagnosis.
The doctor no longer has to be in the same room as
the patient. Key information can be gathered using
new instruments such as `electronic stethoscopes'
operated by nurses or technicians. This can be
viewed and compared with other patients by the
world's best doctors and of course data on millions
of patients already in the world's computers.
Third, I hope the MSC will become a collaborative
cluster of universities and corporate R & D centres,
using distance learning to produce world-class
graduates and next-generation innovations.
Fourth, I hope the MSC will be a remote
manufacturing coordination and engineering support
hub that electronically enables companies in high
cost countries to access plants across Malaysia and
Asia as a virtual extension of their domestic
operations.
Fifth, the MSC should become a multimedia customer
service hub leveraging Malaysia's unique
multicultural links to provide electronic
publishing, content localisation, telemarketing and
remote customer care to a market of 2.5 billion
people. For example, a Japanese company's catalogue
can be translated into Chinese or Tamil or Hindi by
a company that takes orders through a system that
automatically localises the sizes and the
currencies.
Sixth, the MSC will be an environmentally beautiful
and highly convenient financial haven with direct
multimedia links to the Labuan International
Offshore Financial Centre and the world's financial
centres. This will enable `reverse investment'
outward from Malaysia and will benefit our
neighbours.
Finally, Malaysia will have the world's first
national multipurpose smart card. One card will
have the individual's ID and electronic signature
and access to government, banking, credit,
telephone, transport and club services. Of course,
security will be critical but the technology enables
all of these services to be on one secure platform.
Imagine the convenience as we are freed from having
to carry a huge pack of plastic cards and selecting
one every time we need to use a card.
16. In short, I see the MSC as the leading edge of
a new national strategy for Malaysia to achieve the
goals described in our country's Vision 2020. I
fully expect to see a few world-class Malaysian
companies emerge from the MSC. It will accelerate
the development of a strong services sector to
balance our already strong manufacturing sector
while helping to improve the productivity and
quality of living in the nation. Equally important,
the MSC will provide a platform to tie us together
and celebrate our culture while helping to educate
us in new and different ways. It will allow us to
bring together our multicultural knowledge and
relationships to mutually enrich our partners,
neighbours and ourselves.
17. What I have just described has probably never
been attempted anywhere else in the world. You may
be thinking, "Why Malaysia?"
18. First, Malaysia's physical location at the
center of ASEAN and its multicultural links with the
biggest Asian markets is unique. We have language
skills and cultural knowledge that can be very
helpful. Most people speak English as well as one
or more languages such as different Chinese or
Indian dialects, or Malay. With the new airport and
communications infrastructure being built, Malaysia
will be a highly efficient and effective hub for the
region.
19. Second, Malaysia still has a cost advantage as
compared to other NIEs in the region. Third, the
newness of multimedia to Malaysia provides an
important advantage -- we have no inherited systems
or entrenched interests determined to defend their
current positions. We have the political will and
the power to rapidly change any existing laws or
policies that impede the ability of companies to
capitalise on the benefits afforded by the
Information Age. We will not be bogged down by
excessive politicking in Malaysia.
20. Finally, we are highly committed to making the
MSC a success and we have a track record of meeting
our commitments. We are a pragmatic Government
which has consistently proven our critics wrong even
when we adopt unconventional policies and
strategies. Malaysia's history since independence
has shown consistency and predictability so that
long term investment will not be threatened by the
twists and turns of volatile local politics. The
Malaysian government sees multimedia as the
strategic sector to achieve Vision 2020, i.e. the
attainment of developed country status through
productivity-led growth, and the MSC is at the
leading edge of this key sector. We are actively
talking to companies to understand their needs, and
creating advisory panels to ensure we in government
fully understand all that is required to provide the
perfect regulatory, administrative, and social
environment within the MSC.
21. We have been very busy over the last several
months to understand your needs and respond to them
by making the required changes in the MSC. We
conducted a comprehensive study last year and a
follow-up study this year and identified several key
factors for success. These are access to
sufficiently skilled human resources and flexibility
in hiring; access to world-class telecoms and
information infrastructure; liberalised financial
environment with no local content/
ownership/partnership requirements; quality of life
as good as home countries with every convenience and
ease of doing business.
22. To address these, we are undertaking several
major initiatives. First, the Prime Minister's
Office will be setting an example for the rest of
the country. It will be paperless by 1998 when the
office moves to Putra Jaya. Ministries will need to
interact with the Prime Minister's Department
electronically which I hope will encourage them to
make themselves paperless.
23. Second, all schools within the MSC will be
connected to the Internet by 1998 and the rest of
the country will follow. The Education Ministry is
leading several initiatives to increase the role of
multimedia in education. We plan to dramatically
increase the number of engineers graduating every
year. Teachers will need to change their role in
the electronic classroom from being information
providers to counsellors in order to help the
students know how to select information sources, to
make judgements about what they are downloading. In
short, high tech requires high touch because the key
to success in the Information Age will be making the
right judgements between an awesome array of
choices. We are examining our education system to
create a curriculum where people learn how to learn
so they can continue their education throughout the
rest of their lives. The measure of our success in
2020 will be the number and quality of our people
who can add value to information. To that end, we
will be creating a Multimedia University and
technology schools within the MSC.
24. Third, while these long-term solutions are
important, we also need to close the gap immediately
if the MSC is to succeed. This will require us to
undertake an experiment and allow MSC companies the
unrestricted import of knowledge workers for the
next ten years. In addition, there will be no
employment restrictions on MSC companies and there
will be no restrictions on foreign ownership within
the MSC.
25. These commitments, along with several others,
will be part of a Multimedia Bill of Guarantees for
MSC companies;
1. Multimedia/IT is the priority sector for
achieving Vision 2020 and the MSC will be home
to Malaysia's leading edge multimedia
development.
2. The MSC will have the best environment in
Asia by creating MSC specific laws, policies
and practices.
3. The MSC will have a world-class physical
and information infrastructure.
4. MSC companies will have access to a
workforce of sufficient size and skills.
5. The MSC will become a regional center of
excellence in multimedia education, research
and leading edge applications.
6. There will be no employment or ownership
restrictions for MSC companies.
7. The MSC will become a leader in multimedia
regulations; `cyber-laws' for using IT to
deliver value in new ways (e.g. telemedicine,
distance learning, electronic signature), and
intellectual property protection will be
legislated.
8. The MSC will offer the best, tailored
incentives and financial/venture capital
environment.
9. Key MSC infrastructure contracts will be
tendered to companies willing to use the MSC as
their regional hub.
10. The Multimedia Development Corporation
will be empowered to act as a `one-stop shop'
to ensure the MSC meets company needs.
26. The incentives that will be made available
to MSC companies are still being detailed but
will include the following for companies
committing to the MSC within the next year.
- Corporate tax exemption for 5-10 years
depending on proposed applications to be
performed within the MSC
- Infrastructure contracts will be awarded
on a preferential basis to MSC companies
- Opportunity to sit on advisory panel to
provide direct input to the Prime Minister or
the Deputy Prime Minister on the environment
provided within the MSC.
27. We have invited multimedia experts and CEOs
from foreign countries to sit on the Distinguished
International Advisory Panel. The Panel will be
chaired by me and provide advice on a continuing
basis about the quality of the overall MSC
environment. I look to the members of this panel as
partners in ensuring the success of the MSC.
28. In addition, the cabinet has set up the
Multimedia Development Corporation with the mission
to ensure MSC companies have the world's best
environment for harnessing multimedia services. It
has a mandate to be the `one-stop shop' to manage
and market the Multimedia Super-Corridor. The MDC
will have governmental powers but will be run like a
private corporation that serves MSC companies as its
clients. The Government has approved the
appointment of Tan Sri Dr. Othman Yeop Abdullah as
the Chairman of MDC.
29. The Multimedia Development Corporation will be
taking applications for companies seeking MSC
designation. This entitles the company to the
incentives and Multimedia Bill of Guarantees
described above. You can electronically file the
application through the MSC homepage.
30. We hope you will become our partners in this
exciting endeavour. The Multimedia Super-Corridor
cannot succeed alone. Its power comes from
harnessing the energy, capabilities and vision of
many leading edge companies who are prepared to
collaborate in a new environment. By bringing these
pioneering companies together with Malaysian and
Asian companies, we believe we can spin a web
that will mutually enrich all those
participating or coming into contact with it. At
the same time, it will serve as a better interlink
for the global village and give the world a place
where the full potential of the Information Age can
be explored without any artificial limits.
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