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Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	BEVERLY HILLS HOTEL, LOS ANGELES 
Tarikh/Date 	: 	14/01/97 
Tajuk/Title  	: 	DIGITAL ENTERTAINMENT IN THE 
			NETWORKED WORLD 



   1.    I  would like to thank Mayor Tom Levyn, the Beverly
  Hills  Chamber  of  Commerce, and the  Asia  Society  for
  inviting  me  to  speak on digital entertainment  in  the
  21st  Century.  I hesitate to do so knowing I am  in  the
  entertainment  capital  of  the  world.    Still   in   a
  borderless  globalised village I cannot  help  but  think
  about  this subject and I would like to share my  musings
  on  this, and then listen and learn from you about  where
  I am right or wrong.
  
  2.    After  all,  many of you provide  the  energy  that
  fuels  Hollywood's global power, your limitless store  of
  creativity.   While  I believe many of the  entertainment
  related activities carried out here will change, I  think
  this  will  always  be the `creativity  capital'  of  the
  entertainment  world.  I believe one of  the  secrets  of
  your  success has been that you have been networked  long
  before  connectivity  and  networking  became  such   big
  buzzwords.   It  is  now decades since  the  studios  had
  everything  in-house;  writers, actors,  special  effects
  people,  set  designers, film crews, editors,  producers,
  and  directors.  Now, most of these activities  are  done
  by   independent   individuals   and   small,   specialty
  companies  that  come  together  and  collaborate  on   a
  project and then go their separate ways.  Each can  focus
  on  what  it  does best, and together the  whole  can  be
  greater than the sum of its parts.
  
  3.    This  is  truly pioneering work because you  really
  showed  the  world  how  in a creative  business,  it  is
  better  to  have  webs of specialists  that  connect  and
  collaborate. This business model was later used  by  high
  technology  companies  like Microsoft,  Intel,  Netscape,
  and  Sun  to  so  successfully compete  against  the  old
  industry  leaders that tried to do everything  themselves
  with  proprietary standards -- just like the old days  of
  the   major   studios  before  actors,   producers,   and
  directors got smart and hired their own agents.
  
  4.    However,  things  have moved fast  lately  and  the
  network  needs to be more widespread.  Today, all content
  creation is heavily concentrated within a 30 mile  radius
  around  this  hotel.  This is necessary when the  network
  required physical relationships and people to work  with.
  Physical  contact  is now no longer  necessary.   We  are
  already  seeing movies, games, and music that are largely
  or  completely  computer-generated.   And  computers  can
  link  up and work together without having to be near each
  other.   Through  computers the dead may act  once  more,
  making  actual  acting by actors quite  unnecessary.   On
  the  other  hand old actors may now hold new copy  rights
  over   their   images  which  can  now  act   and   speak
  independently.   But through it all creativity  not  only
  remains  a  need  but will actually be  a  more  valuable
  asset.
  
  5.    The  creativity of making the story and  characters
  come   to  life  on  the  computer  screen  will   become
  especially  valuable.  Three dimensional games  may  have
  software  written  by  faceless programmers  in  numerous
  countries  who never meet each other because  it  is  the
  idea  behind the game which really generates  the  value.
  And  the  idea, the story, the creative thinking is  here
  in  plenty.   You  have the edge and I believe  you  will
  continue  to  be  the  major player  in  the  IT  age  of
  computer  generated entertainment and its new  offspring,
  edutainment.
  
  6.    Maintaining  your  global dominance  will  probably
  require  you to diversify some other elements of  content
  creation  to  other  cultural centres around  the  world.
  Today's entertainment is almost entirely American in  its
  cultural  content.   The characters are  American,  their
  problems are American, their dialogue is American.   Most
  of rest of the world experiences this entertainment at  a
  relatively   superficial  level.    They   really   don't
  understand  a  lot  of  the  subtleties  in  the   better
  stories.  Today,  that may be enough  because  of  glitz,
  special  effects, and high production  values.   I  think
  this  is  why action movies are the most popular  outside
  of   America.  But  technology  will  soon   make   these
  advantages disappear because digital entertainment  based
  on  action  ala  Bruce  Lee  or  Harisson  Ford,  special
  effects  etc.  can  be  developed anywhere,  and  digital
  action heroes will become more and more realistic.
  
  7.    As  developing countries grow more  affluent,  they
  will  want  more  local content for their  entertainment.
  The  clever themes developed may be universal: but Asians
  will  increasingly prefer entertainment that is localised
  in  its  languages, myths, characters, music,  allusions,
  and  locations.  We are already seeing this in music  and
  television  in Asia; sooner or later the same trend  will
  be  visible in movies and computer games.  Why  is  this?
  Because  people anywhere want to identify with what  they
  get  entertained with and link it with their own material
  aspirations.   Later, as they become more secure  through
  their   success,   they  will  be  looking   for   deeper
  fulfilment.  They know who they are and want  to  improve
  themselves  by touching something deeper than materialism
  or  escapism  can reach.  This is the realm of  religion,
  culture  and  moral  values.   They  are  searching   for
  meaning,  and this requires a cultural context that  goes
  well beyond America's pop culture.
  
  8.    To  stay  globally dominant in  the  21st  century,
  digital  entertainment leaders should be  networked  with
  multicultural   content  creation  centres.    The   best
  results  will  come from combining the  unique  types  of
  creativity  found  in  such abundance  in  Hollywood  and
  Beverly  Hills  with  the stories,  symbols,  myths,  and
  personalities  of each of the major world  cultures.   In
  Asia,  the  major cultures are Confucianism,  Islam,  and
  Hinduism.   Each has a rich history that can  be  a  deep
  source  of  new  ideas for content.  The  technology  can
  allow  new  characters to be electronically created  that
  embody  these ideas and touch people deeply.  In  digital
  entertainment,  there  are many  more  ways  of  bringing
  things  to  life than simply putting words in the  mouths
  of actors or having amazing special effects.
  
  9.    The one thing that won't change is the value of raw
  creativity--in fact it will only become more precious  as
  the  technology creates more and more channels  for  this
  creativity  to  express itself.  There is  more  of  this
  creativity  here than anywhere else, and for that  reason
  I think your future is incredibly bright.
  
  10.   In Malaysia, we are working hard to create the best
  environment  to  fulfil the promise of the  Digital  Age.
  We  call  this the Multimedia Super-Corridor or  `MSC'for
  short.   I  wish  to  invite you to collaborate  with  us
  because  the MSC could be the perfect place to experiment
  with  creating  the  world's first multicultural  content
  centre for digital entertainment.  The MSC will have  the
  necessary infrastructure, laws, and policies in what  can
  be  described as the cultural heart of Asia.   We  are  a
  truly   multicultural   country  where   the   Confucian,
  Islamic,   and  Hindu  cultures  corresponding   to   the
  Chinese,  Malay and Indian races thrive, remain  separate
  yet  somehow  interact  with each  other.   There  is  no
  better  place  to  connect  the  amazing  creativity   of
  Hollywood  with  the  conditions  necessary  to  localise
  digital  entertainment relevant to much of Asia  and  the
  rest of the world.
  
  11.   The Multimedia Super Corridor -- is truly a  world-
  first  --  the  careful creation  of  an  area  with  the
  infrastructure, laws, policies, and practices  that  will
  enable  companies to explore the Information Age  without
  any  of  the usual constraints that frustrate  them.  The
  MSC  is a 15km wide by 50 km long corridor that runs from
  the  world's tallest buildings  in the Kuala Lumpur  city
  Center,  southward to what will be the  region's  largest
  airport.
  
  12.   More than two years of careful study have gone into
  developing  a  package with four key elements  that  will
  make the environment within the MSC special:
  
  -  First,   the   MSC   will   have   the  best  physical
  infrastructure  that can be offered in the  world.   This
  includes   the  intelligent  Kuala  Lumpur  City   Centre
  buildings,  a  new  airport, rapid rail  links  to  Kuala
  Lumpur,   a   Smart  dedicated  Highway,  and   two   new
  intelligent  garden  cities. Kuala  Lumpur  International
  Airport  which  will  be  ready before  the  Commonwealth
  Games  in  1998  will initially have 80  gates  with  two
  parallel  runways.   The  airport  will  also  become  an
  integrated  logistic  hub  with  the  latest  in  IT   to
  facilitate  movements  of people and  goods.   The  first
  intelligent  garden  city, Putrajaya,  will  be  our  new
  administrative  capital  where most  ministries  will  be
  relocating beginning with the Prime Minister's office  in
  1998.   Putrajaya is Malaysia's new electronic Government
  administrative centre.  It will provide a  balance  urban
  environment  for 250,000 people served by  state  of  the
  art  communications  and  transportation  systems.   Next
  door  will  be  Cyberjaya,  a  garden  city  designed  to
  provide the physical and psychological spaces needed  for
  productive  contemplation and  creativity  in  a  relaxed
  atmosphere.   It will be built around the new  Multimedia
  University,  the  first phase of which will  be  open  in
  1999.   Cyberjaya  will provide top  quality  intelligent
  buildings,  multimedia  enterprise  estates,  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.
  
  -  Second,  the  MSC   will   have   the   world's   soft
  infrastructure   of   supporting   laws,   policies   and
  practices.   This includes a comprehensive  framework  of
  societal  and commerce-enabling cyberlaws on intellectual
  property,  digital  signature, computer  crime,  distance
  learning,  telemedicine, and electronic Government.   For
  example,   our  new  Digital  Signature  Act  creates   a
  regulatory  framework for verification and  certification
  by  the authorities and severe penalties for cyber-fraud.
  We   will  be  aggressively  enforcing  our  intellectual
  property  and  anti-piracy laws.  The  set  of  cyberlaws
  will  be  enacted by Parliament over the next few months.
  In  addition, we are developing a Multimedia  Convergence
  Act  that  will  merge and update our telecommunications,
  broadcasting,  and  information laws to  reflect  today's
  rapid  technological convergence.  We hope to enact  this
  new  law  before the end of 1997.  Finally, we  know  how
  critical skilled knowledge workers are and have a  series
  of   educational  and  training  initiatives  across  the
  country.   All schools will be connected to the  Internet
  by  2000  and  the Multimedia University  is  planned  to
  operate  in partnership with MSC companies to ensure  its
  graduates meet their skill requirements.
  
  -   Third, the  MSC  will leapfrog  available information
  infrastructures  with  2.5-10  gigabit  Open   Multimedia
  Network  that will use the latest ATM switches to provide
  fiber  to  the building.  This network will have  a  five
  gigabit  international gateway with direct links  to  the
  U.S.,  Japan,  Europe, and other ASEAN  countries.   This
  will   be   operational  by  1998.   Value-added  service
  providers will be able to compete freely on this  network
  with  no restrictions on foreign ownership and cost-based
  interconnect tariffs.  Telekom Malaysia has committed  to
  offer  competitive tariffs that are comparable or  better
  than  other global carriers and will provide world  class
  network performance standards.
  
  - Fourth, a fully  empowered  one-stop  shop called   the
  Multimedia   Development  Corporation  (MDC)   has   been
  created  to  manage and market the MSC.  The  mission  of
  the  MDC  is to create the best environment in the  world
  for   private  sector  companies  to  pursue   multimedia
  businesses.   The MDC will be opening ten offices  around
  the  world over the next two years so it can be close  to
  the  companies who will be its clients.  In addition, the
  MDC  has been incorporated under the Companies Act so  it
  will   have  the  required  responsiveness  and  not   be
  constrained  by bureaucratic practices.  The  MDC  has  a
  free  hand  to hire the best people in the world,  and  a
  business  plan to serve the needs of companies relocating
  to   the  MSC  both  before  and  after  they  decide  to
  establish  operations  in  Malaysia.   The  Deputy  Prime
  Minister and I will personally oversee the activities  of
  the   MDC  and  will  resolve  issues  brought   to   our
  attention.
  
  13.   In  short, Malaysia and its Government is taking  a
  single-minded  approach to developing the  country  using
  the  new tools offered by the Digital Age.  The MSC is  a
  pilot  project  for harmonising our entire  country  with
  the  global forces shaping the Information Age.  Phase  1
  involves  making the MSC a success by learning  from  our
  partners  and from the experience we gain; Phase  2  will
  link   up   with  other  islands  of  excellence   within
  Malaysia;  and Phase 3 involves making all of Malaysia  a
  Multimedia  Super-Corridor that  is  connected  to  other
  smart-regions around the world.  I expect Malaysia to  be
  in  the  final  phase  by 2020 as we become  a  developed
  nation.
  
  14.    To  meet  the  needs  of  leading  multimedia  and
  entertainment  companies,  Malaysia  is  offering  a  ten
  point  Multimedia Bill of Guarantees.  The Government  of
  Malaysia  formally commits the following to all companies
  receiving  MSC  Status  from the  Multimedia  Development
  Corporation:-
 
  a.  Malaysia  will  provide  a  world-class physical  and
      information infrastructure;
  
  b.  Malaysia will allow unrestricted hiring and  entry of
      foreign    knowledge  workers  in  the  MSC  with  no  
      employment restrictions;
  
  c.  Malaysia   will  ensure  freedom of ownership  of  IT
      companies located in the Corridor;
  
  d.  Malaysia  will  allow  freedom  of  sourcing  capital
      globally  for  MSC   infrastructure  and  freedom  to
      borrow funds anywhere;
  
  e.  Malaysia   will    provide    competitive   financial
      incentives  including  no income tax or an investment
      tax allowance  for  up to  ten  years, and no  duties
      on  the import of multimedia equipment;
  
  f.  The MSC will  become a regional leader in intellectual
      property protection and cyberlaws;
 
  g.  Malaysia will ensure no censorship of the Internet;
   
  h.  The  MSC  will  have globally competitive  telecoms
      tariffs;
         
  i.  Malaysia will tender key MSC infrastructure  contracts
      to leading companies willing to use the MSC  as  their
      regional hub; and
   
  j.  Malaysia will provide  a high  powered  implementation  
      agency to act as an effective `one-stop shop' to ensure
      the MSC meets company needs.
  
  15.    The   Multimedia   Development   Corporation    is
  registering  interested  companies  and  will  be  taking
  formal  applications for companies seeking  `MSC  Status'
  in  March.   This entitles the company to  the  financial
  incentives   and  the  Multimedia  Bill   of   Guarantees
  described above if the new operations of the company  are
  located in a designated city such as Cyberjaya.
  
  16.   I  hope you will consider becoming our partners  in
  this   exciting  endeavor  to  build  the  world's   best
  environment  for  multimedia and  digital  entertainment.
  Hollywood  is the undisputed movie capital of the  world.
  Working together, it may be possible to expand this  into
  other  realms such as games or interactive entertainment.
  Although  technology and information will move  more  and
  more  freely over the coming decades, the scarce resource
  will  always  be  creativity.  Since  you  have  this  in
  abundance, I hope we can connect and use some  of  it  to
  define the frontier of multicultural content creation  in
  the Digital Age.
  
  17.   Now that you have heard some of my thoughts, I look
  forward to listening to yours.

 
 



 
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