IMP3 contains strategic thrusts and policy measures for specific areas:

• External trade;
• Investments;
• Development of SMEs;
• Branding;
• Growth areas in the manufacturing sector;
• Growth areas in the services sector;
• Development of the halal industry;
• Enhancing domestic capabilities;
• Human resource requirements;
• ICT and other technology developments; and
• Logistics.

INFORMATION AND COMMUNICATION TECHNOLOGY AND OTHER TECHNOLOGY DEVELOPMENTS

Strategic Thrusts

1. Enhancing the awareness of the trends on and potential benefits from the greater adoption of ICT and other technologies
2. Improving international linkages in ICT and other technology developments to facilitate the sourcing of global knowledge
3. Nurturing and fostering collaborations between domestic business entities and foreign technology providers to accelerate technological diffusion, adoption and adaptation
4. Integrating Malaysian-owned companies into the global supply chains
5. Promoting ICT and other potential technologies in the services sector
6. Intensifying private sector investments, including foreign direct investments (FDIs), to enhance technological capabilities and transfers
7. Establishing a data centre for developments and applications of ICT and other technologies
8. Building domestic technological capacities and capabilities
9. Developing programmes on human resource development (HRD) to support technological enhancements in the manufacturing and services sectors
10. Enhancing the institutional support in facilitating technological developments and applications

Progress Report for 2008

OVERALL PROGRESS

1. Ten strategic thrusts have been formulated under the IMP3 on information and communication technology (ICT) and other technology developments. The thrusts have been broken down into 47 strategies. An Action Plan for 2008 has been drawn up which involves all the relevant ministries and agencies to facilitate the implementation of these strategies. 
    
2. In general, progress was recorded in the implementation of the strategies. Eight of the strategies had met their measurable output or end results set for 2008, nine were completed, 12 were in an advanced stage of implementation, nine in substantive stage and 14 in initial stage. 
    
3. Among the significant developments in 2008 were:
   • the holding of 16th World Congress on Information Technology (WCIT) in Kuala Lumpur. Arising from the event, 20,000 job opportunities were created and RM8.3 billion worth of sales and investments were secured. In conjunction with the event, 800 business meetings were held, creating a potential of RM1.24 billion business opportunities, RM2 billion investment and 13,000 job opportunities;
   • nurturing of 54 MSC-status Malaysian companies by MDeC to achieve global recognition through its Capability Development Programme;
   • undertaking of technology and innovation initiatives by 13 centres of excellence by industry and universities; and
   • development of 'Sub-One Thousand Ringgit Computer' was completed. Commercial production of the computer is dependent on demand.

PROGRESS IN STRATEGIC THRUSTS

Enhancing the Awareness of Trends and Potential Benefits from Technologies

4. Efforts were continued to encourage the involvement of companies and various groups in the ICT industry, including organising outreach programmes through seminars and workshops on the latest technologies. In 2008, a major event was the holding of WCIT and related meetings and seminars:
   • MSC Malaysia International Advisory Panel Meeting;
   • UNESCO STI Centre Governing Board Meeting;
   • World Cyber Security Summit;
   • Grip Computing Conference;
   • PC Fair 2008;
   • MM Global;
   • Global Innovation Summit;
   • IMPACT International;
   • Multilateral Partnership on Cyber Terrorism;
   • Global Alliance for ICT and Development (UN-GAID);
   • Cyber Development Corp (CDC);
   • Commonwealth Telecommunication Organisation (CTO) e-Governance Asia 2008 (e-Gov); and
   • PIKOM Software and Services Showcase (PS3). 
      
5. Significant outcomes of the WCIT were:
   • RM8.3 billion in sales and investments secured;
   • 20,000 jobs created;
   • 800 Business meetings held, which created a potential of:
     • RM1.24 billion in business opportunities;
     • RM2 billion in investments; and
     • 13,000 job opportunities.

Improving International Linkages to Facilitate the Sourcing of Global Knowledge on Technologies

6. Initiatives were undertaken to further develop and improve existing bilateral, regional and multilateral cooperation programmes in promoting and strengthening development activities in ICT and science, which would eventually assist Malaysian companies in creating international networks and strategic partnerships. In 2008, activities included:
   • Malaysia entering into multilateral ICT co-operation through Global Alliance for ICT and Development (UN-GAID);
   • networking with technology sources and recipient countries through WCIT, which resulted in many benefits, including opportunities in foreign direct investments, domestic trade and investments, and tourism; and
   • signing of Memoranda of Understanding (MoUs) by Persatuan Industri Komputer Malaysia (PIKOM) to facilitate trade between PIKOM members and members of reciprocating organisations in other countries, namely Nigeria, Afghanistan and 3 other organisations in China representing various regions in China.

Nurturing Collaborations

7. Cooperative initiatives were undertaken by MDeC, MYNIC and Cybersecurity Malaysia with foreign ICT related companies and agencies, which opened up opportunities for knowledge acquisition, product and process development, training and employment. In 2008, progress included:
   • adoption of ICT Roadmap, which focuses on talent development, infrastructure development, commercialisation and growth as well as institutional co-ordination;
   • signing of MoUs by CyberSecurity Malaysia with National Agency for Computer Security in Tunisia and Indonesia Security Incident Response Team On Internet Infrastructure; and
   • sharing of Malaysia’s experience in ICT development with several developing countries, including Brunei Darussalam, Bangladesh and Kenya.

Integrating Malaysian-Owned Companies into the Global Supply Chains

8. Malaysian companies were encouraged to be involved in a greater utilisation of applications in ICT in management and production processes to enhance their technological capabilities and productivity to enable them to operate in a more globalised operating environment. In 2008, progress included:
   • nurturing of 54 MSC-status Malaysian companies by MDeC to achieve global recognition through its Capability Development Programme;
   • undertaking of research collaboration by MIMOS with 12 local universities and 19 foreign universities/research institutes;
   • nurturing of 133 local knowledge-based companies by Technology Park Malaysia (TPM) under its technology incubation programme, which provides office premises with advanced physical infrastructure. TPM has also established three Centres of Excellence through its subsidiaries to work with local companies in technology and innovation initiatives. Each centre of excellence focuses on its technology domain, namely ICT, biotechnology and engineering. These centres provide support services to the knowledge-based companies through the provision of advanced facilities, laboratories, technical and business consultation and assistance to accelerate their growth in their technology business endeavours;
   • implementation of the MSC Malaysia Capability Development Programme to assist local ICT organisations to maximise their potential by adopting global good practices and process improvements. As of October 2008, the programme assisted 412 local ICT professionals and 58 companies in obtaining certifications; and
   • establishment of six centres of excellence with universities (IIUM, UMS, UNIMAS, UKM, UTM and UTAR) and four industry centres of excellence with Cisco, Microsoft, Agilent Technologies and SGI.

Promoting Technologies in the Services Sectors

9. Significant progress was recorded in promoting the application of technologies in the services sector in the areas of tele-health and e-commerce, local content industries and the implementation of the MyICMS 886 Strategy. In 2008, progress included:
   • MyHEALTH Portal, accredited by the Ministry of Health. The portal is interactive and currently stores more than 629 health articles for all ages, as well as updated health alerts and a directory of medical facilities worldwide; and
   • Teleconsultation project, which is available for specialist care services for referral of cases by doctors at 38 healthcare centres and 53 sites nationwide. A total of 3,062 cases were transmitted through Teleconsultation since June 2008.

Intensifying Private Sector Investments to Enhance Technological Capabilities and Transfers

10. Significant progress was recorded in the efforts to enhance access to public research activities and encourage greater involvement of industry in R&D activities. Activities in 2008 included:
    • the establishment of R&D facilities under Technofund, Innofund and eContentfund; and
    • a new fund was allocated for research projects by universities in three selected focus areas, namely emerging wireless technology, future spectrum management systems/tools, and spectrum demand and spectrum pricing.

Establishing Data Centre for Developments and Applications of ICT and Other Technologies

11. Progress was recorded in the efforts to establish a database system for co-ordinating and disseminating data and information on ICT:
    • undertaking of World Bank Study by EPU on "Improving GDP Contribution and Productivity of Services Sector"; and
    • undertaking of an impact survey of MSC by MDeC to serve as an indication of the progress of MSC Malaysia Status companies and their impact on industries and the country's economy.

Building Domestic Technological Capacities and Capabilities

12. Efforts have been undertaken towards building domestic technological capacities and capabilities through R&D activities. Progress in 2008 included:
    • increase in patent and utility innovation applications by 128% to 5,403 in 2008 from 2,372 in 2007. Of the total applications, 4,539 were by foreigners and 864 local owners;
    • investment in new technologies, such as the Trade Mark and Patent Search Tools and Patent Administration system, by MyIPO to improve its delivery service and response time; and
    • availability of online services for search and filing of patent and trade mark applications, as well as payment. Online search and filing for Industrial Design and Geographical Indications will be made available to the public in 2009.

Developing Programmes on Human Resource Development

13. In respect of human resource development, progress included:
    • undertaking of initiatives to align present curricula and develop new curricula of training institutes and institutions of higher learning to match the requirements of industries in R&D, creativity and innovation. A significant outcome was the iCampus programme curriculum, involving 15 institutes of higher learning. The programme was introduced by MDeC and Infosys (India), with the objective of producing more knowledge workers with relevant or latest technology programming capabilities. As at 2008, 100 students had completed the training under the programme; and
    • the Brain Gain Programme by the Ministry of Human Resources to encourage more Malaysians residing abroad who possessed skills and expertise in ICT and other technologies to return and serve in Malaysia. A total of 158 approved applicants in IT and science and technology had returned to Malaysia under the programme. In conjunction with this, MOSTI has developed a database for the programme, which stores data of scientists, including scientists residing abroad. As at 31 December 2008, 519 Malaysian scientists residing abroad, including those skilled in ICT, had been registered in the database.

Enhancing the Institutional Support in Facilitating Technological Developments and Applications

14. In respect of enhancing the institutional support in facilitating technological developments and applications, five funds had been established. Progress of the funds:
    • TechnoFund - To date, 48 projects have been approved, with 21 in 2008 and one having been completed;
    • ScienceFund - To date, 500 projects have been approved, with 126 in 2008 and six having been completed;
    • Inno Fund - To date, 53 ICT projects have been approved, with 20 in 2008;
    • eContentFund - To date, 65 projects have been approved, with 41 in 2008 and eight having been completed; and
    • DAGS Fund - By December 2008, MOSTI had approved 14 projects, which currently are in various stages of development.
       
15. For applications related to ICT security by industries, CyberSecurity Malaysia has developed guidelines on System Management and Best Practices (SMBP), known as ISMS (Information Security Management System). The system had been certified as complying to ISO/IEC 27001:2005 by SIRIM QAS International Sdn Bhd.

IMPACT OF ECONOMIC CRISIS TO THE INDUSTRY

16. Due to the worldwide economic crisis which began in mid-2008, the strategies and overall implementation of ICT were affected by:
    • reduction of export demand for ICT products;
    • reduction in local demand for computers and ICT products;
    • effect on internet/broadband penetration; and
    • reduction in output and retrenchment of staff.

STRATEGIES TO ADDRESS THE ECONOMIC CRISIS

17. As part of the RM7 billion stimulus package introduced by the Government on 4 November 2008, measures related to the ICT industry include:
    • allocation of RM1.5 billion under Investment Fund to attract more investments from the private sector, with consideration for high value-added and high impact strategic projects, including in terms of technology and knowledge workers. The fund attracted investors in the high-technology service sector as well as in the high value-added manufacturing sector, such as solar panel production, aerospace industry and aviation components;
    • allocation of RM400 million to expedite the implementation of High Speed Broadband (HSBB) project. Among the benefits of the project include increasing competency and effectiveness of economic activities, contributing to GDP growth and increasing job opportunities. By the end of 2009, this service is expected to be available to 300,000 premises, including the Klang Valley and industrial areas, such as Bayan Baru, Senai and Kulim.

CONCLUSION

18. In general, significant progress was recorded in implementing the Action Plan towards the realisation of the strategies on ICT and other related technologies. The areas of progress included enhancing the awareness of the trends on and the potential benefits from the greater adoption of ICT and other technologies, improving international linkages to facilitate the sourcing of global knowledge on technologies and nurturing collaborations.

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