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CHAPTER 2Malaysias Multimedia Super Corridor,MSC,Agenda,IntroductionAn overview of MalaysiaFlagship ApplicationsFramework of IT-Led DevelopmentComparisons with similar initiativesPros and cons of setting up ICT industry in MalaysiaInput V.S. Output measuresConclusionStudy Questions,Introduction,Importance of Information and Communication Technologies (ICTs)Success of the “tiger economies” in AsiaThe Multimedia Super Corridor Leapfrog Malaysia into the Information Age,Overview of Malaysia,GeographyPhysically divided into two parts330,000 sq. kmPeopleabout 20 millionGovernmentconstitutional monarchyEconomystable; steadily growing,Flagship Applications,Electronic GovernmentMultipurpose Smart CardSmart SchoolsTelemedicineR&D ClusterWorldwide Manufacturing WebBorderless Marketing,Framework of IT-Led Development,Environmental Factors,Political StabilityMSC depends on external investment The role of Dr. MahathirIT has little impact on people in rural areasCensorship of government,Industrial Policy,Information skills dominateIT educationIT syllabus, training organizations, research center, EnglishScarcity of intellectual capital1980smajor structural and infra-structural changes1990srapid introduction of new technologies and tools,IT Diffusion,The worlds largest electronic components exporterMini-JapanMajor supplier and marketUSATrade surplus in computers and telecommunicationSignificant disparities,Industry Structure,Free trade zonesExperience of Indian software industryCustom software workUnfamiliarity with foreign markets and distanceHigh advertising and marketing expensesBody shopping,Economic Payoffs,Unemployment rate in 1996 was 2.6%Reduce dependence on MNCsProductivity growth of 5.4% during 1990-1997; 5.7% in 1996Exceeded 7 countries of the OECD, including Taiwan (5.4% in 1996)Maintain the GDP growth at least 7% per year,Comparisons With Similar Initiatives,Regional competition will affect MSCSingapore, the “intelligent” nationHong Kong, laissez-faire approachTaiwansmall manufacturersSouth Koreaaggressive policies,Establishing ICTs Industry in Malaysia,AdvantagesLow cost of space and skilled laborMulticultural work forceGovernment incentivesStable business and political environment,Establishing ICTs Industry in Malaysia (Contd),DisadvantagesLack of skilled workersLow diffusion of IT,Input and Output Measures,Input measureRequisite level of investment by external IT companies must be achievedLow start-up costOutput measureGrowth in the range of skills in the workforceImproving balance of paymentsRising GDP per capita,Conclusion,The most ambitious scheme in the worldApproved by Bill Gates in Malaysian press and Guardian newspaper in UKSome criticism in Business
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