MDeC - Digital Inclusion Roadmap

M A L AY S I A‟ S D I G I TA L I N C L U S I O N R O A D M A P

MSC Malaysia
Digital Dividend
1 6 A U G U S T 2 0 0 7

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Agenda
1. Malaysia’s Vision
2. Understanding the Digital Divide
3. Issues and Challenges
4. National Initiatives
5. MSC Malaysia: Realising National Mission
6. Moving Forward

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Malaysia‟s VISION 2020
Vision 2020 – a national vision of creating
a developed nation in our own mould
 Characteristics of a Vision 2020 society:
 Strong moral and ethical values self-regulating
and self-managing empowered through
information and knowledge based on the
concept of the dignity of human-kind
 Characteristics of a Vision 2020 economy:
 Robust and resilient competitive and dynamic,
but with fair and equitable distribution of
wealth
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FIVE (5) THRUST AREAS OF 9TH MALAYSIAN PLAN
(2006 – 2010)

“Malaysia has made a firm
commitment to embrace ICT as part
of its strategy to transform itself into a
Knowledge-Based economy and
values-based society”
YAB Dato’ Seri Abdullah Haji Ahmad Badawi
Prime Minister of Malaysia
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Agenda
6. Moving Forward

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Definitions of the Digital Divide
National Strategic Framework for Bridging the Digital Divide (NSF – BDD)

The Digital Divide is a socio-economic situation that arises
when a segment or segments of society have unequal
access to contemporary Information and Communication
Technologies (ICTs)

 First generation definitions refer to access to
Information and Communication Technologies (ICTs)

 Second generation refers to access plus adoption of
ICTs

 Third Generation Definition: NSF – BDD Definition
“The digital divide is seen more in terms of the value of
the developmental benefits that ICTs make possible
than in the actual physical access to the technology.”

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Understanding the Digital Divide
Social & economic
value of ICTs
Socio-economic value of ICTs

VALUE GAP
Intensity of
ICT adoption

ADOPTION GAP
Diffusion of ICTs

Our current
state
ACCESS GAP

Time
PHASE 1. Employ indicators of ICT diffusion

PHASE 2. Employ indicators of
intensifying adoption
PHASE 3. Employ indicators of
socio-economic value
7/38

Malaysia Strategic Framework for
Bridging Digital Divide
E-Inclusion: Employing ICT to address the problems of the digital-
divide and social exclusion and promoting opportunities for the
economic and social empowerment of all citizens.

Access Adoption Value
Promoting regular and Ensuring the social &
Delivering access to the
widespread use of ICT- economic value of ICT is
ICT infostructure to based content in realised by underserved
everyone everyone’s daily life Malaysians

Oversight COORDINATION : EVALUATION Evidence
Policy and Planning

Partnerships
Programme Measurement
Implementation
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Thrust for National Strategic
Framework - Bridging Digital Divide
Increase access to and
1 adoption of ICT by
underserved groups
T
A
Youth

R Disabled
Create value in BDD
2 programmes
G
Rural
E
Develop local content T Poor
3 through participatory
approaches Indigenous
G
Cultivate multi-stakeholder R SMME
4 collaboration and
coordination
O
Elderly
U
Institutionalise evidence- P Women
5 informed policy and practice
9/38

Institutional Arrangement for Bridging Digital Divide
PM

MOSTI National IT Council Ministries
(NITC)

National IT Council
(NITC)

National BDD Coordination Committee
Chair: Director General Economic Planning Unit, Prime Minister’s Department.
Member: Ministry of Entrepreneur & Cooperative Development, Ministry of Science, Technology &
Information, Ministry of Finance, Ministry of Rural & Regional Development, Ministry of Youth and
Sports, Ministry of Women, Family & Community Development, MHLG, Implementation & Coordination
Unit, Multimedia Development Corporation, other relevant agencies.

Ministry of Rural & Ministry of Women, Ministry of Ministry of Youth and
Regional Development Family & Community Entrepreneur and Sports
Rural Committee Development Cooperative Youth Committee
Indigenous Women Committee Development
Committee Elderly Committee SMMEs Committee
Poor Committee Disabled Committee

Committees under Lead Agencies are represented by:
Government; Private sector; and Underserved Communities (including NGOs).
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Agenda
3. Issues & Challenges
6. Moving Forward

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Penetration Rates at a Glance
Inter net Dial- up
No. of users Penetration
Year („000) Rate (%)
2005 11,016 13.9
2006 11,292 14.0
2007 (Q1) 11,373 14.0

Broadband
No. of Penetration
Year subscriptions
(„000) Rate (%)

2005 501.7 1.9
2006 897.2 3.3
2007 (Q1) 991.8 3.7

Source: Malaysian Communication and Multimedia Commission (as of Q1 2007) 12/38

Penetration Rates at a Glance
Cellular Phones
No. of Penetration
Year subscriptions
(„000) Rate (%)

2005 19,545 74.1
2006 19,464 72.3
2007 (Q1) 20,819 77.0

Personal Computers
No. of household Penetration
Year
(„000) Rate (%)
2003 4,200 16.6
2004 4,900 19.1
2005 6,600 24.0

Source: Malaysian Communication and Multimedia Commission (as of Q1 2007) 13/38

Infrastructure & Access Divide
Concentration of Internet users in Malaysia

Northern Lack of community-based
projects, initiatives or training
are offered in rural locations.
14% 5%

Eastern
7%
Central
Sabah
56%
Southern
11%
Sarawak
Majority of ICT-related 7%
economic and job
opportunities are
concentrated in Central Lack of incentives exist for
(Klang-Valley Area) companies to offer competitive
services to rural areas.
14/38

Issues and Challenges
Affordability
 PC cost is still high –RM2,000 or around 14% of
Per Capita while in US, percentage is 2%.
Infrastructure and Access
 Broadband Internet access is limited to 5 KM
from exchange, thus it is only confined to urban
communities (infrastructure constraint)
Mind Gap
 Social factors – income, age, gender, disability,
education, occupation
 Cultural & Behavioral factors –literacy, skills &
learning capabilities, awareness, language,
interest, perception & desire
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Agenda
6. Moving Forward

16/38

e-Inclusion Initiatives
Federal and State Governments projects

 MSC Malaysia Flagship  MIMOS projects: Mobile
Applications Internet Unit and AgriBazaar &
 Pusat Internet Desa (PID) Demonstrator Application Grant
(Rural Community Internet Scheme (DAGS): e-Pekak, e-
Centres) Bario, CyberCare
 Universal Service Provision  National IT Council (NITC)
USP Programme initiated projects: e-Wargakota,
 National Broadband Plan: Warga Emas Network,
EG*Net, SchoolNet, Pesarajaya
Malaysian Research and  Non-governmental / Private
Education Network (MYREN) sector progammes: e-learning
 Kedai.com for life, Maxis Cyberkids
Camps, Microsoft Foundation
 Medan Infodesa (MID) Campaign

17/38

National Broadband Plan: Strategy
Objective: To Create Critical Mass
Projected Broadband Penetration Rates

Year 2004 2005 2006 2007 2008
Broadband
Connections („000) 282 693 1,276 2,009 2,870

Penetration/100
population 1 3 5 7 10

Penetration/100
households 5 11 23 35 50

75% Broadband penetration for
household by 2010

Source: Ministry of Energy, Water And Communications/MyICMS 886 Strategy 18/38

National Broadband Plan: Strategy
Community Telecentres: Connecting Communities
Connections
Community Network
(2006)
Government Departments EG*Net 84,000
(12,000 place of works)
Schools (10,000) SchoolNet 27,000
Universities & Research MyREN 7,000
Institutions
Hospitals and Clinics (4,000) HealthNet 10,000
Libraries (900) LibraryNet 2,000
Internet Community Centres ADSL, WiFi, ISDN 2,000
and VSAT
Total 132,000


Rural Community Internet Centres
Objective: To make up for low internet penetration
Agencies Telecentres No. of Locations

Ministry of Energy, Water And Rural Internet Centres 42
Communications

Ministry of Rural & Regional InfoDesa Programme 20
Development

Malaysian Communication and Kedai.com 60
Multimedia Commission

Total 122


Universal Service Provision (USP)
Objective: Widening Access
1. Implementation of Government USP to connect
rural schools, clinics and rural libraries to ensure
equitable distribution and access to basic
communications infrastructure.
 220 rural schools
 350 rural clinics
 557 rural libraries

2. Implementation of USP programme
using the contributions from the
industry under Malaysian
Communication and Multimedia
Commission.
 Roll out of 86 underserved district

60% coverage for underserved rural
households by 2010

Bridging the Digital Divide Outcomes
(Radial Graph)
Malaysia‟s National Strategic Framework for Bridging the Digital Divide

 Most programmes have achieved
high usage, community
acceptance and user satisfaction
 Staff capability is high
 Service delivery still shows
room for improvement
 Community acceptance of
rural ICT centres is the
strongest influence on the
social and policy
environment.

22/38

Agenda
6. Moving Forward

23/38

“…Emphasis will also be given to empowering the people through ICT. This
stems from my firm belief that ICT should not be elitist, but should touch
the lives of every individual. Hence, a major part of the MSC Malaysia’s
strategy will be to reduce the digital divide, foster transparency and
efficiency, and increase the usage and adoption of ICT so that the benefits
can be felt by the wider community.
In order to narrow the country‟s existing regional economic and digital divide,
the MSC Malaysia will be rolled out to other parts of the country through the
creation of new MSC Malaysia cybercities and cybercentres.”

YAB Dato‟ Seri Abdullah Haji Ahmad Badawi, Prime Minister of Malaysia
8th MSC Malaysia International Advisory Panel (IAP) Meeting, Putrajaya Convention Centre 24/38

MSC Malaysia‟s Contribution to
Realising the National Mission
Facilitating ICT based New Growth Areas:
 Creative Multimedia Content Industry
 Shared Services Outsourcing

MSC Malaysia
Flagship Applications  MSC Malaysia: Nurturing
Human Capital for K-based
Economy

MSC Malaysia
National Rollout
MSC Malaysia National
and Flagship
Rollout will create K-based Applications will
Infrastructure help reduce the
income gap and
the digital divide
25/38

MSC Malaysia National Rollout Agenda
PHASE ONE: 1996-2003 PHASE TWO: 2003-2010 PHASE THREE:2010-2020
Successfully create the Grow MSC into a global Transform Malaysia into a
MSC ICT hub Knowledge society
Northern Corridor
Eastern Corridor

Central Corridor
Cyberjaya Sabah
Central Corridor
Cyberjaya Southern Corridor

Sarawak

M S C M A L A Y S I A 3 S T R A T E G I C T H R U S 26/38
T S

MSC Malaysia National Rollout
Strategic Objectives
Wealth Creation
 To develop and fast-track ICT industry in
States nationwide, to contribute to:
 High value jobs creation
 ICT revenue and exports
Quality of Life
 To extend the MSC Malaysia‟s benefits and
enabling environment nationwide:
 Performance culture for service delivery to
both industry and citizens
 E-enablement of society

27/38

MSC Malaysia National Rollout: Partnering
with States to Transform the Country
MSC Malaysia National
Rollout 2004  2010 MSC Malaysia National Rollout
to the States is to spread MSC
Northern Corridor Malaysia’s benefits and value
Sabah
Eastern Corridor
propositions to all Malaysians
Central Corridor by reaching out to both industry
Cyberjaya
and the general community
Southern Corridor Sarawak
Transform Malaysia Into
A K-Economy & Society by
2020

As ICT plays an ever increasing role in
Malaysians’ economic and social lives, we
cannot leave anyone behind.

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MSC Malaysia: Transforming the
Country into a Global ICT Hub
Terengganu: Developing human capital
Kulim: IC Design and
in preparation for Cybercenter Status
wafer-fab

Penang: Over 110 MSC Pahang: State ICT Blueprint completed.
Malaysia companies. Building up K-Infrastructure
Expected to double in 2
years

Johor: 200 MSC Malaysia
Perak: ICT incubator companies in pipeline.
completed. Building up K-
Infrastructure

KL Sentral: Creative
Incubator. 33 MSC
Malaysia companies and Sabah & Sarawak
rising State ICT Blueprints in pipeline
Building up K-Infrastucture
Melaka: Incubation for
Creative Contents on
Tourism and Heritage Cybercity / Cybercentre Operationlised
Cybercity / Cybercentre planned 29/38

MSC Malaysia Smart Card Flagship:
Reaching out to the People

MyKad significantly improved Governance,
transparency and government services delivery.
 Greatly enhances National Security
 No cloning of chip based ID

 Zero fraud in payment transactions

 Convenience for citizens enhanced
 Reduce queues e.g.. Immigration points,

 Reduced processing time for passport renewal

 150,000 Points-of-Usage

 Access to multiple applications:
 9 On-Card and 29 Off-Card to date

 “ONE COMMON PLATFORM” more than 300 integrated

Government Service Centre (GSC)
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MSC Malaysia Smart Card Flagship:

Community Content Impact on Community
mTr@ders Pasar Tani Traders
e-Nelayan Fishermen
e-Farm Farmer & Farmer Co-op
Vessel Secure Ferry & Vessel Passengers
IMR Citizens
e-District Citizens
e-PAID Muslim Community
e-Masjid Network Muslim Community
e-Resort Tourist
Celik IT Villagers
e-Library Students

31/38

MSC Malaysia Smart School Flagship:

Objective: Quality education
 88 smart schools are nucleus for all 10,000
schools to be „smart‟
 “Quality Education for All” through Education
Development Blueprint (2006-2010)
 Smart School Qualification Standards adopted
for quality assurance

All Schools will be
Smart by 2010

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MSC Malaysia Smart School Flagship:

Smart School Components:
 Teaching-Learning Materials
 Smart School Management System
 Support Services
 System Integration
 Professionally Trained Teachers
 Smart School Assessment System
 Technology Infrastructure
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MSC Malaysia Telehealth Flagship:
Objective: Better healthcare delivery
Teleconsultation:
 38 hospitals providing Teleconsultation Healthcare
services nationwide
 1,000 healthcare professionals trained on Online
Healthcare courses
 Over 2,000 cases have been transmitted through the
Teleconsultation system since it was implemented
Connecting the Rural Clinics
Over 300 rural clinics are connected to Internet
Virtual Library allows healthcare professionals to keep
up-to-date with medical and health knowledge regardless of
geographical locations
Continuing Professional Development
MyCPD web-based application provide information and
simplify the process for training and development of
healthcare professionals
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MSC Malaysia e-Government Flagship:
Objective: Enhancing Government Services
Delivery
 myGovernment (myServices)
portal offers more than 400 online
services and 19 SMS services
 E-Procurement transaction value
grew in 2006: RM 2 billion worth of
contract
 Electronic Labour Exchange
captured 120,000 job seekers,
436,000 vacancies and 17,000
job placement 35/38

Agenda
6. Moving Forward

36/38

Moving Forward
1. Upgrading and expansion of
Communications infrastructure
2. Deployment of cost effective
technologies
3. Ubiquitous infrastructure to support
an advanced applications
4. To enhance availability, coverage
and affordability of access to ICT
Infrastructure and applications
5. To bridge the Mind Gap
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M A L AY S I A‟ S D I G I TA L I N C L U S I O N R O A D M A P

Thank you

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MDeC - Digital Inclusion Roadmap

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