ICT is a tool to allow the agriculture businesses to manage information

1. MSC Malaysia
Contribution in the Agriculture Sector
A P R E S E N T A T I O N B Y :
Suhaimi Nordin
Senior Manager, Internet Based Business
Multimedia Development Corporation
6 SEPTEMBER 2007

2. Agenda
Introduction
ICT Adoption in Agriculture
Challenges in Agriculture
Benefit of ICT in Agriculture
MDeC’s Agriculture related projects
Conclusion

3. 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

4. “. . . I BELIEVE THAT I.C.T.
HAS THE POWER TO
IMPROVE THE ECONOMIC
CONDITION OF, AND
QUALITY OF LIFE
ENJOYED BY, THE
PEOPLE . . .”
Opening remarks by by YAB Prime Minister, during the
9th MSC International ADVISORY Panel Meeting.
8 September, 2005.

5. Malaysia In Transition
ENGINE OF GROWTH FOR THE K-ECONOMY
Malaysia as
exporter of
technology
Source : National Economic Action Council, Malaysia

6. MSC Malaysia Vision
The MSC is about changing the way
we live and work … this special area
will be a global test-bed for:
 the new roles of government;
 new cyber laws and guarantees;
 G2B and B2B collaborations;
 new broadcasting;
 education;
 delivery of healthcare; and
 new technologies …
Government’s Policy Statement at Launch of MSC, 1 August 1996

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

8. MSC Malaysia Milestones & National Rollout
PHASE ONE: 1996-2003 PHASE TWO: 2003-2010 PHASE THREE: 2010-2020
Successfully create Grow MSC into Transform Malaysia into
the MSC a global ICT hub a Knowledge society
Northern Corridor
Eastern Corridor
Central Corridor
Cyberjaya Sabah
Central Corridor
Cyberjaya Southern Corridor
Sarawak
1 Corridor Web of corridors All of Malaysia
Comprising 5 Cybercities National Rollout comprising National Transformation enabled
Cybercities and Cybercentres By MSC Malaysia environment

9. 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

10. MSC Malaysia National Rollout: Partnering with
States to Transform the Country
MSC Malaysia National MSC Malaysia National Rollout
Rollout 2004  2010 to the States is to spread MSC
Malaysia’s benefits and value
Northern Corridor
Eastern Corridor
Sabah propositions to all Malaysians
by reaching out to both industry
Central Corridor
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.

11. Agenda
Introduction
ICT Adoption in Agriculture
Challenges in Agriculture
Benefit of ICT in Agriculture
MDeC’s Agriculture related projects
Conclusion

12. MSC ICT/E-Commerce Strategic
Direction Study
In 1997, The Inter Agency Task Force
on E Commerce (IAFTEC) was
established reporting to the National
E-Commerce Committee (NECC)
with the aim to evolve a national
strategy for a competitive Electronic
Commerce/ICT environment in
Malaysia.
Under the Electronic Commerce
Strategic Direction II (SD2) for
Malaysia, a study on the 5 identified
sectors with low ICT uptake were
undertaken in 2004.

13. E-Commerce Focused Sectors
Based on the SD2 study, the Agriculture
sector focuses on the following:-
1. Creating and improving the Supply
Chain Management
2. Creating a community development
programme
3. Creating a registry of agriculture
products with traceability features
4. Creating a value-added services
specifically tailored to modern farmers

14. ICT Uptake in Agriculture
Level of E-Commerce by Sector
90 High Medium Low
80
70
% of Respondents
60
50
40
30
20
10
0
Agriculture Construction Manufacturing Retail Tourism
Source: Frost & Sullivan 2003
The Agriculture sector has the lowest level of E-
Commerce whilst the highest level of e-enablement
was demonstrated by the Tourism sector.

15. Productivity in Agriculture
Growth in Agricultural Land, Labour and Capital • Intensive and
Productivity 1991 - 2000 (%) integrated farming
• Better farm
12.00
management
10.00
8.00 practices.
6.00
• Usage of labour
4.00
2.00
saving technology
0.00
Capital Productivity
Land Productivity Labour Productivity
-2.00 • Slow adoption of
-4.00
-6.00
technology by small
-8.00 farmers.
-10.00
• Reduced in private
Source: NPC Productivity Report 2001. investment due to
the Economic crisis
of 1987 and 1997

16. Factors Promoting ICT in Agriculture
Reduced Cost
Improved reliability
Increased awareness
Ease of operability & Integration
Government incentives
Competition pressure
Better training
Reducing cost, increasing
Global trends
awareness and improving
Trading partners using the applications
reliability is the most
ROI
effective way to increase
Demand by business strategy E-Commerce usage in the
Enhanced security Agriculture sector.
Senior Management involvement
0 5 10 15 20 25
Source: Frost & Sullivan 2003 RELATIVE IMPORTANCE

17. ICT in Agriculture
ICT as tools to facilitate local and global
agricultural surveillance:
• Better agricultural
methods
• Faster contacts with
consumer & providers
• Up-to-date information
• Central registry
• Decision Tools
• Food Safety

18. Value Proposition
Key Objectives with ICT Will assist in the objectives of:
1. Allows for efficient dynamic  Encouraging modern farming
capturing and detailed to increase productivity &
analysis of strategic quality;
agriculture information for
better planning and
 Increasing income of our
forecasting of agriculture farmers;
produce;  Malaysia to be an exporter
2. Provide better access to
of quality agricultural
market demand and produce;
agriculture know-how and  Increases sector contribution
best practices; to
3. Bring farmers closer to national income and export
retailers and international earnings.
markets.

19. Agenda
Introduction
ICT Adoption in Agriculture
Challenges in Agriculture
Benefit of ICT in Agriculture
MDeC’s Agriculture related projects
Conclusion

20. Challenges In Agriculture
1. The impact of globalisation towards agriculture:
 Only the lowest-cost producers can
make money from their products
 Producers have to be sensitive to market
demands and trends
 Specialisation and value-add are the key
to profitability
2. Consumers are becoming very demanding:
 The safety of food products has to be
proven
 Purchasers are looking for extra
information

21. Consumer Demands
Key Areas of Consumer
Needs and Preferences
QUALITY is crucial in the
demand of Consumers
multiple dimensions

22. Agenda
Introduction
ICT Adoption in Agriculture
Challenges in Agriculture
Benefit of ICT in Agriculture
MDeC’s Agriculture related projects
Conclusion

23. Benefit: E-Commerce Usage
Overall Benefits Experienced as a Result of E-Commerce Usage
Enhanced Customer Relations
Increased Productivity
Improved Revenue
Reduced Cost
Improved Competitiveness
Enhanced Employee Relations
0% 10% 20% 30% 40% 50% 60% 70% 80%
Source: Frost & Sullivan 2003
Enhancing customer relations, increasing
productivity and improved revenue are the most
important benefits experienced in the Agriculture
sector as a result of E-Commerce usage.

24. Benefit: Value Food Chain
• Development, validation and harmonisation of technologies and
methodologies in good farming methods
• Registry of data capture throughout the food chain
• Increase consumer confidence in food products

25. Agenda
Introduction
ICT Adoption in Agriculture
Challenges in Agriculture
Benefit of ICT in Agriculture
MDeC’s Agriculture related projects
Conclusion

26. Information is key
 It is information which can add value towards
the agriculture business
 ICT is just a tool to allow the agriculture
businesses to manage information
 Information is the key to:
 Improved efficiency and productivity of farming
 Knowledge and responsiveness to market
demands
 Differentiation from commodity products
 Assuring and demonstrating food safety
 Communicating high-value features to
consumers

27. Catalyst for ICT agriculture adoption

28. MDeC’s Agriculture related projects
1. ECR-CIR
Efficient Consumer Response – Central Item Registry
2. FarmersDirect.com
3. MSC Malaysia Flagship: Smart Card
4. Food Traceability

29. MDeC’s Agriculture related projects
ECR-CIR
Project Description

30. ECR-CIR
Efficient Consumer Response – Central Item Registry
1. Raise the level of
productivity by reducing
transactional errors and
improving data accuracy and
customer service
2. Conform to global
standards and
participation in global
retailing
3. Increase visibility and
competitiveness in export
markets

31. ECR-CIR
Efficient Consumer Response – Central Item Registry
Central Item Registry is an electronic catalogue for the retail
industry that contains information of a product, description, item
number, brand name, dimensions, image and other details that
form the database of the product.

32. Data Synchronisation and Global Item
Registry Initiatives
GS1, BELGIUM/LUXEMBOURG
GS1, UK
GS1, CANADA GS1 KOREA
GS1,
HONG
KONG
GS1, U.S.A. GS1,
SINGAPORE
GS1, AUSTRALIA

33. MDeC’s Agriculture related projects
FarmersDirect.com
Project Description

34. FarmersDirect.com
MOA Initiatives Market trends and fulfillment relationships
Agrolink, BDC.com,
SDVI, MARDI, etc Upload GS1 for retailers’ usage
and download info for internal use
Large farmers
FarmersDirect
Farmer
Associations  Repository of farming
Farmers produce based on GS1 Download GS1
E.g. NAFAS,
standards; for internal use
LPP.
Agencies within  Features of food Trading transactions
Retailers
MOAABI traceability;
Farmers E.g. FAMA, LKIM,  E-Trade Facilitation
Export
• E-procurement Markets
• E-Stock
• E-Payment
Farmers AgriBazaar
• E-Logistics Trading transactions Direct
Exports
Farmers Wholesalers
Towards improving the agriculture
Buyers
supply chain management

35. MDeC’s Agriculture related projects
MSC Malaysia Flagship
Smart Card

36. 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)

37. MSC Malaysia Smart Card Flagship:
Reaching out to the People
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

38. MDeC’s Agriculture related projects
Food Traceability
Project Description

39. Defining Traceability
The European Union definition of traceability:
The ability to trace and follow a food, feed,
food-producing animal or substance
intended to be or expected to be
incorporated into a food or feed through all
stages of production and distribution
– EU Regulation-178/2002

40. Unique Identification
Food operators
Identification – the
Food
Food
production key to traceability
consignments
Unique standardised
ISO-based Inspection numbering should be applied
Contact unique records and along the food chain.
material identification certificates
categories This makes traceability
numbering
important to global food
business as it is actually
Vehicles
Contact material Transport
necessary to continue
consignments monitor from raw materials to
Food final products.
Storage
FROM FARM-TO-TABLE

41. Agenda
Introduction
ICT Adoption in Agriculture
Challenges in Agriculture
Benefit of ICT in Agriculture
MDeC’s Agriculture related projects
Conclusion

42. Conclusion
Bringing ICT to farmers
1. Increase productivity through automation of farming techniques
2. Increase profitability through an efficient supply chain
3. Opening of global market potential
From the above factors, the following can be achieved:
– Better farming techniques
– Experience of growth and profitability
– Network effect of adoption within
communities and supply chains
– Global market outlook

43. Thank you

44. MSC Malaysia:
Contribution in the
Agriculture Sector
6 S E P T E M B E R 2 0 0 7
A P R E S E N T A T I O N B Y :
Suhaimi Nordin
Senior Manager, Internet Based Business
Multimedia Development Corporation