National Ict Policies Print

8/12/2019 National Ict Policies Print

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NATIONAL ICT POLICIES

i)National Broadband Plan

In 2002, there was a slight cheer and euphoria for

the communications and multimedia industry in

Malaysia which had just recorded a continuous

three successive years of growth, following the

turmoil of the Asian financial crisis of 1997 and

1998. It was against this background that the

Industry, under the guidance of the then Ministry

of Energy, Communications and Multimedia and

the Malaysian

Communications and Multimedia Commission

(MCMC) decided on the need to embark on a

project which would plan ahead for the next ten

years in terms of planning for the nation’s

infrastructure,

especially in view of the declining fixed line penetration rate. Against this backdrop, the NationalBroadband Plan (NBP) was developed.

The NBP took almost two years of painstaking consultation, planning and strategising but

nevertheless, looking back, it was a major positive step taken, as the planners already forecasted

in those early days that broadband would become crucial as the next step for the development of

all Internet services in Malaysia and e-Government and e-commerce in particular. The

Government was tasked to embark on a thorough study on the needs of government intervention

in carving out a national plan for orderly and forward looking deployment of broadband supply

in Malaysia.

Under these premises, the Government’s team decided pounced on the opportunity to introduce a

comprehensive National Broadband Plan with the following initial objectives:



Generate adequate supply in terms of broadband infrastructure, via various available

technologies deemed appropriate by 2008;

Stimulate demand to ensure efficient take-up of broadband services via suitable content

& applications services;

Explore various funding mechanisms to finance the project; and

Identify gaps in existing regulations and where necessary, introduce new ones to facilitate

broadband rollout.

In October 2004, after almost two years of careful deliberations, consultations and planning with

more than 10 Government agencies, NGOs, and not forgetting the industry stakeholders and

even

members of the public, the Malaysian Cabinet approved the National Broadband Plan, togetherwith the instructions to implement it over a 10 year period.

To facilitate the achievement of the NBP’s objective, a full time NBP Secretariat was formed

within the Ministry of Energy, Water and Communications (MEWC) which will work closely

with MCMC who

would continue to be the chief regulating agency, especially in terms of regulatory and

implementing matters.

MyICMS 886 and the Need to Deliver High Speed Broadband to the Masses

With the introduction of the nation’s new 5 year ICT Blueprint better known as MyICMS 886,

the National Broadband Plan took on an even greater impetus. The Minister of Energy Water &

Communications, YB Dato’ Seri Dr. Lim Keng Yaik, rightfully emphasised the importance of

the NBP by placing High Speed Broadband infrastructure, which will spur high speed Internet

connectivity anytime and anywhere regardless of whether the user is on the move or stationary,

as the first “milestone” Service to overcome under the MyICMS 886.

The visionary MyICMS 886 Blueprint also correctly pinpointed that the driving force of the

High Speed Broadband service will be the abundant availability of multimedia content and

application services which are delivered on the Internet. With this key broadband service in

place, the ability to provide all other essential services including digital homes, short range





ii)NATIONAL BROADBAND INITIATIVE (NBI)

The National Broadband

Implementation Strategy or better

known as National Broadband Initiative

(NBI) puts in place a national strategy

that will bring broadband to the whole

nation. In 2007 the Government of

Malaysia has set its target for broadband

whereby the country is to achieve 50%

household broadband penetration by the

end of 2010.

The Implementation Plan

With the target for broadband set to

50% household penetration by the end

of 2010, the Government of Malaysia has identified a strategy that encompass both the supply

and demand aspects of broadband.

On the supply aspect, broadband infrastructure and services will be rolled out throughout the

country. The delivery of services will be through wired and wireless connectivity. In the mean

time, the existing broadband and cellular coverage will be expanded under the Universal ServiceProvision (USP) initiative.

For the high economic impact areas, the current broadband services will be upgraded to provide

higher speed of more than 10Mbps. The Government has signed a Public Private Partnership

(PPP) agreement with Telekom Malaysia Berhad (TM) to roll out high speed broadband

http://www.broadband.my/



infrastructure at selected areas. The project is called High Speed Broadband (HSBB) Project.

In order to achieve household penetration of 50%, an emphasis on supply alone is insufficient.

There must be an effective strategy to encourage demand for broadband. Therefore, emphasis

will be given to three aspects of demand, they which are Awareness, Attractiveness and

Affordability.

The approach for creating awareness will be through continuous government and private sector

involvement in the awareness programs and capacity building initiatives. In order to improve the

attractiveness of the online content, efforts will be focused to enhance and promote e-

Government, e-Education and e-Commerce. Efforts are also on the way to digitalise the



traditional information resources such as library, archive, etc. to be available online. The

affordability factor and bridging the digital divide is being improved by developing various

incentives to reduce the broadband access costs and widening the community access.

Benefits to Malaysia

The benefits of broadband are:

The implementation of broadband will create tangible impact on Gross Domestic Product

(GDP) contribution of the country. Based on the statistics for year 2008, the

communications and multimedia industry contributed 6.1% in term of revenue to the

country’s GDP.

The use of broadband will increase the national competitiveness and attract Foreign

Direct Investment (FDI) in the country.

Broadband is one of the enabler for knowledge-based economy

With the implementation of broadband and achieving the 50% target, will create 135,000

new high value jobs in the ICT sector.

The implementation of broadband services will create spin-off effect in other sectors such

as engineering, local content development and broadcasting





iii)National IT Agenda - NITA

About National IT

Agenda - NITA

The National IT Agenda

(NITA), launched in

December 1996 by the

National IT Council

(NITC), provides the

foundation and framework

for the utilisation of

information and

communication technology (ICT) to transform Malaysia into a developed nation in our own

mould consistent with Vision 2020.

Chaired by the Prime Minister, the NITC comprises members from the public, private and

community-interest sectors and functions as a think tank that advises the government on ICT

strategy. MIMOS Berhad, as the Secretariat to the NITC, assists and supports the Council's

activities, including the development and realisation of NITA.

The NITA vision is to utilise ICT to transform all of Malaysian society into an information

society, then to a knowledge society and finally to a values-based knowledge society. With the

theme "Turning Ripples into Tidal Waves", NITA focuses on the development of people,

infostructure and applications to create value, to provide equity and access to all Malaysians, andto qualitatively transform our society into a values-based knowledge society by the year 2020.

The "ripples" are focused initiatives by the government to create the necessary environment and

empower the people, so that they will bring about the tidal wave of change required to achieve

the NITA vision. The Multimedia Super Corridor (MSC), the earliest strategic initiative of the



NITC, is such a "ripple".

Acknowledging the need to involve all Malaysians in the NITA process, another major "ripple"

initiated by the NITC is the Demonstrator Application Grant Scheme (DAGS) which encourages

Malaysians to participate in and utilise the opportunities made available by ICT. MIMOS

Berhad, as Secretariat, manages and administers the DAGS.

As an added aspect of NITA realisation, the NITC has formulated the NITC Strategic Agenda - a

strategy for Malaysia's migration to the E-World of the new millennium. The strategy involves

an orderly transformation from the current governance structure to a more participatory one

involving active tripartite partnership between the public, private and community-interest

sectors. The Strategic Agenda highlights the need to address five areas critical to our migration

to the E-World, namely E-Community, E-Public Services, E-Learning, E-Economy and E-

Sovereignty.

The NITC promotes the notion that knowledge and information will be the most valuable assets

in the economy of the new millennium. For Malaysia to be competitive, we must embrace the

knowledge-based economy (k-economy) and create word class Malaysian enterprises that can

compete globally with the edge in price, quality, delivery and costs. NITA holds the key to

empowering the nation and enabling the emergence of this new breed of entrepreneurs. NITA is

the foundation for Malaysia's success in the information age and beyond.

PEOPLE - INFOSTRUCTURE - APPLICATIONS

The National IT Framework (NITF) is a strategic and synergistic combination of a number of

key components, working in tandem. The framework is best viewed as an interconnected triangle

consisting of three key elements, namely, People, Infostructure and Applications.

The primary importance of the human factor in a change environment is well reflected by the

placement of the "people" element at the apex of the triangle (See Diagram above). The triangle

itself reflects the three key issues surrounding the triangulation, these being: access and equity,



creating value and qualitative transformation.

The principle that all citizens need access to information in an equitable manner has been duly

recognized. The infostructure element is seen in terms of hard and soft infrastructure. The hard

infrastructure involves the computer hardware and the relevant telecommunication components.

The soft infrastructure on the other hand includes databases, networks, laws, and regulations.

The third element of applications revolves around the development of content that is needed by

all players in the ICT field. The main emphasis here is on local content and culture compatibility.

The development of appropriate and cost effective applications would be critical in ensuring that

Malaysia is able to maintain its competitive position in the market place in the years to come.

Each of the three elements in the NITF has its own strategies, all of which work towards the

achievement of a knowledge society.



iv) Malaysian Information, Communications and Multimedia Services 886

The MyICMS 886 (Malaysian Information, Communications and Multimedia Services 886)

Strategy identifies eight (8) service areas which have been targeted to propel Malaysia in the

delivery of advanced information, communications and multimedia services towards improving

the quality of life of Malaysians and at boosting Malaysia’s global competitiveness.

The MyICMS 886 aims to create a catalystic cycle by enhancing the existing investments in

ICMS infrastructure that will support future growth of ICMS services.

The introduction of the eight (8) new services catalyses and promotes the development of eight

(8) essential infrastructures - both hard and soft. These new services and infrastructures are

aimed at generating growth in six (6) areas that have been identified as key for the consumers

and businesses in Malaysia.

SERVICES INFRASTRUCTURE GROWTH

1. High Speed Broadband

2. 3G & Beyond

3. Mobile TV

4. Digital

Multimedia Broadcasting

5. Digital Home

6. Short Range

Communications

(e.g. RFID-based)

7. VoIP/Internet Telephony

8. Universal Service Provision

Hard :

1. Multiservice

Convergence Networks

2. 3G Cellular Networks

3. Satellite Networks

Soft :

4. Next Generation

Internet Protocol (IPv6)

5. Home Internet Adoption

6. Information & NetworkSecurity

7. Competence Development

8. Product Design &

Manufacturing

1. Content Development

(e.g. education, entertainment,

games)

2. ICT Education Hub

3. Digital Multimedia Receivers

(set top box)

4. Communication Devices

(e.g. VoIP phones)

5. Embedded Components, Devices

(e.g. RFID)

6. Foreign Ventures



8 Services, 8 Infrastructures, 6 Growth Areas

The High Speed Broadband infrastructures will provide Internet connectivity with high speedanytime and anywhere regardless of whether the user is on the move or stationary. The High

Speed Broadband service encompasses both fixed and wireless broadband and will complement

the demand for high speed mobile Internet access, which will be continuously enhanced under

the service category of 3G & Beyond.The complementing scenario will demand a stable and

robust 3G Cellular Network infrastructure in Malaysia.

The need for consumers to receive information anytime and anywhere creates also a new

dimension in the broadcasting arena where high quality contents such as music, text and pictures

are delivered through Mobile TV and other mobile devices. Digital Multimedia Broadcasting

technology will enable the broadcasting (video and sound) services to be delivered to the

consumers via several medium such as satellite, Internet and mobile networks.With the

requirements to deliver the various services nationwide over different medium of

transmission,the Satellite and 3G Cellular networks are essential infrastructures to be developed

and enhanced in Malaysia.

The introduction of the digital broadcasting services will drive the demand for lower cost of

ownership for Digital Multimedia Receivers (both for radio and TV) for Direct-to-Home and

hand-held consumer terminals. Apart from the possibility and opportunity of promoting local

manufacturing of customer equipment, the Digital Multimedia Broadcasting services will create

and enhance the base for local Content Development in meeting the demands and expectations of

the Malaysian listeners and viewers.

The Digital Home is brought about by the requirements of the increasingly futuristic home

environment, which provides various services by connecting home appliances to networks that

would enable the consumers to control the appliances electronically as well as remotely.

The Short Range Communications services will support the creation of short-range wireless

connections type of applications which use very low power. Short Range Communications (e.g.



RFID-based services) have very large market potential in sensors-surveillance systems and will

encourage the local manufacturing of radio frequency identification (RFID) chips that would be

used in short range communications such as in the supply chain management of the different

industries, allowing for computer-peripheral connections and also between consumer electronics

equipment.

Technologies that enable converged services exist. The Internet Protocol (IP) and the Internet

paradigm are being introduced in all areas of communications. VoIP, and in general Internet

telephony, will provide real opportunity drivers for consumers, enterprises and businesses

because of its low cost and favourable investment outlays. The convenient communications

environment provided by VoIP through the combining of multimedia services on single devices

will create opportunities for local manufacturing of low cost Communication Devices.

The upgrading of the existing infrastructure to create a Multiservice Convergence Network

(MSCN) will support the demand for multiple accesses to communication services. The

facilitative communications environment provided by the rapid development of radio technology

leading to increased bit rates and support for mobility, will enable true converged services

through the combining of multimedia services on a single device. This will lead to the creation of

opportunities for local manufacturing of low cost Communication Devices (especially VoIP

phones).

The advancements in the fields of ICT and Multimedia in Malaysia will facilitate the nation in

bridging the digital divide through the enhancement of the current implementation of Universal

Service Provision (USP) toward realizing a society with equitable digital opportunities. In this

regard, one of the initiatives by the Government is looking into expanding the existing cellular

infrastructure which can be enhanced further to provide national cellular coverage and also at

capitalizing on the use of viable fixed wireless access services, satellite services as well as

leveraging on new emerging echnologies for USP.

By harnessing the possibilities that come with ICT through formulating ICT education

policies,Malaysia is poised to become an ICT Education Hub.This will prepare Malaysia with

highly competent workforce that will further enhance and elevate Malaysia’s competitiveness in



approaching the spectrum of Growth Areas identified, including undertaking of Foreign Ventures

in the arena of information, communications and multimedia.

The rapid growth and popularity of Internet services and the demand to connect more devices to

the Internet will drive the demand for more IP addresses. The new services such as the Digital

Home will create local production of IP-enabled home appliances that will require the

deployment of the Next Generation Internet Protocol, or the IPv6 infrastructure, which is critical

to meet the demand for more IP-addresses.

To build a digital society, programmes for ICT awareness will be introduced. Such awareness

and education programmes will gear the society into easier acceptance of the new knowledge

economy (K-economy) and this should in turn drive the Home Internet Adoption within the

society. With this established, Malaysian society can be assured of online access to knowledge

and information that they require and desire and at favorably affordable costs.

In order to support the push of K-economy, and in particular the new ICT and Multimedia

services environment, the focus is to provide globally competitive ICT skills and manpower that

can meet and support the demands of the ICT and Multimedia industries. Competence



Development, with appropriate focus on research and development, will be the main focus

toward ensuring a balanced growth of competent human resource to lead the new growth areas in

ICT. Competent human resource will lead to the capability in Product Design and Manufacturing

of the communications and multimedia devices. Product Design and Manufacturing will

encompass manufacturing of terminal devices including those of passive components such as

smart antennas that, together with the lower cost terminal devices,will increase the take up rate

of the new services.

There are huge potentials for Malaysia to capitalize on in the arena of OEM (Original Equipment

Manufacturing) for Embedded Components and Devices for machine-to-machine (M2M)

communications. With the advancement of core technologies such as 3G and RFID, additional

nonvoice services can be developed by having terminal devices with embedded applicationsspecific integrated chip for M2M applications, thus ensuring that growth is not limited to merely

population size.

The rapid development of services and infrastructures has however brought about other side

effects and challenges, such as cyber attacks, computer virus, spam etc. These will demand

sound and comprehensive Information and Network Security policies and implementations to be

in place so as to ensure a secured, safe and clean cyber space environment. These policies and

their implementations will help to remove those threats against a secured digital society.



Terms of Reference of the National IT Council (NITC) of Malaysia

NITC plays an important role as an advisor to the government in the formulation and

coordination of ICT policies and strategies at national level.

1. Policy Formulation and Setting Strategic Direction

Provide Thoughts Leadership in ICT Policy Formulation.

Identify and propose operational programs to support National

ICT Policy Objectives

Facilitate key organizations and institutions in implementing

National ICT Policy Objectives

2.

Policy Coordination and Evaluation

Streamline and coordinate ICT policies and programmes

undertaken by key agencies

Monitor the policy impacts and programmes effectiveness in

meeting national requirements and objectives

3. Technology Assessment and Adoption

Assess scenarios depicting future ICT technology trends and

the impacts on national development

Set policy direction for ICT technology applications and

development in line with national requirements

4. Industry Promotion

Assess and monitor industry performance Set policy direction for bilateral and multi-lateral co-

operations and collaborations for industry promotion.



APPENDIX

http://www.nitc.my

www.mosti.gov.my

www.cybersecurity.my

www.kttha.gov.my

http://www.cybersafe.my

http://www.nitc.my/

http://www.mosti.gov.my/


http://www.kttha.gov.my/

http://www.kttha.gov.my/


http://www.nitc.my/

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