Upgrading the facilities for IT Jobs

Malaysia will upgrade its communications and multimedia infrastructure
to be world-class so that it can support the rapid flow and accessibility of
information within the country and across countries at competitive prices. Given
the increasing importance of the Internet to support e-activities and knowledgeintensive
activities, there is a need for an integrated high-bandwidth national
backbone. A longer term perspective will be taken in the planning and implementation
of this facility to ensure that such communications and multimedia infrastructure
is state-of-the-art and will be able to keep pace with the rapid advances expected
in ICT.

Efforts will be directed to ensure equitable distribution and provision of
telecommunications infrastructure and services to underserved areas and groups
to bring them into the mainstream of the knowledge-based economy. For this
purpose, an effective universal service obligation programme will be put in
place. The Government will complement private sector contribution to ensure
network roll-out to underserved areas and groups. The services offered will be
made affordable. Specific targets to enhance penetration must also be set for the
medium term as well as for the OPP3 period. In addition, coordinated efforts
will be taken to accelerate the setting up of the Internet and multimedia kiosks
in strategic locations.

Local content development will be given a strong push. In addition to
catering for the global market, the need to preserve Malaysia’s history and
heritage and to exploit the local knowledge embedded in communities will be
duly recognized. Incentives will be provided to individuals and institutions of
learning to produce local content in local languages as well as to produce userfriendly
software and appropriate Internet access technology. The private sector
and NGOs will be encouraged to play a significant role in the area of content
development. Towards this end, among others, the regulatory framework governing
the local content industry will be reviewed and local players will be encouraged
to undertake R&D and develop their skills as well as form strategic alliances
with foreign partners.

Harnessing the Manpower for IT Jobs

Malaysia needs to harness its potential to drive the key sectors in S&T
and R&D and become a competitive knowledge-based economy. In this context,
during the OPP3 period, priority will be accorded to increasing S&T and R&D
manpower, improving related infrastructure, strengthening existing mechanisms
for supporting R&D and technology development and diffusion, promoting S&T
awareness as well as enhancing S&T management. These will provide the basis
for a well-functioning national innovation system and underpin the National
Science and Technology Policy.

To provide the impetus for S&T and R&D initiatives, the public sector
will increase the proportion of the budget allocated for this purpose. The funding
mechanism for R&D activities will be streamlined to ensure optimum utilization
of funds. Proposals for research will be evaluated by a panel of experts, including
foreigners, in the proposed area of research. The corporate sector, including the
small- and medium-scale enterprises (SMEs), will be provided significant incentives
to allocate a greater proportion of their revenue for R&D.

Greater selectivity will be exercised in terms of the areas for S&T
development to maximize benefits to the nation. The areas where Malaysia has
already built its strength and where the opportunities for growth and leadership
are highest, will be promoted. In line with this, S&T and R&D efforts will be
refocused and reprioritized by systematically identifying areas, including those
that are emerging and generic, that are strategic for Malaysia to develop into
a knowledge-based economy.

To strengthen the capacity to identify, assimilate and exploit knowledge,
the public sector research institutions will enhance their level of expertise and
capability. The private sector will be encouraged to do the same. While efforts
will be taken to expand the supply of S&T manpower, firms will be encouraged
to offer appropriate training to employees to upgrade their skills. FDI will be
increasingly used to leverage R&D and technology capabilities from abroad. The
private sector will be urged to forge strategic alliances with suitable foreign
partners to ensure that R&D activities are not insular. Malaysia will seek out
and provide assistance to multinational companies with strong R&D capability
in strategic areas to invest in the country. In addition, the incentive mechanism
for FDI will be reviewed to pay special attention to those that are supported by
new and value-adding R&D activities to be located in Malaysia.

In order to improve the diffusion of research findings and increase its
commercial applicability, efforts will be taken to forge greater collaboration
among public research institutions, universities and clusters of industries. Industry
associations will be encouraged to take the lead in the implementation of industryspecific
programmes.

In an effort to instil greater awareness and foster greater appreciation for
science, the teaching of science in schools and tertiary institutions will be
reviewed regularly to ensure that the content is relevant, up-to-date and is taught
in an interactive and lively manner. In addition, the Government in partnership
with industry and non-governmental organizations (NGOs) will undertake
programmes to popularize and promote S&T.

Building the Knowledge Manpower

Human capital will be the key driver of growth in the knowledge-based
economy and will determine the competitive position of the nation. The successful
development of the knowledge-based economy will, therefore, largely depend
on the quality of the education and training system. The institutional framework
to ensure an adequate supply of appropriately qualified and skilled manpower
and to continuously retrain them, will be put in place.

The education system from pre-school to tertiary level will be reviewed
to enable it to meet the manpower requirements of the knowledge-based economy.
The key areas that will be reviewed include the curriculum, teaching methods,
enrolment at the tertiary level and the quality of the teaching profession. The
curriculum will emphasize the teaching of core competencies and will be in line
with changing manpower requirements. Vocational and technical education and
training will be given greater prominence and will be refocused to produce the
skills required by the knowledge-based economy. In addition, teaching methods
will be transformed to promote creativity, originality, innovation as well as
thinking and analytical skills. The use of IT as a tool for teaching and learning
will be made more pervasive.

Concerted efforts will be taken to increase enrolment at the tertiary level,
particularly for science and technical courses. Public and private tertiary institutions
will need to become more market-driven and proactive by moving beyond traditional
areas to new fields of education required by a maturing knowledge-based economy.
They will be required to enhance the standard of education and produce highly
employable manpower. The quality of the teaching profession will also be improved
by attracting better qualified people into the teaching profession, undertaking a
programme of continuous training, and reviewing their scheme of service in
terms of remuneration and promotion opportunities.

A system of life-long learning will be promoted to ensure that workers
can continuously upgrade their skills and knowledge in order to remain relevant
in the environment of rapidly changing technology and work processes as well
as to nurture a learning society. Both the public and private sectors will be
encouraged to set up the necessary infrastructure to facilitate life-long learning.
In this regard, educational institutions will be required to introduce flexible
learning approaches in terms of duration of course, entry requirements and mode
of teaching as well as ensure affordability. Community colleges and resource
centres will be set up to increase accessibility to acquire and disseminate knowledge.
Firms and industries will be encouraged to provide incentives to their employees
to relearn and continuously upgrade their skills. Towards this end, financial
institutions will be encouraged to provide low interest loans to those interested
in upgrading their skills.

To meet the immediate manpower needs of the knowledge-based economy,
the Government will review on-going initiatives and undertake a coordinated
brain-gain programme to attract qualified Malaysians working abroad as well as
highly skilled foreigners. Among others, the programme will seek outstanding
Malaysian students, quality Malaysian technopreneurs and highly skilled personnel
from abroad as well as liberalize conditions for their recruitment. Appropriate
steps will also be taken to ensure that those who set up their operations in
Malaysia prior to this programme are not disadvantaged

Creating IT Jobs in Malaysia

Human capital will be the key driver of growth in the knowledge-based
economy and will determine the competitive position of the nation. The successful
development of the knowledge-based economy will, therefore, largely depend
on the quality of the education and training system. The institutional framework
to ensure an adequate supply of appropriately qualified and skilled manpower
and to continuously retrain them, will be put in place.

The education system from pre-school to tertiary level will be reviewed
to enable it to meet the manpower requirements of the knowledge-based economy.
The key areas that will be reviewed include the curriculum, teaching methods,
enrolment at the tertiary level and the quality of the teaching profession. The
curriculum will emphasize the teaching of core competencies and will be in line
with changing manpower requirements. Vocational and technical education and
training will be given greater prominence and will be refocused to produce the
skills required by the knowledge-based economy. In addition, teaching methods
will be transformed to promote creativity, originality, innovation as well as
thinking and analytical skills. The use of IT as a tool for teaching and learning
will be made more pervasive.

Concerted efforts will be taken to increase enrolment at the tertiary level,particularly for science and technical courses. Public and private tertiary institutionswill need to become more market-driven and proactive by moving beyond traditional
areas to new fields of education required by a maturing knowledge-based economy.
They will be required to enhance the standard of education and produce highly
employable manpower. The quality of the teaching profession will also be improved
by attracting better qualified people into the teaching profession, undertaking a
programme of continuous training, and reviewing their scheme of service in
terms of remuneration and promotion opportunities.

A system of life-long learning will be promoted to ensure that workers
can continuously upgrade their skills and knowledge in order to remain relevant
in the environment of rapidly changing technology and work processes as well
as to nurture a learning society. Both the public and private sectors will be
encouraged to set up the necessary infrastructure to facilitate life-long learning.
In this regard, educational institutions will be required to introduce flexible
learning approaches in terms of duration of course, entry requirements and mode
of teaching as well as ensure affordability. Community colleges and resource
centres will be set up to increase accessibility to acquire and disseminate knowledge.
Firms and industries will be encouraged to provide incentives to their employees
to relearn and continuously upgrade their skills. Towards this end, financial
institutions will be encouraged to provide low interest loans to those interested
in upgrading their skills.

To meet the immediate manpower needs of the knowledge-based economy,
the Government will review on-going initiatives and undertake a coordinated
brain-gain programme to attract qualified Malaysians working abroad as well as
highly skilled foreigners. Among others, the programme will seek outstanding
Malaysian students, quality Malaysian technopreneurs and highly skilled personnel
from abroad as well as liberalize conditions for their recruitment. Appropriate
steps will also be taken to ensure that those who set up their operations in
Malaysia prior to this programme are not disadvantaged

How IT Jobs emerge

Malaysia has made significant headway in terms of creating a conducive
regulatory environment. Several legislations were amended and new ones enacted,
including the Digital Signature Act 1997, Computer Crimes Act 1997, Telemedicine
Act 1997, Copyright (Amendment) Act 1997 as well as Communications and
Multimedia Act 1998. There is, however, a need to further improve the regulatory
framework to support the orderly development of the knowledge-based economy.
5.21 The Government initiated the development of the venture capital industry
as an alternative source of financing and allocated RM1.1 billion for the purpose.
The Malaysian Exchange of Securities Dealing and Automated Quotation
(MESDAQ) was established and its rules were liberalized to act as an attractive
exit mechanism for technology-based investments of venture capital corporations
(VCCs). The Kuala Lumpur Stock Exchange (KLSE) also provided listing facilities
for high-technology companies. The venture capital industry, however, is still at
its infancy and will need to be further strengthened.

In addressing the issue of digital divide within the country, several initiatives
such as the computerization of rural schools and provision of Internet access in
strategic locations, have started. However, there is a need to accelerate the
implementation of programmes targeted to improve access and narrow the equity
gap. Malaysians with no formal education, senior citizens, people with disabilities
and those in the 15-64 age group outside the labour force are particularly at risk
of being marginalized by the ICT revolution. In terms of infostructure, gaps exist
in telephony development and disparity of Internet access between states. A total
of six states was below the national average of 20 per cent in telephone penetration
rate while almost 70 per cent of Internet users were concentrated in the Federal
Territory of Kuala Lumpur, Selangor, Penang and Johore. In addition, given that
the majority of the population is Bahasa Malaysia-literate, the lack of local
content restricted access to source of information.

In order to assess Malaysia’s readiness to become a knowledge-based
economy, the Knowledge-based Economy Development Index (KDI) was developed.
It compares Malaysia’s position relative to 21 other countries which are mainly
developed. The KDI is derived from selected key factors required to drive a
knowledge-based economy, namely, computer infrastructure, infostructure, education
and training as well as R&D and technology.

Foundation of IT Jobs

 Malaysia started to lay the foundation for the knowledge-based economy
in the mid-1990s, among others, with the launching of the National IT Agenda
(NITA) and the Multimedia Super Corridor (MSC). Some efforts have also been
taken in the areas of human resource, S&T and R&D, infostructure and financing,
as well as to ensure that the development of the knowledge-based economy does
not result in a knowledge divide.

The objective of NITA is to formulate strategies and promote the utilization
and development of IT, the key enabler of a knowledge-based economy. For
NITA to be realized, demonstrator applications, crucial for the implementation
of IT projects at the national, public sector and community levels, were launched.
The demonstrator applications priority areas are e-economy, which covers ecommerce
and e-business, e-public services, e-community, e-learning and esovereignty.

The MSC strives to create an ideal IT and multimedia environment as well
as a global test-bed to enable Malaysia to be in the mainstream of activities


necessary to attract knowledge workers, technopreneurs and high-technology industries.
The basic physical infrastructure, including the telecommunications infrastructure
with 2.5 gigabits per second asynchronous transfer mode-based backbone scalable
to 10 gigabits per second in the MSC, were completed in mid-1999. This will
enable the transfer of voice, image and data. The five designated cybercities of
Kuala Lumpur City Centre, Kuala Lumpur Tower, Technology Park Malaysia,
Cyberjaya and Malaysian Technology Development Corporation- Universiti Putra
Malaysia Incubator Centre have attracted a sizeable number of sophisticated
businesses, world-class technology-led companies and R&D investments. The
First Wave Flagship Application including e-government, multipurpose card and
smart schools are currently being implemented. New programmes and projects for
the Second Wave Flagship Application are also being identified.

In the area of human resource development, although the overall level of
educational attainment improved, the percentage of those in the labour force
with tertiary education, which is critical to drive a knowledge-based economy,
is still small at 13.9 per cent, as shown in Table 5-1. The enrolment at the tertiary
level of the age cohort 17-23 years increased to 25 per cent following the
substantial allocation provided for tertiary education, but it is still lower compared
with many of the newly industrialized economies (NIEs), as shown in
Table 5-2.

 In addition, enrolment at the first-degree level in public institutions
continues to be biased towards the arts courses. While it is recognized that the
arts courses are also important in the context of a knowledge-based economy,
the need to create a critical mass of scientific and technical manpower necessitates
higher enrolment in these fields. Enrolment in science and technical fields
constituted only 31 per cent of total enrolment in 1999. This was largely due
to the lower number of science stream students at the secondary school level,
comprising 25.7 per cent of the total number of students in 1998, which was below
the targeted 60:40 science to arts ratio.

Malaysia Competitiveness

 The rapid creation and dissemination of knowledge and information on
the back of advances in ICT are altering the manner in which goods and services
are produced and marketed, and investments are made. Trade and investment
transactions are conducted on-line and are becoming increasingly virtual. This
has changed the basis and format for global and regional competitiveness and
forced developing nations in particular, to review their policies and strategies.
These countries are opening up their markets and economies to encourage freer
flow of trade and investment as well as knowledge, technology and expertise. The
developing economies that wish to take advantage of ICT are being wired-up rapid pace to facilitate the process. Given these global developments, it is crucial
for Malaysia to respond to the external environment to remain competitive by
developing into a knowledge-based economy.


Malaysia is facing increasing competition for its labour-intensive and
lower-end manufactured products from the lower-wage and resource-rich developing
economies such as China, Indonesia and Thailand. Many of the local manufacturers
of these products have been compelled to differentiate their products as well as
refocus on specific market segments to remain competitive. With respect to hightechnology
and knowledge-intensive industries, Malaysia has yet to match the
competency of the more advanced economies such as South Korea, Japan and
Taiwan.


To maintain its competitive edge, Malaysia will need to aggressively
undertake productivity improvements in traditional industries and at the same
time, enhance its technological and knowledge capabilities to move into the midrange
and higher-end products. It is also imperative for local industries to move
along the value chain into related upstream and downstream activities. These
changes will be necessary so that the manufacturing and services sectors can lead
economic growth during the OPP3 period. Towards this end, the knowledgebased
economy can provide the platform to accelerate this transition.