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.