Overall Analysis

Malaysia is an excellent example of a developing nation with a government that recognizes the benefits of using ICT to promote economic growth and increase the quality of living. Malaysia is a model example and a leader in ICT development for the following reasons:

• Strong governmental participation and support
• Long range vision for the nation and its people
• Developed the Multimedia Super Corridor (MSC) to invest in the people and infrastructure of Malaysia
• Goal of making the nation prosperous and competitive in the global market
• Aligned ministries within the government with the 2020 vision
• Attracted large ICT companies to relocated to the MSC
• Committed and pledged support to transform the nation into a knowledge society by developing new educational institutions

The chart below lists the strengths, weaknesses, opportunities and threats of Malaysia ICT.

The Malaysian Result

Malaysia’s government vision, support, and funding is a fundamental advantage in ICT development. The government’s initiative has brought positive effects to the citizens of Malaysia. One result is the investment level of Malaysian business and foreign investment in the MSC. The MSC has increased commerce, and e-government transactions.

The Malaysian Future

Looking towards the future, Malaysia has a solid foundation. It has the capacity to sustain growth and the ability to attract new investors. The technology parks, and technology incubators that are within the MSC are stimuli to conduct research and development.

CIO Magazine has stated the following about Malaysia:

“Ranked third on AT Kearney’s 2004 Offshore Location Attractiveness Index, with a  rating due to a good business environment, government support of IT, and communications sectors, and a workforce with a strong global exposure. World class infrastructure. Shell, DHL, and Motorola have set up operations centers. Over half of the 250,000 students in higher education in scientific or technical disciplines. But with a population of 24.5 million, Malaysia outsourcing market won’t achieve the scale of India, but is a serious player in the business processing market[1]”

Problems to Overcome

One major problem that Malaysia must over come is the cost of labor. According to CIO Magazine, costs are higher than India with fewer suppliers to choose from. CIO further states that there is a shortage of IT talent[2].

National ICT Policies

Malaysia is on the right path and working to develop policies that align with international standards of intellectual property rights, and international standards or equipment. Since Malaysia’s technology is new, it is current and up to date in respect to hardware and software.

Vision 2020 is likely to be achieved on time. The government is working hard to achieve this goal and transform Malaysia into a knowledge society. Government funding and support is largely responsible for the ICT transformation. The education and skill level of the workforce maybe the lagging factor that may prevent this accomplishment.

What can the Private Industry Do

The Malaysian private industry should continue to attract foreign investment to continue development. The private industry should also develop domestic hardware and software production. This will also entice others to study science and technology. As a result, the private industry should be able to improve the quality of life of local citizens.