Friday, March 25, 2011

OFFICIATING THE LAUNCHING OF THE 1ST NEF AWANI ICT FAIR, NEF PORTAL, NATIONAL BUMIPUTERA ICT DIRECTORY 2010/2011 AND THE NETWORK MAGAZINE

Wednesday March 23, 2011
OFFICIATING THE LAUNCHING OF THE 1ST NEF AWANI ICT FAIR, NEF PORTAL, NATIONAL BUMIPUTERA ICT DIRECTORY 2010/2011 AND THE NETWORK MAGAZINE

YB DATO' MUKHRIZ MAHATHIR
DEPUTY MINISTER OF INTERNATIONAL TRADE
AND INDUSTRY MALAYSIA

OFFICIATING THE LAUNCHING OF THE
1ST NEF AWANI ICT FAIR, NEF PORTAL, NATIONAL BUMIPUTERA ICT DIRECTORY 2010/2011 AND THE NETWORK MAGAZINE

23RD MARCH 2011 (WEDNESDAY)

DEWAN TUN DR. ISMAIL, PWTC


Assalamualaikum W.B.T and Salam 1Malaysia.

Yang Berusaha Encik Ashran Dato’ Ghazi,
President of the Malaysian Association of Bumiputera ICT Industry and Entrepreneurs (NEF);

Honourable Guests;

Fellow Technopreneurs;
Members of the Media;

Ladies and Gentlemen.

1. First of all, I would like to thank the organisers for their kind invitation.

2. It is nice to see some familiar faces today as well as new faces. I recall that the last time we met was during the MSC Malaysia Bumi Technopreneur Dialogue where I was given the honour to launch the ‘Globalising Bumiputera Technoprenuer’ initiatives.

3. I would like to thank NEF for once again extending an invitation to launch your 1st NEF AWANI ICT along with the various media platforms that you have initiated such as The National Bumiputera ICT Directory, The Network magazine and last but not least the NEF portal. These are all commendable initiatives of which I am certain, derive from the result of a lot of hard work and support from within the NEF community. Congratulations to all of you.

4. Initially, when I was invited to launch the NEF AWANI ICT Fair, I must say I thought it was just another standard event. But as I perused the program, I noticed a few elements that I thought was very interesting.

5. For example, as opposed to having a usual seminar or forum track you have what you call an ‘On Air Track’ where it takes the form of a talk show that will be broadcasted on television. Not only is this approach unique but it enables the content of the discussions to be shared beyond the confines of the physical venue to a wider audience. This collaboration between NEF and AWANI is mutually beneficial and I applaud both organisations.

6. Another element that caught my attention was your biznet where it serves as a platform for like-minded individuals to share business opportunities with other interested parties or their peers. We need this kind of spirit to keep going especially among the Bumiputera technopreneur community. No man is an island and the collaborative approach between companies could ensure business sustainability for companies in the long run. I do hope that this kind of spirit will grow beyond the technology and creative community into other industries.

Ladies and Gentlemen,

7. The NEF has made available various media platforms to enable you to network effectively and increase your visibility in the market. The Directory, Portal and Magazine are useful tools that one could leverage off to reach the consumer. This is an opportunity that should not be missed

8. Talking about opportunities, perhaps this would be a good time to highlight some of the initiatives that the Malaysian Government has instituted to spur this industry.

9. For your information, as at 31st December 2010 a total of 2,738 companies have been granted MSC status by the Multimedia Development Corporation Sdn. Bhd., of which:

• Malaysian-owned : 2,051
• Foreign-owned : 608
• Equal ownership : 79

10. These MSC companies are involved in four main areas, namely:

• Creative Multimedia;
• Information Technology (InfoTech);
• Shared Services and Outsourcing (SSO); and
• Institutions of Higher Learning (IHLS) and incubators.

11. Furthermore, under the Promotion of Investment Act 1986, MSC Malaysia Status Companies may enjoy the following financial incentives:

• Pioneer Status, which means 100% exemption from taxable statutory income. This incentive is granted for a period of 5 years for the first round;

• A 100% Investment Tax Allowance (ITA);

• Eligibility for R&D grants (for majority Malaysian ownership MSC Malaysia-Status companies);

• Freedom to source capital and borrow funds globally; and

• Duty-Free Importation of multimedia equipment (DFI).

12. Also, by virtue of the autonomous liberalisation announced by the Right Honourable Prime Minister on the 14th of November 2008 – Computer Related Services has been fully liberalised at 100% foreign equity.

13. Similarly, by virtue of Malaysia’s binding commitment to the ASEAN Framework Agreement on Services (AFAS) – computer related services have also been fully liberalised for interested ASEAN investors to venture in.

My Friends,

14. The outlook for this industry is promising. The following are the reasons why. The National Key Economic Areas (NKEAs) are key drivers of economic activity that has the potential to directly contribute a significant amount of economic growth to the economy. NKEA will boost Malaysia’s per capita income from current USD 6,700 to USD 15,000 by 2020.

15. Specifically in Communication services, there are 10 Entry Point Projects (EPPs) that have been identified under the NKEA:

• EPP 1 - Nurturing Malaysia’s Creative Content Industry

• EPP 2 - Deploying 1Malaysia Payments Systems

• EPP 3 - Connecting 1Malaysia

• EPP 4 - Establishing E-Learning for Students and Workers

• EPP 5 - Launching E-Healthcare

• EPP 6 – Strengthening E-Government

• EPP 7 - Ensuring Broadband for All

• EPP 8 - Extending Reach

• EPP 9 - Offering a Smart Network

• EPP 10 - Extending the Regional Network

16. The government and private sector are combining their efforts to boost broadband penetration in the country through the launching of High Speed Broadband (HSBB). This RM11.3 billion project is a public-private partnership (PPP) initiative between the government and Telekom Malaysia Berhad (TM) to develop the next generation of HSBB infrastructure and services for the nation.

17. We have achieved some measure of success thus far because as at mid-October of 2010, the National Broadband Initiatives (NBI) target to achieve 50% of household broadband penetration by end of 2010 was surpassed when it recorded more than 53% of household broadband penetration.

Honourable Guests,

18. There are many challenges that lie ahead for this industry which the NEF must tackle and engage in. For starters how do we protect jobs? While manual jobs are unlikely to be replaced with ICT but repetitive analytical stuff can now be done by increasingly intelligent software even across borders with the availability of broadband. To be sure, the challenge for the ICT industry is to generate jobs when its very nature is to eliminate jobs. Never before in human history has so much convenience to mankind come with so few jobs created. The NEF must find a solution to this issue. At MITI we are always open to new ideas that will get more people gainfully employed.

19. I have perhaps exceeded the time allocated for my short speech. Before I take my leave, I would like to once again congratulate both NEF and AWANI on your first NEF AWANI ICT Fair and also to NEF in particular for its initiative in the various media tools for its members.

20. To conclude allow me to quote Bill Gates who said that, “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don't let yourself be lulled into inaction”.

21. And so without further ado, with the recitation of Bismillahirahmannirahim, I officially launch the 1st NEF Awani ICT Fair, and its media platforms: NEF portal, National Bumiputera ICT Directory 2010/11 and The Network magazine.

Thank you.

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