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SPECI AL STUDY MSC Malaysia 2.

0 State ICT Blueprint : Negeri Sembilan


Roger Ling Hailey Chan Liew Siew Choon Devtar Singh Victor Lim

Suite 13-03, Level 13, Menara HLA 3, Jalan Kia Peng 50450 Kuala Lumpur, Malaysia

P.60.3.2163.3715

Filing Information: December 2010, IDC #, Volume: 1 Special Reports: Special Study

TABLE OF CONTENTS
P Introduction & Background Point of Departure: State ICT Blueprint Negeri Sembilan 1 3

Overview................................................................................................................................................... 3 Economic Landscape ............................................................................................................................... 5 Negeri Sembilan Key Contributing Sectors ....................................................................................... 5 Manufacturing............................................................................................................................. 5 Services...................................................................................................................................... 6 Agriculture .................................................................................................................................. 8 Construction ............................................................................................................................... 9 Mining ......................................................................................................................................... 9 Key Economic Targets ...................................................................................................................... 10 ICT as a Strategic Pillar for Advancement ......................................................................................... 12 Negeri Sembilan State ICT Situational Analysis ....................................................................................... 13 ICT Blueprint Review ......................................................................................................................... 13 Current ICT Environment ................................................................................................................... 15 Policies ....................................................................................................................................... 15 Key Strategic Policy 1: Increase overall ICT penetration especially in the eastern region. . 15 Strategic Policy 2: To increase the overall ICT competency level in Negeri Sembilan with the setting up of infrastructure such as smart schools in rural areas. ................................................... 16 Strategic Policy 3: Encourage the development of telecommunication access and reasonable internet access in rural areas .............................................................................................. 17 Infrastructure ............................................................................................................................................ 17 Internet, PC & Cellular Penetration ............................................................................................ 20 ICT Graduates, Workforce & Companies ................................................................................................. 26 ICT Utilization in Key Segments ............................................................................................................... 30 Government................................................................................................................................ 30 Industry....................................................................................................................................... 35 Negeri Sembilan rolling up to Malaysia ...................................................................................... 35 Society........................................................................................................................................ 40 Programs & Activities ................................................................................................................. 41 Summary of Key Findings & Issues for Negeri Sembilan ......................................................................... 43 N e g e r i S E m b i l a n G a p A n a l ys i s 46

Approach for Gap Analysis ....................................................................................................................... 46 Gap Analysis Findings of State ICT Blueprint against Targets ................................................................. 48 Gap Analysis on ICT Environment in Negeri Sembilan............................................................................. 53 Assessment of Public Sector ............................................................................................................. 53 Overview .................................................................................................................................... 53 Current Scenario ........................................................................................................................ 53 Assessment ................................................................................................................................ 54 Assessment of Industry ..................................................................................................................... 58 Overview .................................................................................................................................... 58 Current Situation ........................................................................................................................ 58 Assessment ................................................................................................................................ 60 Assessment of Society ...................................................................................................................... 63

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TABLE OF CONTENTS Continued


P Overview .................................................................................................................................... 63 Current Scenario ........................................................................................................................ 64 Assessment ................................................................................................................................ 65 Assessment of Governance Structure ............................................................................................... 67 Overview .................................................................................................................................... 67 Current Scenario ........................................................................................................................ 68 Assessment ................................................................................................................................ 71 Gap Analysis on ICT Environment ............................................................................................................ 73 Summary of Gap Analysis ................................................................................................................. 73 Supplement Gap of the ICT Industry ............................................................................................... 79 Overview .................................................................................................................................... 79 Current Scenario ........................................................................................................................ 79 Assessment ................................................................................................................................ 80 ICT Industry in the context of Cyber Cities and Cyber Centre initiatives .................................... 81 Global & Regional Best Practices ............................................................................................................. 87 South Australia .................................................................................................................................. 87 Overview of South Australia Initiatives .............................................................................................. 88 South Australia: ICT Industry as an Economic Powerhouse ...................................................... 88 ICT: Transforming all South Australian Industries ...................................................................... 88 ICT in South Australia: Fundamentals for Success .................................................................... 89 Rationale for Benchmark between South Australia and Negeri Sembilan ......................................... 89 Ireland ............................................................................................................................................... 90 Overview of Ireland Initiatives ............................................................................................................ 91 Government, agencies and the public see the ICT industry as one of the most important sectors in the country........................................................................................................................................ 91 That Ireland has the necessary skills for a vibrant and sustainable ICT Industry ....................... 91 That Ireland is regarded as a competitive location for ICT, both domestically and internationally 92 That Ireland becomes a very attractive place in which to undertake research and development 92 That Ireland becomes a genuinely recognized knowledge and e-enabled economy.................. 92 That the ICT sector in Ireland improves its access to, and interaction with, the final customer through sales and marketing expertise via initiated programs ................................................................. 93 Rationale for Benchmark between Ireland and Negeri Sembilan ...................................................... 93 Key Findings for Benchmark Regions....................................................................................................... 93 s t r a t e g i c r e c o m m e n d a t i o n s f o r t h e d e ve l o p m e n t o f i c t i n n e g e r i s e m b i l a n 95

Recommendations .................................................................................................................................... 95 Overview ........................................................................................................................................... 95 ICT Vision of Negeri Sembilan ................................................................................................... 95 Address gaps - Current Scenario ............................................................................................... 97 Address gaps - To Reach Vision ................................................................................................ 105 IDCs Proposed Recommendations ................................................................................................... 107 Capability Development Program for the Industry ...................................................................... 110 Total ICT Development for Society ............................................................................................. 114 Fortify Industrial Districts with High Speed Broadband Access & increase access to all ............ 120 Empowering SMBs with ICT access ........................................................................................... 123 Access @ Negeri Sembilan ........................................................................................................ 127 st NS 1 home program driven by Smart Homes ........................................................................... 131 1 NS Rakyat Portal ..................................................................................................................... 133

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TABLE OF CONTENTS Continued


P ICT Empowerment for the Manufacturing Industry ..................................................................... 135 ICT Empowerment for the Tourism Industry ............................................................................... 138 ICT Empowerment for the Agriculture Industry........................................................................... 141 Recommendations Timeline .............................................................................................................. 143 ICT as an Enabler ...................................................................................................................... 143 ICT as an Industry ...................................................................................................................... 147 ICT for Society............................................................................................................................ 148 Program Costing................................................................................................................................ 150 Costing Assumptions .................................................................................................................. 150 Sources of Funding .................................................................................................................... 153 Governance Model ............................................................................................................................ 158 Current model............................................................................................................................. 158 Proposed Model ......................................................................................................................... 160

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LIST OF TABLES
P 1 2 3 4 5 6 7 8 9 Negeri Sembilan Key Industry/Sector growth 2006-2009 ............................................................ 5 Tourist Attraction to Negeri Sembilan ........................................................................................... 7 Negeri Sembilan Land usage by plantation type ....................................................................... 9 High Level Indicators for Negeri Sembilan Maju 2020 ................................................................ 10 Key Industries and planned initiatives .......................................................................................... 11 ICT Strategic Plan 2003-2008 ...................................................................................................... 13 Key Infrastructure related initiatives ............................................................................................. 17 PC & Cellular Penetration (Negeri Sembilan VS Malaysia) .......................................................... 25 Sample snapshot of Private Institution of Higher Learning which offers ICT courses .................. 27

10 Regional Management and Key Public Services in Negeri Sembilan Provided by Local Municipals (PBT) .......................................................................................................................... 31 11 Negeri Sembilan rolling up to Malaysia ........................................................................................ 35 12 Key Discussion Points from Top 3 Sectors .................................................................................. 37 13 Annual Average IT spend across key verticals............................................................................. 39 14 List of State Driven ICT Programs................................................................................................ 41 15 Federal Initiatives in the state ...................................................................................................... 41 16 Key Issues Faced by Negeri Sembilan in Proliferating ICT .......................................................... 43 17 Map of Issues Across MSC Malaysia 2.0 Pillars .......................................................................... 45 18 Assessment of ICT Blueprint achievements ................................................................................. 49 19 Root Cause Analysis - Public Sector............................................................................................ 57 20 Root Cause Analysis - Industry .................................................................................................... 63 21 Root Cause Analysis - Society ..................................................................................................... 67 22 Root Cause Analysis - Governance ............................................................................................. 72 23 Overall ICT Environment Gap Analysis ........................................................................................ 73 24 MSC Status Companies in Negeri Sembilan ................................................................................ 80 25 MSC Malaysia Performance Standards Requirements ................................................................ 82 26 Comparison of ICT Goals & Objectives between South Australia & Negeri Sembilan ................. 88 27 Rationale for Benchmark .............................................................................................................. 89 28 Comparison of ICT Goals & Objectives between Ireland & Negeri Sembilan............................... 91 29 Rationale for Benchmark .............................................................................................................. 93 30 Key Findings for Benchmark Regions .......................................................................................... 94 31 Map of Problem Areas Across MSC Malaysia 2.0 Pillars ............................................................. 97 32 Major ICT Themes ....................................................................................................................... 99 33 Initial list of recommended programs based on Major ICT Themes ............................................. 102 34 Recommendations to attain ICT Vision of the State ..................................................................... 105 35 Key Recommendations mapped to MSC Malaysia 2.0 ................................................................ 108

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LIST OF TABLES Continued


P 36 Capability Development Program for the Industry ........................................................................ 110 37 Total ICT Development for Society .............................................................................................. 114 38 Fortify Industrial Districts with High Speed Broadband Access & increase access to all ............. 120 39 Empowering SMBs with ICT access ............................................................................................ 123 40 Access @ Negeri Sembilan ......................................................................................................... 127 41 NS 1st home program driven by Smart Homes ............................................................................ 131 42 1 NS Rakyat Portal....................................................................................................................... 133 43 ICT Empowerment for the Manufacturing Industry ....................................................................... 135 44 ICT Empowerment for the Tourism Industry................................................................................. 138 45 ICT Empowerment for the Agriculture Industry ............................................................................ 141 46 Cost breakdown for key programs ............................................................................................... 150 47 Funding model for key programs.................................................................................................. 154

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LIST OF FIGURES
P 1 2 3 4 5 6 7 8 9 MSC Malaysia Milestones ............................................................................................................ 1 MSC Malaysia 1.0: Strategic Thrusts ........................................................................................... 2 MSC Malaysia 2.0 ........................................................................................................................ 2 Districts in Negeri Sembilan by Main Economic Sector ................................................................ 4 Dynamism in the manufacturing industry ..................................................................................... 6 International vs. Domestic Tourist by District ............................................................................... 8 Broadband Penetration by States (Per 100 Inhabitants) .............................................................. 21 Current Coverage of Streamyx Wireless Combo ......................................................................... 22 Broadband Coverage by Mobile Operators (HSDPA, 3G, GPRS/EDGE) .................................... 23

10 Cellular Penetration by State (2008) ............................................................................................ 24 11 PC Penetration by State (2007) ................................................................................................... 25 12 Evolution of Information Society ................................................................................................... 29 13 Broadband Speed by Sector ........................................................................................................ 39 14 Framework Approach in Formulating Gap Analysis ..................................................................... 47 15 Process Flow in Identifying Gaps ................................................................................................. 48 16 Issues Affecting Public Sector Agencies in Negeri Sembilan ....................................................... 55 17 Main Challenges Faced in Utilization of ICT................................................................................. 56 18 Summary of Gaps for Public Sector ............................................................................................. 57 19 ICT Readiness by Sector ............................................................................................................. 61 20 Summary of Gaps for Industry ..................................................................................................... 62 21 1 NS Wireless City Users by key area ......................................................................................... 64 22 Summary of Gaps for Society ...................................................................................................... 66 23 Structure of Stakeholders in State ICT Development ................................................................... 68 24 Summary of Gaps for Governance Structure ............................................................................... 72 25 Addressing Gap Analysis for ICT Environment Approach ............................................................ 73 26 IDCs approach to attaining the ICT vision of Negeri Sembilan..................................................... 95 27 Translation of state ICT Vision to MSC Malaysia 2.0 pillars ......................................................... 96 28 Major ICT Themes building up to MSC Malaysia 2.0 pillars ......................................................... 101 29 Key Recommendations mapped to development phases ............................................................ 107 30 Timeline and Action plan - Capability Development Program for the Industry ............................. 113 31 Timeline and Action plan - Total ICT Development for Society .................................................... 119 32 Timeline and Action plan - Fortify Industrial Districts with High Speed Broadband Access .......... 122 33 Timeline and Action plan - Empowering SMBs with ICT access .................................................. 126 34 Timeline and Action plan Access @ Negeri Sembilan .............................................................. 130 35 Timeline and Action plan 1 NS Rakyat Portal............................................................................ 134 36 Structure of Stakeholders in State ICT Development ................................................................... 159

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LIST OF FIGURES Continued


P 37 Proposed new structure in State ICT Development ..................................................................... 160

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INTRODUCTION & BACKG ROUND


The Multimedia Super Corridor (MSC Malaysia) was established in 1996 with the aspiration of becoming a global hub for ICT and to become the preferred location for ICT innovations, services and operations. MSC Malaysia tenders to the world: A test-bed for technology, A framework of relevant cyberlaws A set of favorable policies Since its inception, MSC Malaysia has gone through an evolutionary cycle to cater to the changing market demands and needs of the country. The transformation is seen as part and parcel of the aspiration towards becoming a knowledge society and leadership in knowledge base economy by 2020.

FIGURE 1
MSC Malaysia Milestones

Source: MDeC

The focus of the MSC Framework has also evolved in line with the growth aspirations of MSC Malaysia. Under MSC Malaysia 1.0, the strategic thrusts were aligned to 3 key focus areas Attract FDI Build Local ICT industry Enhance Socio-Economic Development

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FIGURE 2
MSC Malaysia 1.0: Strategic Thrusts

Source:MDeC

With the focus shifted towards MSC Malaysia 2.0 the 3 key tenants are now focused on ICT as an Industry, ICT as an Enabler and ICT for Society.

FIGURE 3
MSC Malaysia 2.0

Building the ICT industry with FDIs acting as catalysts for DDIs.

The use of ICT to enable governments and industries resulting in higher productivity in practically all aspects of their value chain

The use of ICT to empower society, bridge the income gap & reduce socio-economic inequalities, enhance the quality of life, and improve the quality of human capital

Source:MDeC

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POINT OF DEP ARTURE: STATE ICT BLUEPRINT NEGERI SEMBILAN


Overview
The State of Negeri Sembilan consists of 7 districts; Seremban, Port Dickson, Rembau, Tampin, Jelebu, Jempol and Kuala Pilah. The capital city of Negeri Sembilan is Seremban with state level population crossing just over one million people. The expected annual growth rate is approximately 1.8%. In 2008, Negeri Sembilan was home to 3.59% of the nation's population of 27.73 million and was the 9th most densely populated state with 149 individuals per kilometer square. In terms of spread, Seremban is home to 47% of the state population followed by Jempol, 15% and Port Dickson, 13%. The rest of the districts held less than 10% of the population from a district level. The ethnic composition of the population consists of Malays (56.0%), Chinese (24.2%), Indian (15.3%), and other races (4.5%). Source: NSIC, National Statics Department, UPEN From 2005 to 2008, Negeri Sembilan has consistently experienced positive GDP growth, raking in RM 16.243 million in 2005 and growing to RM 19,353 million by the end of 2008. Overall, 2009 was seen as a challenging year as the GDP exhibited a negative decline of 1.3%, in comparison to 2008 which saw a growth of 3.8%. With regards to GDP Per Capita, Negeri Sembilan is estimating a 2010 contribution of RM 22,849. Source: UPEN The development of Negeri Sembilan exemplifies the focus and ability of the state to adapt to a changing economic and development landscape. Peering back to the early 90's, the state has evolved from being a predominantly agriculture based economy to a manufacturing driven economy. Even with the transformation, the state still continues to ensure a balanced growth. This is evident based on efforts placed in the agriculture sector, for example The National Feedlot Centre and Taman Kekal as well as the development of industrial zones to attract major foreign investors such as Samsung and Coca-Cola. Moving beyond, a new focus is at hand as the state prepares the services sector to take the lead in growing the local economy. Source: Negeri Sembilan Structural Plan, NSIC Being uniquely positioned; pinned in the central region bordering Selangor, Pahang, Johor and Melaka, enables Negeri Sembilan to leverage on the development of its surrounding neighbors. For example, as Melaka thrives as a developed state the spillover allows for growth synergies in bordering districts like Tampin, Rembau, and Port Dickson. The same goes with Johor, in which the synergy between Segamat and Jempol allows for the supply of manpower and workforce. Source: Negeri Sembilan Structural Plan

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As it takes the leap forward the key vision of the state is grounded on the vision of "Negeri Sembilan Maju 2020". While the state is still in the progress of aligning its key indicators, as of this report there is a draft on10 key lead indicators and another 76 secondary indicators to propel the state to achieve its vision. A key planned transformation to make this a reality is the elevation of the services sectors in particular the growth of the tourism subsector as a strategic initiative. In 2009, the state managed to attract 2.1 million visitors compared to 1.9 million the previous year. Source: Kajian Pelan Strategik Pembangunan Ekonomi Negeri IDC notes that the governing driver for the state as a whole is based on the vision to be a developed state by 2020. From an ICT point of view, aside from the key ICT facts (i.e. PC and broadband penetration) there is no clear governing ICT strategy except to support the attainment and achievement of the key state economic indicators. An overview of the main economic sectors based on districts along with efforts to provide public internet access in Negeri Sembilan is displayed below;

FIGURE 4
Districts in Negeri Sembilan by Main Economic Sector

Source: Negeri Sembilan Structural Plan, 2007

Based on feedback from Jabatan Perancangan Bandar dan Desa Negeri Sembilan, IDC notes the following amendments to Figure 4 Change of Kuala Pilah as a designated Agropolis to Sumberjaya Agro dan Eko pelancongan.

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It is noted that the listed number of Community Broadband Centers originally under figure 4 has been removed. This is because the data represented are aspired plans which have not been set in stone. That said IDC notes, that during the research period plans were in place to increase the number of Community Broadband Centers across the state.

Economic Landscape
Negeri Sembilan Key Contributing Sectors
The current economic landscape of Negeri Sembilan is driven by the manufacturing sector, which contributes just under half of the state's GDP of RM19.58 billion. The table below illustrates the breakdown of the state's GDP based on the key industries/sectors.

TABLE 1
Negeri Sembilan Key Industry/Sector growth 2006 -2009
Industry/Sector (RM Million) Pertanian Perlombongan & Kuari Pembinaan Pembuatan Perkhidmatan Total Overall Growth
Source: UPEN

2006

2007

2008

2009

1,226 17

1,187 19

1,222 19

1,292 19

370 9,443 6,637 17,744 9.2%

385 9,781 7,238 18,653 5.1%

421 9,848 7,792 19,353 3.8%

485 9,338 8,449 19,583 -1.3%

IDC's observation and analysis on key economic sectors are as follow:


Manufacturing

Negeri Sembilan has emerged as a state which has a strong focus on the manufacturing sector. In terms of subsectors, the E&E segment dominates the manufacturing sector with over 60% of export value derived from this subsector. Of the 30 projects approved in 2009, there are equal numbers of new projects as opposed to expansions showcasing robustness to grow. Foreign investment still continues to be the key growth driver with over 68% of the investment originating outside of Malaysia.

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This sector still contributes a good bulk of Negeri Sembilan's GDP and is a strong driver for employment. In 2009, it is estimated that an additional 2,202 jobs was introduced into the market as a result of the growth of this sector. The growth of this sector is expected to continue as a result of positive investment during the 2007-2009 period before transitioning to being a services sector led economy.

IDC notes that while the manufacturing sector is currently the largest contributor to GDP, the state does expect this to eventually change with Services sector taking the lead. Source: UPEN, MIDA

FIGURE 5
Dynamism in the manufacturing industry

Source: UPEN, IDC

Services

The services sector is earmarked to take lead as the key GDP contributor of the state. While the subsector ranges from tourism, communications, public services and others, the key to the current strong growth is the tourism subsector. The tourism sector, poised to drive the services sector, being the single largest GDP contributor. A key goal for the state is to ensure tourism growth across all the districts of Negeri Sembilan as opposed to having growth driven in only key areas. With that IDC expects intensifying efforts to ensure that the 7 local districts are able to position themselves uniquely with key attractions. IDC notes that the overall Services GDP contribution is lagging behind the overall national GDP contribution. In terms of

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initiatives, the ability to grow this subsector is 3 fold. The first being the ability to attract, second being the ability to maximize spending across the value chain and finally the ability to entice for follow up returns. The success of which is seen as hinged upon the ability to create a relevant, competitive, and sustainable value chain. Source: UPEN, Tourism Malaysia

TABLE 2
Tourist Attraction to Negeri Sembilan
Attraction Homestay Historical and Cultural Sites Ecotourism Beaches Shopping & Retail Medical Tourism Sports recreation/tourism
Source: UPEN, Ministry of Tourism

Examples Homestay Pelegong, Homestay Lonek, Homestay Kuala Klawang Negeri Sembilan Muzium, Muzium Adat, Muzium Tentara Darat Hutan Lipur Ulu Bendul, Taman Tasik Seremban, Hutan Lupur Jeram Toi Teluk Kemang, Pantai Purnama, Pantai Tanjung Biru Jusco Seremban 2, Seremban Parade, Terminal One Seremban Specialist Hospital, Columbia Asia, Nilai Cancer Hospital Seremban International Golf Club, Port Dickson Golf and country club

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FIGURE 6
International vs. Domestic Tourist by District

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

International Domestic

Source: UPEN

Agriculture

As detailed earlier, Negeri Sembilan has gone through different development phases with the GDP contribution of the agriculture sector showing a decline compared to the early 90's as the state shifts its overall focus. However, there continues to be strong initiatives to support the overall growth of the sector as its growth continues to be pivotal as part of an overall plan to propel the state to developed status by 2020. Negeri Sembilan has a total land bank of 664,591 hectares. As of 2009, 308,267 hectares or 46.38% is dedicated for agriculture. In terms of core focus the plantation of both Rubber and Palm Oil take up priority with over 96% of the local land bank allocated at 132,041.13 hectares and 166,501 respectively. In terms of land ownership for Rubber estates, it's noted that there is strong ownership coming from the small individual farmers which makes up an aggregate of 52.07% of the land bank. That is followed by FELDA at 27.78% and private estates 10.28%. Hence, IDC sees that efforts to work closely with small-scale individual farmers to be essential to achieve state level objectives. The predominance of small scale farmers and the lack of large, industrial scale companies will limit the ability of both the nation and the state to comply with good agricultural practices limiting overall scale and growth. Moving away from Rubber and Palm Oil, there is a growing focus in terms of other plantations. Production levels growth has surged by 26.41% from 2008 to 2009 landing the production capacity at 104,168.02 metric ton. Fruit production continues to be the key plantation for the state standing in at 57,134 metric ton at 2009. This is a positive improvement given that in 2008 the land mass was just slightly less at 5,363.50 with a yield capacity of 44,382.40. Paddy, Industrial plantation and

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vegetables grew at 15.7%, 9.5% and 56.7% respectively. For vegetables there is a big jump in land bank expansion from 654 hectares in 2008 to 957 in 2009. In terms of efforts, the local state government has also introduced strategic initiatives to increase the production levels of fruit and vegetation. Clustering on government land has led to key projects such as Permanent Food Production Areas (TKPM) and Ladang Rakyat being introduced Source: UPEN, MOA

TABLE 3
Negeri Sembilan Land usage by plantation type
Type of Plantation Rubber Palm Oil Paddy Coconut Fruits Vegetable Industrial Plantation Total
Source: UPEN, MOA

Size 132,041.13 166, 501.00 1,643.00 1,105.70 5,376.20 957.46 643.20 308,267.69

Percentage (%) 42.83% 54.01 0.53 0.36 1.74 0.31 0.22 100.00

Construction

This sector contributed about 2% of the GDP with a growth of 15.2% spurred by initiatives under RMK 9 and the Economic Stimulus plans. This sector is expected to grow in line with development efforts but more from a pull through effect as opposed to a driver for growth. There are key initiatives which the state government continues to pursue including the positioning of Seremban as a home for KL workers. The second home program is expected to prompt for the growth of the construction sector especially given the growing population located in Kuala Lumpur. The unique positioning of Negeri Sembilan points to the ability to literally house populations as expansions take play. Example of efforts includes Sime Darby's Vision City. Source: UPEN, IDC
Mining

While the GDP contribution is relatively small compared to the rest of the sectors, there continues to be key areas of initiative which the state has the potential to leverage on. As an example, Negeri Sembilan is rich with Feldspar resources

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allowing it to capitalize on the market of ceramic and pottery producers. While this may not be the strongest area of growth contribution the possibility exists. Source: UPEN,IDC Given the above mention dossier of the key industries, IDC notes that there is no clear ICT development roadmap which enables the permeation of ICT into the corresponding industries. IDC sees the efforts to be more one off or as part of a federal driven initiative.

Key Economic Targets


With the vision to be a developed state by 2020, Negeri Sembilan has set key targets to drive the state forward. These key targets ensure that the state grows holistically to achieve its goal to be a developed state. The 10 High Level Indicators are as follow and serve as a reference

TABLE 4
High Level Indicators for Negeri Sembilan Maju 2020
Key Performance Indicator GDP per Capita Annual GDP growth rate Employment rate Population growth rate Number of incidents under extreme poverty Manufacturing GDP contribution Services - Tourism - Biotechnology - Public Sector Services - Other Services Target RM 40,000 6.5% to 7.0% 70% 1% 0 2010 forecast RM 26,722 4.9% (estimated) 61.3% 1.1% 0.0031%

31% 55% 30% 8% 10% 7%

47.68% 43.14%
N/A N/A N/A N/A

Agriculture Others
Source: UPEN, 2010

9% 5%

6.60% 2.58%

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It is inherently important to consider how each indicator eventually rolls up to the state goal of achieving the GDP per Capita contribution of RM 40,000 as this will be the key indicator of achieving a developed state status. With regards to this, the state has earmarked key industries and initiatives to be the driver for growth:

TABLE 5
Key Industries and planned initiatives
Industry Agriculture Objective - Fortify and grow the sector - Unique Go-To-Market to differentiate and to grow Negeri Sembilan as a Agriculture player Initiatives - Clustering on government land has led to key projects such as Permanent Food Production Areas (TKPM) and Ladang Rakyat being introduced. - Cultivation of ornamental fish - The introduction of the Beef Valley in Gemas - The development of the Pedas Halal development park Manufacturing - Focus on progressing up the manufacturing value chain - Identifying and growing growth clusters by regions. West side the focus is on E&E, Machinery and chemicals where as on the east side the focus is on food manufacturing and agriculture. - Development of downstream activities in Kuala Pilah Jempol and Jelebu focusing on food products - Focus on growing high potential industries such as biotechnology - Development of new industrial zones like Sendayan TechValley Services - To improve the positioning and offering of the tourism sector across all districts - Development of regional key products across Negeri Sembilan

Source: UPEN, 2010

In moving the economy of Negeri Sembilan forward, the state government themselves has its sights set on the proliferation of ICT. The key objective is to ensure that Negeri Sembilan has the capabilities, network and methods to leverage and benefit the information based society.

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ICT as a Strategic Pillar for Advancement


Through IDC's research it is apparent that the state of Negeri Sembilan sees value in the usage and development of ICT. That said, there is currently no active overarching focus on a statewide ICT blueprint that governs how ICT is to function as a strategic pillar propelling advancement to the state. Although there is a continuous support and drive to position ICT as an enabler to support overall growth and the attainment of the vision of the state, the lack of an overall direction limits the permeation of ICT. That said, IDC has uncovered myriad initiatives which have been put in place by various key stakeholders, both government and non-government agencies, in order to propel and enhance the state technologically. These initiatives eventually roll-up to a broad agenda of societal development through the increase awareness and access of ICT. As common with governmental efforts, one of the largest drawback of initiatives has been the silo nature in which it has been developed and the fragmented nature in which the state government has approached these projects. With that in mind, the true benefit of ICT as an enabler beyond just ICT functions to the enablement of traditional economies has yet to bear significant results. Albeit the issues, the state government is adamant in seeing through the supporting nature of ICT to the attainment of the state vision. Some of these programs are as follows; Development departments of application systems within government agencies and

Setting up of E-Komuniti/Telecentre General Human Capital Development Program for development of ICT ready Human Capital Development of Negeri Sembilan State telecommunications infrastructure Society development in ICT Development of e-Government services to the public IDC notes that all the initiatives can essentially be rolled up and aligned with the objective of equipping the society to be a part of and to leverage on a knowledge based economy.

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Negeri Sembilan State ICT Situational Analysis


ICT Blueprint Review
In terms of a holistic ICT strategic plan, even though there was a Negeri Sembilan ICT Strategic Plan in 2003, IDC considers the state starting from a clean slate as efforts to date tend to be of a silo nature aligning to evolving strategic initiatives as opposed to a holistic plan. IDCs take on the 2003 ICT strategic plan is that it was not implemented as a whole as only certain programs were considered limiting its function as a state wide strategic blueprint. There are piece-meal indicators for example broadband penetration which indicates the progressiveness of the state but a current overarching blueprint which governs how ICT is to be developed and permeated for the strategic advancement of the state is not officially penned as a current strategic state wide ICT blueprint. A closer review of the previous strategic plan and its implication points to the following: The development of the plan was aligned to the strategic thrust and priorities of the state in 2003. The strategic thrust and priorities include promoting growth in priority sectors, development of e-commerce, the shift from P-Economy to K-Economy, increasing support to entrepreneur development, human resource development, Infrastructure accessibility, balanced development in the state, addressing social issues to narrow income imbalance and improve quality of life. With the strategic thrusts and priorities at hand the master plan addressed key areas of ICT opportunity in which the government can take the next step forward. (listed in table below) With that in mind it is important to note that the key to the plan is the provision of ICT applications by the government. Another key finding obtained through the research period is that while the strategic master plan was holistic in nature with the government being the primary driver, only bits and pieces of the plan were adopted.

TABLE 6
ICT Strategic Plan 2003-2008
Strategic Thrust Promoting growth in priority sectors, human resource development, balanced development in the state Infrastructure accessibility, addressing social issues to narrow income imbalance and improve quality of life, Infrastructure accessibility ICT Opportunity Applications to support Business, Citizen and government deployment Application to address business needs of particular agencies

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TABLE 6
ICT Strategic Plan 2003-2008
Strategic Thrust Achieve balanced development, Improve amenities and communications and infrastructure, holistic development corridor planning, industrial development in eastern region, develop districts, develop agriculture in eastern region, develop existing townships
Source: UPTM

ICT Opportunity Knowledge management to manage shared knowledge

In producing the final set of recommendations, IDC has endeavored to include key synergy areas of the 2003 ICT Strategic Plan. IDC notes that there are existing department/agency level ICT strategies either driven in house or by the federal government which drives the ICT development of selected agencies and departments, however an overarching driver for the entire state does not exist in full form. After extensively reviewing ICT efforts developed, executed and planned by the state, IDC is of the opinion that the informal ICT direction taken by the state took into consideration several key documents developed on a federal government, in order to maintain its allegiance and cohesiveness with the activities forged by the federal government. These federal level strategic documents considered were; National ICT Roadmap developed by MOSTI in 2007 National Broadband Plan developed by MCMC in 2006 Malaysian Public Sector ICT Strategic Plan developed in 2003 A classic example of the actual execution of the above is seen in the use of the National Broadband Plan to benchmark broadband penetration as a base level for state level initiatives like 1NS Wireless City as well as the proliferation of e-community centers to bridge the digital divide. Adding to that, the detailed Public Sector ICT Strategic Plan which is developed by MAMPU also served as a stepping stone for the proliferation for e-services to the community. Some of the offered e-services include e-Complaints, e-Assessment, e-Rental and others. Through extensive research, IDC is of the opinion that the overarching agenda which governs all state focus aligns to the vision of "Negeri Sembilan Maju 2020". While the strategic economic indicators are being refined, the release of lead and secondary indicators in 2007 point towards achieving developed status by 2020. Of that ICT is broadly seen as a strategic enabler to empower key industries for growth and attainment of both lead and secondary indicators. As detailed out in the draft strategic economic plan for Negeri Sembilan, IDC notes that objectives executed by the state does align to an overarching vision to ensure that the state has the capability and capacity in terms of infrastructure , network and

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methods to participate and leverage in the evolving knowledge base society. IDC is of the opinion that all ICT paths lead to this one vision which in turn supports the formal vision of "Negeri Maju Menjelang 2020".

Current ICT Environment


Policies

Based on the current draft of the strategic economic plan, IDC is of the opinion that the following policies are set in place. As part of the effort to attain its vision of readiness, Negeri Sembilan has outlined several key policies and objectives moving forward in which they would like to achieve. These policies and objectives have been outlined as below; Key Objective: To build state wide infrastructure and capabilities including those in rural areas to ensure success in overcoming economic and social barriers driven by the narrowing of the digital divide. Vision: To ensure that the state has the capability and capacity in terms of infrastructure, network and methods to participate and leverage in the evolving knowledge base society.
Key Strategic Policy 1: Increase overall ICT penetration especially in the eastern region.

The goal of this strategic policy is to ensure that overall ICT penetration increases through the introduction and execution of awareness programs. The state government sees building demand through awareness as a strategy to drive overall ICT penetration with the promotion of activities and programs related to lifelong education and growth as a key. Current Situation IDC notes that the above strategic policy aligns to the ICT strategic plan of 2003 highlighting the development of the eastern region. The eastern region of Negeri Sembilan is a reference to the connected districts of both Jempol and Tampin. In breaking down the different growth sectors by the 7 districts it is noted that both Jempol and Tampin have economies which are very highly dependent on agriculture development. Tampin is best known for the National Feedlot center, and Jempol as an R&D hub for Agriculture. With reference to Jempol, all 4 of the completed and running Community Broadband Centers are located in Jempol, running across Serting Ulu, Serting Ilir, Jelai and Rompin and are initiated to allow both entrepreneur and ICT penetration through awareness. Jempol has also attracted the establishment of 5 Medan Infodesa infrastructure setups and 4 Universal Service Provider initiatives. Other Initiatives related to the development of Jempol includes the "gerak gempur ICT" across schools. It is also noted that in more recent times there is a focus by MCMC to instate Jempol as a digital district through the Digital Jempol Initiative. With this initiative efforts are underway to provide the following services to the district:

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Digital Experience Center - Free Internet and content Free Wireless internet access Virtual Jempol Memoria To bridge digital divide through awareness and demand E-Services Continuous education efforts With regards to Tampin, as part of the overall pipeline, the planned number of community broadband centers is 6. Program Medan Infodesa has been established in 3 locations including Gemencheh and 2 under the Universal Service Provider Initiative. It is also noted that while Tampin has officially launched its 2010-2015 strategic plans. As part of its overall SWOT, there are no action plans taken to improve the identified weakness in terms of poor ICT development.

Strategic Policy 2: To increase the overall ICT competency level in Negeri Sembilan with the setting up of infrastructure such as smart schools in rural areas.

With regards to this goal, the state government is to work hand in hand with the Ministry of Education, alongside the Ministry of Rural and Regional Development as well as the private sector to supply PCs to schools in rural areas as well as to increase the number of Smart Schools. Current Situation In terms of the education system in Negeri Sembilan, there are a total of 451 schools with 344 schools catering for primary school students and 117 for secondary school students. In terms of overall spread there are 4,825 primary school students and 95,292 secondary schools. Of these 451 schools a total of 9314 PCs have been commissioned to support the increase in ICT competence among students. 1 primary school teacher : 13 primary school students 1 Personal Computer : 20 primary school students 1 secondary school teacher : 12 secondary school students 1 Personal Computer : 27 secondary school students It is noted that the congregation of PCs is in the state hub accounts to 37% of the PCs allocated to primary schools and 35% in Secondary School in the state. With regards to smart schools there are a total of 6, with 2 located in Seremban.

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Strategic Policy 3: Encourage the development of telecommunication access and reasonable i nternet access in rural areas

The focus is for the state government to pave the way for telecommunication providers to build the necessary telecommunication infrastructure in support of the proliferation of ICT especially internet through high speed broadband. Current Situation As of 1Q2009, the state currently has a cellular penetration rate of 115.7%, an indication that telecommunication access across the state continues to grow at a healthy rate. The fact that the penetration rate is above a 100 is indicative of the usage of mobile devices beyond basic use. In terms of internet access there are 89 e-community/telecenter initiatives across the state. In terms of partnership and initiatives the state government works closely with key infrastructure stakeholders like TM for the 1NS Wireless City initiative as well as through MCMC, KPKK, KKLW, and KPKK. The focus in forging access through the entrance of telco providers sees efforts from YTL-e solutions for its 4G coverage as of December. In terms of Hotspots, as of 2010 there are 149 available locations, a significant growth compared to the previous year. The latest broadband penetration rate for Negeri Sembilan is at 65.9%.

Infrastructure
When discussing the Infrastructure developments of Negeri Sembilan there are two key areas to address, Internal and External. With reference to the internal portion, IDC sees the development initiatives as driven by and primarily for the state government (including e-services to public). Externally, the overall development focus is outside the state government with the public as the key priority. A snapshot of key stakeholders involved includes: Telecommunication service providers Celcom, Digi, Maxis, Time, YTL etc Tower Operators Rangkaian Minang Federal Agency MCMC, KeTTHA, KKLW etc State Unit Pengurusan Teknologi Maklumat IDC notes the following as key infrastructure initiatives planned and executed as part of an overall infrastructure growth strategy.

TABLE 7
Key Infrastructure related initiatives
Program Community Broadband Centers Key stakeholder MCMC Remarks 4 implemented but with a suggested

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TABLE 7
Key Infrastructure related initiatives
Program Key stakeholder Remarks plans across the state ** IDC notes that the above figure has been amended post the submission of draft report and comments from MCMC Program Internet Desa (PID) KeTTHA Pos Malaysia Berhad Lenggeng & Pos Malaysia Kota Rembau Total of 18 Locations Seremban - Kg. Jijan, Kg. Kanchung Port Dickson - Pejabat Kemas Bandar Port Dickson, Kg. Jimah Baru Rembau - Kg. Pedas Gaing Jelebu - Kg. Lakai, Kg. Gagu Kuala Pilah - Pusat Kegiatan Masyarakat Kuala Pilah, Kg. Terachi Jempol - Pusat Kegiatan Masyarakat, Batu Kikir, Kompleks Pusat Sumber, Felda Palong 9, Kg. Serting Ilir, Kg. Air Itam, Kg. Felcra Rompin Tampin - Kg. Tengah, Gemencheh, Pusat Kegiatan Masyarakat Jelawai, Kompleks Pusat Sumber, Taman Gunung Emas, Repah Gemas - Kg. Seri Gemas Universal Service Provider KeTTHA Total of 32 Locations Seremban - PD Masjid Kariah,Sikamat, PA Pekan Mantin, PD Bangunan Sekolah KAFA,Kuala Sawah Rantau, PD Kg. Bahagia Jiboi, Ampangan, PD Kampung Kapal, Balai Raya Kg Kapal, Lenggeng Port Dickson - PD Kg. Bagan Pinang, PA Cwgn Port Dickson, Jln Pantai, PD Kg Jimah Baru,Balai Raya Kg Jimah Baru, PD Kg. Pasir Panjang Rembau - PD Kampung Lenggong Ulu Kota,PD Kampung Rendah, PA

Program Medan Infodesa

KKLW

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TABLE 7
Key Infrastructure related initiatives
Program Key stakeholder Remarks Cawangan Rembau,Jln Batu Hampar, PD Kg. Pedas Hilir, Balai Raya Kg. Pedas Hilir, PD Kampung Seri Kendong, Bangunan KAFA Kg Seri Kendong, PD Kg. Titian Akar, Kota Linggi Jelebu - PD Kg. Chennah, PD Simpang Pertang, PA Cawangan Jelebu, PD Kg Gagu, Kuala Klawang, PD Simpang Gelami, Balai Raya Simpang Gelami Kuala Pilah - PD Kampung Talang, PD Seri Menanti ,Dewan Tungku Najihah, Perbadanan Perpustakaan Awam Daerah Kuala Pilah, PD Ulu Bendul, Pepustakaan Desa, Masjid Kg. Sungai Jempol - PD Air Hitam, Kg. Felcra Air Hitam, Serting Ilir, PD Felda Serting Hilir, Perpustakaan Awam Cawangan Seri Jempol, PD Kg Bukit Kerdas, Batu Kikir, Kuala Jempol Tampin - PD Ayer Kuning, Perpustakaan Awam Cawangan Tampin Gemas - PD Felda Jelai 4

Pusat Maklumat Rakyat (PMR) Provisioning of TM Hotspots 1NS Wireless City

Jabatan Penerangan Malaysia TM Kerajaan NS & TM

7 locations with Jempol inactive 178 access points across the state 7 key locations Seremban - Dataran Seremban, Taman Tasek Seremban (Tengah), Taman Rekreasi (berhadapan Klana Resort) , Seremban Parade Entrance (Kenny Rogers / Kedai Mamak), Terminal 1 (ruang menunggu bas) Seremban 2 - S2 City Park (sebahagian kawasan / wakaf) Senawang - Dataran Senawang, Kawasan letak kereta (tengah) , Kaki lima restoran Nilai

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TABLE 7
Key Infrastructure related initiatives
Program Key stakeholder Remarks Majlis Perbandaran Nilai (MPN) , Dataran Nilai , Murni Nursing College / Asrama Universiti Islam Antarabangsa (IIUM) , Giant Hypermarket Nilai (Commercial Lot Area berdekatan tempat letak kereta) Port Dickson - Batu 4, Wakaf Batu 4, Tapak Pasar Malam, Batu 8, Dataran Kemang, Wellness Zone (sebahagian kawasan / pintu masuk) Tampin - Majlis Daerah Tampin (Laman Segar, Dewan Majlis) , Tampin Square (kawasan lapang berhadapan kedai kain Nagoya Tampin), Stadium Tampin (Padang Serbaguna, Grand Stand), Taman Rekreasi Tampin (berhampiran gelanggang squash) , Dataran Tampin Rantau - Balai Raya Rantau, Pusat Khidmat ADUN Rantau, Dewan Orang Ramai Rantau, Pekan Rantau (liputan 600 meter dari TM Exchange) Investment: RM2.1mil 1NS*Net Kerajaan NS & TM Upgrading and consolidation of existing Public Sector Network Investment: RM 12 mil Mini Multimedia Super Corridor
Source: IDC, 2010

Kerajaan NS

Planning

Given the strategic initiative to use Internet access as a tool to create a demand on developing the growth of ICT throughout the state, it is not a surprise that the bulk of the initiatives are Internet access and provisioning driven.
Internet, PC & Cel lular Penetration

Internet penetration in Negeri Sembilan state measured as broadband penetration continues to show positive results, charting 29% penetration by the end of 2009. However, with concentrated efforts from both the state and federal government, broadband penetration is up to 32% penetration per 100 household at Quarter 2 2010 placing them ahead of states in East Malaysia, Perlis, Perak, Pahang and others. This aligns with its quest for the proliferation of broadband and internet access.

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Below the chart exemplifies Negeri Sembilans position in broadband penetration relative to other states;

FIGURE 7
Broadband Penetration by States (Per 100 Inhabitants)

Johor Kedah Kelantan Melaka Negeri Sembilan Pahang Pulau Pinang Perak Perlis Selangor Terengganu Sabah Sarawak Kuala Lumpur Labuan Malaysia 0%

35% 22% 16% 35% 32% 21% 50% 27% 22% 56% 23% 17% 24% 105% 34% 38% 20% 40% 60% 80% 100% 120%

Source: MCMC, Q2 2010

As highlighted earlier, the level of broadband penetration has grown further. MCMC highlights that the latest broadband penetration figures for Negeri Sembilan is at 65.9% of households. While broadband penetration does not cover access to free Wi-Fi, Negeri Sembilan's strong focus on the proliferation of access to Broadband is seen as a combined effort of various programs which encourages the uptake and penetration. For example the 1NS Wireless City effort is a state government initiative to provide Internet access platform using wireless broadband technology to the public in focused areas throughout the state. Access is currently available in 7 key strategic locations across Seremban, Seremban 2, Senawang, Nilai, Port Dickson, Tampin, and Rantau. This initiative is in corporation with TM and is a 3 year period ending in October 2013. Aside from this initiative the setting up of e-community centers also takes priority with over 89 sites to date across the state and more in the pipeline. All in all, IDC notes that the state government is using broadband as the engine to drive ICT awareness and eventual adoption. What comes next in line is the content driven with as access increases.

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In proliferating the reach of broadband further into the state, TM via its streamyx combo package has begun to offer its packages to several areas within Negeri Sembilan. The figure below displays the coverage areas as of December 2010

FIGURE 8
Current Coverage of Streamyx Wireless Combo

Port Dickson Bahau Seremban

Bukit Bemban

Streamyx Wireless Coverage

Tampin

Jelebu

Kuala Pilah

Source: IDC, 2010

Further unto this, private mobile operators have announced plans to further enhance delivery of broadband service into the state, taking into consideration economic and density of the areas. The figure below exemplifies the current coverage of broadband by mobile operators across Negeri Sembilan by district, taking into account HSDPA, 3G and GPRS/EDGE connectivity;

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FIGURE 9
Broadband Coverage by Mobile Operators (HSDPA, 3G, GPRS/EDGE)

Source: IDC, 2010

The above data is based on the coverage maps provided on the operator's website and is reference to the general availability of broadband coverage. Further unto this, YTL through its Yes solution which was launched in December is also making its way to Negeri Sembilan. IDC views Cellular Penetration and PC Penetration as a key indicator for ICT literacy within a society, and lower penetrations lead towards an assumption of lower literacy and utilization rate. Majority of societies who proliferate in ICT across the world usually would have PC penetration close to or more than 50%, with cellular penetration breaching the 90% mark. With this measure, Negeri Sembilan is on the right path with regards to cellular penetration but still a long shot from reaching a healthy PC penetration rate. The idea behind cellular penetration is to understand the level of progressiveness of the state in comparison to other states and Malaysia as a whole. IDC sees the proliferation of cellular devices as a foundation to mobility, leading to greater demand for eventual smart piping. As of 2008, the cellular penetration for Negeri Sembilan stands at 92.4% as compared to 89.4% the previous year. With the recent announcement of tax exemption across the board, IDC expects penetration to pick up and as a result the latest numbers from MCMC indicate penetration rate beyond 100%. With fundamental devices on hand, the synergy driven by content development is likely.

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FIGURE 10
Cellular Penetration by State (2008)

160 140 120 100 80 60 40 20 0

151.8 101.3 102.7 70.6 101.4 96.4 62.6 58.5 65.7

88.1

92.4

86.4

85.9

94.8

Source: MCMC, 2010

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FIGURE 11
PC Penetration by State (2007)

Malaysia Sarawak Terengganu Perlis Pulau Pinang Negeri Sembilan Kelantan Johor 0 5 10 15 20 25 30 35 40 45 50

Source: MCMC, 2010

While the latest data from MCMC is of 2007, the growth from the previous recorded year indicates marginal growth in comparison to states like Melaka and Pulau Pinang. Series 2 represent the penetration in 2007 as opposed to series 1 with the penetration for 2004. It is noted that as of 2007 Negeri Sembilan is still below the national average. In terms of initiatives, the focus on the permeation of ICT is centered on the provisioning of Broadband access. PC penetration is left to one-off initiatives as well as federal initiatives such as the netbook initiative. To date 8000 units of netbooks under the National Broadband Initiative has been distributed with a goal of 23000. The table below shows a comparison between Negeri Sembilan State's PC and cellular penetration against Malaysia as a whole;

TABLE 8
PC & Cellular Penetration (Negeri Sembilan VS Malaysia)
Malaysia Cellular Penetration PC Penetration
Source: MCMC, IDC, 2010

Negeri Sembilan 92.4% 29.7%

98.9% 31.3%

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* Latest Cellular penetration is above 100% In spite of the efforts from the state government, and initiatives conducted by the federal government agencies, "technology" penetration per say into Negeri Sembilan is relatively low, with very few industries and society being dependent on it.

ICT Graduates, Workforce & Companies


The core focus on human capital development in Negeri Sembilan starts from the grassroots as detailed out in the earlier portion of this report. Based on research there is currently no known holistic end to end program focused specifically on the growth of ICT professionals. Taking a step back, the Malaysian Smart School initiative is a learning institution that has been systematically reinvented in terms of teaching and learning as well as the improvement of the school management processes in order to help students cope and leverage on the Information Age. In terms of component make up the Smart Schools are to leverage on the following components Teaching-Learning Materials Technology Infrastructure Smart School Assessment System Professional Trained Teachers System Integration Support Services Smart School Management System Delving into the state, as of 2009 of the 439 indentified schools 6 are designated as Smart Schools landing a ratio of 1.3%. Out of this, one is ranked as Level B+. In total there are 88 benchmarked Smart Schools across Malaysia with Negeri Sembilan housing 6.8%. Moving into tertiary education, the efforts are not necessarily coordinated as the focus is by large based on market demand. As compared to states like Penang, Melaka or Kuala Lumpur the vibrancy of Negeri Sembilan's local ICT industry is not as diverse and opportunity rich. With that, the demands for those who aspire to focus on ICT and stay in the state become limited. A sample snapshot of Private Institution of Higher Learning which offers ICT courses is detailed below.

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TABLE 9
Sample snapshot of Private Institution of Higher Learning which offers ICT courses
Private Institution of Higher Learning KOLEJ TAFE INSTITUT JATI(KOLEJ LEGENDA JATI) KOLEJ UNITI PORT DICKSON Programs/Courses Certificate, Diploma level ICT courses Degree level - Computer Science & Information Technology Diploma level - Diploma Sains Komputer, Diploma In Computer Network (DCN) Certificate, Diploma, Degree level Bachelor of Computer Science Bachelor of Information Technology (Hons) Diploma in Business Information Technology Diploma in Computer Science
Source: IDC, 2010

KOLEJ INTI MALAYSIA KOLEJ NILAI ANTARABANGSA

IDC's intelligence indicates that the number of pure play ICT companies in Negeri Sembilan is currently low. Of the 2318 listed ICT companies in the 2008 WCIT Malaysian directory there are only 7 listed under the state with the bulk being Institutions of Higher Learning with the rest focused on trading. While the total number of ICT companies is expected to be higher, IDC notes that the limited number as reflected under the WCIT directory is reflective of the state of the industry. At this point, it is clear that the state has no single mechanism to progress the development of ICT from the grassroots to graduates and into the workforce. IDC's take is on the level of focus and demand which relates to the overall vibrancy of the ICT ecosystem and value chain. In analyzing the current industry ecosystem, it is clear that progressing from the upstream to the downstream shows gaps which are not filled simply because of a lack in demand. ICT Upstream IDC refers to this as the design, build and production of ICT products and solutions. It can range from software development all the way to ICT components manufacturing and assembly and design. In referencing the state, it has had success in pulling ICT related investors like Samsung which essentially brings in Foreign Direct Investment to the state which then ties in to jobs. In fact the E&E subsector brought in RM 142.6 million in investment to the state 2009. The issue with regards to the upstream of ICT is the lack of diversification to grow other ICT areas such as Software Development, Technology related R&D, design and others. ICT Midstream The core behind the midstream of ICT looks at the reselling, marketing and distribution of ICT products. In more advanced states like Selangor the sizable number of distributors, resellers and partners to ICT

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vendors creates a vibrant ecosystem as it serves as a channel to address the demand. Taking stock of global vendors like Microsoft shows that the presence of an ICT vendor creates opportunities across the value chain supporting the growth of an economy. ICT Downstream Where there is demand there will be the need for implementation and after sales support. System Integrators are pivotal in an ICT value chain as it represents the core domain expertise of the market. Other tieins to the economy like BPO houses and call centers are seen as drivers to the above. As observed in the ecosystem of the state, the gaps which exist across the value chain are representative of the lack of demand for ICT. IDC's research points to the efforts taken by the government to address the revitalization of the ecosystem. The crux of the focus is on building awareness and the readiness of the infrastructure followed by key programs which are two pronged in providing both supply and demand. Under awareness the state government through SUKNS has initiated programs such as Hari ICT with the intention to build awareness on ICT. These programs continue to create a steady level of awareness and understanding on ICT. The most recent Hari ICT was themed ""ICT Pemangkin Komuniti Berilmu", highlighting the drive of the state to position ICT as an enabler of a smart society. This event also reaffirmed the focus of the state to increase broadband and internet penetration. Another part of building awareness is also tied to the infrastructure development through various ecommunity centers and initiatives. As of March 2010, the IT Management Unit of Negeri Sembilan estimates a total of 89 initiatives under the following respective programs. Projek Pusat Jalur Lebar Komuniti/Community Broadband Centers (CBC)provides collective community Internet access to underserved areas identified under the Universal Service Provision (USP) program. Each CBC is equipped with IT equipment including personal computers connected to the Internet via broadband to allow rural communities to enjoy the benefits of the Internet as enjoyed by those living in urban areas. It is hoped that CBC will contribute towards achieving success in national initiatives to bridge the digital divide between urban and rural communities. Pusat Internet Desa The Rural Internet Centre is the physical aspect of the Rural Internet Program. This program is part of a larger program that involves the local community directly from all aspects such as maintenance and daily management. This program is under the auspices of the Ministry of Information Communication and Culture. Program Medan Infodesa Under the purview of KKLW. It is a physical infrastructure and located in rural areas. It functions as an IT training lab, and catalyst for entrepreneurship. Projek Universal Service Provider Led by Kementerian Tenaga, Air dan Komunikasi and focused on human capital development and access to ICT. Key

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objective is to reduce digital divide, develop a knowledge based society. The goal is to develop a community clusters through the provisioning of training. Pusat Maklumat Rakyat Under the purview of Jabatan Penerangan Malaysia. Functions as an information hub for each pejabat penerangan daerah. It is to be a focal point of information for citizens. IDC notes that the infrastructure initiatives as listed above are part and parcel of cooperation with partners such as MCMC and other Federal level agencies. Other key initiatives to promote the access of growth of ICT through awareness include the launching of 1NSWireless City to provide free wireless internet access to the key areas in Negeri Sembilan. From a key program perspective, the State of Negeri Sembilan is currently in plans to embark on a first of its kind mini Multimedia Super Corridor (MSC) in the not too distant future to attract more investors to the state. This effort is seen as a tie in with existing synergies of increased broadband access as well as competitive property price. Alongside this is the development of technology parks such as techpark@enstek which has drawn in Domestic Direct Investment from Teliti.

FIGURE 12
Evolution of Information Society

Source: IDC, 2010

IDC's take on the development of an information society is depicted above. Based on research there are efforts to drive mass societal adoption of ICT driven by initiatives especially though the provisioning and access of Broadband. The effort to bridge the digital divide beyond the supply of infrastructure is seen through the efforts of programs such as Hari ICT driven by SUKNS.

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The exact stage of development for Negeri Sembilan it is not exactly aligned to the curve. For one, the combination of all infrastructure initiatives (hotspots,1 Wireless NS, E-community centers etc ) will rank it towards the mid level of the Y Axis, that said the because there is no targeted societal development it is still in the quadrant of an emerging society. IDC notes that moving up the curve would be a holistic effort and not just driven by certain key initiatives.

ICT Utilization in Key Segments


Government

Holistically, the state of Negeri Sembilan has performed well in getting its state agencies and departments "e-enabled" by advocating the utilization of ICT within the departments, and by improving the overall infrastructure as seen with 1NS*Net. IDC notes that this perception was made concrete by virtue of workshop respondents of the state government rating the state of ICT in the government to be higher than the overall state. In essence, IDC has uncovered the following points, which displays the government agencies readiness in ICT: Majority of government agencies interviewed offer a form of e-service via their agency website Aside from purely information, the agencies' websites offer services such as downloading of application forms, e-Services and web portal log-in systems Higher internet access speed was also deemed as lacking in the current scenario as of the workshop. (IDC notes that the upgrading to1NS*Net to probably have a positive bearing to this) Issues such as lack of ICT literacy and computer knowledge appears to be a large problem for many state government agencies in proliferating ICT usage within the agencies The need for a champion, ownership and management support and buy-in to drive ICT permeation Poor training development program limit the ability to achieve knowledge maturity Budgetary constraints limit the ability to plan and develop for long term strategic growth As the PBTs are encouraged to utilize e-Services as a means to communicate and interact with its citizens, the table below exemplifies the current e-Services being offered by PBTs via their respective websites;

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TABLE 10
Regional Management and Key Public Services in Negeri Sembilan Provided b y Local Municipals (PBT)
Local Municipal/Authority Majlis Perbandaran Seremban Key Roles & Responsibilities To provide various services to the residents of the town such as the disposal of garbage / waste and to upkeep the cleanliness of the town. To provide various and maintain the basic infrastructure such as roads, drains, and street lightings. To provide various social and recreational facilities such as children's playground and parks. To monitor public health - through licensing of businesses, prevention of contagious diseases and monitoring building contractors. To be involved in development projects have joint-ventures to build business centers and provide business opportunities for the public. Majlis Perbandaran Nilai To provide development control, tax management, cleanliness control, Municipal services, business control, infrastructural readiness and enforcement, and efficient/ effective public services for local residents and industries in line with the desire to turn Nilai Municipal Council into a developed industrial area. e-Assessment e-Rental e-License e-Complaints OSC Online Online License Application Online Payment Internet Banking HRMIS Webmail Helpdesk e-Tempahan Facebook e-Public e-Taksir e-Booking e-Kompaun Suggestion and Feedback Online Payment HRMIS Webmail ICT Utilization

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TABLE 10
Regional Management and Key Public Services in Negeri Sembilan Provided b y Local Municipals (PBT)
Local Municipal/Authority Key Roles & Responsibilities ICT Utilization e-Komuniti (Forum) Majlis Perbandaran Port Dickson Ensuring rational and dynamic development through planning control to preserve the quality of the environment. Supporting the efforts by the State Government to encourage growth and development in residential, tourism and industrial. Providing public health facilities. Providing the infrastructures and public amenities including recreational amenities at the attractive places. Construct and manage systematic traffic system. Majlis Daerah Jelebu To formulate and implement plans corresponding to strengthening and improving the fiscal, social, economic, and environment system. Providing efficient and effective services and basic amenities to the residents. To improve the overall development and human resource management at all level. To co-operate in planning and managing the surrounding environment towards a stable development in line with the 21st Local Agenda project. To improve development programs with the co-operation of private sector. Control municipality activity to create town atmosphere harmony. Planning and develop quality public e-License e-Suppliers e-Complaints e-Rental e-Assessment Forum Feedback Management System (FMS) Facebook Business Licensing Electronic Support System (BLESS)

Webmail HRMIS e-Form e-Service e-Kasih e-Community (Forum)\ Feedback Management System Facebook Business Licensing Electronic Support System (BLESS)

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TABLE 10
Regional Management and Key Public Services in Negeri Sembilan Provided b y Local Municipals (PBT)
Local Municipal/Authority Key Roles & Responsibilities infrastructure. Control and enforcement on by-law and rule act to ensure society's comfort. Provide effective legal service in keeping with office need, same as population and dealer by law used. Manage quality tourism service. Facilitate the deal organization service with ICT usage. Majlis Daerah Kuala Pilah To render services to all the people who live within its jurisdiction, and amongst the services To provide rubbish collection; as well as the upkeep of the town. To provide and regulate amenities for the people within its jurisdiction such as the maintenance of roads, drains and street lights. To provide various social and recreational facilities such as childrens playground; as well as the maintenance of parks. To regulate the publics health by awarding licenses to businesses, prevention of contagious diseases, as well as to administer the construction of buildings. To be directly involved in development projects such as joint venturing into construction of business centers and food courts so as to give opportunities to the public to venture into business. Majlis Daerah Jempol To modernize the district administration through automation current with information and communication technology (ICT). e-Complaints e-Payment e-Form e-Tax e-Rent e-License e-Compound e-Supplier Webmail HRMIS e-Spara Business Licensing Electronic Support System (BLESS) ICT Utilization

e-Community e-Services BLESS

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TABLE 10
Regional Management and Key Public Services in Negeri Sembilan Provided b y Local Municipals (PBT)
Local Municipal/Authority Key Roles & Responsibilities To increase the number of k-staff in the public service as the platform to efficient government service at district level. Improve the living quality of the society as the essence of solidarity through rapid implementation of physical and social programs. To lend and coordination state agencies and surrounding activities at district level. Majlis Daerah Tampin To prepare and maintain satisfying basic infrastructure in council area. To plan, control and approve all development projects by private sector. Building maintenance including sports, recreational and parks facility. To process proposal building plan according to laws accepted by council. To deliver health services, town and environment cleanliness for comfort. To access holding or property in council area for tax assessment. To enforce on all offences based on minor laws and applicable acts.
Source: PBT, IDC, 2010

ICT Utilization

Feedback Management System (FMS) Facebook Webmail

e-Cukai e-Lesen e-Sewaan e-Aduan e-Borang e-Kompaun e-Pembekal HRMIS Webmail e-Spara BLESS

The local municipals and authorities are very much guided by the state government in terms of the e-Services offered, as majority of these services are either leveraged off federal government e-services, and/or those provided on a state government level. The development of niche e-services is also possible. However, based on discussions with members from the local municipals, many of them felt that the desire for Negeri Sembilan to forge forward in terms of e-Services stems from 2 distinct issues;

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People Access to the municipal website is one thing, but taking a step forward by leveraging on the e-services offered is another. Based on the discussion with the local municipal, this is an area of touch and go with no real concrete driver as a way forward. The level of skepticism with regards to the uptake is there albeit the evidence of access. Furthermore, these municipals have reported that majority of individuals have a strong preference towards utilizing manual means to pay than subscribe to services. IDC notes that it is no longer a catch 22 situation as the municipals have taken the lead to develop and enable the services. At the end of the day, this is a matter of the provisioning of a supply but a lack of demand due to poor awareness campaigns. Lack of Infrastructure Uptake aside, many of these local municipals feel the outreach of infrastructure and broadband speeds are a huge hindrance towards offering e-Services to the society. Even if all local authorities offer basic eServices via their websites, increasing or creating more e-Services will remain stagnant as long as society demand is low and infrastructure is unavailable.
Industry

Over the last 3 decades Negeri Sembilan has evolved to meet the changing economic and market landscape. It has evolved from an Agriculture centric economy to a manufacturing based economy and in 2010 is now in the process of positioning itself as services led economy. These structural changes represent the vision of the state to achieve developed status by 2020. A stack rank between the key GDP contributions of the state by industry in comparison to Malaysia is listed below.

TABLE 11
Negeri Sembilan rolling up to Malaysia Industry/Sector Manufacturing Negeri Sembilan (% GDP) Approximately 50% Malaysia (% GDP) Approximately 30% Commentary Negeri Sembilan is currently a state which has a heavy focus on the manufacturing sector. The strong dependency on both Foreign Direct Investment (FDI) as well as the direct demand through export has resulted in a dip during the global economic crisis. The state is attempting to grow this sector albeit not being totally dependent on it In line with the effort to reposition itself, the state government of Negeri Sembilan is attempting to increase efforts to generate revenues from the services sector. During the 2008- 2009 timeframe it was apparent that this was one of the sectors which saw a lesser impact from the Global Financial Crisis. The agriculture sector will continue to be a key growth driver for the state. While the current attempts are focused on state

Services

Approximately 37%-40%

Approximately 55%-57%

Agriculture

Approximately 6%-7%

Approximately 8.2%-9.6%

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TABLE 11
Negeri Sembilan rolling up to Malaysia Industry/Sector Negeri Sembilan (% GDP) Malaysia (% GDP) Commentary level sustainability, the state government of Negeri Sembilan does have aspirations to move beyond to position the state as national producer. Construction Approximately 2%-3% N/A The sector grows in line with supporting infrastructure development. While the growth during the 2008 -2009 period is mainly derived from the trickledown effect of the stimulus plans, the future development of the state including housing development as part of broader agenda against poverty will prove as a catalyst for growth. Other initiatives such as the positioning of the sate as a second home are also expected to draw growth. In comparison to resource rich states, Negeri Sembilan is not in the position to capitalize on the Mining and resource industry as a key growth driver

Mining

Approximately 0.1%

Approximately 8%

Source: UPEN, IDC

In discussing the industry as a whole, ICT is generally seen as a supporting tool which enables efficiency as opposed to a strategic enabler and catalyst for the further development of the industry sector. While there is a good amount of industries that view ICT as an enabler to achieve sectoral growth, IDC also notes there are skeptics that have yet to comprehend the value of the permeation of ICT into key business processes. Through IDC's research, IDC is of the understanding that the lack ICT assimilation into industry sectors is a direct result of the non-existing need from customers or entities across the value chain. This lack of demand justifies for the limited focus on ICT as a strategic enabler. Upon closer inspection, IDC had uncovered that the Tourism, Education, IT sectors, were the top 3 sectors, which placed emphasis on the utilization of ICT within their respective industries. Based on this, many discussions ensued with the industry as to how ICT is able to help and propel their sector forward. Key deep-dives were conducted to uncover the importance of ICT to their businesses, as these sectors had emerged as the top 3 sectors that concede with ICT playing an integral role in the development of their sector in IDC's survey of the industry. The summary of the key points of discussion with organizations within these sectors is mentioned below;

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TABLE 12
Key Discussion Points from Top 3 Sectors
Sector Tourism Discussion Point #1 The tourism sub-sector is earmarked to be the leading GDP contributor for the services sector. Given that the services sector is positioned to be the lead GDP contributor to the state, the tourism sub-sector needs to define ways to maximize gains. ICT is seen as a platform to leap frog. Discussion Point #2 The positioning of NegeriSembilan's tourism sector is skewed towards the known attractions like Port Dickson. ICT is seen as a strategic enabler that will enable the positioning of other tourism products and attraction, creating a diverse set of offerings to customers. Discussion Point #3 Connecting entities along the tourism value chain will be a key success factor growth as competition intensifies. The ability to monitor, promote and move tourist along the value chain will enable longer stays in the state leading to higher spend. ICT is seen as platform to develop that ability.

Education

The position of Nilai as an education hub demands for the industry to take the leap forward by being a key player in the education industry. ICT not only as a product but a delivery platform in a flat world. Defining the entire ICT value chain from the upstream to midstream and downstream and mapping key areas to participate, compete or grow will be pivotal to ensure the vibrancy of the local ICT industry.

Addressing ICT awareness is a key issue that needs a holistic solution to ensure that the state is able to achieve its vision of participating and leveraging on a knowledge based economy As we are in the industry, we understand the importance of ensuring all our employees have laptops or desktops access to make sure they can deliver their work more efficiently and faster, without delay

Moving Awareness into maturity will be the key in developing information based society. ICT needs to go beyond the basic usage of internet and e-mail to enable the development of high value human capital

IT

Source: IDC, 2010

In tabulating the results across the different industry sectors it is noted that the manufacturing sector has one of the lowest percentages when it came to the positioning of ICT as a strategic enabler for growth. It was disappointing to note this as ICT generally has a key role in shifting traditional manufacturing to high-tech/end manufacturing and its valued services. Case studies having been witnessed in countries such as Ireland, where the measurable GDP boost of 2% in the sector was seen and attribute to ICT playing a role in enabling that occurrence. The pitfalls which led to the above statement are explained below; ICT is too complicated. This was ranked the key reason for poor ICT usage in the manufacturing space and is linked to the foundations in place to permeate ICT across the society. The inherent lack of awareness and maturity on ICT stifles the overall growth and positioning of ICT as a strategic enabler.

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Manual processes are currently easier, while having to implement an ICT system within is too costly at this juncture. The cost of re-training employees, installing new systems and potentially overhauling infrastructure does not leave a compelling argument for those in the manufacturing sector to shift. Not taking the level of advancement and maturity as the final factor, the local industry does have a positive view on ICT as a whole. While the penetration of PCs is more apparent in some, it is understood as to why it may be lower in others, for example the PC penetration rate of the IT industry as opposed to Agriculture industry. In terms of online presence the industry average was just slightly above 70% when it comes to the showcasing of company website where the bulk of organizations have had it for more than a year. In spite of advocating the point that ICT can be a key "game-changer" within their sectors, the industry as a whole is rather conservative in utilizing ICT in their business today which is why no tangible "case study" from Negeri Sembilan could be uncovered, showcasing the extreme benefits ICT had brought to the organization. While in general the industry agrees that ICT brings more benefits such as improvement in internal processes, enhanced customer relationships and heightened quality of products and services, the general consensus is that they feel they are already using "enough" of ICT at this point, and there's no urgency to heighten the utilization or adoption of it. IDC notes that the positioning of ICT as a broad supporting tool for the attainment of KPIs pointing to the vision as the key reason for the lack of ICT permeation. With that there is no key niche for ICT to support processes, for example the implementation of RFID tracking on livestock and plantation grids rigged with sensors for more efficient harvest. It is that inherit assimilation of ICT into an overarching industry/economy blueprint which sets the status quo on the perception on how much ICT should be used. A quick snapshot across key verticals indicates that the majority of them are content with internet speeds between 512 Kbps to 2 Mbps. IDC does however note this: While the agriculture sector has access to the fastest broadband speeds, it has one of the lowest satisfaction rates for bandwidth. It does beg the question on the purpose and need for higher broadband speeds given the lower PC utilization rates Services companies having the lowest congregation of bandwidth access has the highest demand for increased speeds.

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FIGURE 13
Broadband Speed by Sector
Description Access Dial-up (56 k/b) ADSL (512 Kbps) ADSL (2 Mbps) ADSL (4 Mbps and above) Leased Line Sufficient bandwidth Yes
Source: IDC, 2010

Agriculture Manufacturing Tourism Services Education 100.0% 8.3% 16.7% 25.0% 25.0% 25.0% 58.3% 100.0% 2.1% 29.2% 43.8% 10.4% 14.6% 70.8% 100.0% 3.6% 25.0% 32.1% 17.9% 21.4% 67.9% 85.0% 5.9% 58.8% 17.6% 17.6% 0.0% 52.9%

IT

100.0% 100.0% 0.0% 20.0% 35.0% 10.0% 35.0% 90.0% 0.0% 30.0% 40.0% 10.0% 20.0% 85.0%

In reference to the above table green represents the highest levels of bandwidth across the sectors and red represents the 3 lowest sufficiency levels. Quick wins The tourism sector has the potential to be developed into a sector with quick ICT wins. The coupling by the government to spearhead the development of this industry with the current state of readiness and positive perception creates for a good launch pad. The nascent development of tourism attractions outside of current traditional attractions allows for creative innovation allowing the positioning of ICT to address current woes. IDC sees initiatives to reposition the current tourism portal to encompass the creation of a full fledge e-service portal that connects all entities of the local tourism value chain as strong initiative for growth. From an education angle, the drive is on capitalizing the strong and growing infrastructure that the state is currently putting in place. IDC sees this as the pipes being ready but lacking the content which creates the synergy of both supply and demand. In terms of quick wins, IDC notes that development programs need to be in place to allow for awareness and growth. The table below provides a snapshot of the current expenditure in aggregate of each vertical on ICT services annually (2009)

TABLE 13
Annual Average IT spend across key verticals
Vertical Agriculture Average annual IT spend RM 7249

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TABLE 13
Annual Average IT spend across key verticals
Vertical Manufacturing Tourism Services Education IT
Source: IDC, 2010

Average annual IT spend RM 69221 RM 12021 RM 7249 RM 28943 RM 6537

The current state of ICT utilization across organizations in key economic sectors is fairly nascent. IDC uncovered that majority of expenditure on ICT is mainly in infrastructure and systems maintenance, and only found this expenditure within certain pockets of verticals. In spite of the Manufacturing sector's higher expenditure per year on ICT, this was again found in pockets, as majority of the organizations in manufacturing sector do not place emphasis on ICT to enable their business.
Society

IDC notes that there have been myriad list of initiatives to the state driven by various parties with the purpose of building awareness and encouraging overall adoption of ICT. A snapshot of previous programs is listed below. Program Akademi Technopreneur (TAP) with cooperation from PKNS, MDeC, MECD was introduced to encourage the development of Bumiputera Technoprenuers Karnival ICT Sekolah launched by MCMC and SUKNS HarI ICT initiated by SUKNS Digital Jempol and Desa Wi-Fi by SKMM In terms of overall societal ICT development, IDC notes that there isn't a single entity which has taken full ownership to support the development of an information based society. With that the idea of lifelong learning which is continuous and in developmental stages is not realized. On that note IDC does acknowledge the focus of e-community centers to drive societal ICT development. In places such as Jempol, the local initiative run through the e-community centers provides for basic ICT training as low as RM 5. There are also evidence of other centers offering more up to date training programs such as fundamentals on blogging.

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Programs & Activities

The table below is a snapshot of ICT based programs, which have been planned and implemented by the state Government, alongside the status of each project:

TABLE 14
List of State Driven ICT Programs
Upgrade of application systems for Government and State Agencies Society Development in ICT Completed based on customizing federal level applications to state utilization. Development program are one-off based on a designated schedule and represents a community outreach effort Launched on August 2010 with the focus to consolidate and upgrade the infrastructure of NS*Net, EG*Net and NRE*Net Provide Internet access platform using wireless broadband technology to the public in focused areas throughout the state. Access is currently available in 7 key strategic locations across Seremban, Seremban 2, Senawang, Nilai, Port Dickson, Tampin, and Rantau

1*NS NET

1NS Wireless City

Source: IDC, 2010

Below is a snapshot of initiatives sparked by the federal government and/or by its agencies in the state of Negeri Sembilan

TABLE 15
Federal Initiatives in the state
Initiative MyID Objective Leverage on Identification Number of citizens as a single reference point with the dealings of all government entities/function To integrate and streamline information from all government agencies in the Klang Valley Service provisioning through SMS gateway MAMPU Owner State Implication All state level agencies/department in Negeri Sembilan

eKL

Majlis Perbandaran Nilai

MySMS

MAMPU

SUKNS, Majlis Perbandaran Nilai, Majlis Daerah Kuala Pilah SUKNS, Majlis Perbandaran Seremban and Nilai All agencies

PRISMA

Internet security protection for Government Website Human Resource Management Information

MAMPU

HRMIS

JPA

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TABLE 15
Federal Initiatives in the state
Initiative Objective System for all civil servant SPEKS Accounting and treasury system for state Jabatan Akauntan Negara Pejabat Perbendaharaan negeri and all related agencies Pejabat Pembangunan Negeri, Pejabat Daerah & Tanah, Pejabat Kebajikan Negeri Pejabat Daerah & Tanah Seremban Owner State Implication

e-Kasih

Repository for poverty related information

ICU, JPM

e-merah

Repository for information on villages, community leaders and JKK Centralized system for land management

ICU

e-Tanah

NRE

Pejabat Tanah & Galian Negeri Sembilan and Pejabat Daerah Majlis Perbandaran Seremban

Pusat Komuniti Bridging Digital Divide

To reduce the digital gap between rural areas and town/city Online meeting place to collaborate, communicate and to execute Development of broadband portal to reduce the digital divide Jabatan Pertanian

Agribazaar

Jabatan Pertanian Negeri Sembilan

Projek Jalur Lebar (PJL/CBL)

MCMC & TM

Rural libraries

Source: UPTM

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Summary of Key Findings & Issues for Negeri Sembilan


The following table illustrates a summary of all key issues and its impact to the proliferation of ICT in the state of Negeri Sembilan, alongside its categorization.

TABLE 16
Key Issues Faced by Negeri Sembilan in Proliferating ICT
Key Issue Access to broadband generally focused on more high density populated areas. Quality of Service (Speed of Internet) High cost of Internet, which is causing many people to ignore the need to adopt it Synergy between e-community centers and other forms of internet access Full potential of e-community centers Pipe (Broadband) with no content Lack of awareness leading to poor utilization of ICT in daily life No champion to take ownership of the development of an information based society Lack of ICT Skills to utilize basic functions on the computer ICT Programs do not have continuity or "levels". This limits progression and growth ICT is seen as a supporting tool as opposed to a strategic enabler to the industry There is no vibrant ICT industry or wide-spread utilization of ICT across sectors Category Infrastructure Impact Medium to High

Infrastructure

Medium to High

Infrastructure

Medium

Infrastructure

Medium to Low

Infrastructure

Medium to Low

Infrastructure Society

Medium to High High

Society

High

Society

High

Society

Medium

Industry

High

Industry

High

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TABLE 16
Key Issues Faced by Negeri Sembilan in Proliferating ICT
Key Issue There is no niche or specialization, which has been ear-marked going forward. No overarching or supporting ICT blueprint to support the growth of the industry Lacking in terms of a single point of contact to champion the effort to grow ICT adoption UPTM focus is under SUKNS but there is a gap for overall development Lack of cohesive interaction and/or decision making on ICT direction for the state Alignment between departments and agencies on the objectives and goals for the utilization of ICT is poor Change management and resistances to utilization due to preference for manual processes Lack of ICT skill sets within the government sector, makes it difficult to fully adopt ICT ICT seen as a complementary role to everyday processes rather than one which can be used to simplify processes
Source: IDC, 2010

Category Industry

Impact High

Industry

High

Governance

High

Governance

High

Governance

Medium - High

Public Sector

High

Public Sector

High

Public Sector

Medium - High

Public Sector

Medium - High

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Below IDC has summarized a preliminary map of issues, which cuts across the 3 main pillars of ICT-Enabler, ICT-Industry and ICT-Society, which in IDC's opinion is stifling the growth and proliferation of ICT within the state. The table below showcases key segmented issues, which are synonymous across all 3 pillars of MSC Malaysia 2.0. Those labeled "Yes", are issues which currently pose an issue for the strategic pillar. This preliminary map of issues is further expounded upon in the gap analysis between state ICT initiatives and situations, against MSC Malaysia 2.0 framework.

TABLE 17
Map of Issues Across MSC Malaysia 2.0 Pillars
Issues Infrastructure ICT Industry Access to broadband generally focused on more high density populated areas. Quality of Service (Speed of Internet) Synergy between ecommunity centers and other forms of internet access Driving broadband access Accessibility High cost of Internet, which is causing many people to ignore the need to adopt it High cost of Internet, causing disparity in adoption across industries especially SMBs ICT Enabler Imbalance access to broadband Quality of Service (Speed of Internet) Full potential of ecommunity centers Pipe (Broadband) with no content ICT - Society Imbalance access to broadband -creating a larger digital divide limiting coordinated growth to the overall state Quality of Service Synergy between ecommunity centers and other forms of internet access High Cost of Internet threaten broadband penetration efforts Availability of matching devices to promote broadband access Maturity/Awareness There is no niche or specialization, which has been ear-marked going forward. Alignment between industry and government on the objectives and goals for the utilization of ICT is poor There is no vibrant ICT industry or wide-spread utilization of ICT across sectors ICT seen as a complementary role to everyday processes rather than one which can be used to simplify processes Alignment between government departments and agencies on the objectives and goals for the utilization of ICT is poor Resistances to utilization due to preference for manual processes within No champion to take ownership of the development of an information based society Lack of awareness leading to poor utilization of ICT in daily life ICT Programs do not have continuity or "level". This limits progression and growth

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TABLE 17
Map of Issues Across MSC Malaysia 2.0 Pillars
Issues ICT Industry ICT Enabler government There is no vibrant ICT industry or wide-spread utilization of ICT across sectors Lacking in terms of a single point of contact to champion the effort to grow ICT adoption Resources/HR Skill Sets Lack of ICT skill sets within the ICT industry in a specific niche or specialization Lack of ICT skill sets within the government sector, makes it difficult to fully adopt ICT Lack of ICT Skills to utilize basic functions on the computer ICT - Society

Source: IDC, 2010

NEGERI SEMBILAN G AP AN ALYSIS


Approach for Gap Analysis
In assessing and analyzing the overall ICT landscape for the state of Negeri Sembilan, it is crucial to note and understand the key issues and challenges faced that inhibits the proliferation of ICT within the state. In addressing these gaps, then only can the state begin to fully form an actionable strategic and coherent direction to achieve its ICT aspirations. With that, this portion of the report emphasizes on the key gaps identified for the ICT environment of the state of Negeri Sembilan based on 4 key areas; infrastructure, accessibility, maturity/awareness and Resources/ICT skill sets which then cuts across the 3 main pillars of the MSC Malaysia 2.0 Framework of ICT-Industry, ICTEnabler and ICT-Society. The model below illustrates how IDC approached the gap analysis for this study.

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FIGURE 14
Framework Approach in Formulating Gap Analysis

Source: IDC, 2010

Utilizing this framework, a gap assessment was conducted on the IT implementation and strategies of the state based on workshops, interviews and survey data. This would ascertain the key issues and challenges currently faced. It would also determine; if steps had already been taken to mitigate those challenges and the identification of new issues and challenges which could be inhibiting the growth of ICT within the state. IDC then culminated these key issues and challenges and segmented them into a table, of which a gap analysis was then drawn based on severity of the impact to proliferation of ICT. The following process flow was then adopted to identify the current issues/challenges, evidence of the challenge (supporting data), gap identification and solution plugging. The figure below illustrates this flow:

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FIGURE 15
Process Flow in Identifying Gaps

Source: IDC, 2010

With the above flow in mind, a gap assessment was conducted on 2 levels; the first level being the gap between the current ICT strategies outlined in the state ICT blueprint against its stipulated goal/target; the second gap assessment was conducted based on observations and findings of the current ICT environment across the public sector, industry, society and governance component of the state.

Gap Analysis Findings of State ICT Blueprint against Targets


As highlighted in the Situational Analysis Report, the state of Negeri Sembilan currently does not have a current and active overarching focus on a statewide ICT blueprint that governs how ICT is to function as a strategic pillar propelling advancement to the state. The bulk of the initiatives which were identified in the Situational Analysis Report rolls up to either the aspirations of the Menteri Besar or plans which are not finalized. In identifying a base for a blueprint, IDC was referred by UPEN to reference 4 separate reports: Pelan Ekonomi Negeri 2009/2010 Negeri Sembilan State Structure Plan 2002-2020

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Final Draft Plan Strategik Ekonomi Negeri Sembilan MAMPU ICT Strategic Plan With the derived underlying vision and objective of ICT, IDC's overall assessment of the state is that the current level of clarity is representative of the permeation and unified drive of the state to develop ICT. There are definitely strong points such as infrastructure provisioning and there are also points of improvement such as the lack of content driving the demand for infrastructure. Essentially, IDC sees the goal of the state as readying itself to embrace and leverage the emergence of knowledge based society and sees the proliferation of broadband as a key mode of preparation. IDC notes that the absence of a designated champion to own and drive the implementation of the set goals and objectives as key inhibitor for the attainment of not only goals but accountability as well. IDC's assessment on the current ICT based policies for the state can be found in the table below. For the purpose of this assessment, IDC utilized the following percentage points as a key indicator to measure the gap between the target/goal and current activities having been conducted. 0 25% 26 50% 51 75% 76 100% - Little to no evidence of activity/indicator of activity. - Some evidence of activity/indicators of activity. - High evidence of activity/indicators of activity. - Evidence of all activity/indicators of activity completed.

TABLE 18
Assessment of ICT Blueprint achievements
Policy Summary Description The goal of this strategic policy is to ensure that overall ICT penetration increases through the introduction and execution of awareness programs The state government sees building demand through awareness as a strategy to drive overall ICT penetration with the promotion of activities and programs related to lifelong education and growth as a key Assessment Of all the completed and running Community Broadband Centers in Negeri Sembilan all 4 are located in Jempol Jempol has also attracted the establishment of 5 Medan Infodesa infrastructure setups and 4 Universal Service Provider initiatives "Gerak Gempur ICT" across schools are active Achievement 26 50%

Increase overall ICT penetration especially in the eastern region.

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TABLE 18
Assessment of ICT Blueprint achievements
Policy Summary Description Assessment with scheduled activities There are 6 planned CBC in Tampin, 3 established Program Medan Infodesa and 2 universal Service Provider Tampin also has access to the 1NS Wireless City service New Initiatives such as Digital Jempol are already underway To increase the overall ICT competency level in Negeri Sembilan with the setting up of infrastructure such as smart schools in rural areas. The goal of this strategic policy is for the state government to work hand in hand with the Ministry of Education, alongside the Ministry of Rural and Regional Development as well as the private sector to supply PCs to schools in rural areas as well as to increase the number of Smart Schools. This overarching plan will also see the growth in overall ICT penetration The focus is for the state government to pave the way for telecommunication providers to build the necessary telecommunication infrastructure in support of the proliferation of ICT especially internet through high speed broadband Ratio of 1 Personal Computer to 20 primary school students is an average of the state Ratio of 1 Personal Computer to 27 secondary school students is an average of the state There are 6 Smart Schools of which only 2 are located in Seremban 26 50% Achievement

Encourage the development of telecommunication access and reasonable internet access in rural areas

Cellular penetration rate of over 92% as of 2008 (latest figures are above 100%) 89 e-community/telecenter initiatives across the state Partnership with TM for the 1NS Wireless City, SKMM, KPKK, KKLW, and KPKK for ecommunity centers Partnership with TM for Hotspot coverage of over 100 zones Wireless Broadband

26 50%

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TABLE 18
Assessment of ICT Blueprint achievements
Policy Summary Description Assessment coverage by cellular providers outside Key areas like Seremban, and Port Dickson is fairly limited
Source: IDC, 2010

Achievement

The above mentioned policies are derived from the Final Draft Plan Strategik Ekonomi Negeri, Negeri Sembilan as it was highlighted as the key document propelling the state level planning moving forward. IDC also notes that proposed drafts of strategic blueprints also aligned to the above key policies. Based on the assessments above, IDC has summarized the following points in discussing the gap between the state's ICT objectives and current activities; Broadband as a key strategy The overarching agenda for the state is centered on the development of both human capital and the underlying infrastructure. It aims to be ready to leverage and participate in a digital age driven by a knowledge economy. However the state government is using broadband as an encompassing strategy to drive all initiatives that follow. Ownership on follow up It is understood that the state of Negeri Sembilan has no single overarching mechanism for the monitoring of ICT based initiatives within the state holistically. While UPTM is the key stakeholder for ICT in SUKNS, it is apparent that the initiatives to the state at large are not under its jurisdiction and as such initiatives which are conducted are not visible. Encompassing champion At this point there is no clear stake holder taking up ownership being the lead ICT champion for the state. Pockets of external players like Rangkaian Minang are involved but at the end the current structure places UPTM as the closest to champion. That said the poor delineation of current roles and empowerment has led to the gap in terms of a championing the agenda. Poor ICT ecosystem IDC notes that there is no vibrancy in the local ICT ecosystem. Moving from the upstream to the downstream it is noted that the activities are far in between. There are only 7 MSC status companies with at least 3 registered as IHL. The poor ecosystem is representative of a lack of demand. The flight of E-Government initiatives Poor utilization from society is seen as the main culprit leading up to the current status of e-government initiatives. The e-government focus is exemplified by its translation of the local municipals where services like e-bayar are made available. That said the actual e-government evolution is not clear. There is still a strong focus on traditional form transfers as

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opposed to an interactive service and the integration on the back end is still manual. Supply-Demand eco-system not in existence With demand for ICT based services in the state being low, this has created a crucial issue with ICT based vendors and man-power in the state. As long as the creation of a vibrant ecosystem between demand and supply is non-existent, Negeri Sembilan will still be in a deadlock with no purpose. There is a crucial need for the state government to concentrate on a niche or specialization for the state to embark upon, utilizing ICT as the backbone in supplying of services via both DDI and FDI initiatives. Investment in ICT Skills Required The state government should look into more ways to enhance and heighten ICT skill sets amongst ICT graduates to obtain specialization or professional certification within stipulated areas. The state's strategic ICT goal is to produce an ICT based workforce, competent in the digital era; however, with the lack of investment and support from the government in enhancing these skill sets from a business perspective, the digital divide will still remain. ICT investments should be well balanced There is a need for the state government to look keenly into balancing out their investments across infrastructure, technology, programs and human capital development to ensure concurrent growth across the state. Current indicators indicate a strong push for the development of broadband but unless there is a diverse accountability on programs the pipes will exists with no real content. Strengthen Governance Structure There is a need for the state government to formulate, if not, strengthen its current governance structure in empowering and performing specific tasks and processes to achieve its ICT development goals. Re-alignment of policies, adequate guidance, processes and key decisions would have to be made, and a single-point of contact be nominated to fulfill these goals. At this juncture, Negeri Sembilan has a fragmented governance structure, with silo ICT based activities occurring.

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Gap Analysis on ICT Environment in Negeri Sembilan


In assessing the gap of the current ICT environment in Negeri Sembilan across 4 critical variables, it is first crucial for us to assess the current situation of the key components; public sector, industry and society, Governance; which make up the bulk of the demand side of ICT within their surroundings. With this said, the following represents an assessment of each of these critical components.

Assessment of Public Sector


Overview

The Public Sector can play a pivotal role in developing the ICT landscape of a state. Its core function as administrator of the sate enables it to be in a position to set strategic goals, which can have either a positive or a negative impact towards the development of ICT. There are existing case studies on how nations are propelled for growth with ICT set as an enabler. For this section on the assessment of the public sector, the key source of information was derived from the following sources: Negeri Sembilan State Government Workshop Reference documents from UPEN
Current Scenario

Holistically, the state of Negeri Sembilan has performed well in getting its state agencies and departments "e-enabled" by advocating the utilization of ICT within the departments, and by improving the overall infrastructure as seen with 1NS*Net. That said with reference to the development of the Public Sector, IDC notes that the maturity and services offered are far from reaching a level of desired maturity. Most eservice offering are still form driven with back end processes still in manual form. IDC notes the there is still room for growth. From angle of adoption and growth, IDC notes that even with the public sector blueprint developed by MAMPU in 2003 the core initiatives were not taken in full but in ala-carte form. That said propagation of ICT from a holistic level throughout the public sector has its own set of limitations, as the core focus to drive is limited to UPTM. IDC summarizes the current ICT scenario to the following pertinent points: The government plays a pivotal role to build the industry. That however is shortlived as the actual supporting roles cannot be articulated from an ICT angle. While the state government has made a number of strategic investments on ICT it is noted that the workshop participants are not aware of its existence, pointing to the fact that initiatives are still executed in silos with little attention on awareness building.

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It is also noted that the impact of the previous public sector strategic ICT plan was not noted as something which was obvious and could be quantified. IDC sees this as indication of the lack of follow through and education. The workshop drew obvious blanks when presented with the idea that there is an existing Public Sector blueprint. Poor career development of ICT personnel within the public sector does not motivate the workforce to taking an interest in ICT as a career path. The resulting gap limits the growth in ICT expertise. The need for a champion, ownership and management support as well as buy-in to drive ICT permeation to the general public is poorly promoted. Issues such as lack of ICT literacy and computer knowledge appear to be a large problem for many state government agencies in proliferating ICT usage within the agencies. Poor promotion by the agencies effects in poor demand of e-services thus enforcing in the mind of the workforce the futility of taking the ICT education seriously. Lack of planned training and development program among the public service personnel limit the ability to achieve the desired knowledge maturity. Varying level of ICT awareness among workforce creates an uneven demand on ICT requirements and their supporting infrastructures thus creating an uneven disperse of resources across the state. Budgetary constraints limit the ability to plan and develop for long term strategic growth. Higher internet access speed was also deemed as lacking in the current scenario as of the workshop. IDC notes that the upgrading to1NS*Net to probably have a positive bearing to this. That said, while the consolidation proves that the government is willing to invest, it has yet to translate to better service provisioning to the state. Inefficient budgeting cycle limits organization from strategically planning the ICT needs of the state as a whole
Assessment

In essence, IDC has summarized two main components which have proven to be key issues affecting the government agencies at this juncture;

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FIGURE 16
Issues Affecting Public Sector Agencies in Negeri Sembilan

Source: IDC, 2010

As witnessed above, IDC has summarized two key issues, which are at the forefront challenging the full proliferation and implementation of ICT within state agencies these are two incidences, which are closely interlinked with one another in terms of resistance and causes agencies to stagnate in their ICT development. The two issues are that of processes and people within the agencies, being highly resistant to change and unwilling to embrace ICT. IDC views these laggards as the key stumbling blocks for any society to move forward as an advanced information society, with the government having to play a key component in increasing ICT literacy within the confines of the agencies first, prior to advocating this to the society at large. In more granular assessment, IDC attempted to uncover the root of resistance in utilizing ICT, and to also understand from these individuals on how ICT may aid the government in functioning better. The figure below summarizes some of IDC's findings as to how ICT is currently being viewed within the confines of the government sector, and the challenges faced by these agencies in utilizing ICT;

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FIGURE 17
Main Challenges Faced in Utilization of ICT

Source: IDC, 2010

Key Challenges Based on strategic workshops with the state government of Negeri Sembilan, IDC was able to summarize the key areas of challenge with regards to ICT utilization. Mindset/Awareness/Readiness This first grouping had the highest hits in terms of relevance to workshop participants. General tie-ins and association include change management, competency level, talent pool, and perception. IDC notes that the culture of "fear of change" and "lack of knowledge" creates a negative stigma limiting the ability for ICT to permeate. This has also resulted in a downward spiral effect impacting the growth of talent pool due to the lack of demand. Next in line was the inherent limitation of hardware, infrastructure and systems. IDC notes that the limitation is due to an uneven disperse of resources across the state. It is also due to the fact that strategic plans are not in place to coherently drive the growth of the backing infrastructure. That said, IDC notes that the level of awareness and mindset also results in the uneven demand on ICT requirements and supporting infrastructure. Budget is claimed to be a key issue by 18% of the workshop respondents. IDC notes that from the public sector angle, budget will always be an issue and planning around it and sourcing for funding models to be essential. IDC notes that the budgeting cycle does limit the ability for organizations to plan strategically. The support of senior management was a heated debate during the workshop as participants tend to view the support of senior management to be crucial for the overall growth of ICT. The tie-in to this is also on the mention of mindset/awareness/readiness, which leads to a dead end if the senior management falls under the category of not seeing ICT as a strategic tool.

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FIGURE 18
Summary of Gaps for Public Sector

Source: IDC, 2010

In summarizing the key points on the public sector, it is apparent that the gaps presented are those which are typical of any society attempting to modernize via ICT, and transform into an advanced information society. The crucial element to note is the need for a strong and stalwart champion to drive through the critical message, objective, vision and goal of ICT amongst the agencies, in order for them to become advocates of the cause for the state. Simply put, these agencies would have to "practice what they preach" prior to expecting the rest of the state; industry and society; to plough forward utilizing ICT as a key tool in their business or daily lives. Although these gaps are seen as typical "teething" problems faced by an evolving society, the potential pitfall at this juncture for the state is the lack of focus in transforming itself and implementing concrete change management policies to address issues that relate to mindset/awareness/readiness. This number 1 issue leads to the propagation of other issues along the line which will be detrimental both short and long term. Buy-in should be achieved via top-down approach, with all user requirements and feedback being provided and accepted in order to further advocate ICT as a key tool within these agencies. The figure below exemplifies IDC's understanding on the chain-reaction of events that have led to the gap currently being uncovered within the public sector;

TABLE 19
Root Cause Analysis Base Event No clear direction on the advancement of ICT for the state

Public Sector
Chain Reaction Users are not full y convinced on the importance to delve into ICT practice Gap Mindset/Awareness/Readiness ICT Seen as a complimentary role,

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TABLE 19
Root Cause Analysis Base Event

Public Sector
Chain Reaction Gap rather than one to optimize performance Senior Management Support

ICT is sidelined

Not a top priority when it comes to planning and budgeting leaving

Infrastructure/System Limitation Budget constraints

No clear structure to increase digital literacy


Source: IDC, 2010

Users are left with basic 101 type training with no avenue for advancement

Lack of skill sets

A summary of these gaps are addressed in the Gap Analysis portion below.

Assessment of Industry
Overview

As stated in the situational analysis, the development of Negeri Sembilan exemplifies the focus and ability of the state to adapt to a changing economic and development landscape. From the 90's the state has evolved from being a predominantly agriculture based economy and into a manufacturing driven economy. As of 2010, the focus is to move towards a services led economy. For this section on the assessment of the industry, the key source of information was derived from the following sources: Negeri Sembilan State Government Workshop Reference documents from UPEN Industry Survey
Current Situation

As of this special report, the state of Negeri Sembilan has its economy focused on 3 key sectors listed and explained below: Manufacturing With regards to a key mantra moving forward, the state is focused on progressing up the manufacturing value chain. In terms of initiatives, the state is bent on identifying and growing growth clusters by regions. On the west side the focus is on E&E, Machinery and chemicals where else on the east side the focus is on food manufacturing and agriculture. Another key area is the development of downstream activities in Kuala Pilah, Jempol and Jelebu focused on food products. With regards to propelling the state into the future there is a strong focus on growing high potential

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industries such as biotechnology (set up of a bio-nexus) and to ensure current sustainable growth the development of new industrial zones like Sendayan TechValley. IDCs industry survey focusing on the manufacturing sector point to the following: The average annual approximately RM 69K ICT spend for the manufacturing sector is

That said, IDC notes that this is skewed with a huge disparity between large MNCs with mature ICT environments and SMBs which are not necessarily on track with ICT 43% - 45% use graphic design software or architecture programming in the manufacturing industry as compared to at least 73% who use it for basic Microsoft Applications. 70% are benefitting from the promotion of owning a website. 75% of those in the manufacturing industry state that ICT is a way to increase efficiency in delivery of products/service. However only 58% is planning to utilize ICT as a means to improve internal processes.

Services The services sector is earmarked to take lead as the key GDP contributor of the state. While the subsector ranges from tourism, communications, public services and others, key to the current strong growth is the tourism subsector. The tourism subsector is poised to drive the services sector being the single largest GDP contributor. A key goal for the state is to ensure tourism growth is seen across all districts of Negeri Sembilan as opposed to having growth driven in only existing current areas of growth. At current tourism is drawn from activities in Port Dickson but IDC notes that bigger listing of key activities are available. IDCs industry survey focusing on the Services industry states the following: The average annual ICT spend for the services sector is roughly RM 7K with Tourism cut out of approximately RM 12K While a slight majority of 53% of the surveyed organizations has their own website, only 10% of the organizations are utilizing graphic design software, which could be used to enhance graphics on their respective websites. 60% of respondents state that ICT increases efficiency in delivering their products and services Similarly 58% state that it is planning to utilize ICT as a means to improve internal processes

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The Tourism sector has the highest percentage of PC penetration. It is also interesting to note that high PC penetration rates could be due to having the longest replacement cycle.

Agriculture As detailed earlier, Negeri Sembilan has gone through different development phases with the GDP contribution of the agriculture sector showing a decline as opposed to the early 90's as the state shifts its overall focus. That said, there continues to be strong initiatives to support the overall growth of the sector as its growth continues to be pivotal as part of an overall plan to propel the state to developed status by 2020. For the agriculture sector, the mantra is to fortify and grow the sector with unique GoTo-Market products to differentiate and to grow Negeri Sembilan as an Agriculture player. Some of the key initiatives include clustering on government land for the Permanent Food Production Areas (TKPM) and Ladang Rakyat, cultivation of ornamental fish, the introduction of the Beef Valley in Gemas and the development of the Pedas Halal development park. With that in mind key findings from IDCs industry survey point to the following trends across the industry: The average annual ICT spend for the agriculture sector is roughly RM 7K Over 28% of the companies interviewed across key industries do not have PCs with the agriculture sector topping the list. This trending of importance of PC is reflected in a rating scale where the agriculture sector sees less importance of it. Internet access is available across all the sectors, but as mentioned in the situational analysis the sector which sees the least importance of IT demands states the need for higher speed. IDC notes that this may be due to the poor perception and awareness. Web-sites are an important indicator of moving up the technology value chain. The same stats apply with the agriculture sector having the least amount of websites. IDC notes that the agriculture sector is greatly influenced by the small scaled farmers and plantation owners and this is very likely a representation of the cottage industries unable to move up the chain due to poor exposure and awareness. In terms of digital literacy there, the focus is concentrated on core basic functions like e-mail and surfing the net.
Assessment

IDC notes that there is evidence of ICT penetration across the industries but the same clich of the digital divide is apparent and continues to build. IDC notes that the agriculture sector is currently underserved as the level of adoption; let alone maturity is at the lowest point. IDC sees the gap as perhaps an indicator of the SMB type industries ICT needs are not being addressed as it rolls up to the agriculture sector.

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On the other hand, the tourism sector which is earmarked as the key growth contributor is at a strong position to leap frog. However, the fact that PC replacement cycles are longest in this industry may signal poor level of performance as a potential issue. IDC also notes that there is no vibrancy in the local ICT ecosystem as there is a lacking in terms of players across both the upstream and the downstream. With that, the proliferation of ICT is limited with no champion or driver. Based on interactions with the industry, IDC's survey findings, and discussions with pertinent members of the industry, IDC has summarized the readiness of each sector of the industry as outlined below: The readiness factor of each sector was considered based on the following criterions; Average Yearly ICT Expenditure Higher expenditure annually on ICT services, equates to higher ICT maturity. Web Presence ICT maturity is constantly being measured up against web/internet presence. A cohesive and solid web presence represents the organization's ability to utilize ICT as a means to communicate market and advertise themselves to further grow their customer base beyond local buyers. ICT as a Key Enabler Recognizing ICT as a key enabler to propel their organization and their sector into the future was crucial in witnessing the understanding of these verticals of the benefits of ICT. Utilization of ICT This was then encapsulated with overall understanding on how ICT was utilized within each key economic sector.

FIGURE 19
ICT Readiness by Sector
Sector Agriculture Manufacturing Tourism Services Education IT
Source: IDC, 2010

Average ICT Expenditure (Yearly) RM 5,000 - RM 9,999 RM 100,000 - RM 499,999 RM 10,000 - RM 24,999 RM 5,000 - RM 9,999 RM 100,000 - RM 499,999 RM 5,000 - RM 9,999

Website 58.3% 70.8% 67.9% 52.9% 90.0% 85.0%

Key Enabler 74.2% 74.0% 90.0% 68.0% 81.8% 80.0%

Readiness

In summary, IDC notes the following as key areas of challenges which needs to be addressed Key challenges

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Uneven growth within sectors widens the gap between leaders and chasers. In the manufacturing sector for example the leaders heavily spend on ICT investment as opposed to mid-sized companies. Inadequate broadband coverage areas in the state, with most focus given to key areas limiting growth in districts. Low levels of ICT awareness and maturity leading to poor digital literacy ICT not being seen as a strategic enabler for the business Non vibrant ICT ecosystem leading to stagnancy in the ICT ecosystem and eventual proliferation Poor emphasis on ICT training across the industry Technology advancement which changes too quickly makes it costly to keep up No compelling reason to utilize ICT as there is no customer demand for it Competitive and sector landscape does not drive the need for change

FIGURE 20
Summary of Gaps for Industry

Source: IDC, 2010

Clearly the absence of a vibrant ICT industry within the state of Negeri Sembilan has a negative spill-off effect unto other sectors, where adequate skill sets and motivation to utilize ICT is limited. The need for the state to ear-mark a niche or specialization to propel ICT as an industry forward is pivotal, before an adequate support structure can be designed to aid the other key economic sectors. Conversely, building in tandem is also an option, where the ICT industry will then be driven by a need emerging from the requirements of these sectors. However, this approach will require adequate commitment and investment from organization's within these key sectors, to aid in creating the support structure required to be sustainable.

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The figure below exemplifies IDC's understanding on the chain-reaction of events that have led to the gap currently being uncovered within the industry;

TABLE 20
Root Cause Analysis Base Event No champion to advocate the creation and growth of an ICT based ecosystem

Industry
Chain Reaction Key development in other sectors but ICT, Organizations generally do not see the compelling need to position ICT as a focal point supporting growth Great disparity between mature organizations and those with little adoption creating a vacuum on ICT demand Fragmented training programs leading to a mix of skill sets but lacking the masses to congregate to create pivotal changes Gap Lack of vibrant ICT industry

Current awareness level diminishes possibility of permeation of ICT into key industry sectors

Sporadic utilization of ICT across key industries

Lack of direction in earmarking a particular field or following through on a chosen field in ICT

Lack niche or specialization for ICT industry Underdeveloped talent pool or nonexistent Sporadic broadband coverage

Strong focus on the west bank (port Dickson) and central zone (Seremban, Nilai)
Source: IDC, 2010

Continues focus to fortify key zones with disparity in other developing zones

Assessment of Society
Overview

As at 2008, Negeri Sembilan was home to 3.59% of the nation's population of 27.73 million. It was the 9th most densely populated state with 149 individuals per kilometer square. The spread in terms of population sees Seremban take up a major chunk being home to 47% of the state population followed by Jempol at 15% and Port Dickson at 13%. The rest of the districts individually house less than 10% of the state population of Negeri Sembilan. The key source of information for society was derived from the following sources: Negeri Sembilan State Government Workshop State-Wide Community survey Reference documents UPEN IDC sees the society as the building block for the success or failure of ICT initiatives. It is through the society that there is demand for an ICT industry, and it is though society that human capital is built to fuel the ICT industry. It is therefore to no surprise to see the core objective of the sate with regards to ICT is in the readying of both the infrastructure and human capital to ensure its successful implementation.

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Current Scenario

As highlighted in the situational analysis report, a snapshot of some of the activities run by the state and other related stakeholders point towards the existence of programs to drive ICT adoption in the society. While the evidence is far and few in between, there are efforts being taken. In terms of overall societal ICT development, IDC notes that there isn't a single entity, which has taken full ownership to support the development of an information based society. With that, the idea of lifelong learning which is continuous and in developmental stages is not realized. IDC's key observations as detailed out through a state wide survey across the 7 districts point to the following stats. 31.2% of the state wide population does not have access to a personally owned computer. In the situational analysis document, it is noted that the broadband penetration rate for Negeri Sembilan is currently looking good at 32%. IDC also notes the efforts taken by the state government to improve accessibility. One noted program is the 1 NS Wireless City initiatives. That said, even with such programs only 11.9% of those who do not have access to the internet actually go all out to find access. The table below is a snapshot of the number of users for the 1 NS Wireless City initiative.

FIGURE 21
1 NS Wireless City Users by key area
Location User

Tampin

45

Nilai

63

PD Bt 4

79

PD Bt 8

479

Rantau

97

Senawang

613

Seremban

691

Tampin
Source: TM, 2010

45

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With regards to usage of PC it is noted that of all the key activities, the top 3 usage of PCs is seen in Internet surfing, usage of Microsoft Office Word and media functions like music and video. IDC sees this as a hint with regards to the type of user maturity Negeri Sembilan currently has. It is also noted that more advance features like Programming, AutoCAD and graphic software to only be strongly adopted in more mature districts like Seremban and Port Dickson Moving away from isolated usage and into the net, it is noted that the vast majority use the internet for chatting and sending e-mail. The adoption of services such as online banking and government e-services is rather minimal across the different districts. On the subject of e-banking it is interesting to note that access rises moving away from the city center. Perhaps indicating the awareness of the advantages of ICT as enabler to the society On the same note, while the government has set up e-community centers across the state and continues to put investment into it, the take-up as opposed to other modes of access is relatively low at 6.6%. Jelebu was ranked the lowest with Seremban at the top. IDC notes that internet caf's far outbid alternative methods of own access Given frequency of access it is noted that a good 32.6% actually access the internet only once a week. This indicates the level of dependence to the net, which at this point signals a high level of non dependency. On the same note, IDC notes that a key issue with regards to the absence of internet access is the fact that the society still sees it as very expensive; there is also a good percentage which sees no use of it. Looking at it from a holistic point of view, it is interesting to note there is a good 11.2% and another 15.3% who think negatively of ICT and will be able to survive if it did not exist.
Assessment

With regards to the above, IDCs assessment on the society is seen from a holistic level. IDC notes that the Government is putting a strong emphasis on the readiness of human capital as part of its grand vision to develop ICT initiatives and in turn has executed key programs. That said, it is still obvious that there is a gap. IDCs view with regards to the gap is as follows. On the topic of internet access, the adoption is still low and is probably an indication of the perceived value. IDC notes that while the cost of internet is perceived high by the respondents, so is everything else these days? IDC notes the level of digital e-literacy as an indicator of perhaps the reasoning behind the comment on high cost. Cross examining the responses point to the usage of ICT at a very core and rudimentary level. With that, it is not surprising that the perception of value is ranked low, hence the claimed high cost. Another point to add is even with all the efforts to provide free internet access a key issue which has been identified is that there is a "pipe" but there is no content.

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Looking at how there is a good 15% not seeing any good in ICT; IDC sees the biggest gap in the ability to educate the society for growth. Key Challenges With the key challenge of not having a champion to drive societal ICT development, the information based society gap widens. While there are some bright spots to the overall scene, IDC has summarized the key challenges faced in wide-spread society adoption; Poor knowledge or know-how to utilize ICT No method of incremental knowledge advancement Unable to relate to the benefit of utilizing ICT Lack of supply to create demand (content) There is a general consensus and feel that the cost of subscribing to broadband is too high No pull factor to focus on ICT as a career ICT is not a pivotal factor which drives advancement of the state

FIGURE 22
Summary of Gaps for Society

Source: IDC, 2010

The gaps identified within the society are those which are commonly identified within states or regions of poorer socio-economic status, and who are un-convinced of the benefits of ICT. These societies would usually require a stalwart support structure to carry them through towards realization of these benefits. The government approach

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towards the society would need to be wise, in demarcating, identifying and advancing society within a realistic targeted timeframe. With poverty being a large issue for the state government to tackle, the rise of ICT within society will be slow, however, not impossible to achieve. With that said, the figure below exemplifies IDC's understanding on the chain-reaction of events that have led to the gap currently being uncovered within the society.

TABLE 21
Root Cause Analysis Base Event The translation of benefit in using ICT is not apparent

Society
Chain Reaction The lack of "proof" sidelines the importance of ICT to a level of less importance The lack of a structured approach continues to widen the disparity in terms of ICT usage Gap Lack of awareness on utilizing ICT

There is no base level record to understand if ICT permeation on a basic level has occurred in the state. As such the efforts for education are continuous Strong focus on 101 type courses with no overarching growth theme

Lack of basic ICT skill sets

The demand to go beyond is there but, the existing system does not accommodate

Programs lack continuity

Source: IDC, 2010

Assessment of Governance Structure


Overview

IDC sees the governance structure as refereeing to the regulating framework that consists of people and processes working in synergy to achieve set objectives. For this document, it refers to the rules and regulations under which an IT department and related entities function and operates. It is a mechanism placed to ensure compliance with these rules and regulations.

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Current Scenario

FIGURE 23
Structure of Stakeholders in State ICT Development

Source: UPTM, 2010

The highest governing ICT Committee in Negeri Sembilan is the Negeri Sembilan Information and Communication Technology Council. This council is chaired by the YB Menteri Besar of Negeri Sembilan and with UPEN as secretariat. This committee focuses on the overall governance and planning of ICT of the state aligned to the nation at large. As the key area of focus is aligned to the state at large and its integration to the nation key areas of jurisdiction are listed below To provide state level frameworks inclusive of an execution mechanism aligned to the nation To consolidate proposals and directions and to formulate a strategic execution plan for the state To evaluate the overall effectiveness of set and run programs for the key sectors including public, private and others Key liaison between state and federal level Technology councils

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The makeup of the existing council is listed below: TIMBALAN KETUA PENGARAH (ICT) - Unit Pemodenan Tadbiran Perancangan Pengurusan Malaysia (MAMPU) PENGARAH - Seksyen Teknologi Maklumat dan Komunikasi, Unit Perancang Ekonomi Jabatan Perdana Menteri PENGERUSI - J/K Bertindak Infrastruktur, Tenaga Air dan Telekomunikasi NSDK. PENGERUSI - J/K Bertindak Kesihatan, Sains, Teknologi & Inovasi, NSDK. Y.B. SETIAUSAHA KERAJAAN, NSDK Y.B. PEGAWAI KEWANGAN -Pejabat Kewangan Negeri, NSDK TIMBALAN SETIAUSAHA KERAJAAN (PEMBANGUNAN) - Unit Perancang Ekonomi Negeri, NSDK TIMBALAN SETIAUSAHA KERAJAAN (PENGURUSAN) -Pejabat Setiausaha Kerajaan NSDK PENGARAH - Pejabat Tanah dan Galian, NSDK PENGARAH - Pejabat Pembangunan Negeri, NSDK PENGARAH - Jabatan Perancangan Bandar dan Desa, NSDK PENGARAH - Unit Perumahan Dan Kerajaan Tempatan, NSDK PENGARAH - Jabatan Pendidikan Negeri, NSDK PENGARAH - Jabatan Kesihatan Negeri, NSDK PENGARAH - Yayasan Negeri Sembilan, NSDK SETIAUSAHA BAHAGIAN Bahagian Teknologi Maklumat, Kementerian Tenaga, Air dan Komunikasi SETIAUSAHA BAHAGIAN Bahagian Teknologi Maklumat, Kementerian Sumber Asli dan Alam Sekitar SETIAUSAHA BAHAGIAN Bahagian Teknologi Maklumat dan Infodesa Kementerian Kemajuan Luar Bandar dan Wilayah PENGARAH Jabatan Kerja Raya, NSDK

Next in line in the chain of command is the state ICT Steering Committee led by the State Secretary of Negeri Sembilan with the head of UPTM as its secretariat. The scope of the Steering Committee ensures that there is state level execution and governance based on the overarching themes set by the State ICT committee.

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As the key area of focus is aligned to the state at large jurisdiction are listed below To determine the public sector directive as part of an ICT strategy To address the human capital needs to achieve set goals To plan and moderate all ICT strategies in line with the state level goals To encourage smart partnerships in the realm of ICT To establish ICT security framework To guide the development of ICT strategic programs To approve and grant key procurements To moderate and synergize agency level ICT plans

The makeup of the existing council is listed below: Setiausaha Kerajaan Negeri Sembilan Pegawai Kewangan Negeri Timbalan Setiausaha Kerajaan(Pembangunan) Timbalan Setiausaha Kerajaan (Pengurusan) Ketua Penolong Pengarah - Unit Pemodenan Tadbiran dan Perancangan Pengurusan Malaysia (MAMPU) Pengarah Jabatan Pengairan dan Saliran Jabatan Perancang Bandar Dan Desa Pengarah Jabatan Audit Negara Cawangan Negeri Sembilan Pengarah Infrastruktur Suruhanjaya Komunikasi dan Multimedia Malaysia Naib Presiden Rangkaian Minang Negeri Sembilan Pegawai Teknologi Maklumat (Kanan) - Pejabat Tanah Dan Galian Penolong Pengarah Korporat - Jabatan Kerja Raya Pegawai Teknologi Maklumat - Pejabat Pembangunan Negeri Ketua Penolong Setiausaha - Unit Kerajaan Tempatan Pejabat Setiausaha Kerajaan Ketua Penolong Setiausaha - Unit Korporat Pejabat Setiausaha Kerajaan Negeri Sembilan

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Penolong Setiausaha - Bahagian Sumber Manusia Pejabat Setiausaha Kerajaan Penolong Setiausaha - Unit Perumahan Pejabat Setiausaha Kerajaan

In terms of ground level execution, Unit Pengurusan Teknologi Maklumat (UPTM) is assigned to execute the state level implementations detailed out by the ICT Steering Committee. Although the mandate at large is to monitor the state as a whole, the actual follow through and scope is currently limited to supporting government agencies under the jurisdiction of SUKNS. This inherent limitation inhibits the holistic growth of ICT as an enabler to empower broader growth beyond the government.
Assessment

With reference to Negeri Sembilan, there is synergy as the chain of command is being led by the Menteri Besar himself down to the state secretary and eventually to the different stake holders. The core strength behind this is the strong level of support to ensure that ICT is taken seriously and is part and parcel of the grand vision of the state. IDCs take on the current scenario highlights the following issues as the key areas of concern. Ground level execution limited to SUKNS With reference to Figure 1, Unit Pengurusan Teknologi Maklumat (UPTM) is the key ground level driver executing ICT related programs. Therefore, its primary role is under the purview of the SUKNS. IDC has reference to community level initiatives which saw participation but overall the jurisdiction is limited to that scope. Public Access to Mechanism - As highlighted in the situational analysis, the permeation of ICT into society is pivotal. Depending on private sector initiatives alone will skew the societal growth based on vendor programs. Currently, the public has no clear access to the state mechanism as there is no key point of contact. Absence of a Champion Based on IDC research, there is no champion to drive all ICT related programs for the state. This inherent problem will lead to a disconnect with the objectives of propagating the idea behind MSC 2.0. The current mechanism only empowers UPTM to support the drive for the public sector Permeation of ICT into the industry In referencing the current state mechanism, the permeation of ICT into the industry will not be possible or concrete as the model only allows for industries to be reactive as opposed to being proactive. In addition, the presence of the different industry segments only allow for dialogues with no clear ICT vision in mind Limited growth programs The current mechanism structure does not permit nor enable mass growth and adoption of ICT as there are no clear guidelines as well runner to achieve.

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Senior Management Support Because of the lack of visibility and follow through for ICT, obtaining Management buy in on plans continues to be an issue that needs to be addressed

FIGURE 24
Summary of Gaps for Governance Structure

Source: IDC, 2010

The figure below then exemplifies IDC's understanding on the chain-reaction of events that have led to the gap currently being uncovered for the state's ICT governance;

TABLE 22
Root Cause Analysis Base Event The recommendations for UPTM to have increased autonomy and focus beyond UPTM as part of the ICT strategic plan was not concluded in full There is no clear strategic guide to govern the advancement of ICT in Negeri Sembilan
Source: IDC, 2010

Governance
Chain Reaction Status quo in terms of focus leading to stronger growth within SUKNS Gap No Clear ICT Champion for the state UPTM focus on SUKNS

Development focus are in silos having a less widespread reach

Lack of cohesive interaction and/or decision making on ICT for the state

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Gap Analysis on ICT Environment


Based on all the information collected, the following model was envisioned and utilized to assess the gaps within each critical component against the 4 variables; infrastructure, accessibility, maturity/awareness, and resource/ICT skill sets.

FIGURE 25
Addressing Gap Analysis for ICT Environment Approach

Source: IDC, 2010

Summary of Gap Analysis


The table below summarizes the key issues and challenges faced within the ICT environment in Negeri Sembilan, the impact of this challenge towards the proliferation of ICT and the gap level of each key issue based on the pillars demarcated by the MSC Malaysia 2.0 framework.

TABLE 23
Overall ICT Environment Gap Analysis
Category Key Findings Impact Gap Analysis Preliminary Recommendation Taking into account existing plans of rollout, emphasis should be given in

ICT Industry (infrastructure)

Access to broadband generally focused on more high density populated areas.

Imbalanced development creating a lack of overall ICT awareness, stifling the

Moderate to high

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TABLE 23
Overall ICT Environment Gap Analysis
Category Key Findings Impact Gap Analysis Preliminary Recommendation connecting all major townships. Access in rural areas can be a co-op on planned ecommunity centers with targeted programs for growth.

permeation of ICT and thus limiting the growth of an economy supported by ICT. Key development of ICT companies will be on existing populated areas. This will stifle the growth overall as the vision so to grow each niche district. ICT Industry (infrastructure) Quality of Service (Speed of Internet) Key services offered online or via the web will be heavily affected and confined to only basic e-Services. Not increasing the average speed will limit creativity as the industry remains status quo with no real growth drivers Multiple access to broadband with no clear growth development plan will at worst confuse and stifle individual adoption and growth Moderate to high

State government to look into stability and speed of connectivity to attract the appropriate ICT based FDIs into the state. The top 3 concerns for MNCs setting up in any location are security, stability and availability. Close cooperation between State stakeholders and external parties to ensure synergy in development as well as follow up to ensure sustainable growth Identify clusters of interest and corresponding content need. Map broadband plan with the content needs as a overall strategy

ICT Industry (infrastructure)

Synergy between ecommunity centers and other forms of internet access

Moderate to high

ICT Industry (infrastructure)

Driving broadband access

The focus of ICT players in the industry is currently limited to infrastructure players as the provisioning of access is seen as a cash cow. This eventually does not address the second wave of growth limiting the content development players in the industry. This inherent limitation automatically stifles the growth of the ICT

Significant

ICT Industry (Accessibility)

High cost of Internet, which is causing many people to ignore the

Moderate

Possibility of subsidies or expanding access of free to use internet

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TABLE 23
Overall ICT Environment Gap Analysis
Category Key Findings Impact Gap Analysis Preliminary Recommendation across the state.

need to adopt it

industry as the basic fundamentals are not addressed. The low level s of maturity of the local ICT industry has led to the inability to craft a niche. This continues to limit growth potential including FDI/DDI as the state does not have a unique ICT proposition The industry is moving forward in growth without the support and need of ICT. This continues to put ICT in a position of nonrelevance Brain drain, poor demand for local supply leads to a ICT ecosystem which is dull Significant

ICT Industry (Maturity/Awaren ess)

There is no niche or specialization, which has been ear-marked going forward. Alignment between industry and government on the objectives and goals for the utilization of ICT is poor There is no vibrant ICT industry or widespread utilization of ICT across sectors

Identify state key unique areas for growth and development of the ICT Industry

ICT Industry (Maturity/Awaren ess)

Significant

Identify tie-ins which can propel the industry with ICT as a key enabler

ICT Industry (Resources/HR Skill Sets)

Lack of ICT skill sets within the ICT industry in a specific niche or specialization

Significant

Joint Co-Op with IHLs to ensure that relevancy is at the top list. State to also work towards creating a an overall ecosystem plan to reinvigorate the demand for ICT Taking into account existing plans of rollout, emphasis should be directed at designated industry zones Provide facilities with strong SLAs allowing confidence to providers

ICT Enabler (infrastructure)

Imbalance access to broadband

Industry plans by district and planed economy sectors are indirectly impacted if access is limited

Moderate

ICT Enabler (infrastructure)

Quality of Service (Speed of Internet)

E-services offered by organizations across various industries will not grow if there is a lack of stability The goals of setting up e-community centers go beyond the provisioning of hardware and internet

Moderate

ICT Enabler (infrastructure)

Full potential of ecommunity centers

Moderate

Support entrepreneurial development maximizing investment

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TABLE 23
Overall ICT Environment Gap Analysis
Category Key Findings Impact Gap Analysis Preliminary Recommendation on community centers

infrastructure. The current impact is no ICT growth translation as the facilities function merely as an internet gateway. ICT Enabler (infrastructure) Pipe (Broadband) with no content The focus of players in the industry is currently limited to the infrastructure players as the provisioning of access is seen as a cash cow. This eventually does not address the second wave of growth limiting the content development players in the industry. Not all business organizations will see the direct demand or need to leverage on ICT. Larger players in key sectors will obviously continue to spend on ICT infrastructure but the cash strapped SMBs will continue to put less of a priority. The impact will be the poor development of 2ndtier and 3rd-tier industry players The poor realization of value leads to overall poor perception on ICT and the eventual lack in ICT spending which stifles the growth of the ICT ecosystem Poor efficiencies and processes which lead to poor quality of service to customer Significant

Leverage on growing infrastructure and to create relevant content

ICT Enabler (Accessibility)

High cost of Internet, causing disparity in adoption across industries especially SMBs

Moderate

Empower access to enable the 2nd-tier and 3rd-tier industry players

ICT Enabler (Maturity/Awaren ess)

ICT seen as a complementary role to everyday processes rather than one which can be used to simplify processes

Significant

Provide education programs at a tiered level allowing for progress and growth, and closing the digital divide

ICT Enabler (Maturity/Awaren ess)

Alignment between government departments and agencies on the

Moderate

Consolidating roles and responsibilities and creating a strong standard operating

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TABLE 23
Overall ICT Environment Gap Analysis
Category Key Findings Impact Gap Analysis Preliminary Recommendation procedure as well as development programs and dialogue to ensure there is synergy Significant Conduct change management programs to ensure concerns are addresses allowing for overall growth Create niche areas of industry focus as a first step for growth followed by the promotion of ICT as a key subsector for not only enablement of the economy but for growth Establish a one stop center

objectives and goals for the utilization of ICT is poor

(rakyat)

ICT Enabler (Maturity/Awaren ess)

Resistances to utilization due to preference for manual processes within government

Poor efficiencies and processes which lead to poor quality of service to customer (rakyat)

ICT Enabler (Maturity/Awaren ess)

There is no vibrant ICT industry or widespread utilization of ICT across sectors

ICT has been sidelined creating a perception only as one of the many supporting functions to state growth

Significant

ICT Enabler (Maturity/Awaren ess)

Lacking in terms of a single point of contact to champion the effort to grow ICT adoption Lack of ICT skill sets within the government sector, makes it difficult to fully adopt ICT Imbalance access to broadband -creating a larger digital divide limiting coordinated growth to the overall state Quality of Service

No single point of contact, leading to no accountability and coordinated direction The proliferation of ICT is limited to basic functions and within departments which see value Imbalanced societal uptake creating a larger digital divide limiting a coordinated growth to the overall state Missing out on a pull factor that will encourage development of district based information societies. The lack of synergy does not give citizens a clear picture on the

Significant

ICT Enabler (Resources/HR Skill Sets)

Moderate to High

Coordinate initiatives to stem poor utilization and education to ensure increase awareness Continue with the roll out projects with emphasis on connecting rural areas

ICT Society (infrastructure)

Moderate

ICT Society (infrastructure)

Moderate

Drive quality of service as a standard and expected requirement

ICT Society (infrastructure)

Synergy between ecommunity centers and other forms of

Moderate

Close cooperation between State stakeholders and

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TABLE 23
Overall ICT Environment Gap Analysis
Category Key Findings Impact Gap Analysis Preliminary Recommendation external parties to ensure synergy in development as well as follow up to ensure sustainable growth through the coordination of key programs Moderate Create multiple channels of access allowing the building awareness and eventual subscription access to broadband Support efforts to provide device accessibility that are relevant

internet access

available paths to ride the ICT bandwagon. Impact will be seen in those that decide to ignore ICT altogether

ICT Society (Accessibility)

High Cost of Internet threaten broadband penetration efforts

State broadband penetration plans are under threat

ICT Society (Accessibility)

Availability of matching devices to promote broadband access

Devices are seen as one size fits all, causing an impact of irrelevance and non adoption No coordinated planned programs which enabled the preparation, readiness and growth towards being an information based society Strong indication of the irrelevance of ICT which stifles growth and adoption Mass availability of the status quo limits expertise which drives new synergies in the local market Workforce supply is hampered by a lack of ICT related capabilities

Moderate

ICT Society (Maturity/Awaren ess)

No champion to take ownership of the development of an information based society

Significant

Create a one stop agency which has the charter to ensure the state wide overall development and growth

ICT Society (Maturity/Awaren ess)

Lack of awareness leading to poor utilization of ICT in daily life ICT Programs do not have continuity or "level". This limits progression and growth Lack of ICT Skills to utilize basic functions on the computer

Significant

Execute awareness programs which are themed to address stigmas related to ICT Execute tiered education programs to mature the level of digital literacy

ICT Society (Maturity/Awaren ess)

Significant

ICT Society (Resources/HR Skill Sets)


Source: IDC, 2010

Significant

Execute 101 workshops to supply fundamental skills

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Supplement Gap of the ICT Industry


This segment of the report functions as supplement to fortify the findings of the ICT blueprint with the ICT industry as a key area of interest.
Overview

IDC sees the ICT industry as the universe of different providers across the ICT value chain serving the ICT needs of the state as well as beyond. In more mature information societies, a clear distinction can be drawn across the different providers across the value chain. IDC sees the providers playing varying fields from the upstream, midstream and downstream. The upstream represents the ecosystem players whose core function is on the manufacture, development and production of ICT products. The Midstream looks at the selling, distribution and implementation and the downstream looks at activities post sales activities such as technical support. To understand the current state of the ICT industry IDC looks at understanding the landscape across the value chain. The key source of information for society was derived from the following sources: Negeri Sembilan State Government Workshop Industry survey IDC sees the development and maturity of the ICT industry as a pivotal indicator on the ability to achieve large scale ICT success. A less mature ICT industry will dampen the efforts to permeate ICT across the state and as such the measures of growth should be targeted at building the ICT industry.
Current Scenario

IDC's research points to a non-vibrant ICT ecosystem. There are pockets of companies focusing on different areas of ICT but having a holistic, complete and resource rich ecosystem was not evident. A clear example of the state of the local ICT industry is exemplified by the participation in the World ICT Conference of 2008. The directory listed over 2318 ICT companies for the country with only 7 listed under Negeri Sembilan. From the 7 the bulk was institutions of higher learning with the small remainder focused on trade and distribution. IDC notes that there are only 8 MSC status companies in Negeri Sembilan. When comparing this to the overall number of MSC status companies, it is apparent that Negeri Sembilan is behind with regards to growth.

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TABLE 24
MSC Status Companies in Negeri Sembilan
Company Name StarTag Sdn Bhd Fine Digital Studio Sdn Bhd INTI College Nilai International College Kolej Negeri Kolej Lagenda PTPL Seremban Cosmopoint Sdn Bhd
Source: IDC, 2011

Focus R&D Wireless/Smart Card Animation/Post production Institution of Higher Learning Institution of Higher Learning Institution of Higher Learning Institution of Higher Learning Institution of Higher Learning Institution of Higher Learning

IDC's key observations as detailed in the Industry survey Focus cluster is on SMB type organization where the bulk has about 20 employees. Not all ICT organizations have a website. IDC has uncovered that a good 45% of organizations train staff for 1 day or less in a year. Lack of demand It is noted that within the ICT industry of Negeri Sembilan there is a resounding lack of demand to use ICT as a strategic driver as customers and suppliers do not request or see the need
Assessment

With regards to the above, IDCs assessment on the ICT industry is seen from a holistic level. IDC notes the entire ICT industry has to be examined from a an angle of a complete holistic ecosystem. IDCs view with regards to the gap is as follows. The majority of ICT companies in Negeri Sembilan are smaller type firms. IDC sees the lack of spread across different type of organizations as a hindrance to overall ICT permeation and growth. With the smaller type firms being the large majority, scalability and moving up the value chain will be a constant issue. The very small number of MSC type companies in Negeri Sembilan is an indication of the level of activeness in the state. IDC notes that even with the

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small number, there is a relatively diverse spread which inhibits growth. The fact that there is no cluster limits available resource to grow. For example there is a small number of companies focusing on animation and as such graduates will likely opt for courses with more job prospects. Given that not all ICT companies have a website; IDC is of the inclination to believe that business is currently running at status quo with no real driver to change. IDC's survey uncovered that even within the ICT industry itself, there is no 100% permeation of ICT as exemplified by the availability of websites. Further drill down indicates that there exists organization which focuses on just low level break-fix support. IDC sees training as a pivotal part to grow the ICT industry, given that ICT organizations themselves on average generally train less than a 1 day a year drives ICT professionals into a silo's limiting career growth. Without a change in culture IDC sees it hard for the ICT industry to grow as the readiness, exposure and expertise of an ICT professional is growing at a slow rate. The lack of demand indicates the maturity of the industry as a whole beyond ICT. This lack of demand represents that there is not vibrancy in the ICT ecosystem. This in turn is seen as an inhibitor for growth as there is no real driver to or need for ICT providers to solution products for the market.
ICT Industry in the context of Cyber Cities and Cyber Centre initiatives

With the above points in play IDC notes that strategic efforts need to be in place to build the ICT industry to the next level. As the initiatives related to cybercentres generally play a pivotal part as an overarching ICT growth strategy under MSC Malaysia 2.0, the following segment looks at the expected performance standard required. The performance areas that the report will look into are based on those practiced in the MSC Malaysia Performance Standards for Cyber cities and Cyber centers document provided by MDeC. The performance areas covered are: 1. Info structure 2. Electricity Supply 3. Water 4. Transportation 5. Natural Environment 6. Security and Safety 7. Customer Service Quality

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It is important to contextualize efforts to build the above accordingly in line with efforts to create initiatives on Cyber Centres and Cyber Cities. With that the table below details out the key performance standards which need to be considered.

TABLE 25
MSC Malaysia Performance Standards Requirements
Performance Parameters Telecommunication Infrastructure & Services Availability of CMDF room for a multiple licensed operator environment Availability of reserved areas or secure spaces to accommodate multiple telecommunication providers Availability of inside plant facilities to support building internal cabling system with sufficient capacity for a multiple operator environment Availability of building access infrastructure for telecommunication redundancy Availability of fiber optic as the preferred internal wiring for data, or a minimum of CAT 5e or equivalent standard No exclusivity agreement limiting other licensed operators' ability to offer services directly to end users Availability of all range of voice, data/internet services to all customers Availability of broadband access to business customers for data/internet services Full coverage by all local mobile networks within all accessible areas (indoors and outdoors) Availability of 3G coverage within all accessible areas indoors and Available Available Cyber City Standard Cyber Center Standard

Available

Not Applicable

Available

Available

Available

Available

Available

Available

Available

Available

Available

Available

Minimum 4 Mbps

Minimum 2Mbps per subscriber

Minimum -95 dBm

Minimum -95 dBm

Available

Available

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TABLE 25
MSC Malaysia Performance Standards Requirements
Performance Parameters outdoors* Broadband Access Service Compliance to MCMC Determination Broadband Quality of Services (QoS). Service Lead Time Maximum service provision installation lead time for basic telephone upon confirmed order Maximum service provision installation lead time for Domestic Free Phone upon confirmed order Maximum service provision installation lead time for International Free Phone upon confirmed order Maximum service provision installation lead time for Domestic private leased circuits upon confirmed order Maximum service provision installation lead time for International private leased circuits upon confirmed order (half circuitlocal portion) Maximum service provision installation lead time for Internet access leased circuit upon confirmed order Service Availability Minimum service availability for all services per month Service Restoration and Support Availabilities of 24 hours Telcos customer service centre Billing and Network Management 99.9% 99.9% 24 hours 24 hours Available Available Cyber City Standard Cyber Center Standard

24 hours

Not Applicable

7 working days

Not Applicable

14 Working days

14 Working days

30 working days

30 working days

16 Working days

Not applicable

Available

Available

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TABLE 25
MSC Malaysia Performance Standards Requirements
Performance Parameters Maximum fault report acknowledgement Maximum fault restoration Maximum reconfiguration of switched services Billing for all services Maximum bill dispute resolution Infrastructure Availability of redundant incoming feeders to enterprise building or site Availability of generator set back up and/or Uninterruptable Power Supply (UPS) system to cover the entire the building Availability of ATS from primary electricity supply to secondary supply* Availability of Automatic Transfer Switch (ATS) from electricity supply (Primary or Secondary) to generator set Operation and Maintenance Maximum no of power interruptions per year Maximum restoration time of backup power supply to enterprise with auto switch over from primary to secondary source or UPS system Maximum restoration time of backup power supply to enterprise with auto switch over from main source (primary or secondary) to generator set Minimum notification of scheduled / <3 <6 Available Available Cyber City Standard 1 hours Cyber Center Standard 1 hours

4 hours 7 days

4 hours 7 days

Monthly 1 month

Monthly 1 month

Available

Available

Available

Available

Available

Available

<15 seconds

<15 seconds

<15 seconds

<15 seconds

7 Working days

7 Working days

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TABLE 25
MSC Malaysia Performance Standards Requirements
Performance Parameters planned supply interruption Electricity Supply Connection Maximum lead time for new supply connection: Low Voltage Normal/Bulk Supply Maximum lead time for new supply connection: Medium Voltage Service Availability Minimum electricity service availability 99.9% (Maximum allowable interruption of electricity supply - 45 minutes per month) 99.9% (Maximum allowable interruption of electricity supply - 45 minutes per month) 2 Working days 2 Working days Cyber City Standard Cyber Center Standard

5 Working days

5 Working days

Support and Ancillary Services Maximum lead time for change of tenancy Maximum Meter Testing & Inspection lead time Maximum change of Meter lead time Electricity Billing Maximum Bill Dispute Resolution Availabilities of 24 hours Electricity Provider service centre Response time/Feedback to Consumers Water Supply Availability of service level agreement or client charter on water supply services Transportation Availability of multiple mode of public transport such as taxi, bus, train, LRT, ERL, commuter 2 2 Available Available 1 working days 1 working days

2 working days

2 working days

3 working days

3 working days

Monthly 1 month Available

Monthly 1 month Available

24 hours

24 hours

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TABLE 25
MSC Malaysia Performance Standards Requirements
Performance Parameters Taxi Operation Hours Natural Environment Environmental compliance / initiatives Security and Safety Availability of Emergency Response Plan (ERP) Response time of local police Response time of local ambulance Response time of local fire brigade Availability of multiple security measures at the building / site Customer Service Quality Availability of dedicated One Stop Centre with 24 hours accessibility Availability of Client Charter Implementation of Customer Relationship Management Implementation of ISO 9001 Certified Cybercity Management
Source: MSC Malaysia Performance Standards

Cyber City Standard 24 Hours Available

Cyber Center Standard 24 Hours Available

Available

Available

10 minutes 10 minutes 10 minutes 2

15 minutes 15 minutes 15 minutes 2

Available

Available

Available Available

Available Available

Available

Available

The table above summarizes all the key performance standards required to establish a Cyber Centre or Cyber City. Given the nascent state of the ICT industry in Negeri Sembilan, the state needs to strategize on what are the key milestones to achieve and if the establishment of a Cybercentre is part of its overarching plan. At this point if the Cybercenter is to be established the key objective will be to have the performance standards as a key pull factor to draw in investors/tenants. With that in mind IDC's analysis points to the establishment of a Cyber Centre be premature until there is a pressing need. This is because the whole purpose of a CyberCentre is to provide the underlying supporting facilities which are considered premium.

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Global & Regional Best Practices


In examining Negeri Sembilan's current focus, objectives and goals for the development of ICT, IDC has ear-marked two distinct regions, which have embarked on similar ICT laden initiatives to improve its economic sector, enhance foreign direct investment, and to produce an ICT literate society. These regions are that of South Australia and Ireland. While there is no 1 to 1 matching in terms of core focus, IDC has derived similar goals and objectives in the proliferation of ICT, as well as the key economic sectors being enabled by the usage of ICT.

South Australia
The specific objectives for the development of ICT within the region of South Australia were as follows; To create South Australia's ICT Industry as an economic powerhouse for Australia To transform all South Australian industries via ICT for improvement and enhancement ICT as a means and fundamental for success in the digital age The development of ICT within South Australia focused primarily on the creation of a robust ICT industry as a means to support the development and enhancement of its traditional sectors to increase productivity and quality by creating better products and services. The promotion in the utilization of ICT across these key sectors is to eventually reap the benefits of an innovative application of technology and recognize the crucial role ICT plays in the state's economy. This transformation process took into account public sector (education), all economic sectors, and society. The over-riding granular themes in achieving these goals were identified as follows; Increase linkages between ICT companies and non-ICT sectors Improve linkages between the state Government and the ICT sector Develop an effective export market access program Improve investment opportunities in ICT Improve collaboration and R&D between industry & IHLs Increase business and entrepreneurial skills within the ICT sector with particular emphasis on those companies targeting national and global markets Implement a strategically based ICT skills workforce development program, for all sectors

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With this outlined, IDC has drawn inferences and comparisons between South Australia's ICT goals and objectives, and mapped it alongside Negeri Sembilan's own ICT objectives. The table below exemplifies this comparison;

TABLE 26
Comparison of ICT Goals & Objectives between South Australia & Negeri Sembilan
South Australia Goals & Objectives To create South Australia's ICT Industry as an economic powerhouse for Australia To transform all South Australian industries via ICT for improvement and enhancement ICT as a means and fundamental for success in the digital age
Source: IDC, 2010

Negeri Sembilan Goals & Objectives No direct matching but there is a focus to reinvent the overall focus of ICT and the accompanying ecosystem To use ICT as a key enabler to support the growth of industries To ensure adequate infrastructure, policies and programs are created to ready the state for the digital age

Overview of South Australia Initiatives


The following section outlines the key initiatives undertaken by the South Australia state government in actualizing the goals in transforming the region into a key ICT based hub for Australia;
South Australia: ICT Industry as an Economic Powerhouse

This initiative included all ICT products and services companies, which formed the engine of growth for productivity and competitiveness for industry and government. It was an all encompassing plan which took into account human capital development, SMEs, and ICT systems in attempting to heighten creativity, innovation and productivity within the state. Build Capacity for Growth To provide business skills training, mentoring and business growth programs to enable future growth. This initiative also encourages local ICT companies to work alongside IHLs and government in R&D and development of ICT products/services. Elevate to Compete Globally To identify and support those areas in which the state has strengths and a solid foundation for international success. This includes identification of an opportunity and niche to leverage upon to build on South Australia's ICT reputation on a global scale.
ICT: Transforming all South Australian Industries

This goal was identified as a means of showcasing the power of ICT to transform industries into high-growth, high-potential areas for success. With a creation of a vibrant ICT industry, this complements the growth and success of the other economic sectors. ICT is hypothesized to drive revenue, lower cost and contribute to the productivity, innovation and the growth of the state's key economic sectors.

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Invest in ICT By encouraging all South Australian businesses to utilize ICT to improve overall business performance by "opening up" and re-engineers processes and looking long-term as the benefits of ICT is not usually seen immediately. This "re-engineering" should take place within both the government and industry sector, so both state and industry are aligned with similar goals of ICT as a strategic enabler for improving business productivity. Foster Collaboration By promoting connections and collaborations between the ICT industry and research institutions in the region. The research institutions in the South Australia region already conduct programs to encourage collaboration between researchers and industry, providing small start-ups, large corporations and community service organizations access to high quality, experienced academic researchers, valuable infrastructure and global information sources.
ICT in South Australia: Fundamentals for S uccess

This goal was identified to create a skillful, innovative and productive workforce, coupled alongside state of the art infrastructure as a vital support structure to the South Australian industry to utilize ICT to its advantage. Plan to Provide Skills & Workforce ICT skills are in strong demand both internationally and domestically in Australia. With South Australian companies indicating the need and want to hire more ICT skilled employees, the state government has to crucially look into the development and preparation of a ready talent pool to feed into this demand. The primary focus of these programs will be to create a workforce based on the needs of firms working in technology intensive sectors. South Australia has identified a potential shortage of these skill sets in the medium to long term, and has introduced means to foster talent development in ICT within the state. Build on Infrastructure As the main base of which ICT is both developed and delivered; there is a need to further proliferate broadband telecommunications within the state, as an essential platform for the delivery and success of businesses in the modern digital age. Wireless computing, new mobile services and high performance computing infrastructure is introduced as a crucial area of infrastructure development within the state in moving forward.

Rationale for Benchmark between South Australia and Negeri Sembilan


The table below outlines the rationale for the selection of South Australia as a potential benchmark or "aspiration" for the state of Negeri Sembilan in achieving their ICT goals;

TABLE 27
Rationale for Benchmark
South Australia, Australia Ear-marked ICT as a crucial indicator for further growth Negeri Sembilan, Malaysia Has not ear-marked ICT as a crucial indicator for success but

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TABLE 27
Rationale for Benchmark
South Australia, Australia and proliferation of industry's impact on overall GDP for the state Recognized the need for a vibrant ICT industry to prepare the state for the digital age, fostering collaborating and innovation A state strong in Manufacturing, Education and Healthcare and sees ICT as a key enabler for these industries Lack of ICT skill sets and the need to improve on the ready talent pool to serve demand
Source: IDC, 2010

Negeri Sembilan, Malaysia in recent times stepped up efforts to permeate ICT adoption

Does not have an existing entry point to revitalize the ICT industry but is in search for the right focus to leverage and grow Strong focus on Manufacturing, Services and Agriculture and sees ICT as supporting tool to drive success and growth

Lack of ICT skill sets and the need to improve on the ready talent pool to create an industry

Ireland
The specific objectives for the advocacy and development of ICT in Ireland are listed as follows; Raise awareness on the importance of the ICT sector to the Irish economy in all sections of society and economic sectors Ensure that Ireland is an attractive location for ICT investment by both foreign and indigenous companies Promote an environment which encourages innovation Develop links between the component parts of the ICT industry in Ireland, both indigenous and foreign owned The over-arching vision of the implementing and heightening of ICT within the Irish environment is to ensure that the country retains and extends a global leadership role in ICT. The strategic imperatives and vision for the enhancement of ICT in Ireland is as follows; Government, agencies and the public see the ICT industry as one of the most important sectors in the country That Ireland has the necessary skills for a vibrant and sustainable ICT Industry That Ireland is regarded as a competitive location for ICT, both domestically and internationally

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That Ireland becomes a very attractive place in which to undertake research and development That Ireland becomes a genuinely recognized knowledge and e-enabled economy That the ICT sector in Ireland improves its access to, and interaction with, the final customer through sales and marketing expertise via initiated programs With this outlined, IDC has drawn inferences and comparisons between Ireland's ICT goals and objectives, and mapped it alongside Negeri Sembilan's own ICT objectives. The table below exemplifies this comparison;

TABLE 28
Comparison of ICT Goals & Objectives between Ireland & Negeri Sembilan
Ireland Goals & Objectives That Ireland has the necessary skills for a vibrant and sustainable ICT Industry Government, agencies and the public see the ICT industry as one of the most important sectors in the country That the ICT sector in Ireland improves its access to, and interaction with, the final customer through sales and marketing expertise via initiated programs
Source: IDC, 2010

Negeri Sembilan Goals & Objectives Focused on developing a society which will be able to participate and leverage on the digital age No direct matching on the crucial demand for ICT but in recent times stepped up efforts to permeate ICT adoption To ensure adequate infrastructure, policies and programs are created to ready the state for the digital age

Overview of Ireland Initiatives


The following section outlines the key initiatives undertaken by the Irish state government in actualizing the goals in transforming the region into a key ICT based hub for the UK;
Government, agencies and the public see the ICT industry as one of the most important sectors in the country

Develop a core message that can be used as a community template Liaise an work with relevant parties in the Government and state agencies to promote the positive aspects of the ICT sector and to outline key issues Foster relationships with key technology journalists to ensure they have easy access to spokespeople to advocate ICT in Ireland
That Ireland has the necessary skills for a vibrant and sustainable ICT Industry

Promote ICT as a career of choice

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Formulate advocacy programs to encourage more students to take up ICTrelated subjects Develop a robust policy on ICT and education Develop relationships with the Department of Education and co-operate on the formulation of policy on ICT usage in the classroom as an education tool Identify shortfalls in the supply of Irish graduates and alternative sources of skills
That Ireland is regarded as a competitive location for ICT, both domestically and internationally

Lobby the Government and regulators on competitive issues, such as energy and wage costs.
Lobby the Government to ensure that the Irish tax regime remains competitive for both foreign-direct investment (FDI) and the indigenous sector. Track the development of new EU and Irish regulations and their impact on the ICT sector. Develop marketing materials (with the IDA) to promote Ireland as a location of choice for new or further investment by foreign-owned ICT companies. Work with the Revenue Commissioners to ensure that Ireland has an effective trade policy for exporting companies. Develop strategic policies in relation to creating scale in the indigenous ICT sector with the Irish Software Association.
That Ireland becomes a very attractive place in which to undertake research and development

Lobby Government and state agencies to ensure that there is a national focus on applied R&D Work with state agencies and the Revenue Commissioners to develop greater suite of supports for companies investing in R&D in Ireland Develop specific actions to encourage greater commercialization of research Address the cultural disconnect between industry and academia Lobby the European Commission to ensure that there is greater access to EU Framework funding.
That Ireland becomes a genuinely recognized knowledge and e enabled economy

Examine incentives in other markets, which encourage greater uptake of technology in the home.

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Work with all key stakeholders to introduce such incentives. Co-operate with the Government to expand on-line public services. Develop relationships with the Department of Finance in the area of public procurement policies. Incorporate the EU policy on the information society i2010 - A European information society for growth and employment into Irish Government policy
That the ICT sector in Ireland improves its access to, and interaction with, the final customer through sales and marketing expertise via initiated programs

Co-operate with relevant state agencies to develop a greater suite of support for companies investing in sales and marketing in Ireland. Collaborate with the education sector to encourage a greater focus on sales and marketing capabilities in engineering and technology courses.

Rationale for Benchmark between Ireland and Negeri Sembilan


The table below outlines the rationale for the selection of Ireland as a potential benchmark or "aspiration" for the state of Negeri Sembilan in achieving their ICT goals;

TABLE 29
Rationale for Benchmark
Ireland Attempting to heighten collaboration between government and industry to further propel ICT as a key component and economic sector for the country ICT seen as a crucial enabler for the education sector, in creating a robust policy for ICT utilization in schools Promoting greater collaboration between IHLs and industry via ICT R&D Willingness to expand on e-Government initiatives to citizens
Source: IDC, 2010

Negeri Sembilan, Malaysia The state government is embarking on close public-private collaborations which has the potential to propel the development of ICT Nilai was dubbed education valley, and there is strong indication of ICT awareness and usage in this sector No direct matching but the IHL's have strived for MSC status

The state has embarked on several e-Government based initiatives to serve citizens

Key Findings for Benchmark Regions


The following table then outlines the key findings from both South Australia and Ireland as they attempt to transform their region economically, and improve society development via ICT. These key findings and best practices were considered when

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viewing the state of Negeri Sembilan, in formulating key recommendations, where relevant, in moving forward. The shaded columns are those key findings which were similar across both Ireland and South Australia, and can be considered as a crucial component in building the base of ICT development within any country. The nonhighlighted components are the customized goals of the regions based off the base initiatives in developing such an industry.

TABLE 30
Key Findings for Benchmark Regions
Ireland ICT seen as a crucial means in enabling key economic sectors and heightening the attractiveness of Ireland ICT development to begin in schools, and policies should be drafted and implemented to encourage utilization of ICT in schools R&D as a key component for sustainability of ICT companies Government interactions between industry and society have to be heightened to align vision of ICT for the region Development of ICT skill sets is crucial via programs and initiatives
Source: IDC, 2010

South Australia, Australia ICT utilized as a means to improve on society quality of life and industry enablement The creation of a vibrant ICT industry via adequate support structure and eco-system is crucial for the sustainability and spill-over effect of ICT benefits to other sectors R&D as a key component for sustainability of ICT companies

Government interactions between industry and society have to be heightened to align vision of ICT for the region Development of ICT skill sets is crucial via programs and initiatives

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STRATEGIC RECOMMENDATIONS FOR THE DEVELOPMENT OF ICT I N NEGERI SEMBILAN


Recommendations
Overview
In formulating the key recommendations, IDC took a dual approach to address and build key recommendations which are forward looking while at the same time assimilating the current aspirations of the state. IDCs methodology is a layered approach which firstly addresses the current gaps and aspirations and from there gaps to achieve a forward looking future state. The figure below depicts the fundamental components which lead to the buildup and attainment of the ICT vision of Negeri Sembilan. It is important to note that for some, the buildup can be done in parallel as there are recommendations which leap frog directly towards the vision and there are some which are done in succession as the initial gaps need to be addressed in order for recommendations to leap frog.

FIGURE 26
IDCs approach to attaining the ICT vision of Negeri Sembilan

ICT Vision of the State of Negeri Sembilan


Address gaps - To Reach Vision Address gaps - Current Scenario

Source: IDC, 2010

The objective of these strategic recommendations for the development of ICT for the state is to promote awareness and the utilization of ICT within the state to increase productivity and efficiency across the public sector, industry and society. The ultimate goal is for the citizens of Negeri Sembilan to reap the benefits of ICT for their future development, heightened quality of life and to recognize the crucial role ICT plays in the development of the state's economy moving ahead in the digital economy.
ICT Vision of Negeri Sembilan

Taking into account the current scenario of plans, aspirations and benchmarks, IDCs recommends an overarching vision to govern future activities.

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The ICT Vision of the state of Negeri Sembilan is to be a society that fully leverages on ICT by e-enabling key industry sectors for growth and by connecting all walks of life through the establishment of a state-wide mechanism built on ICT. In addressing this vision and aligning it to the MSC Malaysia 2.0 model, IDC recommends the translation to the following key tenants. Vision for ICT as an Industry To be the first fully e-connected state in Malaysia by reinvigorating the local ICT industry through the establishment of a state wide digital portal. Vision for ICT as an Enabler To be a local leader in crossing the digital chasm by e-translating complex value chains for the e-enablement of the state's key industry sectors- tourism, manufacturing and agriculture. Vision for ICT for Society To transform Negeri Sembilan into a society that has ubiquitous use of ICT

FIGURE 27
Translation of state ICT Vision to MSC Malaysia 2.0 pillars

Source: IDC, 2010

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In order to reach the proposed aspired vision of the state, IDC has outlined the necessary building blocks as per figure 1 above. The idea is essentially to address current gaps based on existing plans and where possible work in parallel to add the next building block to address the gaps for the vision.
Address gaps - Current Scenario

IDC synthesized the findings from the Gap Analysis to identify key problematic areas which need to be addressed as a way forward. From the Gap Analysis a total of 28 problematic areas were identified and are clustered in the table below.

TABLE 31
Map of Problem Areas Across MSC Malaysia 2.0 Pillars
Fundamentals Infrastructure (1) ICT Industry (A) Access to broadband generally focused on more high density populated areas. (A.1.1) Quality of Service (Speed of Internet) (A.1.2) Synergy between ecommunity centers and other forms of internet access (A.1.3) Driving broadband access (A.1.4) Accessibility (2) High cost of Internet, which is causing many people to ignore the need to adopt it (A.2.1) High cost of Internet, causing disparity in adoption across industries especially SMBs (B.2.1) High Cost of Internet threaten broadband penetration efforts (C.2.1) Availability of matching devices to promote broadband access (C.2.2) Maturity/Awareness (3) There is no niche or specialization, which has been ear-marked going forward. Alignment between industry and government on the objectives and goals for the utilization of ICT is poor (A.3.1) There is no vibrant ICT industry or wide-spread utilization of ICT across sectors (A.3.2) ICT seen as a complementary role to everyday processes rather than one which can be used to simplify processes (B.3.1) Alignment between government departments and agencies on the objectives and goals for the utilization of ICT is poor (B.3.2) Resistances to utilization No champion to take ownership of the development of an information based society (C.3.1) Lack of awareness leading to poor utilization of ICT in daily life (C.3.2) ICT Programs do not have continuity or "level". This limits progression and growth (C.3.3) ICT Enabler (B) Imbalance access to broadband (B.1.1) Quality of Service (Speed of Internet) (B.1.2) Full potential of ecommunity centers (B.1.3) Pipe (Broadband) with no content (B.1.4) ICT Society (C) Imbalance access to broadband -creating a larger digital divide limiting coordinated growth to the overall state (C.1.1) Quality of Service (C.1.2) Synergy between ecommunity centers and other forms of internet access (C.1.3)

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TABLE 31
Map of Problem Areas Across MSC Malaysia 2.0 Pillars
Fundamentals ICT Industry (A) ICT Enabler (B) due to preference for manual processes within government (B.3.3) There is no vibrant ICT industry or wide-spread utilization of ICT across sectors (B.3.4) Lacking in terms of a single point of contact to champion the effort to grow ICT adoption (B.3.5) Resources/HR Skill Sets (4) Lack of ICT skill sets within the ICT industry in a specific niche or specialization (A.4.1) Lack of ICT skill sets within the government sector, makes it difficult to fully adopt ICT (B.4.1) Lack of ICT Skills to utilize basic functions on the computer (C.4.1) ICT Society (C)

Source: IDC, 2010

The matrix identifies the key problem areas across both the key tenants of MSC 2.0 as well as the 4 mapped fundamentals of infrastructure, accessibility, maturity/awareness and resources/HR Skills. Moving into the details, the problem areas are then mapped into key Major ICT Themes. Based on IDCs research and the aspirations of the state of Negeri Sembilan, IDC notes that 4 Major ICT Themes have emerged. The emergence of these themes is driven as a combination of either current state aspirations and/or gaps which currently exist. Broadband for All IDC notes the current and aspired plans of the state which highlights the importance of the proliferation of broadband from both the angle of supply and adoption. While there are various current pain points ranging from general availability and quality to actual adoption IDC notes the importance the state has placed on Broadband. IDC's recommendations takes into account 2 factors, what needs to be done to support the proliferation of Broadband and what will be the next step forward for the state once the Broadband aspirations are met. Industry Empowerment This Major ICT theme takes into account the current state of industry sectors in Negeri Sembilan and focuses on the plans the state has to drive the sectors forward. It also takes into account the current role of ICT as part of the overall growth plan and the gaps which are in existence. IDCs recommendations take into account 2 factors, what needs to be done to support the industry growth by key sectors and what will be

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the next step forward for the state once aspirations on industry empowerment are met. Content Connection The idea behind Content Connection relates to the current state of digital content creation in Negeri Sembilan. IDC notes the efforts driven by the state government on Broadband penetration and notes that key issues arise when there is infrastructure in place but there is a lack of content to drive adoption. IDCs recommendations take into account 2 factors, what needs to be done to support the proliferation of digital content creation and what will be the next step forward for the state once an ecosystem of content creation is in place. Digital Awareness The theme of Digital Awareness takes into account the current scenario of ICT awareness and the current efforts taken to ready the state in line with aspirations to move into a knowledge economy. Current key issues range from general awareness all the way to the availability of development programs. IDCs recommendations take into account 2 factors, what needs to be done to support and to grow Digital Awareness and what will be the next step forward for the state once the state has the right fundamentals in place. The Major ICT themes, brief description and map to problem areas are outlined below

TABLE 32
Major ICT Themes
Major ICT Themes Broadband for All IDCs alignment to Vision Proliferation of Broadband access to reach all of Negeri Sembilan Description This major theme looks to address key issues currently limiting broadband penetration across the state with aspiration to transform access and connecting the entire state Mapping to Problem Areas A.1.1 A.1.2 A.1.3 A.1.4 A.2.1 B.2.1 C.1.1 C.1.2 C.1.3 C.2.1 C.2.2

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TABLE 32
Major ICT Themes
Major ICT Themes Industry Empowerment IDCs alignment to Vision Achievement of GDP targets by key industries Description This major theme looks to address key issues currently hindering the leveraging of ICT as strategic tool to drive for industry growth Mapping to Problem Areas A.3.1 B.1.1 B.1.2 B.1.3 B.3.1 B.3.2 B.3.3 B.3.4 B.3.5 Content Connection Repositioning Negeri Sembilan as a key state This major theme looks at the transformation of the government along with the state through digital content creation This major theme looks at addressing the issue of digital e-literacy from a holistic point of view inculcating ICT as a key aspect of rakyat in Negeri Sembilan A.3.2 B.1.4

Digital Awareness

Preparing the citizens to participate and leverage the digital age

A.4.1 B.2.1 B.2.2 B.4.1 C.3.1 C.3.2 C.3.3 C.4.1

Source: IDC, 2010

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FIGURE 28
Major ICT Themes building up to MSC Malaysia 2.0 pillars

ICT Vision of the state of Negeri Sembilan The ICT Vision of the state of Negeri Sembilan is to be a society that fully leverages on ICT by e-enabling key industry sectors for growth and by connecting all walks of life through the establishment of a state-wide mechanism built on ICT.
ICT as an Enabler ICT as an Industry To be the first fully e-connected state in Malaysia by reinvigorating the local ICT industry through the establishment of the first state wide digital portal. To be local leader in crossing the digital chasm by e-translating complex value chains for the eenablement of the state's key industry sectors- tourism, manufacturing and agriculture. . ICT for Society To transform Negeri Sembilan into a society that has ubiquitous use of ICT

Broadband for All

Content Connection

Industry Empowerment

Digital awareness

Source: IDC, 2010

With the Major ICT themes in place, IDC endeavored to put together a list of initial recommendations to address the needs of the current scenario. The list of initial recommendations is put in place to address current state aspirations and/or to address gaps which currently exist. The full lists of recommendations are listed below.

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TABLE 33
Initial list of recommended programs based on Major ICT Themes
Major ICT Theme Problem Area Initial Recommendations MSC 2.0 & Fundamental map ICT-I / Infrastructure

Broadband For All

Imbalance access to broadband (A.1.1)

Fortify industrial districts with high speed broadband & create increase access across the state (A.1.1-A)

Quality of Service (A.1.2)

Establish a District Broadband council to grow broadband access in key areas (A.1.2-A) Establish a state wide broadband council (A.1.3-A) Maintain a broadband heat map (A.1.3-B) Establish Public Broadband space (A.1.4-A) Maintain a broadband heat map (A.2.1-A) Expand Public Private Partnerships (A.2.1-B)

ICT-I / Infrastructure

Synergy between ecommunity centers and other forms of internet access (A.1.3)

ICT-I / Infrastructure

Driving broadband access (A.1.4) High Cost of Internet (A.2.1)

ICT-I / Accessibility

ICT-E / Infrastructure

High cost of Internet, causing disparity in adoption across industries especially SMBs (B.2.1) Imbalance access to broadband -creating a larger digital divide limiting coordinated growth to the overall state (C.1.1)

SMB empowerment through the provisioning of affordable broadband as well as other ICT infrastructure (B.2.1-A) Expand existing rollouts (example 1NS Wireless city, Hotspots etc) (C.1.1-A) Public ICT awareness programs (C.1.1-B) Establishment of smart homes (C.1.2-A) Appointing an OSA (C.1.2-B)

ICT-E / Accessibility

ICT-S / Infrastructure

Quality of Service resulting in missed opportunities to create a pull factor that will encourage development of district based information societies (C.1.2) Synergy between ecommunity centers and other forms of internet access does

ICT-S / Infrastructure

State wide broadband council for planning and coordination (C.1.3-A)

ICT-S / Infrastructure

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TABLE 33
Initial list of recommended programs based on Major ICT Themes
Major ICT Theme Problem Area Initial Recommendations MSC 2.0 & Fundamental map

not give citizens a clear picture on the available paths to ride the ICT bandwagon (C.1.3)

Establish a District Broadband council to champion local access (C.1.3-B) Maintain a broadband heat map (C.2.1-A) Expand Public Private Partnerships (C.2.1-B) ICT-S / Accessibility

High Cost of Internet threaten broadband penetration efforts (C.2.1)

Availability of matching devices to promote broadband access (C.2.2)

Subsidized PCs (C.2.2-A) PC leasing program (C.2.2B) ICT empowerment workshops (A.3.1-A) Development of industry clusters (A.3.1-B)

ICT-S / Accessibility

Industry Empowerment

There is no niche or specialization, which has been ear-marked going forward. Alignment between industry and government on the objectives and goals for the utilization of ICT is poor (A.3.1) Imbalance access to broadband (B.1.1)

Fortify industrial districts with high speed broadband & create increase access across the state (B.1.1-A) Empower SMBs with access (B.1.1-B)

ICTE / Infrastructure

Quality of Service (B.1.2)

Establish mini-cybercentre (B.1.2-A) Appointing an OSA (B.1.2-B)

ICTE / Infrastructure

Achieving Full potential of ecommunity centers (B.1.3) ICT seen as a complementary role to everyday processes rather than one which can be used to simplify processes (B.3.1)

ICT Desa Program (B.1.3-A)

ICTE / Infrastructure

Tiered capability development programs (B.3.1-A) ICT empowerment workshops (B.3.1-B)

ICT-E/ Maturity/Awareness

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TABLE 33
Initial list of recommended programs based on Major ICT Themes
Major ICT Theme Problem Area Initial Recommendations MSC 2.0 & Fundamental map ICT-E/ Maturity/Awareness

Resistances to utilization due to preference for manual processes within government (B.3.3) There is no vibrant ICT industry or wide-spread utilization of ICT across sectors (B.3.4)

Pembudayaan ICT kerajaan (B.3.3-A) ICT proficiency test (B.3.3-B) Access @ Negeri Sembilan (B.3.4-A) ICT Empowerment for the Agriculture Industry (B.3.4-B) ICT Empowerment for the Manufacturing Industry (B.3.4-C) ICT Empowerment for the Tourism Industry(B.3.4-D)

ICT-E/ Maturity/Awareness

Lacking in terms of a single point of contact to champion the effort to grow ICT adoption (B.3.5) Content Connection There is no vibrant ICT industry or wide-spread utilization of ICT across sectors (A.3.2) Driving broadband access (B.1.4) Digital Awareness Lack of ICT skill sets within the ICT industry in a specific niche or specialization (A.4.1)

Appoint a one stop center (B.3.5-A)

ICT-E/ Maturity/Awareness

Industry 2.0 - Digital empowerment (A.3.2-A)

ICT-I/ Maturity/Awareness

District level content (B.1.4A) Industry training programs (A.4.1-A) IHL subject design (A.4.1-B)

ICT-E/ Infrastructure

ICT-I/ Resources/HR

Bridging Access to the government (B.2.2) Lack of ICT skill sets within the ICT industry in a specific niche or specialization (B.4.1)

1 NS Rakyat Portal (B.2.2-A)

ICT-E/ Accessibility

Industry training programs (B.4.1-A) IHL subject design (B.4.1-B)

ICT-E/ Resources/HR

No champion to take ownership of the development of an information based society

Establish a one stop center (C.3.1-A)

ICT-S/Maturity/Awareness

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TABLE 33
Initial list of recommended programs based on Major ICT Themes
Major ICT Theme Problem Area Initial Recommendations MSC 2.0 & Fundamental map

(C.3.1) Lack of awareness leading to poor utilization of ICT in daily life (C.3.2) Taska 2.0 @ Pre-school (C.3.2-A) ICT friends @ Primary School (C.3.2-B) Teen Zone 2.0 @ Secondary School (C.3.2-C) Warga Emas Warga Maju (WTWM) @ Retirement (C.3.2-D) ICT Programs do not have continuity or "level". This limits progression and growth (C.3.3) Lack of ICT Skills to utilize basic functions on the computer (C.4.1)
Source: IDC, 2010

ICT-S/Maturity/Awareness

Tiered capability development programs (C.3.3-A)

ICT-S/Maturity/Awareness

ICT 101 program (C.4.1-A)

ICT-S/Resources/HR

Address gaps - To Reach Vision

With the fundamentals in place IDCs recommendations takes to the next phase in which key recommendations are put in place to reach the state ICT Vision.

TABLE 34
Recommendations to attain ICT Vision of the State
Vision Vision for ICT as an Industry To be the first fully e-connected state in Malaysia by reinvigorating the local ICT industry through the establishment of a state wide digital portal. Remarks There is currently no entry point to build the local ICT industry There is good infrastructure build up but there are no programs in place to drive content Negeri Sembilan has strong plans to create industry niches across the districts Strong empowerment on the west Recommendation MSC Malaysia Incubator MSC Malaysia Cybercentre Access @ Negeri Sembilan

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TABLE 34
Recommendations to attain ICT Vision of the State
Vision bank Vision for ICT as an Enabler To be a local leader in crossing the digital chasm by e-translating complex value chains for the eenablement of the state's key industry sectors- tourism, manufacturing and agriculture. There is no strategic initiative to assimilate ICT into key industries for growth Negeri Sembilan has strong value chains for its key industries. Leveraging on the synergy and interconnectivity from one to the other will allow the state to leap frog ICT empowerment for the Manufacturing industry ICT empowerment for the Tourism industry ICT empowerment for the Agriculture industry 1 NS Rakyat portal Smart homes Vision for ICT for Society To transform Negeri Sembilan into a society that has ubiquitous use of ICT
Source: IDC, 2010

Remarks

Recommendation

With plans to build a mechanism to proliferate ICT awareness and education the state will need programs to move towards ubiquitous use.

Access @ Negeri Sembilan

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IDCs Proposed Recommendations


In terms of the recommendations IDC has synthesized the initial recommendation list into key programs under specific themes. The figure below maps the key recommendations to the 4 growth development phases of education/awareness, infrastructure development, ecosystem development and growth capitalizations. This is done to highlight how each recommended program serves as a building block to enable the next phase and final attainment of ICT Vision.

FIGURE 29
Key Recommendations mapped to development phases

Source: IDC, 2010

With that in mind, IDC has also mapped the key recommended programs alongside the MSC Malaysia 2.0 clusters to showcase how the recommendations promote overall growth.

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TABLE 35
Key Recommendations mapped to MSC Malaysia 2.0
ICT-Industry Access @ Negeri Sembilan ICT-Enabler Fortify Industrial District with High Speed Broadband access and increase access to all Empowering SMBs with ICT access ICT-Society Capability Development Program for the Industry

NS 1st home program driven by Smart Homes

Total ICT Development for Society

1 NS Rakyat Portal ICT Empowerment for the Manufacturing Industry ICT Empowerment for the Tourism Industry ICT Empowerment for the Agriculture Industry
Source: IDC, 2010

The next part of the report details out the key elements of each of the proposed recommendations. It is important to note that each recommendation servers as a housing for smaller sub programs under the umbrella. The table below explains the contents.

SAM PLE
ICT Vision Details out how the recommendations ties back to the proposed ICT Vision of Negeri Sembilan and how that in turn maps to MSC Malaysia 2.0 Details which Major ICT Theme the recommendation falls under Highlights and describes the reason behind the recommendation Key objectives of the recommendation are put forth IDCs point of view in terms of the impact should there be successful implementation Action plans are the key subprograms or main programs form the overarching recommendations including a description on how these programs fit the overall recommendation, the key steps needed to execute and example programs

Major ICT Theme Description Objectives Impact Action Plan

KPI Targets

KPI list for the recommendations Measurement of KPIs

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SAM PLE
Timeline Key Stakeholders
Source: IDC, 2010

Short-term, Mid-term or Long-term Key players involved

IDC notes the following amendments from Jabatan Perancangan Bandar dan Desa Negeri Sembilan to supplement the recommendations. The use of technology encompassing access to broadband Internet and the establishment of rural community ICT centres are considered key efforts that should proliferate as an attempt to encourage and facilitate ICT as an Industry, ICT as an Enabler and ICT for Society. To boost the importance of the underlying ICT infrastructure, the National Physical Plan-2 (NPP2) outlines one (1) of eight (8) development themes that details the pivotal need to Providing Appropriate Infrastructure. This theme includes multimedia and communication as one of the keys infrastructure services. With regards to the above IDC sees synergies on the recommendations provided to the state and the existing growth efforts already in place.

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Capability Development Program for the Industry

TABLE 36
Capability Development Program for the Industry
ICT Vision 1) Vision for ICT for Society - To transform Negeri Sembilan into a society that has ubiquitous use of ICT 2) Vision for ICT as an Enabler - To be a local leader in crossing the digital chasm by etranslating complex value chains for the e-enablement of the state's key industry sectorstourism, manufacturing and agriculture. Includes skew towards enabling the government Major ICT Theme Description Digital Awareness, Industry Empowerment Given the poor/limited adoption of ICT in the industry, IDC is recommending this holistic and encompassing program as an effort to support the preparation of the industry to capitalize on the digital age. It emphasizes on addressing the digital divide allowing for the industry to move forward into the digital age Function as the fundamental layer of ICT education to the industry To allow tiered development allowing the advancement of skills To support the ICT enablement of key industry sectors of Negeri Sembilan (namely Manufacturing, Services and Agriculture) To eventually ready the state for the digital age Impact Promote the role and importance of ICT in the industry ICT savvy workforce Efficiency and productivity gains Bridge digital divide Empower the government staff to maximize the usage of ICT Action Plan ICT empowerment workshops (A.3.1-A, B.3.1-B) The ICT empowerment workshops are targeted at workers with existing ICT knowledge. The function of the workshop is to empower workers with tips and tricks for productivity gains. Leveraging on key tools related to industry line of business these empowerment workshops enable participants to gain tips on ICT usage to improve day to day operations. 1) Assess ICT competency levels of workers in chosen industries 2) Identify gaps and areas which can be improved for productivity gains 3) Identify lead instructors and release ICT empowerment workshop schedules 4) Measure productivity gains post workshop Example programs

Objectives

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TABLE 36
Capability Development Program for the Industry
1) Microsoft Excel Boot camp 2) Maximizing Microsoft PowerPoint for impactful presentations Tiered capability development programs (B.3.1-A) The introduction of tiered capability development programs addresses the constant issues of ICT development programs which are one-off and not progressive/developmental in nature. By introducing a tiered development program a worker in the industry will be able to register for courses according to set schedules and timeframe to allow progressive development closing the digital e-literacy gap. 1) Develop incremental/tiered ICT programs as a set of modules 2) Conduct a pilot study on the productivity gain as workers progress 3) Benchmark capabilities against industry standard Example programs 1) ICT 101 2) Basic Office productivity workshop 3) Intermediate Office productivity workshop 4) Advance Office productivity workshop Industry training programs (B.4.1-A) The core purpose of the industry training program is to establish a platform for ICT to permeate in the form of training programs to the industry. The current state of the industry does not permit the capitalization of ICT. With this program, key industries like Manufacturing, Services and Agriculture will be exposed to training programs which will support the enablement of ICT as a strategic tool for growth. 1) Identify the function and role of ICT to drive key industry sectors 2) Introduce programs based on the set goals of ICT 3) Measure and monitor practice from program implementation 4) Move, the SOP towards an ICT enablement environment Example programs 1) Basic ICT for workers in the Manufacturing industry 2) Basic ERP concepts 3) Specialization shop floor, Advance planning and scheduling, warehouse & distribution etc

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TABLE 36
Capability Development Program for the Industry
Pembudayaan ICT Kerajaan (B3.3-A) Pembudayaan ICT Kerajaan is a program aimed at educating through change management the ubiquitous use of ICT among civil servants. IDC is recommending this is as part of an action plan to allow the state government to reposition itself in the digital era. IDC sees this as pivotal as the current scenario indicates a lack of awareness and understanding on ICT. By addressing the issues, the state government will be better positioned to fully leverage on ICT 1) Identify the key issues that need to be addressed 2) Set up the first pilot and execute 3) Provide the necessary environment for trained personnel to assimilate to the new ICT culture 4) Move, the SOP towards an ICT enablement environment Example programs 1) ICT proficiency assessment on pilot group to understand current status 2) Change Management workshop to educate and ingrain use of ICT 3) Facilitation programs through ICT workshops KPI KPI 1: The smooth introduction of the Capability Development Program for the industry KPI 2: Total number of program run by key activity areas KPI 3: Total number of registered participants KPI 4: Evidence of progression KPI 5: Capability/Awareness levels Targets KPI 1: To launch 1 program for each key action plan by Mid 2011 as a test pilot KPI 2: 1 key activity per program per quarter KPI 3: Measured by industry cluster and representative of participation from number of organization (5%) KPI 4: 30% of those on tiered level courses indicate interest to pursue KPI 5: Measured by assessment and benchmarked from year to year with positive improvement Timeline ICT empowerment workshops (A.3.1-A, B.3.1-B) Short Term Tiered capability development programs (B.3.1-A) Mid Term

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TABLE 36
Capability Development Program for the Industry
Industry training programs (B.4.1-A) Mid Term Pembudayaan ICT Kerajaan (B3.3-A) - Short Term Key Stakeholders Jabatan Perkhidmatan Awam Institut Latihan Sektor Awam Negeri Institution of Higher Learning Private Institutions OSA
Source: IDC, 2010

FIGURE 30
Timeline and Action plan - Capability Development Program for the Industry

Source: IDC, 2010

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Total ICT Development for Society

TABLE 37
Total ICT Development for Society
ICT Vision 1) Vision for ICT for Society - To transform Negeri Sembilan into a society that has ubiquitous use of ICT 2) Vision for ICT as an Enabler - To be a local leader in crossing the digital chasm by etranslating complex value chains for the e-enablement of the state's key industry sectorstourism, manufacturing and agriculture. Includes skew towards enabling the government Major ICT Theme Description Digital Awareness, Industry Empowerment There is room for improvement with regards to the level of ICT literacy in Negeri Sembilan. The digital divide is partly caused by uneven growth development focused primarily on key development areas. The initiative for total ICT development is a societal development program in line with the state government's aspiration to equip the state human capital for the digital age. This holistic program looks at development from different key life phases, ensuring that ICT grows in parallel. IDC notes the importance of this recommendation as the readiness of a society greatly impacts eventual growth. Function as the fundamental layer of ICT education to the society ICT to prove relevancy across different phases of life To allow tiered development allowing the advancement of skills To narrow the digital divide To transform the human capital aligning to the State's vision Impact Bridge digital divide ICT a fundamental part of society ICT savvy human capital Efficiency and productivity gains Demand for ICT supply increases Ability to leap frog and leverage on the information based society Action Plan Public ICT awareness programs (C.1.1-B) IDC notes that Public ICT awareness programs are already ongoing -established and run by various stakeholders. The idea behind this recommendation is to have increase coordination across key stakeholders to have the ICT awareness programs to leverage of key ICT related awareness issues and stigma. For example instead of just promoting access to broadband addressing the fears on negative influences. Currently e-community centers have taken up efforts to offer basic ICT courses all the way to fundamentals of blogging. This blanket program will serve as a net which will allow under niche programs conducted by various stakeholders to take route and further progress ICT development.

Objectives

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TABLE 37
Total ICT Development for Society
1) Assess key stigma and perception limiting the adoption of ICT across the state 2) Work with key stakeholder to plan out a calendar of events to address these stigmas 3) Conduct outreach programs and benchmark Sample program 1) Demographic based demand- side research to understand key inhibitors limiting ICT adoption 2) Develop program content to run ICT awareness programs to address the inhibitors (example "The benefits of using the internet" , "ICT for all ages") ICT 101 program (C.4.1-A) The ICT 101 program functions as a clinic/lab to provide the first encounter of ICT to the society. The purpose of this program is to allow the society to be guided into establishing a positive first impression on ICT. This will be done primarily in rural areas. 1) Assess key areas which will benefit from the program 2) Plan for the clinic/lab with the support of community leaders 3) Conduct programs and benchmark Taska 2.0 @ Pre-school (C.3.2-A) This program is part of a developmental growth program complementing the state's formal education program. The idea is to equip pre-schools with relevant ICT content and infrastructure allowing for early exposure to ICT 1) Identify key pilot sites across Negeri Sembilan. 2) Provide facilities and training to the pilot sites 3) Develop Bespoke Curriculum 4) Conduct programs and benchmark Sample program 1) Learning A,B,C's and 1,2,3's using interactive multimedia content 2) Scope expansion incorporation for example when introducing communication tools incorporate the internet on top of the telephone ICT friends @ Primary School (C.3.2-B) This program is part of a developmental growth program complementing the state's formal education program. The idea behind this program is to develop programs

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which encourage primary school students to learn and leverage on ICT. This includes competitions, community portals, educational games, e-learning and others. 1) Identify key pilot sites across Negeri Sembilan. 2) Provide facilities and training to the pilot sites 3) Conduct programs and benchmark Sample programs 1) Creation of a ICT friends portal and encouraging schools to promote student participation 2) Introduction of ICT concepts through the portal 3) Promote discussion and innovation through stimulating topics 4) Quarterly workshops or events 5) Competitions to promote innovations (example Best PowerPoint presentation) Teen Zone 2.0 @ Secondary School (C.3.2-C) This program is part of a developmental growth program complementing the state's formal education program. The idea behind this program is to develop programs which encourage secondary school students to learn and leverage on ICT. This includes competitions, community portals, educational games, e-learning and others. Specific for teenagers ICT will also be used as a gateway to address societal issues. 1) Identify key pilot sites across Negeri Sembilan. 2) Provide facilities and training to the pilot sites 3) Conduct programs and benchmark Sample programs 1) Creation of a Teen Zone portal and encouraging schools to promote student participation 2) Introduction of ICT concepts through the portal 3) Promote discussion and innovation through stimulating topics 4) Quarterly workshops or events 5) Competitions to promote innovations (example Program design to address specific issues) IHL subject design (B.4.1-B & A.4.1-B) Moving on to tertiary education, the goal and function of this program is for the government to facilitate key discussions between IHLs and industry to formulate key

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Total ICT Development for Society
course development areas which can ready graduates to enter the workforce. 1) Identify key players/stakeholders and obtain buy in 2) Work towards common goals 3) Introduce the programs to the market 4) Benchmark the relevance Sample programs 1) Deep dive workshop to understand the gaps between graduates produced and expectation of the industry 2) Focus on tailored programs to address the gaps Warga Emas Warga Maju (WEWM) @ Retirement (C.3.2-D) This looks at addressing key unique needs of the senior citizens The idea behind this is to provide the right necessities to ensure relevance of ICT to this demographic segment. 1) Identify unique demand needs of the senior citizen (etc video conferencing to children) 2) Taylor content and run program Sample program 1) ICT 101 programs 2) Getting connected online programs 3) e-mail training programs 4) Device related training programs KPI KPI 1: The introduction of the Total ICT Development for Society KPI 2: Total number of program run by key activities KPI 3: Total number of registered students KPI 4: Evidence of progression KPI 5: Capability/Awareness levels Targets KPI 1: To launch 1 program for each key action plan end 2011 KPI 2: 1 key activity per program per quarter KPI 3: Measured as a ratio of 1 to 1000

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KPI 4: 30% of those on tiered level courses indicate interest to pursue KPI 5: Measured by assessment and benchmarked from year to year Timeline Warga Emas Warga Maju (WEWM) @ Retirement (C.3.2-D) - Mid term IHL subject design (B.4.1-B & A.4.1-B) Mid term Teen Zone 2.0 @ Secondary School (C.3.2-C) Mid term ICT friends @ Primary School (C.3.2-B) Mid term Taska 2.0 @ Pre-school (C.3.2-A) Mid term ICT 101 program (C.4.1-A) Short Term Public ICT awareness programs (C.1.1-B) Short Term Key Stakeholders Jabatan Perkhidmatan Awam Institut Latihan Sektor Awam Negeri Institution of Higher Learning Private Institutions OSA
Source: IDC, 2010

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FIGURE 31
Timeline and Action plan - Total ICT Development for Society

Source: IDC, 2010

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Fortify Industrial Districts with High Speed Broadband Access & increase access to all

TABLE 38
Fortify Industrial Districts with High Speed Broadband Access & increase access to all
ICT Vision 1) Vision for ICT as an Enabler - To be a local leader in crossing the digital chasm by etranslating complex value chains for the e-enablement of the state's key industry sectorstourism, manufacturing and agriculture. Includes skew towards enabling the government 2) Vision for ICT as an Industry - To be the first fully e-connected state in Malaysia by reinvigorating the local ICT industry through the establishment of a state wide digital portal. Major ICT Theme Description Broadband For All, Industry Empowerment The state of Negeri Sembilan is embarking on district level growth clusters as an initiative to increase the GDP contribution of the state. Jelebu for example is earmarked to focus on SMBs, Jempol for Agriculture, Tampin with the Feedlot center, Kuala Pilah for SMBs and cultural heritage, Rembau as a Halal hub, Port Dickson for Tourism and Seremban as an industrial hub. With that there are close to 30 Industrial parks in Negeri Sembilan with the bulk situated in Seremban. There are also existing plans by MCMC on Jempol for the digital Jempol initiative allowing for interconnectivity in the district, and there are also plans and efforts by the state government to fortify the west bank (along Port Dickson) for fortified growth. This recommendation looks to spread the broadband development and access to all industrial districts to support the enablement of ICT as a strategic enabler. It also looks to push for access throughout the state. Spread Broadband access to key industrial districts and to all across the state Enable the industrial districts with broadband allowing for innovation, creativity and growth Promote cross district enablement as opposed to just a few clusters ICT to permeate into the industry To narrow the digital divide To transform the human capital aligning to the State's vision Impact Fully "connected" state ICT a fundamental part of the district level ecosystem ICT savvy human capital Efficiency and productivity gains Demand for ICT supply increases Action Plan Establish a District Broadband council to grow broadband access in key areas (A.1.2-A) The idea behind this recommendation is to have local representatives form a council to drive for opportunities in broadband advancement into their district. This will ensure that the voice of the district is heard and coordinated development can be achieved. For this to be effective the demand for broadband must be apparent. The district level council

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TABLE 38
Fortify Industrial Districts with High Speed Broadband Access & increase access to all
will liaise with the state and other related stakeholders. Expand Public Private Partnerships (A.2.1-B) IDC sees this as a model to propagate the development of broadband in all areas. There are notable case studies where a state is able to fully connect all district and provinces because of the PPP model. In Negeri Sembilan the call is for the state to continue the existing efforts to spread broadband access. Sample programs 1) Benchmark current access and needs across all districts 2) Identify inhibitor to expanded growth and access in "high need" areas KPI KPI 1: The execution of the fortifying program KPI 2: Total number of industrial zones being connected KPI 3: Connectivity throughout the sate Targets KPI 1: To launch the study by mid 2011 KPI 2: 100% connectivity by 2015 for key industrial zones KPI 3: Broadband penetration in incremental Timeline Expand Public Private Partnerships (A.2.1-B) Mid to Long term Establish a District Broadband council to grow broadband access in key areas (A.1.2-A) Mid Term Key Stakeholders Local Municipals Local chamber of commerce Unit Pengurusan Teknologi Maklumat Unit Perancangan Ekonomi Negeri Private sector MCMC OSA
Source: IDC, 2010

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FIGURE 32
Timeline and Action plan - Fortify Industrial Districts with High Speed Broadband Access

Source: IDC, 2010

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Empowering SMBs with ICT access

TABLE 39
Empowering SMBs with ICT access
ICT Vision 1) Vision for ICT as an Enabler - To be a local leader in crossing the digital chasm by etranslating complex value chains for the e-enablement of the state's key industry sectorstourism, manufacturing and agriculture. Includes skew towards enabling the government 2) Vision for ICT as an Industry - To be the first fully e-connected state in Malaysia by reinvigorating the local ICT industry through the establishment of a state wide digital portal. Major ICT Theme Description Broadband for All, Industry Empowerment Over 90% of businesses in Malaysia are SMB type organizations. In Negeri Sembilan the dependency on the SMBs are obvious just as well. Taking into account key industries like the agriculture sector, it is the small cottage industries which collectively make up sizable contribution to the production levels of the state. As detailed out earlier, the Jelebu district is assigned status of a hub for SMB development, showcasing the importance of this business segment. Given IDCs findings, IDC recommends that one of the areas of focus is to be the empowerment of SMBs with ICT access. This recommendation looks at key programs which can be put in place as part of an overarching theme to ensure that the SMBs are able to move up the value chain Empower SMB with access to ICT as a whole including Broadband Productivity gains Narrow the digital divide Move SMBs up the value chain Impact SMBs are better equipped to grow ICT savvy human capital Demand for ICT supply increases Industries with high SMB participation see growth Action Plan ICT empowerment workshops (B.3.1-B) The ICT empowerment workshops are targeted at workers with existing ICT knowledge. The function of the workshop is to empower workers with tips and tricks for productivity gains. Leveraging on key tools related to industry line of business these empowerment workshops enable participants to gain tips on ICT usage to improve day to day operations. 1) Assess ICT competency levels of workers in chosen industries 2) Identify gaps and areas which can be improved for productivity gains 3) Identify lead instructors and release ICT empowerment workshop schedules 4) Measure productivity gains post workshop

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Empowering SMBs with ICT access
Example programs 1) Microsoft Excel Boot camp 2) Maximizing Microsoft PowerPoint for impactful presentations ICT Desa Program (B.1.3-A) The ICT Desa Program looks to leverage on the existing infrastructure of the community broadband centers enabling the execution of small scaled business ideas. IDC notes that this be a good stepping stone for startups which are exploring as the infrastructure is already in place. IDCs research points to existing community broadband centres already having established program sets to create awareness to the community and to supply basic ICT needs. That said the ability to maximize the infrastructure can be taken a step further. For example, establishing a business for web page design, or taking on contracts to maintain websites. 1) Identify core expertise within different e-community centers 2) Support the creation of a business plan for growth ** This program can also be run outside of an e-community centre as the purpose is to empower very small start-ups Subsidized PCs (C.2.2-A) & PC leasing program (C.2.2-B) IDC sees this more of an empowerment tool to lower the barriers to entry. While other models like low cost PCs have been introduced elsewhere, the nascent stage of ICT development in Negeri Sembilan does not permit this at the moment. The angle IDC is proposing is for the role of the government to facilitate the subsidizing of PCs prices, leasing programs and also to leverage on existing initiatives like the National Broadband Initiative. 1) State government to identify potential partners and to initiate discussion 2) State government to identify SMB clusters which need support 3) State government to establish support and growth model allowing for SMBs to leverage and grow. Sample programs 1) Establishment of Memorandum Of Understanding with possible stake holders. (For example leasing programs with private banks and One stop Agency) SMB empowerment through the provisioning of affordable broadband as well as other ICT infrastructure (B.2.1-A & B.1.1-B) Possible action items under this recommendation include the development of a Mini cybercentre to house the local SMBs providing access to key infrastructure. KPI KPI 1: Programs to be planned and executed

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Empowering SMBs with ICT access
KPI 2: SMB growth and contribution Targets KPI 1: At least 2 Empowerment Workshops by end 2011, At least 2 application for the CBC initiative, Formalize partnership KPI 2 : SMB contribution to the economy shows increase over the next 5 years KPI 3: Increase in PC Penetration Timeline SMB empowerment through the provisioning of affordable broadband as well as other ICT infrastructure (B.2.1-A & B.1.1-B) Mid term Subsidized PCs (C.2.2-A) & PC leasing program (C.2.2-B) mid term ICT Desa Program (B.1.3-A) Short term ICT empowerment workshops (B.3.1-B) Short term Key Stakeholders Private sector MCMC TM UPTM MDeC OSA
Source: IDC, 2010

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FIGURE 33
Timeline and Action plan - Empowering SMBs with ICT access

Source: IDC, 2010

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Access @ Negeri Sembilan

TABLE 40
Access @ Negeri Sembilan
ICT Vision Vision for ICT as an Industry To be the first fully e-connected state in Malaysia by reinvigorating the local ICT industry through the establishment of a state wide digital portal. Description The state of Negeri Sembilan is embarking on district level growth clusters as an initiative to increase the GDP contribution of the state. Jelebu for example is earmarked to focus on SMBs, Jempol for Agriculture, Tampin with the Feedlot center, Kuala Pilah for SMBs and cultural heritage, Rembau as a Halal hub, Port Dickson for Tourism and Seremban as an industrial hub. With the unique development of each district and the rise of infrastructure across the state, IDC notes the opportunity to create district level content to showcase the uniqueness of each district. The recommendation is for effort to be put in place to empower the development of district level content which will then be housed on a state wide portal. IDC notes the example done by Colarado state in developing a one stop state wide portal. The rationale behind this is two pronged; firstly it is expected to reinvigorate the ICT industry by creating a need for supply secondly on top of connectivity this initiative is seen as an enabler to reposition the state by introducing its uniqueness to the outside world Empower the development of district level content to be housed on a state wide portal Develop a state wide portal Rejuvenate the local ICT industry creating job opportunities Drive online traffic into the state with eventual implications on real terms Impact Job creation District visibility through key industries Demand for ICT supply increases First to have a integrated state wide portal Repositioning the state Action Plan Access at Negeri Sembilan is IDC vision of a state-wide portal for Negeri Sembilan. The key driver behind this is the necessity to create an ICT-I entry level point which is in line with the current strategic efforts of the state. By doing so, IDC sees the fueling of both supply and demand driven by content creation needed as the districts in Negeri Sembilan step up its niche areas of growth. District level content (B.1.4-A) The development of district level content is expected to come from varying forms. It can be as simple as creating a local webpage for a manufacturer to content used for e-trade or for virtual tourism. IDC expects the scale to grow in line with the development and access to the statewide portal. 1) Develop district level schema to map out key clusters and entities 2) Identify what should be e-translated to the net and why (example: Nilai as an

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TABLE 40
Access @ Negeri Sembilan
education valley already has all the major institutions website, but they are not interlinked. E-translating this could mean creating a one stop access page which introduces all institutions including user content such as testimonials, location centric content such as distance from one to the other etc) 3) House the content as part of a district level portal ** IDC notes that content creation will be a key to drive growth, for example in Felda settlements with minimal visibility, content creation can be in the form of the creation of educational content on life on the farm. This in turn will require manpower to drive interviews, create clips, edit etc) MSC Malaysia Incubator In line with the drive to create a state-wide portal IDC sees synergy in the application for the status of a MSC Malaysia Incubator in Negeri Sembilan. The nascent stage of development of this recommendation and companies to take up this initiative will benefit well from the establishment of an incubator. That said the focus should be in establishing the right set of companies that would benefit having an incubator. ** Incubator to house start-ups driven by Access @ Negeri Sembilan for example Creative Media and Content for the content creation for websites, Website development for the actual development of website and related technologies. IDC also notes the focus of Techpark@enstek and its focus to be a biotech hub for the region. IDC sees the possibility or parallel growth with adjacent ICT focused companies to support and empower the bio tech industry. MSC Malaysia Cybercentre In line with long term growth development, IDC sees the long term strategy to eventually develop a Cybercentre as part of a growth development plan for the ICT industry in Negeri Sembilan. This long term plan is subject to the development of the ICT industry in Negeri Sembilan. IDC notes that depending on the core focus of growth ,the Cybercentre can be positioned to support accelerated growth in the specific earmarked industries (example R&D for Biotechnology, Creative & Content development, Halal Manufacturing etc) ** It is important to note that while the Cybercentre provides access to the 10 Bill of Guarantees, there are criteria's and guidelines which need to be met. IDC cautions that plans to possibly develop must adhere to the guide under the 8 qualifying criteria's and Performance Standards. As such there needs to be close interaction with MDeC for the above. A snapshot of the 8 qualifying criteria's are as follow (1) Driven by state government and cybercity/cybercentre stakeholder (2) Broadband and infrastructure readiness (based on critical performance indicators) (3) Customer focused management with KPIs (4) Competitive environment to attract investment, nurture start-ups (5) Talent pool availability (6) Proximity and linkages to universities and research centres (7) Use relevant Flagship /e-Applications for service delivery (8) State ICT blueprint providing value propositions for local economy. The overall action plan looks at the eventual goal of having an e-connected state (Access@ Negeri Sembilan). That said, the connected platform is not seen as a means to the end as it is representative of maturity and reinvigoration of the entire ICT ecosystem as detailed above.

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Access @ Negeri Sembilan
In achieving the objective, IDC sees an action plan developed in phases. 1. District buy in This phase points towards the awareness and buy in from the different districts with regards to the end goal of developing a state-wide portal filled with rich district level content. 2. Identify niche clusters This phase looks towards the development of niche clusters of focus and the positioning of ICT as a key enabler 3. The incubation of technology companies to address the needs of the niche clusters to be run in parallel with the objective of establishing a MSC Malaysia incubator 4. The MSC Malaysia Cybercentre is a long-term plan to plan subject to the ability to create a vibrant ICT ecosystem. KPI KPI 1: Achieve buy in from districts KPI 2: Technology clusters of focus KPI 3: Cultivate technology development KPI 4: Virtualize all key components through district level content creation Targets KPI 1: Districts to give consent to support the program by end 2011 KPI 2 : To identify technology clusters of focus by each district allowing for focus KPI 3 : To develop and support the development of technology clusters through the establishment of a MSC Malaysia Incubator KPI 4: Content creation by key industry areas, measured by industry participation Timeline Access @ Negeri Sembilan (B3.4-A) Midterm to Long term MSC Malaysia Incubator- Midterm District level content - Midterm MSC Malaysia Cybercentre Midterm to Long term Key Stakeholders Private sector MCMC TM UPTM MDeC UPEN

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Access @ Negeri Sembilan
Source: IDC, 2010

FIGURE 34
Timeline and Action plan Access @ Negeri Sembilan

Source: IDC, 2010

The following segment is a supplement to the recommendations of Negeri Sembilan. With regards to establishing a MSC Malaysia Cyber Centre, focus needs to be given on the purpose of driving this initiative. IDC's overall recommendation sees the setting up of MSC Malaysia Cyber Centre as conditional given the growth of the industry. As explained in the situational analysis as well as the Gap report, the state of ICT in Negeri Sembilan is still in a nascent stage. With that, the goal of MSC Malaysia Cyber Centre cannot be the stepping stone for growth but rather a culmination of successful efforts and strategies to develop and further mature the ICT Industry. In assessing the readiness of the ICT industry of Negeri Sembilan it was apparent that there is currently no vibrant ICT ecosystem/industry. Effort first needs to be placed to develop hence the recommendation of Access @ Negeri Sembilan. In comparing the differences between a MSC Malaysia Incubator and a MSC Malaysia Cyber Centre, greater focus is put on supporting start up's (in this case the norm for Negeri Sembilan) to propel to the next state of ICT growth.

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NS 1st home program driven by Smart Homes

TABLE 41
NS 1st home program driven by Smart Homes
ICT Vision Vision for ICT as an Enabler To be a local leader in crossing the digital chasm by e-translating complex value chains for the e-enablement of the state's key industry sectors- tourism, manufacturing and agriculture. Description The close proximity of Negeri Sembilan to the central hub of Klang Valley uniquely positions the state as viable option as a second home or even as a first home. The concept of living in Seremban but working in KL/other places was introduced by the YB MB and continues to be a mantra for strategic growth planning. IDC sees the recommendation of the NS smart home as an icing on the cake with the proposed recommendations in place. The idea is to build smart homes which will eventually draw investors into the state. That said the development of the ecosystem which enables the industry will be key. GDP growth contribution Rejuvenate the local ICT industry creating job opportunities Position Negeri Sembilan as a preferred state to reside Known as a "Smart State" Impact Job creation GDP contribution Demand for ICT supply increases Action Plan Establishment of smart homes (C.1.2-A) To enable the establishment of smart home concept, IDC notes that the identification of the best possible location to start a smart township to be essential. That said, efforts taken by the Sime Darby group to establish a Vision City in Negeri Sembilan to be a key example of the possibility for growth and demand. It is to that, that establishing smart partnerships with developers will be a pivotal task. With the fundamentals in place the design of the smart home can take the front seat. In terms of sequence, IDC notes the following as essential 1) Asses possibility to pursue initiative by leveraging on existing initiatives 2) Establish value chain and identify key entities and partners 3) Build capacity 3) Awareness programs KPI KPI 1: Establish zone for smart homes KPI 2: Establish key partnerships KPI 3: Industry invigoration

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TABLE 41
NS 1st home program driven by Smart Homes
KPI 4: Take up of Smart Home Targets KPI 1: Earmark primary zones offering low cost but ability to attract investors KPI 2: Identify key partners of the value chain and establish gives & gets to ensure success KPI 3: Build capacity by leveraging on interlinked programs like the incubator program KPI 4 : Incremental growth on occupancy Timeline Key Stakeholders Establishment of smart homes (C.1.2-A) -midterm Private sector MCMC TM JPBDD MDeC UPEN
Source: IDC, 2010

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1 NS Rakyat Portal

TABLE 42
1 NS Rakyat Portal
ICT Vision Vision for ICT as an Enabler To be a local leader in crossing the digital chasm by e-translating complex value chains for the e-enablement of the state's key industry sectors- tourism, manufacturing and agriculture. Includes skew towards enabling the government. Description The program establishes a connected environment in which the government and citizens would be able to interact and share knowledge. The portal will also serve to attract ideas, suggestions of improvements and complaints of the citizens in the state. The idea is to promote a more citizen centric government as citizens are empowered to speak up and contribute. Taking into account existing portals and websites, the idea is to consolidate and to increase relevance to the citizens empowering web 2.0 technologies for use in text analytics and beyond. To enhance the e-Government initiative allowing for citizens to play an active role in contribution to ideas and development To boost interaction between local citizens and State Improved perception on government. Impact Ease of convenience for public Establishment of an e-Citizen centric government. Improved accessibility to information. Action Plan Rakyat 2.0 portal (B.2.2-A) Leveraging on the current government website infrastructure, the page will be gradually transformed using web 2.0 techniques to gain participation from citizens. The current official state portal has strong functions but most are features which are part of other initiatives for example One Stop Agro Portal, public complaints, online payments etc. The idea behind this initiative is to empower citizen with a user interface akin to what is common in web 2.0 applications enabling transformation of Government to Citizen communication via web. In the awareness stage the idea is to gauge the kind of content which will be relevant to the citizens as well as current level of following on the state portal. The awareness stage will work in line with transformation as the page gradually transforms to add features such as live chat, eforums and others. KPI KPI 1: Enhancement of current portal KPI 2: Satisfaction/feedback survey for portal enhancement KPI 3: Citizen participation Targets KPI 1:To start enhancement by mid 2012 KPI 2: Bi-annual satisfaction survey on portal KPI 3: Assuming broadband penetration rate as number of citizens by 2015

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TABLE 42
1 NS Rakyat Portal
Timeline Key Stakeholders Rakyat 2.0 portal (B.2.2-A) midterm SUKNS UPTM
Source: IDC, 2010

FIGURE 35
Timeline and Action plan 1 NS Rakyat Portal

Source: IDC, 2010

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ICT Empowerment for the Manufacturing Industry

TABLE 43
ICT Empowerment for the Manufacturing Industry
ICT Vision Vision for ICT as an Enabler To be a local leader in crossing the digital chasm by e-translating complex value chains for the e-enablement of the state's key industry sectors- tourism, manufacturing and agriculture. Includes skew towards enabling the government Description With the other fundamental programs in place the next step is to capitalize on the strong fundamentals to impact the growth of the key industry sectors. For the manufacturing sector the goal is to improve the overall value chain addressing it from a fundamental level of automation to operational efficiency. With regards to automation, the goal is to leverage on the growing adoption of ICT infrastructure and supplying the necessary automation framework to support growth. From an operational efficiency stand point the goal is to progress the manufacturers forward with key frameworks supporting key techniques for efficiency gains. To propel growth in key the manufacturing sector by means of ICT utilization as a growth enabler To promote the permeation of ICT into the industry coupled with increased demands Impact Action Plan Increased GDP contribution (1) Automation The goal of automation is to introduce ERP type software that enables manufactures to take the first step beyond the basic adoption of ICT. As an encompassing plan to support the proliferation and growth of ICT, IDC recommends the adoption of solutions with lower barriers to entry (for example opensource solutions). The no frills model allows smaller businesses to avoid vendor lock in while still being able to experiment in achieve automation gains. The nature of the open source model also supports the growth of the ICT-industry as local integrators and developers emerge. In terms of process. IDC notes the following as key: 1) Identify solution to impact the manufacturing sector in need of automation. 2) Build awareness and demand by means of educational workshops 3) Prepare groundwork by working with solution providers 4) Build local ecosystem 5) Achieve automation gains and repeat process with other solutions or once mature move towards more full fledge solutions with best practices. (2) Operational Efficiency With IT driven automation as a standard across local manufacturers the move is next to enhance operational efficiency through the introduction of frameworks and best practices. One possible area of gain can be established through the introduction of Computer Integrated Manufacturing (CIM). Given Negeri Sembilan's strong focus on the E&E industry, the introduction of an industry wide framework for Computer Integrated Manufacturing will enable the vast approach to optimize manufacturing plans for efficient and cost effective production, from the smallest level of granularity to the broadest facility planning tasks. The proposed

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ICT Empowerment for the Manufacturing Industry
approach is to enable the industry by the design and implementation of the CIM framework. In terms of an action plan, IDC notes the following as key: 1) Identify requirements and set up key components required within CIM 2) Establish technical teams that will be responsible for the management and monitoring of CIM framework 3) Conduct CIM training and awareness sessions for manufacturing personnel KPI Automation KPI KPI 1: Identify solution offering for automation KPI 2: Awareness and demand generation KPI 3: Ecosystem enablement KPI 4: Adoption Operational Efficiency KPI 5: Identify solution design for CIM offering KPI 6: Awareness and demand generation KPI 7: Ecosystem enablement KPI 8: Adoption Targets KPI 1: Selection of solution offering to be propagated KPI 2: Complete at least 1 awareness campaign per quarter KPI 3: Identify, enable and house ecosystem. (5 developers/integrators) KPI 4: Incremental adoption by 10% year on year based on base with no solution KPI 5: Identify combination offering that best suites the local manufactures KPI 6: Complete at least 1 awareness campaign per quarter KPI 7: Identify, enable and house ecosystem KPI 8: Incremental adoption Timeline Awareness and demand (midterm) Build local ecosystem (midterm) Key Stakeholders FMM

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ICT Empowerment for the Manufacturing Industry
NSIC Private sector MIDA UPTM
Source: IDC, 2010

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ICT Empowerment for the Tourism Industry

TABLE 44
ICT Empowerment for the Tourism Industry
ICT Vision Vision for ICT as an Enabler To be a local leader in crossing the digital chasm by e-translating complex value chains for the e-enablement of the state's key industry sectors- tourism, manufacturing and agriculture. Includes skew towards enabling the government Description With other fundamental programs in place the next step is to capitalize on the strong fundamentals to impact the growth of the key industry sectors. IDCs research points to the tourism sector playing a pivotal role to the overall development of the services sector for the state. As such it is essential that the state puts strong focus on the e-enablement of this industry. That said, IDC notes the current limitations of Negeri Sembilan namely the lack of a direct access route to key tourism zone Port Dickson via alternative transportation models. Under the assumption of possible infrastructural changes IDC notes the next phase of development as the capitalization on the e-enablement of the tourism value chain. The end goal for this subsector is to increase the number of tourist and to encourage as much spend as possible. In terms of an action plan, the empowerment of this subsector is two pronged. First being the 1 NS Tourism Tri-Connect which looks at connecting and giving information access to the tourist and 1 NS Tourism Growth Backbone which looks at maximizing the average spend of a tourist. Objectives To propel growth in the tourism subsector by means of ICT utilization as a growth enabler To effectively send and receive information to and from tourist. To promote the permeation of ICT into the industry coupled with increased demands Impact Increased GDP contribution Increased number of tourist Increase average spend per tourist Increased customer satisfaction Action Plan (1) 1 NS Tourism Tri-Connect The goal of 1 NS Tourism Tri-Connect is to promote information dissemination and feedback collection from tourist. IDC believes this to be pivotal as it promotes a sense of connection to the state and also serves as a feedback mechanism for the state in its endeavor to improve. IDC sees 3 pivotal connection points which can be enabled by ICT. (a) Remote Information Kiosk These are interactive Kiosk which serves as a mechanism to educate and promote key tourist attraction. Relevant content development is pivotal to ensure information is clear and useful. (b) Tourism web portal The getaway to everything Negeri Sembilan built to entice with rich information and content. IDC sees this as a key point of improvement as the current portal has limited content, features and function. Given the state's strong emphasis on tourism emphasis is needed to take the portal to the next level. (c) Feedback mechanism With the core function to enable tourist to provide

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ICT Empowerment for the Tourism Industry
feedback to the relevant authorities in both a manual and electronic form. In terms of an action plan to implement, IDC notes the following process: (1) Identify key tourism products/activities and attractions across the state (2) Build and promote local awareness (3) Build localize content to best represent the key Tourism features (4) Transform the Tourism portal (5) Identify and populate Information Remote Kiosk's and Feedback mechanisms (2) 1 NS Tourism Growth Backbone The goal of the 1 NS Tourism Growth backbone is to e-enable the tourism value chain to allow a seamless online experience for prospects looking to visit the state. This backbone also serves as repository for the enablement of other features listed under the 1 NS Tourism TriConnect program. This growth backbone also leverages on the Access @ Negeri Sembilan state wide portal. IDCs recommendation is based on the need for Negeri Sembilan to be able to intelligently connect the missing dots in terms of tourism attractions. This is important as the state needs to maximize gain in other tourist activities and attractions alongside Port Dickson. IDC notes the following as key action plan (1) Identify key tourism products/activities and attractions across the state (2) Build and promote local awareness (3) Build localize content to best represent the key Tourism features (4) Connecting the current value chain and e-enable it. KPI 1 NS Tourism Tri-Connect KPI 1: Identify core tourism activities/attractions KPI 2: Identify key placement areas for kiosks KPI 3: Develop content KPI 4: Connect all points 1 NS Tourism Growth Backbone KPI 5: Identify core tourism activities/attractions KPI 6: Develop local content KPI 7: Examine and connect local value chain KPI 8: E-enable local value chain

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ICT Empowerment for the Tourism Industry
Targets KPI 1: Database of chosen state attraction KPI 2: Mark designated zones in each district KPI 3: Leverage on local talent to develop local content (create 2-3 working clusters per state) KPI 4: 100% connection from key attraction (2012) KPI 5: Identify core tourism activities/attractions KPI 6: Leverage on local talent to develop local content (create 2-3 working clusters per state) KPI 7: Map out a complete value chain with intelligent areas of relationship drawn KPI 8: E-enable the value chain in 3 key phases Timeline Identify key attraction (Short term) Build local content (Short to Midterm) Enable local ecosystem (Short to Midterm) Infrastructure readiness (Short term) Value chain creation ( Short to Midterm) Key Stakeholders Tourism Negeri Sembilan NSIC Private sector UPTM UPEN
Source: IDC, 2010

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ICT Empowerment for the Agriculture Industry

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ICT Empowerment for the Agriculture Industry
ICT Vision Vision for ICT as an Enabler To be a local leader in crossing the digital chasm by e-translating complex value chains for the e-enablement of the state's key industry sectors- tourism, manufacturing and agriculture. Includes skew towards enabling the government Description With other fundamental programs in place the next step is to capitalize on the strong fundamentals to impact the growth of the key industry sectors. IDC notes that there is already an existing one stop agro portal an initiative by MoA with a focus to facilitate information request and applications of citizens with regards to the programs offered under the jurisdiction. IDC is proposing to take a step forward by empowering the agriculture industry through the further development/enhancement of an online agriculture portal that focuses on providing access to vital information and to enable networking among stakeholders. In terms of focus, IDC envisions the portal to address the following demands (1) Disseminate information on Best Practices to facilitate the growth and development of practitioners (2) Knowledge bank as a repository of key information from federal and related agriculture based agencies (3) E-marketplace to facilitate the sales and promotions within the community Objectives To propel growth in the agriculture subsector by means of ICT utilization as a growth enabler To effectively disseminate and share information among practitioners To promote the permeation of ICT into the industry coupled with increased demands Impact Increased GDP contribution Improved crop yield Action Plan While the portal has 3 key service offerings, IDC notes that the action plan will require the following (1) Awareness and capability development (2) Portal development (3) Information upload (4) E-marketplace development KPI KPI 1: Amount of Content upload KPI 2: Number of awareness campaigns KPI 3: Percentage of annual increase of website hits

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ICT Empowerment for the Agriculture Industry
KPI 4: Percentage of annual increase of sales volume via the electronic market KPI 5: Agriculture sectors GDP contribution Targets KPI 1: Increase by 10% on content upload annually KPI 2: 2 awareness campaigns annually KPI 3: 5 % of annual increase of website hits KPI 4: Positive annual increase of sales volume via the electronic market KPI 5: Increased sectors GDP contribution Timeline Build awareness (Short term) Develop portal (Short term) Information upload (Short term) e-marketplace (Short term to Midterm) Key Stakeholders Ministry of Agriculture Persatuan Peladang NS Private sector UPTM UPEN
Source: IDC, 2010

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Recommendations Timeline
ICT as an Enabler

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ICT as an Industry

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ICT for Society

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Program Costing
Costing Assumptions

This section covers the costing breakdown and components for the recommended programs in the Negeri Sembilan ICT Blueprint. Costing Assumptions All costing figures given here are strictly estimates for budgetary purposes only. In most scenario the costs are taken as a mean across vendors and solution and are derived from 2008 published list price or in comparison to IDCs research database No cost of physical infrastructure was taken into consideration IDC would expect the costing figures to possibly vary greatly depending on the solutions / vendors eventually selected by the Negeri Sembilan state government Other costs (customization, interface, additional modules, etc) including recurring costs (annual license fees, maintenance support, etc) may vary according to the needs. The overall financial investment for each initiative is broken down into the following cost elements (Services: Cost related to the manpower efforts of the Vendors/Implementers to implement the ICT Initiative, Hardware: Cost related to the equipment such as server, network, desktops, Software: Cost related to the specific software, application, licenses) The table below highlights the estimated costing for the recommended programs:

TABLE 46
Cost breakdown for key programs
Recommended program Capability Development Program for the Industry ICT Empowerment workshops 100% services in the form of fees to the training company appointed to execute the program 100% services in the form of fees to the training company appointed to execute the program 100% services in the form of fees to the training company appointed to execute the program 100% services in the form of fees to the training company appointed to execute the program 600,000 Costing Components Total Costing (RM)

Tiered Capability development programs

600,000

Industry training programs

600,000

Pembudayaan ICT Kerajaan

450,000

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Cost breakdown for key programs
Recommended program Total ICT Development for Society Public ICT awareness program 100% services in the form of fees to the training company appointed to execute the program 100% services in the form of fees to the training company appointed to execute the program Includes the provisioning of Hardware in the form of upgrades or new installations, Software for running elearning programs and services for support, installation and training. Hardware - 60% Software -15% Services - 25% ICT Friends @ Primary School Focus is on software and e-services Software -40% Services-60% Teen Zone 2.0 @ Secondary School Focus is on software and e-services Software -40% Services-60% IHL Subject Design 100% services in the form of fees to engage and produce relevant material 100% services in the form of fees to engage and produce relevant material 855,000 745,000 610,500 750,000 Costing Components Total Costing (RM)

ICT 101 Program

600,500

Taska 2.0 @ Pre-School

1,150,000

Warga Emas Warga Maju (WEWM)

525.500

Fortify Industrial Districts with High Speed Broadband Access & increase access to all Establish a District Broadband council Expand public private partnership Empowering SMBs with ICT access ICT Empowerment workshops 100% services in the form of fees to the 600,000 N/A N/A

N/A

N/A

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TABLE 46
Cost breakdown for key programs
Recommended program Costing Components training company appointed to execute the program ICT Desa Program Provisioning of seed money to support initiatives Based on a RM 1000 subsidy per desktop PC 54,000 Total Costing (RM)

Subsidized PCs & PC Leasing program SMB Empowerment through the provisioning of affordable broadband as well as other ICT Infrastructure Access @ Negeri Sembilan District level content

1,000,000

100,000

Empowerment on job creation to kick start the content development across Negeri Sembilan. 100% services Hardware - 60% Software -15% Services - 25%

400,000

MSC Malaysia Incubator

570,000

MSC Malaysia Cybercentre

Hardware - 60% Software -15% Services - 25%

755,300

NS 1st home program driven by Smart Homes

Hardware - 50% Software -20% Services - 30%

1,250,000

1 NS Rakyat Portal

Hardware - 30% Software -25% Services - 45%

1,100,000

ICT Empowerment for the Manufacturing Industry Automation program 95% services to train, develop and acquire related skills. 95% services to train, develop and 505,300

Operational Efficiency

1,105,000

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TABLE 46
Cost breakdown for key programs
Recommended program Costing Components acquire related skills. ICT Empowerment for the Tourism Industry 1 NS Tourism Tri-Connect Hardware - 50% Software -20% Services - 30% 1 NS Tourism Growth Backbone Hardware - 30% Software -25% Services - 45% ICT Empowerment for the Agriculture Industry Agro Portal Hardware - 30% Software -25% Services - 45%
Source: IDC, 2010

Total Costing (RM)

1,920,000

1,200,000

850,000

Sources of Funding

A key element to consider is the funding mechanism which supports the attainment of the proposed recommendation. Funding for the recommended programs could be derived from government funding or co-operation between private and government bodies. Some of the proposed methods of the state project funding are: Public Funding: Funding provided by State or Federal Government; Public Private Partnerships: Funding is provided and operated through a partnership of State Government and one or more private sector companies Private Funding: Finding solely provided by the private sector.

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Funding model for key programs
Recommended program Capability Development Program for the Industry ICT Empowerment workshops Public Private Partnership Collaboration between the state government and the private sector to empower the local industry through proficiency workshops. The partnership with the private sector can be established based on the type of empowerment programs. (example if it is on Office productivity the partnership could possibly be with Microsoft and its partners) Collaboration between the state government and the private sector to empower the local industry through a long term tiered capability program. Likely candidates would be private institutions with established courses to offer Collaboration between the state government and the private sector to empower the local industry through industry specific programs (possible coop with FMM as an example) Direct public funding for the development of the public sector (Possibility to also leverage on vendors wanting to penetrate into the public sector space) Funding Model Remarks

Tiered Capability development programs

Public Private Partnership

Industry training programs

Public Private Partnership

Pembudayaan ICT Kerajaan

Public Funding

Total ICT Development for Society Public ICT awareness program Public Private Partnership Collaboration between the state government and the private sector to increase ICT awareness of the public through workshops. Focus on roping multiple partners from private sectors especially technology companies ( IDC notes existing efforts by MCMC through its CBC programs as an avenue as well) Collaboration between the state government and the private sector to increase ICT awareness of the public through workshops. Focus on roping multiple partners from private sectors especially technology companies ( IDC notes existing efforts by MCMC through

ICT 101 Program

Public Private Partnership

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Funding model for key programs
Recommended program Funding Model Remarks its CBC programs as an avenue as well) Taska 2.0 @ Pre-School Public Private Partnership This is a state government initiative which can further enhance efforts by the ministry of education. The private sector element stems from the interest to support country development from the grassroots. The state government can encourage the development while letting the private sector to put together the infrastructure and programs Focus is in creating interest on ICT beyond basic usage. The PPP model is chosen as technology giants tend to have similar programs in place as part of an effort to evangelize product offerings Focus is in creating interest on ICT beyond basic usage. The PPP model is chosen as technology giants tend to have similar programs in place as part of an effort to evangelize product offerings This is seen as alignment to keep abreast with latest industry development. The redesign strategy is to ensure students are industry ready. IDC assumes Private funding as an effort to meet changing market dynamics. Collaboration to reach out to the senior citizens. This will require support from the private sectors especially in terms of technology and knowhow. IDC sees synergy for the private sector as it focuses on introducing products which address the demographic need.

ICT Friends @ Primary School

Public Private Partnership

Teen Zone 2.0 @ Secondary School

Public Private Partnership

IHL Subject Design

Private Funded

Warga Emas Warga Maju (WEWM)

Public Private Partnership

Fortify Industrial Districts with High Speed Broadband Access & increase access to all Establish a District Broadband council Expand public private partnership Empowering SMBs with ICT access ICT Empowerment workshops Public Private Partnership Collaboration between the state government and the private sector to N/A N/A

N/A

N/A

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Funding model for key programs
Recommended program Funding Model Remarks empower the local industry through proficiency workshops. The partnership with the private sector can be established based on the type of empowerment programs. (example if it is on Office productivity the partnership could possibly be with Microsoft and its partners) ICT Desa Program Subsidized PCs & PC Leasing program Public Funded Public Private Partnership Grants/seed money to support startups Government role is to facilitate discussion and to create need for the private sector to respond. IDC notes initiatives already underway though the National Broadband Initiative. One source of avenue is the tradeoff between facility set up of manufactures and subsidies on PCs Combination programs allowing for the public sector to support the growth of SMBs. This may include seeding funds.

SMB Empowerment through the provisioning of affordable broadband as well as other ICT Infrastructure Access @ Negeri Sembilan District level content

Public Funded

Public funded

Funding for job creation allowing for the development of the ICT industry as well as the development of local district based content The focus from the private sector could be the ownership of being the incubator manager and from the public sector the provisioning of a site. The incubator can be a synergy between state government and incubator manager or purely private funded The focus from the private sector could be the ownership through the one stop agency and from the public sector the provisioning of a site. The cybercentre can be a synergy between state government and OSA or purely private funded The government to lead the initiative and awareness and the private sector

MSC Malaysia Incubator

Public Private Partnership

MSC Malaysia Cybercentre

Public Funded

NS 1st home program driven by Smart Homes

Private Funded

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Funding model for key programs
Recommended program Funding Model Remarks leads on the R&D and manufacture 1 NS Rakyat Portal Public Funded The government to build the portal as a direct initiative to reach to the rakyat

ICT Empowerment for the Manufacturing Industry Automation program Public Private Partnership The public sector to initiate the adoption campaign and the private sector to support in terms of technical knowhow and introduction of solutions The private sector to provide the skills and R&D to supply the necessary framework for the development of the industry

Operational Efficiency

Public Private Partnership.

ICT Empowerment for the Tourism Industry 1 NS Tourism Tri-Connect Public Funded The government to invest in the necessary infrastructure to enable a stronger tourism experience (possible tie in should the private sector decide to invest in pilot sites through Technology Adoption Programs (TAP) using new technologies) The government to invest in the necessary infrastructure to enable a stronger tourism experience

1 NS Tourism Growth Backbone

Public Funded

ICT Empowerment for the Agriculture Industry Agro Portal Public Funded The government to source for funding to design and develop the portal

Source: IDC, 2010

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Governance Model
This section will highlight the recommended governance structure to oversee the ICT development and implementation for the state of Negeri Sembilan. The ICT governance structure consists of the roles, responsibilities, and processes to be undertaken by state agencies, in managing and rolling-out key ICT initiatives in the state. In discussing a generic governance framework for good practice, the following are indicators of good practice in relation to aligning key activity with strategy; Establishment of an over-arching Information Communications Technology (ICT) Steering Committee tasked with the implementation of ICT strategies, projects and initiatives in the state Representation of all significant stakeholders on this committee All significant projects, IT and information systems will be approved by steering committee or higher It is crucial to note that ICT governance is an on-going process of monitoring and evaluating goals against overall strategic objectives. With that said, there is no "simple" manner of which to implement a governance framework or structure for the state, as it requires high level buy-in and support for full fledged implementation.
Current model

As detailed out in the Gap Analysis, IDCs take on the current scenario highlights the below as key areas of concern. Ground level execution limited to SUKNS Unit Pengurusan Teknologi Maklumat (UPTM) is the key ground level driver to execute ICT related programs. That said, its primary role is under the purview of the SUKNS. IDC has reference to community level initiatives which saw participation but overall the jurisdiction is limited to that scope. Public Access to Mechanism - As highlighted in the situational analysis, the permeation of ICT to the society is pivotal. Depending on private sector initiatives alone will skew the societal growth based on vendor programs. At current the public has no clear access to the state mechanism as there is no key point of contact. Absence of a Champion Based on IDC research, there is no champion to drive all ICT related programs for the state. This inherent problem will lead to a disconnect with the objectives of propagating the idea behind MSC 2.0. The current mechanism has only empowered UPTM to support the drive for the public sector Permeation of ICT into the industry In referencing the current state mechanism the permeation of ICT into industry will not be possible or concrete as the model only allows for industries to be reactive as opposed to being proactive. The

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presence of the different industry segments only allow for dialogue but with no clear ICT vision in mind Limited growth programs The current mechanism structure does not permit nor enable mass growth and adoption of ICT as there is no clear guideline as well runner to achieve. Senior Management Support Because of the lack of visibility and follow thorough for ICT, obtaining Management buy in on plans continues to be an issue needed to be addresses.

FIGURE 36
Structure of Stakeholders in State ICT Development

Source: UPTM, 2010

The structure above showcases the NSICTC to be the main committee in viewing ICT initiatives in the state and is chaired by the Menteri Besar of Negeri Sembilan. This is the premier committee which is to function as the voice of ICT for the entire state with the key role on the overall strategic planning and coordination. The next level sees the JPICTNS as next in the chain of command. Based on research, IDC notes that the core focus of this committee is to emulate the same focus and planning as with the NSICTC but for the state government body.

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With that observation, IDC notes a disconnect with regards to the execution for state wide ICT initiatives. This point is driven home by virtue of the NSICTC having not convened since 2008. IDCs research points to the absence of a blueprint to drive a holistic view of ICT to the state as the culprit. It is noted that the diverse makeup of the committee has in past led to a dilution for the true meaning and purpose of the committee meetings as periphery issues to ICT will also be a topic of discussion. Taking a peek into UPTM, IDC notes that this becomes the right hand of the JPICTNS as key public sector initiatives are driven by UPTM.
Proposed Model

In order to implement ICT projects moving into the future, Negeri Sembilan requires strong support and leadership from the state government to drive these initiatives. The nature of the recommended programs which are far reaching and broad beyond just the public sector requires a relook into the current state ICT mechanism. The following is the recommended governance structure for the state ICT implementation committee with a snapshot on possible key members.

FIGURE 37
Proposed new structure in State ICT Development

Source: IDC, 2010

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With the above model the Negeri Sembilan ICT council (NSICTC) takes on an additional role being the MSC Malaysia committee. IDC has proposed this due to the current function and scope of the NSICTC which looks at overall ICT development for the state. While the NSICTC assumes the additional role as the MSC Malaysia committee that is not to say that the membership make up cannot be expanded, especially given the current active role of the JPICTNS. The makeup of members beyond admittance by default is up to the committee itself. IDC sees strength in leveraging on NSICTC due to its strong strategic leadership and purview which aligns to the direction of MSC Malaysia 2.0. Expanding from the state MSC Malaysia Committee, initiatives are further broken down based on the 3 key clusters of MSC Malaysia 2.0, ICT as an Industry, ICT as an Enabler and ICT for Society. For each there is a lead agency and a set of key partners working in tandem. It is important to note that the One-Stop-Agency is responsible for overall growth, success and accountability of the MSC Malaysia 2.0 initiatives. The proposed lead agency for ICT-E is both UPEN and the OSA. With key partners including industry players, JPBD, MoA and others. This diverse base is due to the broad set of enablement initiatives from Broadband to public sector to key industries like Tourism and Agriculture. For ICT-I, the OSA is proposed as the lead agency due to the heavy nature and dealings with external vendors especially with the proposal for Access @ Negeri Sembilan. Key partners include UPTM for its major focus on public sector ICT and industry players. For ICT S the OSA will be working closely with the education fraternity as well as agencies and partners looking to further develop the human capital of Negeri Sembilan. As part of the recommendation, IDC is highlighting the importance of the MSC Malaysia One-Stop-Agency as a proposed entity that oversees and ensures proper management of all ICT Projects. The major tasks include coordinating the demands, resources and efforts of the state stakeholders in ascertaining that ICT projects are delivered on time, in an effective and efficient manner. Part of the objective of the One-Stop Agency is to ensure that it takes the lead as the key liaison to both external and internal parties (example Telco's and local government authorities). Along with that, revenue generation is a also a pivotal role tasked to the One-Stop-Agency. Since the concept of the One-Stop-Agency has been approved by Cabinet, in terms of structure it is important to note that the appointed agency needs to adhere to the following criteria The entity is to be incorporated under the Companies Act 1965, in which the State Government holds a minimum of 30% interest. IDC notes that the 30% is a minimum but for the state to have greater control and leverage it would be wise to have a higher stake in the entity. Officially endorsed by the State Government to drive the development, management and operation of all MSC Malaysia Cybercities / Cybercentres in a

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state. IDC notes the importance of this statement as the OSA alleviates the risk to the state when it comes to the implications of non adherence to the supply of the 10 (Bill of Guarantees) BoGs. Minimum paid-up capital of RM250,000 Last but not least, the critical enablers are proposed to continuously play a pivotal role to the ecosystem as it serves as the underlying layer of continuous development especially on the infrastructure side.

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