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Statement by Dr Tan Seng Giaw, DAP Nartional Vice-Chairman and MP for Kepong on the Malaysian Government giving RM 325 million to Multimedia Development Corporation, MDC. 8.11.2000

The Malaysian Government creates Multimedia Development Corporation, MDC, to develop the Multimedia Super Corridor, MSC. Is MDC up to the job?

Information and communications technology, ICT, develops so fast that MDC has difficulties in keeping pace with it. Basically, Malaysia is the user not the producer of ICT. Nevertheless, we have no choice but to make the best of ICT and the whole host of related things such as k-economy and e-commerce.

Hitherto, Malaysian Government gives MDC RM 177.5 million as equity and RM 147.5 million as loan. In turn, MDC should strive to be self-sufficient. It tries to create a world-class multimedia atmosphere, attract international media companies, assist local companies, develop human resources, smart schools, e-government, telemedicine and so forth.

ICT and its related things are important. So, MDC has an onerous task. While remaining sincere in its objectives, it should never allow bureaucracy. Will it be able to help produce international products that will form an important part of Malaysian economy?

It is a good sign that the Finance Ministry is setting up a special agency to coordinate the development of venture capital. In the 2001 budget, it sets aside RM 500 million for ICT venture capital. We hope that venture capital companies will have no encumbrances and that they will produce ICT products.

The Government intends to develop phase one of an e-village in an area of 240 hectares. E-village will promote creative multimedia industry including film. We hope it will be meaningful.

We note that MDC has yet to have promising R & D, without which it cannot justify its existence. In 1997, it spent RM 10 million on R & D. In 2000, the expenditure goes up to RM 74 million. Yes, there is more money. Although it is still a paltry sum, do we see a promising R & D?
Still, we need experts for R & D.

The 2001 budget gives incentives such as exemption of taxes on two years' earning overseas for those Malaysian experts who return home. These may not be enough to attract experts. Is there a conducive atmosphere? Are we able to keep those who are in the country?

In fact, developed countries compete to get foreign experts for their various fields. For example, our neighbour, Singapore, has been taking our students at various levels and experts. For many years, the United States of America is the biggest recipient of foreign experts. Look at her Silicon Valley, the world's leading centre of ICT. There are many foreign talents there.

Many findings in research are not commercially viable. It takes certain type of people to understand this. Does MDC have these people? Talented people have their idiosyncrasies. So, we propose that it looks at the major research centres overseas. It should adopt effective measures to attract and keep experts to develop a vibrant Malaysian multimedia.

Dr Tan Seng Giaw