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Filing Information: December 2010, IDC #, Volume: 1
Special Reports: Special Study
S P E C I AL S T U D Y
M S C M a l a y s i a 2 . 0 S t a t e I C T B l u e p r i n t : N e g e r i S e m b i l a n
Roger Ling Devtar Singh
Hailey Chan Victor Lim
Liew Siew Choon
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.2163.3
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T A B L E O F C O N T E N T S
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Introduction & Background 1
Point of Departure: State ICT Blueprint – Negeri Sembilan 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
Negeri SEmbilan Gap Analys is 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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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
strategic recommendat ions for the development of ic t in neger i sembilan 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 NS 1
st home program driven by Smart Homes ........................................................................... 131
1 NS Rakyat Portal ..................................................................................................................... 133
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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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L I S T O F T A B L E S
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1 Negeri Sembilan Key Industry/Sector growth 2006-2009 ............................................................ 5
2 Tourist Attraction to Negeri Sembilan ........................................................................................... 7
3 Negeri Sembilan – Land usage by plantation type ....................................................................... 9
4 High Level Indicators for Negeri Sembilan Maju 2020 ................................................................ 10
5 Key Industries and planned initiatives .......................................................................................... 11
6 ICT Strategic Plan 2003-2008 ...................................................................................................... 13
7 Key Infrastructure related initiatives ............................................................................................. 17
8 PC & Cellular Penetration (Negeri Sembilan VS Malaysia) .......................................................... 25
9 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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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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1 MSC Malaysia Milestones ............................................................................................................ 1
2 MSC Malaysia 1.0: Strategic Thrusts ........................................................................................... 2
3 MSC Malaysia 2.0 ........................................................................................................................ 2
4 Districts in Negeri Sembilan by Main Economic Sector ................................................................ 4
5 Dynamism in the manufacturing industry ..................................................................................... 6
6 International vs. Domestic Tourist by District ............................................................................... 8
7 Broadband Penetration by States (Per 100 Inhabitants) .............................................................. 21
8 Current Coverage of Streamyx Wireless Combo ......................................................................... 22
9 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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37 Proposed new structure in State ICT Development ..................................................................... 160
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I N T R O D U C T I O N & B AC K G R O U N D
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.
F I G U R E 1
M S C M a l a y s i a M i l e s t o n e s
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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F I G U R E 2
M S C M a l a y s i a 1 . 0 : S t r a t e g i c T h r u s t s
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.
F I G U R E 3
M S C M a l a y s i a 2 . 0
Source:MDeC
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
Building the ICT industry with
FDIs acting as catalysts for DDIs.
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P O I N T O F D E P A R T U R E : S T AT E I C T B L U E P R I N T – N E G E R I S E M B I L A N
O v e r v i e w
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;
F I G U R E 4
D i s t r i c t s i n N e g e r i S em b i l a n b y M a i n E c o n o m i c S e c t o r
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.
©2010 IDC # 5
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.
E c o n o m i c L a n d s c a p e
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.
T A B L E 1
N e g e r i S em b i l a n K e y I n d u s t r y / S e c t o r g r o w t h 2 0 0 6 - 2 0 0 9
Industry/Sector
(RM Million)
2006 2007 2008 2009
Pertanian 1,226 1,187 1,222 1,292
Perlombongan
& Kuari
17 19 19 19
Pembinaan 370 385 421 485
Pembuatan 9,443 9,781 9,848 9,338
Perkhidmatan 6,637 7,238 7,792 8,449
Total 17,744 18,653 19,353 19,583
Overall Growth 9.2% 5.1% 3.8% -1.3%
Source: UPEN
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.
6 # ©2010 IDC
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
F I G U R E 5
D y n a m i sm i n t h e m an u f a c t u r i n g i n du s t r y
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
©2010 IDC # 7
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
T A B L E 2
T o u r i s t A t t r a c t i o n t o N e g e r i S em b i l a n
Attraction Examples
Homestay Homestay Pelegong, Homestay Lonek, Homestay Kuala Klawang
Historical and Cultural Sites Negeri Sembilan Muzium, Muzium Adat, Muzium Tentara Darat
Ecotourism Hutan Lipur Ulu Bendul, Taman Tasik Seremban, Hutan Lupur Jeram Toi
Beaches Teluk Kemang, Pantai Purnama, Pantai Tanjung Biru
Shopping & Retail Jusco Seremban 2, Seremban Parade, Terminal One
Medical Tourism Seremban Specialist Hospital, Columbia Asia, Nilai Cancer Hospital
Sports recreation/tourism Seremban International Golf Club, Port Dickson Golf and country club
Source: UPEN, Ministry of Tourism
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F I G U R E 6
I n t e r n a t i o n a l v s . D o m e s t i c T o u r i s t b y D i s t r i c t
Source: UPEN
Agricu lture
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
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
International
Domestic
©2010 IDC # 9
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
T A B L E 3
N e g e r i S em b i l a n – L a n d u s a g e b y p l a n t a t i o n t y p e
Type of Plantation Size Percentage (%)
Rubber 132,041.13 42.83%
Palm Oil 166, 501.00 54.01
Paddy 1,643.00 0.53
Coconut 1,105.70 0.36
Fruits 5,376.20 1.74
Vegetable 957.46 0.31
Industrial Plantation 643.20 0.22
Total 308,267.69 100.00
Source: UPEN, MOA
Construct ion
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
10 # ©2010 IDC
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
T A B L E 4
H i gh L e v e l I n d i c a t o r s f o r N e g e r i S em b i l a n M a j u 2 0 2 0
Key Performance Indicator Target 2010 forecast
GDP per Capita RM 40,000 RM 26,722
Annual GDP growth rate 6.5% to 7.0% 4.9% (estimated)
Employment rate 70% 61.3%
Population growth rate 1% 1.1%
Number of incidents under extreme
poverty
0 0.0031%
Manufacturing GDP contribution 31% 47.68%
Services
- Tourism
- Biotechnology
- Public Sector Services
- Other Services
55%
30%
8%
10%
7%
43.14%
N/A
N/A
N/A
N/A
Agriculture 9% 6.60%
Others 5% 2.58%
Source: UPEN, 2010
©2010 IDC # 11
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:
T A B L E 5
K e y I n du s t r i e s a n d p l a n n e d i n i t i a t i v e s
Industry Objective Initiatives
Agriculture - Fortify and grow the sector
- Unique Go-To-Market to differentiate
and to grow Negeri Sembilan as a
Agriculture player
- 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.
12 # ©2010 IDC
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 of application systems within government agencies and
departments
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.
©2010 IDC # 13
N e g e r i S e m b i l a n S t a t e I C T S i t u a t i o n a l
A n a l y s i s
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.
T A B L E 6
I C T S t r a t e g i c P l a n 2 0 0 3 - 2 0 0 8
Strategic Thrust ICT Opportunity
Promoting growth in priority sectors, human resource
development, balanced development in the state
Applications to support Business, Citizen and government
deployment
Infrastructure accessibility, addressing social issues to
narrow income imbalance and improve quality of life,
Infrastructure accessibility
Application to address business needs of particular agencies
14 # ©2010 IDC
T A B L E 6
I C T S t r a t e g i c P l a n 2 0 0 3 - 2 0 0 8
Strategic Thrust ICT Opportunity
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
Knowledge management to manage shared knowledge
Source: UPTM
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
©2010 IDC # 15
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
Pol ic ies
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.
K e y S t r a t e g i c P o l i c y 1 : I n c r e a s e o v e r a l l I C T p e n e t r a t i o n e s p e c i a l l y
i n t h e e a s t e r n r e g i o n .
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:
16 # ©2010 IDC
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.
S t r a t e g i c P o l i c y 2 : T o i n c r e a s e t h e o v e r a l l I C T c o m p e t e n c y l e v e l i n
N e g e r i S e m b i l a n w i t h t h e s e t t i n g u p o f i n f r a s t r u c t u r e s u c h a s s m a r t
s c h o o l s i n r u r a l a r e a s .
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.
©2010 IDC # 17
S t r a t e g i c P o l i c y 3 : E n c o u r a g e t h e d e v e l o p m e n t o f
t e l e c o m m u n i c a t i o n a c c e s s a n d r e a s o n a b l e i n t e r n e t a c c e s s i n r u r a l
a r e a s
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%.
I n f r a s t r u c t u r e
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.
T A B L E 7
K e y I n f r a s t r u c t u r e r e l a t e d i n i t i a t i v e s
Program Key stakeholder Remarks
Community Broadband Centers MCMC 4 implemented but with a suggested
18 # ©2010 IDC
T A B L E 7
K e y I n f r a s t r u c t u r e r e l a t e d i n i t i a t i v e s
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
Program Medan Infodesa KKLW 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
©2010 IDC # 19
T A B L E 7
K e y I n f r a s t r u c t u r e r e l a t e d i n i t i a t i v e s
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) Jabatan Penerangan Malaysia 7 locations with Jempol inactive
Provisioning of TM Hotspots TM 178 access points across the state
1NS Wireless City Kerajaan NS & TM 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
20 # ©2010 IDC
T A B L E 7
K e y I n f r a s t r u c t u r e r e l a t e d i n i t i a t i v e s
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 Kerajaan NS Planning
Source: IDC, 2010
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 Penetrat ion
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.
©2010 IDC # 21
Below the chart exemplifies Negeri Sembilan’s position in broadband penetration
relative to other states;
F I G U R E 7
B r o a d b an d P e n e t r a t i o n b y S t a t e s ( P e r 1 0 0 I n h a b i t a n t s )
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.
0% 20% 40% 60% 80% 100% 120%
Malaysia
Labuan
Kuala Lumpur
Sarawak
Sabah
Terengganu
Selangor
Perlis
Perak
Pulau Pinang
Pahang
Negeri Sembilan
Melaka
Kelantan
Kedah
Johor
38%
34%
105%
24%
17%
23%
56%
22%
27%
50%
21%
32%
35%
16%
22%
35%
22 # ©2010 IDC
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
F I G U R E 8
C u r r en t C o v e r a g e o f S t r e am y x W i r e l e s s C o m b o
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;
StreamyxWireless Coverage
Port Dickson
Seremban
Tampin
Kuala PilahJelebu
Bukit Bemban
Bahau
©2010 IDC # 23
F I G U R E 9
B r o a d b an d C o v e r a g e b y M o b i l e O p e r a t o r s ( H S D PA , 3 G ,
G PR S / E D G E )
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.
24 # ©2010 IDC
F I G U R E 1 0
C e l l u l a r P en e t r a t i o n b y S t a t e ( 2 0 0 8 )
Source: MCMC, 2010
101.388.1
70.6
102.792.4 86.4
101.485.9
94.8 96.4
62.6 58.5 65.7
151.8
0
20
40
60
80
100
120
140
160
©2010 IDC # 25
F I G U R E 1 1
P C P en e t r a t i o n b y S t a t e ( 2 0 0 7 )
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;
T A B L E 8
P C & C e l l u l a r P e n e t r a t i o n ( N e g e r i S e m b i l a n V S M a l a y s i a )
Malaysia Negeri Sembilan
Cellular Penetration 98.9% 92.4%
PC Penetration 31.3% 29.7%
Source: MCMC, IDC, 2010
0 5 10 15 20 25 30 35 40 45 50
Johor
Kelantan
Negeri Sembilan
Pulau Pinang
Perlis
Terengganu
Sarawak
Malaysia
26 # ©2010 IDC
* 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.
I C T G r a d u a t e s , W o r k f o r c e & C o m p a n i e s
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.
©2010 IDC # 27
T A B L E 9
S a m p l e s n a p s h o t o f P r i v a t e I n s t i t u t i o n o f H i g h e r L e a r n i n g w h i c h o f f e r s I C T
c o u r s e s
Private Institution of Higher Learning Programs/Courses
KOLEJ TAFE Certificate, Diploma level ICT courses
INSTITUT JATI(KOLEJ LEGENDA JATI) Degree level - Computer Science & Information Technology
KOLEJ UNITI PORT DICKSON Diploma level - Diploma Sains Komputer, Diploma In
Computer Network (DCN)
KOLEJ INTI MALAYSIA Certificate, Diploma, Degree level
KOLEJ NILAI ANTARABANGSA Bachelor of Computer Science
Bachelor of Information Technology (Hons)
Diploma in Business Information Technology
Diploma in Computer Science
Source: IDC, 2010
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
28 # ©2010 IDC
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 tie-
ins 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 e-
community 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
©2010 IDC # 29
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.
F I G U R E 1 2
E v o l u t i o n o f I n f o r m a t i o n S o c i e t y
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.
30 # ©2010 IDC
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.
I C T U t i l i z a t i o n i n K e y S e g m e n t s
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;
©2010 IDC # 31
T A B L E 1 0
R e g i o n a l M an a g em e n t a n d K e y P u b l i c S e r v i c e s i n N e g e r i S em b i l a n P r o v i d e d b y
L o c a l M u n i c i p a l s ( P B T )
Local Municipal/Authority Key Roles & Responsibilities ICT Utilization
Majlis Perbandaran Seremban 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.
e-Public
e-Taksir
e-Booking
e-Kompaun
Suggestion and Feedback
Online Payment
HRMIS
Webmail
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
32 # ©2010 IDC
T A B L E 1 0
R e g i o n a l M an a g em e n t a n d K e y P u b l i c S e r v i c e s i n N e g e r i S em b i l a n P r o v i d e d b y
L o c a l M u n i c i p a l s ( P B T )
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.
e-License
e-Suppliers
e-Complaints
e-Rental
e-Assessment
Forum
Feedback Management System (FMS)
Business Licensing Electronic Support
System (BLESS)
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
Webmail
HRMIS
e-Form
e-Service
e-Kasih
e-Community (Forum)\
Feedback Management System
Business Licensing Electronic Support
System (BLESS)
©2010 IDC # 33
T A B L E 1 0
R e g i o n a l M an a g em e n t a n d K e y P u b l i c S e r v i c e s i n N e g e r i S em b i l a n P r o v i d e d b y
L o c a l M u n i c i p a l s ( P B T )
Local Municipal/Authority Key Roles & Responsibilities ICT Utilization
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
children’s playground; as well as the
maintenance of parks.
To regulate the public’s 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.
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)
Majlis Daerah Jempol To modernize the district
administration through automation
current with information and
communication technology (ICT).
e-Community
e-Services
BLESS
34 # ©2010 IDC
T A B L E 1 0
R e g i o n a l M an a g em e n t a n d K e y P u b l i c S e r v i c e s i n N e g e r i S em b i l a n P r o v i d e d b y
L o c a l M u n i c i p a l s ( P B T )
Local Municipal/Authority Key Roles & Responsibilities ICT Utilization
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.
Feedback Management System (FMS)
Webmail
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.
e-Cukai
e-Lesen
e-Sewaan
e-Aduan
e-Borang
e-Kompaun
e-Pembekal
HRMIS
Webmail
e-Spara
BLESS
Source: PBT, IDC, 2010
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;
©2010 IDC # 35
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 e-
Services 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.
T A B L E 1 1
Negeri Sembilan rol l ing up to Malaysia
Industry/Sector Negeri Sembilan (% GDP) Malaysia (% GDP) Commentary
Manufacturing Approximately 50% Approximately 30% 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
Services Approximately 37%-40% Approximately 55%-57% 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.
Agriculture Approximately 6%-7% Approximately 8.2%-9.6% The agriculture sector will continue to be
a key growth driver for the state. While
the current attempts are focused on state
36 # ©2010 IDC
T A B L E 1 1
Negeri Sembilan rol l ing 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.
Mining Approximately 0.1% Approximately 8% 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
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;
©2010 IDC # 37
T A B L E 1 2
K e y D i s c u s s i o n P o i n t s f r o m T o p 3 S e c t o r s
Sector Discussion Point #1 Discussion Point #2 Discussion Point #3
Tourism 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.
The positioning of Negeri-
Sembilan'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.
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.
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
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 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.
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
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.
38 # ©2010 IDC
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.
©2010 IDC # 39
F I G U R E 1 3
B r o a d b an d S p e e d b y S e c t o r
Source: IDC, 2010
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)
T A B L E 1 3
A n n u a l A v e r a g e I T s p en d a c r o s s k e y v e r t i c a l s
Vertical Average annual IT spend
Agriculture RM 7249
Description Agriculture Manufacturing Tourism Services Education IT
Access 100.0% 100.0% 100.0% 85.0% 100.0% 100.0%
Dial-up (56 k/b)8.3% 2.1% 3.6% 5.9% 0.0% 0.0%
ADSL (512 Kbps) 16.7% 29.2% 25.0% 58.8% 20.0% 30.0%
ADSL (2 Mbps)25.0% 43.8% 32.1% 17.6% 35.0% 40.0%
ADSL (4 Mbps and
above) 25.0% 10.4% 17.9% 17.6% 10.0% 10.0%
Leased Line25.0% 14.6% 21.4% 0.0% 35.0% 20.0%
Sufficient bandwidth -
Yes58.3% 70.8% 67.9% 52.9% 90.0% 85.0%
40 # ©2010 IDC
T A B L E 1 3
A n n u a l A v e r a g e I T s p en d a c r o s s k e y v e r t i c a l s
Vertical Average annual IT spend
Manufacturing RM 69221
Tourism RM 12021
Services RM 7249
Education RM 28943
IT RM 6537
Source: IDC, 2010
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.
©2010 IDC # 41
Programs & Act iv it ies
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:
T A B L E 1 4
L i s t o f S t a t e D r i v en I C T P r o g r a m s
Upgrade of application systems for Government and
State Agencies
Completed based on customizing federal level applications to
state utilization.
Society Development in ICT Development program are one-off based on a designated
schedule and represents a community outreach effort
1*NS NET Launched on August 2010 with the focus to consolidate and
upgrade the infrastructure of NS*Net, EG*Net and NRE*Net
1NS Wireless City 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
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
T A B L E 1 5
F e d e r a l I n i t i a t i v e s i n t h e s t a t e
Initiative Objective Owner State Implication
MyID Leverage on Identification
Number of citizens as a
single reference point with
the dealings of all
government entities/function
All state level
agencies/department in
Negeri Sembilan
eKL To integrate and streamline
information from all
government agencies in the
Klang Valley
MAMPU Majlis Perbandaran Nilai
MySMS Service provisioning through
SMS gateway
MAMPU SUKNS, Majlis Perbandaran
Nilai, Majlis Daerah Kuala
Pilah
PRISMA Internet security protection
for Government Website
MAMPU SUKNS, Majlis Perbandaran
Seremban and Nilai
HRMIS Human Resource
Management Information
JPA All agencies
42 # ©2010 IDC
T A B L E 1 5
F e d e r a l I n i t i a t i v e s i n t h e s t a t e
Initiative Objective Owner State Implication
System for all civil servant
SPEKS Accounting and treasury
system for state
Jabatan Akauntan Negara Pejabat Perbendaharaan
negeri and all related
agencies
e-Kasih Repository for poverty related
information
ICU, JPM Pejabat Pembangunan
Negeri, Pejabat Daerah &
Tanah, Pejabat Kebajikan
Negeri
e-merah Repository for information on
villages, community leaders
and JKK
ICU Pejabat Daerah & Tanah
Seremban
e-Tanah Centralized system for land
management
NRE Pejabat Tanah & Galian
Negeri Sembilan and Pejabat
Daerah
Pusat Komuniti Bridging
Digital Divide
To reduce the digital gap
between rural areas and
town/city
Majlis Perbandaran
Seremban
Agribazaar Online meeting place to
collaborate, communicate
and to execute
Jabatan Pertanian Jabatan Pertanian Negeri
Sembilan
Projek Jalur Lebar
(PJL/CBL)
Development of broadband
portal to reduce the digital
divide
MCMC & TM Rural libraries
Source: UPTM
©2010 IDC # 43
S u m m a r y o f K e y F i n d i n g s & I s s u e s f o r N e g e r i
S e m b i l a n
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.
T A B L E 1 6
K e y I s s u e s F a c e d b y N e g e r i S e m b i l a n i n P r o l i f e r a t i n g I C T
Key Issue Category Impact
Access to broadband generally
focused on more high density
populated areas.
Infrastructure Medium to High
Quality of Service (Speed of
Internet)
Infrastructure Medium to High
High cost of Internet, which is
causing many people to ignore the
need to adopt it
Infrastructure Medium
Synergy between e-community
centers and other forms of internet
access
Infrastructure Medium to Low
Full potential of e-community
centers
Infrastructure Medium to Low
Pipe (Broadband) with no content Infrastructure Medium to High
Lack of awareness leading to poor
utilization of ICT in daily life
Society High
No champion to take ownership of
the development of an information
based society
Society High
Lack of ICT Skills to utilize basic
functions on the computer
Society High
ICT Programs do not have
continuity or "levels". This limits
progression and growth
Society Medium
ICT is seen as a supporting tool as
opposed to a strategic enabler to
the industry
Industry High
There is no vibrant ICT industry or
wide-spread utilization of ICT
across sectors
Industry High
44 # ©2010 IDC
T A B L E 1 6
K e y I s s u e s F a c e d b y N e g e r i S e m b i l a n i n P r o l i f e r a t i n g I C T
Key Issue Category Impact
There is no niche or specialization,
which has been ear-marked going
forward.
Industry High
No overarching or supporting ICT
blueprint to support the growth of
the industry
Industry High
Lacking in terms of a single point of
contact to champion the effort to
grow ICT adoption
Governance High
UPTM focus is under SUKNS but
there is a gap for overall
development
Governance High
Lack of cohesive interaction and/or
decision making on ICT direction
for the state
Governance Medium - High
Alignment between departments
and agencies on the objectives and
goals for the utilization of ICT is
poor
Public Sector High
Change management and
resistances to utilization due to
preference for manual processes
Public Sector High
Lack of ICT skill sets within the
government sector, makes it
difficult to fully adopt ICT
Public Sector Medium - High
ICT seen as a complementary role
to everyday processes rather than
one which can be used to simplify
processes
Public Sector Medium - High
Source: IDC, 2010
©2010 IDC # 45
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.
T A B L E 1 7
M a p o f I s s u e s A c r o s s M S C M a l a y s i a 2 . 0 P i l l a r s
Issues ICT – Industry ICT – Enabler ICT - Society
Infrastructure Access to broadband
generally focused on more
high density populated
areas.
Quality of Service (Speed
of Internet)
Synergy between e-
community centers and
other forms of internet
access
Driving broadband access
Imbalance access to
broadband
Quality of Service (Speed
of Internet)
Full potential of e-
community centers
Pipe (Broadband) with no
content
Imbalance access to
broadband -creating a
larger digital divide limiting
coordinated growth to the
overall state
Quality of Service
Synergy between e-
community centers and
other forms of internet
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
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
46 # ©2010 IDC
T A B L E 1 7
M a p o f I s s u e s A c r o s s M S C M a l a y s i a 2 . 0 P i l l a r s
Issues ICT – Industry ICT – Enabler ICT - Society
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
Source: IDC, 2010
N E G E R I S E M B I L A N G AP A N A L Y S I S
A p p r o a c h f o r G a p A n a l y s i s
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, ICT-
Enabler and ICT-Society. The model below illustrates how IDC approached the gap
analysis for this study.
©2010 IDC # 47
F I G U R E 1 4
F r a m e w o r k A p p r o a c h i n F o r m u l a t i n g G a p A n a l y s i s
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:
48 # ©2010 IDC
F I G U R E 1 5
P r o c e s s F l o w i n I d en t i f y i n g G a p s
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.
G a p A n a l y s i s F i n d i n g s o f S t a t e I C T B l u e p r i n t
a g a i n s t T a r g e t s
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
©2010 IDC # 49
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% - Little to no evidence of activity/indicator of activity.
26 – 50% - Some evidence of activity/indicators of activity.
51 – 75% - High evidence of activity/indicators of activity.
76 – 100% - Evidence of all activity/indicators of activity completed.
T A B L E 1 8
A s s e s s m en t o f I C T B l u e p r i n t a c h i e v em e n t s
Policy Summary Description Assessment Achievement
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
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
26 – 50%
50 # ©2010 IDC
T A B L E 1 8
A s s e s s m en t o f I C T B l u e p r i n t a c h i e v em e n t s
Policy Summary Description Assessment Achievement
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
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%
Encourage the development
of telecommunication access
and reasonable internet
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
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 e-
community centers
Partnership with TM for
Hotspot coverage of over
100 zones
Wireless Broadband
26 – 50%
©2010 IDC # 51
T A B L E 1 8
A s s e s s m en t o f I C T B l u e p r i n t a c h i e v em e n t s
Policy Summary Description Assessment Achievement
coverage by cellular
providers outside Key
areas like Seremban, and
Port Dickson is fairly
limited
Source: IDC, 2010
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
52 # ©2010 IDC
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 eco-
system 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.
©2010 IDC # 53
G a p A n a l y s i s o n I C T E n v i r o n m e n t i n N e g e r i
S e m b i l a n
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 e-
service 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 short-
lived 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.
54 # ©2010 IDC
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;
©2010 IDC # 55
F I G U R E 1 6
I s s u e s A f f e c t i n g P u b l i c S e c t o r A g en c i e s i n N e g e r i S e m b i l a n
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;
56 # ©2010 IDC
F I G U R E 1 7
M a i n C h a l l e n g e s F a c e d i n U t i l i z a t i o n o f I C T
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.
©2010 IDC # 57
F I G U R E 1 8
S u m m a r y o f G a p s f o r P u b l i c S e c t o r
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;
T A B L E 1 9
R o o t C a u s e A n a l y s i s - P u b l i c S e c t o r
Base Event Chain Reaction Gap
No clear direction on the
advancement of ICT for the state
Users are not full y convinced on the
importance to delve into ICT practice
Mindset/Awareness/Readiness
ICT Seen as a complimentary role,
58 # ©2010 IDC
T A B L E 1 9
R o o t C a u s e A n a l y s i s - P u b l i c S e c t o r
Base Event 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
Users are left with basic 101 type
training with no avenue for advancement
Lack of skill sets
Source: IDC, 2010
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 Situat ion
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
©2010 IDC # 59
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 ICT spend for the manufacturing sector is
approximately RM 69K
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
60 # ©2010 IDC
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 Go-
To-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 cliché 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.
©2010 IDC # 61
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.
F I G U R E 1 9
I C T R e a d i n e s s b y S e c t o r
Source: IDC, 2010
In summary, IDC notes the following as key areas of challenges which needs to be
addressed
Key challenges
Sector Average ICT Expenditure (Yearly) Website Key Enabler Readiness
Agriculture RM 5,000 - RM 9,999 58.3% 74.2%
Manufacturing RM 100,000 - RM 499,999 70.8% 74.0%
Tourism RM 10,000 - RM 24,999 67.9% 90.0%
Services RM 5,000 - RM 9,999 52.9% 68.0%
Education RM 100,000 - RM 499,999 90.0% 81.8%
IT RM 5,000 - RM 9,999 85.0% 80.0%
62 # ©2010 IDC
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
F I G U R E 2 0
S u m m a r y o f G a p s f o r I n d u s t r y
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.
©2010 IDC # 63
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;
T A B L E 2 0
R o o t C a u s e A n a l y s i s - I n du s t r y
Base Event Chain Reaction Gap
No champion to advocate the
creation and growth of an ICT
based ecosystem
Key development in other sectors but
ICT, Organizations generally do not see
the compelling need to position ICT as a
focal point supporting growth
Lack of vibrant ICT industry
Current awareness level
diminishes possibility of permeation
of ICT into key industry sectors
Great disparity between mature
organizations and those with little
adoption creating a vacuum on ICT
demand
Sporadic utilization of ICT across key
industries
Lack of direction in earmarking a
particular field or following through
on a chosen field in ICT
Fragmented training programs leading
to a mix of skill sets but lacking the
masses to congregate to create pivotal
changes
Lack niche or specialization for ICT
industry
Underdeveloped talent pool or non-
existent
Strong focus on the west bank (port
Dickson) and central zone
(Seremban, Nilai)
Continues focus to fortify key zones with
disparity in other developing zones
Sporadic broadband coverage
Source: IDC, 2010
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.
64 # ©2010 IDC
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.
F I G U R E 2 1
1 N S W i r e l e s s C i t y U s e r s b y k e y a r e a
Location User
Tampin 45
Nilai 63
PD Bt 4 79
PD Bt 8 479
Rantau 97
Senawang 613
Seremban 691
Tampin 45
Source: TM, 2010
©2010 IDC # 65
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 café'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.
66 # ©2010 IDC
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
F I G U R E 2 2
S u m m a r y o f G a p s f o r S o c i e t y
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
©2010 IDC # 67
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.
T A B L E 2 1
R o o t C a u s e A n a l y s i s - S o c i e t y
Base Event Chain Reaction Gap
The translation of benefit in using
ICT is not apparent
The lack of "proof" sidelines the
importance of ICT to a level of less
importance
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
The lack of a structured approach
continues to widen the disparity in terms
of ICT usage
Lack of basic ICT skill sets
Strong focus on 101 type courses
with no overarching growth theme
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.
68 # ©2010 IDC
Current Scenario
F I G U R E 2 3
S t r u c t u r e o f S t a k e h o l d e r s i n S t a t e I C T D e v e l o p m en t
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
©2010 IDC # 69
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.
70 # ©2010 IDC
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
©2010 IDC # 71
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.
72 # ©2010 IDC
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
F I G U R E 2 4
S u m m a r y o f G a p s f o r G o v e r n a n c e S t r u c t u r e
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;
T A B L E 2 2
R o o t C a u s e A n a l y s i s - G o v e r n a n c e
Base Event Chain Reaction Gap
The recommendations for UPTM to
have increased autonomy and
focus beyond UPTM as part of the
ICT strategic plan was not
concluded in full
Status quo in terms of focus leading to
stronger growth within SUKNS
No Clear ICT Champion for the state
UPTM focus on SUKNS
There is no clear strategic guide to
govern the advancement of ICT in
Negeri Sembilan
Development focus are in silos having a
less widespread reach
Lack of cohesive interaction and/or
decision making on ICT for the state
Source: IDC, 2010
©2010 IDC # 73
G a p A n a l y s i s o n I C T E n v i r o n m e n t
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.
F I G U R E 2 5
A d d r e s s i n g G a p A n a l y s i s f o r I C T E n v i r o n m en t A p p r o a c h
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.
T A B L E 2 3
O v e r a l l I C T E n v i r o n m en t G a p A n a l y s i s
Category Key Findings Impact Gap Analysis Preliminary
Recommendation
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 Taking into account
existing plans of
rollout, emphasis
should be given in
74 # ©2010 IDC
T A B L E 2 3
O v e r a l l I C T E n v i r o n m en t G a p A n a l y s i s
Category Key Findings Impact Gap Analysis Preliminary
Recommendation
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.
connecting all major
townships. Access in
rural areas can be a
co-op on planned e-
community centers
with targeted programs
for growth.
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
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.
ICT – Industry
(infrastructure)
Synergy between e-
community centers
and other forms of
internet access
Multiple access to
broadband with no
clear growth
development plan will
at worst confuse and
stifle individual
adoption and growth
Moderate to high Close cooperation
between State
stakeholders and
external parties to
ensure synergy in
development as well
as follow up to ensure
sustainable growth
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.
Significant Identify clusters of
interest and
corresponding content
need. Map broadband
plan with the content
needs as a overall
strategy
ICT – Industry
(Accessibility)
High cost of Internet,
which is causing many
people to ignore the
This inherent limitation
automatically stifles
the growth of the ICT
Moderate Possibility of subsidies
or expanding access
of free to use internet
©2010 IDC # 75
T A B L E 2 3
O v e r a l l I C T E n v i r o n m en t G a p A n a l y s i s
Category Key Findings Impact Gap Analysis Preliminary
Recommendation
need to adopt it industry as the basic
fundamentals are not
addressed.
across the state.
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
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
Significant Identify state key
unique areas for
growth and
development of the
ICT Industry
ICT – Industry
(Maturity/Awaren
ess)
There is no vibrant ICT
industry or wide-
spread utilization of
ICT across sectors
The industry is moving
forward in growth
without the support
and need of ICT. This
continues to put ICT in
a position of non-
relevance
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
Brain drain, poor
demand for local
supply leads to a ICT
ecosystem which is
dull
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
ICT – Enabler
(infrastructure)
Imbalance access to
broadband
Industry plans by
district and planed
economy sectors are
indirectly impacted if
access is limited
Moderate Taking into account
existing plans of
rollout, emphasis
should be directed at
designated industry
zones
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
Moderate Provide facilities with
strong SLAs allowing
confidence to
providers
ICT – Enabler
(infrastructure)
Full potential of e-
community centers
The goals of setting up
e-community centers
go beyond the
provisioning of
hardware and internet
Moderate Support
entrepreneurial
development
maximizing investment
76 # ©2010 IDC
T A B L E 2 3
O v e r a l l I C T E n v i r o n m en t G a p A n a l y s i s
Category Key Findings Impact Gap Analysis Preliminary
Recommendation
infrastructure. The
current impact is no
ICT growth translation
as the facilities
function merely as an
internet gateway.
on community centers
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.
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
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 2nd
tier
and 3rd-tier industry
players
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
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
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
Poor efficiencies and
processes which lead
to poor quality of
service to customer
Moderate Consolidating roles
and responsibilities
and creating a strong
standard operating
©2010 IDC # 77
T A B L E 2 3
O v e r a l l I C T E n v i r o n m en t G a p A n a l y s i s
Category Key Findings Impact Gap Analysis Preliminary
Recommendation
objectives and goals
for the utilization of
ICT is poor
(rakyat) procedure as well as
development programs
and dialogue to ensure
there is synergy
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)
Significant Conduct change
management
programs to ensure
concerns are
addresses allowing for
overall growth
ICT – Enabler
(Maturity/Awaren
ess)
There is no vibrant ICT
industry or wide-
spread utilization of
ICT across sectors
ICT has been sidelined
creating a perception
only as one of the
many supporting
functions to state
growth
Significant 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
ICT – Enabler
(Maturity/Awaren
ess)
Lacking in terms of a
single point of contact
to champion the effort
to grow ICT adoption
No single point of
contact, leading to no
accountability and
coordinated direction
Significant Establish a one stop
center
ICT – Enabler
(Resources/HR
Skill Sets)
Lack of ICT skill sets
within the government
sector, makes it
difficult to fully adopt
ICT
The proliferation of ICT
is limited to basic
functions and within
departments which
see value
Moderate to High Coordinate initiatives
to stem poor utilization
and education to
ensure increase
awareness
ICT – Society
(infrastructure)
Imbalance access to
broadband -creating a
larger digital divide
limiting coordinated
growth to the overall
state
Imbalanced societal
uptake creating a
larger digital divide
limiting a coordinated
growth to the overall
state
Moderate Continue with the roll
out projects with
emphasis on
connecting rural areas
ICT – Society
(infrastructure)
Quality of Service Missing out on a pull
factor that will
encourage
development of district
based information
societies.
Moderate Drive quality of service
as a standard and
expected requirement
ICT – Society
(infrastructure)
Synergy between e-
community centers
and other forms of
The lack of synergy
does not give citizens
a clear picture on the
Moderate Close cooperation
between State
stakeholders and
78 # ©2010 IDC
T A B L E 2 3
O v e r a l l I C T E n v i r o n m en t G a p A n a l y s i s
Category Key Findings Impact Gap Analysis Preliminary
Recommendation
internet access
available paths to ride
the ICT bandwagon.
Impact will be seen in
those that decide to
ignore ICT altogether
external parties to
ensure synergy in
development as well
as follow up to ensure
sustainable growth
through the
coordination of key
programs
ICT – Society
(Accessibility)
High Cost of Internet
threaten broadband
penetration efforts
State broadband
penetration plans are
under threat
Moderate Create multiple
channels of access
allowing the building
awareness and
eventual subscription
access to broadband
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
Moderate Support efforts to
provide device
accessibility that are
relevant
ICT – Society
(Maturity/Awaren
ess)
No champion to take
ownership of the
development of an
information based
society
No coordinated
planned programs
which enabled the
preparation, readiness
and growth towards
being 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
Strong indication of the
irrelevance of ICT
which stifles growth
and adoption
Significant Execute awareness
programs which are
themed to address
stigmas related to ICT
ICT – Society
(Maturity/Awaren
ess)
ICT Programs do not
have continuity or
"level". This limits
progression and
growth
Mass availability of the
status quo limits
expertise which drives
new synergies in the
local market
Significant Execute tiered
education programs to
mature the level of
digital literacy
ICT – Society
(Resources/HR
Skill Sets)
Lack of ICT Skills to
utilize basic functions
on the computer
Workforce supply is
hampered by a lack of
ICT related capabilities
Significant Execute 101
workshops to supply
fundamental skills
Source: IDC, 2010
©2010 IDC # 79
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.
80 # ©2010 IDC
T A B L E 2 4
M S C S t a t u s C o m p an i e s i n N e g e r i S em b i l a n
Company Name Focus
StarTag Sdn Bhd R&D Wireless/Smart Card
Fine Digital Studio Sdn Bhd Animation/Post production
INTI College Institution of Higher Learning
Nilai International College Institution of Higher Learning
Kolej Negeri Institution of Higher Learning
Kolej Lagenda Institution of Higher Learning
PTPL Seremban Institution of Higher Learning
Cosmopoint Sdn Bhd Institution of Higher Learning
Source: IDC, 2011
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
©2010 IDC # 81
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 Cit ies and Cyber Centre
init iat ives
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
82 # ©2010 IDC
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.
T A B L E 2 5
M S C M a l a y s i a P e r f o r m a n c e S t a n d a r d s R e qu i r e m e n t s
Performance Parameters Cyber City Standard Cyber Center Standard
Telecommunication Infrastructure
& Services
Availability of CMDF room for a
multiple licensed operator
environment
Available Available
Availability of reserved areas or
secure spaces to accommodate
multiple telecommunication
providers
Available Not Applicable
Availability of inside plant facilities
to support building internal cabling
system with sufficient capacity for a
multiple operator environment
Available Available
Availability of building access
infrastructure for
telecommunication redundancy
Available Available
Availability of fiber optic as the
preferred internal wiring for data, or
a minimum of CAT 5e or equivalent
standard
Available Available
No exclusivity agreement limiting
other licensed operators' ability to
offer services directly to end users
Available Available
Availability of all range of voice,
data/internet services to all
customers
Available Available
Availability of broadband access to
business customers for
data/internet services
Minimum 4 Mbps Minimum 2Mbps per subscriber
Full coverage by all local mobile
networks within all accessible
areas (indoors and outdoors)
Minimum -95 dBm Minimum -95 dBm
Availability of 3G coverage within
all accessible areas indoors and
Available Available
©2010 IDC # 83
T A B L E 2 5
M S C M a l a y s i a P e r f o r m a n c e S t a n d a r d s R e qu i r e m e n t s
Performance Parameters Cyber City Standard Cyber Center Standard
outdoors*
Broadband Access Service
Compliance to MCMC
Determination Broadband Quality
of Services (QoS).
Available Available
Service Lead Time
Maximum service provision
installation lead time for basic
telephone upon confirmed order
24 hours 24 hours
Maximum service provision
installation lead time for Domestic
Free Phone upon confirmed order
24 hours Not Applicable
Maximum service provision
installation lead time for
International Free Phone upon
confirmed order
7 working days Not Applicable
Maximum service provision
installation lead time for Domestic
private leased circuits upon
confirmed order
14 Working days 14 Working days
Maximum service provision
installation lead time for
International private leased circuits
upon confirmed order (half circuit-
local portion)
30 working days 30 working days
Maximum service provision
installation lead time for Internet
access leased circuit upon
confirmed order
16 Working days Not applicable
Service Availability
Minimum service availability for all
services per month
99.9% 99.9%
Service Restoration and Support
Availabilities of 24 hours Telcos
customer service centre
Available Available
Billing and Network Management
84 # ©2010 IDC
T A B L E 2 5
M S C M a l a y s i a P e r f o r m a n c e S t a n d a r d s R e qu i r e m e n t s
Performance Parameters Cyber City Standard Cyber Center Standard
Maximum fault report
acknowledgement
1 hours 1 hours
Maximum fault restoration 4 hours 4 hours
Maximum reconfiguration of
switched services
7 days 7 days
Billing for all services Monthly Monthly
Maximum bill dispute resolution 1 month 1 month
Infrastructure
Availability of redundant incoming
feeders to enterprise building or
site
Available Available
Availability of generator set back
up and/or Uninterruptable Power
Supply (UPS) system to cover the
entire the building
Available Available
Availability of ATS from primary
electricity supply to secondary
supply*
Available Available
Availability of Automatic Transfer
Switch (ATS) from electricity supply
(Primary or Secondary) to
generator set
Available Available
Operation and Maintenance
Maximum no of power interruptions
per year
<3 <6
Maximum restoration time of back-
up power supply to enterprise with
auto switch over from primary to
secondary source or UPS system
<15 seconds <15 seconds
Maximum restoration time of back-
up power supply to enterprise with
auto switch over from main source
(primary or secondary) to generator
set
<15 seconds <15 seconds
Minimum notification of scheduled / 7 Working days 7 Working days
©2010 IDC # 85
T A B L E 2 5
M S C M a l a y s i a P e r f o r m a n c e S t a n d a r d s R e qu i r e m e n t s
Performance Parameters Cyber City Standard Cyber Center Standard
planned supply interruption
Electricity Supply Connection
Maximum lead time for new supply
connection: Low Voltage –
Normal/Bulk Supply
2 Working days 2 Working days
Maximum lead time for new supply
connection: Medium Voltage
5 Working days 5 Working days
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)
Support and Ancillary Services
Maximum lead time for change of
tenancy
1 working days 1 working days
Maximum Meter Testing &
Inspection lead time
2 working days 2 working days
Maximum change of Meter lead
time
3 working days 3 working days
Electricity Billing Monthly Monthly
Maximum Bill Dispute Resolution 1 month 1 month
Availabilities of 24 hours Electricity
Provider service centre
Available Available
Response time/Feedback to
Consumers
24 hours 24 hours
Water Supply
Availability of service level
agreement or client charter on
water supply services
Available Available
Transportation
Availability of multiple mode of
public transport such as taxi, bus,
train, LRT, ERL, commuter
≥ 2 ≥ 2
86 # ©2010 IDC
T A B L E 2 5
M S C M a l a y s i a P e r f o r m a n c e S t a n d a r d s R e qu i r e m e n t s
Performance Parameters Cyber City Standard Cyber Center Standard
Taxi Operation Hours 24 Hours 24 Hours
Natural Environment
Environmental compliance /
initiatives
Available Available
Security and Safety
Availability of Emergency
Response Plan (ERP)
Available Available
Response time of local police 10 minutes 15 minutes
Response time of local ambulance 10 minutes 15 minutes
Response time of local fire brigade 10 minutes 15 minutes
Availability of multiple security
measures at the building / site
≥ 2 ≥ 2
Customer Service Quality
Availability of dedicated One Stop
Centre with 24 hours accessibility
Available Available
Availability of Client Charter Available Available
Implementation of Customer
Relationship Management
Available Available
Implementation of ISO 9001
Certified Cybercity Management
Available Available
Source: MSC Malaysia Performance Standards
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.
©2010 IDC # 87
G l o b a l & R e g i o n a l B e s t P r a c t i c e s
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
88 # ©2010 IDC
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;
T A B L E 2 6
C o m p a r i s o n o f I C T G o a l s & O b j e c t i v e s b e t w e e n S o u t h A u s t r a l i a & N e g e r i
S e m b i l a n
South Australia Goals & Objectives Negeri Sembilan Goals & Objectives
To create South Australia's ICT Industry as an economic
powerhouse for Australia
No direct matching but there is a focus to reinvent the overall
focus of ICT and the accompanying ecosystem
To transform all South Australian industries via ICT for
improvement and enhancement
To use ICT as a key enabler to support the growth of
industries
ICT as a means and fundamental for success in the
digital age
To ensure adequate infrastructure, policies and programs are
created to ready the state for the digital age
Source: IDC, 2010
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 Austra l ia : 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 al l South Austra l ian Industr ies
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.
©2010 IDC # 89
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 Austral ia : 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;
T A B L E 2 7
R a t i o n a l e f o r B en c h m a r k
South Australia, Australia Negeri Sembilan, Malaysia
Ear-marked ICT as a crucial indicator for further growth Has not ear-marked ICT as a crucial indicator for success but
90 # ©2010 IDC
T A B L E 2 7
R a t i o n a l e f o r B en c h m a r k
South Australia, Australia Negeri Sembilan, Malaysia
and proliferation of industry's impact on overall GDP for
the state
in recent times stepped up efforts to permeate ICT adoption
Recognized the need for a vibrant ICT industry to prepare
the state for the digital age, fostering collaborating and
innovation
Does not have an existing entry point to revitalize the ICT
industry but is in search for the right focus to leverage and
grow
A state strong in Manufacturing, Education and
Healthcare – and sees ICT as a key enabler for these
industries
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 serve demand
Lack of ICT skill sets and the need to improve on the ready
talent pool to create an industry
Source: IDC, 2010
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
©2010 IDC # 91
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;
T A B L E 2 8
C o m p a r i s o n o f I C T G o a l s & O b j e c t i v e s b e t w e e n I r e l a n d & N e g e r i S e m b i l a n
Ireland Goals & Objectives Negeri Sembilan Goals & Objectives
That Ireland has the necessary skills for a vibrant and
sustainable ICT Industry
Focused on developing a society which will be able to
participate and leverage on the digital age
Government, agencies and the public see the ICT industry as
one of the most important sectors in the country
No direct matching on the crucial demand for ICT but in recent
times stepped up efforts to permeate ICT adoption
That the ICT sector in Ireland improves its access to, and
interaction with, the final customer through sales and
marketing expertise via initiated programs
To ensure adequate infrastructure, policies and programs are
created to ready the state for the digital age
Source: IDC, 2010
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 publ ic see the ICT industry as one of
the most important sec tors 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 sk i l ls for a v ibrant and sustainable
ICT Industry
Promote ICT as a career of choice
92 # ©2010 IDC
Formulate advocacy programs to encourage more students to take up ICT-
related 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 competit ive locat ion for ICT, both
domest ica l ly and internat ional ly
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 attract ive p lace in which to undertake
research and deve lopment
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.
©2010 IDC # 93
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
interact ion with , the f inal customer through sales and marketing
expert ise v ia in it iated 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;
T A B L E 2 9
R a t i o n a l e f o r B en c h m a r k
Ireland Negeri Sembilan, Malaysia
Attempting to heighten collaboration between
government and industry to further propel ICT as a key
component and economic sector for the country
The state government is embarking on close public-private
collaborations which has the potential to propel the
development of ICT
ICT seen as a crucial enabler for the education sector, in
creating a robust policy for ICT utilization in schools
Nilai was dubbed education valley, and there is strong
indication of ICT awareness and usage in this sector
Promoting greater collaboration between IHLs and
industry via ICT R&D
No direct matching but the IHL's have strived for MSC status
Willingness to expand on e-Government initiatives to
citizens
The state has embarked on several e-Government based
initiatives to serve citizens
Source: IDC, 2010
K e y F i n d i n g s f o r B e n c h m a r k R e g i o n s
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
94 # ©2010 IDC
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 non-
highlighted components are the customized goals of the regions based off the base
initiatives in developing such an industry.
T A B L E 3 0
K e y F i n d i n g s f o r B en c h m a r k R e g i o n s
Ireland South Australia, Australia
ICT seen as a crucial means in enabling key economic
sectors and heightening the attractiveness of Ireland
ICT utilized as a means to improve on society quality of life
and industry enablement
ICT development to begin in schools, and policies should
be drafted and implemented to encourage utilization of
ICT in schools
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
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
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
Development of ICT skill sets is crucial via programs and
initiatives
Source: IDC, 2010
©2010 IDC # 95
S T R AT 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 V E 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 AN
R e c o m m e n d a t i o n s
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.
F I G U R E 2 6
I D C s a p p r o a c h t o a t t a i n i n g t h e I C T v i s i o n o f N e g e r i S em b i l a n
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.
ICT Vision of the State of Negeri Sembilan
Address gaps - To Reach Vision
Address gaps - Current Scenario
96 # ©2010 IDC
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
F I G U R E 2 7
T r an s l a t i o n o f s t a t e I C T V i s i o n t o M S C M a l a y s i a 2 . 0 p i l l a r s
Source: IDC, 2010
©2010 IDC # 97
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 Scenar io
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.
T A B L E 3 1
M a p o f P r o b l em A r e a s A c r o s s M S C M a l a y s i a 2 . 0 P i l l a r s
Fundamentals ICT – Industry (A) ICT – Enabler (B) ICT – Society (C)
Infrastructure (1) 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 e-
community centers and
other forms of internet
access (A.1.3)
Driving broadband access
(A.1.4)
Imbalance access to
broadband (B.1.1)
Quality of Service (Speed
of Internet) (B.1.2)
Full potential of e-
community centers (B.1.3)
Pipe (Broadband) with no
content (B.1.4)
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 e-
community centers and
other forms of internet
access (C.1.3)
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)
98 # ©2010 IDC
T A B L E 3 1
M a p o f P r o b l em A r e a s A c r o s s M S C M a l a y s i a 2 . 0 P i l l a r s
Fundamentals ICT – Industry (A) ICT – Enabler (B) ICT – Society (C)
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)
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
©2010 IDC # 99
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
T A B L E 3 2
M a j o r I C T T h e m e s
Major ICT Themes IDCs alignment to Vision Description Mapping to Problem Areas
Broadband for All Proliferation of Broadband
access to reach all of Negeri
Sembilan
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
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
100 # ©2010 IDC
T A B L E 3 2
M a j o r I C T T h e m e s
Major ICT Themes IDCs alignment to Vision Description Mapping to Problem Areas
Industry Empowerment Achievement of GDP targets
by key industries
This major theme looks to
address key issues currently
hindering the leveraging of
ICT as strategic tool to drive
for industry growth
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
A.3.2
B.1.4
Digital Awareness Preparing the citizens to
participate and leverage the
digital age
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.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
©2010 IDC # 101
F I G U R E 2 8
M a j o r I C T T h e m e s bu i l d i n g u p t o M S C M a l a y s i a 2 . 0 p i l l a r s
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.
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 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.
Broadband for All Content Connection
ICT as an Enabler
To be 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. .
Industry Empowerment
ICT for Society
To transform NegeriSembilan into a society that has
ubiquitous use of ICT
Digital awareness
102 # ©2010 IDC
T A B L E 3 3
I n i t i a l l i s t o f r e c o m m en d e d p r o g r a m s b a s e d o n M a j o r I C T T h em e s
Major ICT Theme Problem Area Initial Recommendations MSC 2.0 & Fundamental
map
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)
ICT-I / Infrastructure
Quality of Service (A.1.2) Establish a District
Broadband council to grow
broadband access in key
areas (A.1.2-A)
ICT-I / Infrastructure
Synergy between e-
community centers and other
forms of internet access
(A.1.3)
Establish a state wide
broadband council (A.1.3-A)
Maintain a broadband heat
map (A.1.3-B)
ICT-I / Infrastructure
Driving broadband access
(A.1.4)
Establish Public Broadband
space (A.1.4-A)
ICT-I / Accessibility
High Cost of Internet (A.2.1) Maintain a broadband heat
map (A.2.1-A)
Expand Public Private
Partnerships (A.2.1-B)
ICT-E / Infrastructure
High cost of Internet,
causing disparity in adoption
across industries especially
SMBs (B.2.1)
SMB empowerment through
the provisioning of affordable
broadband as well as other
ICT infrastructure (B.2.1-A)
ICT-E / Accessibility
Imbalance access to
broadband -creating a larger
digital divide limiting
coordinated growth to the
overall state (C.1.1)
Expand existing rollouts
(example 1NS Wireless city,
Hotspots etc) (C.1.1-A)
Public ICT awareness
programs (C.1.1-B)
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)
Establishment of smart
homes (C.1.2-A)
Appointing an OSA (C.1.2-B)
ICT-S / Infrastructure
Synergy between e-
community centers and other
forms of internet access does
State wide broadband council
for planning and coordination
(C.1.3-A)
ICT-S / Infrastructure
©2010 IDC # 103
T A B L E 3 3
I n i t i a l l i s t o f r e c o m m en d e d p r o g r a m s b a s e d o n M a j o r I C T T h em e s
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)
High Cost of Internet threaten
broadband penetration efforts
(C.2.1)
Maintain a broadband heat
map (C.2.1-A)
Expand Public Private
Partnerships (C.2.1-B)
ICT-S / Accessibility
Availability of matching
devices to promote
broadband access (C.2.2)
Subsidized PCs (C.2.2-A)
PC leasing program (C.2.2-
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)
ICT empowerment
workshops (A.3.1-A)
Development of industry
clusters (A.3.1-B)
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)
ICT–E / Infrastructure
Quality of Service (B.1.2) Establish mini-cybercentre
(B.1.2-A)
Appointing an OSA (B.1.2-B)
ICT–E / Infrastructure
Achieving Full potential of e-
community centers (B.1.3)
ICT Desa Program (B.1.3-A) ICT–E / Infrastructure
ICT seen as a
complementary role to
everyday processes rather
than one which can be used
to simplify processes (B.3.1)
Tiered capability
development programs
(B.3.1-A)
ICT empowerment
workshops (B.3.1-B)
ICT-E/ Maturity/Awareness
104 # ©2010 IDC
T A B L E 3 3
I n i t i a l l i s t o f r e c o m m en d e d p r o g r a m s b a s e d o n M a j o r I C T T h em e s
Major ICT Theme Problem Area Initial Recommendations MSC 2.0 & Fundamental
map
Resistances to utilization due
to preference for manual
processes within government
(B.3.3)
Pembudayaan ICT kerajaan
(B.3.3-A)
ICT proficiency test (B.3.3-B)
ICT-E/ Maturity/Awareness
There is no vibrant ICT
industry or wide-spread
utilization of ICT across
sectors (B.3.4)
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)
Appoint a one stop center
(B.3.5-A)
ICT-E/ Maturity/Awareness
Content Connection There is no vibrant ICT
industry or wide-spread
utilization of ICT across
sectors (A.3.2)
Industry 2.0 - Digital
empowerment (A.3.2-A)
ICT-I/ Maturity/Awareness
Driving broadband access
(B.1.4)
District level content (B.1.4-
A)
ICT-E/ Infrastructure
Digital Awareness Lack of ICT skill sets within
the ICT industry in a specific
niche or specialization (A.4.1)
Industry training programs
(A.4.1-A)
IHL subject design (A.4.1-B)
ICT-I/ Resources/HR
Bridging Access to the
government (B.2.2)
1 NS Rakyat Portal (B.2.2-A) ICT-E/ Accessibility
Lack of ICT skill sets within
the ICT industry in a specific
niche or specialization (B.4.1)
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
©2010 IDC # 105
T A B L E 3 3
I n i t i a l l i s t o f r e c o m m en d e d p r o g r a m s b a s e d o n M a j o r I C T T h em e s
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-S/Maturity/Awareness
ICT Programs do not have
continuity or "level". This
limits progression and growth
(C.3.3)
Tiered capability
development programs
(C.3.3-A)
ICT-S/Maturity/Awareness
Lack of ICT Skills to utilize
basic functions on the
computer (C.4.1)
ICT 101 program (C.4.1-A) ICT-S/Resources/HR
Source: IDC, 2010
Address gaps - To Reach Vis ion
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.
T A B L E 3 4
R ec o m m e n da t i o n s t o a t t a i n I C T V i s i o n o f t h e S t a t e
Vision Remarks Recommendation
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.
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
MSC Malaysia Incubator
MSC Malaysia Cybercentre
Access @ Negeri Sembilan
106 # ©2010 IDC
T A B L E 3 4
R ec o m m e n da t i o n s t o a t t a i n I C T V i s i o n o f t h e S t a t e
Vision Remarks Recommendation
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 e-
enablement 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
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
Source: IDC, 2010
©2010 IDC # 107
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.
F I G U R E 2 9
K e y R e c o m m en d a t i o n s m a p p e d t o d e v e l o p m en t ph a s e s
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.
108 # ©2010 IDC
T A B L E 3 5
K e y R e c o m m en d a t i o n s m a p p e d t o M S C M a l a y s i a 2 . 0
ICT-Industry ICT-Enabler ICT-Society
Access @ Negeri Sembilan Fortify Industrial District with High Speed
Broadband access and increase access
to all
Capability Development Program for the
Industry
NS 1st home program driven by
Smart Homes
Empowering SMBs with ICT access 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.
S A M P L E
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
Major ICT Theme Details which Major ICT Theme the recommendation falls under
Description Highlights and describes the reason behind the recommendation
Objectives Key objectives of the recommendation are put forth
Impact IDCs point of view in terms of the impact should there be successful implementation
Action Plan 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
KPI KPI list for the recommendations
Targets Measurement of KPIs
©2010 IDC # 109
S A M P L E
Timeline Short-term, Mid-term or Long-term
Key Stakeholders Key players involved
Source: IDC, 2010
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.
110 # ©2010 IDC
Capabi l i ty Development Program for the Industry
T A B L E 3 6
C a p a b i l i t y D e v e l o pm en t P r o g r a m f o r t h e I n du s t r y
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 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
Major ICT Theme Digital Awareness, Industry Empowerment
Description 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
Objectives 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
©2010 IDC # 111
T A B L E 3 6
C a p a b i l i t y D e v e l o pm en t P r o g r a m f o r t h e I n du s t r y
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
112 # ©2010 IDC
T A B L E 3 6
C a p a b i l i t y D e v e l o pm en t P r o g r a m f o r t h e I n du s t r y
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
©2010 IDC # 113
T A B L E 3 6
C a p a b i l i t y D e v e l o pm en t P r o g r a m f o r t h e I n du s t r y
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
F I G U R E 3 0
T i m e l i n e a n d A c t i o n p l a n - C a p a b i l i t y D e v e l o p m e n t P r o g r a m
f o r t h e I n du s t r y
Source: IDC, 2010
114 # ©2010 IDC
Total ICT Development for Soc iety
T A B L E 3 7
T o t a l I C T D e v e l o pm e n t f o r S o c i e t y
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 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
Major ICT Theme Digital Awareness, Industry Empowerment
Description 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.
Objectives 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.
©2010 IDC # 115
T A B L E 3 7
T o t a l I C T D e v e l o pm e n t f o r S o c i e t y
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
116 # ©2010 IDC
T A B L E 3 7
T o t a l I C T D e v e l o pm e n t f o r S o c i e t y
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
©2010 IDC # 117
T A B L E 3 7
T o t a l I C T D e v e l o pm e n t f o r S o c i e t y
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
118 # ©2010 IDC
T A B L E 3 7
T o t a l I C T D e v e l o pm e n t f o r S o c i e t y
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
©2010 IDC # 119
F I G U R E 3 1
T i m e l i n e a n d A c t i o n p l a n - T o t a l I C T D e v e l o p m e n t f o r S o c i e t y
Source: IDC, 2010
120 # ©2010 IDC
Fort i fy Industr ia l Dist r icts with High Speed Broadband Access &
increase access to al l
T A B L E 3 8
F o r t i f y I n du s t r i a l D i s t r i c t s w i t h H i gh S p e e d B r o a d ba n d A c c e s s & i n c r e a s e a c c e s s
t o a l l
ICT Vision 1) 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
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 Broadband For All, Industry Empowerment
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 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.
Objectives 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
©2010 IDC # 121
T A B L E 3 8
F o r t i f y I n du s t r i a l D i s t r i c t s w i t h H i gh S p e e d B r o a d ba n d A c c e s s & i n c r e a s e a c c e s s
t o a l l
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
122 # ©2010 IDC
F I G U R E 3 2
T i m e l i n e a n d A c t i o n p l a n - F o r t i f y I n d u s t r i a l D i s t r i c t s w i t h
H i gh S p e e d B r o a d b a n d A c c e s s
Source: IDC, 2010
©2010 IDC # 123
Empowering SMBs with ICT access
T A B L E 3 9
E m po w e r i n g S M B s w i t h I C T a c c e s s
ICT Vision 1) 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
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 Broadband for All, Industry Empowerment
Description 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
Objectives 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
124 # ©2010 IDC
T A B L E 3 9
E m po w e r i n g S M B s w i t h I C T a c c e s s
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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E m po w e r i n g S M B s w i t h I C T a c c e s s
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
126 # ©2010 IDC
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T i m e l i n e a n d A c t i o n p l a n - E m po w e r i n g S M B s w i t h I C T a c c e s s
Source: IDC, 2010
©2010 IDC # 127
Access @ Negeri Sembi lan
T A B L E 4 0
A c c e s s @ N e g e r i S e m b i l a n
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
Objectives 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
128 # ©2010 IDC
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A c c e s s @ N e g e r i S e m b i l a n
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.
©2010 IDC # 129
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A c c e s s @ N e g e r i S e m b i l a n
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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A c c e s s @ N e g e r i S e m b i l a n
Source: IDC, 2010
F I G U R E 3 4
T i m e l i n e a n d A c t i o n p l a n – A c c e s s @ N e g e r i S e m b i l a n
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.
©2010 IDC # 131
NS 1 s t home program driven by Smart Homes
T A B L E 4 1
N S 1 s t h o m e p r o g r a m d r i v en b y S m a r t H o m es
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.
Objectives 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
132 # ©2010 IDC
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N S 1 s t h o m e p r o g r a m d r i v en b y S m a r t H o m es
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 Establishment of smart homes (C.1.2-A) -midterm
Key Stakeholders Private sector
MCMC
TM
JPBDD
MDeC
UPEN
Source: IDC, 2010
©2010 IDC # 133
1 NS Rakyat Porta l
T A B L E 4 2
1 N S R a k y a t P o r t a l
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.
Objectives 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, e-
forums 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
134 # ©2010 IDC
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1 N S R a k y a t P o r t a l
Timeline Rakyat 2.0 portal (B.2.2-A) –midterm
Key Stakeholders SUKNS
UPTM
Source: IDC, 2010
F I G U R E 3 5
T i m e l i n e a n d A c t i o n p l a n – 1 N S R a k y a t P o r t a l
Source: IDC, 2010
©2010 IDC # 135
ICT Empowerment for the Manufacturing Industry
T A B L E 4 3
I C T E m p o w e r m en t f o r t h e M an u f a c t u r i n g I n du s t r y
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.
Objectives 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 Increased GDP contribution
Action Plan (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
136 # ©2010 IDC
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I C T E m p o w e r m en t f o r t h e M an u f a c t u r i n g I n du s t r y
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
©2010 IDC # 137
T A B L E 4 3
I C T E m p o w e r m en t f o r t h e M an u f a c t u r i n g I n du s t r y
NSIC
Private sector
MIDA
UPTM
Source: IDC, 2010
138 # ©2010 IDC
ICT Empowerment for the Tourism Industry
T A B L E 4 4
I C T E m p o w e r m en t f o r t h e T o u r i sm I n du s t r y
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
©2010 IDC # 139
T A B L E 4 4
I C T E m p o w e r m en t f o r t h e T o u r i sm I n du s t r y
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 Tri-
Connect 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
140 # ©2010 IDC
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I C T E m p o w e r m en t f o r t h e T o u r i sm I n du s t r y
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
©2010 IDC # 141
ICT Empowerment for the Agricu lture Industry
T A B L E 4 5
I C T E m p o w e r m en t f o r t h e A g r i c u l t u r e I n du s t r y
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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I C T E m p o w e r m en t f o r t h e A g r i c u l t u r e I n du s t r y
KPI 4: Percentage of annual increase of sales volume via the electronic market
KPI 5: Agriculture sector’s 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 sector’s 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
©2010 IDC # 143
Recommendations Timeline
ICT as an Enabler
144 # ©2010 IDC
©2010 IDC # 145
146 # ©2010 IDC
©2010 IDC # 147
ICT as an Industry
148 # ©2010 IDC
ICT for Soc iety
©2010 IDC # 149
150 # ©2010 IDC
Program Costing
Cost ing Assumpt ions
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:
T A B L E 4 6
C o s t b r e a k d o w n f o r k e y p r o g r am s
Recommended program Costing Components Total Costing (RM)
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
600,000
Tiered Capability development
programs
100% services in the form of fees to the
training company appointed to execute
the program
600,000
Industry training programs 100% services in the form of fees to the
training company appointed to execute
the program
600,000
Pembudayaan ICT Kerajaan 100% services in the form of fees to the
training company appointed to execute
the program
450,000
©2010 IDC # 151
T A B L E 4 6
C o s t b r e a k d o w n f o r k e y p r o g r am s
Recommended program Costing Components Total Costing (RM)
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
750,000
ICT 101 Program 100% services in the form of fees to the
training company appointed to execute
the program
600,500
Taska 2.0 @ Pre-School Includes the provisioning of Hardware in
the form of upgrades or new
installations, Software for running e-
learning programs and services for
support, installation and training.
Hardware - 60%
Software -15%
Services - 25%
1,150,000
ICT Friends @ Primary School Focus is on software and e-services
Software -40%
Services-60%
610,500
Teen Zone 2.0 @ Secondary
School
Focus is on software and e-services
Software -40%
Services-60%
745,000
IHL Subject Design 100% services in the form of fees to
engage and produce relevant material
855,000
Warga Emas Warga Maju (WEWM) 100% services in the form of fees to
engage and produce relevant material
525.500
Fortify Industrial Districts with High Speed Broadband Access & increase access to all
Establish a District Broadband
council
N/A N/A
Expand public private partnership N/A N/A
Empowering SMBs with ICT access
ICT Empowerment workshops 100% services in the form of fees to the 600,000
152 # ©2010 IDC
T A B L E 4 6
C o s t b r e a k d o w n f o r k e y p r o g r am s
Recommended program Costing Components Total Costing (RM)
training company appointed to execute
the program
ICT Desa Program Provisioning of seed money to support
initiatives
54,000
Subsidized PCs & PC Leasing
program
Based on a RM 1000 subsidy per
desktop PC
1,000,000
SMB Empowerment through the
provisioning of affordable
broadband as well as other ICT
Infrastructure
100,000
Access @ Negeri Sembilan
District level content Empowerment on job creation to kick
start the content development across
Negeri Sembilan. 100% services
400,000
MSC Malaysia Incubator Hardware - 60%
Software -15%
Services - 25%
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.
505,300
Operational Efficiency 95% services to train, develop and 1,105,000
©2010 IDC # 153
T A B L E 4 6
C o s t b r e a k d o w n f o r k e y p r o g r am s
Recommended program Costing Components Total Costing (RM)
acquire related skills.
ICT Empowerment for the Tourism Industry
1 NS Tourism Tri-Connect Hardware - 50%
Software -20%
Services - 30%
1,920,000
1 NS Tourism Growth Backbone Hardware - 30%
Software -25%
Services - 45%
1,200,000
ICT Empowerment for the Agriculture Industry
Agro Portal Hardware - 30%
Software -25%
Services - 45%
850,000
Source: IDC, 2010
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.
154 # ©2010 IDC
T A B L E 4 7
F u n d i n g m o d e l f o r k e y p r o g r a m s
Recommended program Funding Model Remarks
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)
Tiered Capability development
programs
Public Private Partnership 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
Industry training programs Public Private Partnership Collaboration between the state
government and the private sector to
empower the local industry through
industry specific programs (possible co-
op with FMM as an example)
Pembudayaan ICT Kerajaan Public Funding Direct public funding for the
development of the public sector
(Possibility to also leverage on vendors
wanting to penetrate into the public
sector space)
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)
ICT 101 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
©2010 IDC # 155
T A B L E 4 7
F u n d i n g m o d e l f o r k e y p r o g r a m s
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
ICT Friends @ Primary School Public Private Partnership 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
Teen Zone 2.0 @ Secondary
School
Public Private Partnership 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
IHL Subject Design Private Funded 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.
Warga Emas Warga Maju (WEWM) Public Private Partnership 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.
Fortify Industrial Districts with High Speed Broadband Access & increase access to all
Establish a District Broadband
council
N/A N/A
Expand public private partnership N/A N/A
Empowering SMBs with ICT access
ICT Empowerment workshops Public Private Partnership Collaboration between the state
government and the private sector to
156 # ©2010 IDC
T A B L E 4 7
F u n d i n g m o d e l f o r k e y p r o g r a m s
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 Public Funded Grants/seed money to support startups
Subsidized PCs & PC Leasing
program
Public Private Partnership 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
SMB Empowerment through the
provisioning of affordable
broadband as well as other ICT
Infrastructure
Public Funded Combination programs allowing for the
public sector to support the growth of
SMBs. This may include seeding funds.
Access @ Negeri Sembilan
District level content Public funded Funding for job creation allowing for the
development of the ICT industry as well
as the development of local district
based content
MSC Malaysia Incubator Public Private Partnership 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
MSC Malaysia Cybercentre Public 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
NS 1st home program driven by
Smart Homes
Private Funded The government to lead the initiative
and awareness and the private sector
©2010 IDC # 157
T A B L E 4 7
F u n d i n g m o d e l f o r k e y p r o g r a m s
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
Operational Efficiency Public Private Partnership. The private sector to provide the skills
and R&D to supply the necessary
framework for the development of the
industry
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)
1 NS Tourism Growth Backbone Public Funded The government to invest in the
necessary infrastructure to enable a
stronger tourism experience
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
158 # ©2010 IDC
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
©2010 IDC # 159
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.
F I G U R E 3 6
S t r u c t u r e o f S t a k e h o l d e r s i n S t a t e I C T D e v e l o p m en t
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.
160 # ©2010 IDC
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.
F I G U R E 3 7
P r o po s e d n ew s t r u c t u r e i n S t a t e I C T D e v e l o pm e n t
Source: IDC, 2010
©2010 IDC # 161
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
162 # ©2010 IDC
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.
C o p y r i g h t N o t i c e
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