Development Issues for the Creative Economy in Malaysia

PhD Thesis

Siti Suriawati Isa n6181228

Creative Industries Faculty Queensland University of Technology

Submitted in full requirements for the degree of Doctor of Philosophy 2012

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Keywords

Animation, museums, creative economy, experience industries, creative industries Malaysia.

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Abstract

Cultural tourism and creative industries have intersecting policy agendas and economic interdependencies. Most studies of the creative industries have focused on western countries. Cultural tourism is rarely included. However the arrival of the creative economy and its movement through developing countries has changed the relationship. Supporters of the creative economy now see fit to include tourism.

This thesis addresses the development of the creative economy in Malaysia. The thesis conducted case studies on animation and museum sectors in Malaysia. These two case studies provide information on the development of creative economy in Malaysia. The study found that a top-down cultural management approach is being practised but that Malaysia is now influenced by new ideas concerning innovation and technical creativity. The study examined whether or not technical innovation by itself is enough. The reference points here are the Multimedia Super Corridor in Cyberjaya and other similar projects in the region. The museum case study was situated in Malacca. It showed that museums needed to adapt new media and new experiences to remain relevant in today’s world. In applying a case study approach, the thesis made use of interviews with key stakeholders, as well consulting numerous policy documents and web sites.

Both case studies imitated similar products and services in the market but added local characteristics. This research project contributes significantly to the existing body of knowledge in the field of creative economy within the context of developing countries. Finally the thesis makes recommendations for Malaysia to better position itself in the regional economy while retaining its distinctive cultural identity.

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Acknowledgements

This section acknowledges all the people who were directly or indirectly involved in my PhD journey at QUT. First and foremost, I offer my humble gratitude to Allah for making all of this happen. Secondly, I would like to thanks my parents, Siti Aishah Tafazul, and Isa Hashim, my gorgeous daughter, Siti Nurellyza Suria Ab Rahim, my three beautiful sisters, Siti Sabariah Isa, Siti Sarah Isa and Siti Salwa Isa, my lovely brothers and brothers-in-law, Mohd Hasni Isa, Mohd Husna Isa, Mohd Husba Isa, Ahmad Fuad Hassan, Izzuddin Loi-Abdullah, Abu Ali and other family members and relatives for their great support, encouragement and prayers while I worked on my PhD.

Importantly, I am totally indebted to my Principal Supervisor, Associate Professor Michael Keane and Associate Supervisor, Professor Greg Hearn for their valuable contribution towards my thesis. Without them I would not have been able to finish my study. I will always remember their kindness and willingness to take me under their wings. I also would like to express my gratitude to my employer in Malaysia, Universiti Putra Malaysia, and all the staff at the Faculty of Economics and Management, specifically the Department of Hospitality and Recreation, my sponsor, the Ministry of Higher Education, Malaysia, and the Creative Industries Faculty of the Queensland University of Technology for all their great support and assistance throughout my study. I also thank all of the staff at the two organisations involved in my case studies: Les’Copaque Production Sdn. Bhd., and the Malacca Museum Corporation. Their kind assistance and support is very much appreciated. Also, I thank the International Support Services staff—Nazrin Rashid, Graeme Baguley Andy Ng, and Don Foster—for helping me significantly in completing this research. I thank my Malaysian community in Brisbane and Queensland, and finally, my friends, specifically Naza Amit and Eric Shelton, my relatives Jessine Izz-Loi, Siti Jessmine Izz-Loi, Aini Zainol, and great research colleagues (Cindy, Natalie, Tim, Cori, Donna, Jaz, Clare, Rachael, Joy, Mike and Asti), my dearest friend, Susan Gasson at the RSC, who has always believed in me, and other QUT staff members, in particular, Kate Simmonds and Professor Caroline Hatcher. Thank you very much for all your kindness and in putting up with me through thick and thin. All of you have made this possible, and I will surely miss all of you after this.

Words cannot express how grateful I am for what you all have contributed towards my research.

May Allah bless all of you. TERIMA KASIH.

A friend cannot be considered a friend until he is tested in three occasions: in time of need, behind your back, and after your death (Ali ibn abi Talib)

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Statement of Authorship

The work contained in this thesis has not been previously submitted to meet requirements for an award at this or any other higher education institution. To the best of my knowledge and belief, the thesis contains no material previously published or written by another person except where due reference is made.

Signature

Date

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Table of Contents

Keywords ...... ii Abstract ...... iii Acknowledgements ...... iv Statement of Authorship ...... v Table of Contents…………………………………………………………………………………………………………………………...vi List of Tables and Figures...... x Abbreviations and Glossary...... xi 1. THE CREATIVE ECONOMY IN MALAYSIA ...... xi 1.1 Introduction to Creative Economy ...... 1 1.2 Research Problem ...... 2 1.3 Research Methodology ...... 3 1.4 The Development of Creative Economy in Malaysia ...... 4 1.5 Cultural Tourism ...... 5 1.5.1 Creative Tourism ...... 6 1.6 Creative Industries: A Discussion ...... 7 1.6.1 Creative Industries and the Cultural Industries ...... 8 1.6.2 Creative Industries and the Experience Industries ...... 8 1.7 Research Outline ...... 9 2. THE LITERATURE ON CREATIVE SECTORS ...... 11 2.1 Introduction to the Creative Economy ...... 11 2.2 Domains of Creative Activity ...... 12 2.2.1 Scientific, Economic, Technological, & Cultural Creativity ...... 14 2.3 Economic Creativity ...... 14 2.3.1 The Differing Creative Economies in Developing Nations ...... 15 2.3.2 Creative Industries: New and Untested Ideas ...... 16 2.4 Technological Creativity ...... 18 2.4.1 Content Industry ...... 20 2.4.2 Cultural Creativity ...... 21 2.4.3 Cultural Tourism ...... 23 2.5 Conclusion ...... 24 3. CREATIVE ECONOMY DEVELOPMENT IN MALAYSIA ...... 26

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3.1 The Malaysian Experience in Developing a Creative Economy ...... 26 3.2 Developing Malaysia’s Creative Economy ...... 26 3.2.1 Vision 2020 and the Knowledge Economy ...... 28 3.2.2 The Content Industry in Malaysia ...... 31 3.2.3 The Animation Sector in Malaysia ...... 34 3.2.4 Cultural tourism sector ...... 37 3.2.5 The relationship between cultural tourism and creative industries ...... 40 3.2.6 Cultural protection ...... 41 3.2.7 Global Versus Local Culture ...... 43 3.3 Conclusion: Positioning Malaysia in Creative Economy ...... 46 4. RESEARCH METHODS ...... 49 4.1 Data Collection ...... 49 4.2 Case Study Organisations ...... 50 4.3 Rationale for Selection of Case Studies ...... 52 4.4 Case Studies: Recruitment and Time Line ...... 53 4.4.1 Ethical considerations ...... 53 4.5 The Interview Process ...... 54 4.6 Interview Analysis Procedure...... 55 4.7 Conclusion ...... 55 5. CASE STUDY ONE: LES’COPAQUE PRODUCTION SDN. BHD...... 56 5.1 Introduction ...... 56 5.2 Comparison of Cyberjaya, Malaysia and Cyberport, Hong Kong ...... 56 5.2.1 The development of Cyberjaya, Malaysia ...... 57 5.2.2 The development of Cyberport, Hong Kong ...... 59 5.2.3 The similarities between Cyberjaya and Cyberport ...... 61 5.2.4 The differences between Cyberjaya and Cyberport ...... 61 5.2.5 Conclusion on Cyberjaya and Cyberport ...... 62 5.3 RQ1: What Are the Main Operational Issues for Malaysian Creative Economy Enterprises? ...... 64 5.4 RQ2: What is the development path for Malaysian creative economy enterprises? ...... 75 5.5 RQ3: How do Malaysian creative economy enterprises utilise traditional Malaysian cultural assets? ...... 79 5.6 RQ4: How can Malaysia position itself in the creative economy in the region? ...... 81 5.7 Conclusion ...... 85 6. CASE STUDY TWO: MALACCA MUSEUM CORPORATION ...... 86

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6.1 Introduction ...... 86 6.2 Comparison between Malacca Museum Corporation, Malaysia and Museum of Vancouver, Canada ...... 86 6.2.1 The development of Malacca Museum Corporation (PERZIM) ...... 87 6.2.2 The development of the Museum of Vancouver ...... 89 6.2.3 Comparing Malacca Museum Corporation and Museum of Vancouver ...... 90 6.3 RQ1: What are the main operational issues for Malaysian creative economy enterprises? ...... 94 6.4 RQ2: What is the development path for the Malaysian creative economy enterprises? ...... 106 6.5 RQ3: How do Malaysian creative economy enterprises utilise traditional Malaysian cultural assets? ...... 109 6.6 RQ4: How can Malaysia position itself in the creative economy in the region? ...... 110 6.7 Conclusion ...... 115 7. DISCCUSSION OF CREATIVE ECONOMY DEVELOPMENT IN MALAYSIA IN THE CONTEXT OF TWO CASE STUDIES ...... 116 7.1 Introduction ...... 116 7.1.1 RQ1: What are the main operational issues for Malaysian creative economy enterprises? – Les’Copaque Production ...... 117 7.1.2: RQ1: What are the main operational issues for Malaysian creative economy enterprises? Malacca Museum Corporation ...... 125 7.1.3 RQ2: What is the development path for Malaysian creative economy enterprises? ... 130 7.1.4: RQ3: How do Malaysian creative economy enterprises utilise traditional Malaysian cultural assets? ...... 136 7.1.5: RQ4: How can Malaysia position itself in the region's creative economy?...... 143 7.2 Conclusion ...... 151 8. FINAL REMARKS ON THE DEVELOPMENT OF MALAYSIA’S CREATIVE ECONOMY ...... 153 8.1 Conclusion and Recommendations ...... 153 8.2 Creative Economy Development in Malaysia ...... 155 8.2.1 Cultural tourism in Malaysia ...... 156 8.2.2 Digital content sector in Malaysia ...... 159 8.2.3 Other important issues ...... 163 8.2.4 Malaysia’s position in the global creative economy ...... 165 8.3 Recommendations ...... 167 8.3.1 Recommendations for future researchers ...... 168 8.4 Study Limitations...... 169 Reference List ...... 170

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Appendix 1: Lat: The Kampung Boy ...... 189 Appendix 2: Malaysia Content Industry (Entertainment) Production ...... 190 Appendix 3: Interview questions for Les’Copaque Production Sdn. Bhd. (LCP) and Malacca Museum Corporation (PERZIM) ...... 191 Appendix 4: Interview questions for Les’Copaque Production Sdn. Bhd. (LCP) and Malacca Museum Corporation (PERZIM) Management ...... 192 Appendix 5: The “Sleepover @ the Museum Programme” at Malacca Maritime Museum Newspaper Article ...... 193 Appendix 6: QUT Ethical Clearance Approval ...... 195 Appendix 7: Cyberjaya the Capital City for Malaysia MSC Project Map ...... 196 Appendix 8: Cyberport the ICT city for Hong Kong ...... 197 Appendix 9: Les’Copaque Content Products – DVD and VCD Series ...... 198 Appendix 10: PERZIM Museums Listing until 2011 ...... 199 Appendix 11: Museum of Vancouver new vision and strategic plan for 2008‐2011 ...... 200 Appendix 12: Film Tourism Impact on Popular Locations ...... 201 Appendix 13: KRU Multilingual Epic Movie 2011: The Malay Chronicle: Bloodliners ...... 202 Appendix 14: Number of Visitors to Malacca Museum Corporation (PERZIM) Museums for the Year 2000‐2010 ...... 203

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List of Tables and Figures

Table 1.5.1: The relationship between cultural and creative forms of tourism ...... 6 Figure 2.2: Domains of creative activity ...... 13 Table 3.2: The Top 10 international tourism destinations in 2009 ...... 27 Table 3.2.2: MSC Milestone and Targets ...... 33 Table 3.2.3a: Importation of Films in Malaysia from 2005-2011 (January) ...... 35 Table 3.2.3b: Malaysia Local Film Production Statistics 2003-2010 ...... 36 Table 3.2.7: Consensus and Controversy Relating to Globalisation ...... 44 Table 4.3: The Differences and Similarities between Les’Copaque Production Sdn. Bhd. and Malacca Maritime Museum...... 52 Figure 5.3a: Les’Copaque Production 3D Animation Movie Poster ...... 64 Table 5.3: Respondents Profile for Les’Copaque Production Sdn. Bhd...... 65 Figure 5.3b: Dress theme day “Headwear” ...... 67 Figure 5.3c: Les’Copaque Production Operation Building in Shah Alam ...... 69 Figure 5.3d: Les’Copaque main characters consisted of three major ethnic in Malaysia ...... 70 Table 5.4: RQ3 - Animated films produced in Malaysia ...... 77 Figure 6.2.3: Museum of Vancouver ...... 92 Figure 6.3a: Port De Lama Replica Ship in Malacca ...... 94 Table 6.3: Respondents Profile for Malacca Maritime Museum ...... 95 Figure 6.3b: Sleepover@ Museum program at Malacca Maritime Museum ...... 99 Figure 7.1.1. Boboiboy 3D animated television series produced by Animonsta Studio ...... 122 Figure 7.1.2: Popular attractions in Malacca: Taming Sari Tower and Eye on Malacca ...... 128 Figure 7.1.4: Saladin produced by MDeC and Al-Jazzera ...... 141 Table 7.1.5: Domains of Creative Activity (Modified) ...... 149 Figure 7.1.5: Alamaya: Garden of Beautiful Creatures by Shock3D ...... 150 Figure 8.2.2: Computer game character by Igloo Digital Arts ...... 162

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Abbreviations and Glossary

3D 3 Dimension AM Bank Arab Malaysian Bank ASEAN Association of Southeast Asian Nations ASTRO All-Asian Satellite Television and Radio Operator ASWARA National Arts, Culture and Heritage Academy CEO Chief Executive Officer CFZ Cyberjaya Flagship Zone CGI Computer Generated Imagery CPM Communist Party of Malaya CUCMS Cyberjaya University College of Medical Sciences DCMS Department for Culture, Media, and Sport FINAS National Film Corporation Glocal A mixture between global and local culture ICT Information, and Communication Technology ICOM International Council of Museums IP Intellectual Property IT Information Technology LCP Les’Copaque Production LUCCT Limkokwing University College of Creative Technology MDeC Multimedia Development Corporation METI Ministry of Economy, Trade and Industry MICC Ministry of Information, Communication and Culture MITI Ministry of International Trade and Industry MMM Maritime Museum Malacca MMU Multimedia University MOHE Ministry of Higher Education MOSTI Ministry of Science, Technology and Innovation MoTOUR Ministry of Tourism MoV Museum of Vancouver MSC Multimedia Super Corridor PCT Patent Cooperation Treaty PERZIM Malacca Museum Corporation PETRONAS Petroliam Nasional Berhad

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R&D Research and Development RTM Radio Television Malaysia SMEs Small Medium Enterprises UiTM Universiti Teknologi Mara UM Universiti Malaya UN United Nations UNCTAD United Nations Conference on Trade and Development UNESCO United Nations Educational, Scientific and Cultural Organisation UniKL Universiti Kuala Lumpur UNIMAS Universiti Malaysia Sarawak UPM Universiti Putra Malaysia USM Universiti Sains Malaysia UTEM Universiti Teknikal Malaysia VCD video compact disc Vision 2020 Malaysia target to reach developed country status by the year 2020 WIPO World Intellectual Property Organisation WTO World Tourism Organisation Yang di-Pertuan Agong Malaysian King YTL Corporation Berhad Yeoh Tiong Lay Corporation Berhad ZHA Film Zahim Albakri Film

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1. THE CREATIVE ECONOMY IN MALAYSIA

1.1 Introduction to Creative Economy

The Multimedia Super Corridor is envisaged as the leading edge of a new national strategy for Malaysia to achieve the goals described in our country's vision 2020. (Mahathir, 1996a)

This chapter outlines the key themes of this study, and introduces the research problem and the research methodology. This is followed by background information on the development of creative economy in Malaysia, along with a brief introduction to cultural tourism and creative content industries. The final section provides a chapter outline.

According to United Nations Conference on Trade and Development (UNCTAD) (2004; 2008), creativity and innovation have reshaped the overall pattern of cultural production and trade worldwide (UNCTAD 2008, iii). In fact, all sectors of the economy now need to address these elements to stay competitive and sustainable. Countries such as the United States (US) and United Kingdom (UK) are at the forefront in these sectors, while developing nations in Asia and Africa regions are significantly behind.

With the intervention of the United Nations (UN), however, more focus has been given to developing regions. Nevertheless, data on developing nations is still problematic and considerably limited. Many countries differ in their understanding of the creative economy (UNCTAD 2008, 4) which at times has led to the use of different terms, including cultural economy, and experience economy. UNCTAD (2008) has noted the problems in defining this concept lay in its multi-disciplinary nature, situated amid economics, culture and technology.

Due to the infancy of this concept as a policy idea rather than an academic field, research on this topic has concentrated on certain countries and on a limited scope. UNCTAD (2008, 16) reported that the development of policy has been active in developed countries for the past ten years; for developing countries, however, development and recognition has been more recent. Gibson and Kong (2005) identified the uneven geographies of academic work, and the need for future study to move beyond an American or European focus. Work by Barrowclough and Kozul-Wright (2008) (Africa), Keane (2007) (China), and UNCTAD (2004; 2008) (developing nations in general), has sought to redress this imbalance by focusing on developing nations. Further research is much needed.

This study adopts the broad definition coined by UNCTAD (2008, 4) on creative economy:

...an evolving concept based on creative assets potentially generating economic growth and development; it can encourage income generation, job creation and export earnings while promoting social inclusion, cultural diversity and human development; it embraces economic, cultural and social aspects interacting with technology, intellectual property and tourism objectives; it is a set of knowledge-based economic activities with a development dimension and cross-cutting linkages at macro and micro levels to the overall economy; it is a feasible development option calling for innovative multidisciplinary policy responses and interministerial action; and at the heart of the creative economy are the creative industries.

Although a consensus on the definition of creative economy is still subject to an ongoing debate, there seems to be a common ground on the two most important/significant elements of the concept; namely, creativity and industries. In other words, creative economy is the umbrella for creative and cultural activities. Hence, this study examines the term creative economy as it is used and applied within the Malaysian context, and is illustrated by two case studies. Additionally, this study uncovers issues pertaining to the development of a creative economy. Whilst other terms used to describe aspects of the creative economy such as, content, cultural and experience industries may be used where appropriate, this research focuses on creative economy as an inclusive term with a wide international mandate.

1.2 Research Problem

The creative economy in Malaysia is the primary focus of this research, and involves data from two case studies conducted in Malaysia. The Malacca Museum Corporation (PERZIM) is a long standing public cultural organisation that is embarking on a renewal strategy on their museums. Les’Copaque Production (LCP) is a new digital animation company situated within the Multimedia Super Corridor (MSC). These two cases are compared with similar sites in Hong Kong and Vancouver.

The main objective of this study is to explore the key issues underlying the creative economy through the development of two relevant sub-sectors—namely cultural tourism and creative industries sectors—as experienced by two organisations in Malaysia. As the concept of a creative economy is an area which is still under researched in Malaysia, this study hopes to illuminate and provide further insights into the subject matter that can contribute to the exiting body of knowledge. Therefore, the following four research questions will be investigated:

RQ1: What are the main operational issues for Malaysian creative economy enterprises?

RQ2: What is the development path for Malaysian creative economy enterprises?

RQ3: How do Malaysian creative economy enterprises utilise traditional Malaysian cultural assets?

RQ4: How can Malaysia position itself in the creative economy in the region?

RQ1 is answered in the forms of seven themes arising from the interviews with key informants in each case. For RQ2, RQ3 and RQ4 are answered holistically, based on the comparative analysis of similar cases of this study in Hong Kong and Vancouver, as well as the key informant interviews and desktop research.

1.3 Research Methodology

To date, research into the creative economy in Malaysia has been poorly documented. This research utilises qualitative methods, case studies and face-to-face interviews. In particular, case study methodology has been chosen to examine how LCP and PERZIM develop their products and services.

Secondary data also is used throughout the research process, and consists of the official websites of LCP, PERZIM and other Malaysian government and private organisations involved directly in this study, including the Ministry of Information, Communication and Culture (MICC) and Multimedia Development Corporation (MDeC). Other documents also are consulted, including the Malaysia Multimedia Super Corridor (MSC) policy document, and United Nations Conference on Trade and Development (UNCTAD) and United Nations Educational Scientific and Cultural Organisation (UNESCO) reports. Analysis of these materials identified the key issues and themes related to the case studies, and assisted in formulating interview questions posed to the respondents. This revealed detailed information about their experience in the development of creative sectors in Malaysia.

Earlier, pilot case studies were undertaken to choose the two most suitable organisations for this topic. LCP and PERZIM were selected because they fit the criteria set by this study. The former is a private animation production company, and the latter is a state government museum corporation. To remain competitive in their respective markets, both organisations use a combination of culture, creativity, innovation and technology in their products and

3 services. As a result, currently they are the leading market players in the country, and in the Southeast Asian region. More discussion and justification for choosing the two case studies is presented in the methodology chapter.

The mixed methods used in this research will overcome the weakness of using a single method. Value can be added to a study by the use of a mixed method approach as it can give greater depth and breadth in a local context of an otherwise generic framework (Mactavish & Schleien 2000).

1.4 The Development of Creative Economy in Malaysia

UNCTAD (2008) has identified Malaysia as one of the top cultural producers among developing countries such as Indonesia, Nigeria and Vietnam. The former Malaysian Information Minister, Ahmad Shabery Cheek was perhaps among the first person to mention the term creative economy in a television interview for the inaugural Creative Industries Conference in 2009 organised by the ministry:

We hope the word C-Economy (creative economy) will become a household word in the society. We will monitor the progress of the C-Economy in the country and this is a platform that we have built. (Bernama 2009)

In Malaysia, the development of creative industries revolves around the knowledge-based economy, with special focus given on multimedia, innovation and technology areas initiated by the government. The Multimedia Super Corridor (MSC) mega-project launched in 1995 is identified as one of the core elements for the growth of technology sectors in the country. The government had invested billions of Malaysian ringgit in several projects, including: MSC, Cyberjaya City; Technology Park Malaysia; Smart Schools; and Borderless Marketing. A part of the MSC mega-project, Cyberjaya City will act as a creative activities zone, and an export processing zone for foreign multinationals and export oriented domestic firms. This development is in line with the vision set by the fourth Malaysian Prime Minister, Mahathir Mohamad to make Malaysia a developed country by the year 2020. However, compared to her neighbours in the Asian region for example; Singapore and Indonesia, Malaysia is far behind in the development of their creative industries (Vicziany & Puteh 2004).

1.5 Cultural Tourism

Cultural tourism activities are a combination of cultural and tourism sectors. The phrase cultural tourism, however, was not used until 1992 (Stebbins 1996). The White House Conference on Travel and Tourism defined cultural tourism as “travel directed toward experiencing the arts, heritage and special character of a place” (as cited by Heritage Tourism National Trust 2002). From this definition, the key idea about cultural tourism is about “experiencing” the products.

The World Tourism Organisation (WTO) (1985) defined cultural tourism as the movement of persons for essentially cultural motivations (study tours, performing arts, and cultural tours), travel to festivals and other related events. Due to the rapid changes taking place around the world, more authors seem to include experience in their definition of cultural tourism. For example, National Assembly of State Arts Agencies (2005) defines cultural tourism as the mosaic of places, traditions, art forms, celebrations and experiences that portray a nation and its people. The element of experience plays a primary role in cultural tourism, and demonstrates a close connection between cultural tourism and experience industries. In countries such as Sweden and Switzerland, cultural tourism is categorised under experience industries (Nielsen 2004, 20). In-depth discussion about this close connection will be presented below.

Cultural tourism has been a major contributor to the tourism industry for more than twenty years, and plays an important role in the economies of many developing nations (WTO 2004). Rich cultural resources in developing countries are creative assets, and their use can enable developing countries to create their own unique cultural identities and products, which can be exported globally to reap economic and social benefits and increased participation in the global economy (UNCTAD 2008, 16). Therefore, many governments worldwide are now promoting their cultural tourism assets for the immense potential contribution to their economy (Heritage Tourism National Trust 2002).

Currently, cultural tourism products like arts, handicrafts, and traditional music are becoming more innovative. A substantial gap exists in the academic literature on this topic in relation to developing nations. Some research has attempted to marry aspects of cultural tourism and creative industries, which consequently led to the conceptualization of the term creative tourism, first introduced by Richards and Raymond (2000). However, further clarification is

5 needed to better understand this new concept, and the relationship between the two core elements that contribute to it.

1.5.1 Creative Tourism

In a global environment where tourists demand and expect first hand delightful and memorable experiences, the tourism sector needs to improve products and ensure that they inject some creative elements in order to remain competitive and sustainable (Richards & Wilson 2006). Smith (2007, 8) also notes that many countries have limited heritage attractions to develop or promote, therefore the focus on contemporary, experiential and creative tourism becomes of pivotal importance. Richards and Raymond (2000, 18) defines creative tourism as:

...tourism which offers visitors the opportunity to develop their creative potential through active participation in courses and learning experiences which are characteristic of the holiday destination where they are undertaken.

The term creative tourism demonstrates the relationship between cultural and creative forms of tourism, and is seen as a means to sustain the competitiveness of cultural tourism products. See Table 1.5.1

Table 1.5.1: The relationship between cultural and creative forms of tourism

Primary time Primary cultural Primary Primary focus focus consumption learning focus focus Cultural tourism Past & present High culture, Product, Passive popular culture process Creative spectacles Present Arts, performance Performance Passive

Creative spaces Present & Arts, architecture, Atmosphere Interactive future design Creative tourism Past, present, Creative process Experience, Active skill future co-makership development (Richards & Wilson 2006)

1.6 Creative Industries: A Discussion

The most cited definition of creative industries is that offered by the Department for Culture, Media, and Sport (DCMS), UK (2001), which defines creative industries as “those industries that are based on individual creativity, skill and talent. They are also those that have the potential to create wealth and jobs through developing intellectual property.” The creative industries include advertising, architecture, art and antiques markets, designer fashion, film and video, music, and software (DCMS 2001). Similarly, the Sweden Knowledge Foundation in Nielsen (2004) defines experience industry as “a collective term used to describe people and businesses in creative professions whose main purpose is to create and/or supply experiences in various forms”. This term has 13 sub-categories, including architecture, design, film/photography, visual arts, literature, advertising, media, fashion, music, culinary arts and meals, performing arts, tourism and experiential learning.

UNCTAD (2004; 2008 12-13) broadly classifies creative industries into four areas:

i) Heritage – traditional cultural expressions and cultural sites ii) Arts – visual arts and performing arts iii) Media (not including new media) – publishing and printed media and audiovisuals, and iv) Functional Creations – design, new media and creative services.

This classification shows the intersections between culture, tourism and creative industries sectors that guide this study’s exploration of creative sectors in developing countries, particularly in Malaysia. The creative industries comprise a whole range of often overlapping organisations, products, and disciplines (Cunningham 2004), such as art, culture, and entertainment. Cunningham shows the close connection between these three sectors, particularly in developing nations, which tend to include culture and heritage when formulation their definition of the creative industries. While it seems self-evident that culture, tourism and creative industries are inter-connected, research examining their relationship is rare in developing countries.

Most research based on developed countries has omitted cultural tourism (such as heritage tourism) from being part of their creative industry (Cunningham 2002). Developing nations may not have the creativity, innovation and technology resources offered by the developed countries; nevertheless, this lack is compensated by the abundance of rich cultural resources

7 that can be used as a platform to develop their creative industries, and to compete with the developed countries (UNCTAD 2008). Furthermore, significant findings demonstrate that some developing countries, mainly in Asia, have started benefiting from the dynamism of the global creative economy, and are establishing tailored, cross-cutting policies that enhance their creative industries (ibid. 2008, 5). However, many authors have challenged the UNCTAD report, mainly for its very broad definition of creative industries.

1.6.1 Creative Industries and the Cultural Industries

Heated arguments persist between cultural and creative industries theorists. Some argue that creative industries are exploiting cultural products for commercialisation purposes (see O’Connor 2007); others claim that cultural products simply are part of the creative industries (Hartley 2005). Yudice (2003, 1) cautioned that even though culture is a resource, it should be treated as more than just a commodity, and offered the example of Brazil, where culture has reduced social conflicts and can lead to economic development for the community in slum areas. This research uses an anthropological definition of culture, which sees the concept as that is more value-neutral and analytic, and can be found everywhere and not just in the high arts or in western “civilisation” (Smith 2001, 2). As the central focus of this study is on the developing nations, particularly in Malaysia, this broad idea of culture is suitable for this research.

1.6.2 Creative Industries and the Experience Industries

The creative industries are also known by other terms, including: experience industries (Sweden), cultural industries (UNESCO), cultural sector and cultural industries (The European Commission), cultural industries (China), content industries (Japan), and entertainment and media industries or copyright industries in the US (Nielsen 2004, 6).

The two definitions of creative and experience industries have close similarities, but differ in their sub-categories. In creative industries, only certain cultural products are considered as core products, while the rest, including tourism, are categorised as related areas. In the experience industries, culture and tourism are considered to be core areas. To some extent, perhaps, experience industries are more appropriate for consideration by the developing countries, which normally categorised their culture and tourism activities as part of their creative industries.

The concept of experience industries is a relatively new phenomenon (Darmer & Sundbo 2008, 1). Activities such as leisure, tourism, culture, marketing, and the Internet are part of the experience industry because they demand a fee from customers for a real service, good or commodity (Pine & Gilmore 1998). According to, an experience is created when a company deliberately uses services as the stage, and goods as props, to connect individual customers in a way that creates a memorable event, and subsequently charges fees (Pine & Gilmore 1998). The bigger picture of experience industries stems from the concept of the experience economy. In simplified terms, experience economy refers to society in general, while experience industries cover a limited number of industries such as the media, advertising and computer games (Nielsen 2004, 8). O’Dell (2005, 19) argues that tourism and the experience economy are within the same formula: as a commodity of tourism, culture is constantly being packaged and sold to us in terms of such things as difference, otherness, heritage, cultural identity, song, dance, music and art (see also Bryman 2004; Baerenholdt, Haldrup & Larsen 2008). This study examines the cultural product used by the tourism industry to attract tourists to visit attractions with creativity as an added value to the attractions or also known as cultural reconversion introduced by Cancilini (1992, 32). Disney Land and Disney World in the US are examples of how tourism uses culture and creativity to attract a significant number of tourists to visit a place, and to providing a unique and distinct experience.

1.7 Research Outline

This thesis is divided into eight main chapters. The first chapter introduces the creative economy in Malaysia, and presents a snapshot of its background and the directions of recent studies. There are six subsections in this chapter.

The second chapter discusses literature about creative sectors worldwide, and has four primary subheadings. Key literature on topics such as creativity, culture, and innovation are identified and discussed. Based on the literature discussion, the study finds there is a significant gap in the literature about creative sectors in developing countries.

In chapter three, therefore, special attention is paid to the development issues of creative economy literature in Malaysia and other developing countries. The novelty of this topic in developing countries, means that this chapter serves the purpose of providing sound knowledge about the history and current issues facing these countries. The recent development of creative sectors creates many underlying issues that need further

9 examination. The UNCTAD special report on creative economy in 2008 on developing countries is used as the central guideline in this sector.

The next chapter caters to research methodology, provides more detail on the techniques implemented in investigating the topic, answers the four research questions, and explains how and why these techniques are adopted.

Chapters five and six compile the interview results from the two case studies. Seven themes identified to represent the responses. There are five major areas covered in chapter five, while there are four themes for chapter six. Comparison between the organisations in Malaysia and similar cases in Hong Kong and Vancouver also are presented. Chapter seven analyses and discusses the data obtained from the case studies.

The final chapter of this research presents the conclusions and recommendations. The first two sections will discuss the conclusions, followed by suggestions to Malaysian stakeholders and public on how to overcome the development issues of the country’s creative economy. This study found that while the potential of creative sectors are significant, the accompanying high risks involve an unpredictable future. Further, while Malaysia has rich natural resources, the country is still lacking in advanced technology. The last segment of this chapter discusses the limitations of this research project.

2. THE LITERATURE ON CREATIVE SECTORS

2.1 Introduction to the Creative Economy

We are now embarking on a new quest to position Kuala Lumpur as one of the creative hubs of the world, to be parallel with the mega cities of London, Milan, Los Angeles, Tokyo and even our next-door neighbours Bangkok and Singapore. As we enter the creative economy spotlight, we can show ourselves as not only emerging as the new creative hub within the region but even more importantly, helps to sustain the economic growth and development of the city. (KL Design Week 2010)

This chapter separates the issues surrounding the concepts of creative economy and creative sectors into four subheadings. The first section presents domains of creative activity model, and introduces the concept of economic creativity. The chapter finishes by addressing the concepts of technological creativity and cultural creativity.

The rapid evolution of information, communication and technology (ICT) has brought profound changes in lifestyles worldwide. Not all countries have equal ICT facilities and growth. Subsequently, the United Nations Conference on Trade and Development (UNCTAD 2008, iii) has recognised that it is time for the world to go beyond economics, and look for a more holistic development approach that considers different cultural identities, economic aspirations, social disparities, and technological disadvantages. As a result, the concept of a creative economy was identified by the UN in 2008. UNCTAD, along with other international agencies such as the World Bank, promote the need to bring issues relating to culture and technology into the mainstream of economic development thinking.

In this study, the term content and experience industry or cultural tourism is used to describe the development of the creative economy concept in Malaysia, which has adapted a model based on the experiences of many countries, including Japan, the US, and UK. Further, these two sectors reflect the case studies investigated by this research: products from content (animation) and experience (museum) industries.

Until recently, there has been lack of understanding about creative economies. In Malaysia the government has yet to implement a creative economy policy. Additionally, the government has no official definition of the concept. The first section of this chapter discusses the problematic concept of creative economy and creative industries with a focus on developing countries. A 11 domain of creative activity model from Mitchell, Inouye and Blumenthal (2003, 1) is introduced as the primary guideline for this thesis.

2.2 Domains of Creative Activity

In defining the term creative economy John Howkins (2001, 15) says that while creativity and economics are not new, the nature and extent of the relationship between them, and how they combine to create extraordinary value and wealth is. Kong (2000) states that the important nexus between culture and economy is neither a recent development nor a novel inclusion in the social science agenda; for instance, the term, cultural industry has been established for more than two decades. As UNCTAD (2008, 5) reports, whether it is an old concept being recycled or totally a new concept, the creative economy contributes significantly to economic growth.

The definition of creative economy according to UNCTAD is applicable to all countries. In their special report focusing on developing countries, UNCTAD (2008, 15) identified five major contributions of the creative economy:

 it can foster income-generation, job creation and export earnings while promoting social inclusion, cultural diversity and human development;  it embraces economic, cultural and social aspects interacting with technology, intellectual property (IP), and tourism objectives;  it is a set of knowledge-based economic activities with a development dimension and cross-cutting linkages at macro and micro levels to the overall economy;  it is a feasible development option calling for innovative, multidisciplinary responses and inter-ministerial action; and  at the heart of the creative economy are the creative industries.

Based on their report, UNCTAD concluded that developing nations can compete with developed countries. Further, there is no one-size-fits-all approach sector. For some developing countries such as Afghanistan, Bangladesh, Kenya and Somalia it would be more beneficial to concentrate on making the legal system, particularly copyright law, function more effectively (Schultz & van Gelder 2008).

Although there are widespread variations in the literature, many governments and policy makers have quickly adopted the concept in their policy development. Policy makers believe that the creative economy has significant potential as a means for their economies to grow

(Fleming 2007), as well as providing new employment opportunities. Kong et al (2006) point out that much of the economic transformation in the USA and West Europe over the last three decades is due to cultural economy (another term used for creative economy). Many developing countries in Asia wish to follow this model, but the Western discourses of creative economy may not be workable in Asian countries. For example in China, the ‘Western’ democratic model of creative industries needs to be modified to accommodate a top down authoritarian structure. Although Chinese authors such as Li Wuwei (2011), believes China is experiencing the same creative development phases as what other Western developed countries experienced, Keane (2011, p xiv) argues that different regions in China interpret the idea of creative industries according to their needs and resources with traditional culture being the core element. In developed countries the emphasis is more concentrated on new media, user-created content and consumer productivity.

In Beyond Productivity, Mitchell, Inouye and Bluementhal (2003, 1) provide an alternative way of examining the issues, by advancing four primary creative domains: scientific; economic; technological; and cultural creativity. These domains—shown in figure 2.1—are tightly coupled; activity in one direction depends on parallel activities in other sectors and disciplines (ibid. 22). The main characteristics of creative activity identified are shown in interacting domains that are important for the growth of strong creative sectors.

Scientific

Creativity

Technological Creativity

Economic Cultural

Creativity Creativity

Figure 2.2: Domains of creative activity (Mitchell, Inouye & Blumenthal 2003, 22).

2.2.1 Scientific, Economic, Technological, & Cultural Creativity

Discussions of scientific creativity can be traced to the 1960s (Lehman 1960; Barron and Taylor 1963) in terms of its relationship with mathematics and medicine. Scientific inquiry begins with a combination of imagination and observation (Hu & Adey 2002). Mitchell et al. (2003, 18) mention that in science and mathematics, the primary fundamental outcome of creative intellectual effort is in contributing “new knowledge”. In general, they believe scientists and mathematicians are clear on the difference between “new knowledge” and that which results from incremental advances within established intellectual frameworks. The success of scientific creativity may lead to technological innovation and economic growth, and can inform cultural values. While scientific creativity is not within the scope of this study, the importance of scientific creativity is acknowledged, and there is a close alliance between it and the other three domains: economic, technological and cultural. Technological creativity has taken an important global role through the growth of information and communication technologies (ICT). Cultural creativity—through works of arts, design and heritage—is based on traditions and values, and provides rich experiences to communities.

In Malaysia, the creativity domain is regarded as a key issue. In the education sector, courses relating to culture, technology, economics and sciences, are a central part of the educational system. However, courses on animation, creative writing, and sound engineering have been offered only since the late-1990s. The number of public and private academic institutions featuring such programs has been growing substantially. There are more than ten Malaysian universities—including Aswara, UiTM, University of Malaya [UM], UTAR, LUCT, Malaysia Multimedia University [MMU], and Universiti Malaysia Sarawak [UNIMAS])—with faculties, centres, and departments that include the word “creative” in their names.

2.3 Economic Creativity

UNCTAD’s (2008) definition of creative economy notes a close link to economic creativity as defined by Mitchell et al (2003). Fresh ideas are needed in the twenty-first century in order for countries to sustain their economy and become competitive. Countries lacking in natural resources can compete in other ways. For instance, Singapore is a small country with few natural resources, but the country has managed to reach a developed status within a short period of time through technological development (Teo & Huang 2005, 593). The next step for Singapore is to enhance the creativity of its population. Traditional economic development that

14 highly depends on commodities and manufacturing may no longer be the only way to generate income.

Creativity is recognised in assisting the growth of a nation. Entrepreneurship brings ideas, talent and capital together in innovative ways, and creates and markets products and services that are the core foundation for the growth of economic creativity (Mitchell et al. 2003, 18). In information technology and biotechnology fields, close alliances emerge between the institutions of technological innovation (such as research universities) and entrepreneurial activity, where each one requires and motivates the other. This is particularly evident in fast moving, high technology economic clusters, such as the information technology cluster in Silicon Valley or the biotechnology cluster of Cambridge, Massachusetts (ibid.). Thus, economic creative is closely linked to technological and cultural aspects. Although the development of economy may not depend on technology and culture, both play a major role.

2.3.1 The Differing Creative Economies in Developing Nations

Realising the problematic definition of creative economy, UNCTAD (2008, 12) has formulated a wider definition that covers all aspects of creativity and economic forms. UNCTAD argues that developing nations have capabilities and substantial potential for developing their creative economy, and should use all available resources to realise social and economic benefits. UNCTAD (ibid.) identified developing countries—such as China Indonesia, Iran, Pakistan, Malaysia and Turkey—that are key producers of creative commodities. This report is now a guide for many developing countries formulating creative economy policies.

Among developing nations, Indonesia is among the few nations that have developed and detailed creative economy plans. In 2008, the Creative Economy Development 2025 strategy was unveiled, with the vision to make Indonesia a nation with a quality of life and creative image favourably comparable to the rest of the world (Indonesia Department of Trade 2008). The government’s mission aims to empower Indonesia’s citizens to become a main source in their nation’s development, and to:

 increase the contribution of the creative industries to Indonesia’s GDP;  increase export of products/services based on creativity, which is enriched from local value and contemporary spirit;  increase competitive companies of creative industries;  focus on the sustainability of resources;

 creation of economic value from creative innovation, including from local value and cultural heritage;  development of creative zones/clusters in potential areas;  strengthen creative images on products/services to attain “National Branding”.

For some western countries, Asia’s economic expansion is a threat. The positive development of the economy in the Asian region has provided a stimulus for cultural development (Mahbubani 2008, 26). As Rohwer (1995, 17-18) has pointed out, many Asian countries have been good at putting together the elements that contribute to economic growth, particularly in relation to manufacturing.

Developing nations have a potential to develop their creative economy. Most developing countries depend heavily on their natural resources. Consequently, their definition and understanding of creative economy emphasise arts, handicrafts, heritage, museums and traditional performances. Some developing countries such as China, Indonesia and Malaysia are starting to implement new technologies to enhance their creative sectors, but their substantial strength is still on their natural resources.

2.3.2 Creative Industries: New and Untested Ideas

Today, more developing countries are starting to develop their creative economy with local elements added. The UNCTAD Report (2008) has guided the growth of their creative economy sectors. However, some scholars argue that creative economies exhibit more of a top down approach from the government to the public. This can be seen in many countries, in particular, Singapore (Lee 2010) and China (Keane 2007).

The implementation of policies has raised concerns from Oakley (2004), who argues that the use of creative industries as a single weapon to turn around economically-depressed regions risks creating polarised and unsustainable economic development. Further, the sustainability and success of creative industries cannot be disconnected from cultural policies. Mitchell et al. (2003, 19) argue that many subsectors of creative industries could hardly be called creative in any sense.

In 2001, a report by the United Kingdom’s Department of Culture, Media, and Sport (DCMS) claimed that creative industries contributed over 112-billion-pounds revenue and offer 1.3- million job opportunities in the UK. However, since subsectors of creative industries are

16 multifaceted, the figures reported by DCMS are sometimes disputed. In his analysis of the effectiveness of creative industries policy-making in the UK, Garnham (2005) criticises the DCMS strategy as making statistics look impressive to the Treasury by turning public cultural goods into commodities.

To some extent there are similarities between Asian and European nations. De Berranger and Meldrum (2000) state that at a European level (except for the UK), creative industries include heritage, literature, the press, music, the performing arts, visual and audio-visual media and socio-cultural activities. A similar scenario occurs in developing countries, where the majority of creative industries emanate from deeply-rooted cultural traditions (Cunningham, Ryan, Keane & Ordonez 2004). Due to the newness and diversity of this sector, many policymakers are still looking for the right formula to best develop their creative industries. With growth so important in advancing the cause of the creative economy to governments, there are now many overlapping subsectors; for instance, culture and heritage sectors are considered as part of the tourism industry in some countries like China, Malaysia and Thailand.

Growth depends heavily on political environments. Each country has different cultural barriers, financial strengths and political environments which may act as barriers to development (Cunningham et al. 2004). With a majority of creative companies being small and medium enterprises (SMEs), these companies face a tough road to success. However, with the assistance from world organisations such as UNCTAD (for creative economy and creative industries), UNESCO (for culture) and the World Bank, these companies at least have some direction. The next section will discuss further about SMEs relating to creative industries.

Small and Medium Enterprises (SMEs)

There are many definitions of SMEs, generally based on the number of employees, total net assets, sales, and investment level. The most common definition, according to Ayyagari, Beck and Demirguc-Kunt (2003), involves staff numbers; many sources define SMEs as having a cut-off range of up to 250 employees. De Berranger and Meldrum (2000, 1828) state that SMEs have wide variations in factors such as size, location and industrial sector. Since most creative industries companies employ less than 250 staff, they are predominantly SMEs. Nonetheless, the data on SMEs is limited (Ayyagari et al 2003, 3) and most research focuses on manufacturing companies and on developed countries. More research is needed on SMEs, particularly on creative industries in developing countries, where the industries are poorly

17 documented. This study addresses this issue by focusing on the establishment of SMEs in the animation sector in developing countries, specifically in Malaysia.

According to the DCMS Report (2001), the majority of creative industries key players are freelance, and SMEs. Leadbeater (1999, 49) states that:

Creative industries, such as music, entertainment and fashion, are driven.....not by trained professionals, but cultural entrepreneurs who make the most of other people’s talent and creativity. In creative industries, large organisations provide access to the market, through retailing and distribution, but the creativity comes from a pool of independent content producers.

Freelancers, small, and micro-businesses provide an extremely substantial part of the overall employment in creative industries sectors (O’Connor 2007). McGray (2002) points out that in Japan, the recent recession may have stimulated Japan’s young entrepreneurs to start their own businesses and experiment particularly in art, music, and other risky endeavours. Many small businesses have emerged in fashion, magazines, music labels and music clubs. Larger companies are starting to support these small businesses because of their substantial presence (ibid.).

The Malaysian government has stressed the crucial role of SMEs in achieving their vision for 2020 (Foong 1999, 81). Consequently, they are promoting and upgrading Malaysian SMEs to provide a strong and competitive industrial foundation. As a result of the poor understanding about SMEs in Malaysia, particularly in creative sectors, not much data is available. This study is therefore timely.

2.4 Technological Creativity

Many authors have identified that creativity, innovation and technology are closely linked (see Florida 2005; Richard & Wilson 2006; Roodhouse 2006; Smith 2007). Mitchell et al. (2003) establish that in engineering, and in technology-based industries, creativity is the core element for technological inventions. These inventions can create commercially successful products, improve quality of life, and encourage the generation of income streams through intellectual property licensing. In addition, technology has been implemented in all sectors and aspects of human life, from culture, entertainment, education and finance, to health, hospitality, and transportation (see Allenby 2006). But advances in technology have made consumers more demanding.

There has been considerable debate among scholars about the original meaning of creativity, which traditionally relates to art and artisans (Banks et al. 2002). Yet many discussions of creative industries consistently mention technology. Sectors such as animation, digital content, and entertainment (music and films) are dependent on technological innovations (Yusuf & Nabeshima 2005). As pop music groups from Japan and South Korea hit the Asian market, many made innovative use of technology. McGray (2002) mentions a Japanese band called Lipless X Sister, whose members wore stylish western fashion and hair styles, and were popular for their dance routine called “Para Para”, which has a resemblance to “the Macarena”. The band featured few traditional elements. Technology can assist the growth of sectors, especially as the infrastructure is now cheaper than ever before, thus providing catch- up advantages for developing countries.

Many economists agree that the Asian region has a significant potential to become a world economy power in the twenty-first century, particularly with the rapid development of China, India and Indonesia (Mahbubani 2008, 2). Countries like Japan and South Korea have been the economic leaders in Asia for the past two decades, and their influence in the world economy today relied on their technological infrastructure. Realising the importance of technology as leapfrog to economy transformation has made many governments in Asian region focus their attention on developing their technology. The establishment of megaprojects relating to technology transformation—including World Media Capital (China), Multimedia Super Corridor (Malaysia), Intelligent Island (Singapore), and Modern City (United Arab Emirates)—have been rolling out since the 1990s.

The influence of technology advancement from Japan and South Korean, in particular, is experienced globally. Brand names like Canon, Honda, Kia, Kodak and Samsung are household names. McGray (2002) pointed out that from the 1980s, Japan represented a new kind of superpower through their economic strength without using their army, and not needing to prop up puppet regimes, or fight proxy wars. Japan’s success has engendered confidence in other non-western countries to make Japan as their role model, and develop their own economies. Many Asian countries have followed Japan’s lead and launched closer networking with the Japanese government and companies. In Malaysia, locally produced cars, the Proton and Perodua, are both based on Mitsubishi and Daihatsu technology. Although there are differences in culture between Japan and other Asian countries, they shared significant similarities compared to other western countries (Milne 1986; New Straits Times 2009).

In Japan, it is reported by Yoshimoto (2003) that, their content industry has been identified by their government to have the potential to keep their economy sustained in the international 19 market. Due to the success of Japan and South Korean content industry followed by Singapore (although more of outside sources rather than their original products and services), more countries in Asia are upgrading their content industries facilities and infrastructure. The term content industry is used widely in Japan to describe creative industries. The power of the content industry is never to be underestimated, as it serves like a “soft power” for countries to promote their culture and countries to the world like Hollywood films do for the United States. China, in particular, is aggressively developing and promoting their content industry as their “soft power”.

2.4.1 Content Industry

One of the most prominent subsectors of the creative industries is the content industry; in some countries, this is a more familiar term. The content industry is discussed here in the context of Japan’s Ministry of Economy, Trade and Industry (METI), and this grouping includes films, music, game software, and animation (Yoshimoto 2003). By the early 1970s, Japan had emerged as the new power in content industry. Their products have been embraced internationally, and became a threat to the traditional content industry producers from western countries (McGray 2002). Asian countries, including Hong Kong, Japan and India, became pioneers in the region and broke into the global market with their content products. Previously, in the 1950s, children grew up with Mickey Mouse and Superman cartoons. However, the 1970s saw Japan introduce Ultraman (first created in 1966), followed by Doraemon (produced as a cartoon version in 1979), Mask Rider and many others. These appeared and competed with products from the developed countries (Kong et al. 2006; Yoshimoto 2003).

Japanese animation series and manga have been influential as “pop” culture since the 1980s, while Indian films and songs became one of the country’s most important exports to the world (Kong et al. 2006). Doraemon, Easy Rider, Pokemon, Narutto, and Ultraman are among the popular characters of Japanese anime or animation, which have been turned into other mediums like video games, and VCDs. For more than a decade, Japanese anime and manga have been translated into more than thirty languages and broadcasted in sixty-five countries (McGray 2002). Indian films and songs have been winning international recognition since the 1970s, and the country produces the highest number of films in the world. A.R. Rahman’s 2008 Academy Award for his original music, “Jai Ho” from the film Slumdog Millionaire encouraged more success. The South Korea content industry has provided significant impact in the global market, but more so in the Asian region. Middle Eastern films—from Afghanistan

Iran, and Turkey—have been well received in the European countries and won substantial major awards in Europe. The success of content industry products from these Asian countries has motivated other countries in the region to develop their own content industry. China, Kuwait, Malaysia, Singapore and Thailand are working hard to become key players in their region’s content industry, and their governments offer support and incentives to their local and international companies in order to open up their businesses to the content industries.

But the development of content industries in these countries does not proceed without criticism and some failures. In Singapore and Kuwait, for example, their content industries are focusing more on inviting international companies to establish their operations on the ground, rather than producing their own content products. As a result, Singapore managed to attract Hollywood film maker George Lucas to open his studio in the country, and many international publishing companies have opened branches. Singapore earnings from IPs generated a total of US$30.5-billion in output, and value-added US$8.7-billion to the economy in 2001 (Yue 2006). This has raised the issues of producing the output (processing) rather than the creative input, and the economic leakage that results from outsourcing.

By harnessing creative industries development through value-adding, content creation, interactivity, convergence, and new methods of storage and distribution, Singapore has achieved success (ibid.). Other countries in this region, including China, Malaysia, the Philippines and the UAE, have managed to attract many international content industry producers to establish offices in their countries. The region has become significantly competitive in attracting international investors in content industry with many attractive incentives. However, the substantial global competition of content industry means that products from Asia might need to shed their local “identity” in order to meet the global market appeal. This can be seen in many contemporary Asian films, music, television programmes and video games which are becoming more westernised. Western culture is spreading fast all over the world and the Asian region is also experiencing this phenomenon.

2.4.2 Cultural Creativity

Mitchell et al. (2003, 20-29) argue that cultural creativity manifests in the production of works of art, design, and scholarship. Like contributions to scientific and mathematical knowledge, such works are highly valued in themselves. Nations and cities take immense pride in their major cultural figures, their cultural institutions, and their cultural heritage. Thus, stakeholders are investing substantially in cultural sector. Many value the experience of producing as well

21 as consuming art, design, and scholarship. Not only high cultural practices, such as opera at the Metropolitan in New York City, but also popular practices, such as amateur photography, may be valued for the experiences they provide to the participant (ibid., 19). The important role of culture is obvious, but cultural creativity is necessary to ensure the longer lifespan of culture. Although traditional culture is appreciated, some customers look for a blend between modern and traditional culture particularly the younger generation (Allenby 2006). This is when creativity and technology play their major part to create a mixture of modern and traditional culture.

Contemporary cultural producers realise the importance of adopting modern technology in their products and services in order for them to remain competitive and sustainable. By implementing technology, they can attract more guests and visitors to experience their products and services. One cultural institution that has been forced to evolve is the museum sector. Traditional museums have experienced difficulty in attracting visitors compared to modern museums (including science parks), which adopt modern technology in their products and services (Awoniyi 2001). This action caters to the visitors’ demands for more engaging and hands-on experience. With rapid technological changes taking place globally, it is crucial for cultural producers to follow the latest innovations. Today, cultural operators and producers like museum curators need to provide products and services beyond the imaginations of visitors in order to offer new and different experiences (Goulding 2000). In recognising and responding to this new challenge, the museum sector role now can be considered part of the experience industries.

As the second case study of this research focuses on a local traditional museum corporation that is shifting its role to become a modern museum to provide better experience to their visitors, the concept of experience industries will be applied throughout this thesis. This offers a better understanding of the many dimensions of creativity. Banks et al. (2002) argue that it is best to move away from a fixation with the product of the individual “creative”, and to concentrate on organisational processes and relationships within designated creative firms. They believe if the term creative industries is to be used in any meaningful sense, then closer attention should be applied to the meaning of creative, and how creativity is defined and managed within organisations. More explanation about experience industries relating to cultural tourism products will be presented below.

2.4.3 Cultural Tourism

The World Tourism Organisation (WTO) (2004) reported that cultural tourism is one of the top three reasons people travel domestically or internationally, especially in developing nations in the Asian region. As a result, many countries promote cultural tourism to local and international tourists (Smith 2007, 2). In Cultural Reconversion, Cancilini (1992, 32) highlights the necessity for modern elements to be added to traditional culture to make it more appealing, and to sustain its place in the market. Some traditional cultural fundamentalists, however, have criticised these additions as an exploitation of culture, and that there is even a need for such cultural reconversion.

Cultural tourism products are a combination of traditional and heritage products. This often requires repackaging in order to attract the market. Imagination and modern technology combine to attract more visitors in areas including design, media and advertising, merchandising of celebrities, and souvenirs items. Some authors (see Chhabra, Healy, Sills 2003; MacCannell 1976; Cohen 1979) argue these modern elements in tourism lead to “staged authenticity”, particularly in products that involve performances such as cultural dances.

However, Murphy (2003, 262) argues that this can add value and create broad opportunities for cultural investment, and attract different markets. The outcomes include opportunities for local communities such as employment, new businesses, entrepreneurs and investors, and better support policy (UNCTAD 2008). Moreover, Baerenholdt et al. (2008, 197) argue that all cultures are constructions to some extent, and consequently are in a sense contrived or inauthentic; they are fabrications in the sense of something that has already been made, which is subsequently re-presented and re-performed.

In cultural tourism sector, developed countries seem to be more advanced in adapting innovation and modern technology to their products and services. Most important museums in Australia, Canada, Japan, Singapore, US, and UK have adopted interactive and technology- friendly innovation. By expanding their roles since the 1970s, these museums have roles that involve more than just preserving and displaying a cultural collection. American museum director, John Dana rejected the concept of museum as just a storehouse of collection as early as 1909, believing that a good museum attracts, entertains, arouses curiosity, and leads to questioning and thus promotes learning (see Alexander 1979, 13; Cleary 2006, 1). Also, museums need to blend well with their surroundings, and be accessible to the community

(Dana 1917, 25). Dana’s assertion has substantial echoes with the aims of contemporary museums. The International Council of Museums (ICOM) (2010) defines a museum as,

...a non-profit making, permanent institution in the service of society and of its development, and open to the public, which acquires, conserves, researchers, communicates and exhibits, for purposes of study, education and enjoyment, material evidence of people and their environment.

Museums in the US took almost fifty years to implement changes to their functions and roles in order to become more than just display collectable institutions (see Dana 1909). Today, the role of the museum is different from the function of a traditional museum, and many developing countries, including Indonesia and Malaysia, are shifting their direction towards the ICOM definition. Nevertheless, this shift is a slow process, and many developing countries are significantly lagging behind the west. The experience of the US in the early twentieth-century is now taking place in the developing countries. Some museums in developing countries are still operating using the traditional method, and some have difficulties adopting change. In Malaysia, these difficulties involve financial constraints; political problems (Kasiman 2010); and little or no access to networks of resources and expertise (UNESCO 2011). Although, these changes will not guarantee that the museum will have a larger number of visitors, they will move the museum to become more competitive in the market. However, it is not the intention of this study to investigate the function of modern museum, but rather to understand the global phenomenon taking place over of the role of museum in today’s world.

2.5 Conclusion

This chapter has examined the key literature informing this study. In the first section, I argued that the global creative economy is dependent on ICT. The concept of a creative economy was made popular by the UN in 2008, and increasing numbers of policymakers have adopted it for their countries, including Malaysia.

The following section discussed the multifaceted nature of this concept and the difficulties researchers have had in establishing a definition. Creativity and culture are acknowledged as the two most important elements in a creative economy. The UNCTAD Special Report (2008) brought new hope for developing nations to compete equally with developed countries by drawing on their rich cultural resources; but the Report’s definition of a creative economy has been criticised for being too broad, and for diluting the actual meaning of creativity. Recognising the lack of reliable theory about this concept, I chose Mitchell et al. (2003) the 24

Domains of Creative Activity Model as a primary guideline for this topic. The four domains are scientific, economy, technological and cultural creativity.

Finally, I conducted a detailed discussion on the domains of creative activity. For this study context only three activities were discussed due to their close alliance to this topic. Issues of each domain were presented accordingly. Economic creativity covers the difference between the understanding of creative economy in developing nations and developed countries, and the problem of unpredictable futures for some of the sectors. In terms of technological creativity, I focused on the content industry. The last section examined cultural creativity, specifically the influences and implications of cultural tourism.

3. CREATIVE ECONOMY DEVELOPMENT IN MALAYSIA

3.1 The Malaysian Experience in Developing a Creative Economy

He is the One GOD: the Creator; the Initiator; the Designer. To Him belong the most beautiful names. Glorifying Him is everything in the heavens and the earth. He is the Almighty, Most Wise. (Al-Quran 59:24)

The recent historical background of the creative economy development discourse in Malaysia forms the first section of this chapter. Following this is an examination of the animation and cultural tourism sectors, specifically museums. This discussion includes examples from other Asian countries. The final section focuses on globalisation and localisation.

For the last fifteen years, the Malaysian government has actively participated in developing their Information and Communication Technology (ICT) and media sectors, including animation, advertising and local television programs. Malaysia has moved from being a manufacturing-based economy to embracing service and ICT sectors, which have played a significant role in the economy since the 1990s. Some authors have described Malaysia’s ICT development agenda as one of the most ambitious in the world (refer Ratnathicam 2002), and recently, many government ministers have discussed developing cultural and media sectors following the models of their nearest neighbour, Singapore.

Today, the Malaysian government is giving much attention to the growth of content and technology sectors, a model that already has been implemented by Singapore. With limited natural resources, and relying on a fresh water supply from Malaysia, Singapore has managed to become a developed country through innovation and technology. The Singaporean government introduced the first creative economy policy in Asia in 2002 (Yue 2006), and has become an important hub for the world market to enter the Asian region.

3.2 Developing Malaysia’s Creative Economy

Compared with other important traditional economic sectors in Malaysia such as agriculture, and manufacturing, the creative economy is not well understood by the government and the public. Traditionally, the country has been known as the major exporter of commodities such as palm oil, rubber and tin (Ramasamy & Yeung 2006). Apart from the manufacturing-based 26 economy, the second largest contribution towards Malaysia’s economy has come from the tourism industry for more than two decades. Tourism arrivals grew from 10.22-million in 2000 to 17.55-million in 2006 (Ministry of Tourism Malaysia 2010); by the year 2020, Tourism Malaysia forecasts 30-million tourists (Ng 2010, 8). The country has managed to maintain its position as one of the Top 20 most visited countries in the world for many years (WTO 2007; 2008; 2009) as shown on table 3.2.

Table 3.2: The Top 10 international tourism destinations in 2009

Rank Country International tourist arrivals

1 France 74.2 million 2 United States 54.9 million

3 Spain 52.2 million

4 China 50.9 million

5 Italy 43.2 million

6 United Kingdom 28.0 million

7 Turkey 25.5 million

8 Germany 24.2 million

9 Malaysia 23.6 million 10 Mexico 21.5 million

(World Tourism Organisation 2010).

Arts, culture, and tourism policies have been introduced since the late-80s by the Malaysian government (Khalifah & Tahir 1997, 177-178), and now cultural and tourism sectors are well established. In 1991, the fourth Prime Minister of Malaysia, Mahathir Mohamed, announced his government’s plan (Vision 2020) to make Malaysia a developed nation. This speech marks the starting point of ICT development in the country (Vicziany & Puteh 2004), with the establishment of Multimedia Super Corridor (MSC) in 1996 focusing on the development of a knowledge economy (Gray, Minges & Firth 2002).

3.2.1 Vision 2020 and the Knowledge-based Economy

Developing a Creative Economy through the Knowledge‐based Economy and the MSC

The history of Malaysia’s knowledge-based economy started almost at the same time of Vision 2020. Cunningham (2002) states that a knowledge-based economy is one of the important parts in developing creative industries sector, which will then contribute to the growth of a country’s creative economy. However, only in the early-2000s, did the higher education institutions in Malaysia begin to offer programs that supported the development of a knowledge-based economy sector. The National Arts, Culture and Heritage Academy (Aswara), Limkokwing University of Creative Technology (LUCT), Universiti Malaya (UM), Universiti Teknologi Mara (UiTM) and Universiti Sains Malaysia (USM) are among the first public and private universities to offer academic programs relating to arts, creative writing, dance, design, drama and ICT programs at diploma and higher degree level. Although UM, UiTM and USM offered courses relating to arts, design and culture since 1970s and 1980s, however their approach was more inclined towards preserving cultural traditions rather than integrating culture with the knowledge based-economy. Further, investment in arts, design and culture at these universities during those days was insignificant compared to pure science and economics disciplines. The amount of research funding allocated by the Malaysian government from 1996-2000 to arts and cultural field was substantially low compared to other disciplines (Lai & Yap 2004). A dominant feature of national policy promoting this development is the government’s emphasis on information technology. Mahathir predicted that Malaysia would be "a pioneer in electronic government, a multimedia-networked paperless administration when the MSC becomes a reality by the year 2000" (The New Straits Time, 1996, 2).

Each year, the Malaysian government and private agencies have sponsored thousands of students to obtain their tertiary education abroad, particularly for undergraduate courses that provide skilled human resources. The significant development of the education sector is in line with the Malaysian Ministry of Higher Education (MoHE) policy to make the country’s education sector competitive, and attract more international students to study in the country. According to Cunningham (2004), every economy, large or small, can enter into the knowledge-based economy because it is based on competitive advantage, rather than traditional comparative advantages. Unfortunately, knowledge-economy is narrowly defined among the key players in Malaysia in terms of science and technology (IT or ICT), with high-

28 tech activities and e-commerce playing a leading role (Evers 2003). As a consequence of this definition, there is confusion among the public about this sector and other related components. Jarman and Chopra (2007) argue that investing in knowledge-based economy infrastructure alone will not make Malaysia competitive in high value activities such as research, design and innovation because it takes years for a knowledge-based economy to develop and mature. Malaysia has to compete with other countries with more advanced research resources, funding and facilities in their knowledge-based economies.

For the past five years, a clearer understanding about Malaysia’s knowledge-based economy has been emerging, and a number of positive changes occurred. The new generation of Malaysian researchers have access to more facilities, funding and incentives from various government agencies (for example, MoHE and MoSTI) and private sectors. This has resulted in the significant growth of ICT and creative activities.

In 1996, the MSC mega project was announced. Influenced by the success of Silicon Valley, which is close to Stanford University in the US, the MSC covers 250 square kilometres spreading south from the Kuala Lumpur city centre to the new International Airport at Sepang. It includes Putra Jaya—the new high tech administrative capital—and IT City, an urban development of smart buildings with the latest information infrastructure. The entire area is serviced by a fibre optics network that will directly link the MSC with ASEAN, Japan, the US, and Europe. The vision is far more than a business development: the MSC is envisaged as "the leading edge of a new national strategy for Malaysia to achieve the goals described in our country's Vision 2020" (Mahathir, 1996a, paragraph 29). These goals include not just economic development but development along political, social, spiritual, psychological, and cultural dimensions. This unique vision aims for Malaysia to be unlike any of the nineteen "developed countries" (in 1996), but "a developed country in our own mould" (Mahathir 1996b, paragraph 4).

However, the development of the MSC began before Malaysian universities offered professional training for human resources required for the development of this project. The incompatible development of the MSC and universities in Malaysia delayed the progress of ICT progress in Malaysia in comparison to the more successful developing country like India (Vicziany & Puteh 2004). India’s ICT and US’s Silicon Valley have followed a different course. The MSC in Malaysia is reported to face human resources shortages, particularly in meeting the demands of the ICT and multimedia industries (Ramasamy et al. 2004).

Silicon Valley had an influx of highly-skilled graduates (Saxenian & Hsu 2001), while in India, the IT revolution ensured new jobs are available for educated graduates (Vicziany & Puteh 2004). In Malaysia, skilled graduates were limited, and this affected the growth of the MSC project. Another reason involved a misunderstanding on the part of key players among Malaysia’s knowledge-based economy, which is narrowly defined as related to science and technology (IT or ICT), although other high-tech activities and e-commerce play leading roles (Evers 2003). The MSC development lacks entrepreneurial aspects and innovative spirit, which have been noted as the two most crucial aspects for the success of Silicon Valley (Ramasamy et al. 2004) and Hsinchu-Taipei (Saxenian & Hsu 2001). Although the Malaysian government is providing various funds and assistance for private companies to get involved in sectors related to the MSC, many companies tend to wait for the government to guide them rather than propose their own ideas. Market players need to initiate their own imaginative and innovative ideas, similar to Silicon Valley, Hsinchu-Taipei, and content industries in Japan.

In general, most Malaysian entrepreneurs in the MSC core business areas—such as software, system integration, and web design and content—still depend significantly on the government in terms of supplying funding and to implement new ideas. Ramasamy et al. (2004) have pointed out that Silicon Valley was initiated by the private sector, while the MSC is a government-mooted initiative like Singapore’s Science Park, and the Kanagawa Science Park in Japan. Hence, one of the MDeC missions is to train local companies to be independent and to foster international collaboration (3D World Magazine, 73). Policymakers in Malaysia have been supportive in providing tangible facilities for the success of the MSC project before the year 2020, although intangible ingredients such as management skills are still lacking (Jarman & Chopra 2007; Ramasamy et al. 2004). Compared to the first decade since the launch of the MSC, there are many noteworthy changes, particularly during the past five years, and specifically in the content industry. As a result, other developing countries such as Hong Kong and Thailand had used the MSC as a model to build their own similar projects.

Malaysia has less than ten years until their Vision 2020 is realised, and at the moment there is not much available data on the progress of the MSC. Although the government is promoting Cyberjaya as the MSC’s capital city, many local companies and key players are reluctant to operate their businesses from there. In comparison to cities like Kuala Lumpur and Shah Alam, Cyberjaya is still not attractive enough to live in. While basic infrastructure like housing and public transportation are not complete and convenient for people to use, in the past three years there have been some improvement in these amenities.

3.2.2 The Content Industry in Malaysia

Post‐independence (1957‐1980)

After Malaysia achieved independence, their content industry was closely influenced by other British colonies, particularly India and Hong Kong. Many Indian film makers and script writers came to Malaysia, and the influence of Indian films was significant. Many Hong Kong film producers such as Shaw Brothers and Cathay Film financed Malaysian films (Rosnan, Ismail & Mohd Daud 2010). Singapore became the centre for Malaysian filmmaking. During the peak period of Malay films in the 1950s and 1960s, many major Asian awards were won by Malay films. Unfortunately, after the centre for Malaysian films was moved to Kuala Lumpur, this successful era ended. The primary reason for this demise was political—the Malaysian government began focussing attention on national unity (ibid.).

Transformation to Developing Country (1981‐2000)

In 1983, the Prime Minister of Malaysia, Dr Mahathir bin Muhammad launched the “Look East” policy, which diverted attention to Japanese and South Korean systems, and became Malaysia’s new model in developing its economy. More networking and technology exchanges with Japan and South Korea took place, and in 1985, Malaysia produced its first car, the Proton Saga, based on Japanese technology from Mitsubishi. During this era, Mahathir wanted to expose Malaysian people to the idea that western civilisation is not the only advanced community in the world. Asian countries like Japan and South Korea are also at par with the west in terms of their economic development. His intention was to encourage Malaysians to trust and use their local products.

Modern Malaysia (2000 until the present)

Currently, Malaysia is seeking to enhance economic, technological, cultural, and scientific creativity. The government announced 2010 as the “Year of Creativity and Innovation”, acknowledging that innovation creates jobs and boosts national competitiveness (New Straits Times 2009). Recently, the MICC minister, Dato’ Seri Rais Yatim (Utusan Malaysia 2010) announced that the policy on creative economy would be presented in March 2011. This represents move by the Malaysian government to provide a clearer set of guidelines to key players.

The current Prime Minister of Malaysia, Dato’ Seri Najib Tun Razak constantly mentions technology, creativity, and innovation in his speeches whether when he is addressing issues of culture, education, health, religion, and tourism. In his speech during the launch of 1Malaysia Chinese Association (MCA) Medical Foundation, Dato’ Seri Najib urges Malaysians to be creative and innovative in helping others who are in need of financial assistance for their basic healthcare needs. The responsibility should not be left to the government alone in servicing healthcare needs (Mysinchew 2010). In addition, the top management of many private organisations have stressed the importance of culture, tourism and creative industries in their speeches and planning. Conglomerates such as Petroliam Nasional Berhad (Petronas), YTL Corporation, and the AM Bank have been working closely with the government in boosting infrastructure to an international standard. These private companies play an active role in developing ICT infrastructures, and funding R&D activities in creative sectors to generate better facilities in the country. The government is committed to give support and funding for development around the MSC (Vicziany & Puteh 2004).

The Malaysian government and private organisations have been working together to create awareness through conferences, dialogues, seminars, talks and workshops. In 2009, the Ministry of Information, Communication, and Culture (MICC) organised a conference in Kuala Lumpur. With the title Creative Industry: A New Dimension of Economic Growth, the conference aimed “to gather all media players and related industries from local and abroad to share their knowledge and exchange of ideas to formulate a framework for the development of creative industries in Malaysia” (MICC 2009). These academic events can assist policymakers and key players. The importance of the creative economy is acknowledged; support is provided financially and by the development of new policies (refer MSC 2009; New Straits Times 2009; Utusan Malaysia 2010). Meanwhile R&D on cultural tourism and creative industries is low and funding for ventures is difficult to obtain in comparison to funding available for R&D by pure sciences and economics disciplines (Lai & Yap 2004). The social science sectors have not received enough endorsement from the government and private agencies in Malaysia.

In her column in The Star, B.K. Sindhu (2009) claims that the Malaysian government has bureaucratic ways of dealing with creative talent, and argues that the country often loses talent to other countries, particularly to their close neighbour, Singapore. As Richard Florida (2005) notes, however, this is a global phenomenon; Malaysia is not isolated. Sometimes when a country has many expatriates working abroad it could be an advantage for the country. Losing people overseas does not mean that they will not return or contribute the expertise gained to their home country. For example, expatriate Chinese, Indians and 32

Taiwanese (Saxenian & Hsu 2001) are known to contribute significantly to their homeland country.

To speed up their creative economy development Malaysian government has introduced policies on Intellectual Property (IP), Information and Technology (IT), media, and Research & Development (R&D). These policies--including The Patents Act 1983; The Copyright Act 1987; The Industrial Designs Act 1996; The Layout Designs of Integrated Circuits Act 2000; The Optical Discs Act 2000; and The Communications and Multimedia Act 1998—have been formulated to boost and support the expansion of ICT activities in Malaysia (refer MSC 2009). Recently, Malaysia has become a member of the World Intellectual Property Organisation (WIPO) (MSC 2009), and the Ministry of Science and Technology (MoSTI) and MoHE are among the two active government ministries—in 2007, MoHE the development of four new public research universities. Together with other organisations such as MoSTI, MoHE fully support the development of R&D and IPs among these institutions. MoHE also promised to give more authority to these four universities to make their own decisions on future planning and direction. This act is in line with the MSC milestone and target outlined in table 3.2.2.

Table 3.2.2: MSC Milestone and Targets Phase I (1996-2003) Phase II (2004-2010) Phase III (2011-2020)  1 Corridor  Web of corridors  All of Malaysia  50 world class  250 world-class companies  500 world-class companies companies  Set global standard in  Launch 7 flagship flagships applications  Global test-bed for new applications multimedia applications  Harmonized global  World-leading framework framework of cyber laws  International CyberCourt of cyber laws of Justice in the MSC  4-5 intelligent cities linked to  Cyberjaya as world other global cyber-cities  12 intelligent cities leading intelligent city linked to the global information highway (MSC 2010)

Bunnell and Coe (2005) have noted that the development of MSC project is intended to ‘upgrade’ Malaysian citizens and continually re(educate) them through local and electronically- mediated interaction with ‘intelligent’ others; ‘smart families’ and Smart Schools plan promote active use of leisure time. However, the zone separation around the MSC area may create a highly socially and spatially differentiated national territory of government (Ong 2004, p 47). Beside the MSC model is adapted from Western ideas with local modification its feasibility is still a major question. As this table shows, not all MSC milestone and targets have been

33 accomplished, partly due to the global economic recession of 2008 when the government had to reduce the budget for the megaproject.

Vicziany and Puteh (2004) argue that Malaysia has lost about a decade in establishing the kind of policies that support the development of the kind of knowledge based-economy that has been identified as the primary factor for the growth of ICT sectors in developed countries. Although the Malaysian media is heavily controlled by government (see Zaharom & Kim 1998), the launching of the MSC project saw a significant number of independent online media start-ups.

3.2.3 The Animation Sector in Malaysia

Animation in Malaysia started in 1946, when simple animation for documentaries and public service filmlets were produced by the Malayan Film Unit (now National Film), which was founded by Australian war photographer, Gillie Potter. The first Malaysian short animated film Hikayat Sang Kancil (A Mousedeer Tale) was produced by the unit in late-70s (Muthalib 2007). Malaysia’s first Malay cartoon and humour magazine Gila-Gila (Mad) appeared in 1978 (Anour 2009). The sector started to show substantial growth when Mahathir became the Prime Minister in 1981. However, only in 1995 after the government’s initiative to develop ICT sectors, did the animation sector become commercialised (Muthalib 2007). Almost at the same time, Gila-Gila attained the number one spot with the largest local magazine circulation in the country (Provencher 2001, 187). After the success of Gila-Gila, more local cartoon publications--including Gelihati (1978), Batu Api (1985), and Ujang (1993)—began to emerge. The cartoon sector in Malaysia reached its highest point, and cartoonists were well-paid and treated like celebrities. In 1994, the most prominent Malaysian cartoonist turned to animation; Mohammad Nor Khalid—famously known as Lat—was awarded the noble title of “Dato” by the Sultan of Perak, in recognition of his contribution to the national cultural heritage with his popular cartoon book, Lat: The Kampung Boy (refer to Appendix 1).

Private companies began to produce animated television series, and some used the popular cartoon publications as inspiration for their television characters—the first television animated series called Usop Santorian was aired in 1995 using computer technology, (one of the earliest to use computer in Malaysia) (Mahamood 2001, 140). These companies also started to produce animation for the Malaysian government television channel RTM 1, which agreed only to broadcast Malaysian animation, and paid the producers handsomely (US$10,000 per episode) (Muthalib 2007). Unfortunately, their payment could take months to settle, causing

34 animation producers to face financial problems and close operations after two to three years. Consequently, many animators and creative workers began working in unrelated sectors.

The animation sector reached its lowest point when Mahathir stepped down as Malaysia’s Prime Minister. The newly-elected Abdullah Badawi concentrated on traditional sectors like agriculture and building a modern Islamic image (“Islam Hadari”) for the country. During this time he pushed the idea of marketing Malaysia as an international “halal hub” for the Muslim market (Kamin, Lohan & Chandran 2008). However, since half of Abdullah Badawi’s term as prime minister was dealing with economic recession, his focus was more on the survival of the country. The development of the MSC gradually slowed until the current Prime Minister, Najib Abd Razak took his post in 2009. Not only did the animation sector then become stronger, but other local content, including advertising, electronic media and print, film, and television series, grew significantly. Unfortunately, local television channels were cautious with local animation, and preferred to buy foreign products. As a result, statistics by the National Film Development Committee (FINAS) show the total number of imported films from 2004 to 2010 (table 3.2.3a) is significantly higher compared to locally produced films (table 3.2.3b) in Malaysia.

Table 3.2.3a: Importation of Films in Malaysia from 2005-2011 (January) Types of 2005 2006 2007 2008 2009 2010 2011 Films (Jan) Feature 4,555 3,213 3,228 2,004 3,809 9,793 311 Documentary 3,312 1,477 2,262 1,839 543 1,250 54 Animation 0 155 7 3 15 433 251 Trailer 816 916 907 726 400 545 34 Sports 116 208 210 247 63 465 14 Commercial 487 691 727 700 805 1,166 73 Comedy 0 10 11 2 1 2 0 Promotion 359 716 666 400 357 581 12 Reality TV 0 5 0 0 0 0 0 Game Show 0 69 0 0 0 0 0 Education 0 6 4 0 0 0 0 Entertainment 0 0 0 0 0 967 301 Others 1,849 0 0 0 0 0 0 Total 11,494 7,466 8,022 5,921 5,993 15,244 1,051 (FINAS 2011)

Table 3.2.3b: Malaysia Local Film Production Statistics 2003-2010 Year No. of Films Gross Ticket Collection Production Cost (RM/million) (RM/million) 2003 16 23.4 23.78 2004 22 27.2 43.24 2005 23 26.7 29.77 2006 28 29.7 38.89 2007 28 30.3 37.23 2008 28 45.9 N/A 2009 27 50.8 40.51 2010 38 75.9 46.61 (FINAS 2011)

Despite this, locally-produced advertisements, drama, films and other local television programmes increased substantially after 2008 (refer Appendix 2). In 2010, the Malaysian local reality television show, Imam Muda, produced by Astro Oasis, attracted international attention for its unique content. Contestants recited verses from Quran, washed corpses, slaughtered sheep according to Muslim rules, and discouraged youngsters from engaging sex before marriage and taking drugs (AFP 2010).The show was looking for young Muslim leaders.

Animated films were less active than television programmes. In 1990, ZHA Film Production made Mat Gelap, the first film to combine animation and live acting. In 1998, the first fully animated Malaysian film was produced. The failure of Silat Lagenda was due partly to the economic recession, and also because of a lack of interest among local audiences, who criticised the production for its poor quality compared to other international products, without considering other aspects like much cheaper production costs and animators who never had formal training in animation (Muthalib 2007). At least two more animated films were produced without much success. In addition, feature films in Malaysia did not receive good response from the public. Unlike Indian viewers who according to Barrowclough & Kozu-Wright (2008, 30) appreciate their own films, Malaysian audiences are claimed to be unsupportive. The small market size of an adult audience group for local animation market in Malaysia could have contributed to this failure (Muthalib 2007).

However, one company managed to prove that local animated films can attract local audiences. Les’Copaque Production (LCP)’s first 3D animation film, Geng: Pengembaraan Bermula (Gang: The Adventure Begins) opened in 2009 and managed to collect more than 36

RM6.3-million dollars in Brunei, Malaysia and Singapore. Earlier, LCP produced the hit television series, Upin & Ipin (2008). Although the first 3D effort by a Malaysian company was reportedly produced by Young Jump Animation—Nien Resurrection (2000)—the film was released in video compact disc (VCD) format, and marketed as “Made in Japan and Hong Kong” (Muthalib 2007). Today, LCP television series and merchandising products have managed to penetrate Asian market. Their formula, featuring Malaysian multi-ethnic and religion themes and discourses in their animation products, has gained attention from the regional market for its unique approach, and differences from other products.

3.2.4 Cultural tourism sector

UNCTAD (2008, 117) states that arts and crafts are the only creative industry where developing countries have a leading position in a global market where the key developing countries are China, SAR Hong Kong, India, Turkey, Pakistan, Iran, Indonesia, Thailand, Republic of Korea and Malaysia. Their cultural tourism products—including the arts, handicrafts, heritage sites, and traditional music—have significant potential. In 2004, the whole of the Asian region received 153-million international tourist arrivals, the second highest after Europe. Cultural tourism activities are identified to be among the top three reasons for tourists to visit Asia (Khalifah & Tahir 1997, 186; UNCTAD 2008, 23). Many popular cultural tourism sites in Asian nations have been announced as world heritage sites by UNESCO. The region has rich cultural resources, and many are not well-developed because of financial constraint and lack of modern technology. With the rapid evolution of ICT, more cultural tourism producers are implementing technology to keep their products and services competitive and sustainable in the market. This has created a significantly close relationship exist between ICT sectors and cultural tourism.

China, for example, is among the developing nations that put much effort in developing their cultural tourism sector with the combination of modern elements. Malaysia is also one of the important countries in Asia with many cultural tourism resources and two UNESCO world heritage sites—Malacca and George Town—that provide knowledge and experience to the visitors, and contribute to the socio-economic stability of the region. The World Tourism Organisation (WTO) (2004) identified Malaysia as one of the most popular destinations in Asia for international tourists, and in Southeast Asia, Malaysia captured approximately eleven per cent of international tourist arrivals (WTO 2006). Cultural tourism products are identified as one of the major resources for Malaysia (Khalifah & Tahir 1997, 178), and are constantly used to market the country in all sectors. In addition, the government has been marketing Malaysia

37 as a modern Muslim country since the 1990s (Westhueizen 2004), including in content and tourism industries (Khalid 2009; Westhueizen 2004).

Despite this, Mohamed (2006) notes that some heritage buildings and sites are not fully utilised, and reveals that in 1996, there were 30,000 heritage buildings located in 162 Malaysian cities. Most of these buildings are located in historic cities such as George Town, Ipoh, Kuala Lumpur, Kuching, Malacca, and Taiping. Unfortunately, not all of these buildings are well-maintained as a result of policy problems and duplication of government roles and functions. The Ministry of Tourism (MoTour) is responsible for marketing and promoting Malaysia as a tourism destination domestically and internationally since 2004. In addition, the Ministry of Culture, Arts and Heritage (later known as MICC in 2009) is one among several that oversees the Malaysian cultural sector.

The separation of the cultural sector from MoTour means that the ministry has lost control over this sector. As a result, many cultural producers in Malaysia are unfamiliar with their real markets, although the majority are still operating for the purposes of tourism. Occasionally, the overlapping functions between these two ministries complicate matters. As Pandiyan (2009) argues, many government departments are run under fragmented and tiered structures, resulting in much duplication or contradiction of duties. He continues, highlighting that Malaysian civil servants are known for their ineffective delivery of public service. Also, MICC has many responsibilities in other many subsectors including information and communication. Nonetheless, this problem is not unique to Malaysia; other developing countries, such as China, Indonesia, and India, also face similar challenges (UNCTAD 2008, 44).

With rapid global development of technology, more cultural producers and operators are embracing new technology in their products and services to remain competitive. This worldwide trend is being embraced slowly by Malaysia’s cultural producers. The adaptation of these cultural products and services by Singapore cultural producers since the early twenty- first century has brought success in the world market (Yue 2006).

The Museum Sector – Past and Present

Museums play an important role in maintaining historical artifacts and collections. According to ICOM (2010), the museum is a bridge for the past and future. The evolution of ICT has shifted the role of traditional museums to become more multipurpose in offering tangible and intangible products and services to their visitors or guests. Traditionally, museums have offered a space to collect and display material treasures of the past. Now, modern museums 38 are adopting an approach of engagement. The museum sector presently is a vast field that involves a diffusion of different knowledge platforms interacting with one another to develop and establish resource and learning centres that focus on national heritage. With the endorsement from UNESCO in 1974, ICOM acknowledged the changes on the role of museums, and revised the definition of a museum as “a non-profit making, permanent institution in the service of society and of its development, and open to the public, which acquires, conserves, researches, communicates and exhibits for purposes of study, education and enjoyment material evidence of humankind and its environment”. However, this revised role means that operating costs for modern museums are increasing, and require the museums to find further forms of funding. This is when creative elements play a significant role in museum management. As a result, more museums are introducing other services like souvenir shops, book stores and cafes to generate side income (Gilmore & Rentschler 2002).

Gilmore and Rentschler (2002) note that contemporary museums offer a variety of products and services not only to maintain their competitiveness, but also to generate income. Further, with significant budget cuts, the management of museums have to locate alternative, supplemental funding, particularly in developed countries like Canada, the US, and UK (Goulding 2000). However, in certain countries such as Australia and Malaysia, the museum sector is comprised of public, non-profit entities. Some of these public museums may charge minimal entrance fees for visitors, or to enter specific exhibition spaces, but not with the intention to make profit (Zan 2000). Since museums in general are still regarded for safeguarding invaluable, irreplaceable national treasures, the public may not welcome admission fees, particularly when the collections or exhibits are not of a high standard. The existence of museums is void without their collections (ICOM 2010). A reputation of a museum depends largely on its vital collection and methods use to disseminate them through exhibition techniques, interpretation programs, marketing and publication on various mediums (Stephen 2001). Collections provide identity and enhanced popularity to the museums, but other modern elements such as architecture, conservation methods, and technology contribute significantly in attracting visitors.

Museums are also centers of informal learning. Resources and museum objects educate and enlighten the human spirit through various genres of museums that include history, art, science or natural history (Goulding 2000). The existence of museums feed public appetites for education, conservation, and preservation of history, culture and natural history, and tourism. Today, museum management offers significant challenges. Stephen (2001) argues that certain ethics and policies regarding museum functions such as acquisition, research, concepts, and education and enrichment should be drafted and become core aims for 39 museum professionals. Nonetheless, outside of academic circles, there is little research that accounts for the actions and voices of the actual visitors to museums. What museum curators and related official bodies are good at is collecting numbers (Goulding 2000).

However, much museum research has been criticised for its lack of any attempt to integrate their data into a coherent framework (Moscardo 1996; Stephen 2001), and for failing to use the results to advance an overall understanding of the nature of each visit (Merriman 1989; Stevens 1989; Stapp 1990). Visitors bring a multiplicity of interpretations to the reading of displays, and the fact that artefacts may be subject to multiple interpretation has important implications for the way museums regard and present themselves (Smith 1989, 1; Urry 1990; Squire 1994). Much work on museums as service providers has tended to concentrate predominantly on museums as institutions of culture that are primarily ideological in what they choose to present (Simpson 1993; Byrne 1991; Thomas 1991; Jenkins 1991). Also, much museum research is concentrated in developed countries.

3.2.5 The relationship between cultural tourism and creative industries

Among the key issues this research wishes to highlight is the claim of overlap between the tourism and creative industries on cultural products. Literature about culture (Scott 1997), tourism (Seaton 1996, 25) and creative class (Florida 2005) shows close link between culture, tourism and creative industries. WTO (2004) reported that cultural tourism is one of the top three reasons people travel domestically or internationally. As a result, many countries are actively promoting cultural tourism to local and international tourists (Smith 2007, 2).

The changing role of museums requires management to become imaginative when formulating the products and services offered to visitors. For example, programs like Sleepover @ Museum add a new experience to products. UNCTAD (2008, 23) has pointed out that contemporary consumers use the Internet, mobile telephony, and digital media as their information media. This not only expands their range of cultural experiences, but also transforms them from passive recipients of cultural messages into active co-creators of cultural content. Hence, the dependency of the museum sector on ICT and creative activities is becoming vital in attracting more visitors or tourists, particularly the younger market. With that realisation, the term, creative tourism, has been introduced recently to highlight the mixture of tourism products and services, and creative elements.

Creative Tourism

The term creative tourism is an extension of cultural tourism. Richards and Raymond (2000) are among the first authors to use this term, and argue that consumers are increasingly looking for more engaging, interactive experiences that can help them in their personal development and identity creation. Modern consumers are more exposed, educated, and sophisticated, and always searching for new experiences. In order to remain competitive and sustainable, the stakeholders of site need to be creative and innovative in developing and promoting their cultural tourism products. This innovation can attract tourists and investors. By recognising their resources and the network systems around them, stakeholders can identify the strengths and weaknesses of their resources, and specifically assist policymakers in developing good and effective policies for new sectors.

Few authors discuss about the relationship between culture, tourism and creative industries (exceptions include Richards & Wilson 2006; Roodhouse 2006; Smith 2007). Richards and Wilson (2006) note the close connection between the three sectors, and their co-existence in the past, present and in the future. Cultural tourism is a significant factor in attracting tourists to a destination, and requires creativity and technology in order to ensure competitiveness with other tourism products. The intangible nature of some tourism products means that producers have to use their imagination and ICT to make their products become more tangible. Creative tourism possesses the right characteristics to meet the requirements of demanding tourists. However, the concept of creative tourism is not widely used in academic research work or in the tourism industry. A thorough investigation is needed to examine into details of the relationship between the creative and tourism industries, particularly to refine the concept and framework so that a strong theory can be built. The usage of creative in the term will be challenged by many, and the promotion of culture as a commodity in the tourism industry has already created heated debate in the literature. This research will not engage in deeper discussion about creative tourism, other than to recognise that tourism researchers are developing this term further.

3.2.6 Cultural protection

Initially, many leaders in developing countries had seen western culture as the only way for their countries to move forward. Mahbubani (2008, 127) points out that Kemal Ataturk—who ruled Turkey from 1923 to 1938—believed Turkey should join the western world by adopting western values. Ataturk expressed this in symbolic terms by calling fellow Turks to abandon specifically Muslim head-gear. To date, however, Turkish westernisation policies have failed to

41 bring any positive transformation. Turkey is still a developing country, although relatively westernised (Mahbubani 2008, 154), and the country’s long battle since 1959 to join European Union (EU) is still in process (Arikan 2006, 1). Later generations of Asian leaders, however, do not share Ataturk’s enthusiasm. Ghandi (India), Sukarno (Indonesia), Mahathir Mohammed (Malaysia), and Lee Kuan Yew (Singapore) have been sceptical of western culture. They have been inclined to protect culture values, but at the same time acknowledge the importance of western economic advancement and technology.

Contemporary Asian leaders had been vocal about cultural protection for their countries. In addition, Mahathir’s constant criticism towards western policies saw western leaders label him as “anti-western”. The Look East Policy launched in Malaysia encouraged the public and the region not to idealise the west. As a consequence of postcolonialism and globalisation, these kinds of Asian ideologies began to dominate public attitudes in the late-1980s (Yue 2006). Although Asian countries like Japan, Singapore, South Korea and Taiwan have reached the status of developed countries, their governments remain protective of their culture. In recognition of this, the Malaysian government has focussed on protecting the country’s unique culture, multi-ethnic identities, and religion, making Malaysia one of the first countries in the world to proactively promote this image.

A Multicultural Country

Malaysia is a multi-ethnic country, with a culture that has distinctive features; successive governments since the 1950s have promoted the calm nature of their mixed cultures and religions. The three major ethnics include the Malays, Chinese and Indians who shape the country’s culture, while other smaller minorities such as the Thais and “Baba Nyonya” (Chinese mixed with Malay community) maintain a notable influence. Malay is the national language, while other minorities are free to speak their own languages. Malaysia is a moderate Muslim country, where Buddhism, Hinduism, Christianity and Taoism also are practiced openly. The Malays opened the country to outside influences from the eighth to fourteenth centuries, and during British colonisation in the eighteenth-century invited Chinese workers to mine tin, and Indians to work on rubber plantations. Since then, Malaysians have learned to live with a multitude of differences and similarities.

Before independence from Britain rule, a lack of socialising and communication existed among ethnic races. These groups read Chinese and Indian publications, spoke their mother tongues, and established their own schools, which followed curriculums from their homelands (Fenton 2003). Few could speak Malay, and in 1969, Malaysia experienced the most extreme racial 42 tension in its history, when two Chinese extremist political parties mocked the Malays (The National Operations Council, 1969, 28-29), and supported Lee Kuan Yuew (when Singapore was under Malaysian rule) with the slogan “Malaysian Malaysia”. This activism began in Kuala Lumpur and spread throughout Malaysia.

In the wake of these activities, the Malaysian government took careful measures to make sure the same incident didn’t happen again. Public discussion of sensitive issues relating to ethnicity and religions are prohibited, which has sparked much criticism from western politicians. While the growth of ICT has meant that these issues are discussed freely on the Internet, the government is trying to impose some control. After centuries of living together, all ethnicities in Malaysia embrace each other’s cultural traditions.

Therefore, animation and cultural tourism institutions like museums incorporate the multiethnic and religion culture of Malaysia, creating different experiences for audience or visitors. This advantage has been promoted extensively by the government locally and internationally, however, these institutions have to compete with a rapidly growing global culture.

3.2.7 Global Versus Local Culture

Pietersen (2009) argues that the challenges of cultural globalisation first became apparent around 1980. The phenomenon can be categorised into several phases: print, radio, and television, followed by film, and now, the Internet. Today, the Internet has become one of the most powerful mediums in the world, where news can be gathered and disseminated within seconds. This has created a virtual culture among Internet users or communities that extends across the world. Hence, this may create cultural clash between the new community formed by the Internet itself and the other existing communities bound by locality and cultural tradition (Hongladarom 1999). On one hand, there can be distinct culture differences between some countries, while countries within the same region might share cultural similarities. In addition, cultural differences even occur within the same country in terms of the accent, costume, food and lifestyle.

Cultural globalisation covers a wide scope, including cross-cultural encounters, cuisine, fashion, global-local relations, language, lifestyles, migration, marketing, media, film, music, technology. Knox (1996, 124) defined globalisation as “a globalised infrastructure of unitary nation states, together with international agencies and institutions, global forms of communications, a standardised system of global time, international competitions and prizes, and shared notions of citizenship and human rights”. In addition, many definitions of

43 globalisation relate to economics, culture, human rights, politics, and neoliberalism (refer to Kong 1999; Pietersen 2009, vii; Robertson 1992). As Pietersen (2009, 8) notes, there is more controversy than consensus surrounding the meaning of globalisation. The areas of consensus on this topic are narrow in comparison to the controversies as described in Table 3.2.7 by Pietersen (ibid.). For this section, the discussion on global culture will focus on those that relate to the topic of this research, specifically the cultural tourism and animation sectors.

Table 3.2.7: Consensus and Controversy Relating to Globalisation

Consensus – Globalisation:

 Is being shaped by technological change  Involves the reconfiguration of states  Goes together with regionalisation  Is uneven

Controversy

 What is globalisation?  Is globalisation a recent or a long-term process?  Is globalisation essentially economic or multidimensional?  Does globalisation exist or is it rhetoric “globaloney”?  Is globalisation is neoliberalism or capitalism?  Is globalisation manageable? Pietersen (2009, 8)

In a modern world, cultural globalisation once related substantially to western culture, particularly from the US, and known as Americanisation. With the majority of information sources and media dominated by western countries, this kind of globalisation is almost impossible to stop, and is influenced primarily by the western ideals of liberalism, individualism, respect for human rights, and democracy (Hongladarom 1999). This “global culture” is supposed to help create a more peaceful world. However, there is also a fear of a specific effect of cultural globalisation—the “airport culture”, where the rich diversity of human civilisation will be homogenised and vulgarised. This fear has been vocalised in the rhetoric of “Asian values”, which recently has attained a certain political significance, particularly in the expression of various Islamic resurgence movements, and even in some European regions like Austria (Osman 1998, 174; O’Meara, Mehlinger & Krain 2000).

Although American culture still influences global culture, there are many other key players. “Asian styles” are popular: the world entertainment industry has experienced Bollywood, Japanese “cool”, and the Korean waves. Japanese manga and anime, and Bollywood dancing

44 have been embraced around the world. According to McGray (2002), Japan has become the new world superpower since the 1980s, and today their influence is growing stronger. From pop music and consumer electronics, architecture and fashion, to food and art, Japanese culture has a growing cultural reach. The successful Japanese strategies of adopting the western culture but also preserving their own culture have encouraged other non western countries follow their lead. As the twentieth-century unfolds, it is becoming apparent that the Americanisation influence is losing its recognition as the only culture accepted in the world, to a mixed culture between the East and the West. The evolution of global ICT sectors means that global culture has spread at an increasing rate. At first, many Asian governments— including China, India, Malaysia and Singapore—attempted to stop or slow the spread of global culture, but they eventually realised such a goal was unachievable. Consequently, these countries adopted a different approach, blending the global and local cultures.

Local culture

Local culture refers to authentic or traditional values and practises that accumulate within the majority of a community (Hongladarom 1999). Normally, local cultures are shared among the other neighbouring countries in the same region, such as Australia and New Zealand, the US and Canada, and Malaysia and Indonesia. According to Cohen (1988) local culture generally serves as the principal example of such commoditisation, in particular “colourful” local costumes and customs, rituals and feasts, and folk and ethnic arts become touristic services or commodities, as they come to be performed or produced for touristic consumption. Greenwood (1977, 131) argues tourism activities will direct areas in the life of a community that prior to its penetration by tourism have been within the domain of economic relations, and regulated to commoditisation by the criteria of market exchange. Commoditisation allegedly will change the meaning of cultural products and of human relations, making them eventually meaningless. However, Cancilini (1992, 31) and Murphy (2003) argue that it is necessary to add modern elements to cultural products for their survival. Furthermore, local culture does not belong exclusively to one community, particularly as migration has become a common factor in human life. All cultures to some extent share similarities and differences.

Normally, before any culture can be accepted on a global scale, it must be accepted and have a substantial impact within its own country. Both Japanese animation and manga, and Indian films and songs had a significant impact on their local audiences before they became popular with international audiences. This also is due to the significant number of their immigrant groups located all over the world, particularly in the US and UK. These immigrants (either permanent or temporary) directly or indirectly introduced their culture in their adopted 45 countries. Therefore, if we travel to cities like Dubai, Japan, London, Paris, New York and Sydney, there are many Japanese and Indian restaurants in those cities. These two countries managed to export their local culture to the global market, and it has become a common characteristic for larger cities either Japanese or Indian restaurants. At times, when a local culture wants to gain better acceptance from the larger global market, they tend to marry their local culture with global culture. The subsequent result is the term, glocal, which is adopted in order for a product to develop further in the world market.

Glocal Culture

The hybridisation of global and local into the term, glocal was coined by Roland Robertson in 1995. The term became popular in the early 2000s and has been accepted by academics and politicians as a description of the combination of global and local culture (Giulianotti & Robertson 2007). Apart from glocal, other words to describe the mixture of global and local culture include cultural adaptation, transfer, exchange, accommodation and multicultural. Almost all countries are adopting glocal culture in order for their products to become more appealing in the global market. This contemporary characteristic has much to do with the rapid development of ICT. Japan, India and South Korea have been successful in marrying their local and global culture in the entertainment products that they market to wider audiences, although generally their local culture is more prominent than the global culture. As a result, local actors, actresses and musicians are also embraced by the international market. This has contributed significantly to their content industry sectors.

3.3 Conclusion: Positioning Malaysia in Creative Economy

While Malaysia has significant potential for developing their creative economy through the enhancement of their cultural strength, this potential has only been recognised in the last five years. The government and private agencies are working together to speed up development relating to ICT sectors and creativity (Vicziany & Puteh 2004). Together with other related policies and continuous support from all organisations, the future of Malaysia’s creative economy is significantly bright (UNCTAD 2008). Currently, steps are being taken by the Malaysian government to amend the Patents Act 1983, so that the country can join the Patent Cooperation Treaty (PCT) administered by WIPO. This amendment will allow greater flexibility and efficiency for an applicant seeking patent protection in a number of jurisdictions, compared to the existing framework (MICC 2009). Also, the government is in the process of drafting legislation on Personal Data Protection, and considering an Electronic Transactions

Act, and an Electronic Government Activities Act to regulate the collection, possession, processing and use of personal data according to certain prescribed principles.

Normally, the major challenge for Malaysia to monitor and maintain has been the implementation and enforcement processes—weaknesses that have been the subject of constant debate among the public and the government. To solve the problem, and to take into account the rapid growth of ICT, the government had implemented ICT in their everyday operation and encourages the public to interact with them directly through this medium. The Internet and other media channels are the new methods for the government and public to communicate in the country. For example, the majority of the cabinet ministers have their own Facebook account and personal email to allow communication with the public. However, the effectiveness of these processes has not been determined, because only half of the Malaysian population own a personal computer, and the Internet connection in some regions is unstable.

In positioning herself as a creative economy, Malaysia is using resources such as multi-ethnic and religious cultures, political stability, cheap human capital and safety. These are among the significant advantages for Malaysia compared to other countries. By doing this, the country is offering something unique to the market that will be distinctive from other products, building a strong image to remain competitive, and providing memorable experiences to their customers. Multi-ethnic and religious cultures have long been part of Malaysia’s local identity, particularly in the tourism industry. Now the creative economy sector is using these elements to introduce Malaysia in the global market.

This country has substantial potential to become one of the powerful countries in the global creative economy. However, Malaysia is expected to encounter many obstacles and fierce competition, particularly from neighbours such as Indonesia, Singapore and Vietnam, which are already established in creative sectors. The progress of the creative economy in Malaysia currently is in a slow phase compared to other matured sectors like manufacturing and tourism industry. This research has found that many of the policies relating to creative economy have been formulated by Malaysian government (refer to MSC website). However, their implementation and enforcement are not efficiently applied within the various bureaucracies. Also, the wider public in Malaysia are still not familiar with the concept of creative economy since it is using a top-down approach. Only limited numbers of people—specifically policy makers and those directly involved in creative activities—recognise the term, which implies that not enough information about these policies have been disseminated to the public.

While the creative economy is producing new opportunities for both developed and developing countries, future challenges should not be underestimated (UNCTAD 2008, iv). This new concept needs further investigation, particularly on the key issues surrounding the development of creative economies in developing nations. Finally, it is important to address the lack of a strong theory and models to support the concept of a creative economy, especially in the context of developing nations.

4. RESEARCH METHODS

Case study research continues to be essential form of social science inquiry. The method is appropriate when investigators either desire or are forced by circumstances; to define research topics broadly and not narrowly; to cover contextual or complex multivariate conditions and not just isolated variables; and to rely on multiple and not singular sources of evidence. (Yin 2003, xi)

4.1 Data Collection

Two stages of data collection have been employed. Firstly, documents on the development of animation, the content industry, and cultural tourism in Malaysia were analysed to gather background information. Document analysis included online and printed forms, for example, books, brochures, journals, magazines and newspaper articles. Since information about creative economy development in Malaysia is limited in top tier journals, most data was gathered from the aforementioned sources. According to Yin (2003, 42), to get valid and reliable data a multiple sources approach such as document analysis, observation and personal interviews should be used. This study also undertook electronic background research on three case studies. Official websites, and other related information about these organisations were analysed. This secondary data information assisted in preparing the interview questions.

Face-to-face interviews were conducted with both organisations, using semi-structured interviews. As the concept and definition of creative industries in Malaysia is still not clear, personal interviews were used to ascertain “perceptions, meanings, definitions of situations, and constructions of reality” (Punch 2005, 174-175). The key management personnel from both organisations were interviewed for approximately forty-five to sixty-minutes each. Staff members from different management levels and job specifications were also approached. These interviews provided an in-depth knowledge and understanding of both organisations and address RQ1: what are the main operational issues for Malaysian creative economy enterprises?

Two different sets of interview questions were designed for the managerial and other staff for each case study (refer Appendix 3). The former addressed the second research question: What is the development path for Malaysian creative economy enterprises? Questions on the

49 development of the creative economy through cultural tourism and the animation sector or content industry in Malaysia were compared to other countries in the region, and the country’s level of development was ascertained (refer Appendix 4). The managerial interview questions also addressed the third research question: How do Malaysian creative economy enterprises utilise traditional Malaysian cultural assets? The fourth research question—How can Malaysia position itself in the creative economy in the region?—was answered from an overall analysis of the interviews and secondary data collection.

The interview questions were amended from time to time depending on suitability and the context of the interview. This is a normal process in a face-to-face interview session; questions for each respondent will be slightly different due to time, cost, political, legal and ethical constraints (Gillham 2005, 4). Due to these constraints, many researchers who conducted face-to-face interview have to adapt their methods. To obtain rich data from the respondents probing questions were employed when necessary. These interview sessions were recorded with the consent of the respondents. Before this, correspondence between the researcher and the involved organisations took place.

4.2 Case Study Organisations

The organisations chosen for the case-studies were all characterised for their utilisation of integrated creative content, technology, innovation and culture.

Les’Copaque Production Sdn. Bhd.

Les’Copaque Production (LCP) was established in December 2005 to provide opportunities for local graduates to showcase their talent in the animation industry. Located in Shah Alam city, which is situated about 33-kilometres from Kuala Lumpur, this company is located within the MSC area in Malaysia and awarded as MSC status company. They started with ten staff and have now expanded to fifty. Their animations series Upin dan Ipin (Upin and Ipin) was first aired in 2008 on the free private television company, TV9. Upin dan Ipin became a major success in Malaysia. The following year LCP produced Malaysia’s first Malaysian language 3D animated feature film, Geng: Pengembaraan Bermula (Gang: The Adventure Begins), which became the first twenty-first century Malaysian film to earn RM 6.6 million at the box office. This action/adventure film, directed by Usama Zaid Yassin, is set in Malaysia with an adventure and fantasy theme that captures Malaysia’s flora and fauna, kampong or village lifestyle, and multicultural elements. LCP products and services showcase Malay, Chinese 50 and Indian ethnic cultures, and have become a phenomenon not only in Malaysia but also in South East Asia. Since then, LCP has managed to make a significant impact in the Malaysian market as well as other parts of the world. This company has shown significant potential, offering the Malaysian public animation products produced by fully local talents. Upin dan Ipin became a phenomenon in Malaysia and other parts of Asia. The sceptical local market in Malaysia began giving attention to local animation products after the positive impact of LCP television animation series and 3D films in the market.

Today, the company is growing rapidly and has diversified their products and services to other related sectors, including merchandising, food and beverages, and franchising. In light of their achievement, LCP has become the market leader in animation television series and 3D animated films in Malaysia. Their success has also resulted in the Malaysian government and other private corporate organisation increasing support for the development of this sector locally and internationally. The CEO of LCP, Hj Burhanuddin has announced plans to open an Upin dan Ipin theme park in Malaysia (2009).

Malacca Museum Corporation (PERZIM)

The second case study examines an organisation that offers culture as a core product, with creativity and technology added to provide a richer experience to visitors. Malacca Museum Corporation (or PERZIM) is located in Malacca city, (Malacca), and was established in 1994 under the management of Malacca Museums Corporation, a state government agency established in 1954, which has twenty-one museums and complexes under their management. These include Maritime Museum Complex, the Malacca Sultanate Palace, Malacca Gallery, and Al-Quran Museum. At the time of this project’s background study, there were fourteen museums and galleries in operation, with another two to be opened by early 2010, and five more in the planning stage (PERZIM 2009). These museums charged a minimal fee to their visitors, and were located close to each other in the CBD area of Malacca city, where other major historical heritage sites are located. Malacca city was announced as a World Heritage City in 2008 by UNESCO.

In February 2009, the Malacca Maritime museum introduced a new addition, a program called Sleepover @ Museum (Lai 2009) (refer Appendix 5). This package offers a chance to spend a night in the replica of the fifteenth-century Portuguese galleon, Flo De Lama (Flower of the Sea) (ibid.). As a cultural tourism operator, this program attempts to find new ways to attract and maintain visitors. Apart from the Flo De Lama replica, which was opened to the public in 1994, the complex comprises the TLDM (Royal Malaysian Navy) Museum, Maritime Museum 51

Phase 2, and ex-KD Sri Terengganu Ship. Maritime Museum Phase 2 is an old warehouse renovated to become a museum. Its focus is a variety of maritime themes such as maritime life, exploration of the oceans and seas, and treasures from the sea. The TLDM museum was located previously at the Royal Malaysian Naval Base in Lumut, Perak but was relocated to the current location to attract more visitors. The location of the complex in the middle of Malacca city means a larger number of visitors to the museums. Recently, PERZIM added virtual museum website (http://www.virtualmuseummelaka.com/maritime.htm) as their latest product line. The virtual museum caters to thirteen museums, and PERZIM is the first museum corporation in the country to have this kind of service.

4.3 Rationale for Selection of Case Studies

The rationale for selection of these two organisations was that they combine culture, creativity, innovation and technology in their products and services. At the same time, they also attempt to maintain the authenticity of their products. These two Malaysian organisations offer examples of how to mould products according to an environment to become competitive and to better suit the market. As a result, they offer something unique and different products and services in the market.

Table 4.3: The Differences and Similarities between Les’Copaque Production Sdn. Bhd. and Malacca Maritime Museum.

Name Core product Differences Similarities Case 1: Music, Film, Audio Privately-owned Featured Malaysian culture, Les’Copaque visual, Animation Animation, 3D, merchandise, technology, imagination and Production, food and beverages and inspiration Shah Alam franchising products Located in Shah Alam Case 2: Cultural tourism State government owned Featured Malaysian culture, Malacca (museum, heritage, Cultural tourism products technology, imagination and Maritime knowledge) Located in UNESCO World inspiration Museum Heritage City, Malacca

Table 4.3 can be used as a model to show the close relationship between creative industries and cultural tourism, as exemplified by the two case studies above. This table shows that the creative economy concept as experienced by the two case studies in Malaysia is significantly influenced by creativity, culture, and technology, and also demonstrates the close connection between these three elements.

4.4 Case Studies: Recruitment and Time Line

Malacca Maritime Museum was contacted through email, and within three days the organisation responded to express their interest to participate in this study. I approached LCP and participation was confirmed within five days. All the interviews were conducted with Malacca Maritime Museum and LCP between December 2009 and January 2010. Both organisations selected the employees to act as respondents for this study. The study requested managerial staff or decision-makers for each organisation for the first interviews, followed by the other staff in the second interviews.

The interview questions were sent to both organisations through email before the actual interview took place. LCP was contacted first in December 2009 as its location was close to where I was staying in Malaysia. Later, the study approached Malacca Maritime Museum, and the interview date was confirmed as 11 January 2010 at Malacca city. It was scheduled to take place around the Malacca Museum Complexes managed by PERZIM, in Malacca city with its management and other staff identified by the curator as the respondents for this study.

4.4.1 Ethical considerations

The research involves interviewing and surveying people; as such, a Level 1 (Low Risk) Ethical Clearance application was prepared for ethical review. In addition, the proposed questions and email correspondence to the organisations were also submitted. In November 2009, ethical clearance was obtained (refer Appendix 6). The two organisations were contacted immediately via email to inform them officially of the interest of this study to include them as the case studies for this project. Prior to the interviews, the questions were emailed to both organisations, together with the QUT ethical committee approval letter. In order to make certain this research is free of coercion, discrimination and exploitation (Aguinis & Henle, 2001), participation was completely voluntary, and participants were able to withdraw at any time. Participants were briefed before the interview was conducted, and made aware of the intentions for and uses of the information gathered from the study (ibid.).

4.5 The Interview Process

A total of nine staff members of LCP and four staff from PERZIM were interviewed. The interview questions were designed to obtain their opinions and comments about their experience working for the company. The respondents interviewed were of differing rank, department and experience level.

About thirty questions were asked of LCP management and the museum curator regarding their experience in developing their products and services, their future plans and opinions about the creative economy in Malaysia. After the interview with the management staff and curator, the remaining participants from both organisations were asked a different set of questions. The management staff at Les’Copaque and the curator at Malacca Maritime Museum selected all the participants. The questions were tailored to account for differences between the two organisations and the differing experience levels and/or roles of the participants. This was in order to gather rich information about the experience of all staff members involved.

In the second interview, there were approximately fourteen questions asked of the staff at both organisations. Whenever it was necessary, probing questions were used to obtain in-depth answers from the respondents. As English is the second language for all the respondents, some used a few Malay words in their answers.

One respondent at LCP asked to answer the question in Malay, however, the questions were asked in English. The same scenario occurred during the first interview with the curator. Questions were asked in English, but answered Malay. Interviews with museum staff were conducted mostly in Malay, as per their request. However, at some stages of the interview, participants responded in both English and Malay. This is a normal phenomenon in Malaysia, where the majority of the population speak in a mix of English and Malay in their daily conversations. In addition, when Malaysians speak English, they tend to use “lah” at the end of their sentences. This is the normal way to speak English among Malaysians, and also in Singaporean. In my experience as a Malaysian, this has been common practise among the majority of Malaysians for at least a decade, and is a particularly popular habit among those who live in the city. Dodds (2004) reports in his blog that:

Malaysians scored a victory when ‘lah’ was introduced into the Oxford English Dictionary. They were less happy to see that the entry listed its usage as Singaporean English. 54

When I interviewed the Malacca Maritime Museum curator, he conducted a tour of the Malacca Museum Complexes, which comprise more than five museums. Also, the General Manager of PERZIM invited me to join their Sleepover @ Museum program the following week. However, due to extenuating circumstances I did not join the program but took the opportunity to visit several other museums managed by PERZIM around the city.

4.6 Interview Analysis Procedure

All in-depth interview responses were transcribed to identify the most cited themes. Thematic coding enables this study to identify meaning within the data. Finally, this research includes a comparative analysis between the two case studies. As Table 4.2 shows, there are a number of similarities and differences between the two case studies. All respondents were asked to give details including personal information, education background, and experience working for the organisation.

In the case of respondents who answered in Malaysian, I translated their answers into English when reporting their important comments. As I can speak and write fluently in both Malaysian and English, the service of professional interpreter was not required for this study. Direct quotations from the interviews, tables, figures and other exhibits are also presented in this section following the classic way of presenting evidence in case study methodology (Yin 2006, 117). This has a significant impact in reporting the respondents’ answers from both case studies, and delivers reliable and valid data for this study. When the answers given by the respondents were too general during the interviews, this study used other information from document analysis to support their answers.

4.7 Conclusion

The main focus of this chapter is to describe the methods used to research the two organisations. Case study methodology was considered the most appropriate technique for this topic considering it is a detailed investigation, with data collected over a period of time, and involves different phenomena within their context. While other methodologies can address these factors, case study methodology was considered the most appropriate approach for this project (Hartley 2004, 323).

5. CASE STUDY ONE: LES’COPAQUE PRODUCTION SDN. BHD.

We have something the West doesn’t. We have a range of cultures, of religions, the way we see art is totally different. We can adapt to any kind of design. (AunHoe 2010, 82)

5.1 Introduction

This chapter presents extensive data gathered in the case study on Les’copaque Production Sdn. Bhd. The chapter begins with a comparison of the MSC capital city, Malaysia Cyberjaya, and Cyberport, Hong Kong. The aim is to give a better understanding of the development of ICT sectors in the region, along with differences and similarities. Then, data will be presented according to the four research questions of this thesis. The first research question will address the seven themes identified in the answers obtained from the respondents during the interviews. Responses to RQ2, 3 and 4 follow, based on the findings of the interviews and desk research. Whenever required, this study will use subtitles in order ensure the key findings are more easily identified.

5.2 Comparison of Cyberjaya, Malaysia and Cyberport, Hong Kong

This section compares Cyberjaya, Malaysia and Cyberport, Hong Kong. The history of both Cyberjaya and Cyberport will be examined as the main national vehicle to move from the industrial to post-industrial era amplified by Malaysia (Tyndall 2002, 178) and Hong Kong (Jessop & Sum 2000). Cyberjaya is the capital city for Malaysia MSC project, while Cyberport fulfils a similar function in Hong Kong. Spurred by the hi-tech boom in developed countries such as Australia, Germany, the US, and UK, other major cities in East Asia have joined the technology race. Despite strong government support on both projects, Cyberjaya and Cyberport have encountered resistance. This section presents the issues and strength of both projects, based on data gathered from interviews and secondary data.

5.2.1 The development of Cyberjaya, Malaysia

The idea of Cyberjaya originated in 1999, at almost the same time as the Malaysian government decided to create a new administrative and smart city (Putrajaya) for the country. The city was planned with an emphasis on enterprise and office development that would act as the catalyst for the growth of ICT enterprises and the multimedia industry in Malaysia. Under the MSC plan, the 7,000 acres of freehold land that makes up Putrajaya is divided into four clusters: a housing area; a retail district; universities (with a focus on creative industries, multimedia and technology programs); and the business park. The establishment of the Multimedia Development Corporation (MDeC) in Putrajaya administrates the billion-dollar MSC project, adhering to an annual budget of 30 million ringgit (Vicziany & Puteh 2004). MDeC is incorporated under the Companies Act of Malaysia, and owned and funded by the Malaysian government. This combines entrepreneurial efficiency and the effectiveness of a private company, and the authority of a high-powered government agency, and fosters an environment highly conducive to the creation of a successful MSC Malaysia. MDeC’s primary role is to advise the Malaysian government on legislation and policies, develop MSC Malaysia- specific practises, and set breakthrough standards for multimedia operations.

Many incentives and benefits have been offered by the government to draw high-tech transnational investors, including unrestricted employment of local and foreign “knowledge workers”, exemption from local ownership requirements, and the freedom to source capital globally (MDeC 1996). The private developer, Setia Haruman Sdn Bhd, has been appointed by the Malaysian government to design and prepare the primary infrastructure for the Cyberjaya Flagship Zone (CFZ) (Setia Haruman 2010). Each zone is fully equipped with a host of intelligent network services and interactive broadband services. Setia Haruman Sdn Bhd is involved with the whole development of the city, from planning and designing to the provision of basic infrastructure, and the marketing and selling of land parcels and other real estate developments to investors. They also offer assistance to MSC-status companies in obtaining the right land and approvals for sub-division and building plans. Setia Haruman are developing a residential area to cater to their target population of 210,000 in the next ten to fifteen years, as well as business developments providing for up to 120,000 employees and institutional establishments for 30,000 students (Sarif 2010, Setia Haruman 2010).

Unfortunately, the development of Cyberjaya has been slow when compared with other similar ICT cities in countries such as China and Singapore. In addition, the city failed to attract long term residents, in particular local people. Housing prices are generally too expensive for Malaysian locals to afford, and public transportation is limited. Many of the houses around 57

Cyberjaya were purchased as investment properties by foreigners. These factors keep the active population of Cyberjaya relatively small and not capable of supporting a growing business sector. Those who open businesses in Cyberjaya are either foreign or already established local companies. The development of Cyberjaya has taken place for more than ten years, but no significant changes to the city can be seen. There is little improvement on the facilities and basic infrastructure of the city, although the Internet speed is reported as the fastest in Malaysia. Overall the internet speed in Malaysia is ranked internationally at 32nd- place, although it is one of the fastest in South East Asia. The image of the city is still largely unfavourable among the ICT key players in Malaysia, including the LCP staff.

Over past five years however, the image of the city is slowly improving. The active role played by MDeC in developing ICT-related sectors, locally and globally, has contributed indirectly to a positive image of Cyberjaya. Also, with the latest technology facilities—including the Multimedia Content Initiative Centre [MAC 3]) and the incentives provided by the Malaysian government and employers (Ramasamy et al. 2004)—more Malaysian creative talents who reside abroad have chosen to work with the Malaysian government and various market players to assist in the development of creative sectors in Malaysia (3D World Magazine; MDeC 2010). Some expressed interest in opening branches of their company in Cyberjaya, for example, Rhythm and Hues Studio. Their presence in Cyberjaya helps to promote the city to non-locals, and gives incentive to local companies to open businesses there. Further, many of the successful Malaysian creatives abroad have been appointed by the Malaysian government to sit on the advisory board (similar to MDeC) (MDeC 2010). The presence of MDeC in Cyberjaya brings a positive image to the city on account of the substantial improvements in the progress of Malaysia’s ICT and animation sector over the last decade. The market players in animation and other content sectors in Malaysia agree that MDeC has contributing hugely to a positive image of cartooning and animation in the country and region (3D World Magazine 2009). Their multipurpose role and collaboration with high profile international companies like Al-Jazeera, will help to boost the perception of the city as a hub for creative sectors companies.

Cyberjaya is located near major transportation systems, including the highway express from the city of Kuala Lumpur (26 kilometres) and Kuala Lumpur International Airport (15 kilometres), and commuter and fast trains (Refer Appendix 7). Cyberjaya was built to function as the regional and glocal ICT hub to rival the best in the world. The developer of the city, Setia Harum, claimed the city’s competitiveness as a global ICT hub has marked Cyberjaya as one of the top three global destinations for business support services and outsourcing. Cyberjaya is a self-contained intelligent city with world-class IT infrastructure, and low density 58 urban enterprise, as well as state of the art commercial, residential, enterprise and institutional developments. This city is designed to be an ideal place to live, work and play, with convenient amenities and facilities. Importantly, Cyberjaya is the MSC capital city for the country, and home to knowledge workers, enterprising businesses, students and families. To date, Cyberjaya is home to many multinational companies such as Shell, EDS, Ericsson, BMW, HSBC, Motorola and DHL. There are several higher institutions and smart schools operating in Cyberjaya, from the Limkokwing University College of Creative Technology (LUCCT) and the Multimedia University (MMU), to the Cyberjaya University College of Medical Sciences (CUCMS). The major programs of these institutions centre on ICT sectors. These private institutions are among the leaders in providing higher education in creative industries and ICT in Malaysia and the Asian region. Cyberjaya’s residential areas offer a wide array of homes, catering the middle to high income bracket. The township also provides other convenient amenities such as a hotel, boutique malls, recreation centres, a community clubhouse and schools. To make the city a world intelligent city, broadband services using fibre optic network enabling high speed Internet access and network solutions are provided.

Cyberjaya was designed to be an ideal city for creative companies and workers to work and stay. Despite this, the city needs more improvement particularly to strengthen their basic infrastructure and facilities in order to attract more people especially local residents to stay in the city permanently. At present, those who work and study in Cyberjaya prefer to stay elsewhere and commute to the city. In addition, the former Malaysian PM, Mahathir, says he was not happy with the development of Cyberjaya due to its slow growth (Setia Haruman 2010). The slow progress of the city is partly due to the recession in Malaysia in 2008. With the year 2020 approaching, the Malaysian government is speeding up the development of the city by pumping in more funding with the help from private companies to achieve the desired status of “world intelligent city”.

5.2.2 The development of Cyberport, Hong Kong

The idea for the Hong Kong Cyberport was conceived by “Hong Kong’s Bill Gates”, Richard Li. The area is being developed by both Li and a Singapore-based corporation, Pacific Century CyberWorks (PCCW) to foster the development of Hong Kong’s information services sector, and to enhance Hong Kong’s position as Asia’s premier information and telecommunications hub. The government will provide support to this development by investing US$2 billion (HK$15.8 billion) to promote the Cyberport as a place to commercialise creative ideas and incubate start-ups. The joint partnership between Hong Kong SAR Government and private corporations in Hong Kong is part of the state’s attempt to increase its capacity in economic

59 development and now is commonly adopted (Lee & Haque 2006). As well as the Hong Kong creative digital community, Cyberport has an energetic cluster of creative ICT and digital content tenants, and comprises a mixture of four intelligent office buildings, a five-star hotel, a retail entertainment complex, and about 2,800 deluxe residences. The Cyberport was established with the aim of being the leading information technology hub and digital city for the Asia-Pacific region (Refer Appendix 8). Cyberport has won numerous awards locally and internationally (Hong Kong, Cyberport 2010).

Since its launch, Hong Kong Cyberport has encountered political problems, particularly a public discontent over their lack of accountability. Some claims allege the Cyberport project was assigned to PCCW (chaired by Richard Li) without a competitive tender, due to Richard Li’s close friendship to Hong Kong’s Chief Executive Tung Chee-Hwa (Grammaticus 2000; Lee & Haque 2006). The government has been heavily criticised and accused of practising cronyism (Lombardo 1999). To date, Cyberport has failed to create a significant impact upon the sectors it was designed to support. The number of larger companies is not as high as expected by the Hong Kong government. In 2008, less than one hundred IT companies and two university programs in four office buildings, one five-star hotel, a retail arcade, and a deluxe residential development were operating at Cyberport (Fong 2008).

Nicholas Yang, CEO of Cyberport in 2003, claimed that the slow progress Cyberport was due to the SARS epidemic that hit Hong Kong in the middle of 2003, and that Cyberport subsequently has refocused on digital community and commercialisation (Fong 2008). Before that only one third of Cyberport was allocated as residential, since the main focus of the project was information infrastructure for Hong Kong (Lombardo 1999). With the refocussing of Cyberport, there are hopes to sustain the project, which has had financial losses. Unfortunately, because of the limited facilities, the tenants at Cyberport have claimed it is not a good place to live (Fong 2008). Further, the constant changing of top management at Cyberport has distorted the original plan. The present CEO, Herman Lam, stated that the only focus of Cyberport today is on ICT development (Hammond 2010). With this narrowed focus, and the establishment of a competitor, Hong Kong’s Science Park, the attractiveness of Cyberport has lessened. With the rapid development of other competitors in Hong Kong and China, the future of Cyberport is uncertain. At present, Richard Li is far less involved in the project, a factor contributing to investors diverting their attention from Cyberport to other similar projects close by. The next section will discuss the similarities in development issues faced by Cyberjaya and Cyberport.

5.2.3 The similarities between Cyberjaya and Cyberport

The similarities between Cyberjaya and Cyberport lay in their development at the end of the 1990s after a significant growth of globalisation and the revolution in ICT. A mixed model was used in both projects, adopting earlier successful ICT-related projects such as Silicon Valley and Taiwan’s Hsinchu Science Park, with the incorporation of some additional local culture to suit the local environment. Both places announced their intention to become Asia’s world city (MSC 2010, Jessop & Sum 2000). Both projects received considerable support from their governments, and promoted close cooperation between the government and private agencies. Their major focus was to be the primary city for the development of ICT growth for their country and in the region.

However, both cities have had difficulties attracting businesses. Infrastructure is still insufficient, and particularly fails to attract more local companies. For example, as a new and small company, LCP prefer to have their operation in a more established city like Shah Alam rather than Cyberjaya. Cyberjaya is struggling to attract ICT companies to operate there despite offering many incentives. Similarly, in 2008 Cyberport had less than one hundred companies establish branches of their business there (Fong 2008). To make things worse the first ten years of the twenty-first century saw Asia and other parts of the world hit by economic recession, epidemics (bird and swine flu), and natural disasters. These factors saw the development of both projects affected by a lack of foreign investment. Nonetheless, these two cities are not isolated in facing this scenario (Fong 2008). This issue is common among the new development areas globally. Ordinarily, new areas like Cyberjaya and Cyberport take time to be developed, and for people to move in permanently and feel comfortable to live and work there.

5.2.4 The differences between Cyberjaya and Cyberport

While Cyberjaya was created to move Malaysia forward as a developing nation, the Hong Kong (HK) Cyberport idea was initiated by Richard Li. While the main force behind the Cyberport project is an individual, Cyberjaya is a government initiative that develops Malaysia’s ICT sector. The development of Cyberjaya is based on three phases. The third phase will span from 2011 to 2020, the date the Malaysian government has set as a target for Malaysia to reach developed country status. To make it more appealing, Cyberjaya is developed close to Putrajaya and Kuala Lumpur International Airport, which is located more than thirty kilometres from Kuala Lumpur. Meanwhile, Cyberport is located near other government and private ICT projects, such as the HK Science Park, the HK Industrial

Technology Centre Corporation, and the HK Industrial Estates Corporation. Further, a CEO is appointed by the government to run the Cyberport project (Ostrov 2002). As such, the role of Cyberport keeps on changing according to the CEO’s vision. For example, Jessop and Sum (2000) report that some market analysts such as Webb claimed that Cyberport “is no ‘Silicon Valley”, and has been developed as a real estate project rather than a high-tech project. However, Nicholas Yang, the former CEO of Cyberport, points out that their focus is not on R&D, but rather on creating a space where technology people and businesses can connect because it is a high-tech science park (Fong 2008). The newly appointed CEO as of 2010, Herman Lam, has announced that Cyberport is now dedicated to helping local industries to upgrade their skills and resources in order to prepare them or sharpen their competitiveness in the digital era. The development of Cyberjaya is focussed on the federal government’s mission for Malaysia to reach developed country status.

Another striking difference is that although Cyberport follows the Silicon Valley model, they also looked to Singapore, Malaysia, the US, Australia and Europe for insight. Further, their policies are strongly influenced by Israel’s high technology approach (Ostrov 2002). In contrast, Cyberjaya’s primary model is based on Silicon Valley, with significant local culture influence. According to Fong (2008), the focus of Cyberport has narrowed since the new development of Science Park in Hong Kong. However, the growth of Cyberjaya is still expected to contribute significantly to the goal of reaching developed nation status by 2020.

5.2.5 Conclusion on Cyberjaya and Cyberport

Both Cyberjaya and Cyberport are facing almost identical development issues. The governments of Hong Kong and Malaysia are actively playing their role in the development of the cities, and at the same time marketing their respective cities to global investors via various incentives. As a result, both cities managed to attract major names in technology sectors such as IBM, Microsoft and Apple to operate in the cities. However, with the fierce competition from other countries in the region and the world, Cyberjaya and Cyberport are still not having great success in becoming a world city, even in the Asian region. Their competitors in this sector— including India, Japan, Singapore, South Korea and Taiwan—are more advanced, are at the forefront of the creative economy sector in the region, and act as sources of professional advice and human resources the global market seeks. China and Indonesia have been the latest threat for both Cyberjaya and Cyberport; both are aggressively developing the creative economy in their countries on a larger scale. Regardless, both Cyberjaya and Cyberport have strengths that other places lack. They provide a fast speed Internet connection (faster than Indonesia), and English is widely spoken in Malaysia (more widely than in Japan, South Korea

62 and Taiwan). Also, both have a stable political environment (compared to India and Indonesia). With these strengths, both Cyberjaya and Cyberport can become important cities for the creative economy in their region. However, they have to speed up their development, focus on their mission and objectives, and stay abreast of industry developments.

Beyond Cyberjaya and Cyberport, there are other similar mega projects around Asia being developed to become world-class ICT places. For instance, the Singaporean government has taken pro-active steps to make the island a global technopolis and biopolis (Khondker 2003, 151). According to Khondker (2003, 151-152), the objectives of the political, economic and academic leaders are to transform Singapore from being disadvantaged because of their lack of natural resources, to becoming more competitive with their human resources, R&D, and technology. Singapore has limited resources compared to neighbouring countries such as Malaysia and Indonesia, but due to its government’s creativity has become a developed country. Thus, natural resources alone are not enough for a place to become successful with their economy. Creative imagination is also needed to maximise or create the resources. This is when creative economy activities play a major role for a place to sustain and become competitive. Since the UNCTAD (2008) report on the potential of creative economies, the Malaysian government has been actively promoting and supporting activities relating to creative sectors. With this in mind the rest of this chapter report findings for LCP in relation to each of the research questions.

5.3 RQ1: What Are the Main Operational Issues for Malaysian Creative Economy Enterprises?

Figure 5.3a: Les’Copaque Production 3D Animation Movie Poster (Les’Copaque 2010)

In December 2009, interviews were conducted with LCP managerial staff, before resuming in January 2010 with their other staff from all departments and rankings. All interviews were undertaken in their meeting room at their office at No 1, Jalan Boling Padang G13/G, Seksyen 13, 40100 Shah Alam, Selangor. A total of nine interviews were conducted with LCP. A tape recorder was used during the interviews with the staff. The names and positions of the respondents are presented in Table 5.3.

Research Question One is answered in the form of seven themes arising from the interviews with key informants in each case. Tables and exhibits are also used from this section onwards whenever necessary.

Respondent Profile

Out of the nine respondents only one female staff was interviewed (refer to Table 5.3). Seven of the respondents were younger than 25-years-old, and two were aged younger than 30. Five respondents had worked more than two years with the company, and the rest worked with the company for between one to two years. Each respondent represented a different department of the company, from Marketing and Sales, Modelling, Layout and Script Writing, to Animating, Music, Rendering, and Compositing.

All respondents obtained training and education from local or international universities in a Creative Industries discipline, and their highest education level was a Bachelor’s degree. The majority of the respondents attended a local tertiary institution. Two respondents earned their degrees from Malaysia Multimedia University (MMU), Cyberjaya, while the remaining staff studied at Universiti Teknologi Mara (UiTM), Universiti Kuala Lumpur (UniKL), and Universiti Teknikal Malaysia (UTEM). Three of the staff (Kevin, Azfarin and Safizan) completed their diploma at private local higher institutions (two at Lim Kok Wing University College, and one at One Academy). Later, the respondents went abroad to earn their degrees, two (Asfarin and Safizan) went to RMIT, Melbourne, while Kevin went to University of Hampshire, UK.

Table 5.3: Respondents Profile for Les’Copaque Production Sdn. Bhd. Respondent Post and Department Age Sex Years of Education background working Ehsan Head of Marketing & Sales 24 M 3 Bachelor Degree (MMU) Syed Head of Modelling 22 M 2&1/2 Bachelor Degree (UniKL) Fuad Head of Layout 24 M 3 Bachelor Degree (MMU) Ida Script Writer 24 F 1&1/2 Bachelor Degree (UiTM) Faiz Head of Modelling 22 M 2&1/2 Bachelor Degree (UniKL) Kevin Animator 25 M 8-months Bachelor Degree (Uni of Hampshire, UK) Azfaren Music Composer 26 M 2 Bachelor Degree (RMIT) Raffe Lead and Rendering Artist 24 M 1&1/2 Bachelor Degree (UTEM) Safarizan Head of Compositing 29 M 2&1/2 Bachelor Degree (RMIT)

This data suggests that to obtain a higher level of education, overseas higher institutions are still major choices among Malaysian creative industries workers particularly in English speaking countries like Australia, New Zealand, the United Kingdom (UK) and United States (US). These countries remain the major countries for Malaysian students to get their education due to the practical expertise of teachers, and the high quality of education in general. 65

According to Verbik and Lansanowski (2007) from 1996-2006, Malaysia remained one of the ten countries most likely to send students to Australia, New Zealand, the UK and US. The same report stated that Malaysia is becoming one of the emerging contenders—apart from China and Singapore—in attracting international students.

To prepare itself as a global player in the education market, the Malaysian government has been sending Malaysian academics abroad for more than two decades. Through its Ministry of Higher Education (MOHE), the government has been sending tutors and lecturers from public universities overseas to obtain their postgraduate education, particularly in new areas such as animation and tourism. On completion of their study, these tutors and lecturers return to Malaysia as industry experts. Also, other government and semi government agencies send their staff abroad to obtain higher education to prepare Malaysia to become a key player in the Asian region. In five to ten years, there will be more expertise in animation and tourism in Malaysia. However, at the moment there are not enough professionals in these two sectors.

Working Environment

When asked about the working environment at LCP, all respondents gave similar answers. Generally, they are satisfied with the working environment at LCP due to the open concept of the company. All respondents stress how they work as a team, like a big family, and support each other. In television, newspaper and magazine interviews, the CEO and other directors of the company also stress the openness adopted in their company. The company’s management have created a relaxing environment for their staff by organising events such as monthly themed dress-ups (see Figure 5.3.1), and company field trips around Malaysia.

Figure 5.3b: Dress theme day “Headwear” (Les’Copaque 2010).

In addition, the company allows their staff to work in other departments and be involved in their film and television series. At least one senior respondent, (Fuad), has worked at two departments in the company. Before working with the layout department, he worked with the merchandising department. The company blog shows their staff members were also involved in production activities like working as voice actors.

To generate creative ideas with their staff, LCP meet weekly and monthly. Also, they use other methods—including discussion, brain storming, and in-house training—to encourage contribution of ideas to strengthen their products. All staff members are encouraged through many communication mediums to give ideas and comments at any time and on any aspects of the company. Occasionally for staff development, LCP sends their staff within Malaysia and abroad for training, and to attend conferences, expos, festivals, fairs, seminars, and workshops. With the help of government organisations—particularly Multimedia Development Corporation (MDeC)—the staff can upgrade their knowledge of the latest software in the market, and sometimes are invited to speak at local and international seminars relating to creative industries and multimedia. LCP’s official blog shows that the company is working closely with MDeC to give their staff local and international training and exposure by attending big events such as the Cannes Film Festival, and the IPCCA creative contest. MDeC also provided a rendering machine to the company when they were in the process of producing their first 3D film, and offered advice, particularly on marketing their products. MDeC has played a significant role in providing a platform for LCP staff development, particularly at international level.

Evolving an animation sector that offers entertainment elements to viewers requires a more relaxed and open working environment. As Florida (2005, 9-14) states in his book, people working in the entertainment industry do not like rules and regulations that might prevent them from coming up with creative ideas in their work. In order to generate high quality imaginative ideas, people involved in the entertainment industry should be given more freedom with their working style and environment. The working environment at LCP is designed to encourage staff to offer their best performance in order to create products that meet the desires of the market. Companies involved in ICT and entertainment sectors globally are known for having a different style of management. Normally they do not have strict working hours and dress codes. Since LCP is a private company in the entertainment industry’s animation sector, their management style is different from the traditional modes of operation. With more than ninety per cent of the staff under thirty-years-old, LCP has created a management style that is suitable to their nature of work. Most staff members have an ICT background and understand what they need and want from their workplace in order to deliver the best ideas for their animation products. Their operation is run in accordance with the global practises of most other animation studios. This type of management is also being implemented by other key players of ICT companies in the world, such as Google. This is what LCP is implementing in their daily operation and management.

Location

When I asked the management and staff about why their office was located in Shah Alam and not in the capital city of MSC (Cyberjaya), they said that to them Cyberjaya is not the only place to be creative in their work; they can become creative where ever they are. Syed who represented the company’s management, responded that:

...the opportunity here is good... Shah Alam is actually a growing capital for business, so it’s better than Cyber, because... The lifestyle... The life in Cyber is a bit, a bit secluded and very... limited... Shah Alam is a bit in the middle of everywhere, so it’s easier...

Another reason for the company to have their operation in Shah Alam and not in Cyberjaya is its proximity with Kuala Lumpur. While Cyberjaya is in the middle of nowhere, Shah Alam has lively communities and societies, which is good for LCP’s products and services particularly for its merchandising products and services. There is nothing visible and interesting in Cyberjaya to attract people to live there. There are no trees, shopping malls, hybrid communities, or reasons to go there, except for work.

Figure 5.3c: Les’Copaque Production Operation Building in Shah Alam (Les’Copaque 2010).

Many staff members have been to Cyberjaya or studied in the city before. On the evidence of their experience, they prefer their current location rather than Cyberjaya. They enjoyed the organic environment of Shah Alam rather than the cluster-style of Cyberjaya because their products and services are family-focused. Shah Alam, which is a mature, developed city, offers greater advantages, particularly in selling their merchandise. Although Cyberjaya provides a faster Internet connection, LCP are not outsourcing their products and services, therefore a high-speed Internet connection is not their main priority. At the moment, LCP has no plan to move their operation to Cyberjaya because they can do their work at their present location or anywhere they want to. However, staff members noted that despite some changes to the city for the past five years there has not been as much change as they expected. Importantly, although Cyberjaya has all the right facilities for ICT or animation companies to allow effective operation, it does not have other facilities to attract people to stay there. This needs more attention from the government.

Sector or Industry

During the interviews, management and staff talked often about creative industries and animation while describing their field. Also, the majority discussed Malaysian culture, particularly in differentiating their products from others. Document analysis reveals that creativity and culture have also often been mentioned by top management, such as their CEO. All agreed that they are primarily involved in the creative industries, with a strong element of Malaysian culture being incorporated in their products and services. Their animation series and 3D animated film applied Malaysian culture basically on three major ethnic groups in the country (Malay, Chinese and Indian).

When asked to what extent Malaysian culture is being adapted in their products, Ida stated that:

For me, I can see that if you watched Cartoon Networks there are so many kinds of cartoons you know: cartoons like Ben 10; and then they have cartoon like Samurai Jack, which is from Japan. People want to see different things. I really believe that. When you reached one level, people will get bored with all those same ideas and they want something new, something fresh. For me, I think Malaysia is still new, is still young and very fresh in ideas. But I really think that our content can go global because people want to see what Malaysia wants to bring to global; they really want to see our culture and we have Malays, we have Chinese, we have Indians. We live happily, we live together.

Figure 5.3d: Les’Copaque main characters consisted of three major ethnic in Malaysia (Les’Copaque 2010).

After the launch of the MSC in the 1990s, the government spent billions of dollars training Malaysians ICT by sending them abroad, mostly to the US. One pioneer of this project, Hasnul Hadi, who works for MDeC, reported that because the country was starting from ground zero, building a multimedia hub took a substantial effort both in design and implementation (Plantec 2009). The government had to train a sophisticated workforce from scratch, and the country had to start an entire university (Malaysia Multimedia University) in 1996, to ensure they could train the people properly to handle incoming investment opportunities. To date, the government still trains their work force with the help from local and international experts. Further, Hadi notes that the government acknowledges China and India are more advanced than Malaysia in many aspects, but Malaysia also wants to play a part in this competitive sector (Plantec 2009).

Although multiethnic culture is probably LCP’s main advantage in bringing their animation products to the world, Malaysia should not depend on this advantage too much. At present, many countries in the world are also claiming that they are multiethnic and religious. Soon this aspect will not be exclusive to just Malaysia. In addition, bringing this local culture to a global market is challenging, particularly when competing with more advanced animation products in Europe, Japan, and the US. Perhaps the global market will not understand Malaysian culture in the same way as the local or regional market. This could be a great challenge for LCP in marketing market their animation products outside the region. With the strong global presence of Japanese animation and anime for more than a decade in the market, LCP animation products could be under threat. However, perhaps after all these years the market wants new and fresh ideas, and LCP animation products can meet those requirements. With the positive reaction they received from countries in India, Southeast Asia, and Turkey, there is arguably a strong future waiting for them in this sector, although it is not without challenge.

Expectation and Future Plan for the Company

LCP has many future plans, but some cannot be disclosed during the interview because they are still in the discussion stage. Among others, their future plans are to open a Upin dan Ipin theme park, or franchise this concept to others. Unfortunately, LCP respondents were not authorised to elaborate on the plan. From the document analysis gathered by this study, the LCP CEO, Hj Burhanuddin Md Razi (Raja Azaham 2009) revealed that the company is not going to run the operation of the theme park; rather, they will market their licence and idea to establish the park. The CEO later commented (after translation):

Upin and Ipin theme park is what we really hope to build and we are in the process of looking for those who are interested to make this into reality. I think it is about time for Malaysia to have theme park with Malaysian identity, and not following Western ideas because we have to be proud of our own product (Raja Azaham 2009)

In the same interview, the CEO (Raja Azaham 2009) announced future plans such as Hindi language voiceovers for certain films, their second 3D animation film, Upin dan Ipin: Angkasa (Upin and Ipin: Outer Space), which will target the international market by focussing on global issues, and a film called Zaitun, a biopic about Malay singer, Zaitun Sameon.

Respondents also were asked about their expectations and hopes for LCP, and all had different answers, but with the same basic themes. Some hoped to make their company a Malaysian World Disney (Ehsan); to become Malaysia’s key player in multimedia productions

71 and special effects (Syed); to show the Malaysian multiethnic culture to the world (Ida); to expand into the global market (Fuad); to venture into different products like action films, magazines, and comics in the same way as Pixar and Disney (Faiz); to become a Malaysian icon that binds all Malaysians together despite their differences (Azfaren); to become more competitive with other international companies, and to become well-known like Pixar (Rafee); and to create more job opportunities for Malaysian multimedia graduates (Saff).

Musical composer, Azfaren gave a slightly different answer:

We have Malays, Chinese and Indians, so it is so complex and there’s nothing that binds everyone together. There’s nothing like one Malaysian icon, so we want to create something for this, you know. So it’s a big mission, lah. So it’s not just cartoon. I’m so proud to be part of this company because we are creating something that contributes towards this. Everybody contributes. We don’t have to be doctor or engineer. Creative people also can contribute something, so at least it shows that we are, we Malaysians are balanced; we have the creative side and other side, so we have that balance. We want to show that creative people also can contribute something to the country.

These expectations coincide with those of most people in the animation sector. No respondents gave answers that differed that greatly from one another. This showed that the staff expected the company to focus on expanding their products and services around the animation sector, including expansion into other animation-related sectors. While their scope of interest is mostly limited to animation, this is good since they are focussed on their sector and playing to their strengths. Their expectations are realistic and achievable for their company.

There has been positive progress in much of LCP’s plan at the time of writing this thesis. Some of their future plans are connected closely to animation sector, and some are not directly connected to the sector. Special caution must be given to their plan to diversify their products and services because as a young company they should concentrate on building up a solid foundation rather than expanding in the areas that they have no expertise in. Since the animation sector is a highly competitive sector—particularly when considering mature and advanced countries in the region such as China, Japan and South Korea—LCP’s plan for their future should be different from what these countries are offering in the market. Working together with companies from these countries means building strong connections with the sector in those countries. This is discussed in detail later in this chapter.

Company’s Mission

Generally, all respondents were found to be working towards the company’s mission and objectives. Among the objectives mentioned are, showing the Malaysian public about the potential of creative industries; creating a platform for young creative talents to practise and show their creativity; acting as a stepping stone for their staff to start their own business in creative industries; and introducing Malaysian multiethnic culture to the world.

All the staff stressed the company’s mission to showcase Malaysian culture through globally released feature films. Azfaren associates himself closely with the company’s logo which is the frog under the coconut shell:

I do... because, especially with our logo... frog...”katak bawah tempurung” (Malay phrase to describe frog under the coconut shell), I always thought about that you know... Especially for Malays, they have to be more open minded. I feel like, I’m comfortable with this, so that’s why I’m here and work here rather than working abroad, because I don’t see myself just as a music composer, but as Malaysian... And to keep our culture alive, like recording our culture, so we have this, this recording how these kids growing up in kampong... This visual makes me feel arrr... being part of it...

In the many newspaper interviews done with LCP’s top management staff, this point has always been stressed—Malaysia’s culture is the important element they wanted to express in their creative and animation products.

On the company’s portfolio from their website, and in an interview with InTECH, a local technology magazine, the Creative and Marketing Director of LCP, Mohd Nizam Abdul Razak, (Patrick 2008) was reported as saying he believes international markets will be interested in Malaysian culture. Further, LCP wishes to produce more IPs, and assist more companies in Malaysia to get involved in animation and multimedia products.

Creative Industries Development in Malaysia

When asked their opinion on the development and progress of the creative industries in Malaysia, all respondents gave positive answers. At the same time, they also realised how competitive this sector is, and that there is more work to be done in order for their products to compete on the international market. Ehsan who represented the management of the company observed:

Creative Industries is actually exhilarating because the work and the development you see right now right, it’s up significantly for the past three years. We have a lot of animation works to be looking forward to actually. All of it is not being mentioned yet because it is not finalised yet, but it has a greater future in animation as well in other aspects in Malaysia. 73

When asked what makes their products more successful than other animated films and television series produced in Malaysia, the staff argued that their company’s products are what the public wanted, that they had quality products due to three years of market research, the right timing and luck, and unique characters.

As Saff responded:

I think perhaps because Upin and Ipin are cute (laugh) Maybe, lah, because if you ask the school children, right, we had several research on our film, it is not like... It is not one year project. We started in 2005, after three years, after we had tested the market and all, after feedback, now only we managed to reach this level, lah. Because the important thing is the pre-production, lah. Our management also played their role.

The LCP staff seemed to have high confidence in the growth of animation sector in Malaysia and the rest of the region, especially with their products, which they said are different from what the market currently offers. However, because their products are different and include a strong element of Malaysian culture, it might be harder for them to enter a bigger market. The countries around the region are bombarded with western films, TV series, books, comics, magazines, and merchandising that are aggressively being marketed. Malaysian cultural elements that LCP embed in their products could be problematic for audiences from other countries to understand (Muthalib 2007). Nevertheless, LCP animation series and 3D films have received significant positive responses from South East Asian audiences and other Asian countries. This is a good sign that their products could be marketed further, at the very least in the Asian region.

Today, LCP is still depending heavily on the government and other Malaysian private companies for funding and support, without which, their growth and expansion could be affected. They have identified this issue and are starting to find their own financial resources with international companies from China and South Korea (3D World Magazine 2010, 70). By working together with the companies from these countries, LCP can study the market and learn about animation sector development in these countries. This can ensure that LCP remains competitive in the region, and becomes more productive with their products and services. However, competing with established animation products from developed countries is not a particularly easy task. Even with continuous support from the Malaysian government and private companies, LCP faces a significant struggle to compete with other animation companies in the region and world.

Another market that the government is approaching and promoting is the global Muslim market. Recently, the Malaysian government has moved in promoting and developing the country to become a world “halal hub”—a smart move considering its steady growth. Halal is one of the most important concepts in Islam and it means “permissible” with a market estimated worth US$150 billion (Fischer 2008). The concept covers food as well as non-food products and aspects such as slaughtering, storage, display, preparation, hygiene and sanitation (Shafie & Othman 2006). The Malaysian government has initiated many projects to become the market leader for halal products and services, including Islamic finance and insurance. MDeC has worked together with Al-Jazeera to produce the animated television series, Saladdin (the story of a famous Muslim war hero and his clash with the Crusaders in Jerusalem). While the Malaysian private sector is also playing an active role in projects such as The Islamic Fashion Festival (Pak 2009), the adaptation of Islamic finance practices by Malaysian commercial banks (Rosly & Abu Bakar 2003), and halal cosmetics for Muslim (Abd Aziz, Amin & Isa 2010). Malaysian content products are suitable for the Muslim market. With low levels of violence and almost no obscenity—particularly in their animation, film and television products—Malaysia can enter this niche market with little difficulty. In fact, one of the main creations from LCP has Muslim characters, and their scripts are influenced substantially by Malaysian Muslim lifestyles. However, not all market players in Malaysia are keen to be associated with its culture. Some refuse to be recognised as Malaysian and avoid associations with its cultural image.

5.4 RQ2: What is the development path for Malaysian creative economy enterprises?

Animation History in Malaysia

Animation started in Malaysia mainly for documentaries and public service filmlets by the Malayan Film Unit. However, the significant impact of the first cartoon Malay magazine, Gila- gila made the local market realise the potential of a cartoon sector in the country. The early development of Malaysian cartoon and animation products were inspired mostly by western influence. For example, Gila-gila copied the concepts of Mad and Crazy magazines, before they gained their own identities that reflected local culture. The earliest local animation products (Kluang Man, Silat Lagenda and Yokies) have some influences from the west and Japan (Sang Wira) (Mahamood 2001, 142-143). Nonetheless, Malaysian culture was still the primary element adopted by these early local products. Since then, animated products for local television and film have grown to embrace Malaysian culture. The future direction of

Malaysian animated products is to have significant global features with local culture influence (3D World Magazine 2010).

With government support and encouragement, more private companies started to enter the animation market in the mid-1990s. The Malaysian government has always been at the forefront in developing and promoting local animated cartoons by providing moral, material and financial support. Malaysian culture has been one of the most important aspects that the government stressed upon in local animation products. This is based on their realisation that foreign cartoons—especially from the west—are not suitable for local viewers, for they show negative values that do not conform to the local culture (Mahamood 2001, 135). Hence, the animated television series such as, Anak-anak Sidek, Kacang, Lat the Kampong Boy, Tuah, Upin & Ipin, and Usop Santorian feature Malaysian culture. However, these series did not have such a substantial impact as LCP’s Upin and Ipin. Also, these television series were only popular among a small group of Malaysian viewers, except for Lat the Kampong Boy, which managed to break through outside the Malaysian market. This success came because the television series was co-produced with international companies from the Philippines, the US and the UK. The series is adapted from the cartoon book by Lat, who is famous locally and internationally. Unfortunately, not all Malaysians were able to watch Lat the Kampong Boy because it was aired on a pre-paid television channel. Further, none of these television series were turned into films (unlike LCP’s treatment of Upin dan Ipin), and after one to two years they stopped their production due to internal problems and lack of response from the audience (Filemkita.com 2010).

Data gathered from the Filemkita.com website (2010), reveals that in 1998 the first animated film was produced in Malaysia. Silat Lagenda—adapted from the Malay legend of Hang Tuah and his four friends who lived in fifteenth-century Malacca—had a total production cost of RM 6 million. Unfortunately, the audience response was not favourable, and the box office takings amounted to less than RM 150,000.00. In 2001, a second animated film, Cheritera was produced by Matahari Animation and Production Sdn Bhd, and their Indonesian partner Red Rocket Animation. Once again this film did not manage to attract significant Malaysian audiences. The box office takings amounted to less than RM 3,000.00. Not long after that another animation film was produced and managed to collect almost RM 400,000.00. Putih adapted the classic Malay folk-tale, Bawang Putih Bawang Merah, a Malay version of Cinderella. The film did not use computer animation, instead using traditional drawing animation methods. Table 5.4 shows more details about Malaysian animated films.

Table 5.4: RQ3 - Animated films produced in Malaysia Title and Year Producer Total Story line Cost (RM) Silat Lagenda Peninsula Pictures Sdn RM 6 Malay self-defence called (1998) Bhd million Silat performed by five youngsters Cheritera (2001) Matahari Animation and Not stated Penan Kid (native ethnic in Production Sdn Bhd, and Sarawak) Red Rocket Animation (Indonesian) Putih (2001) Eurofine Production Sdn RM 1.1 Malay story version of Bhd Cinderella Geng: Les’Copaque Production RM 4 Action adventure about how Pengembaraan Sdn. Bhd. million twin and their friends solving Bermula 3D (2009) problem (Filemkita.com 2010)

3D Animation Movie in Malaysia by LCP

LCP is the first animation company in Malaysia to become successful with their animation products and merchandise locally and in the rest of the region. Their television series, Upin dan Ipin started to make a substantial impact in Malaysian animation scene in 2008, followed by their successful 3D animated film, Gang: The Adventure Begins in 2009. The total cost to produce the film was RM 4 million, making it one of the most expensive local films produced in Malaysia, but the cheapest 3D animation film produced in the world. The film and series were not only well-received in Malaysia, but also in other parts of the region, such as Brunei, Indonesia and Singapore. In Malaysia alone, the film collected RM 6.3 million—a significant collection for the Malaysian market and for local film. Today, other countries such as Singapore, Brunei, Indonesia, Turkey and India have started to buy LCP products. Their television series and 3D animation film won multiple awards locally and internationally. Presently, LCP is collaborating with Asian companies on future animation products. In 2009, they decided to market their 3D animated film in India, adapting it for the local market by working with popular Indian actors like Kamal Hassan to provide voices for the characters (LCP 2010).

LCP has managed to become an eye opener in Malaysia with their animation television series and 3D animated films. Their new ideas to produce animation products with local images and culture that still have a global appeal managed to raise the Malaysian animation sector to a different level. At present, the Malaysian public is aware of the potential of a Malaysian animated industry that features Malaysian culture. Additionally, the process of developing the

77 animation products involved three years of R&D, brainstorming, meetings, and discussions that resulted in LCP’s products entering the market with more preparation, the right timing, and meeting market demands. Further, their products were released at a time when animation sector was experiencing significant growth due to the advancement of innovation in the technology sector happening all over the world. Today, the facilities to develop animation products are better and cheaper compared to a decade ago. All of these factors combine with LCP’s new, unique ideas to make their products well received in the local and international market. This proves to other Malaysian companies that Malaysian culture has significant potential in animation market.

5.5 RQ3: How do Malaysian creative economy enterprises utilise traditional Malaysian cultural assets?

The findings in this section are answered holistically, based on the comparative analysis from the literature of similar cases studies, mainly in developing nations, as well as the key informant interviews and desk research.

I argue that there is a significant and close relationship between the animation sector and Malaysia culture. During the interviews, the LCP staff often talked about creative industries, creativity and Malaysian culture. Their top management also stress this particular point when they had interviews with the local media (Raja Azaham 2009; Patrick 2008). They categorised their products as belonging to creative industries, but they also agreed that culture is an important aspect of their products and making their products unique. This is in line with what Malaysian government wants from the animation sector in Malaysia: to have the country’s national identity in their products (Muthalib 2007). An UNCTAD Report (2008) stated that developing countries have rich cultural resources and these should be used to generate their economy. As a result, the animation sector in Malaysia has a strong Malaysian traditional culture when it comes to shaping the themes, subjects, plots, forms and content (Mahamood 2001, 149; Muthalib 2007). In addition, many authors in the literature have highlighted the close link between culture and creative industries.

There is clear evidence that the creative industries and cultural sector need each other to be become more competitive and to sustain their products in the market (UNCTAD 2004; 2008). In the case of Malaysia, their multiethnic characteristic is the unique image of the country (Musa 2000; Tourism Malaysia 2009), therefore culture has been used in many sectors, particularly when the country is marketing their products and services to the world. The close relationship between creative industries and cultural experience that exists in Malaysia is also taking place in other countries in Asia such as China (Keane 2007, 77), Indonesia (Indonesia Department of Trade 2008), Singapore (Yue 2006), and South Korea (Kim, Agrusa, Lee and Chon 2007). In these countries, the creative industries are being developed together and side by side with their cultural sector. Sometimes this happens indirectly rather than directly. For example, in Taiwan the term, creative cultural industries is part of the government’s commitment to protect their local cultural identity (Keane 2004). Thus, in Malaysia and the

Asian and European regions (Bayliss 2006; Nielsen 2004), it is clearly shown that their creative industries, culture and tourism are significantly related. 1

Although their products are primarily based on technological creativity, LCP realised the importance of adding Malaysian culture to their product and services in order to make them unique in the market. In their animation series, Upin and Ipin and 3D film, Gang: the Adventure Begins, the three major Malaysian ethnic lifestyles were portrayed. This feature has made them different, unique, and well received in comparison to the other animation series and films on the market. Malaysia has the advantage of being a multiethnic country, and this culture is being identified as a distinctive feature to be introduced to the world. Other earlier animation films and television series in Malaysia have also implemented Malaysian culture in their products, but majority of them failed to gain significant attention from local and international markets. Most local animated films failed in the market, while the television series only managed to capture children’s or small market attention. Learning from the failure of those earlier products, LCP managed to devise a better version of the animation and 3D products according to what the government and public wanted. LCP products showcased the multiethnic culture of the country in a manner that is suitable not only for children but also adults.

1 For the past decade, many research studies have acknowledged the growth of niche tourism activities called film tourism (Hudson and Ritchie 2006). Many places in Australia, New Zealand, the UK and US (refer to appendix 9) have reported significant tourist arrivals due to film tourism. However, the majority of the studies on this topic focus on developed countries in the west, although Asian and African countries (such as China, India, Indonesia, Japan, Morocco, South Korea, and South Africa) have also gained substantially from film tourism. For example, the number of Japanese tourists to South Korea increased significantly due to the success of their films and television series in Japan. Further, a South Korean television soap drama received positive responses in Asia, and the number of tourists from Asian countries to Korea increased tremendously, but data is not easily available on this topic. It is beyond the scope of this study to discuss this topic further. For further reading relating to film tourism refer to Beeton (2005); Busby, Brunt, and Lund (2003); Cousins and Anderek 1993; Singh and Best (2004); Urry (1990). 80

5.6 RQ4: How can Malaysia position itself in the creative economy in the region?

For the past two years Malaysia has moved aggressively to position itself in ICT and creativity related sectors not only in the region but also in the world. The development of the creative economy, which is the umbrella for creative industries, has become a top priority for the Malaysian government, and is always being discussed by the country’s top political leaders. To speed up the development of these sectors, the government and private companies are working together closely. The government is offering a range of incentives and support in terms of budget allocation, friendly policies, and world-class facilities for local and international companies to ensure the smooth growth of ICT and creative sectors in the country. Importantly, by the year 2020, the government wants Malaysia to reach developed country status.

Budget Allocation

In the 2010 budget, the Malaysian government allocated RM 400 million to the development of creative industries in the country (MSC 2010). With help from the Malaysian private sector, which is working closely with the government, there is potential for the creative industries to become a major income source for the country. Unfortunately, government allocation is not easily accessible due to the tight rules and regulation imposed on the application. MDeC noted there have been problems in getting the allocation approved by government for creativity sector, which is managed by MOSTI, because not many production companies have been helped with this fund (Leong 2009). To gain MOSTI funding for research and development grants is also difficult, particularly for the creative industries. Therefore, funding allocation alone is not enough if its accessibility is too strict and not transparent for the market players and researchers. This is an important issue that needs immediate attention in order for Malaysia to have a better position in the creative industries in the region and in the world.

Policy‐makers in Malaysia

Positioning Malaysia in the creative industries in the region and in the world needs the right policies. Clear policies from the government can provide a good guideline for Malaysian creative economy players. This study found that the policy-makers in Malaysia demonstrated they are actively promoting creativity, innovation and technology for the country’s development. Thus, they are working closely with each other and with other organisations internationally and domestically to develop the creative sectors in Malaysia. Among the major 81 policy-makers involved directly with creative industries development in Malaysia are MICC, MoTour, MOSTI, MOHE and MITI. A substantial impact can be seen in the animation sector, particularly after the establishment of MDeC. The number of local animation television series shown in Malaysia and outside the country has increased significantly. Friendly policies relating to creative activities in Malaysia are encouraging more local and foreign companies to invest in the country. However, there is no clear national creative economy policy being introduced in Malaysia, although the term creativity is used extensively by many policy makers. 2010 was announced as Year of Creativity and Innovation, but the impact was insignificant. With no clear definition of creativity and innovation in Malaysia, this designation remained nothing more than a slogan to the public.

More than five ministries play a major role in the growth of creative industries in Malaysia, with three ministries—MOSTI, MoTOUR and MITI—assisting LCP with their 3D animated film and television series. MITI and MDeC play a significant role in the marketing of LCP’s products outside Malaysia. Sometimes the roles of these ministries overlap, creating conflict during the implementation and enforcement stage. As well, debates take a long time to resolve, and this is not productive for the development a young and growing sector like creative industries.

Preparing for the Global Market

Importantly, can LCP products compete with the animation products from developed countries that have advanced technology and funding in the global market? With the significant gap that exists between the developed and developing countries in this sector, the chances of developing countries like Malaysia being competitive are slim. Animation products from countries such as Australia, Japan, the United States (US) and United Kingdom (UK) are recognised as market leaders in this sector (Rosnan et al. 2010). With rapid global changes in technology, the animation sector is considerably competitive. A small company like LCP may not be able to compete with large and established studios like Pixar and Disney. While LCP has expanded their market into most South East Asian countries and other parts of Asia, their products still cannot break into other regions such as the American and European markets. Animated products from Japan (such as Bleech, Doremon, and Thundercats), have been well- received all over the world due to their global characters, features and scripts. However, LCP can use their strength of natural resources and cheaper labour to come up with new ideas and services that target different markets. The animation products from LCP perhaps are more suitable for Middle East and Muslim markets than animation products from Japan. Hence, LCP should take this chance to network with companies from these markets. To date, with new networking and close ties with other animation companies from China, India and South 82

Korea, LCP can improve their products by sharing their technologies with each other, and enter these new markets. From this networking, LCP products can explore fresh ideas. Also, from their joint effort they may create a better chance to enter the global animation market. Local Malaysian animation companies such as Handy Pro are reportedly entering the Saudi Arabia market (Abu Bakar 2009), and MDeC has focused on the whole of the Muslim market through their joint effort with Al-Jazeera television channel.

To prepare the company to become competitive in the global animation sector, LCP introduced a slightly different formula for their second 3D film. For a start, their second 3D animated film, which is scheduled to be launched in 2011 and titled Gang: Outer Space has more global features. Also, the company is ready to venture into other types of films and not limit themselves to animation (Raja Azaham 2009). Also, LCP has started to collaborate with international partners from China, India and South Korea to exchange ideas about their animated products, and plan to co-produce animated television series and films in the future (LCP official website 2010). All of these steps are part of a plan to make an impact on the animation global market.

However, with the fast changes in technology happening every day, the immensity of this task should not be underestimated. To successfully position the country in the region, careful R&D and innovative planning is needed. This is a competitive market, and LCP faces fierce competition locally and globally. Also, governments around the world and Asian region such as those of China, Indonesia, Singapore and Thailand are investing billions of dollars to develop their creative industries. For example, Singapore has attracted not only many foreign investors, but also creative talents to work there by using high salaries as an incentive. By contrast, Malaysia has a different strategy and no interest in playing the “money game” to attract local and foreign markets. Their main intention is to develop a strong base to foster creative talent in Malaysia, as stated by MDeC Manager for Creative Industry Strategy and Policy (3D World Magazine, 73). Competing with animation products from developed countries is a difficult task for a small company like LCP, as animation companies from developed countries have more advanced technology and stronger financial backgrounds than their Malaysian counterparts. Thus, LCP and other Malaysian creative industries need to use their unique culture and access to cheaper labour to their advantage. With rapid expansion of Muslim market, the government is actively promoting Malaysia as a halal hub not only in food, but also content industry.

The halal market for Muslim is identified as significant, and many non-Muslim countries such as Australia, China, Denmark, New Zealand and the UK are also starting to capture this 83 market (Fisher 2008), mostly on offering more halal food outlets, cosmetics, pharmaceuticals and hygiene products. Although the halal term is not directly suitable to be used for animation or content industry products, the current Malaysian products are suitable for Muslim viewers. This is because the Malaysian culture that these products are portraying has significant influences from Malay (Muslim) and traditional Asia. Recently, a 3D animated television series called Boboiboy by Animonsta Studio featured a main character wearing a hijab, and one of LCP’s main characters in their series and 3D film is the grandmother of Upin and Ipin, who wears a hijab. According to Shafie and Othman (2006), the potential of the halal sector is substantial because by the year 2025 it is expected that, thirty per cent of the world population will be Muslim. This is another potential market that Malaysian animation products can consider to penetrate in the future.

According to Jarman and Chopra (2007), developing nations like Malaysia tend to face two major problems in developing their ICT and innovation relating sectors. Firstly, developing nations are currently more successful in attracting the lower order activities of multinationals that are being outsourced and off-shored to reduce costs; while a physical infrastructure can be built over a period of few years, human capital takes much longer to develop, perhaps up to twenty years for one child; this is due to the multifaceted nature of the knowledge economy, which presents in a complex scope of activities. Secondly, the Malaysian government has been criticised for not being open enough to new ideas, particularly when it comes to sensitive issues such as culture, politics, and religion. Hence, those who have innovative ideas choose to work outside Malaysia where they feel they are freer to implement their ideas. As a result, the Malaysian human talent pool has migrated to countries like Australia, Hong Kong, Singapore (Low 2001; Sidhu 2009), the UK and US. These countries not only encourage creatives to express themselves freely, but they also receive a higher salary than if they work in Malaysia. Renowned names in creative sectors, including Chef Wan (chef), Kamahl (composer/singer), Jimmy Choo (fashion), Maha Sinnathamby (engineer/developer), Michelle Yeoh (actress), Shahril Ibrahim (software developer), and Zang Toi (fashion), are Malaysians who have built successful careers abroad.

Recently successful creative Malaysians abroad have started to show interest in working closely with the Malaysian government and local companies. They are willing to train new young talent from Malaysia to penetrate the global market. Also, the Malaysian government has managed to attract many larger companies to open up local branches. These positive changes can assist more creative talents from Malaysia in finding a global audience, introduce the country as a good place to invest for foreign companies, and bring Malaysia a more favourable position in the creative economy in the region and globally. 84

5.7 Conclusion

This chapter examined LCP as a leading animation television production company in Malaysia and Southeast Asia. Their television series and 3D film managed to create a significant impact in the market by portraying Malaysian culture (refer Appendix 9). Animation is one of the important sectors given top priority under Malaysian government MSC project. Beforehand, Cyberjaya—the capital city for the Malaysian MSC—and Hong Kong’s Cyberport were discussed. Both places aim to become their region’s ICT capital. The differences and similarities between the two places were discussed extensively. RQ1 was addressed through seven themes identified by this study based on the interview with LCP. Following that, the second and third research questions were answered through the discussion on how Malaysia developed their creative economy focusing on animation sector, and using traditional their cultural assets. There is a close relationship between the animation and cultural sectors in Malaysia. To date, the majority of Malaysian animation products are marrying both elements. This is their unique feature follows the government’s direction to feature Malaysia’s culture in animation products. However, the Malaysian animation sector is still new, and lacks advanced facilities and funding. They also face fierce competition from developed countries and large studios or productions with large budgets and established infrastructure. Thus, the future of this sector is volatile and requires continuous support from the government. The last research question (RQ4) raised key issues (for example, budget, policy making, and global market challenges) faced by the country currently in positioning Malaysian creative economy in the region.

6. CASE STUDY TWO: MALACCA MUSEUM CORPORATION

With its government buildings, churches, squares and fortifications, Malacca demonstrates the early stages of this history originating in the 15th-century Malay sultanate and the Portuguese and Dutch periods beginning in the early 16th century. The town constitutes a unique architectural and cultural townscape without parallel anywhere in East and Southeast Asia. (UNESCO 2008)

6.1 Introduction

The second case study was undertaken with Malacca Museum Corporation (PERZIM) which is currently managing Malacca Maritime Museum (MMM) and eighteen other state-owned museums in Malacca. Staff members from this state government cultural tourism corporation were interviewed face-to-face. As an organisation involved directly with cultural tourism products and services, the Malacca Museum Corporation’s experience can provide insights regarding the transformation of cultural institutions, particularly museums, when adopting modern technology and ideas in order to become competitive in the global market.

The chapter opens with outlines about the second case study interview for this research, followed by a comparison of PERZIM and the Museum of Vancouver (MoV). Similar to Case Study One, seven themes are identified to answer the first research question. The findings of the interviews, secondary data, and quotes taken from document analysis will be used to answer research questions two, three and four. Finally, a chapter conclusion will be delivered.

6.2 Comparison between Malacca Museum Corporation, Malaysia and Museum of Vancouver, Canada

In this section a comparison between PERZIM, Malaysia and MoV, Canada (formerly known as Vancouver Museum) will be presented. Research on MoV was done based on document analysis, while research on PERZIM was done through face-to-face interviews and document analysis. The similarities and differences between the two museums are presented in the next section.

6.2.1 The development of Malacca Museum Corporation (PERZIM)

PERZIM is a Malacca state government corporation that manages all the state’s museums and heritage sites (refer Appendix 10). Realising their lack of other natural resources, the state government paid special attention to developing the tourism industry as their major income, and cultural tourism is one of their focuses. PERZIM has many plans in line with the ICOM mission to become a non-traditional museum by implementing new ideas and upgrading the museum via such means as relaunching their light and sound program, opening at least another three museums outside Malacca city in 2010, and curating a cultural parade show. Although the state government is searching for other resources for their economic growth—for example, from the agricultural sector—tourism remains their main focus. Due to its small size and limited natural resources, the state’s dependency on the tourism industry is unavoidable (Cartier 2002).

The tourism industry has been the most important income for Malacca for the past twenty years, and is fully supported by the state government. Not only have their heritage sites been fully utilised, but their minority ethnics such as the Baba Nyonya, Chetti and Portuguese are used as tourism attractions for the state. As a result, all ethnic groups are given fair attention in the state government tourism planning. However, the issues of unfair treatment to certain ethnic groups, particularly minorities, have continuously been raised in Malaysia. A multiethnic country like Malaysia will always have this issue. Analysis made by the Malacca state government on the evolution of the tourism industry that took place in Malaysia and Asian region in the 1980s, revealed that heritage tourism alone was not sufficient to attract tourists (Cartier 2002). Thus, the state is not only promoting and developing their heritage buildings and places, but also education, entertainment, and minority ethnics. Importantly though, other states in Malaysia such as Kedah, Kelantan and Perak, have more interesting cultural resources than Malacca, which through poor management, and a less pro-active state government, has led to cultural resources not being fully utilised. This has created resource wastage, and a loss of potential income.

Another contentious issue in Malaysia lies among the minority ethnic groups, who claimed they were not given enough attention in the development, although local authorities denied these allegations. For example, in a state like Penang that is populated largely by Chinese, any Malays living in the island state feel that Malay history has not been considered and thereby largely ignored (Mohamed 2006). Other states with a majority population of Malays, Chinese and Indian minorities feel similarly ignored. Issues including whose culture to

87 promote, authentic versus staged culture (Mohamed 2006), and commercialisation of culture (O’Connor 2007) have caused heated debate among the academic sector, cultural activists and local people. Further, another group of cultural activists feel that most of the heritage buildings in Malaysia are colonial buildings. These activists disagree with the idea of preserving and promoting the colonial past and culture. Thus, the question of whose culture should be promoted as the main feature remains a contentious issue in promoting cultural tourism in Malaysia. Postcolonial tourism has been utilised by many countries in the world because it attracts a greater number of tourists, particularly from the west. Malacca‘s major tourist attractions are mainly postcolonial buildings.

An anti-colonisation group criticised the building of the Flor De Lama replica, arguing that it represents a symbol of high respect for Portuguese colonial power and history in Malaysia. This group also criticized PERZIM when they introduced a new feature that saw museum staff wearing the traditional costumes of colonial countries (Portuguese, Dutch and English) that used to rule Malaysia, and allowed the visitors to take photos with them. Of course, new ideas or changes will always invite debate, and there will always be at least two camps in any new development. This process occurs in any development because there will always be positive and negative sides. Rather than support the commercialisation of cultural resources, this study’s stance is that they should be promoted with caution so that any misconceptions can be avoided or minimised.

Heritage buildings and places owned by private companies and individuals have to find independent means to finance their properties. The government can only provide limited assistance to them, and in most cases only moral guidance and support. In many cases, building owners cannot always generate enough income to preserve them, especially considering Malaysian weather. Thus, some owners may end up selling if they receive an attractive offer. Subsequently, the purchase of these properties often leads to the demolition of heritage buildings to make way for other development projects. Through tourism activities, these owners may have a chance to generate their own financial resources rather than depending too much on the government. Through the tourism industry, specifically cultural tourism, these private owners can generate their own financial resources. The balance between development and local sensitivity is very important. The stakeholders should take into consideration the best way to tackle these problems and issues.

The efficiency and determination from the Malacca state government in developing and promoting cultural tourism contributes in a major positive way to their economy. Hopefully, the active role played by PERZIM in developing and promoting their products and services, will 88 encourage other museums in Malaysia to become more proactive. If they fail to keep up with the changes and remain stuck in their traditional roles, their existence will be less attractive and it might be harder to sustain their place in the market.

6.2.2 The development of the Museum of Vancouver

MoV (known as Vancouver Museum until 2008) has a long history that dates back to the Art, Historical and Scientific Association’s first exhibition in November 1894. By 1905, more than 10,000 people had signed their guest register, and the museum received continuous public donations for its collection. In 1922, the museum accepted the first remains of a mummified child from a tomb in Luxor, Egypt from Dr. George Kidd. After that, visitor numbers significantly increased, particularly between 1939 until 1945. This influx of visitors meant that the most valuable collections of the museum were removed to an underground vault for safekeeping. In 2008, the museum announced a major shift in strategy that would see the institution become a physical reality and as an idea. They would use cross-disciplinary approaches, and engage the community in dialogue about contemporary issues. The following year, the museum changed its name to MoV to reflect their new vision. This latest transition was underpinned by a new vision and strategic plan for 2008-2011, which would hold a mirror to the city and lead provocative conversations about its past, present and future. In their strategic plan they identified four strategic priorities:

1. Secure their financial and operational stability; 2. Develop exhibitions and programs that interpret Vancouver through a broad range of disciplines, put history in a contemporary context, and provoke debate and discussion about the city; 3. Enhance their visibility and reputation; and 4. Develop a more inclusive and collaborative approach to community involvement in the Museum (Museum of Vancouver 2010).

Today, the MoV is the largest museum in Canada (Butler 2002, 8); its website shows the museum has incorporated interactive exhibits and programs for the last twenty years. Also, the function of the MoV is as more than just a cultural institution. They also offer services to the public such as food and beverages, meeting, incentives, conferences and exhibitions (MICE), rental space and gift shop facilities. These products and services show that MoV is more financially independent, and fully autonomous in making their decisions. Further, MoV’s board of directors have differing educational background and fields of expertise. Also, the museum programs and organised activities are diverse in order to cater for various groups of people and interests. This diversity shows that MoV is positioning themselves not just as a

89 museum, but as a diverse institution with many roles and functions. This is the latest trend that is taking place among museum institutions, particularly in developed and developing countries.

Museums need a contemporary image in order for them to remain competitive. From an architectural perspective, Erickson (1994) states that among a number of functions, museums reside with the bureaucratic elite of a cultural institution in the curatorial machinery of modern architecture. MoV is a real-world example of this statement. In today’s rapid evolution of creativity and technology, the roles and functions of museums have become more challenging and not limited to those functions identified by Erickson. However, this study will not discuss further the functions and roles of the modern museums. For further information please refer to Butler (2007).

Although MoV’s user-friendly website is with rich information about the museum, there is no statistical information regarding patronage. Nevertheless, being the largest museum in Canada and one of the four most important, this study assumed that attendance is significant. This is also based on its location in Vancouver, one of the most populated cities in the country.

6.2.3 Comparing Malacca Museum Corporation and Museum of Vancouver

PERZIM management is currently shifting their role from a traditional mode to become more educational, and focussed on R&D and entertainment for all their visitors. PERZIM has been among the first state government organisations to apply these changes in Malaysia. Few museums in Malaysia are taking these steps, and perhaps that is one of the reasons the number of visitors to PERZIM museums in Malacca increases every year compared to the other museums in the country. Museums in Malaysia have been lagging in terms of new changes and applications or functions. While PERZIM museums have over the past ten years adapted their new approach, the museums in the United States have, for instance, been doing the same thing since 1970s. In their mission statement, the American Association of Museums (AAM) aims to enhance the value of museums to their communities through leadership, advocacy and service. Also, they are dedicated to ensuring that museums remain a major part of the American landscape, connecting people with the greatest achievement of the human experience, past, present and future. This mention of human experience in their mission, means that experience plays an important role in the establishment of a museum. Also, under their code of ethics, the AAM states that their common interest is to make a “unique contribution to the public by collecting, preserving, and interpreting the things of this world” (AAM 2010).

MoV (2010) offers products and services that focus on educational programs for children, youth, and families. This is similar to what MMM is doing, however MoV is more advanced in this area; they have connected their school programs to the provincial curriculum in workshops, and activities for students aged from five to fifteen. MoV also has their own blog to give updates about the latest events at the museum.

Since the history of MoV is longer than MMM, their collections, products and services are more diverse than those of MMM. Also, they have a different management style because MoV is not administered by a government corporation or agency. MoV is a money-oriented institution when compared to MMM, which charged minimal entrance fees (RM 2 per entry to visit one museum complex). MoV also:

 Charges entrance fees for their visitors from $ 8.00 dollars;  Is privately owned;  Has many activities and programs for their visitors; most of which charge fees; and  Have other side-products and services to generate income to their museum such as rental space for MICE activities, F&B, and a gift shop.

Cleary’s (2006) PhD thesis identifies four different types of culturally and politically valid contemporary museums: modern museums; modernist museums; post-museums; and new museums. Earlier, Hooper-Greenhill (2000, 150) identified three categories of museums (modern, modernist and post-museums), and it is significantly possible for Cleary’s new category to expand in the future. The modern museum according to Cleary (2006) maintains the traditions of display, investigative research and public instruction through accepted collection acquisition and exhibition practises. MMM and most PERZIM museums are most likely to fall under this category. Modernist museums position themselves by employing architecture as an attention-seeking strategy, but essentially not changing their development- by-accumulation collection model. Since the early-1990s, museum architecture has received wide attention in the literature, due to the close link between architectural designs and culture. The third category of “post-museums” considers postmodern criticism and becomes more pluralistic and complex in their construction of history. Only a small number of PERZIM museums can be regarded as post-museums, since they are categorised and operated as a government corporation, and abide by all the rules and regulations set by the government and UNESCO. With their full autonomy and financial sources, MoV is more likely to fall under this category. The fourth category of “new museums” is commemorative and non-inclusive, and

91 are created for and maintained by a small elite, essentially to reposition its own history as central.

Based on Cleary’s classifications, this study categorises PERZIM’s museum, particularly MMM, as a “modern museum”, and MoV as a “post-museum”, with both also having characteristics of as “modernist museums”. For example, MMM has the Portuguese Flor de Lama replica (Fig. 6.3), while MoV (Fig. 6.2.3) has modern architecture and a crab sculpture fountain. Architecture has played a major role in marketing cultural tourism for the past decade. More buildings are adapting cultural elements and symbolisation in their design, including the buildings of MMM and MoV. As institutions for cultural preservations and restoration, it is substantially important for the museum buildings to be represented by the collections in their public image. In the case of architecture, this study believes that MMM has managed to portray its image as a maritime museum, while MoV portrays itself as a modern and diverse museum.

Figure 6.2.3: Museum of Vancouver (Museum of Vancouver 2010)

In terms of modern applications, MMM lags behind MoV. However, MMM does not have to be like MoV in all aspects because their approach and formation are different. Both institutions have their strengths (also weaknesses), and cater for a different group of visitors or markets. The strength of MMM lies in its focus on colonial history and a multi-cultural environment, while the strength of MoV lies in its long-established history, and a variety of functions and roles (refer Appendix 11). Based on their strengths, it is wise for both institutions to

92 concentrate on further developing these strengths rather than to try to develop something unfamiliar. Not only can this be risky, but it involves the investment of money and time when success is still unsure. Both museums need to keep up with the changing expectations and desires of visitors, and at the same time maintain their primary role to educate the public and preserve their culture. Perhaps in the future, their roles and functions might be different from now, but presently they should maintain their uniqueness, and at the same time be aware of the changes taking place around them.

This study has identified some similarities and differences between the MMM and the MoV. Malaysia was focussed on their multi-cultural and multi-faith attractions even before they gained their independence from the British in 1957. The multi-cultural and multi-faith images are the primary topic among Malaysia’s top politicians when they discuss Malaysia’s position in the global market. The Malaysian government works hard to maintain this globally unique resource. Since there is an ongoing cultural revolution all over the world, Malaysia has to find new ideas to sustain their place in the global market. To date, more countries—such as Australia, Canada, US and UK—are claiming to be multi-cultural. Based on their collections, artefacts, activities and programs, MoV and MMM have long emphasised a local cultural influence. Since both countries are promoting multi-culturalism as part of their image to the world, this element has been employed by both museums. Therefore, the multi-cultural image may not be unique to Malaysia in the future.

A combination of cultural tourism and modern technology could generate new attractions to enable Malaysia to enter the global market. In consideration of this, the Malaysian government is working towards making the public aware of the significant potential of creative economy for the country. All ministries in Malaysia are talking about adapting these two aspects in their administration as well as their products and services. At the same time, private companies in the country also are taking an active part in these sectors. However, they need to become more independent, particularly with regards to finance, as the government cannot support them forever.

6.3 RQ1: What are the main operational issues for Malaysian creative economy enterprises?

Figure 6.3a: Port De Lama Replica Ship in Malacca (PERZIM 2010)

This study interviewed the Malacca Maritime Museum curator Mohd Shukry Abdullah at the Royal Navy Museum in January 2010. Other interviews were conducted with museum staff members on the same day around the Malacca Museum Complexes in Malacca city. The first interviews were with the “front lines” of the Malacca Maritime Museum at the Port De Lama replica ship, followed by the General Manager of PERZIM at his office, and the last interview was with the curator of all eight museums at Historical Museum office.

Seven themes best categorise the answers from the PERZIM respondents. Tables and exhibits are used whenever required.

Respondent Profiles

From the total of four respondents interviewed by this study, there is only one female staff member. Three respondents worked with PERZIM for more than ten years except for one, who worked there for less than a year. Two of the respondents were in their mid-thirties, one of them in his late-forties, and one in his mid-twenties. All respondents obtained their education in Malaysia, with one staff possessing a vocational certificate qualification, three possessing a Bachelor’s degree, and one currently completing his Masters. 94

Table 6.3: Respondents Profile for Malacca Maritime Museum Respondent Post Age Sex Years of Education background working Mohd Shukry Curator for Malacca Maritime 24 M 10-months Bachelor Degree (UM) Museum Complex Zulkifli Museum Assistant 37 M 19-years Certificate (SMVM) Hj Khamis General Manager for 49 M 24-years Masters Degree (UKM) PERZIM Syahidah Curator for History and 34 F 10-years Bachelor Degree (UM) Ethnography Museum, Malacca Education Museum, Democracy Ruling Museum, Malacca Yang Dipertua Negeri (Governors) Museum, Malaysia Youth Museum, Malacca Art Gallery, and Folk Art Gallery

PERZIM has a strong blend of staff from all ranges of age and qualification. However, their top management staff qualification does not vary; all of their curators have tertiary qualifications in history. I argue that the corporation needs staff from other areas—for example Arts and Design, Culture, and Tourism—to provide more interesting and different ideas for activities and programs. By employing a staff with diverse fields of expertise the museum can offer its visitors a more engaging and satisfying experience.

During the interviews, I found one curator has to look after eight museums under the corporation, and that the senior curator post for the corporation has been vacant for almost a year. This potentially creates issues relating to work overloads. PERZIM’s status as a government corporation means that it takes longer to fill a senior position vacancy, because promotion depends on seniority and other qualifications. Further, due to the worldwide recession of the 1980s, the Malaysian government tried to reduce the size of its public sector by curbing the creation of new posts, abolishing vacant posts in non-critical areas, and reviewing positions in statutory bodies (Siddiquee 2006). Since PERZIM is a state government agency, only local Malacca people can apply for the job. Job vacancies sometimes are not filled long-term, possibly due to shortages of interest in filling the post, because salaries are not as competitive as those offered by private companies.

Working Environment

The most senior curator at PERZIM is Hj Khamis, whose title is General Manager (GM). Under Hj Khamis, there are eight curators and this study interviewed two of them. The GM manages and makes decisions for PERZIM as a whole, while the other curators make decisions for the museums under them after getting approval from Hj Khamis. The curatorial roles in PERZIM’s

95 museums are different from those in developed countries like Australia and the U.S. The curators are responsible for managing their own museums and staff. For instance, Shukry looks after the Maritime Museum Complex, which has three museums, while Syahidah looks after eight museums, and Hj Khamis as the GM administers PERZIM. The GM also represents PERZIM during state government functions or meetings.

This organisation is a Malacca state government corporation and operates using a top-down management style similar to that of most other government corporations in Malaysia. The curators follow the state and federal government policies, rules and regulations communicated via memos and other instruction. Further, the museums around Malacca city are required to follow the rules and regulations of UNESCO to retain their status as a “UNESCO World Heritage City”. To be appointed as a curator at PERZIM, a person must hold either a degree in history or museology. They must also meet various other criteria set by the state government, for example, they must be born in Malacca. The GM makes major decisions for the corporation after getting approval from the state government, while the other curators made decisions for the museums and staff assigned to them. Thus, each staff member must report to their superior, according to the traditional government structure of an organisation. The main role of curators under PERZIM is to manage the operation of the museum assigned to them. Their job is largely administrative, as opposed to centred on thinking of new ways to make their museums look more appealing for the visitors. Any decisions made by curators can take a long time due to tier decision-making and a top-down management style. This may stop the curator from being proactive and productive in their job. With more than two stakeholders to report to, and following the rules and regulations, any decisions need careful consideration in order to avoid any conflict of interest.

When I asked how the staff members are involved in contributing ideas and taking part on the future planning with their organisation’s products and services, they answered brain-storming, meeting, and peer group discussion. These processes involve all PERZIM officers from all departments, and are headed by the GM or a curator. The GM normally chairs the meeting with the most senior management officer of PERZIM, while the curators lead the meeting for the museums under their responsibilities with their staff. In this way, ideas for the corporation are generated; for example, the establishment of a new museum and other activities. For their activities meeting, PERZIM also consult with the local community members for their opinions and advice. Malacca local ethnic community leaders such as Malay, Baba Nyonya (Malay mixed with Chinese group), Chetti (Indian), and Portuguese were called to a meeting to help the organisation brainstorm the best activities and outcomes for visitors. These community leaders are also invited to attend PERZIM’s functions and events. 96

The rank and file staff members have a special association called MPK, which invites comments and opinion about their work and other issues relating to PERZIM. Later the representative for this association brings forward their comments to each related department in another meeting with PERZIM management. Besides that, each curator organises monthly meetings for all staff under their supervision. During the meeting, staff members are encouraged to give their comments, opinions and ideas, and report any problems so the curator can bring the matter to a higher level authority. Some of the staff members have been working with the museums for more than twenty years, and the management always seeks their advice and opinions on certain matters.

Like any other tourism (including cultural tourism) producers, the PERZIM lower-ranking staff members are the “front-liners”, and meet the visitors the most. Their top-ranking staff members have less involvement with visitors. Thus, it is crucial for PERZIM or other tourism producers to train their front-liners adequately; for example, by sending them to attend seminars and conferences to upgrade their knowledge, and provide their staff with the latest news about the museum sector in the country and region.

Experience is important, but depth of knowledge is also an important aspect of the front-liner job, particularly in an era where visitors tend to be more knowledgeable and educated than ever. Front-liners are required to meet local and international visitors every day, and therefore these staff must be alert and well prepared. The front-liner needs to represent the corporation, the state and the country. By attending suitable seminars and conferences, they can improve their knowledge-base and thus confidence with their job. Front-liners often spend more time with visitors than other museum staff, as such they play a significant role in presenting the corporation and state government’s mission to the public. During the interviews, the management of PERZIM were fully aware of the concept of the creative economy and creative industries, unlike the lower-ranking staff. PERZIM management should deliver important information to all of their staff particularly the front line, as they need first hand information about the museum’s plan in their everyday work. Unfortunately, not many tourism producers (including PERZIM) in Malaysia recognize the front-liner role as a crucial role in contributing towards the development of the entire industry.

When generating new ideas for their museums, the staff must to go through several levels of decision-makers. The lower rank of the staff member, the further he or she is from the final decision-making process. For example, during the interview the lower-ranking staff did not know about creative economy development, while the top management were aware of this, which shows that there is a gap between the top management and low-ranking staff. This type 97 of information is crucial for the management to deliver to their staff so that they understand about the future plans of the corporation, and subsequently can educate the public about the new changes too. PERZIM encourage their staff to express their ideas to the higher authority of the museum, but whether they approve these ideas or indicate when they are going to approve them is another question.

Location

Malaysia is a historical state, and the state government realises the importance of preserving and restoring its historical locations, particularly around the city areas. Malacca managed to attract approximately two-million tourists in 2009, and in 2010 their target is to attract eight- million tourists, according to PERZIM’s GM. The state has been one of the most popular destinations among local and international tourists in Malaysia for more than a decade. However, according to PERZIM staff, local tourists make up a smaller percentage of visitors compared to international tourists.

Shukry reported that PERZIM museums are experiencing decreasing numbers of visitors because they are facing competition from other tourism products in Malacca state. Examples include the Melaka Taming Sari tower, which celebrated 500,000 visitors in less than a year in 2009, and the Malacca River Cruise operated by a private company, situated next to the MMM complex. In addition to these problems, some of the PERZIM policies are discouraging visitors to their museums. When they started to adopt ICT applications and new ideas like the Sleepover @ Museum program to their museums, the number of visitors increased significantly. PERZIM have also recognized a different pattern in the market recently, where children tend to bring their parents to the museums as opposed to a long-standing trend of the opposite. Hence, PERZIM’s current and future activities and programs are more family- oriented in order to attract everybody to the museums.

When asked about the responses to their latest program, Sleepover @ Museum, Shukry stated that as at January 2010 they had hosted ten groups, of which seven were international groups from Singapore and Japan. This study found more information about this program through PERZIM Facebook fan page, and in less than a year since they launched the program (until April 2010), they had three groups of local visitors, of whom the majority were students from college and universities. PERZIM expects the number of local groups will increase in the future, when the program becomes more popular and the public are more aware of it.

Figure 6.3b: Sleepover@ Museum program at Malacca Maritime Museum (PERZIM Facebook 2010)

At present, the experience of visiting museums is about more than merely inspecting exhibits. However, they can also deepen knowledge and understanding (Colbert 2003). In the last decade, traditional museums globally started to shift their roles to become more than just exhibition centres. To remain competitive in the market, they are offering other services such as research and development, meeting rooms, conference facilities, bookshops and cafes to their visitors. With the rapid development of modern museums, such as science and technology museums, traditional museums face tough competition to attract visitors.

The same scenario is also occurring in the Malaysian museum sector. Although the numbers of visitors for PERZIM museums are high compared to other museums in the country, they are facing tough competition from modern museums and other tourism attractions in the state and country. Cultural tourism producers, particularly in the museum sector, need to find new ways to attract visitors to their museums. Introducing new activities and programs could be one way to attract more visitors, especially from the younger generation. Programs such as PERZIM’s Sleepover @ Museum received a positive response from younger visitors, who tend to be attracted to new technology applications and different ideas. Therefore, the museum sector needs to incorporate these features in their museums. The older generation are perhaps more attracted to the traditional and cultural features of a museum, thus the museums need to preserve their cultural identity too. Museums have to cater for both markets and have both 99 elements in their attractions in order to remain sustainable and competitive in the experience industry.

Sector or Industry

In the case of PERZIM, this shows a substantial and close relationship between creative (experience) industries and cultural tourism. Although modern applications are used at a minimal level by PERZIM currently, more changes relating to modern components are expected to be adopted by the corporation within three to five years. For instance, PERZIM plans to collaborate with a private company to re-launch their Lights and Sounds interactive program and Malaysia Cultural Parade before the end of 2010. As well as these new activities and programs, other expansion plans involve a mixture of cultural tourism and modern technology to attract more visitors to their museums. This is evidence of PERZIM’s serious commitment to shift their function as from the traditional to the modern category of museum. All of these new changes are evidence of the close connection between the creative (experience) industries and cultural tourism adopted by PERZIM. However, in light of Malacca’s “UNESCO World Heritage City” status holder since 2008, more deliberation must occur before they can introduce any new changes to their museums, because they have to maintain strong elements of Malaysian culture in their products and services to remain in accordance with the UNESCO guidelines (Syahidah 2010). Nevertheless, PERZIM has tried to include both aspects of culture and modern applications in their museums. They acknowledge the importance of both elements for their museums, and are working towards maintaining a balance between cultural and modern elements. This shows the uniqueness of PERZIM museums, which attract visitors from all over the world.

PERZIM’s statistics show that their museums have among the highest attendance numbers in Malaysia; at end of December 2009, they received a total of almost 680,000 visitors to their museums all over Malacca (PERZIM official website 2010). The Sleepover @ Museum program is an example of a cultural tourism product being given a fresh touch to become unique and more appealing to the market. These figures have prompted PERZIM to realise that there have been significant changes in the behaviour patterns of their visitors. One major shift is that children are bringing their parents to visit the museums (Shukry 2010). Thus, they are making appropriate changes in response to market needs and wants, which have more family-oriented appeal and other fresh elements. The findings showed that the museums managed by PERZIM are marrying both creative (experience) industries and cultural tourism in their products and services.

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Apart from that, PERZIM has actively organised events, programmes and activities with different components for the past three years to offer the best experience to their visitors, and also to create awareness of their products and services. These programs differentiate PERZIM products and services from other museums. The management of the organisation is fully aware of the new developments taking place in museum sector in developed countries, which involve new technology, and the museums under their management are slowly moving in that direction. At the same time, they acknowledge their major role as the cultural institution that preserves the history for the country.

Expectation and Future Planning for the Organisation

PERZIM plans to open up at least another five museums around the state in the next five years. According to Hj Khamis (GM for PERZIM) (2010), there are plans to open up a museum at Pulau Besar, a popular local tourist island in Malacca. Also, the first submarine museum will be built around the Kelebang area, and will be the second of its kind in the ASEAN countries (the first being in Surabaya, Indonesia). There also are plans for more ship museums to be built around the Kelebang area. This strategy to build more museums outside Malacca city hopes to divert the attention of tourists to other parts of Malacca.

The organisation also realises the important role of technology, and creativity in today’s cultural product and services. Thus, PERZIM is trying to shift their products and services to be closer to the tourists and visitors because this is the era where the museum has to implement those elements in order to remain competitive. Museum visitors want to be able to interact with exhibits. The GM (ibid.) is aware of this latest trend taking place all over the world and states:

Yes, at the moment we are trying lah, to divert and change to something that make us closer to tourists and visitors with museum artefacts, because we can see that this decade is the era for that, the decade where if we go to the museum in Singapore, the museums in Singapore already shifted to those direction. So it is the high time for us... not only museums in Malacca, but also museums all over the country. Ok, no more static exhibition lah, more interactive, more into engaging with our visitors and the artefacts and displays.

At the same time, PERZIM wants to actively involve the local people in the tourism industry, particularly around Malacca city, to improve their income. With help and support from the state government, there are many plans involving the locals that are going to be implemented to give them exposure on the positive potential of tourism products and services. This is the

101 future creative economy development plan that the organisation and state government have in order to generate better income for the locals.

PERZIM has planned to develop their products and services in line with creative economy development in Malaysia. Not only they will keep preserving the cultural elements, but they will also keep on introducing new products and services to provide good experience for their visitors. At the same time, PERZIM is encouraging more local people to get involved in small businesses relating to cultural tourism sector, using workshops and seminars. Culture and tourism remain the basis for new ideas to attract the younger generation to visit PERZIM’s museums. This expansion plan involves culture, tourism and various engaging activities to offer a better and different experience to their visitors. PERZIM is one of a few museum corporations in the country and region to have such a progressive plan.

However, even there changes are perhaps thirty years behind those of museums in developed countries. I argue that new technology is needed for the museum sector to attract the younger generation, but as a country that has significant cultural features, Malaysia also should focus on this strength. Not only does new technology require a lot of investment and financial assistance, but to compete with the advanced countries, modern museums might be too difficult for PERZIM and Malaysia regardless. Hence, let the advanced countries play to their technology advantage while Malaysia continues to promote cultural strength with some modern applications whenever necessary. Developing countries like Malaysia lack the modern applications and technology that are strengths for developed countries. Thus, museums in Malaysia should concentrate on their own strengths like unique culture, rather than on their limitations.

Organisation’s Mission

According to the curator of MMM, Mohd Shukry, MMM follows PERZIM’s mission and objectives, as the museum is part of the corporation’s entity. The main objective is not to make money, but more to educate their visitors, particularly the younger generation. They are totally committed to the International Committee of Museums (ICOM) statement, which defines a museum as a research institution and a place for exhibitions. Thus, the programs and activities organised under PERZIM’s museums are more to educate, encourage R&D, and be family-oriented. However, they still charge minimal fees to their visitors, and the museums under PERZIM have been a main contributor to state income.

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With decreasing visitor numbers to traditional museums for the last decade, PERZIM is trying to reinvigorate the museum in Malaysia. They constantly organise programs and activities according to special themes, which are normally chosen according to the federal and state government mission. Among the activities and exhibitions organised by them in 2009 were the Multiethnic Food Festival, Ancient Currency Exhibition, and Malay and Islamic World Convention and Exhibition. These activities and exhibitions were organised to educate and expose visitors to the artefacts, and give visitors firsthand experience and knowledge of the collections.

Apart from that, PERZIM’s latest role has been expanding to include preservation of the state’s culture and heritage. The General Manager (GM) of PERZIM explains, the job’s scope and their objectives and mission of their organisation:

Now, our scope of work today is a little bit different, lah, compared to other museums in other states because PERZIM is the secretariat, lah, for heritage and preservation enactment. Hence, we have to look at all aspects involved, we had repaired around 51 traditional houses located in the state of Malacca so that these people can maintain their traditional houses, as well as encouraging them to get involve in tourism activities, lah. And at least while we help them to maintain their houses beautifully, we also help to preserve the architecture, preserve the culture, they also are encourage to receive tourists domestically and internationally. So we gave them basic courses on how to entertain these tourists, gave them necessary information, and other related stuff...

The staff noted that the longer they worked for PERZIM the more they could relate to their organisation’s mission and objectives. Staff who worked for more than ten years with PERZIM explained that they are more connected to the museum in their everyday activities.

The corporation is shifting their focus from being a traditional museum to incorporating other roles according to the ICOM definition of museum (refer to ICOM website 2010). These changes have been applied by many museums in developed and developing countries. In Malaysia, PERZIM became among the first few museums to introduce significant new changes, and receive a positive response from the public and tourists. Nevertheless, the number of visitors is still low compared to other tourist attractions in the state and Malaysia. With other tourism attractions aggressively marketing for their products, museums in Malaysia remain unpopular among the public. The decreasing number of visitors to traditional museums is not only happening in Malaysia but all over the world, thus more traditional museums are shifting to become modern museums particularly in developed countries. New changes undertaken by PERZIM are seen to have potential in attracting the Malaysian public and tourists back to the museums. However, to remain sustainable and competitive in the museum

103 sector in the country and region, they need to adopt new changes such as interactive areas for visitors in order to foster a different experience.

Creative/Experience Industries/Cultural Tourism Development in Malaysia

PERZIM management realises the importance of adding new applications such as interactive features and hands-on experience to their products and services in order to make them competitive in the global market. The curators and GM of PERZIM are fully aware of the rapid changes taking place around the world, with interactive elements being adopted by many museums. PERZIM is also following the trend by adding these elements in their products and services to give the best possible experience to their visitors. The museums under PERZIM are among only a few museums in Malaysia to implement these features. According to the MMM curator, vandalism problems meant that there is no immediate plan to add more interactive elements to MMM. Even at the federal level, only two museums—the National Museum in Kuala Lumpur, and the Culture Museum in Negeri Sembilan—are doing incorporating these elements. Besides, PERZIM’s main focus is on displaying the actual artefacts, rather than depending on the technology and ICT aspects.

The GM’s responses to the question about implementing engaging and interactive components in their museums, and about the development of the creative economy sector in Malaysia, was more positive and clearer than answers given by others, particularly in terms of the creative economy sector:

We just had a discussion... discussion with one company from KL, lah... about... if this project to take off... it will take place by middle of next year. We want to turn the whole complex to become... more towards like Disneyland, lah. Disneyland with our main focus on history... Malacca history and other related history... because we want to introduce this as a new component for tourism... and other related industries, right... to get involve many local people ok, in... in this sector, lah...

PERZIM has other new approaches to attract more visitors to their museums. These new products and services make their museums different and unique from the other museums in the country. Their 2009 program, Sleepover @ Museum (at MMM and Malacca Sultanate Palace museum) was inspired by a similar program in Europe. A Light and Sounds show is planned to be relaunched in April 2010. PERZIM has designed these new attractions and programs by PERZIM to offer a different experience from those offered by other museums in Malaysia and in the rest of the region. Also, these new attractions and programs are designed to encourage R&D practices among Malaysians, and to educate high attendance rates.

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Visitors who took part in the European version of the Sleepover @ Museum program did not sleep much in the museum. For the most part, visitors took the opportunity to do in-depth research about the displayed artefacts and collection inside the museum from various aspects. However, this study’s interview revealed that Malaysian visitors were looking for different experiences compared to European visitors; normally, most of them slept for the whole night during the program. Some joined the program hoping for a mystical experience such as meeting with ghost. Further, the museums occasionally would add more artefacts and collections, and rearrange them with a different style and position so that the visitors would not get bored with the same collections if they visited the museums later.

With their new additional products and services in the museums, PERZIM is hoping to offer a different experience and attract more visitors to their museums. Their museums are among the only museums in the Malaysia region to offer different products and services to visitors. However, offering different or non-traditional products and services can be risky, and different markets may look for different experiences, as the Sleepover @ Museum program showed. Document analysis reveals that the program received different comments from two journalists who joined. One discussed superstitious belief—about the possibility of encountering ghosts in the museum (Kosmo, 2009)—while the other expressed the excitement at the experience of joining a new program (Johan, 2009). This demonstrates that in the experience industry each visitor has different experiences, and often seeks different experiences with new products and services. Unfortunately, research about the behaviour and experiences of museums visitors is lacking, particularly in Malaysia.

According to Goulding (2000) there is little research that examines the actions and voices of museum visitors, but what museum curators and related official bodies are good at is collecting numbers. This may lead to misunderstandings about the needs and wants of museum visitors compared with what the museums are offering them. In addition, not all changes are well accepted by the public. Some changes implemented by PERZIM prompted argument among and criticism by the locals. For example, the building of the replica of Flor de Lama had been promoted as supporting and promoting colonisation. This dilemma is normal in postcolonial countries like Malaysia. The sixteen museums currently operating under PERZIM have different collections and themes that attract a different market of visitors. Further, since the experience industry involves intangible products and services, it is crucial for the producers to make their products and services more tangible to their visitors. Thus more museums are establishing shops to sell souvenir items that could make their products and services more tangible experience to their visitors. However, at present there are no

105 museum shops at any of PERZIM museums, although there are museum souvenirs produced and sold by local people around the state and country.

6.4 RQ2: What is the development path for the Malaysian creative economy enterprises?

The development of the experience industry in Malaysia is not new, as it is similar to the concept of service industry. At present, the Malaysian public is more aware of the term, service industry than the term, experience industry. Recently, the museum sector has become considered as part of the experience industry, because it offers experience to its visitors. With the new roles of museums today, museums in Malaysia have shifted their scope as well. This transformation is slowly taking place in Malaysia, following a general shift in the function of museums towards offering a better experience to their visitors. PERZIM’s experiences in developing their cultural tourism products and services can be identified as a transformation from traditional activities to engaging activities, and involve two phases.

Traditional to Engaging Phases

Phase I: Traditional

The formation of Malaysia started in Malacca in the thirteenth-century. The image of Malacca as one of Malaysia’s historical cities lends a substantial advantage in terms of attracting visitors to museums. The Malacca state government has played an active role in developing and promoting the tourism industry in the state since the 1980s, and this is due to their disadvantage in natural resources compared to other states in Malaysia (Cartier 2002). The state is heavily dependent on the tourism industry as their primary income, and the cultural tourism sector has been their major attraction for local and international tourists. Since being named a “UNESCO World Heritage City”, Malacca has become more popular with local and international tourists. Further, the location of the museums, attractive museum architecture, and a constant stream of imaginative programs, are among the strategies implemented by the corporation to increase attendance. Occasionally, PERZIM introduces special events and themes to their museums to make raise public awareness of their existence, and to give the best engaging experience for their visitors. At the same time, original artefacts, collections and culture are still their main focus. PERZIM is also actively involved in the local community via their programs and activities, and encourages the locals to become involved with the tourism industry.

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Museums in Malacca have a significant, close relationship to the tourism industry. This study found that other museums in Malaysia are also associating their products and services closely to tourism. In addition, the Malaysia Department of Museums formerly operated under the Ministry of Tourism (then Ministry of Culture, Arts and Tourism) (Department of Museum 2010). Since the Malacca state government is heavily dependent on the tourism industry, the museums in the state have to raise new and innovative ideas for their products and services to become competitive. To date, Malacca is the state in Malaysia that has the highest number of museums (sixteen public museums) with more being planned. Each museum in Malacca offers different products and services compared to other museums in the country and some museums in the region. Thus, as the market leader of the museum sector in Malaysia, PERZIM has to be aware of the latest developments taking place in the museum sector and experience industry. PERZIM is cautiously working in the same direction as the rest of the world’s rapidly evolving museum sector.

Phase II: Engaging

The experience industries involving museums in Malaysia once involved only static displays and no visitor interaction. With the new role of museums globally, however, the broader role of museums as educational institutions and to some extent entertainment venues benefiting the wider public (Stephen 2001), has prompted museums under PERZIM in Malacca to adopt new approaches. These are among the first few museums in the country and the wider Asian region to implement these new strategies. Importantly, the development of PERZIM uses the ICOM mission and objectives to inform their organisation’s guidelines. ICOM (2010) mission and objectives ask for a commitment to the conservation, continuation and communication to society of the world’s natural and cultural heritage, present and future, tangible and intangible. During the interviews, PERZIM staff affirmed that their organisation mission and vision is not only to make museums a place to display artefacts relating to history, but also to offer education, R&D activities, cultural centres, and to some extent to provide entertainment. This offers visitors unique experiences and redefines the institution’s role as traditional museums. PERZIM also recognise that they have to follow world trends, which dictate that new components of interactivity have to be applied to their products in order for them to attract more visitors, particularly younger generations. Thus, PERZIM’s programs and activities are designed for all demographics of visitors, in particular with families.

PERZIM’s Sleepover @ Museum program offers the experience of education and as well as entertainment to their visitors. This program had managed to attract domestic and 107 international tourists. However, the development of the experience industry in Malaysia— particularly the museum sector—is in a slow phase compared to other new sectors like animation and advertising. For instance, the development of animation sector in Malaysia began in the late-1990s, but its progress has been more rapid than the museum sector, which has existed in Malaysia for much longer. This slow progress could be due to most of the formation of public museums in Malaysia being administered by the state and federal government. The bureaucratic implications of top-down management here sometimes causes slow decision-making (for further reading read Siddiquee 2006), especially in cases involving more than one stakeholder in the decision-making process. Consequently, new changes may take longer time to be implemented.

PERZIM’s official website shows that from 2000 until 2009, the Malacca Maritime museum managed to maintain the first rank of attendance among all of the PERZIM museums. This could be due to the new features applied by these museums to make their products and services more competitive compared to other museums in other states in Malaysia. With different activities and programs being introduced constantly to their visitors, these museums have managed to attract a significant number of visitors. Some states in Malaysia may have better and more valuable collections (see the Perak Museum, and the Cultural Museum in Negeri Sembilan Shukry 2010) but attendance at these museums is lower than at Malacca museums. However, perhaps because of Malacca’s UNESCO status caused them to receive top priority from the federal government, particularly in terms of funding and promotion, since this title helped to introduce Malacca to the world.

As the museum sector is part of the experience industry, it has to become more imaginative with their products and services in order to offer the best experience to their visitors particularly the younger generation. PERZIM is seen as being aggressive in promoting and developing their museums and brand image throughout the country and the region, while the other museums in Malaysia are more passive. The only other state recognised for being aggressive in developing their museums’ brand image in Malaysia is Sarawak through the Sarawak Museum Department, which is not only offering visitors high quality cultural collections, but also produces annually an academic journal titled The Sarawak Museum Journal (Sarawak Museum 2010). Nevertheless, compared to other museums in developed countries, the museums in Malaysia are far behind with their engaging phase, although there are some positive changes towards it. Some Malaysian museums—for example, the Kedah Archaeology Museum (Utusan Malaysia 2009)—are not given proper attention by the state and federal government, and as a result incur significant wastage of resources.

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Interview respondents revealed that the engaging phase at PERZIM museums has been taking place rapidly over the past five years while they were prepared the city to become UNESCO World Heritage City. Once the title was obtained in 2008, PERZIM became more active in offering new features to their visitors, and has subsequently opened more museums in the state. While their new features combine culture and imaginative components the strict rules and regulations from the federal, state government and UNESCO, mean some of the changes may not be too imaginative in fact.

6.5 RQ3: How do Malaysian creative economy enterprises utilise traditional Malaysian cultural assets?

All respondents categorise PERZIM products and services as belonging to the cultural tourism sector, and realise the importance of tourism as the major income for the state. Thus tourism and culture are the two terms used by staff most frequently when describing their industry and the products and services they offer. With the announcement of Malacca as “World Heritage City” in 2008, cultural tourism remains a significant tourist attraction. Although the new creative economy concept has been introduced by policymakers in Malaysia, cultural tourism is the more acceptable term used by this corporation to describe their products and services. Since Malacca is lacking natural resources in comparison to other states in the country, the cultural tourism sector is identified as one of the sectors that can generate significant income to the state. Thus, all the museum activities under the management of PERZIM mainly aim to attract more numbers of visitors and tourists to visit the museums and the state.

The state government established PERZIM to manage the operation of the museums all over the state, and to preserve their local culture. At the time of the interviews, PERZIM was operating sixteen state museums and planning five museums around Malacca. Recently, PERZIM also expanded their role by making their museums education institutions for the public. Hence, their program is normally a mixture of all these elements, and these products are somewhat different from most of the other museums in Malaysia. This gives an experience to their visitors that other museums in the country do not provide, and attracts visitors from different types of market to their museums. PERZIM also assists locals interested in becoming involved with cultural tourism products and services by organising training and seminars open to the public. Through this exposure, the organisation hopes locals will learn to operate their own businesses. This is in line with the state government mission to achieve zero unemployment rates. Since the 1980s, the state government has recognised that the tourism industry could generate more job opportunities for the local people and give significant support

109 to the development of this industry. Malacca is called the “Historical state of Malaysia” and its government plays an active role in developing the tourism industry in Malacca, particularly by promoting their strengths, two of which are history and culture. To support the creative economy concept, the corporation is using culture, new ideas and technology.

Like other countries in the region, Malaysia promotes her unique culture to attract tourists to their country. This can be seen in all promotions for Malaysia, whether they are designed to attract investors, international students or tourism (particularly). The culture of Malaysia has always been the primary feature. Each state in the country has a different culture to offer to their visitors, and since the 1970s, culture has been an important component in attracting local and international tourists to the country (Musa 2004, 147).

Sometimes tourism campaigns based on Malaysian culture create heated debate with Malaysia’s neighbours, particularly Indonesia and Singapore. Recently, due to similarities between Malaysian and Indonesian culture, there has been dispute among the cultural groups in Indonesia. The issue has been prominent in the Indonesian media for more than three months, and has sparked a series of demonstrations in front of the Malaysian Embassy in Indonesia. At one point this created a violent situation for the Malaysians who reside in Indonesia. Both governments met to discuss the issues and try to find ways to solve the problem. After the issue was settled in 2009, UNESCO recognised Indonesian batik as the Intangible Cultural Heritage of Humanity. This made Malaysian batik producers furious. Following these incidents, the Malaysian public urged their government to start patenting local cultural items such as food and dances, which caused debate in Singapore. The similarities between the cultures of Singapore and Malaysia are unpreventable, since Singapore was once a part of Malaysia. I argue that this is an unending debate. The cultural plagiarism that some Indonesians have accused Malaysia of should not be an issue at all. Every country or community has copied the culture of others since humans have existed in this world. Culture is not exclusive to one community, and Malaysia is not the only country to face this problem.

6.6 RQ4: How can Malaysia position itself in the creative economy in the region?

As the historical city of Malaysia, Malacca has managed to position herself comfortably among the domestic and regional tourists, particularly from Singapore, Indonesia and Brunei. The state is also gaining substantial attention from international tourism market, and has ranked Malacca together with other important cities in Malaysia such as, Kuala Lumpur, and George

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Town. Now, more international tourists are travelling to Malacca; consequently, the whole state benefits. The number of tourists to Malacca has been growing every year, and the same scenario is evident in their museums (refer figure RQ 2.1 and RQ 2.2). More engaging and interactive components offer visitors better experiences of PERZIM’s products and services. With the state government target to attract eight million tourists to the state in 2010, aggressive promotion has been planned.

PERZIM had succeeded in positioning their museums as some of the most visited museums in Malaysia, and have become important tourist attractions in the Malacca. UNESCO’s recognition of PERZIM sets a good example to other state agencies in the country. Other museums in the country and regions, including Indonesia and Thailand, now seek PERZIM’s advice on managing their museums. As a result, not only they have a better positioning in the country but also in the region, and this will directly contribute to the position of the Malaysian creative economy. After modifying their mission and objective to have their museums do more than just display historical artefacts and collections, PERZIM has succeeded in adding new changes to their products and services. The organisation wanted the state to have the highest number of museums in the country, and at the moment they are leading other states in Malaysia.

Tourism has been the state’s traditional primary income, and recently creative economy has been identified by the state government as having significant potential to generate income. The state government has given priority for the development of creative economy, particularly in terms of supporting and promoting such development among locals. Each year through PERZIM, the state has run many training courses, seminars, and workshops, encouraging the public to participate, especially those who want to start their own businesses. This gives the locals the proper exposure and preparation for them to get involved in creative economy products and services, particularly relating to cultural tourism sector.

At the same time, the transformation of the creative economy is also affecting the whole country. From other data resources, this study found that Malaysia is trying to position herself as one of the most important countries with a creative economy in the region. In addition, several significant transformations have been achieved in Malaysia over the past ten years, in line with the government mission and policy to raise the status of Malaysia to that of a developed country by the year 2020. For the past five years, more positive development to promote the creative economy has been taken place across the nation, particularly around Klang Valley area and in Malaysia cities. Also, more private organisations are playing their

111 active role in helping the government to more effectively position the Malaysian creative economy sector. These government and private organisations are outlined below.

Kuala Lumpur City Hall (KLCH)

Malaysia’s capital city of Kuala Lumpur receives constant support and development from the federal government and major private sectors, particularly in the tourism sector. Although most of the administration’s government offices have moved to the new administration city of Putrajaya, KL maintains its major role as the nation’s number one Central Business District (CBD). In the KLSP20, the city identified the importance of culture and creative industries in developing and promoting their tourism sector. Today, KL has many world class creative economy facilities, and among the popular facilities are:  Istana Budaya (Cultural Palace)  Pusat Konvensyen KL (KL Convention Centre – KLCC)  Dewan Filharmonik Petronas (Petronas Philharmonic Hall)  Panggung Bandaraya DBKL (KLCH Theatre)  Pasar Seni KL (KL Central Market – KLCM)

National Arts, Culture and Heritage Academy (ASWARA)

ASWARA opened in 1994 and now has five departments: dance; music; film and video; writing; and theatre. Currently, they plan to open up a new department of heritage. This academy offers short courses and certificate and diploma level programs for part-time and full- time students. This focus on education in the arts, culture and heritage contributes to the government's Vision 2020 agenda to become a developed nation. Malaysia aims to follow these characteristics of developed countries. ASWARA works closely with other government and private organisations in developing, promoting, and preserving Malaysian culture, and is well known for preserving and popularising Malaysian traditional dance, music and theatre, which is on the verge of extinction, particularly in KL. In doing so, this institution often experiments with new ideas that are a combination of technology, innovation and creativity in attracting the public particularly the younger generation and international tourists. However, in comparison to other traditional institutions in KL and Malaysia, ASWARA’s impact as a higher institution can be considered small, particularly in terms of R&D and producing IP. Until today, none of their graduates have contributed a significant impact in the development of creative industries in Malaysia compared to other university graduates.

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University of Malaya (UM)

UM is the oldest university in Malaysia, and has a global reputation as one of the top Asian universities. Their Cultural Centre was established in 1974, and in 1997 began to offer a degree with honours program. In 2001, the centre launched their postgraduate program. Today, UM offers three undergraduate (music, drama and dance) and postgraduate (performing art, visual art and PhD) programs for students. The centre is also active in research and organising dialogues, seminars, exhibitions and conferences about creative industries. Since UM is the first university in the country, the institution has managed to maintain their R&D and facilities at an international standard. For instance, the centre organised an International Conference on Performing Arts as Creative Industries in Asia in 2008 (UM Cultural Centre 2009)—a joint effort with the then Ministry of Culture, Arts and Heritage which received catered to participants from all over the globe. The Cultural Centre is not only active in organising Malaysian traditional shows, but also modern and foreign performances such as orchestra, ballet and English theatre. Also, hospitality and tourism subjects have been introduced at the higher degree level at the Faculty of Business and Accounts since 2002. As the oldest university in Malaysia, UM offers vast national and international networking privileges. Unfortunately, the social science subjects are not as highly regarded by university management as the pure science subjects, and often receive second class treatment.

New Media Trend (Blogging/Online Social Network)

Blogging has become the latest global trend, and Malaysia is no exception. Apart from the online media websites, blogging has become the other means of positioning Malaysia museums in the region. Thus, both case studies in this research have their own official website, blogs, and fan pages on Facebook and twitter, which attract substantial fan numbers. In the time of writing up this chapter in October 2010, LCP attracted over one million fans on their Upin & Ipin Facebook page, while PERZIM has more than 800 fans, and their number increase every day. Both organisations actively update their account with photos from previous and current programs, and organise activities for their fans. Sometimes, these fan pages inadvertently prompt their fans to fight over certain issues—in one instance, a small group of Indonesians posted hate messages to Malaysians. Hence, the moderators need to handle the situation with care.

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Conferences/Meeting/Dialogue

Today, the Malaysian government and private agencies actively collaborate to raise public awareness about the significant potential of creative economy for the country. Increasing numbers of domestic and international conferences, meetings, dialogues and workshops related to this sector have been organised over the past three years. The latest event attracted significant names from the creative industries sector, and was held in Kuala Lumpur in December 2009. The Digital Content Conference managed to attract more than twenty international renowned creative industries figures and local key players to give their speeches. In 2009, MDeC for the first time sent the biggest group from Malaysia to attend the Cannes Film Festival to showcase Malaysian 3D-animated products. The Prime Minister attended this international event to show his support for this sector, and to show Malaysian government’s commitment to develop this field. All of these activities were organised to develop the creative economy, and to position Malaysia as the important country in this sector in the world.

Malaysia claimed to be ambitious with their Vision 2020 mission and the mega projects they launched, such as the MSC development (Bhuiyan 1997). For the past ten years, the Malaysian government has continuously offered significant support and incentives to local and international investors, particularly to open their ICT business in Malaysia. The creative economy development has been the Malaysian government’s top priority for the past three years, and many plans under the Malaysian Plan 10 have been established by the government for its benefit and progress. With Vision 2020 less than 10 years away, the government and private sector need to speed up with their work. Since becoming the sixth Prime Minister, Najib has demonstrated his commitment for the development of a creative economy, and positive progress can been seen all around Malaysia. With strong neighbours such as China, India and Singapore, this vision is seen by some as impossible. However, Malaysia has encouraged major international companies including Intel, Harrods, Hewlett- Packard (HP), Microsoft, and Rhythm and Hues to invest in the country in all aspects of ICT. This is a positive sign that international companies recognise the potential for Malaysia with her rich resources (like human resource and culture) to succeed in this sector.

Nevertheless, there are many aspects that still need major attention from the government. For instance, the level of awareness from the public about creative economy is significantly low. Hence, the government should educate the public first before they develop this sector further. The top-down approach by Malaysian government may reach and benefit only some people, but not the entire public. If the public understand the government’s vision, it will be easier to

114 get their support in implementing the vision. Also, until today there is no clear definition or policy about creative economy or its sectors. A clearer policy on creative economy will give proper guidance for the market players in developing their products.

6.7 Conclusion

After comparing PERZIM and MoV, this chapter presented the data gathered from PERZIM as a state government corporation managing more than 16 museums and heritage building in Malaysia. This highlighted the differences and similarities of museum management in developing and developed countries. Then, PERZIM’s experience as a traditional cultural tourism producer adapting to new changes and ideas with new role was categorised in seven themes, which answered RQ1 of this study. In answering RQ2, a discussion followed about how PERZIM developed their cultural products and services to remain competitive in the market. Finally, RQ3 was addressed by highlighting the close relationship between the cultural tourism and imaginative ideas used by PERZIM in their products and services. The corporation also used ICT facilities to gain a better position in the market. However, special consideration is needed with these modern applications. With their elite status within a “UNESCO World Heritage City”, the corporation has to ensure their changes continue to maintain the traditional elements in their museums and heritage buildings. RQ4 discusses government strategies to assist in positioning Malaysia’s cultural organisations in the region.

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7. DISCUSSION OF CREATIVE ECONOMY DEVELOPMENT IN MALAYSIA IN THE CONTEXT OF TWO CASE STUDIES

Innovation creates jobs and boosts national competitiveness. This is why we, too, must make a creative impact in a competitive global economy. We must not allow ourselves to be left behind. (Malaysia Prime Minister, New Strait Times, 2009)

7.1 Introduction

The intense development of technology in Malaysia started with the Vision 2020. The Malaysian federal government plans to boost their communication, creativity, multimedia and technology growth (Gray et al. 2002) and treats the creative economy as a top priority. An example of this is the announcement of 2010 as the Year of Innovation and Technology (New Straits Time 2009). However, the terms, creative economy and creative industries are only popular among policymakers and key players involved directly in the development of these sectors. Even then, there is much confusion amongst policymakers regarding these terms; in fact, to some extent there is an overuse of terms like creativity and innovation in Malaysia. At present, all ministries in Malaysia are stressing the importance of creativity and innovation, although their definition of the terms remains unclear. New terms such as creative tourism and creative government are being coined constantly to promote innovation and new ideas among the public. Thus the assertion that a top-down policy approach is valid at least in both case studies and for Malaysia in general. This same approach is used in other countries like China, Hong Kong, Singapore and the UK.

Apart from addressing scientific creativity, the two case study organisations considered the economy, and technological and cultural creativity in developing their products and services in Malaysia. However, their experiences may not be creativity as defined by DCMS (1998), but rather a second level of creativity as Keane (2009) has defined it. It is most likely that the two case studies in Malaysia exemplify the fitting of new ideas and alternative visions to existing norms, values and patterns as argued by Keane (ibid.). Rather than creating a totally a new idea, the two case studies demonstrate the modification of other people’s ideas. This is reduces the high risks often incurred in these competitive and unpredictable sectors.

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However, culture remains a significant element in all sectors in Malaysia, including in animation, and obviously in cultural tourism. Likewise, innovation is needed in all sectors, including culture and, particularly animation. Many authors identify the same close connection between the cultural and creative sectors, as I have with this current study. Both case studies here have significant cultural elements, and involve imagination, innovation and technology in their products and services. Drawing on both cases, the chapter will discuss and analyse critical issues for creative economy development in Malaysia. Each research question will be discussed. The chapter extends and contextualizes the findings of the cases drawing on secondary sources and literature where relevant.

7.1.1 RQ1: What are the main operational issues for Malaysian creative economy enterprises? – Les’Copaque Production

Workforce Issues

LCP staff members have expertise in a range of fields, which may contribute to their company’s positive impact on the market. Different disciplines allow the staff to produce new ideas for their animation and merchandising products. However, the majority of the respondents graduated from MMU, (as did three pioneers of the company also graduated). This raises the issue of cronyism and favouritism in choosing LCP staff. More than three higher-learning institutions in Shah Alam offer courses relating to animation sector, but the majority of LCP staff employed are from MMU, which is located about thirty kilometres away from Shah Alam. This environment is perhaps normal in any organisation, particularly in Malaysia, where favouritism towards graduates is widespread. Hence, the presence of MMU culture is strongly felt at LCP and in their products.

Respondents were all younger than thirty, and approximately ninety per cent of all LCP staff fall into that age bracket. The argument that younger demographics are more attracted to ICT than in previous generations is compelling in this case (Allenby 2006; Hoo 2006). All of LCP’s animation and merchandising staff members are young and understand the desires of the younger market. However, aspects that are lacking—such as finding financial support for their products, and networking with established international companies—mean LCP has had to depend heavily on Multimedia Development Corporation (MDeC).

While the CEO of the company is one few staff members aged more than fifty-years-old, he comes from a different field and background. As a result, he may not have good contact with

117 key people in the domestic and international animation sectors. At present, no LCP products involve collaboration with Malaysia’s well-known senior cartoonists or animators such as Mohd Nor Khalid or Lat (Kampung Boy cartoonist/animator) and Muliyadi Mahamood (academician/cartoonist). A collaboration between LCP and these internationally renowned creative might produce more interesting products and reach a wider market, particularly among those over thirty. With LCP’s target market being the whole family, including parents and grandparents, the company should consider having a good blend of staff from all ages. This mixture would strengthen their animation and merchandise products.

Management Approach

LCP practices a non-traditional management style where all staff members have the right to express their ideas. This creates a different working environment from more traditional companies with a less bureaucratic management style. Commonly, most private companies involved in Malaysian ICT products and services adopt (or try to) this style of management. Florida (2002), Handy (1995), and Sabel (1982) argue that the characteristics of the post- Fodist workplace (which include creative sectors) are inherently less hierarchical, more “humane” in liberating the expertise of highly-skilled workers to allow productivity gains and the development of a more contented workforce. However, the final decisions regarding LCP’s products and services are still made by CEO. For example, the CEO recently cancelled the production of LCP’s second 3D film, Geng: Angkasa (Gang: Outer space), arguing that it was not what the primary non-Malaysian animation market of Indonesia wanted. Also, LCP’s sister company, Bruang Film Production is going to refilm their first feature production, Zaitun Ceritaku (Zaitun: My story) because the CEO was not happy with the overall direction and acting in the film. This shows that the top-down approach is still the primary practice in this company, although many of the decisions for LCP’s animation products are collectively made by the staff.

Not only has LCP wasted money and time in those two projects, but the cancellation and refilming exhibits a lack of good decision-making and confidence with the domestic and international markets outside Indonesia. LCP products are also popular in Brunei and Singapore. Gang: Outer Space 3D may not be what the Indonesian market wants, but other markets might welcome the film. Unless there are other undisclosed reasons, LCP’s justification for cancelling this project—originally slated for a 2011 release—is questionable. The decision to make a biopic about popular 1980’s Malay singer, Zaiton Sameon involves a number of risks, particularly given the unpredictable response to local feature films in Malaysia in comparison with significant competition from Hollywood, Hong Kong and Bollywood. Also, 118

Sameon—who is now in her fifties—was popular for less than five years in Malaysia, and remains unknown in comparison to other Malaysian singing legends, particularly to audiences who are below thirty-five years old—the most active cinema-going audiences (Movie Picture Association of America 2010). This again has raised the issue of favouritism, since the CEO of LCP came from the same state as the singer. Given the unpredictable nature of the sector, however, the film might get a good response from the Malaysian public.

Geographical Location

As LCP’s animation products are geared towards the family market, their location in Shah Alam is more suitable than in Cyberjaya. Shah Alam status as a mature city with a multiethnic population from all classes will boost the company’s image and their merchandising sales. LCP’s convenient location close to the federal highway, ample parking spaces, restaurants, and malls makes it easier for the public to access to their products. Also, the proximity of these facilities makes it easier for staff to work at Shah Alam than in Cyberjaya. Although Cyberjaya has other advantages, particularly a high speed Internet connection, LCP does not see it at as enough of an incentive to move there since they are not involved in outsourcing activities. With at least three highways connecting Shah Alam to Cyberjaya, it is not a problem for them to go to Cyberjaya whenever necessary.

Nonetheless, LCP’s local competitor, KRU Studios moved their operation to Cyberjaya because of their close proximity to Putrajaya, and managed to secure many high profile ICT contracts from the government and private agencies. As one of the local pioneers in the ICT sector, KRU won the bidding; but this may also be due to their close connection with some top politicians who are involved in making Malaysia policies and important decisions. Politics plays a major role in the direction of the Malaysian economy. A close relationship to top politicians can assist private companies secure high profile projects from the Malaysian government (see Johnson & Milton 2003). Apart from this, other criteria make these companies successful in the market. For example, their products have to be accepted by the market, particularly in a new sector like animation. Also, KRU has a strong background in the creative sector, with founders who are a famous trio sibling band, music composers, actors and film-makers. KRU has operated longer than LCP, and established profiles and a strong network, KRU’s movement to Cyberjaya is perhaps the best step for them to further expand their operation. Prior to the relocation, KRU operated in Kuala Lumpur for more than fifteen years. The highest priority for a young company like LCP is to strengthen their company profile and brand. Hence, Shah Alam is regarded as the best location for their operation—it is important for them to be close to their market, especially since LCP is not involved in any outsourcing activities 119

(unlike KRU). In any event, currently LCP is more focussed on expanding their products in the region than on other aspects.

Position in Sector

With their main product being an animated television series, LCP is directly involved in the animation sector, which is part of the content industries. Not only have LCP managed to produce international standard animation products at a minimal cost, but they also feature Malaysian culture, which is different from other existing products in the international market. This new feature introduces the uniqueness of Malaysia to the world, and attracts tourists. This activity—known as film tourism—will contribute significantly to the local economy and generate income for locals. Many places worldwide such as France, New Zealand, South Korea and Thailand attract considerable number of tourists based on their films, television dramas, documentaries and animations, which demonstrate the close connection between film (including animation) and the tourism sector. Although measuring the contribution of LCP animation products towards film tourism in Malaysia is difficult, their products offer significant potential to contribute to this the sector. Indirectly, LCP animation products and 3D films also contribute to other sectors (like merchandising and tourism) in Malaysia.

With the positive response from the local and Asian region market, LCP has proved that Malaysian animation and 3D products are on par with international products. Before that, few local animation products had the same impact as their international competition, even in Malaysia, primarily because of the sceptical perception of local animation products among local audiences. Arguably, the Malaysian local market prefers foreign products in animation (Muthalib 2007), fashion (Zainol Ariffin 2011), furniture (Mohamed 2011), and films and music (Basri 2011) compared to local products.

Malaysians audience can be less patriotic about the creative sectors, because they claim the local products lack creativity. In comparison to creative talent from outside Malaysia, local talents such as actors, film makers, and singers struggle to gain attention from local and international sponsors. Maher Zain, a popular international Swedish singer performed three times in Malaysia over six months (Basri 2011), while veteran Malaysian composer and musician, Datuk Dr Ahmad Nawab—who produced more than 2000 songs for many Malaysian popular singers since the 1960s—has been unable to perform at a big scale concert until recently (Shamsudin 2011). In the animation sector, Muthalib (2007) observes that the general consensus is that Malaysian animators are still not capable of producing competitive animated films. Notably, LCP competes with large budget global players like Disney and Pixar. Also, the 120 perception that cartoon or animation products are “children’s only” is still strong in Malaysia, which means that although local products are sometimes better and cheaper than the foreign products, the local market leans toward foreign products. In addition, Malaysia’s market is fragmented by multiethnic groups who prefer to watch the productions from China, Hong Kong (for Malaysian Chinese), and India (for Malaysian Indians) (Hoo 2006). However, younger generations in these ethnic groups are starting to appreciate Malaysian products, although there is still a preference for Japanese, South Korean and western products due to J-Pop and K-Pop culture, and the effect of globalisation.

Future Plans for the Organisation

The positive achievements of LCP products in Malaysia and Asia demonstrate that their products are well accepted in the region. Respondents believe that one of the major strengths of their products is the point of difference of exhibiting Malaysian culture to the international market. In the future, in order to make their products more relevant to the global market LCP plans to mix local culture with global content. Also, they plan to diversify their products to other content industry-related products, including computer games, feature films, IPs, merchandising and franchising. Importantly, Malaysian culture will be the major element in all of their content products.

However, as LCP has been operating for only six years, the company should consider carefully their objective of diversifying. Not only does this require substantial funding, but LCP also may not have expertise in some of the new areas, particularly in producing feature films. Despite the success of their films and music in the 1960s, the Malaysian market is rather small, and not many Malaysian films achieve local success (Hoo 2006). The recent announcement from LCP’s CEO not to show their first featured film due to quality issues (Mahmud 2010), and not to proceed with their second 3D film project, may tarnish their reputation with the public. This shows that LCP should not jump eagerly to unfamiliar fields where they lack expertise; rather, they should concentrate on establishing their core products.

LCP also should be more careful in evolving a new sector, as while their future could be promising, there is fierce competition from both local and international products. For instance, numerous local 3D animation films and television series will soon be released by companies such as Animosta Studio—see Fig. 7.1.1 Boboiboy—and other products, including Alamaya and Supertots. In addition, KRU Studios produced CGI musical, Magika, which received good response from local audiences in 2010 following their two high-achieving CGI films, Cicakman and Cicakman 2 in 2006 and 2007. In March 2011, KRU Studios’ multilingual, epic film, The 121

Malay Chronicle: Bloodliners (refer Appendix 13) will be shown in 72 countries. Through the constant support and incentives from the Malaysian government, market players and products in the content industry are growing strongly each year, and a static audience size means that competition is fierce.

Figure 7.1.1. Boboiboy 3D animated television series produced by Animonsta Studio (Animonsta Studio Website 2011)

Organisation’s Mission

LCP’s mission is to penetrate the international animation market by using Malaysian culture as their unique selling point. This uniqueness differentiates their products from those of other countries. Currently, many countries in the Asian region are responding well to LCP’s animation products and merchandise. Their new networking with animation companies from China, India and South Korea is used as a platform to establish their products in these countries and other countries. Thus, they are confident their animation and 3D film products stand a good chance to break into the global market due to their distinctive image. This will assist LCP and Malaysia to better position themselves in the global animation sector or at least in the region.

Nonetheless, the Malaysian multiethnic image and culture may not be what the global or even the local market desires. With the effect of globalisation and the implications of internationally successful Japanese animation products, LCP’s animation and 3D products may be able to find a place in the global market. For example, presently LCP products still cannot break into

122 other regions, such as America and Europe, although they might get some attention within Asia. As the new market player in animation sector, it is hard for LCP to compete with other well-established products from Japan and the US. On one hand, their cultural image could be a unique aspect for Malaysian animation, but on the other, not all countries understand or can accept such cultural differences. As Khalid (2001, 154) states, the US company he worked with (Matinee Entertainment) to turn his comic cartoon into an animated series, had difficulties understanding Malaysian culture. Also, the rapid evolution of technology makes it hard to predict the overall direction of the animation sector and the content industry. The market is becoming complicated, and sometimes quality may not be what the market is looking for. Perhaps differentiation of products is what the market is looking for.

Company’s Position in the Policy Context

With less than a decade to achieve Vision 2020, the Malaysian government is increasing their efforts to develop ICT related sectors, including animation. These sectors are heavily subsidised and have been growing for the past five years, in accordance with government plans, and there is steady growth in advertising, animation, fashion, film, publication and television production. For example, less than five animation studios existed in Malaysia until 2005, and that number has expanded rapidly to more than eighteen over the past three years (3D World Magazine 2010). According to MDeC, the number of creative content producers in Malaysia increased tremendously to more than 200 companies in 2010. More production houses are involved in the animation sector, or adopt the latest technology such as CGI, Maya technology, and Dolby sound applications in their productions. In addition, the number of higher institutions in Malaysia offering ICT-related courses in order to produce higher qualified human resources is increasing every year. As a result, these factors have contributed to the high quality work produced by the local companies on animation series, 3D films, video games, and other related products. Also, the Malaysian public are becoming more aware of the high quality of local products compared to the last ten years.

Nevertheless, the domination of developed countries in animation and the content industry is still a threat to developing nations like Malaysia. Global film markets (including animation) and television productions are dominated by western products particularly those from the US (Rosnan, Ismail & Mohd Daud 2010). Since the majority of content industry companies in Malaysia are categorised as SMEs and have limited funding and facilities, their target market is restricted to within Malaysia or around South East Asia. The chances for their products to go abroad are slight without help from the government and private sectors. Hence, their

123 growth is heavily dependent on government support and incentives. Funding is always a major challenge, competing with international products that have strong financial and technical back up is never easy. The government funds like the Creative Fund and the E-Content Fund have been created to assist the development of Malaysia’s creative economy to become one of the important players in the animation global market. However, the processing of funding applications is claimed to be complex, inefficient, slow, not transparent, unprofessional and unfriendly (Hoo 2006; Leong 2009). Malaysia’s ongoing position in the creative economy globally is hard to predict, but their local market has a significant future, that perhaps will spill over around the Asian region.

With proper training and education, LCP staff members have conceived quality products in contrast to the previous animation products in Malaysia. They use higher technology facilities at a minimal cost after receiving significant support from the Malaysian government and private agencies. LCP received support from at least three ministries and two private organisations for their first 3D film. Since LCP commenced operations, the Malaysian government and private agencies have become increasingly aware of their presence, and have been more prepared to offer the right equipment and support. In addition, the public is ready to embrace their product.

The significant progress of LCP animation products and merchandise in Malaysia and around Asia is due to the collective efforts from the government, particularly MDeC and other corporate companies, as compared to the previous animation companies. The establishment of MDeC has enhanced the creative industries in Malaysia, and taken them to the next level. The government has initiated support of the creative industries, and the local market now follows the government’s lead. Hence, O’Connor’s (2007) argument that this sector is using a top-down approach cannot be ruled out entirely, particularly in Malaysia. Also, their products meet many of the needs and wants from the local and regional market, while the animation products of previous companies failed to identify those elements. Of the four animated films produced in Malaysia, LCP’s 3D film exhibited good story boards, the highest quality technology, and was almost on par with other international products. The film is suitable not only for children, but also for other family members because the story has characters that represent each age group. However, there is lack of high quality movement of the characters, with movements still looking slightly robotic compared to characters created in more advanced countries. The staff members of LCP need to upgrade their skills in this regard. However, as the cheapest 3D animated film available internationally, this lack of technical skills is understandable.

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7.1.2: RQ1: What are the main operational issues for Malaysian creative economy enterprises? Malacca Museum Corporation

Workplace Issues

Staff members at PERZIM comprise a mixture of all ages and qualifications. This creates a good blend of younger and older generations, which is necessary for their institution. As a museum corporation, they preserve and take care of Malaysian culture. This mixture of staff could contribute to PERZIM’s accomplishment in attracting a significant number of visitors compared to other museums in Malaysia and the Asian region. Their products and services combine the modern and traditional to fulfil the interests of visitors. Hence, PERZIM needs staff from all ages to represent their market.

However, the qualifications of their curators are not varied enough, and almost 100 per cent of their staff is from Malacca. This may result in a lack of interesting ideas. Also, by limiting the intake of their staff to only locals PERZIM have limited the potential for more domestic visitors from other states to their museums.

Management Approach

The curators of PERZIM are state government staff, and abide by the rules and regulations of Malacca state. Their role is to manage the museums. The General Manager (GM) acts as the CEO of the corporation, and he works together with the museum curators to administer all PERZIM museums. Each curator manages between two to eight museums.

However, not much authority is given to these curators. Each curator has to defer to at least three stakeholders before making any decisions. This may cause conflicts of interest between the desires of the federal and state government, and UNESCO, who all may support the museums financially and in promotional aspects, but can complicate the decision-making and implementation process. New changes require approval from more than one stakeholder, which involves tiered-level decision-making. The organisation uses a top-down management style, where lower level staff may have fewer opportunities to discuss changes with top management.

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Geographical Location

Malacca attracts a significant number of local and international tourists. Their status as a Malaysian Historical City and UNESCO World Heritage City aids in promoting their museums to tourists. Today, Malacca has the most number of museums in Malaysia, particularly around their city centre. Visitor responses to their museums are among the most positive in Malaysia (refer Appendix 14). With the proactive support from the state government—who continually raise new and fresh ideas for tourism products and services—the state has established the most museums in Malaysia. Their Facebook fan page attracted more than a thousand people until November 2010, and they update the page regularly with their activities. Their proximity to Kuala Lumpur, Putrajaya, Kuala Lumpur International Airport, and Singapore makes the state easily accessible by local and international tourists.

However, the state government’s weaknesses in forecasting and planning the city have caused massive traffic and congestion problems during weekends, and public and school holidays over the past five years. The local people of Malacca avoid visiting the city during peak periods, when parking is hard to find, making drivers parked their car by the road side, which affects the traffic flow. This congestion leads to other problems like pollution and price increments among the hotels and taxis.

Position in the Sector

Their products and services of PERZIM combine culture and tourism with some elements of innovation, to provide different experiences to their visitors compared to the other museums. PERZIM regard themselves as cultural tourism providers with new, additional roles. Therefore, many current programs and activities organised by PERZIM portray their new role, and also attract more visitors from all markets to consume their products and services. In recognition of the rapid development of ICT in the world PERZIM, is also implementing such applications.

However, PERZIM status as a non-profit organisation means that they depend heavily on state and federal government financial aid. With minimal charges collected from the visitors, PERZIM has a limited budget and income to make significant changes that involve advanced technology. As a result, PERZIM’s museums are less attractive to certain group of markets, especially in comparison to Singaporean museums. Also, the museums have to compete with many modern and unique tourism attractions in and outside Malacca city. These attractions managed to attract a substantial number of people compared to the museums. PERZIM needs

126 to be more imaginative in attracting visitors to their museums. By using ICT applications and innovative planning, the corporation can become competitive with other tourism attractions.

Future Plans for the Organisation

PERZIM follows the ICOM mission, and is shifting their role to become a modern museum corporation. They have implemented many changes and programs over the past decade, and are among a number of museums in the region introducing different activities and programs for their visitors. One change incorporates ICT in the promotion of their museums to the public, including the establishment of a Facebook fan page, and the virtual museum Malacca website, which covers the eighteen museums under their management. These tactics aim to attract more visitors to their museums, particularly the younger generation. Hence, more engaging and interactive programs and activities are planned to be part of their transformation. At the same time, they are still maintaining their primary role as cultural institutions, and UNESCO World Heritage City status. PERZIM’s priority still focuses on original collections and displays rather than on ICT applications.

In order for the museums to become competitive with other tourism products and services, museums need to transform from their traditional role. However, some changes by PERZIM have not been welcomed by cultural activists, who activists claim some of the transformations promote and support colonisation culture. Also, the number of visitors to their museums is not as significant compared to other new modern tourism attractions in the state, including the Eye on Malacca and Taming Sari Tower (see Fig. 7.1.2). Therefore, PERZIM has to balance their role between the modern and the traditional. In fact, the transformation of PERZIM and other Malaysian museums is slow compared to other museums, particularly those in developed countries. The Sarawak Museum has been talking about incorporating transformation to add creativity and technology to their products and services since 2007. However, given their distance from the federal government administrative centre of Putrajaya and the Malaysia capital city Kuala Lumpur, it could take a longer time to obtain approval for these transformations. Many commentators (Hoo 2006) have recognised that the Malaysian government has too many bureaucratic levels, and is not transparent enough in implementing their policies.

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Figure 7.1.2: Popular attractions in Malacca: Taming Sari Tower and Eye on Malacca (Tourism Malacca Website 2011)

Organisation’s Mission

PERZIM’s museums are progressive in their implementation of new programs, in comparison to other museums in Malaysia and the region. In recognition of the difficulty traditional museums have in attracting visitors, particularly for the younger generation, PERZIM regularly upgrade their products and services, and frequently introduce new attractions. For instance, PERZIM add new experiential products like the Sleepover @ Museum program to give different and better experience to their visitors, and to encourage repeat visits. According to Stephen (2001), the experiences the museums provide to their visitors are important for their survival in today’s world. With new ideas like the Sleepover @ Museum program, PERZIM hopes to provide a different experience to their visitors, and importantly to educate their visitors with new information using non-traditional approaches. This will help them to become competitive and sustainable in the tourism industry.

Nevertheless, their substantial dependence on tourism industry could create a crisis in the future. As the second smallest state in the country, fierce tourism development has brought congestion and pollution problems over the past decade, and Malacca is also facing a constant water shortage. Therefore, the state government is searching actively for solutions to problems that could affect the tourism industry.

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Organisation’s Position in the Policy Context

The evolving museum sector means that the role of the traditional museum is becoming more challenging. With competition from their neighbouring countries—particularly Cambodia, Indonesia and Singapore—museums in Malaysia need to keep up with the latest trends. Following the definition of museum by ICOM, the existence of Malaysian museums is predicated on the principal aims of education, conservation, and preservation of history, culture and natural history, as well as tourism (Malaysia Museum Department 2010). The museums in Kuala Lumpur, Malacca, Sarawak and Selangor also are constantly organising many engaging activities, programs and workshop for the public. Some of these programs encourage more locals to become involved in the tourism industry by establishing their own businesses so that they can generate their own sustainable financial resources.

Heritage buildings need a significant amount of money to preserve them especially with Malaysian weather. Restoration alone will not going generate any income for the owner. With limited financial capabilities, the survival of private entrepreneurs in this sector is doubtful. Further, the Department of Museum in Malaysia constantly changes its home ministry. Although the museum institution is closely related to tourism, it is currently administered by the MICC. The divorce of culture and tourism in order to separate ministries since 2002 is making cultural tourism operators lose their focus, who are confused about how to use their heritage resources (Mohamed 2006, 29). The new MICC has too many responsibilities and departments, and while their focus is on the restoration and preservation of Malaysian culture, at times their functions and roles overlap with MoTour. For example, the minister of MICC Dato’ Rais Yatim has constantly talked about attracting more tourists from the US, and organised several cultural showcases in Washington during the Malaysian PM’s 2010 visit there (refer to Utusan Malaysia 2010; Berita Harian 2010). While this demonstrates the importance of tourism as one of Malaysia’s top three income-earners, their concentration on the marketing and promoting tourism for the country, could create confusion among the public, particularly among cultural tourism producers, about the overlapping roles and function between these two ministries. Also, some other ministries are also talking about similar concepts to culture and tourism such as, agro-tourism (Ministry of Agriculture), Malaysian products and services (MITI), and health tourism (Ministry of Health).

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7.1.3 RQ2: What is the development path for Malaysian creative economy enterprises?

This section responds to the second research question, and continuing the earlier discussion, identifies four primary factors relevant to articulating the development path for Malaysian creative economy enterprises. There are:

1. Top down approach 2. Local culture as the primary asset of the Malaysia creative economy 3. Limited funding assistance 4. New market expansion

1. Top-down approach

The content industries and the museum sector in Malaysia depend heavily on the government’s directive and guidance. This top-down approach is being practised significantly in developing their creative economy. For example, the growth of the content industries in the country started significantly when the government announced Vision 2020, which led to the development of MSC mega-project. The museum sector in Malaysia has always been one of the traditional government institutions that safeguards valuable historical artefact collections. All state museums in Malaysia are managed by the state government, whereas the national art gallery, monuments, and museums are managed by the federal government. Although PERZIM might be one step ahead of the other museums in Malaysia in terms of adopting fresh ideas and ICT applications, they still manage their museums according to state and federal government instruction. The General Manager of PERZIM has little power in making important decisions, which therefore includes Malaysia in assertions by Lee (2010, 41-42) and Keane (2007) that creative economies exhibit a top-down approach from the government to the public. Other countries such as Singapore (Lee 2010), China (Keane 2007), the UK (Oakley 2004), and Indonesia are experiencing the same scenario in developing their creative sectors.

Although there are small numbers of content companies in Malaysia, they tend to work autonomously, without following government’s lead, and their products and services are almost unheard of in the local market. Normally, this minority industry—better known as an “indie group”—market their products and services abroad or through new media and untraditional ways. Private museums in Malaysia are insignificant, except for those operated

130 by big Malaysian conglomerate organisations, including Aquaria and Petrosains, which was established by PETRONAS. However, all museums in Malaysia face fierce competition from other tourism attractions operated by the private sector, from shopping malls to theme parks. In addition, those reluctant to follow governmental guidance may have difficulties gaining government support. Presently, both LCP and PERZIM made a significant impact in the market due to their close ties to the government.

However, I argue that the realisation of the potential of content industry—particularly the animation sector—in Malaysia might emerge from the market itself. The local accomplishment of the Gila-gila cartoon magazine sparked interest in the cartoon sector, which later led to an animated television series and 3D films (Mahamood 2001; 137; Muthalib 2007). This success generated interest in the potential of this new sector among the government and private sectors, especially when some foreign products were found to be unsuitable for local culture because of their negative effects on children. This prompted the government to start playing an important role in developing, promoting and supporting the local cartoons and animation that feature Malaysian culture. While the early animation sector in Malaysia was monopolised by a government agency film (National Film), the private sector has been a key player in the growth of the content industry in the country (Mahmood 2001, 137). Nevertheless, the significant support from the government, with their friendly policies for the market players in content industry, has placed Malaysia on the content products and services map (3D World Magazine 2010).

At the same time, I argue that a new sector or concept such as content industry and creative economy cannot gain widespread acceptance without the direction and support of the government. This also gives confidence to the private sector, particularly small companies, to venture into this high-risk sector. Without the guidance and support of government, small companies will find it difficult to enter the market and compete with bigger companies, and traditional sectors such as the museum sector need significant support from the government to become competitive and sustainable in the market. As the majority of Malaysian government museums do not charge high entrance fees, financial support from the government is crucial for their survival. Countries that have been successful in creative and cultural sectors through this approach include China, Singapore and the UK, although there are ongoing debates in the literature about the creative sectors of these countries copying ideas from other countries (for China, see Keane 2010), producing “output” rather than “input” creative products (for Singapore, see Yue 2006), and the use of political motifs (for UK, see Oakley 2004). Importantly, the Malaysian government should implement fresh and imaginative policies that assist the growth of creative sectors and transform bring new relevance to 131 traditional sectors. Imaginative policies can guide market players to become more innovative with their products and services.

2. Local culture as the primary asset of the Malaysia creative economy

Local culture plays a vital role in the development of the Malaysian creative economy. As demonstrated by both of the case studies in this project, multi-ethnicity, religion, food, and language have been used significantly in animation and museum sectors. In terms of the content industry, Malaysian culture has been featured on film, magazine, newspaper, radio and television, and the government has encouraged local animation and content producers to include local culture. Recently, Islamic influence also can be seen in animated series produced by government agencies such as MDeC and RTM—for example, Ibn Batutta by Radio Television Malaysia, and Saladdin by MDeC and Al-Jazzera—focusing on a worldwide Muslim audience. Private animation companies like Animonsta (Boboiboy) and Handy Pro are also following this direction. However, the Animonsta animation series has more Malaysian local influence, compared to the other series, which bear significant Middle Eastern influences. This is the dilemma faced by some of private content producers in penetrating the global market. European and US markets require their content products to have more westernised features (3D World Magazine 2010); consequently, their products are not categorised as Malaysian products, and the public may not be aware that these are local productions; for example, Transformers cartoon series was produced in the 1980s and 1990s by Lensamation, which is now known as Lensa Film Sdn. Bhd.

However, Malaysian culture still dominates the majority of content products produced for local and regional markets. To become competitive in the high-risk market, some companies also adopt glocal features. In 2011, there are more local animated television series and films scheduled to come out using glocal imagery. Boboiboy is the first superhero, 3D, animated television series produced by the three founders of LCP. The story is about a Malaysian child who can change into three forms and fight against bad people and aliens with his multiethnic friends, and one Muslim character wears a hijab (Mohamad Zakaria 2009). Boboiboy has resembles Ben 10, but incorporates Malaysian characters and storylines.

As a cultural institution, PERZIM’s major focus still falls on the traditional roles of museums. Despite rapid global changes in ICT, this traditional role is still essential even though change is necessary to make their existence competitive and viable in a market that competes with other tourism attractions.

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Government and market players recognise the difficulties in competing with developed countries that have advanced technology facilities and more financial support. Hence, Malaysian culture has been utilised as the main tool for the Malaysian content and tourism industries, because of its strength and uniqueness compared to other products and services in the market.

3. Limited funding assistance

Competition in the creative and cultural tourism sectors requires substantial amounts of capital. Development of ICT and cultural tourism require significant financial capital and continuous funding assistance. As a small developing country, Malaysia has limited financial resources, and while the country is still growing, it also needs significant amount of money for other sectors. Therefore, creative and cultural tourism sectors have to work on a limited budget.

Private companies like LCP need to raise their own capital and seek outside resources, rather than depend on government funding alone. In addition, the recent emergence of the creative sector in Malaysia means that raising support from local financial institutions can be difficult, a factor that has been identified by the local market players, particularly new and small companies. Very little financial assistance is available, and it is hard for these organisations to compete fairly with larger companies. Although the government has been allocating special budgetary resources and giving substantial support for the sector (Vicziany & Puteh 2004), there are still many market players competing for the same funding or government projects. Jarman and Chopra (2007) and Pandiyan (2009) identify the issue of lack of transparency from Malaysian government in tenders for government’s projects and funding, while Sidhu (2009) observes out that the government has restrictive bureaucratic measures in dealing with creative sectors. Budgets and government projects are normally awarded to larger companies such as KRU Studios. With KRU’s renowned name in content industry and their close ties with politicians, the company regularly wins bidding for government projects and contracts. This company has gained local market confidence in their capabilities for providing high quality products and services in creative sectors. However, the government and private sector in Malaysia should give new and small companies an opportunity to work alongside large companies like KRU.

Larger companies also have the responsibility to include small companies in their projects. By doing this, they train small companies to work in big projects and have their own income, which will help them to become independent. These mentor and mentee practises are vital in 133 new fields like the creative sectors. There have been positive changes in this field, with large private local companies assisting small companies like LCP, but more attention should be given, particularly in helping small rural companies.

Recognising the limited funding problems in Malaysia, government agencies such as MDeC and MITI are helping small and new companies in the creative sectors to network with foreign partners. This makes them more independent and sustainable (3D World Magazine 2010; Plantec 2009). These companies are encouraged by MDeC and MITI to join overseas exhibition and road-shows to sell Malaysian content products in the global market. From this platform, they can network with foreign companies and raise foreign funds. As a result, animation and content companies such as Handy Pro, KRU, and LCP have gained attention from foreign companies. Today, these companies are working with foreign partners in China, the Middle East, and South Korea to produce animation and other content products for the global market.

As a traditional cultural institution and state government corporation, PERZIM depends almost 100 per cent on government financial assistance. Since their museums are non-profit, like most other public museums, government monetary support is significantly needed (see Zan 2000). Subsequently, their transformation towards becoming modern museums is limited. For example, museums in Malacca are applying new ideas and ICT features, but at a minimal level. Most of display items still lack interactive activities. As a result, attracting more visitors is a challenge, particularly the younger demographics. In addition, museums are facing tough competition from other modern tourist attractions. This negatively impacts the stakeholders and may prompt government budget cuts. According to Goulding (2000) the establishment of contemporary museum is restricted in budgetary terms, and administrators are pressured to increase attendance. Also, the museum sector in Malaysia falls under the control of the MICC, since they are a cultural institution; but for marketing purposes, museums depend on MoTour. This scenario means that Malaysian museums face the awkward situation of reporting to at least two ministries, which can lead to much duplication and contradiction of duties (Pandiyan 2009). Also, Malaysian government should amend their policies to allow Malaysian museums to become more independent in finding their financial resources, such as operating their own souvenir shop and cafe. This will help them to become independent of limited government budgets for their operation cost.

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4. New market expansion

With government help, the creative sectors in Malaysia are always looking for new markets to penetrate. Both PERZIM and LCP work hard to remain relevant and sustainable in their markets. The main marketing attention for both organisations now is in the Asian (including Middle East) region, and slowly is expanding towards Africa and America. This is because it is almost impossible to break into the European and US market, particularly in terms of the cultural differences of content industry products, and large budget animation and film projects from these countries (Rosnan et al. 2010). Focusing on the Asian market is a major current strategy because of cultural similarities and the strong economic development in the region. Also, concentrating on the Asian region offers a good platform for content products from Malaysia to enter into Asian groups reside in Europe and the US. Similar strategies were employed by the Indian, Hong Kong, South American and South Korean content industries.

Since the museum sector is considered part of tourism activities, their target market is also including the European region, because Malaysia receives significant numbers of tourists from Germany, Netherland and the UK, and these tourists like to visit cultural and heritage places. Tourists from the UK represent the largest group of tourists outside Asian region in more than a decade (Aziz 2009). However, the Malaysian government is also looking for other new avenues to market their tourism products and services, and the US has been identified as one potential target market. In 2010, the MICC and MoTour organised a Malaysian traditional cultural showcase in Washington that was officiated by the Malaysia First Lady (Bernama 2010). This event received favourable responses from the private and public sectors.

The Malaysian government is also focusing on the global halal market. They are marketing their wide understanding about the concept of ‘halal” in their products and services, including through the content and tourism industries. Nevertheless, the government is much aware of their competition. In diversifying the markets they promote, the Malaysian government avoids dependence on only one market. Hence, their economic income will not be affected should something happen to one of their major income sources. The market diversification is needed as a backup plan, particularly in the high-risk content and tourism industries.

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7.1.4: RQ3: How do Malaysian creative economy enterprises utilise traditional Malaysian cultural assets?

Three major issues pertain to the use of traditional Malaysian cultural assets for creative economy purposes, namely, the role of technology; cultural history and cultural tourism; and “halal” issues.

The usage of cultural resources in technology applications

As an animation production company, Les’Copaque Production (LCP) uses a high level of technology creativity. In order to make their products different from the market they incorporate Malaysian culture in their global products. This combination is called glocal (Robertson 1995, 25-44), a term that started to get attention from the world community in the early twenty-first century. In Malaysia, this concept has become commonly used over the last five years. Currently, this is the image LCP is portraying, and has captured the Southeast Asian market. Later, they translated their animated products into English. Their market is becoming larger and more appealing to global audiences. With this glocal feature, their animated products are then spreading out to Southeast Asia and other parts of Asia, making LCP the most successful Malaysian animated series and 3D film producers in history, using 100 per cent local creative talent. Their market has extended to the Asian region, with their television series screening on the Disney Channel and Air Asia in-flight entertainment. The Malaysian multiethnic culture being the major image of their animation and 3D products shows that the market can connect with their products. The world market today is becoming more exposed to other cultures, an effect of globalisation.

Since the emergence of this sector, Malaysian culture has always been the main influence on character and storyline. Hence, creative sectors in Malaysia are substantially influenced by culture. As De Berranger and Meldrum (2000) and Cunningham et al. (2004) note, the Asian and European (except for the UK) creative industries sectors are deeply rooted in cultural activities and tradition. Their cultural strength and rich resources of many developing countries mean that cultural sectors such as arts and crafts and heritage make up part of the creative industries. Their definition and understanding about creative industries are different from the UK and other western countries (Kong et al. 2006). Therefore, many developing countries tend to follow the UNCTAD definition rather than that of the DCMS, because they want to use their culture to develop their creativity sector.

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The contemporary animation sector in Malaysia started at the same time as the development of Multimedia Super Corridor (MSC) began focusing on establishing a knowledge economy. The model for this project was based primarily on Silicon Valley (in the US), and projects in Japan and South Korea. Local culture also plays a major role in this project, when policies from Silicon Valley, Japan and South Korea are not appropriate for local culture. Hence, the Malaysian government has introduced some culturally specific rules and regulations throughout the development of the MSC (see MSC 2010). This approach—known as cultural protection—is still applied by the Malaysian government today. For example, although the usage of Internet is not censored, there are certain sensitive issues relating to ethnicity and religion that are not encouraged. To foster national identity, Malaysian companies are compelled by the government to portray Malaysian multicultural and religious identity in their products and services (Mahamood 2001, 139). In order to gain government funding, many companies adhere to this guideline. Consequently, all early animated television series in the country have these influences.

However, many series tend to have similarities to popular animated series from developed countries such as Japan, and the US. This raises concerns among developing countries about a lack of firsthand creativity, which is replaced by a second level of creativity that imitates other products in the market (Keane 2004; 2007; 2010). For example, developing countries like China, Indonesia and Thailand are known for producing imitation products. However, since the progress of creativity sectors is hard to predict, it is important to keep track of market responses. Further, most developed countries began by imitating the culture, products and services of other countries, and creativity is arguably rooted in culture. For instance, one of the earliest German animators claimed her first animated film was inspired by traditional Indonesian and Malaysian shadow puppet shows (Citizendia 2011). The museum sector in Malaysia is directly involved in merging cultural assets with technology. With the new ICT era, the state government cultural institution of the Malacca Museum Corporation (PERZIM) is transforming their role to become a modern museum institution. Modern applications involving IT and innovation are being adopted by all museums under the management of PERZIM, although newly established museums such as Malacca Maritime Museum have more modern applications and facilities compared to their old traditional museums.

However, the museum sector is moving at a slow pace in Malaysia, and lags behind museums in developed countries. Although, the creative sector in Malaysia has just been established, its growth is faster than the museum sector. Innovation and the application of modern technology are implemented at a minimum level by most Malaysian museums. Currently Department Museums of Malaysia is administered by MICC, which already has too many responsibilities, 137 including in some aspects of content industry such as film, drama, Internet, and television production. This limits the budget that MICC can allocate to each sector under the ministry. Consequently, the museum sector in Malaysia has hardly been mentioned by its own ministry, and receives little coverage by the local media. The development of the creative industries in Malaysia makes the position of museum sector more complicated to place, as it is at an intersection between the creative industries and the cultural sector.

Cultural history and cultural tourism

Malaysia’s strengths include a rich history and natural resources. Since the eighth-century, the Northern state of Malaysia, Kedah, and Perak, were administered by the early ancient Hindu government, and their influence can still be seen today. Apart from the Hindu influence, Malaysia was also shaped by Siamese (Thailand), Portuguese, Dutch, English and Japanese colonisation. The country has thirteen states within two federal territories, and each state has its own culture, and sometimes accents. Governed by a constitutional monarchy, Malaysian politics are unique, with the “Yang di-Pertuan Agong” as a King and head of the country has the obligation to act in accordance with government advice (see Heufers 2002). The King is elected by nine Malay sultans and four governors, and rotated every four years during the “Conference of Rulers”. Malaysia’s multiethnic culture and religion also contribute to the country’s unique status. All of these factors attract significant numbers of international investors and tourists every year, but Malaysia’s strength also can be their weaknesses.

Malaysia’s modern history involved conflict and bloodshed. In the wake of the Second World War, during the transition from Japanese and British rule, Malaya was ruled by the Communist Party of Malaya (CPM) for three months. After the return of British to Malaya, CPM was disbanded, but remained active by hiding in the jungle until 1989, and engaging in guerrilla attacks against the ruling government. The majority of CPM members were Chinese and led by Ching Peng, they killed many Malay villagers, while the Chinese community helped the CPM with information and food (History of War 2011). This has engendered suspicion between the Malays and the Chinese communities, which culminated in race riots in 1969. Since then, the Malaysian government has concentrating on building unity between their ethnic groups, and is always promoting the country’s multiethnic and religion image to the world, a tactic that has been particularly successful for the tourism industry.

Nevertheless, Malaysia’s tourism campaign sometimes raises heated debate with her neighbours, particularly Indonesia and Singapore. In 2010, a series of disputes over traditional dance—tarian pendet originated in Bali—were raised by small group of Indonesians, and 138 consequently inflamed by the Indonesian media. After a series of demonstrations in front of the Malaysian Embassy in Indonesia, there were violent confrontations with Malaysians expatriates in Indonesia. Both governments met to discuss a solution, but even after the issue was settled, UNESCO’s 2009 announcement that Indonesian batik was part of the Intangible Cultural Heritage of Humanity infuriated Malaysian batik producers. These incidents prompted the public to ask the government to start patenting Malaysian cultural items such as food and dances, which has caused friction with her other neighbour, Singapore. Regardless, Malaysia still promotes their cultural uniqueness to the world. Conflict with neighbours will not change their strategy to use culture in promoting the country.

The significant similarity between Singapore and Malaysia culture is unavoidable, since Singapore was once part of Malaysia. Elsewhere, the majority of Malays—particularly in the southern part of the Malaysian peninsular—originate from Indonesia. The debate on these issues will never cease. Indonesians accusations of cultural plagiarism by Malaysia should not be an issue at all. Every country or community has copied other cultures ever since human existed in this world. Thus, culture is not exclusive to one community, and Malaysia is not the only country to face this problem with her neighbours. For instance, China, Japan, and South Korea each claim that Confucius originated from their country. The dispute over cultural similarities is hard to resolve. Hence, Malaysian government is actively looking for potential new markets and a unique national image. One of these new markets is the Muslim market.

The tourism industry has become the second major income for Malaysia since the mid-1990s. Malaysia tourism campaigns use the country’s culture to attract domestic and international tourists to visit, and Malaysia maintains its position in the top 20 most visited countries in the world (WTO 2010). The country has the right combination of elements to attract tourists. Not only are there unique multicultural and religious aspects, but the country has a low cost of living, the majority of Malaysians can speak English, and world class infrastructure has contributed to significant tourist numbers. Malaysia’s multicultural status offers advantages in meeting the desires of tourists. The country is suitable for tourists from the West and East, as well as Muslims and non-Muslims. The government decision to promote Malaysia as a modern Muslim country with moderate rules and regulations (Kamin et al. 2008; Van der Westhueizen 2004) is a good move, since non-Muslims—particularly from the West—will not be afraid to visit Malaysia compared to other Muslim countries that have strict rules and regulations. Realising the significant potential of Muslim market, the government began to promote Malaysia as a tourist destination for Muslim tourists (Khalid 2009). Islamic imagery has been used to market Malaysia to Muslim markets. At the same time, Malaysia also

139 encourages other tourists to visit the country by using other images like friendly people, good food and a multiethnic culture.

The “Halal” market and cultural assets

Currently, the Malaysian government is aggressively developing Malaysia as a “halal hub” for the regional and global Muslim markets, which the Malaysian government began targeting after launching of Halal Hub Corporation in 2008. With their tagline “Halal for all”, this marketing campaign targets everyone, and involves a wide range of products and services. Malaysia’s strategic location means that it is easier for people from all around the world to visit for business or leisure. With its steady growth, the government’s move in promoting and developing Malaysia to become a world halal-hub is a smart choice. The markets estimated worth—US$150-billion (Fischer 2008)—and buying power strength of approximately US$1.9- billion worldwide (Shafie & Othman 2006) offers a stable platform for Malaysian products to enter the global market, particularly in Europe and North American. The substantial potential of the halal market, means that many non-Muslim countries such as Australia, China, Denmark, New Zealand and the UK are also starting to capture this market (ibid.) mostly by offering more halal food outlets, cosmetics, pharmaceuticals and hygiene products. Unfortunately, their products are limited and lack the professional skills that are available in Malaysia.

With little western understanding of halal, Malaysia has an advantage in tapping into this market. The country has all the right facilities and a clean image as a Muslim country to become successful in this market. For example, the halal accreditation license by Department of Islamic Department Malaysia (JAKIM) is recognised worldwide, and their certification and logo is highly respected and sought after by businesses worldwide (ibid.). Halal covers a wide range of products and services from food to non-food categories. Hence, Malaysian halal is not limited to only providing food and beverages, but also covers slaughtering, storage, display, preparation, hygiene and sanitation (Shafie & Othman 2006), Islamic finance and banking (refer Rosly & Abu Bakar 2003), fashion (Pak 2009), cosmetics for Muslims (Abd Aziz et al. 2010), and halal tourism. In offering a halal hub, Malaysia is also targeting halal tourism for Muslim and non-Muslim markets.

For more than a decade, the multicultural image has always been at the centre of Malaysia’s major marketing campaign. However, at the same time, globalisation has seen more countries—particularly developed countries—make similar claims. Now, the concept of a multicultural image has become a common selling point, particularly in large cities all over the 140 world. Recognising this, the Malaysian government is expanding their market beyond that image into health tourism, halal tourism, and establishing a second home in Malaysia. In order to attract Muslim tourists—particularly from the Middle East—the government has developed many Middle Eastern-friendly facilities. In Bukit Bintang, Kuala Lumpur there is a place called as “Ain Arabia” or Arab Street, which offers significant Arab influences in cafes, restaurants, and shopping complexes. This raises the issue of staged authenticity in the tourism industry (MacCanell 1979; McKercher & du Cros 2002, 12). Also, tourists might not truly experience Malaysian culture by visiting this type of place, which is the same as what they have in their own countries.

Apart from halal tourism, the Malaysian government has initiated many projects in order to become the market leader for halal products and services. Moreover, MDeC has collaborated with Al-Jazeera to produce the animated television series, Saladin, which tells the story of a famous Muslim war hero and his clash with the Crusaders in Jerusalem (see Fig. 7.1.4).

Figure 7.1.4: Saladin produced by MDeC and Al-Jazzera (Multimedia Development Corporation 2010)

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Although the term, halal is not directly suitable to be used for animation or content industry products, contemporary Malaysian animation products are suitable for Muslim audiences because the Malaysian culture that these products are portraying has Malay (Muslim) and traditional Asian influences. In 2010 and 2011, Malaysian local animation companies began to produce animated television series with Muslim characters for local and international viewers such as Bathutta, Boboiboy and Saladdin. Other Malaysian content products including books, magazine, and television productions are suitable for the Muslim market. With low violence and almost no obscenity, particularly in their animation, film and television products, Malaysia can enter this market easily. The first reality show on finding young Imam was produced by private television channel Astro, attracted international audiences, and created media frenzy in non-Muslim countries (AFP 2010). The second season of this program is scheduled for broadcast by mid-2011, with contestants from Brunei and Singapore. For the past five years, Malaysian Muslim fashion designers have been active in organising “The International Islamic Fashion Festival” in Kuala Lumpur. The annual event receives support from the government agencies and local authorities, and attracts many international designers. Organisers have collaborated with Indonesian fashion designers to host this event outside Kuala Lumpur.

However, there have been heated protests liberal-thinking Malaysian non-Muslim and Muslim creative talents who are reluctant to be associated with Muslim or Malay images. For instance, some of the non-Malay film-makers and audiences in the country question film needing to use Malay language (Hoo 2006), which is the country’s official language, in order to be designated a Malaysian film. This shows that some Malaysians are still confused about their own identity, and have strong feelings regarding their ancestors’ land and western influence. Malaysians normally speak their mother tongue instead of Malay, and watch the films and television programs from the land of their ancestors. Some may speak English and watch western films and television programs. These audiences tend to use other mediums to practise their creativity, and are prone to identify themselves as the “indie group”. Their end products are normally more controversial, lack Malaysian traditional culture, and are more global with significant western elements. Nonetheless, once they join the mainstream sector they tend to tone down their controversial ideas to fit into the main market, and to obtain government support for their projects. Not only are they following government rules and regulations for the sake of government funding, but the indie market is too small for them to survive long term. For example, FINAS statistics show that indie films released without FINAS approval had poor box office figures.

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Mainstream Malaysian filmmakers can accept the rules and regulation set by the government that are described by indie filmmakers as too strict and limiting creativity. Some commercial film activists accuse this group of filmmakers as overconfident with their own ability.

7.1.5: RQ4: How can Malaysia position itself in the region’s creative economy?

In order for Malaysia to position itself in the creative economy in the region, three imperatives are suggested, namely, 1) Local to glocal culture 2) Policy improvement 3) Diversification of target market.

1) Local to glocal culture

The impacts of globalisation are unfolding quickly, and at the forefront of this new phenomena are the developed countries, of which the majority are in the west. In recent years, developed countries from the East, including Japan, and South Korea, have broken this western monopoly, and now other countries in the East use these two countries as their model to develop their scientific, economic, and technological sectors. For example, in Malaysia the Look East Policy was launched in the 1980s to develop their culture and economy using the same models as Japan and South Korea. However, some of their policies are not suitable for Malaysia, and were amended by Malaysian policymakers to make them more suitable to local environments that are significantly influenced by Malay culture and Islam teaching. This practise—generally known as glocal culture—intermingles the global and the local (Robertson 1995, 26). Recognising the inevitability of globalisation—particularly in the face of the rapid growth of ICTs and Internet usage—Malaysia’s latest marketing strategy promotes glocal culture as their image in the global market. At the same time, much of the Malaysian public is keen to protect their multiethnic and religious traditional culture.

Cultural protection is still relevant in this era, particularly in a multiethnic and religious country like Malaysia. Developing countries can embrace advance technology and elements of culture from developed countries, but they also can be proud of their own culture. Not all elements of global culture and technology are good, and some of them conflict with Malaysian and Eastern traditional cultures. Some hazardous technology—like modified drugs and nuclear weapons— could cause great harm without proper management. In addition, local tradition is one of the unique strengths of Malaysia. Trying to slow or stop globalisation might have a negative impact on the country and discourage foreign investment. Thus, glocalisation is a more

143 appropriate tactic for sustainability in developing countries like Malaysia, in that it will help to save the local culture from extinction, and encourage the younger generation to become more appreciative of their traditions. Also, this will foster acceptance within the global community. Therefore, the content industry can be used by Malaysian government as an important medium to unite Malaysians and world community. Like regional and global sporting events, glocalisation can foster better understanding, and build good relationships among locals and the international community.

Glocalisation has already been adopted by the Malaysian content and cultural tourism industries to gain wider attention in their respective markets. Failing to do so might affect their chances of attracting more viewers and visitors on their products and services. For instance, most of Malaysian content products previously failed to gain minority ethnic audiences in Malaysia and outside the country. At one point in early-2000, the sector reached its lowest point, as most local animated production ceased production. Then, in 2005, LCP released Upin and Ipin, and with the series’ glocal features, became a significant phenomenon in Southeast Asia and other parts of Asia. Their products have become the most successful Malaysian animated series and 3D films in history using 100 per cent local creative talent. Hence, glocal elements might be the best answer to close the gap between what all the ethnic groups in Malaysia and global market needs and wants.

Glocalisation is more significant in the content industry than in the cultural tourism sector, particularly in the museum sector, which could be one of the reasons why Malaysian museums have lower attendance rates. The museum sector in the country should add more global features like the content products to their museums, but retain their local culture elements. More glocalised features might attract more interest from potential visitors. Although traditional culture is important, modern features—particularly the use of advanced technologies—can help to bring raise the museum sector to higher level. Thus, a combination of the two is necessary. This research found that glocalisation is the most suitable concept— especially considering current limitations in technology—to be adopted by developing countries that depending significantly on their cultural resources for economic growth, and to remain competitive. Since Robertson (1995) introduced the concept of glocalisation more than two decades ago, and only from the western perspective, further study on this concept in an Eastern context is warranted.

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Malaysia is the ideal country to a flagship for the concept of glocalisation, particularly in terms of the close similarities between countries in the Eastern region. The glocalisation models and policies of western countries may not be suitable for these eastern countries. Their experience with foreign colonisers from the East (Japan) and West (Portuguese, Dutch and British) between the sixteenth and nineteenth-centuries, means that there are many things could be learnt from Malaysia. Also, the formation of Malaya, and then Malaysia since the nineteenth- century involves a combination of Eastern and Western cultures. Many Eastern countries share a similar historical and colonial background like Malaysia, therefore Malaysia has a strong claim to become a leader in glocalisation issues. The country may lack creative and technological skills, but it has rich cultural experiences in relation to the unity of multiethnicity and religion from the East and the West. Also, their cultural attractions are being underrated significantly compared to developed countries. For example, when other countries may have only one king and queen, Malaysia has nine Sultans from nine states who are elected to become King on a rotational basis every four years. Their rich cultural background and experience with multiculturalism means that Malaysia could be the leader in glocalisation and globalisation matters.

While some may argue ethnic unity in Malaysia is superficial particularly the Malaysian opposition political parties, many agree that Malaysia is an example of a successful multicultural society (see Khalifah & Tahir 1997; Musa 2000; Van der Westhuizen 2004). Malaysia is among the first countries in the world to promote this image in the market, and is the first to experience globalisation. When most developed countries are promoting multiculturalism as one of the characteristics in globalisation in the market, Malaysia had long experienced that culture. The majority of Malaysians are happy living together side by side because this is part of their heritage. They have high tolerance with each other, and each culture is influenced by the other. Malaysian culture is unique because of these cultural combinations.

However, there are many issues that need to be addressed in order for Malaysia to become the glocal leader for developing countries. Firstly, the research culture in Malaysia needs to be upgraded significantly. More research work on the history of Malaysian culture and glocal features should be undertaken from a local perspective. At the moment, there is limited data about global and glocal topics in Malaysia, and most of the research has been done by westerners. With their understanding of their culture, local researchers are well-positioned to take an active role in examining this topic to gain a deeper understanding of the concepts. Secondly, Malaysian marketing campaigns and promotion lack creativity. With such cultural wealth, Malaysia should be able to attract significant numbers of domestic and international 145 tourists compared to developed countries with limited cultural resources. However, Malaysia still fails to attract these cultural tourists. A third problem is evident in the poor maintenance of tourist destinations by local authorities; some attractions have been left unattended, creating a waste of resources. Malaysia has a significant opportunity to become world leader in glocal and global issues, particularly relating to multiethnic and religious culture, but the government, private sector, and public should be more responsible in improving their infrastructure and attitude. Importantly, Malaysian researchers have yet to reach global standard. Now is the time for them to become glocal researchers and later global researchers in order to inform a better position in the regional and global creative economy.

Policy Improvement

Both new and traditional sectors are vital to the growth of Malaysian economy and society. As the CEO of MDeC (Ramlee 2011) observes, the government promotion of a content industry is not fun, but rather a serious business. He says the creative content industry is far bigger than the information technology industry, with a net global worth of US$2 trillion including animation, gaming and interactive comic books, special effects tailor-made for films, digital content for mobiles, and visual effects (Ramlee 2011). Malaysian exports in creative content in 2010 totalled RM114.48 million (approximately AUD 38 million) (Business Times 2007), a figure that is expected to increase in 2011 (Ramlee 2011). MDeC is collaborating with private companies to find something new and fresh for the export market. Culture as acknowledged as the most important element in the content and tourism industry, therefore Malaysian policymakers should strengthen their cultural policies. Although, these are more advanced compared to those for new sectors like the creative economy, some older policies need to be revised to be more relevant in this era. Many issues need attention and improvement from Malaysia policymakers, particularly in terms of a clearer definition of creativity.

Further, MSC project paid too much attention to tangible facilities rather than intangible aspects (Jarman & Chopra 2007, 197; Ramasamy et al. 2004, 1196), and the knowledge economy has been narrowly defined as relating to science and technology (ICT) (Evers 2003). As a result, the MSC faces many shortcomings in their early stages of development. Additionally, Jarman and Chopra (2007) argue Malaysia offers developed countries sources of cheap labour for their animation sector and content industry. To date, the novelty of creative sector development in Malaysia means that there limited guidelines for the market players. Many are still being formulated by the government, while some are irrelevant or need improvement and modification. In addition, the Malaysian government is accused regularly of not being transparent enough in its decision-making (Pandiyan 2009; Sindhu 2009), 146 particularly in terms of budget allocation and funding. Although funding is provided by the government, it is difficult to obtain. The industries claim that cronyism and favouritism are evident in the allocation and approval of funding and projects. Many demand a more transparent system. Additionally, approval of applications can take months. Sometimes, by the time a film script or television drama is approved, the production company has to make many changes to the script because of other commitments and weather changes. Also, those who obtain government funding have to follow the rules and regulations set out by the government, and thus face restriction of their creative freedom. The government has to be more transparent with their policies and less political in their decisions. All private companies should be given fair treatment when tendering for government megaprojects. Financial assistance should be given to companies that have unique products and services with comparative potential. Frequent dialogue and seminars should be conducted between the government agencies and those involved in the development of creative sectors in the country.

However, the government—with the help from private sector—is slowly overcoming these problems. The past three years have seen positive changes in Malaysian creative sectors. The MSC development is radically different from Silicon Valley and it will take longer time to achieve a similar success, but each country has different experience in any developments. Even different places within one country have different experiences in new developments. This does not guarantee success for the MSC, even if the development studiously follows the Silicon Valley model.

Unfortunately, the whole Malaysian cultural sector—and particularly the museums—are facing decreasing attendance rates. Although museums in Malacca and Sarawak still attract substantial numbers of visitors, they are face fierce competition from other modern tourism attractions. Innovation and new governmental directives should be imposed on Malaysian traditional cultural institutions, since Malaysians are accustomed to a top-down approach. The government should take the initiative to encourage cultural institutions like museums to play a more prominent role in their community. Malaysia has rich cultural natural resources that deserve more attention from policymakers and local authorities. Many heritage buildings and sites in the country are not given proper attention. This is also due to weaknesses on behalf of the Malaysian government in enforcing their policies. While they have the policies for certain areas, the processes of implementation are weak, and their marketing campaign strategies for cultural attractions are also poor. All of these issues need urgent attention because they affect economic growth. Malaysian ICT facilities—particularly in cultural institutions like museums— should be improved all over the country to make venues more attractive, and help maintain a

147 competitive edge. Currently, improvement of ICT applications only focused on certain sectors, and museums possess the least technologically advanced applications.

In terms of research study, government funding for the creative industries or social sciences is difficult to obtain compared to pure science research. This demoralises non-science researchers from doing quality research; consequently, Malaysian research into the content and tourism industries is neglected. The social sciences are as important as pure science because they study the diverse aspects of human behaviour that makes up a national community. The Malaysian government should allocate more funding for researchers in this area in order for them to achieve the national goals of Vision 2020.

Also, the Malaysian corporate sector should improve support for the growth of content and cultural tourism by providing funding or loans to market players, specifically SMEs. Currently, while some of them do so, the funding on offer is too small and only focuses on metropolitan businesses. Most remote and rural SMEs are ignored by the Malaysian corporate sector. The establishment of the Ministry of Rural and Regional Development caters to issues relating to Malaysian rural regions, but Malaysia’s corporate sector should play a more prominent role in assisting the government to reach rural communities. More financial aid and moral support are needed in the rural areas for their SMEs to survive. Once again, the government can offer incentives to those corporate companies who are willing to support rural SMEs.

I argue that the domains of creativity identified by Mitchell et al. (2003) should be increased from four to five domains. Beside scientific, technological, economic and cultural domains, there should another domain: policies creativity (table 7.1.5). Growth of creative sectors not only depends on these four domains; policymakers in developing countries also should be creative. Many authors (see Low 2001, 7; Yue 2006, 18) argue that the success of Singapore’s economy came through creative policymakers.

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Scientific

Creativity

Policy Creativity

Technological Creativity

Economic Cultural Creativity Creativity

Table 7.1.5: Domains of Creative Activity (Modified) (Mitchell, Inouye & Blumenthal 2003, 22)

Diversification of target market

Currently, Malaysia practises diversification by globally marketing their products and services. The Malaysian government is moving towards capturing the Muslim and non-Muslim markets, particularly through their content and cultural tourism sectors (Khalid 2009); in the global market, they are promoting multicultural products, while in Muslim markets, they are promoting a moderate Muslim image with their halal hub. At the same time, the Malaysian government is cautious not to push too many Muslim characteristics, and tries to balance the country’s image with other images, not only because Malaysia is a multiethnic and mixed religion country, but also because of “global Islamophobia”. This issue has prompted the Malaysian government to take extra precautions in their marketing campaigns. Hence, rather than referring to an “Islam” or “Muslim” hub, the government refers to a “halal hub” to market Malaysia globally. The government fears that by overly using referring to Islam and Muslim, they might cause a negative impact on their non-Muslim market. Malaysia’s marketing campaign depicts the country as a modern, multiethnic, Muslim country (Van der Westhuizen 2004, 1278). The government is using these images to building Malaysia’s national identity in all sectors. While there is domestic and international criticism about government policies that allegedly favour the Malay (or Bumiputra) ethnics and Islam (see Business Week 2003), the majority of

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Malaysians tend to follow governmental direction. As a result, the country has become a worldwide model for multiethnic and religious unity. As one of the popular developing countries, more attention is paid to every aspect in Malaysia. With pressures from within and outside, Malaysia has to take care with their internal affairs.

In 2010, over 200 local companies in Malaysia specifically focused on the area of animation, post-production, e-learning, mobile and creative content within the MSC area. These companies offer the services of more than 7,000 skilled and experienced professionals (Abu Bakar 2010). This strength and growth is propelling the content industry in Malaysia, particularly the animation sector, towards the global market. The strong support for the Malaysian content industry received from the local market over the past three years is encouraging more confidence in local companies to market their products globally. LCP plans to expand their market in Southeast Asia, India and Latin America; local companies like Handy Pro are eying Saudi Arabia (Abu Bakar 2009); and Igloo Digital Arts, Netcarbon and Shock3D are examining the international market (3D Magazine 2010, 20-21). These companies collaborate with international companies as partners on international projects. However, little Malaysian culture is evident in internationally-marketed animated products. Their scripts feature low violence scenes and are suitable for a family-oriented market, but their products have significant global features (refer Fig. 7.1.5).

Figure 7.1.5: Alamaya: Garden of Beautiful Creatures by Shock3D (Shock3D 2011) With cultural wealth, cheap labour, and positive support from the government, Malaysia has significant potential to become competitive in the regional creative economy. Her location in Southeast Asia allows a closer proximity to regional market leaders like Japan, Singapore, South Korea and Taiwan. This will contribute a spill-over of wealth from these countries to the 150

Malaysian economy. Also, the rapid economic growth of China, India and Vietnam will bring benefits to Malaysia, particularly in the creative sector. Hence, Malaysia should focus first on marketing their creativity regionally, where other countries share similar histories and cultures, and there is substantial potential in creative economic activity. The novelty of these sectors, and a high interest among governments in the region, means that Malaysia can become one of the market leaders. With her high regional profile, it is possible for Malaysia to establish a strong position in Asia’s creative economy. For instance, countries like Hong Kong, Saudi Arabia and Thailand seek Malaysia’s advice in developing their creative content sectors. Hence, Malaysian government should have good strategy and planning to improve their position in the creative economy in the region. Their policies also should be competitive with other governments.

7.2 Conclusion

These two case studies in Malaysia exemplify Keane’s (2010) argument about fitting new ideas and alternative visions to existing norms, values and patterns. Rather than creating a totally a new idea, the two case studies demonstrate the advantages of adapting other established concepts and models. This reduces the high risks encountered in competitive and unpredictable sectors because some creativity may take time to be accepted. Developed countries like Japan began with this approach, imitating elements in the creative products and services of established developed countries.

The two case studies found a mixture of Malaysian culture and ICT application as part of the unique identity used in marketing their products and services. Both LCP and PERZIM products and services have fostered income generation, job creation, and export earnings while promoting social inclusion, cultural diversity, and human development. Also, they embrace economic, cultural, and social aspects through interaction with technology. LCP animation and 3D products introduced aspects of Malaysian culture to the market through advanced technology. They are also involved in intellectual property (IP) development, an area that PERZIM might soon investigate. The transformation of PERZIM from traditional to modern models has attracted more visitors to their museums—particularly younger generation keen to learn about Malaysian history—and help to meet government tourism objectives. With inter-ministerial collaboration, the development of LCP and PERZIM is feasible in terms of the innovative elements and multidisciplinary responses that emerge from the combination of culture and technology and their products and services. At least three ministries are involved directly with the Malaysian animation or content industries—including the Ministry of 151

Information Communication and Culture (MICC); Ministry of International Trade and Industry (MITI); Ministry of Science, Technology and Innovation (MOSTI)—and cultural tourism— MICC, MITI and Ministry of Tourism (MoTOUR). These all make contributions to the five major characteristics of creative economy as defined by UNCTAD (2008, 15) namely,

Unfortunately, these UNCTAD characteristics are too broad, and there is no assurance that the concept of a creative economy will be workable. This new concept needs more study to understand the challenges faced by developing countries like Malaysia. To some extent, there is a romantic perception about creative economy as the answer for economic transformation in developing countries (Keane 2007; 2010). UNCTAD special report on developing countries has become the major guideline for many policymakers to develop their creativity sectors. This report has become the champion for developing countries to compete fairly with the developed countries. However, the reality is far from perfect, particularly when many developing countries still struggle with other important issues like legal systems (Schultz & van Gelder 2008, 139) natural disasters. While they have rich cultural resources, developing countries still lack creative skills, funding, and technology. As a result, the markets for content and tourism are limited in the Asian region, with even less attention from other regions, particularly in the animation sector, which has not penetrated the American, African and European markets.

Despite this, Malaysia’s rich cultural resources offer significant potential for the content and tourism industries. This country can become a market leader in global and glocal issues. However, to reach this goal, there are many aspects that need to be addressed by the stakeholders. One major aspect involves policies, which need to be creative to suit global forces. Currently, Malaysia has sufficient technology and natural resources, but lack of creative policies. Policymakers need to produce creative policies in order for the country to become competitive globally. Malaysian has unique characteristics, and with their glocal features, has significant potential to become competitive through their creative sectors.

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8. FINAL REMARKS ON THE DEVELOPMENT OF MALAYSIA’S CREATIVE ECONOMY

The fundamental source of conflict in this new world will not be primarily ideological or primarily economic. The great divisions among humankind and the dominating source of conflict will be cultural. The clash of civilisations will dominate global politics. (Huntington 1993, 22)

8.1 Conclusion and Recommendations

The twenty-first century has seen ICT affect all aspects of human life, the contemporary global market is considerably competitive and complicated. Customers are more demanding and require fresh, new, and unique products and services. Traditional sectors, particularly the cultural sector, have to adapt to this transformation to remain competitive and relevant. Failing to do so may affect their chances to grow, and present the danger of extinction. Hence, this has made the word creativity popular, with ICT playing a significant role in creating and maintaining creative sectors. Many governments have confidently highlighted creative sectors at the centre of their economy reformation, but these sectors are substantially unpredictable and high risk, with low success rates in developing countries. In general, the idea and concept of creative industries—and now, creative economies—are not fully tested in developing economies and their resilience to global issues is unknown.

However, UNCTAD and many other commentators believe that the close link between culture and creative sectors means that the cultural wealth of developing nations offers substantial potential for developing their creative sectors. Developing countries in the Asian region are seen by most commentators to be the next economic powers, particularly in light of the rapid economic growth of China and India. With majority of the world’s population living in Asia, many scholars believed the twenty-first century will be the Asian region’s opportunity to become the new world superpower (refer Mahbubani 2008). However, ICT progress in this region lags behind that of developed countries. Recognising this, many developing countries government are developing and upgrading their ICT facilities. Mega projects such as China’s World Media Centre, UAE’s Dubai Internet City, Hong Kong’s Cyberport, and Malaysia’s MSC were established in the late-1990s and early-2000s to promote ICT development. These government projects attracted local and foreign investors, and have encouraged key economic transformation in other related projects, from content, creative, and entertainment industries, to the knowledge economy more broadly. With the combination of cultural wealth and ICT

153 rapid growth in developing countries today, UNCTAD and others recognise the potential of developing countries in generating their economy through these sectors. Thus the concept of the creative economy is seen as an appropriate option for developing countries to close their economic gap with developed countries.

UNCTAD’s broad definition of creative economy encourages developing countries to develop creative sectors that until now have been monopolised by developed countries. This caused debate among scholars because the creative sectors according to UNCTAD are becoming “diluted”. Regardless, many developing governments are following UNCTAD’s 2008 creative economy model. Malaysia is one of the developing countries that have supplemented this model with some local elements. Although there currently is no clear Malaysian definition and policy on this concept, both content (animation, film, content digital and television series) and cultural (arts, museums, and handicrafts) industries are identified as part of creative sectors (Abd Aziz, Amin & Isa 2010). The Malaysian Deputy-minister of MICC, Datuk Joseph Salang, states that the policy on Malaysia creative industries is expected to be ready by mid-2010 (Bernama 2010). Importantly, the development of these sectors is not new in Malaysia, being initiated more than a decade ago. However, in Malaysia the general public is not familiar with the term of the new repackaged concept of the creative economy. Many are more familiar with cultural tourism than creative industries, not least the creative economy. This is because cultural tourism was been developed first in Malaysia followed by creative industries, and more recently, the creative economy. The creative economy has an encouraging future in Malaysia, since the country has many traditional cultural resources. However, the challenges also are significant, since competition from other countries, particularly Malaysia’s neighbours, is fierce.

The first of three sections in this chapter offers conclusions about the development of Malaysia’s creative economy within the wider context of the global creative economy. The next section provides recommendations, before this study’s limitations are discussed in the third section.

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8.2 Creative Economy Development in Malaysia

All four research questions of this project have been addressed in the previous chapter. Culture plays an important role in the development of Malaysia’s creative economy. Also, government policymakers and two organisations involved in this research acknowledge by the importance of ICT, as its involvement in the creative economy strengthens their products and services to becoming more competitive. Malaysia’s cultural resources are her major strength, and aspects of ICT have been used to support cultural institutions like museums in expanding to the next level. Recognising the mixture of global and local—or glocal—Malaysia is now attracting global market attention by marketing a glocal identity to build a better position in the region and worldwide.

However, the two case studies demonstrate that policymakers should refine their policies in order for both creative and cultural sectors to grow in the country. While Malaysia has rich natural and cultural resources, their policies in this area are weak and not innovative enough to compete with developed countries. Malaysia undoubtedly has all of the right elements to become a global market leader, particularly in ethnic unity, provided they can improve their policies. By being more imaginative with their policies, the government can move their economy to the next level. The development of tangible and intangible ICT facilities should also be improved and applied nationally across the cultural sector. Also, policies in creative sectors remain unclear. Malaysian government and private sector have failed significantly in allocating resources in remote and rural areas, instead allocating the bulk of funding and infrastructure to metropolitan regions. Despite forming a special ministry to concentrate on remote and rural areas, enforcement and implementation of policies are significantly weak. Consequently, the Malaysian cultural tourism sector lags behind ICT-related fields like the creative sector. Immediate measures should be implemented by the policymakers and stakeholders in this matter because cultural tourism and the creative economy are important for the development of the country. The government should strengthen their cultural policies and produce clearer policies for creative sectors. This will raise Malaysia to a better regional and global position.

Many contemporary producers acknowledge the importance of ICT in assisting them to provide the products and services required by the market. Government, non-profit organisational bodies, and traditional institutions are also applying ICT in day-to-day administration, and in offering their products and services. Many cultural producers and services use ICT to cater to the market demand, especially in attracting younger generations. 155

Although, the demand for traditional culture is strong, cultural producers applying ICT to their products and services are gaining more attention from the market. At the same time, culture plays an important part in ICT development. A strong cultural background will help individuals to become more imaginative. Therefore, culture and modern elements like ICT are necessary in any products and services that aim to remain competitive in a modern market.

LCP and PERZIM are strong industry examples of how culture and ICT have been used to make their products and services more competitive in the market. Although there are many potential improvements still to be implemented, these two organisations are the market leaders in animation and museum sector in Malaysia and the surrounding region. Other organisations in Malaysia and developing countries can use them as a role model to create and implement more innovative ideas, in order to be different and unique in the market.

The cultural and creative industries need each other to make their products and services competitive and sustainable. Without creativity, culture may face the possibility of extinction, while individual creativity normally depends substantially on cultural background. The combination of these two elements provides the best experience and satisfaction for customers. Malaysia is rich enough in both elements to become competitive in creative economy sectors, but there are many aspects of these sectors that need further study.

8.2.1 Cultural tourism in Malaysia

Over the last two decades, cultural tourism has become the most important tourism activity in Malaysia. The visitor experience is the most significant element in cultural tourism sector due to the intangible nature of the products and services. While the term, experience industries is employed by some authors when describing the cultural tourism sector, cultural tourism is more extensively utilised in Malaysia, and therefore is the preferred term for this research. Two Malaysian cities hold the title of UNESCO World Cultural and Heritage site—Malacca and George Town—and two parks designated UNESCO World Heritage Nature sites—Sabah Kinabalu Park and Sarawak Niah Cave. The Malaysian tourism industry heavily depends on their rich multiethnic and religious culture since they gained their independence from the British in 1957.

But Malaysia’s multiethnicity and religion may also be threatened if careful measures are not implemented in regards to delicate issues set in play by extremists and some western powers. Violent racial tension already has occurred in Malaysia in 1961, and the government is taking all measures to prevent a reoccurrence. Recently, some desperate politicians have used

156 ethnic and religion issues to increase their popularity, and to gain global attention and sympathy. As a result, some western powers are pressuring Malaysia to govern according to western standards, which shows that some individuals and countries question Malaysia’s status as a democracy. They endeavour to impose their own order on developing countries, and believe that western democracy can work in all countries, which fail to acknowledge what has happened in China, Iraq, and Russia. This has made engendered anti-western sentiment in many developing countries.

This strong anti-western attitude has swept through most Muslim countries. The image of the west has been tarnished among the Muslim countries, particularly after the invasions of Afghanistan and Iraq. Prior to these invasions, other incidents around the world had made Muslim countries sceptical about the west, whose constant involvement in the internal issues of other countries has made the developing countries become more protective. Global culture or western (“Americanised”) culture is not welcomed by many governments in Asia, including China, India, Malaysia, and Singapore, who initially resisted globalisation. However, they soon realised globalisation is inevitable. Even when some of these countries try to censor popular global websites or implement strict controls, there are always ways where people can access to these websites. Censorship or strict controls in these countries prompt people to become more technologically creative. Therefore these countries use the different approach of blending global and local cultures into glocal culture.

The marriage between western and local culture have been applied by many governments in Asia, including Malaysia. Normally, these countries maintain close relationships to their former western colonisers. History shows that western countries colonised many countries by becoming involved with their internal affairs, before slowly invading them. Using this tactic, Britain colonised Malaysia (then known as Malaya), the Dutch colonised Indonesia, and France colonised Africa. Hence, numerous historical sites and artefacts in many countries in Asia and Africa have a background in western colonisation, which some people feel should not be promoted. These groups feel that promoting colonial history offers a favourable view of the colonisers. Therefore, any transformation of Malaysian cultural institutions requires care, sensitivity, and even creativity. While cultural tourism growth in Malaysia is soaring, the implementation of creativity in Malaysian museums is proceeding at a slow pace.

Any changes Malaysia’s museum sector take place through a time-consuming, complicated process involving several stages. The majority of these institutions are administered by the rules and regulations set by state or federal government agencies. Some rigid policies not only affect the attendance rates, but also create difficulty in implementing change. For example, 157

Kedah—the archaeology museum located in the oldest site in the country—is managed by the state government, while administration and overlapping ministerial issues have left the Merbok’s archaeological museum abandoned and unattended. Now, due to its poor condition, the museum cannot be opened to visitors (Kasiman 2010). Malaysian archaeologists are still finding new items on this site, which dates back to the eighth-century. This example highlights wasted Malaysian government resources that were invested substantially in developing the facilities and other infrastructure. Although the country has many tourism attraction products with significant potential to attract local and international tourists, their main weakness lies in poor administration and management of creativity. The museum sector in Malaysia needs continuous support from the government, private companies, and the public, and a major transformation to become competitive in the tourism industry. As Florida (2005) argues, creative industries need creative governments, creative leadership, and creative communities benefit a country’s socio-economic sector. This is what Malaysia market players, policymakers, and stakeholders fail to keep up.

Compared to the animation sector in Malaysia, the museum sector in Malaysia is moving at a slow pace, perhaps thirty years behind other developed countries like Canada, the US, and the UK. Only in the last decade have Malaysian museums shifted their roles to become modern government or privately-owned. They have begun to adopt some modern applications such as ICT applications, and introduce new activities to provide memorable experience to their visitors, particularly younger generations. The combination of traditional culture and ICT can probably satisfy all types of market, and will attract a significant number of visitors. To give an optimal maximum experience to visitors, and to make their products and services more tangible, the museum sector needs significant ICT support. As a cultural institution compared to other museums in Malaysia, PERZIM raised new and fresh ideas to attract tourists by combining traditional and ICT elements. Their museums now remain competitive with other tourism attractions in Malaysia and the region. Although they have close cultural similarities with other neighbours—including Brunei, Indonesia, and Singapore—PERZIM’s museums attract significant number of tourists from these countries, and consistently generate unique and different programs and activities. The Malacca state government is effective in using all of their resources and advantages.

As well as PERZIM’s proactive development in becoming modern museums, one of the main reasons for PERZIM museums to receive substantial number of visitors is due to their strategic location between Kuala Lumpur, Putrajaya, Kuala Lumpur International Airport and Singapore. Compared to the UNESCO World Heritage Site in Georgetown and the two

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UNESCO World Natural Sites in Sabah Kinabalu Park and Sarawak Niah Cave, little promotion was available because of their distance from Kuala Lumpur.

Despite this proximity, the substantial numbers of visitors to PERZIM’s museums face congestion and pollution during the peak times of weekends and public and school holidays. The city is becoming congested with people and traffic. Also, compared to MoV, the effect of PERZIM’s changes on their museums is considered minimal. Thus, a more substantial transformation is needed to ensure competitiveness and sustainability. New features such as souvenir shops, cafes and libraries should be considered, following the examples of museums in US. While there are several museums in Malaysia that have shops and cafes (for example, National Museum and Sarawak Museum), the number are insignificant. The Malaysian government has to be flexible and offer more autonomy to museum management to plan their direction, rather than follow strict rules and regulation from multiple government agencies. The current model limits their creativity in expanding, and to make the best decisions for their museums, particularly when these museums normally have to report to more than two stakeholders. The traditional management style of the museum needs to change to make the museums transform into efficient modern museums. While Malaysian museums have ample collections of artefacts, they lack imagination and creativity in comparison to the rest of the world.

8.2.2 Digital content sector in Malaysia

Since the late-1990s, creative industries have been regarded as the new economy model for most governments in Malaysia. Recently, however, the relevance of this concept has been called into question because of confusion surrounding the concept and its many definitions. In countries such as Australia, New Zealand, and the UK, the creative industries are defined differently, without including culture, particularly cultural tourism. With rapid changes in technology, and recent global trend in creative industries development, however, these countries have implemented major changes. More key players are started to include culture and cultural tourism in their creative industries definition over the past decade (refer to Cunningham 2002; Hartley 2005). There is even movement in UK to use the term creative tourism (see Roadhouse 2006; Smith 2007), which acknowledges that culture can play a major role in generating income, in particular by attracting international tourists. However, since developing their own creative industries, most developing countries like Malaysia consider culture and part of tourism activities as part of creative sectors. Developing countries supplement their own local cultural elements with creative industries adapted from models

159 produced by developed countries. Thus, the development issues that they now facing may be different to those faced by developed countries.

This is a competitive sector and products are easily to imitate. Although the first case study highlights claims that LPC is involved in creative industries through animation, franchising and merchandising, what they produce is not wholly original. This is secondary creativity because creatives had produced similar products in Malaysia as early as 1978 (Mahamood 2001, 131; Muthalib 2007). Nevertheless, animation products from Japan and the US are perhaps not entirely original, because their products are inspired by other sources. Ironically, among the earliest animated film—German animator, Lotte Reiniger’s The Adventures of Prince Achmed (1926)—was inspired by Indonesian and Malaysian shadow puppet plays (Citizendia 2011). The creation of purely original products is possibly unachievable, since creativity itself normally relates to culture. While Malaysian animation products may not be examples of first- class creativity as Keane (2010) argues, almost no product can fit into this category. This argument also applies to human culture where similarities can be seen from one community to the other.

There are always markets for traditional and modern products and services. In the music industry, the singers who sell millions of albums throughout the world are not necessarily those who have a good voice, but rather produce good songs crafted with the latest technology and marketed effectively. Singers like Lady Gaga and Justin Bieber are two examples of singers who may not have the best voice, but have managed to make a significant impact on the music industry. These singers are imaginative in using modern technology to produce their songs and to improve their voice. The same applies to films like Avatar, which had a huge impact on the global film market by using advanced technology. While not as effective in terms of acting and storytelling, these films have success with certain audiences, particularly younger generation that appreciate technological innovation.

Developed countries have advanced technological facilities compared to developing nations like Malaysia. One major problem Malaysia faces its Internet speed connection. Malaysia Today (2009) identifies the country as having one of the slowest internet speeds in the world, although in comparison to its regional neighbours, Malaysia’s position is fair. This problem has discouraged companies from Australia and the US from investing in Malaysia. In recognising this problem, the Malaysian government is looking seriously to upgrade the country’s Internet infrastructure. One step is to investigate options to rent a direct line of internet connection to Malaysia rather than stopping over in a number of countries (Azharuddin 2009). MDeC’s multiple roles include assisting government and private companies in producing with the best 160

ICT solutions, actively marketing Malaysian products and services to the world, and encouraging collaboration between local and international companies. MDeC brought LCP to several major world events, and help them build new networks with companies from China, and South Korea. MDeC also helped LCP market their animation series and 3D film to several countries around Asia. This strategy is not without issues however.

Malaysia’s multiethnic culture has seen the domination of Malay films provoke argument particularly by non-Malays about whether the industry is presenting the country fairly to the world (Hoo 2006). This issue must be addressed carefully by the government because of its sensitive nature. Other minorities in Malaysia like the Chinese and Indians already have options to watch Chinese or Indian films produced from China and India. Limited buying power in Malaysia and competition from Chinese and Indian films mean that it may not be cost effective for Malaysian Chinese and Indians to produce their own films. Also, there are many Malaysian Chinese and Indian producers producing television series for local television channels. The main concern in the event that the Malaysian film sector is controlled by minority ethnics—Malaysian Chinese or Indian—is whether the films will represent Malaysia faithfully. Therefore, Malaysia’s film and music sectors face a significant dilemma where their markets are small and segregated by the ethnic minorities. This creates difficulties for uniting the Malaysian people, and it is not surprising that even though they were born and raised in the country most Chinese and Indian in Malaysia cannot effectively speak Malay. Some of Malaysian people are having identity crisis, and consequently opt for the comfort of western culture.

The question of national identity arose in Malaysian animation because of the government’s directive and public opinion that local cartoons should be of high quality and contain eastern cultural values, mainly to counter the negative values contained in foreign animation. In order to project didactic values and moral lessons, local animation producers have turned to traditional literature for inspiration, and have opted for non-violent visual presentations. The intention of many governmental policies, including the National Culture Policy, is to achieve racial harmony, therefore characters in Malaysian animation are often multiracial, representing the three major ethnic groups of Malays, Chinese and Indians. Apart from the depiction of rural scenes with Malay houses on stilts amid huge rice fields, urban landscapes that feature recognisable buildings and the LRT system in Kuala Lumpur act as symbols of a progressive country. But local companies who do not want to follow Malaysian government rules and regulations have to find their own financial resources. For example, Igloo Digital Arts—a pioneer of 3D animation technique and computer games in Malaysia—finance their projects through outsourcing. Their products have limited Malaysian cultural features since they are 161 catering more for the global market (Fig. 8.2.2). As a result, their name is less popular than LCP in Malaysia.

Figure 8.2.2: Computer game character by Igloo Digital Arts (Igloo Digital Arts 2011)

Even though promising local and international markets may help boost the production of domestic animation, many improvements must be made by local animators and producers if they are to succeed internationally. Apart from striving for technical finesse, they have to solve cultural dilemmas in the creation of characters and stories, for it is indeed a serious challenge to animate for an international market while maintaining a Malaysian identity, and still adhere to government directives. Popular Malaysian cartoonist-turned-animator, Khalid (2001, 154) faced cultural differences when his Kampung Boy characters was adapted to television, and when he collaborated with companies in the US and the Philippines. There is an obvious influence of traditional literature in Malaysian culture, as many animated television series and films were inspired by folktales and written literature (Mahmood 2001, 131). Malaysian animated cartoons also deal with contemporary subjects, incorporating renditions of daily life. On the other hand, the influence of foreign animation manifests itself through the use of the superhero characters and plots, as well as through the adaptation of formalistic features and characters. All of these factors contribute to the form and content of Malaysian animation, in the process lending it a Malaysian identity.

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8.2.3 Other important issues

This project also identified a number of other important issues relating to creative economy development in Malaysia.

Piracy and copyright problems

Piracy and copyright issues were mentioned briefly in earlier chapters. The UNCTAD Report (2008) identifies piracy and copyright as the significant problems faced by developing countries in terms of their creative economy. Piracy remains a major threat for many developing and developed countries. Copyright theft lost the US film industry USD$3-billion in 2002, and the rapid development of IT makes this problem even more challenging to control (Yar 2005). Figures from International Intellectual Property Alliance (IIPA) identify piracy levels exceeded more than 90 per cent in developing nations including China, Ukraine, Indonesia, Columbia, Kazakhstan, Lithuania, Pakistan, Kuwait, Romania and Bolivia, and industry stakeholders regard this phenomenon as an “epidemic”.

In Malaysia every year, key sectors such as music, film, and publication lost million of ringgit to piracy. The more popular the music, film or publication, the more piracy occurred for these products. Currently, the popular Malaysian animated film, Geng: Pengembaraan Bermula— which earned six million ringgit at the box office—is facing piracy problems. Pirate companies not only reproduced the DVD, but also copied the original packaging, including the hologram sticker from the Ministry of Domestic Trade, Co-operatives and Consumerism (MDTC). This sticker is supposed to difficult to forge, and serves as MDTC’s endorsement of an original product. This alone demonstrates that pirate companies themselves are becoming creative with IT. According to the Managing Director of LCP, the pirate version of the DVD is on sale even at authorised shops all around the country (Mahmud 2010).

This is not a new problem in Malaysia. The music sector in Malaysia has waged a long battle with piracy. While the Malaysia government has tried to improve their policy and enforcement on this issue, piracy is still the major challenge for the country. Joint efforts by the local enforcement authorities, including the police force, MDTC and customs are occasionally conducted, and in 2008, Malaysia joined WIPO to protect the sectors directly involved in IP products and services to strengthen their creative industries. But the subjectivity and intangible nature of creative economy products and services mean that it is hard to control copyright and patenting, and to register IP. This problem also relates to the weaknesses of implementation and enforcement by Malaysian local authority. 163

Implementation and Enforcement weaknesses

The local authorities such as the police and customs play a significant role in enforcing government policies. At the same time, private companies must also work together with the government to smooth implementation and enforcement. The public can play an active role too particularly in reporting any misconduct, and not supporting the illegal activities. If the government, private and public work together, they will become stronger in exchanging useful information, and will be able to stop the crime from happening. The Malaysian government faced criticism for not being transparent enough with their decisions, particularly in the tendering process for granting megaprojects to private companies. In addition, government staff members are accused regularly by the public of being passive and unmotivated. However, this stigma is slowly changing as improvements in ICT are implemented in Malaysia. Major transformation has been apparent in government services over the past five years.

Today, Malaysia has many consumer NGOs protecting local consumers, and many associations exist to protect manufacturers and producers. Since the 1990s, policy implementation and enforcement by Malaysian government agencies has improved. ICT growth has made policies much easier to implement and enforce, and the government occasionally offers incentives and salary increments to government staff and enforcement agencies to discourage misconduct like accepting bribes to improve their lifestyle.

Lack of funding

Funding is one of the major problems of developing nations in developing new sectors like creative economy. Developing nations face a dilemma about whether to promote their creative activities or other important traditional sectors such as agriculture and manufacturing for the country’s socio-economy growth. Therefore, most developing countries use cultural tourism as an important resource to develop their creative economy, which requires less financial assistance, since culture is an existing natural resource, whereas other sectors may need more funding to build facilities and infrastructures. The Malaysian government has allocated significant funds for the development of creative sectors, but compared to developed countries the facilities and infrastructure of the creative economy in Malaysia still need major improvement.

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Censorship

Most Malaysians value their culture, especially in the face of western and globalisation influences. This is evident in the significant response from audiences of music and television programs with strong Islamic influences. All local and imported content products marketed in Malaysia need to pass the censorship board. Obscene lyrics, materials, and scenes are censored or banned in Malaysian market. For example, almost daily the local newspapers feature stories about technological advancements, and the government's efforts to make Malaysia an international centre for multimedia development and distribution. Yet they are also filled with editorial comments and quotations from government officials cautioning the populace about the importance of safeguarding the moral values of their society. While the Malaysian censorship board is less strict than those in other Muslim countries like Iran, Oman and Saudi Arabia, products from Iran facing even stricter rules and regulation at home are more successful in the market compared to those subject to Malaysia’s less strict rules and regulation. The rapid development of global ICT means that censorship can only applied on electronic and printing media, while content on the Internet is rarely subject to censorship.

Some non-Muslim (and some Muslim) creatives in Malaysia feel this censorship rules and regulation impede their creativity. While Malaysian culture openly recognises their major religions—Muslim, Buddhist, and Hindu—and ethnic divisions—Malay, Chinese and Indian— some with liberal beliefs may find it hard to practise their creativity. This group of people regularly criticise the strict rules and regulation imposed by the Malaysian government. Some practise their creativity outside Malaysia, while others protest using other means including Youtube and Facebook.

8.2.4 Malaysia’s position in the global creative economy

While developed country definitions of creative economy may differ from those of developing nations, all agree that culture and creative industries are significant elements within the concept of a creative economy. The Malaysian definition of a creative economy is similar to other developing countries, which use the UNCTAD definition, and also with some countries in Europe, while Australia, New Zealand lean towards the definition of creative industries in used in the UK. Applying the model of domains of creativity described by Mitchell et al. (2003), Malaysia’s creative economy development since establishing the MSC has involved all four domains. This is based on Malaysia’s recognition that to become a developed country they have to develop their creative sectors like other developed countries.

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This research argues that Malaysia and other developing countries do not have to follow the developed countries model, because what works for one country may not work for another. However, the models used by developed countries can influence the creation of new models in developing countries. Hence, when most developing countries included cultural tourism and heritage as part of their creative economy, they are playing to their advantages and strengths. While some scholars may not be happy with the inclusion of cultural tourism and heritage in creative economy sectors, it is not entirely wrong to do so. With more sectors promoting multidiscipline research and work, this inclusion is timely. However, there is little research on the connection between tourism, ICT, and the creative sector. In tourism alone in 2009, a special issue of the top-tiered journal, Tourism Analysis focused on the close link between tourism and technology. This idea was taken from the first Annual Conference of the Travel and Tourism Research Association (TTRA) in Europe, and was based on the realisation that tourism and technology constitute the two main economic drivers in Europe (Dimanche & Jolly 2009). The journal published six papers that examined the close relationship between mobility, technology, and tourism from their unique perspectives.

Moreover, the key player in the global creative economy is the private sector, which is primarily comprised of SMEs. The 2001 World Bank Review establishes the significant role of SMEs as a core element in fostering economic growth, employment, and poverty alleviation. In developed and developing countries, the SMEs sector is identified as the foundation for economic growth. Although there are differences within SMEs groupings in the literature, there are many similarities: these companies are considered flexible enterprises (Levy & Powell 1998) they are generally constrained by availability of resources (Fariselli, Oughton, Picory & Sugden 1999; Swartz & Boaden 1997); and they have less access to technological information than larger organisations (De Berranger & Meldrum 2000). There are many global problems identified with SMEs companies, hence, they tend to harbour a distrust of government initiatives (Harrer, Weijo & Hatrup 1988; Bannock 1992; Yap, Thong & Raman 1994). All of these problems happen because of unclear aims and objectives, lack of support, poor value for money, and lack of understanding of the nature of, and constraints experienced by small businesses (De Berranger & Meldrum 2000).

Malaysia SMEs face similar problems, and the government assists them by giving financial, training and other support. In creative sectors, the government established the MDeC, among others, to look after the SMEs companies involved in creative sectors. Over the past fifteen years, the growth of SMEs companies involved in content products and services increased significantly. Some began by imitating popular content products like animation and anime from Japan, and film and music from the US; this is a global rather than local phenomenon. For 166 example, rap music now belongs not only to African-Americans; almost all countries in the world have their own rap groups. Youtube offers evidence of rap groups in Palestine, China, and India. The creative economies of developed countries in the region—including the creatively advanced Japan, Singapore, South Korea and Taiwan—also began through imitation. Globalisation now means that one culture does not exclusively belong to one ethic group. Mixed culture can be seen and felt all over the world, especially in large metropolises like Dubai, Jakarta, London, Kuala Lumpur, New York, Singapore, and Tokyo.

8.3 Recommendations

From the discussion made in this chapter, I would like to make recommendations relating to this topic. These recommendations hopefully will be able to assist the stakeholders and other researchers to strengthen and have better understanding on the concept of creative economy, and inspire future research relating to this under-researched topic.

Government and Private sectors

The Malaysian government should become proactive in supporting the development of the creative economy by producing policies that are more transparent and less political. Continuous support should be given for the development of this new sector and more dialogue, seminars, and workshop are needed to raise public awareness. Proper training and exposure for government and private staff will benefit this sector.

Rather than work independently, private and government organisations need to collaborate in developing this sector to achieve their plans at a faster pace. The stronger their connection is, the faster this new sector will grow. To evolve effectively, a newly implemented concept like the creative economy requires a close relationship between market players and government stakeholders. This closeness allows each party to understand each other better, and they can plan the future of the creative economy together, and devise a quality product and service that is attractive to the local market. The full support of locals contributes to a strong foundation for the products to go international. However, local products must be competitive and at par with other products in the market.

Thus, it is important for Malaysia to have highly qualified human resources. At the moment, the country is having difficulties to retaining their professionals because of the competitive

167 global job market, particularly in developed countries. The other main reason Malaysia tends to lose its professional human resource is because of strict citizenship rules and regulation. Unlike countries like Australia, India, and the UK, Malaysia does not allow their citizen to have dual citizenship. Thus, some Malaysian professionals—particularly those who have successful career outside the country—have relinquished their Malaysian citizenship. Meanwhile, professionals from Australia, India and the UK maintain their dual citizenship and serve both countries. This creates a drain of highly skilled human resources from Malaysia to other countries. Therefore, the government needs to re-examine its policies on this matter.

Public

Malaysians often can be the hardest people to predict and satisfy. They are known to be critical of local products, but tend to have high respect for international products, particularly from the developed countries (refer Muthalib 2007). Local animation still lacks an adult audience, as the medium is still seen as catering only to children. Animation for adults is still far odd, as the general consensus is that Malaysian animators are still not capable of producing acceptable films. Even with the expertise, there currently is no local market (Khalid 2001; Mahamood 2001; Muthalib 2007). Thus, the Malaysian public needs to show faith in, and support their local products and services. Like Indonesian and Indian viewers, Malaysians should be more patriotic and embrace their local products and services. Public support will help this sector to expand significantly. Malaysian trust of local products will help other markets to trust the products.

8.3.1 Recommendations for future researchers

The novelty and lack of understanding of the Malaysian creative economy exposes many areas that still need further attention. Future researchers should examine issues surrounding this topic, perhaps from different points of view, and consulting different people, including policymakers and the public. This will allow more comparisons and can provide useful knowledge in the literature. Different methodology approaches should also be applied to obtain robust data relating to this topic, and the mixed method is highly recommended in order to gain quality research findings. Future research could also work to construct definitive models and theory regarding the growth of creative economies in developing countries.

Since cultures play a significant role in Malaysia, solid research into Malaysian culture and its relation to creative sectors—for example, the acquisition of technical skills from the west and the region; a clear vision of the messages conveyed in content; and the awareness that

168 animation, like cartooning, is a legitimate artistic field—needs to be approached seriously. Feedback from viewers and visitors should also be studied to understand the market better. Established models or theories from other fields like economy, marketing, and management may be tested in order to build a strong theory for the concept of the creative economy.

8.4 Study Limitations

Time constraints dictated that this study could only conduct two case studies in Malaysia. Apart from personal interviews, other research methods were not possible because they require longer periods of data collection. Comparison between the two organisations in Malaysia with two case studies in Hong Kong and Canada could only be done through electronic data collection, therefore secondary data was examined. Also, the numbers of respondents were small, and only organisation staff members were interviewed. Hence, the opinions visitors, viewers, and other stakeholders were not included in this study. Future research should include these groups, and other local competitors, including George Town, Penang and Sarawak Museum, and other international museums to gather more reliable and robust data.

Thus the major problem in doing this topic was obtaining reliable data, particularly about the Malaysian animation and cultural tourism sectors. Despite this, the case study approach in this research obtained a rich data set from the organisations involved. Data relating to this topic is significantly limited in the literature, and to date there are no strong academic discourses.

The limited data from these case studies restricted this project’s ability to generalise about wider trends or build new theories. The findings of this thesis are based on the experience of two organisations, and offer greater knowledge about the development of a creative economy in Malaysia. This study will add to the significant gap existing in regards to this topic in Malaysia and other developing countries. As one of the first research studies examining the issues of the creative economy in Malaysia, this research makes a significant contribution to an emerging field of academic enquiry.

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Appendix 1: Lat: The Kampung Boy

Figure: The Kampung Boy (Khalid 1979)

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Appendix 2: Malaysia Content Industry (Entertainment) Production

Malaysia Local Film Production Statistics 2003-2010 Year No. of Films Gross Ticket Collection Production Coast (RM/million) (RM/million) 2003 16 23.4 23.78 2004 22 27.2 43.24 2005 23 26.7 29.77 2006 28 29.7 38.89 2007 28 30.3 37.23 2008 28 45.9 N/A 2009 27 50.8 40.51 2010 38 75.9 46.61 (National Film Development Corporation Malaysia [FINAS] 2011)

Malaysia Local Commercial Advertisement Production Statistics 2004-2010 Year Total of Producers Production Coast (RM/million) 2004 89 1,401.00 2005 97 1,560.00 2006 N/A 1,547.00 2007 114 1,677.00 2008 124 1,558.00 2009 117 1,723.00 2010 144 1,801.00 (FINAS 2011)

Malaysia Local Drama Production Statistics 2003-2010 Year Total of Producers Total of Title Production Coast (RM/million) 2003 62 80 25.56 2004 76 137 40.02 2005 88 196 40.21 2006 78 160 45.35 2007 81 182 54.72 2008 91 212 69.98 2009 95 213 74.05 2010 118 269 79.55 (FINAS 2011) 190

Appendix 3: Interview questions for Les’Copaque Production Sdn. Bhd. (LCP) and Malacca Museum Corporation (PERZIM)

Question to be asked to Les’Copaque Production (LCP) Sdn. Bhd. A. Questions for LCP staff.

1. Please introduce yourself and your position at LCP. 2. How long have you been working with LCP? 3. Did you regularly contribute creative ideas to the overall Cyberjaya brand concept (world’s intelligent city)? 4. What kind of experienced is best related to the creative process here; (prompt, for example: face-to-face conversation and informal meetings, email, brainstorming, skills upgrading courses, seminars with international speakers)? 5. Does your job entail a high degree of creative interaction with colleagues? 6. Is there a strong sense of belonging and identification with the vision of Cyberjaya? 7. Does the reputation of Cyberjaya’s image will have benefits for your own work? 8. Does Cyberjaya have institutional bodies that provide mentoring and market development advice? 9. To what extent is Malaysian culture being adapted by you in doing your work in this company? 10. What’s your future hope for creative sectors in Malaysia?

Question to be asked Malacca Museum Corporation B. With museums’ staff.

1. Please introduce yourself and your position at this museum. 2. How long have you been working with this museum or PERZIM? 3. Did you regularly contribute ideas to the overall brand concept of this museum? 4. What kind of experienced is best related to the experience process here; (prompt, for example: face-to-face conversation and informal meetings, email, brainstorming, skills upgrading courses, seminars with international speakers)? 5. Does your job entail a high degree or creative interaction with colleagues? 6. Is there a strong sense of belonging and identification with the vision of the museum? 7. Does the success of the museum or PERZIM image have benefits for your own work? 8. To what extent is Malaysian culture being adapted by you in doing your work in this company? 9. What’s your future hope for museum sector in Malaysia?

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Appendix 4: Interview questions for Les’Copaque Production Sdn. Bhd. (LCP) and Malacca Museum Corporation (PERZIM) Management

Question to be asked to Les’Copaque Production (LCP) Sdn. Bhd. A. Questions for LCP decision maker.

1. Why does LCP operating in Shah Alam and not in Cyberjaya the capital city for MSC? 2. What are the advantages of locating in Shah Alam compared to Cyberjaya? 3. What are the disadvantages of locating in Shah Alam compared to Cyberjaya? 4. Can you discuss the more organic environment in Shah Alam compared to the more planned environment of Cyberjaya? RQ 2 5. Can you discuss your experience in establishing contacts and in sharing knowledge among the organisations? RQ 2&3 6. Can you give your opinion on the attitude and values of those working in Cyberjaya city towards the whole development? RQ 2 7. How does Cyberjaya compete with other countries in the Asian region in positioning herself? RQ 3 8. Has Shah Alam meet the expectations from your company? 9. To what extent is Malaysian culture being utilised in your company’s products and services? RQ 1 10. Does the idea of creative industries mean much to people working here? RQ 2

Question to be asked Malacca Museum Corporation (PERZIM) B. Questions for PERZIM’s curator.

1. Please explain about the formation of this museum and the core products and services offered to visitors. 2. As the curator, are you fully autonomous or do you have to consult with government officials? 3. Why did this museum decide to add the new feature to the museum (Sleepover @ Museum)? 4. How is the response from the visitors so far? 5. How is this museum trying to position itself; e.g. is it outward looking, progressive, does it look to be more interactive in the future? 6. What are the creative and technology elements this museum plans to introduce? 7. What do you think of the state of ‘museum culture’ in Malaysia? 8. What are the future plans in combining culture, creativity and technology to better market this museum? 9. Does the museum or PERZIM integrate well with the cultural tourism sector; if so how?

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Appendix 5: The “Sleepover @ the Museum Programme” at Malacca Maritime Museum Newspaper Article

Friday January 30, 2009 Chance to sleep in replica of Portuguese galleon

By ALLISON LAI

MALACCA: The Malacca Museums Corporation (Perzim) has come up with a novel way of promoting its Maritime Museum as a tourist attraction by offering a sleepover for visitors. Perzim general manager Khamis Abas said the Sleepover@The Museum package would be launched in mid February. “It offers a chance to spend a night in the replica of the famous 15th Century Portuguese galleon Flo De Lama or Flower of the Sea at the museum in Jalan Merdeka, next to Malacca River,” he said when met during the launch of a trial run of the package recently.

Figure: Night adventure: Participants in the Sleepover@ the Museum package posing in the galleon at the Maritime Museum in Malacca recently.

Perzim will promote the package together with Naza Hotel Melaka and Malacca River and Coastal Development Corporation.

Between 20 and 40 people are targeted per day for the sleepover that begins before sunset with a cruise on Malacca River from Taman Rempah to Padang Nyiru.

The group will be taken on a guided river walk in the state’s core heritage zone before proceeding to the museum to spend the night.

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“They will also be given a tour of the maritime museum, a slide presentation and a question and answer session before going to bed at 11pm,” he said, adding that they would return to their hotels the following morning.

The idea was mooted recently and angled as an edutainment for students and families, he said.

“We wanted to try the 16th Century Dutch Stadhuys complex, but some suggested the ship as they thought the Stadhuys would be spooky,” he quipped.

Well-known tour guide Shaukani Abbas, 51, said the sleepover was an interesting way of introducing Malacca to visitors.

He said the response had been encouraging, especially from children accompanying their parents.

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Appendix 6: QUT Ethical Clearance Approval

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Appendix 7: Cyberjaya the Capital City for Malaysia MSC Project Map

Figure: Cyberjaya – the Capital City for Malaysia MSC Project Map (MSC 2009)

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Appendix 8: Cyberport the ICT city for Hong Kong

Figure: Cyberport the ICT city for Hong Kong (Cyberport 2010)

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Appendix 9: Les’Copaque Content Products – DVD and VCD Series

DVD/VCD Titles Year Title episode Esok Puasa (Fasting starts tomorrow) Dugaan (Obstacles) Upin & Ipin Vol. 1 2007 Nikmat (Advantages) Terawih (Tarawikh prayer) Esok Raya (Eid is tomorrow) Hari Raya (Eid ul fitr) Tadika (Kindergarten) Anak Bulan (Sighting of the moon) Upin & Ipin: Setahun 2008 Adat (Culture) Kemudian Vol. 2 Tamak (Greedy) Lailatul Qadr (Lailatul Qadr Night) Kisah & Tauladan (Good Behaviour) 2008 Sayang Kak Ros (Beloved Sister Ros) Ketupat (Ketupat – special dish during Eid celebration in Malaysia) Upin & Ipin: Setahun Zakat Fitrah (Zakat Fitrah – once a year donation for needy Kemudian Vol. 3 people) Malam Syahdu (Memorable Night) Pagi Raya (Eid Morning) Berkat (Blessed) Upin & Ipin dan Kawan- 2009 Air Kolah, Air Laut (Bhg 1&2) (Well Water, Sea Water – Part 1&2) Kawan Vol. 4 Berkebun (Bhg 1&2) (Gardening – Part 1&2) Upin & Ipin dan Kawan- 2009 Basikal Baru (Bhg 1&2) (New Bicycle – Part 1&2) Kawan Vol. 5 Gosok Jangan Tak Gosok (Bhg 1&2) (Keep on Caressing – Part 1&2) Upin & Ipin dan Kawan- 2009 Gosok Jangan Tak Gosok (Bhg 3) (Keep on Caressing – Part 3) Kawan Vol. 6 Kisah Dua Malam (Bhg 1&2) (The story of two nights – part 1&2) Kembara ke Pulau Harta Karun (Bhg 1,2,3) (The Adventure to Treasure Island – Part 1,2,3) (Upin and Ipin 2010)

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Appendix 10: PERZIM Museums Listing until 2011

STADTHUYS MUSEUMS COMPLEX  Historic and Ethnography Museum  Admiral Cheng Ho Gallery  Literature Museum  Democratic Government Museum  Governor Museum

MARITIME MUSEUMS COMPLEX  Maritime Museum Phase I  Maritime Museum Phase II  Malaysian Royal Navy Museum  Ex‐KD Sri Terengganu Warship

OTHER MUSEUMS  Malacca Sultanate Palace  Malacca Islamic Museum  Malaysia Youth Museum  PERZIM Art Gallery  People Museum  Enduring Beauty Museum  Kites Gallery  Malacca Stamp Museum  World Historic Malay Museum

DISTRIC MUSEUM

 Aborigines Museum, Ayer Keroh  Museum of Custom and Ritual, Alor Gajah  Agricultural Museum, Jasin

PERZIM (2010)

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Appendix 11: Museum of Vancouver new vision and strategic plan for 2008-2011

Please refer website http://www.museumofvancouver.ca/overview.php

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Appendix 12: Film Tourism Impact on Popular Locations

Film or TV Series Location Impact on Visitor Numbers or Tourist Revenue

Braveheart Wallace Monument, Scotland 300% increase in visitors year after release Heartbeat Goathland, North Yorkshire, England Three times the number of normal visitors in 1991 Deliverance Rayburn County, Georgia 20,000 film tourists a year Gross revenues $2 to 3m Dances with Wolves Fort Hayes, Kansas 25% increase compared with 7% for previous 4 years Close Encounters of the Third Kind Devils Tower, Wyoming 75% increase in 1975 20% visit now because of the film Thelma and Louise Arches National Monument in Moab, Utah 19.1% increase in 1991 Field of Dreams Iowa 35,000 visits in 1991 Steady increase every year Dallas Southfork Ranch, Dallas 500,000 visitors per year The Lord of the Rings New Zealand 10% increase every year 1998 to 2003 from UK Steel Magnolias Louisiana 48% increase year after release Last of the Mohicans Chimney Rock Park, North Carolina 25% increase year after release The Fugitive Dillsboro, North Carolina 11% increase year after release Little Women Orchard House, Concord, Massachusetts 65% increase year after release Bull Durham Durham, North Carolina 25% increase in attendance year after release Harry Potter Various locations in U.K. All locations saw an increase of 50% or more Mission: Impossible 2 National parks in Sydney 200% increase in 2000 Gorillas in the Mist Rwanda 20% increase in 1998 Crocodile Dundee Australia 20.5% increase in U.S. visitors 1981 to 1988 The Beach Thailand 22% increase in youth market in 2000 All Creatures Great and Small Yorkshire Dales Generated £5m for Yorkshire Dales To the Manor Born Cricket St Thomas, Leisure Park, 37% increase between 1978 to 1980 England Middlemarch Stamford, Lincolnshire, England 27% increase in 1994 Four Weddings and a Funeral The Crown Hotel, Amersham, England Fully booked for at least 3 years Mrs. Brown Osborne House, Isle of Wight, U.K. 25% increase Notting Hill Kenwood House, England 10% increase in 1 month Saving Private Ryan Normandy, France 40% increase in American tourists Sense and Sensibility Saltram House, England 39% increase Pride and Prejudice Lyme Park in Cheshire, UK 150% increase in visitors Cheers Location in Boston $7m in unpaid promotional advertising each year Miami Vice Miami 150% increase in German visitors 1985 to 1988 Forrest Gump Savannah, Georgia 7% increase in tourism Troy Canakkale, Turkey 73% increase in tourism Captain Corelli’s Cephalonia Mandolin Greece 50% increase over 3 years (Riley & van Doren 1992; Tooke & Baker 1996; Grihault 2003; Croy & Walker 2003; Cousins & Anderek 1993; Busby, Brunt & Lund 2003; Riley, Baker, & van Doren 1998)

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Appendix 13: KRU Multilingual Epic Movie 2011: The Malay Chronicle: Bloodliners

Figure: KRU Multilingual Epic Movie 2011: The Malay Chronicle: Bloodliners (KRU 2010)

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Appendix 14: Number of Visitors to Malacca Museum Corporation (PERZIM) Museums for the Year 2000-2010

Year M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 Total 2000 105,032 96,407 3,004 33,691 232,687 6,677 Not open Not Not open Not open 477,538 open 2001 60,459 125,997 3,385 41,366 258,980 4,109 3,221 14,939 Not open Not open 512,456 (closed August- December) 2002 64,284 41,458 1,833 Closed 234,331 5,293 321 18,780 9,762 3,086 379,148 (reopen in (closed May) Jul-Dec) 2003 72,080 13,753 2,716 33,586 185,188 5,144 1,314 10,891 2,449 734 327,825 (until April) (until April) (until April) 2004 73,978 85,514 2,367 388,837 211,575 3,404 990 6,517 From 2004 From 2004 424,352 (M2+M9+M10) combine with M2 combine with M2 2005 75,968 93,898 2,059 27,950 219,407 2,472 783 7,705 M9=Chitty 431,584 (M2+M9+M10) Museum - 1,342 2006 82,394 89,754 825 42,213 226,824 1,198 711 8,182 766 M10=Stem and 455,544 (M2+M9+M10) (N/A Mar- DMDI Museum Sep) 3,077 (operating in July) 2007 82,394 89,754 825 42,213 226,824 1,198 711 8,182 766 3,077 455,940 (N/A Mar- Sep) 2008 92,277 110,046 2,313 33,383 158,811 611 3086 8,829 736 11,374 421,466 2009 95,134 105,396 2,899 34,005 308,859 630 1,556 9,752 752 20,415 579,398 2010 101,866 124,410 2,810 32,338 367,522 468 4,581 11,109 1,857 26,044 571,139 M1=Malacca Sultanate Palace; M2=Historical Museum; M3=Youth Museum; M4=People’s Museum; M5=Maritime Museum; M6=Indigenous People Museum; M7=Alor Gajah Museum; M8=Islamic Museum; M9=Governor Museum; M10=Democracy Leaders Museum (PERZIM 2010)

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