Negeri Sembilan

SPECIAL STUDY

MSC Malaysia 2.0 State ICT Blueprint : Negeri Sembilan

Roger Ling Devtar Singh Hailey Chan Victor Lim

Liew Siew Choon

03, Level 13, Menara HLA 3, Jalan Kia Peng 50450 Kuala Lumpur, Malaysia P.60.3.2163.3715 Malaysia Lumpur, Kuala 50450 Peng Kia Jalan 3, HLA Menara 13, 03, Level

- Suite 13 Suite

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

TABLE OF CONTENTS

Introduction & Background 1

Point of Departure: State ICT Blueprint – Negeri Sembilan 3 Overview ...... 3 Economic Landscape ...... 5 Negeri Sembilan Key Contributing Sectors ...... 5 Manufacturing ...... 5 Services...... 6 Agriculture ...... 8 Construction ...... 9 Mining ...... 9 Key Economic Targets ...... 10 ICT as a Strategic Pillar for Advancement ...... 12 Negeri Sembilan State ICT Situational Analysis ...... 13 ICT Blueprint Review ...... 13 Current ICT Environment ...... 15 Policies ...... 15 Key Strategic Policy 1: Increase overall ICT penetration especially in the eastern region. . 15 Strategic Policy 2: To increase the overall ICT competency level in Negeri Sembilan with the setting up of infrastructure such as smart schools in rural areas...... 16 Strategic Policy 3: Encourage the development of telecommunication access and reasonable internet access in rural areas ...... 17 Infrastructure ...... 17 Internet, PC & Cellular Penetration ...... 20 ICT Graduates, Workforce & Companies ...... 26 ICT Utilization in Key Segments ...... 30 Government ...... 30 Industry...... 35 Negeri Sembilan rolling up to Malaysia ...... 35 Society...... 40 Programs & Activities ...... 41 Summary of Key Findings & Issues for Negeri Sembilan ...... 43 Negeri SEmbilan Gap Analysis 46 Approach for Gap Analysis ...... 46 Gap Analysis Findings of State ICT Blueprint against Targets ...... 48 Gap Analysis on ICT Environment in Negeri Sembilan ...... 53 Assessment of Public Sector ...... 53 Overview ...... 53 Current Scenario ...... 53 Assessment ...... 54 Assessment of Industry ...... 58 Overview ...... 58 Current Situation ...... 58 Assessment ...... 60 Assessment of Society ...... 63

P Overview ...... 63 Current Scenario ...... 64 Assessment ...... 65 Assessment of Governance Structure ...... 67 Overview ...... 67 Current Scenario ...... 68 Assessment ...... 71 Gap Analysis on ICT Environment ...... 73 Summary of Gap Analysis ...... 73 Supplement– Gap of the ICT Industry ...... 79 Overview ...... 79 Current Scenario ...... 79 Assessment ...... 80 ICT Industry in the context of Cyber Cities and Cyber Centre initiatives ...... 81 Global & Regional Best Practices ...... 87 South Australia ...... 87 Overview of South Australia Initiatives ...... 88 South Australia: ICT Industry as an Economic Powerhouse ...... 88 ICT: Transforming all South Australian Industries ...... 88 ICT in South Australia: Fundamentals for Success ...... 89 Rationale for Benchmark between South Australia and Negeri Sembilan ...... 89 Ireland ...... 90 Overview of Ireland Initiatives ...... 91 Government, agencies and the public see the ICT industry as one of the most important sectors in the country...... 91 That Ireland has the necessary skills for a vibrant and sustainable ICT Industry ...... 91 That Ireland is regarded as a competitive location for ICT, both domestically and internationally 92 That Ireland becomes a very attractive place in which to undertake research and development 92 That Ireland becomes a genuinely recognized knowledge and e-enabled economy ...... 92 That the ICT sector in Ireland improves its access to, and interaction with, the final customer through sales and marketing expertise via initiated programs ...... 93 Rationale for Benchmark between Ireland and Negeri Sembilan ...... 93 Key Findings for Benchmark Regions ...... 93 strategic recommendations for the development of ict in negeri sembilan 95 Recommendations ...... 95 Overview ...... 95 ICT Vision of Negeri Sembilan ...... 95 Address gaps - Current Scenario ...... 97 Address gaps - To Reach Vision ...... 105 IDCs Proposed Recommendations ...... 107 Capability Development Program for the Industry ...... 110 Total ICT Development for Society ...... 114 Fortify Industrial Districts with High Speed Broadband Access & increase access to all ...... 120 Empowering SMBs with ICT access ...... 123 Access @ Negeri Sembilan ...... 127 NS 1st home program driven by Smart Homes ...... 131 1 NS Rakyat Portal ...... 133

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

LIST OF TABLES

P 1 Negeri Sembilan Key Industry/Sector growth 2006-2009 ...... 5 2 Tourist Attraction to Negeri Sembilan ...... 7 3 Negeri Sembilan – Land usage by plantation type ...... 9 4 High Level Indicators for Negeri Sembilan Maju 2020 ...... 10 5 Key Industries and planned initiatives ...... 11 6 ICT Strategic Plan 2003-2008 ...... 13 7 Key Infrastructure related initiatives ...... 17 8 PC & Cellular Penetration (Negeri Sembilan VS Malaysia) ...... 25 9 Sample snapshot of Private Institution of Higher Learning which offers ICT courses ...... 27 10 Regional Management and Key Public Services in Negeri Sembilan Provided by Local Municipals (PBT) ...... 31 11 Negeri Sembilan rolling up to Malaysia ...... 35 12 Key Discussion Points from Top 3 Sectors ...... 37 13 Annual Average IT spend across key verticals ...... 39 14 List of State Driven ICT Programs ...... 41 15 Federal Initiatives in the state ...... 41 16 Key Issues Faced by Negeri Sembilan in Proliferating ICT ...... 43 17 Map of Issues Across MSC Malaysia 2.0 Pillars ...... 45 18 Assessment of ICT Blueprint achievements ...... 49 19 Root Cause Analysis - Public Sector ...... 57 20 Root Cause Analysis - Industry ...... 63 21 Root Cause Analysis - Society ...... 67 22 Root Cause Analysis - Governance ...... 72 23 Overall ICT Environment Gap Analysis ...... 73 24 MSC Status Companies in Negeri Sembilan ...... 80 25 MSC Malaysia Performance Standards Requirements ...... 82 26 Comparison of ICT Goals & Objectives between South Australia & Negeri Sembilan ...... 88 27 Rationale for Benchmark ...... 89 28 Comparison of ICT Goals & Objectives between Ireland & Negeri Sembilan...... 91 29 Rationale for Benchmark ...... 93 30 Key Findings for Benchmark Regions ...... 94 31 Map of Problem Areas Across MSC Malaysia 2.0 Pillars ...... 97 32 Major ICT Themes ...... 99 33 Initial list of recommended programs based on Major ICT Themes ...... 102 34 Recommendations to attain ICT Vision of the State ...... 105 35 Key Recommendations mapped to MSC Malaysia 2.0 ...... 108

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

LIST OF FIGURES

P 1 MSC Malaysia Milestones ...... 1 2 MSC Malaysia 1.0: Strategic Thrusts ...... 2 3 MSC Malaysia 2.0 ...... 2 4 Districts in Negeri Sembilan by Main Economic Sector ...... 4 5 Dynamism in the manufacturing industry ...... 6 6 International vs. Domestic Tourist by District ...... 8 7 Broadband Penetration by States (Per 100 Inhabitants) ...... 21 8 Current Coverage of Streamyx Wireless Combo ...... 22 9 Broadband Coverage by Mobile Operators (HSDPA, 3G, GPRS/EDGE) ...... 23 10 Cellular Penetration by State (2008) ...... 24 11 PC Penetration by State (2007) ...... 25 12 Evolution of Information Society ...... 29 13 Broadband Speed by Sector ...... 39 14 Framework Approach in Formulating Gap Analysis ...... 47 15 Process Flow in Identifying Gaps ...... 48 16 Issues Affecting Public Sector Agencies in Negeri Sembilan ...... 55 17 Main Challenges Faced in Utilization of ICT...... 56 18 Summary of Gaps for Public Sector ...... 57 19 ICT Readiness by Sector ...... 61 20 Summary of Gaps for Industry ...... 62 21 1 NS Wireless City Users by key area ...... 64 22 Summary of Gaps for Society ...... 66 23 Structure of Stakeholders in State ICT Development ...... 68 24 Summary of Gaps for Governance Structure ...... 72 25 Addressing Gap Analysis for ICT Environment Approach ...... 73 26 IDCs approach to attaining the ICT vision of Negeri Sembilan...... 95 27 Translation of state ICT Vision to MSC Malaysia 2.0 pillars ...... 96 28 Major ICT Themes building up to MSC Malaysia 2.0 pillars ...... 101 29 Key Recommendations mapped to development phases ...... 107 30 Timeline and Action plan - Capability Development Program for the Industry ...... 113 31 Timeline and Action plan - Total ICT Development for Society ...... 119 32 Timeline and Action plan - Fortify Industrial Districts with High Speed Broadband Access ...... 122 33 Timeline and Action plan - Empowering SMBs with ICT access ...... 126 34 Timeline and Action plan – Access @ Negeri Sembilan ...... 130 35 Timeline and Action plan – 1 NS Rakyat Portal ...... 134 36 Structure of Stakeholders in State ICT Development ...... 159

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

The Multimedia Super Corridor (MSC Malaysia) was established in 1996 with the aspiration of becoming a global hub for ICT and to become the preferred location for ICT innovations, services and operations. MSC Malaysia tenders to the world:

 A test-bed for technology,

 A framework of relevant cyberlaws

 A set of favorable policies

Since its inception, MSC Malaysia has gone through an evolutionary cycle to cater to the changing market demands and needs of the country. The transformation is seen as part and parcel of the aspiration towards becoming a knowledge society and leadership in knowledge base economy by 2020.

FIGURE 1

MSC Malaysia Milestones

Source: MDeC

The focus of the MSC Framework has also evolved in line with the growth aspirations of MSC Malaysia. Under MSC Malaysia 1.0, the strategic thrusts were aligned to 3 key focus areas

 Attract FDI

 Build Local ICT industry

 Enhance Socio-Economic Development

MSC Malaysia 1.0: Strategic Thrusts

Source:MDeC

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

FIGURE 3

MSC Malaysia 2.0

Building the ICT industry with The use of ICT to enable The use of ICT to empower FDIs acting as catalysts for governments and industries society, bridge the income DDIs. resulting in higher gap & reduce socio-economic productivity in practically all inequalities, enhance the aspects of their value chain quality of life, and improve the quality of human capital

Source:MDeC

O v e r v i e w

The State of Negeri Sembilan consists of 7 districts; Seremban, Port Dickson, Rembau, Tampin, Jelebu, Jempol and Kuala Pilah. The capital city of Negeri Sembilan is Seremban with state level population crossing just over one million people. The expected annual growth rate is approximately 1.8%. In 2008, Negeri Sembilan was home to 3.59% of the nation's population of 27.73 million and was the 9th most densely populated state with 149 individuals per kilometer square. In terms of spread, Seremban is home to 47% of the state population followed by Jempol, 15% and Port Dickson, 13%. The rest of the districts held less than 10% of the population from a district level. The ethnic composition of the population consists of Malays (56.0%), Chinese (24.2%), Indian (15.3%), and other races (4.5%).

Source: NSIC, National Statics Department, UPEN

From 2005 to 2008, Negeri Sembilan has consistently experienced positive GDP growth, raking in RM 16.243 million in 2005 and growing to RM 19,353 million by the end of 2008. Overall, 2009 was seen as a challenging year as the GDP exhibited a negative decline of 1.3%, in comparison to 2008 which saw a growth of 3.8%. With regards to GDP Per Capita, Negeri Sembilan is estimating a 2010 contribution of RM 22,849.

Source: UPEN

The development of Negeri Sembilan exemplifies the focus and ability of the state to adapt to a changing economic and development landscape. Peering back to the early 90's, the state has evolved from being a predominantly agriculture based economy to a manufacturing driven economy. Even with the transformation, the state still continues to ensure a balanced growth. This is evident based on efforts placed in the agriculture sector, for example The National Feedlot Centre and Taman Kekal as well as the development of industrial zones to attract major foreign investors such as Samsung and Coca-Cola. Moving beyond, a new focus is at hand as the state prepares the services sector to take the lead in growing the local economy.

Source: Negeri Sembilan Structural Plan, NSIC

Being uniquely positioned; pinned in the central region bordering Selangor, Pahang, Johor and Melaka, enables Negeri Sembilan to leverage on the development of its surrounding neighbors. For example, as Melaka thrives as a developed state the spillover allows for growth synergies in bordering districts like Tampin, Rembau, and Port Dickson. The same goes with Johor, in which the synergy between Segamat and Jempol allows for the supply of manpower and workforce.

Source: Negeri Sembilan Structural Plan

©2010 IDC # 3 As it takes the leap forward the key vision of the state is grounded on the vision of "Negeri Sembilan Maju 2020". While the state is still in the progress of aligning its key indicators, as of this report there is a draft on10 key lead indicators and another 76 secondary indicators to propel the state to achieve its vision. A key planned transformation to make this a reality is the elevation of the services sectors in particular the growth of the tourism subsector as a strategic initiative. In 2009, the state managed to attract 2.1 million visitors compared to 1.9 million the previous year.

Source: Kajian Pelan Strategik Pembangunan Ekonomi Negeri

IDC notes that the governing driver for the state as a whole is based on the vision to be a developed state by 2020. From an ICT point of view, aside from the key ICT facts (i.e. PC and broadband penetration) there is no clear governing ICT strategy except to support the attainment and achievement of the key state economic indicators.

An overview of the main economic sectors based on districts along with efforts to provide public internet access in Negeri Sembilan is displayed below;

FIGURE 4

Districts in Negeri Sembilan by Main Economic Sector

Source: Negeri Sembilan Structural Plan, 2007

Based on feedback from Jabatan Perancangan Bandar dan Desa Negeri Sembilan, IDC notes the following amendments to Figure 4

 Change of Kuala Pilah as a designated Agropolis to Sumberjaya Agro dan Eko pelancongan.

4 # ©2010 IDC It is noted that the listed number of Community Broadband Centers originally under figure 4 has been removed. This is because the data represented are aspired plans which have not been set in stone. That said IDC notes, that during the research period plans were in place to increase the number of Community Broadband Centers across the state.

Economic Landscape

Negeri Sembilan Key Contributing Sectors

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

TABLE 1

Negeri Sembilan Key Industry/Sector growth 2006 - 2 0 0 9

Industry/Sector 2006 2007 2008 2009

(RM Million)

Pertanian 1,226 1,187 1,222 1,292

Perlombongan 17 19 19 19 & Kuari

Pembinaan 370 385 421 485

Pembuatan 9,443 9,781 9,848 9,338

Perkhidmatan 6,637 7,238 7,792 8,449

Total 17,744 18,653 19,353 19,583

Overall Growth 9.2% 5.1% 3.8% -1.3%

Source: UPEN

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

Manufacturing

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

©2010 IDC # 5 This sector still contributes a good bulk of Negeri Sembilan's GDP and is a strong driver for employment. In 2009, it is estimated that an additional 2,202 jobs was introduced into the market as a result of the growth of this sector. The growth of this sector is expected to continue as a result of positive investment during the 2007-2009 period before transitioning to being a services sector led economy.

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

Source: UPEN, MIDA

FIGURE 5

Dynamism in the manufacturing industry

Source: UPEN, IDC

Servi ces

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

6 # ©2010 IDC initiatives, the ability to grow this subsector is 3 fold. The first being the ability to attract, second being the ability to maximize spending across the value chain and finally the ability to entice for follow up returns. The success of which is seen as hinged upon the ability to create a relevant, competitive, and sustainable value chain.

Source: UPEN, Tourism Malaysia

TABLE 2

Tourist Attraction to Negeri Sembilan

Attraction Examples

Homestay Homestay Pelegong, Homestay Lonek, Homestay Kuala Klawang

Historical and Cultural Sites Negeri Sembilan Muzium, Muzium Adat, Muzium Tentara Darat

Ecotourism Hutan Lipur Ulu Bendul, Taman Tasik Seremban, Hutan Lupur Jeram Toi

Beaches Teluk Kemang, Pantai Purnama, Pantai Tanjung Biru

Shopping & Retail Jusco Seremban 2, Seremban Parade, Terminal One

Medical Tourism Seremban Specialist Hospital, Columbia Asia, Nilai Cancer Hospital

Sports recreation/tourism Seremban International Golf Club, Port Dickson Golf and country club

Source: UPEN, Ministry of Tourism

International vs. Domestic Tourist by District

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

Source: UPEN

Agriculture

As detailed earlier, Negeri Sembilan has gone through different development phases with the GDP contribution of the agriculture sector showing a decline compared to the early 90's as the state shifts its overall focus. However, there continues to be strong initiatives to support the overall growth of the sector as its growth continues to be pivotal as part of an overall plan to propel the state to developed status by 2020.

Negeri Sembilan has a total land bank of 664,591 hectares. As of 2009, 308,267 hectares or 46.38% is dedicated for agriculture. In terms of core focus the plantation of both Rubber and Palm Oil take up priority with over 96% of the local land bank allocated at 132,041.13 hectares and 166,501 respectively. In terms of land ownership for Rubber estates, it's noted that there is strong ownership coming from the small individual farmers which makes up an aggregate of 52.07% of the land bank. That is followed by FELDA at 27.78% and private estates 10.28%. Hence, IDC sees that efforts to work closely with small-scale individual farmers to be essential to achieve state level objectives. The predominance of small scale farmers and the lack of large, industrial scale companies will limit the ability of both the nation and the state to comply with good agricultural practices limiting overall scale and growth.

Moving away from Rubber and Palm Oil, there is a growing focus in terms of other plantations. Production levels growth has surged by 26.41% from 2008 to 2009 landing the production capacity at 104,168.02 metric ton. Fruit production continues to be the key plantation for the state standing in at 57,134 metric ton at 2009. This is a positive improvement given that in 2008 the land mass was just slightly less at 5,363.50 with a yield capacity of 44,382.40. Paddy, Industrial plantation and

8 # ©2010 IDC vegetables grew at 15.7%, 9.5% and 56.7% respectively. For vegetables there is a big jump in land bank expansion from 654 hectares in 2008 to 957 in 2009. In terms of efforts, the local state government has also introduced strategic initiatives to increase the production levels of fruit and vegetation. Clustering on government land has led to key projects such as Permanent Food Production Areas (TKPM) and Ladang Rakyat being introduced

Source: UPEN, MOA

TABLE 3

Negeri Sembilan – Land usage by plantation type

Type of Plantation Size Percentage (%)

Rubber 132,041.13 42.83%

Palm Oil 166, 501.00 54.01

Paddy 1,643.00 0.53

Coconut 1,105.70 0.36

Fruits 5,376.20 1.74

Vegetable 957.46 0.31

Industrial Plantation 643.20 0.22

Total 308,267.69 100.00

Source: UPEN, MOA

Construction

This sector contributed about 2% of the GDP with a growth of 15.2% spurred by initiatives under RMK 9 and the Economic Stimulus plans. This sector is expected to grow in line with development efforts but more from a pull through effect as opposed to a driver for growth.

There are key initiatives which the state government continues to pursue including the positioning of Seremban as a home for KL workers. The second home program is expected to prompt for the growth of the construction sector especially given the growing population located in Kuala Lumpur. The unique positioning of Negeri Sembilan points to the ability to literally house populations as expansions take play. Example of efforts includes Sime Darby's Vision City.

Source: UPEN, IDC

Mining

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

Source: UPEN,IDC

Given the above mention dossier of the key industries, IDC notes that there is no clear ICT development roadmap which enables the permeation of ICT into the corresponding industries. IDC sees the efforts to be more one off or as part of a federal driven initiative.

Key Economic Targets

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

TABLE 4

High Level Indicators for Negeri Sembilan Maju 2020

Key Performance Indicator Target 2010 forecast

GDP per Capita RM 40,000 RM 26,722

Annual GDP growth rate 6.5% to 7.0% 4.9% (estimated)

Employment rate 70% 61.3%

Population growth rate 1% 1.1%

Number of incidents under extreme 0 0.0031% poverty

Manufacturing GDP contribution 31% 47.68%

Services 55% 43.14%

- Tourism 30% N/A

- Biotechnology 8% N/A

- Public Sector Services 10% N/A

- Other Services 7% N/A

Agriculture 9% 6.60%

Others 5% 2.58%

Source: UPEN, 2010

10 # ©2010 IDC It is inherently important to consider how each indicator eventually rolls up to the state goal of achieving the GDP per Capita contribution of RM 40,000 as this will be the key indicator of achieving a developed state status. With regards to this, the state has earmarked key industries and initiatives to be the driver for growth:

TABLE 5

Key Industries and planned initiatives

Industry Objective Initiatives

Agriculture - Fortify and grow the sector - Clustering on government land has led to key projects such as Permanent Food - Unique Go-To-Market to differentiate Production Areas (TKPM) and Ladang and to grow Negeri Sembilan as a Rakyat being introduced. Agriculture player - Cultivation of ornamental fish

- The introduction of the Beef Valley in Gemas

- The development of the Pedas Halal development park

Manufacturing - Focus on progressing up the - Identifying and growing growth clusters manufacturing value chain by regions. West side – the focus is on E&E, Machinery and chemicals where as on the east side the focus is on food manufacturing and agriculture.

- Development of downstream activities in Kuala Pilah Jempol and Jelebu focusing on food products

- Focus on growing high potential industries such as biotechnology

- Development of new industrial zones like Sendayan TechValley

Services - To improve the positioning and offering - Development of regional key products of the tourism sector across all districts across Negeri Sembilan

Source: UPEN, 2010

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

ICT as a Strategic Pillar for Advancement

Through IDC's research it is apparent that the state of Negeri Sembilan sees value in the usage and development of ICT. That said, there is currently no active overarching focus on a statewide ICT blueprint that governs how ICT is to function as a strategic pillar propelling advancement to the state.

Although there is a continuous support and drive to position ICT as an enabler to support overall growth and the attainment of the vision of the state, the lack of an overall direction limits the permeation of ICT.

That said, IDC has uncovered myriad initiatives which have been put in place by various key stakeholders, both government and non-government agencies, in order to propel and enhance the state technologically. These initiatives eventually roll-up to a broad agenda of societal development through the increase awareness and access of ICT.

As common with governmental efforts, one of the largest drawback of initiatives has been the silo nature in which it has been developed and the fragmented nature in which the state government has approached these projects. With that in mind, the true benefit of ICT as an enabler beyond just ICT functions to the enablement of traditional economies has yet to bear significant results.

Albeit the issues, the state government is adamant in seeing through the supporting nature of ICT to the attainment of the state vision. Some of these programs are as follows;

 Development of application systems within government agencies and departments

 Setting up of E-Komuniti/Telecentre

 General Human Capital Development Program for development of ICT ready Human Capital

 Development of Negeri Sembilan State telecommunications infrastructure

 Society development in ICT

 Development of e-Government services to the public

IDC notes that all the initiatives can essentially be rolled up and aligned with the objective of equipping the society to be a part of and to leverage on a knowledge based economy.

Negeri Sembilan State ICT Situational A n a l y s i s

ICT Blueprint Review

In terms of a holistic ICT strategic plan, even though there was a Negeri Sembilan ICT Strategic Plan in 2003, IDC considers the state starting from a clean slate as efforts to date tend to be of a silo nature aligning to evolving strategic initiatives as opposed to a holistic plan. IDCs take on the 2003 ICT strategic plan is that it was not implemented as a whole as only certain programs were considered limiting its function as a state wide strategic blueprint.

There are piece-meal indicators for example broadband penetration which indicates the progressiveness of the state but a current overarching blueprint which governs how ICT is to be developed and permeated for the strategic advancement of the state is not officially penned as a current strategic state wide ICT blueprint. A closer review of the previous strategic plan and its implication points to the following:

 The development of the plan was aligned to the strategic thrust and priorities of the state in 2003.

 The strategic thrust and priorities include promoting growth in priority sectors, development of e-commerce, the shift from P-Economy to K-Economy, increasing support to entrepreneur development, human resource development, Infrastructure accessibility, balanced development in the state, addressing social issues to narrow income imbalance and improve quality of life.

 With the strategic thrusts and priorities at hand the master plan addressed key areas of ICT opportunity in which the government can take the next step forward. (listed in table below)

 With that in mind it is important to note that the key to the plan is the provision of ICT applications by the government.

 Another key finding obtained through the research period is that while the strategic master plan was holistic in nature with the government being the primary driver, only bits and pieces of the plan were adopted.

TABLE 6

ICT Strategic Plan 2003 - 2 0 0 8

Strategic Thrust ICT Opportunity

Promoting growth in priority sectors, human resource Applications to support Business, Citizen and government development, balanced development in the state deployment

Infrastructure accessibility, addressing social issues to Application to address business needs of particular agencies narrow income imbalance and improve quality of life, Infrastructure accessibility

ICT Strategic Plan 2003 - 2 0 0 8

Strategic Thrust ICT Opportunity

Achieve balanced development, Improve amenities and Knowledge management to manage shared knowledge communications and infrastructure, holistic development corridor planning, industrial development in eastern region, develop districts, develop agriculture in eastern region, develop existing townships

Source: UPTM

In producing the final set of recommendations, IDC has endeavored to include key synergy areas of the 2003 ICT Strategic Plan.

IDC notes that there are existing department/agency level ICT strategies either driven in house or by the federal government which drives the ICT development of selected agencies and departments, however an overarching driver for the entire state does not exist in full form.

After extensively reviewing ICT efforts developed, executed and planned by the state, IDC is of the opinion that the informal ICT direction taken by the state took into consideration several key documents developed on a federal government, in order to maintain its allegiance and cohesiveness with the activities forged by the federal government. These federal level strategic documents considered were;

 National ICT Roadmap developed by MOSTI in 2007

 National Broadband Plan developed by MCMC in 2006

 Malaysian Public Sector ICT Strategic Plan developed in 2003

A classic example of the actual execution of the above is seen in the use of the National Broadband Plan to benchmark broadband penetration as a base level for state level initiatives like 1NS Wireless City as well as the proliferation of e-community centers to bridge the digital divide. Adding to that, the detailed Public Sector ICT Strategic Plan which is developed by MAMPU also served as a stepping stone for the proliferation for e-services to the community. Some of the offered e-services include e-Complaints, e-Assessment, e-Rental and others.

Through extensive research, IDC is of the opinion that the overarching agenda which governs all state focus aligns to the vision of "Negeri Sembilan Maju 2020". While the strategic economic indicators are being refined, the release of lead and secondary indicators in 2007 point towards achieving developed status by 2020. Of that ICT is broadly seen as a strategic enabler to empower key industries for growth and attainment of both lead and secondary indicators.

As detailed out in the draft strategic economic plan for Negeri Sembilan, IDC notes that objectives executed by the state does align to an overarching vision to ensure that the state has the capability and capacity in terms of infrastructure , network and

14 # ©2010 IDC methods to participate and leverage in the evolving knowledge base society. IDC is of the opinion that all ICT paths lead to this one vision which in turn supports the formal vision of "Negeri Maju Menjelang 2020".

Current ICT Environment

Pol icie s

Based on the current draft of the strategic economic plan, IDC is of the opinion that the following policies are set in place.

As part of the effort to attain its vision of readiness, Negeri Sembilan has outlined several key policies and objectives moving forward in which they would like to achieve. These policies and objectives have been outlined as below;

Key Objective: To build state wide infrastructure and capabilities including those in rural areas to ensure success in overcoming economic and social barriers driven by the narrowing of the digital divide.

Vision: To ensure that the state has the capability and capacity in terms of infrastructure, network and methods to participate and leverage in the evolving knowledge base society.

Key Strategic Policy 1: Increase overall ICT penetration especially in the eastern region.

The goal of this strategic policy is to ensure that overall ICT penetration increases through the introduction and execution of awareness programs. The state government sees building demand through awareness as a strategy to drive overall ICT penetration with the promotion of activities and programs related to lifelong education and growth as a key.

Current Situation

IDC notes that the above strategic policy aligns to the ICT strategic plan of 2003 highlighting the development of the eastern region. The eastern region of Negeri Sembilan is a reference to the connected districts of both Jempol and Tampin. In breaking down the different growth sectors by the 7 districts it is noted that both Jempol and Tampin have economies which are very highly dependent on agriculture development. Tampin is best known for the National Feedlot center, and Jempol as an R&D hub for Agriculture.

With reference to Jempol, all 4 of the completed and running Community Broadband Centers are located in Jempol, running across Serting Ulu, Serting Ilir, Jelai and Rompin and are initiated to allow both entrepreneur and ICT penetration through awareness. Jempol has also attracted the establishment of 5 Medan Infodesa infrastructure setups and 4 Universal Service Provider initiatives. Other Initiatives related to the development of Jempol includes the "gerak gempur ICT" across schools. It is also noted that in more recent times there is a focus by MCMC to instate Jempol as a digital district through the Digital Jempol Initiative. With this initiative efforts are underway to provide the following services to the district:

 Free Wireless internet access

 Virtual Jempol Memoria – To bridge digital divide through awareness and demand

 E-Services

 Continuous education efforts

With regards to Tampin, as part of the overall pipeline, the planned number of community broadband centers is 6. Program Medan Infodesa has been established in 3 locations including Gemencheh and 2 under the Universal Service Provider Initiative. It is also noted that while Tampin has officially launched its 2010-2015 strategic plans. As part of its overall SWOT, there are no action plans taken to improve the identified weakness in terms of poor ICT development.

Strategic Policy 2: To increase the overall ICT competency level in Negeri Sembilan with the setting up of infrastructure such a s s m a r t schools in rural areas.

With regards to this goal, the state government is to work hand in hand with the Ministry of Education, alongside the Ministry of Rural and Regional Development as well as the private sector to supply PCs to schools in rural areas as well as to increase the number of Smart Schools.

Current Situation

In terms of the education system in Negeri Sembilan, there are a total of 451 schools with 344 schools catering for primary school students and 117 for secondary school students. In terms of overall spread there are 4,825 primary school students and 95,292 secondary schools. Of these 451 schools a total of 9314 PCs have been commissioned to support the increase in ICT competence among students.

 1 primary school teacher : 13 primary school students

 1 Personal Computer : 20 primary school students

 1 secondary school teacher : 12 secondary school students

 1 Personal Computer : 27 secondary school students

It is noted that the congregation of PCs is in the state hub accounts to 37% of the PCs allocated to primary schools and 35% in Secondary School in the state. With regards to smart schools there are a total of 6, with 2 located in Seremban.

The focus is for the state government to pave the way for telecommunication providers to build the necessary telecommunication infrastructure in support of the proliferation of ICT especially internet through high speed broadband.

Current Situation

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

Infrastructure

When discussing the Infrastructure developments of Negeri Sembilan there are two key areas to address, Internal and External. With reference to the internal portion, IDC sees the development initiatives as driven by and primarily for the state government (including e-services to public). Externally, the overall development focus is outside the state government with the public as the key priority.

A snapshot of key stakeholders involved includes:

 Telecommunication service providers – Celcom, Digi, Maxis, Time, YTL etc

 Tower Operators – Rangkaian Minang

 Federal Agency – MCMC, KeTTHA, KKLW etc

 State – Unit Pengurusan Teknologi Maklumat

IDC notes the following as key infrastructure initiatives planned and executed as part of an overall infrastructure growth strategy.

TABLE 7

Key Infrastructure related initiatives

Program Key stakeholder Remarks

Community Broadband Centers MCMC 4 implemented but with a suggested

Key Infrastructure related initiatives

Program Key stakeholder Remarks

plans across the state

** IDC notes that the above figure has been amended post the submission of draft report and comments from MCMC

Program Internet Desa (PID) KeTTHA Pos Malaysia Berhad Lenggeng & Pos Malaysia Kota Rembau

Program Medan Infodesa KKLW Total of 18 Locations

Seremban - Kg. Jijan, Kg. Kanchung

Port Dickson - Pejabat Kemas Bandar Port Dickson, Kg. Jimah Baru

Rembau - Kg. Pedas Gaing

Jelebu - Kg. Lakai, Kg. Gagu

Kuala Pilah - Pusat Kegiatan Masyarakat Kuala Pilah, Kg. Terachi

Jempol - Pusat Kegiatan Masyarakat, Batu Kikir, Kompleks Pusat Sumber, Felda Palong 9, Kg. Serting Ilir, Kg. Air Itam, Kg. Felcra Rompin

Tampin - Kg. Tengah, Gemencheh, Pusat Kegiatan Masyarakat Jelawai, Kompleks Pusat Sumber, Taman Gunung Emas, Repah

Gemas - Kg. Seri Gemas

Universal Service Provider KeTTHA Total of 32 Locations

Seremban - PD Masjid Kariah,Sikamat, PA Pekan Mantin, PD Bangunan Sekolah KAFA,Kuala Sawah Rantau, PD Kg. Bahagia Jiboi, Ampangan, PD Kampung Kapal, Balai Raya Kg Kapal, Lenggeng

Port Dickson - PD Kg. Bagan Pinang, PA Cwgn Port Dickson, Jln Pantai, PD Kg Jimah Baru,Balai Raya Kg Jimah Baru, PD Kg. Pasir Panjang

Rembau - PD Kampung Lenggong Ulu Kota,PD Kampung Rendah, PA

Key Infrastructure related initiatives

Program Key stakeholder Remarks

Cawangan Rembau,Jln Batu Hampar, PD Kg. Pedas Hilir, Balai Raya Kg. Pedas Hilir, PD Kampung Seri Kendong, Bangunan KAFA Kg Seri Kendong, PD Kg. Titian Akar, Kota Linggi

Jelebu - PD Kg. Chennah, PD Simpang Pertang, PA Cawangan Jelebu, PD Kg Gagu, Kuala Klawang, PD Simpang Gelami, Balai Raya Simpang Gelami

Kuala Pilah - PD Kampung Talang, PD Seri Menanti ,Dewan Tungku Najihah, Perbadanan Perpustakaan Awam Daerah Kuala Pilah, PD Ulu Bendul, Pepustakaan Desa, Masjid Kg. Sungai

Jempol - PD Air Hitam, Kg. Felcra Air Hitam, Serting Ilir, PD Felda Serting Hilir, Perpustakaan Awam Cawangan Seri Jempol, PD Kg Bukit Kerdas, Batu Kikir, Kuala Jempol

Tampin - PD Ayer Kuning, Perpustakaan Awam Cawangan Tampin

Gemas - PD Felda Jelai 4

Pusat Maklumat Rakyat (PMR) Jabatan Penerangan Malaysia 7 locations with Jempol inactive

Provisioning of TM Hotspots TM 178 access points across the state

1NS Wireless City Kerajaan NS & TM 7 key locations

Seremban - Dataran Seremban, Taman Tasek Seremban (Tengah), Taman Rekreasi (berhadapan Klana Resort) , Seremban Parade Entrance (Kenny Rogers / Kedai Mamak), Terminal 1 (ruang menunggu bas)

Seremban 2 - S2 City Park (sebahagian kawasan / wakaf)

Senawang - Dataran Senawang, Kawasan letak kereta (tengah) , Kaki lima restoran

Nilai

Key Infrastructure related initiatives

Program Key stakeholder Remarks

Majlis Perbandaran Nilai (MPN) , Dataran Nilai , Murni Nursing College / Asrama Universiti Islam Antarabangsa (IIUM) , Giant Hypermarket Nilai (Commercial Lot Area berdekatan tempat letak kereta)

Port Dickson - Batu 4, Wakaf Batu 4, Tapak Pasar Malam, Batu 8, Dataran Kemang, Wellness Zone (sebahagian kawasan / pintu masuk)

Tampin - Majlis Daerah Tampin (Laman Segar, Dewan Majlis) , Tampin Square (kawasan lapang berhadapan kedai kain Nagoya Tampin), Stadium Tampin (Padang Serbaguna, Grand Stand), Taman Rekreasi Tampin (berhampiran gelanggang squash) , Dataran Tampin

Rantau - Balai Raya Rantau, Pusat Khidmat ADUN Rantau, Dewan Orang Ramai Rantau, Pekan Rantau (liputan 600 meter dari TM Exchange)

Investment: RM2.1mil

1NS*Net Kerajaan NS & TM Upgrading and consolidation of existing Public Sector Network

Investment: RM 12 mil

Mini Multimedia Super Corridor Kerajaan NS Planning

Source: IDC, 2010

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

Internet, PC & Cel lular Penetration

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

FIGURE 7

Broadband Penetration by States (Per 100 Inhabitants)

Johor 35% Kedah 22% Kelantan 16% Melaka 35% Negeri Sembilan 32% Pahang 21% Pulau Pinang 50% Perak 27% Perlis 22% Selangor 56% Terengganu 23% Sabah 17% Sarawak 24% Kuala Lumpur 105% Labuan 34% Malaysia 38%

0% 20% 40% 60% 80% 100% 120%

Source: MCMC, Q2 2010

As highlighted earlier, the level of broadband penetration has grown further. MCMC highlights that the latest broadband penetration figures for Negeri Sembilan is at 65.9% of households.

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

©2010 IDC # 21 In proliferating the reach of broadband further into the state, TM via its streamyx combo package has begun to offer its packages to several areas within Negeri Sembilan. The figure below displays the coverage areas as of December 2010

FIGURE 8

Current Coverage of Streamyx Wireless Combo

Port Dickson Bahau Seremban

Streamyx Bukit Wireless Tampin Bemban Coverage

Jelebu Kuala Pilah

Source: IDC, 2010

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

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

Source: IDC, 2010

The above data is based on the coverage maps provided on the operator's website and is reference to the general availability of broadband coverage. Further unto this, YTL through its Yes solution which was launched in December is also making its way to Negeri Sembilan.

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

Cellular Penetration by State (2008)

160 151.8 140 120 100 101.3 102.7 101.4 92.4 94.8 96.4 80 88.1 86.4 85.9 70.6 60 62.6 58.5 65.7 40 20 0

Source: MCMC, 2010

PC Penetration by State (2007)

Malaysia

Sarawak

Terengganu

Perlis

Pulau Pinang

Negeri Sembilan

Kelantan

Johor

0 5 10 15 20 25 30 35 40 45 50

Source: MCMC, 2010

While the latest data from MCMC is of 2007, the growth from the previous recorded year indicates marginal growth in comparison to states like Melaka and Pulau Pinang. Series 2 represent the penetration in 2007 as opposed to series 1 with the penetration for 2004. It is noted that as of 2007 Negeri Sembilan is still below the national average.

In terms of initiatives, the focus on the permeation of ICT is centered on the provisioning of Broadband access. PC penetration is left to one-off initiatives as well as federal initiatives such as the netbook initiative. To date 8000 units of netbooks under the National Broadband Initiative has been distributed with a goal of 23000.

The table below shows a comparison between Negeri Sembilan State's PC and cellular penetration against Malaysia as a whole;

TABLE 8

PC & Cellular Penetration (Negeri Sembilan VS Malaysia)

Malaysia Negeri Sembilan

Cellular Penetration 98.9% 92.4%

PC Penetration 31.3% 29.7%

Source: MCMC, IDC, 2010

* Latest Cellular penetration is above 100%

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

ICT Graduates, Workforce & Companies

The core focus on human capital development in Negeri Sembilan starts from the grassroots as detailed out in the earlier portion of this report. Based on research there is currently no known holistic end to end program focused specifically on the growth of ICT professionals.

Taking a step back, the Malaysian Smart School initiative is a learning institution that has been systematically reinvented in terms of teaching and learning as well as the improvement of the school management processes in order to help students cope and leverage on the Information Age. In terms of component make up the Smart Schools are to leverage on the following components

 Teaching-Learning Materials

 Technology Infrastructure

 Smart School Assessment System

 Professional Trained Teachers

 System Integration

 Support Services

 Smart School Management System

Delving into the state, as of 2009 of the 439 indentified schools 6 are designated as Smart Schools landing a ratio of 1.3%. Out of this, one is ranked as Level B+. In total there are 88 benchmarked Smart Schools across Malaysia with Negeri Sembilan housing 6.8%.

Moving into tertiary education, the efforts are not necessarily coordinated as the focus is by large based on market demand. As compared to states like Penang, Melaka or Kuala Lumpur the vibrancy of Negeri Sembilan's local ICT industry is not as diverse and opportunity rich. With that, the demands for those who aspire to focus on ICT and stay in the state become limited.

A sample snapshot of Private Institution of Higher Learning which offers ICT courses is detailed below.

Sample snapsho t of Private Institution of Higher Learning which offers ICT c o u r s e s

Private Institution of Higher Learning Programs/Courses

KOLEJ TAFE Certificate, Diploma level ICT courses

INSTITUT JATI(KOLEJ LEGENDA JATI) Degree level - Computer Science & Information Technology

KOLEJ UNITI PORT DICKSON Diploma level - Diploma Sains Komputer, Diploma In Computer Network (DCN)

KOLEJ INTI MALAYSIA Certificate, Diploma, Degree level

KOLEJ NILAI ANTARABANGSA Bachelor of Computer Science

Bachelor of Information Technology (Hons)

Diploma in Business Information Technology

Diploma in Computer Science

Source: IDC, 2010

IDC's intelligence indicates that the number of pure play ICT companies in Negeri Sembilan is currently low. Of the 2318 listed ICT companies in the 2008 WCIT Malaysian directory there are only 7 listed under the state with the bulk being Institutions of Higher Learning with the rest focused on trading. While the total number of ICT companies is expected to be higher, IDC notes that the limited number as reflected under the WCIT directory is reflective of the state of the industry.

At this point, it is clear that the state has no single mechanism to progress the development of ICT from the grassroots to graduates and into the workforce. IDC's take is on the level of focus and demand which relates to the overall vibrancy of the ICT ecosystem and value chain. In analyzing the current industry ecosystem, it is clear that progressing from the upstream to the downstream shows gaps which are not filled simply because of a lack in demand.

 ICT Upstream – IDC refers to this as the design, build and production of ICT products and solutions. It can range from software development all the way to ICT components manufacturing and assembly and design. In referencing the state, it has had success in pulling ICT related investors like Samsung which essentially brings in Foreign Direct Investment to the state which then ties in to jobs. In fact the E&E subsector brought in RM 142.6 million in investment to the state 2009. The issue with regards to the upstream of ICT is the lack of diversification to grow other ICT areas such as Software Development, Technology related R&D, design and others.

 ICT Midstream – The core behind the midstream of ICT looks at the reselling, marketing and distribution of ICT products. In more advanced states like Selangor the sizable number of distributors, resellers and partners to ICT

©2010 IDC # 27 vendors creates a vibrant ecosystem as it serves as a channel to address the demand. Taking stock of global vendors like Microsoft shows that the presence of an ICT vendor creates opportunities across the value chain supporting the growth of an economy.

 ICT Downstream – Where there is demand there will be the need for implementation and after sales support. System Integrators are pivotal in an ICT value chain as it represents the core domain expertise of the market. Other tie- ins to the economy like BPO houses and call centers are seen as drivers to the above.

As observed in the ecosystem of the state, the gaps which exist across the value chain are representative of the lack of demand for ICT. IDC's research points to the efforts taken by the government to address the revitalization of the ecosystem. The crux of the focus is on building awareness and the readiness of the infrastructure followed by key programs which are two pronged in providing both supply and demand.

Under awareness the state government through SUKNS has initiated programs such as Hari ICT with the intention to build awareness on ICT. These programs continue to create a steady level of awareness and understanding on ICT. The most recent Hari ICT was themed ""ICT Pemangkin Komuniti Berilmu", highlighting the drive of the state to position ICT as an enabler of a smart society. This event also reaffirmed the focus of the state to increase broadband and internet penetration. Another part of building awareness is also tied to the infrastructure development through various e- community centers and initiatives. As of March 2010, the IT Management Unit of Negeri Sembilan estimates a total of 89 initiatives under the following respective programs.

 Projek Pusat Jalur Lebar Komuniti/Community Broadband Centers (CBC)- provides collective community Internet access to underserved areas identified under the Universal Service Provision (USP) program. Each CBC is equipped with IT equipment including personal computers connected to the Internet via broadband to allow rural communities to enjoy the benefits of the Internet as enjoyed by those living in urban areas. It is hoped that CBC will contribute towards achieving success in national initiatives to bridge the digital divide between urban and rural communities.

 Pusat Internet Desa – The Rural Internet Centre is the physical aspect of the Rural Internet Program. This program is part of a larger program that involves the local community directly from all aspects such as maintenance and daily management. This program is under the auspices of the Ministry of Information Communication and Culture.

 Program Medan Infodesa – Under the purview of KKLW. It is a physical infrastructure and located in rural areas. It functions as an IT training lab, and catalyst for entrepreneurship.

 Projek Universal Service Provider – Led by Kementerian Tenaga, Air dan Komunikasi and focused on human capital development and access to ICT. Key

 Pusat Maklumat Rakyat – Under the purview of Jabatan Penerangan Malaysia. Functions as an information hub for each pejabat penerangan daerah. It is to be a focal point of information for citizens.

IDC notes that the infrastructure initiatives as listed above are part and parcel of cooperation with partners such as MCMC and other Federal level agencies. Other key initiatives to promote the access of growth of ICT through awareness include the launching of 1NSWireless City to provide free wireless internet access to the key areas in Negeri Sembilan.

From a key program perspective, the State of Negeri Sembilan is currently in plans to embark on a first of its kind mini Multimedia Super Corridor (MSC) in the not too distant future to attract more investors to the state. This effort is seen as a tie in with existing synergies of increased broadband access as well as competitive property price. Alongside this is the development of technology parks such as techpark@enstek which has drawn in Domestic Direct Investment from Teliti.

FIGURE 12

Evolution of Information Society

Source: IDC, 2010

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

©2010 IDC # 29 The exact stage of development for Negeri Sembilan it is not exactly aligned to the curve. For one, the combination of all infrastructure initiatives (hotspots,1 Wireless NS, E-community centers etc ) will rank it towards the mid level of the Y Axis, that said the because there is no targeted societal development it is still in the quadrant of an emerging society.

IDC notes that moving up the curve would be a holistic effort and not just driven by certain key initiatives.

ICT Utilization in Key Segments

Government

Holistically, the state of Negeri Sembilan has performed well in getting its state agencies and departments "e-enabled" by advocating the utilization of ICT within the departments, and by improving the overall infrastructure as seen with 1NS*Net. IDC notes that this perception was made concrete by virtue of workshop respondents of the state government rating the state of ICT in the government to be higher than the overall state. In essence, IDC has uncovered the following points, which displays the government agencies’ readiness in ICT:

 Majority of government agencies interviewed offer a form of e-service via their agency website

 Aside from purely information, the agencies' websites offer services such as downloading of application forms, e-Services and web portal log-in systems

 Higher internet access speed was also deemed as lacking in the current scenario as of the workshop. (IDC notes that the upgrading to1NS*Net to probably have a positive bearing to this)

 Issues such as lack of ICT literacy and computer knowledge appears to be a large problem for many state government agencies in proliferating ICT usage within the agencies

 The need for a champion, ownership and management support and buy-in to drive ICT permeation

 Poor training development program limit the ability to achieve knowledge maturity

 Budgetary constraints limit the ability to plan and develop for long term strategic growth

As the PBTs are encouraged to utilize e-Services as a means to communicate and interact with its citizens, the table below exemplifies the current e-Services being offered by PBTs via their respective websites;

Regional Management and Key Public Services in Negeri Sembilan Provided b y Local Municipals (PBT)

Local Municipal/Authority Key Roles & Responsibilities ICT Utilization

Majlis Perbandaran Seremban  To provide various services to the e-Public residents of the town such as the disposal of garbage / waste and to e-Taksir upkeep the cleanliness of the town. e-Booking  To provide various and maintain the basic infrastructure such as roads, e-Kompaun drains, and street lightings. Suggestion and Feedback  To provide various social and recreational facilities such as Online Payment children's playground and parks. HRMIS  To monitor public health - through licensing of businesses, prevention of Webmail contagious diseases and monitoring building contractors.

 To be involved in development projects have joint-ventures to build business centers and provide business opportunities for the public.

Majlis Perbandaran Nilai  To provide development control, tax e-Assessment management, cleanliness control, Municipal services, business control, e-Rental infrastructural readiness and enforcement, and efficient/ effective e-License public services for local residents and industries in line with the desire to e-Complaints turn Nilai Municipal Council into a developed industrial area. OSC Online

Online License Application

Online Payment

Internet Banking

HRMIS

Webmail

Helpdesk

e-Tempahan

Facebook

Regional Management and Key Public Services in Negeri Sembilan Provided b y Local Municipals (PBT)

Local Municipal/Authority Key Roles & Responsibilities ICT Utilization

e-Komuniti (Forum)

Majlis Perbandaran Port Dickson  Ensuring rational and dynamic e-License development through planning control to preserve the quality of the e-Suppliers environment. e-Complaints  Supporting the efforts by the State Government to encourage growth e-Rental and development in residential, tourism and industrial. e-Assessment

 Providing public health facilities. Forum

 Providing the infrastructures and Feedback Management System (FMS) public amenities including recreational amenities at the Facebook attractive places. Business Licensing Electronic Support  Construct and manage systematic System (BLESS) traffic system.

Majlis Daerah Jelebu  To formulate and implement plans Webmail corresponding to strengthening and improving the fiscal, social, HRMIS economic, and environment system. e-Form  Providing efficient and effective services and basic amenities to the e-Service residents. e-Kasih  To improve the overall development and human resource management at e-Community (Forum)\ all level. Feedback Management System  To co-operate in planning and managing the surrounding Facebook environment towards a stable development in line with the 21st Business Licensing Electronic Support Local Agenda project. System (BLESS)

 To improve development programs with the co-operation of private sector.

 Control municipality activity to create town atmosphere harmony.

 Planning and develop quality public

Regional Management and Key Public Services in Negeri Sembilan Provided b y Local Municipals (PBT)

Local Municipal/Authority Key Roles & Responsibilities ICT Utilization

infrastructure.

 Control and enforcement on by-law and rule act to ensure society's comfort.

 Provide effective legal service in keeping with office need, same as population and dealer by law used.

 Manage quality tourism service.

 Facilitate the deal organization service with ICT usage.

Majlis Daerah Kuala Pilah  To render services to all the people e-Complaints who live within its jurisdiction, and amongst the services e-Payment

 To provide rubbish collection; as well e-Form as the upkeep of the town. e-Tax  To provide and regulate amenities for the people within its jurisdiction such e-Rent as the maintenance of roads, drains and street lights. e-License

 To provide various social and e-Compound recreational facilities such as children’s playground; as well as the e-Supplier maintenance of parks. Webmail  To regulate the public’s health by awarding licenses to businesses, HRMIS prevention of contagious diseases, as well as to administer the e-Spara construction of buildings. Business Licensing Electronic Support  To be directly involved in System (BLESS) development projects such as joint venturing into construction of business centers and food courts so as to give opportunities to the public to venture into business.

Majlis Daerah Jempol  To modernize the district e-Community administration through automation current with information and e-Services communication technology (ICT). BLESS

Regional Management and Key Public Services in Negeri Sembilan Provided b y Local Municipals (PBT)

Local Municipal/Authority Key Roles & Responsibilities ICT Utilization

 To increase the number of k-staff in the public service as the platform to efficient government service at Feedback Management System (FMS) district level. Facebook  Improve the living quality of the society as the essence of solidarity Webmail through rapid implementation of physical and social programs.

 To lend and coordination state agencies and surrounding activities at district level.

Majlis Daerah Tampin  To prepare and maintain satisfying e-Cukai basic infrastructure in council area. e-Lesen  To plan, control and approve all development projects by private e-Sewaan sector. e-Aduan  Building maintenance including sports, recreational and parks facility. e-Borang

 To process proposal building plan e-Kompaun according to laws accepted by council. e-Pembekal

 To deliver health services, town and HRMIS environment cleanliness for comfort. Webmail  To access holding or property in council area for tax assessment. e-Spara

 To enforce on all offences based on BLESS minor laws and applicable acts.

Source: PBT, IDC, 2010

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

34 # ©2010 IDC  People – Access to the municipal website is one thing, but taking a step forward by leveraging on the e-services offered is another. Based on the discussion with the local municipal, this is an area of touch and go with no real concrete driver as a way forward. The level of skepticism with regards to the uptake is there albeit the evidence of access. Furthermore, these municipals have reported that majority of individuals have a strong preference towards utilizing manual means to pay than subscribe to services. IDC notes that it is no longer a catch 22 situation as the municipals have taken the lead to develop and enable the services. At the end of the day, this is a matter of the provisioning of a supply but a lack of demand due to poor awareness campaigns.

 Lack of Infrastructure – Uptake aside, many of these local municipals feel the outreach of infrastructure and broadband speeds are a huge hindrance towards offering e-Services to the society. Even if all local authorities offer basic e- Services via their websites, increasing or creating more e-Services will remain stagnant as long as society demand is low and infrastructure is unavailable.

Indu stry

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

TABLE 11

Negeri Sembilan rolling up to Malaysia

Industry/Sector Negeri Sembilan (% GDP) Malaysia (% GDP) Commentary

Manufacturing Approximately 50% Approximately 30% Negeri Sembilan is currently a state which has a heavy focus on the manufacturing sector. The strong dependency on both Foreign Direct Investment (FDI) as well as the direct demand through export has resulted in a dip during the global economic crisis. The state is attempting to grow this sector albeit not being totally dependent on it

Services Approximately 37%-40% Approximately 55%-57% In line with the effort to reposition itself, the state government of Negeri Sembilan is attempting to increase efforts to generate revenues from the services sector. During the 2008- 2009 timeframe it was apparent that this was one of the sectors which saw a lesser impact from the Global Financial Crisis.

Agriculture Approximately 6%-7% Approximately 8.2%-9.6% The agriculture sector will continue to be a key growth driver for the state. While the current attempts are focused on state

Negeri Sembilan rolling up to Malaysia

Industry/Sector Negeri Sembilan (% GDP) Malaysia (% GDP) Commentary

level sustainability, the state government of Negeri Sembilan does have aspirations to move beyond to position the state as national producer.

Construction Approximately 2%-3% N/A The sector grows in line with supporting infrastructure development. While the growth during the 2008 -2009 period is mainly derived from the trickledown effect of the stimulus plans, the future development of the state including housing development as part of broader agenda against poverty will prove as a catalyst for growth. Other initiatives such as the positioning of the sate as a second home are also expected to draw growth.

Mining Approximately 0.1% Approximately 8% In comparison to resource rich states, Negeri Sembilan is not in the position to capitalize on the Mining and resource industry as a key growth driver

Source: UPEN, IDC

In discussing the industry as a whole, ICT is generally seen as a supporting tool which enables efficiency as opposed to a strategic enabler and catalyst for the further development of the industry sector. While there is a good amount of industries that view ICT as an enabler to achieve sectoral growth, IDC also notes there are skeptics that have yet to comprehend the value of the permeation of ICT into key business processes.

Through IDC's research, IDC is of the understanding that the lack ICT assimilation into industry sectors is a direct result of the non-existing need from customers or entities across the value chain. This lack of demand justifies for the limited focus on ICT as a strategic enabler. Upon closer inspection, IDC had uncovered that the Tourism, Education, IT sectors, were the top 3 sectors, which placed emphasis on the utilization of ICT within their respective industries.

Based on this, many discussions ensued with the industry as to how ICT is able to help and propel their sector forward. Key deep-dives were conducted to uncover the importance of ICT to their businesses, as these sectors had emerged as the top 3 sectors that concede with ICT playing an integral role in the development of their sector in IDC's survey of the industry. The summary of the key points of discussion with organizations within these sectors is mentioned below;

Key Discussion Points from Top 3 Sectors

Sector Discussion Point #1 Discussion Point #2 Discussion Point #3

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

Education The position of Nilai as an Addressing ICT awareness is Moving Awareness into education hub demands for a key issue that needs a maturity will be the key in the industry to take the leap holistic solution to ensure developing information forward by being a key player that the state is able to based society. ICT needs to in the education industry. ICT achieve its vision of go beyond the basic usage not only as a product but a participating and leveraging of internet and e-mail to delivery platform in a flat on a knowledge based enable the development of world. economy high value human capital

IT Defining the entire ICT value As we are in the industry, we chain from the upstream to understand the importance of midstream and downstream ensuring all our employees and mapping key areas to have laptops or desktops participate, compete or grow access to make sure they will be pivotal to ensure the can deliver their work more vibrancy of the local ICT efficiently and faster, without industry. delay

Source: IDC, 2010

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

 ICT is too complicated. This was ranked the key reason for poor ICT usage in the manufacturing space and is linked to the foundations in place to permeate ICT across the society. The inherent lack of awareness and maturity on ICT stifles the overall growth and positioning of ICT as a strategic enabler.

©2010 IDC # 37  Manual processes are currently easier, while having to implement an ICT system within is too costly at this juncture. The cost of re-training employees, installing new systems and potentially overhauling infrastructure does not leave a compelling argument for those in the manufacturing sector to shift.

Not taking the level of advancement and maturity as the final factor, the local industry does have a positive view on ICT as a whole. While the penetration of PCs is more apparent in some, it is understood as to why it may be lower in others, for example the PC penetration rate of the IT industry as opposed to Agriculture industry.

In terms of online presence the industry average was just slightly above 70% when it comes to the showcasing of company website where the bulk of organizations have had it for more than a year.

In spite of advocating the point that ICT can be a key "game-changer" within their sectors, the industry as a whole is rather conservative in utilizing ICT in their business today – which is why no tangible "case study" from Negeri Sembilan could be uncovered, showcasing the extreme benefits ICT had brought to the organization. While in general the industry agrees that ICT brings more benefits such as improvement in internal processes, enhanced customer relationships and heightened quality of products and services, the general consensus is that they feel they are already using "enough" of ICT at this point, and there's no urgency to heighten the utilization or adoption of it.

IDC notes that the positioning of ICT as a broad supporting tool for the attainment of KPIs pointing to the vision as the key reason for the lack of ICT permeation. With that there is no key niche for ICT to support processes, for example the implementation of RFID tracking on livestock and plantation grids rigged with sensors for more efficient harvest. It is that inherit assimilation of ICT into an overarching industry/economy blueprint which sets the status quo on the perception on how much ICT should be used.

A quick snapshot across key verticals indicates that the majority of them are content with internet speeds between 512 Kbps to 2 Mbps. IDC does however note this:

 While the agriculture sector has access to the fastest broadband speeds, it has one of the lowest satisfaction rates for bandwidth. It does beg the question on the purpose and need for higher broadband speeds given the lower PC utilization rates

 Services companies having the lowest congregation of bandwidth access has the highest demand for increased speeds.

Broadband Speed by Sector

Description Agriculture Manufacturing Tourism Services Education IT Access 100.0% 100.0% 100.0% 85.0% 100.0% 100.0% Dial-up (56 k/b) 8.3% 2.1% 3.6% 5.9% 0.0% 0.0%

ADSL (512 Kbps) 16.7% 29.2% 25.0% 58.8% 20.0% 30.0% ADSL (2 Mbps) 25.0% 43.8% 32.1% 17.6% 35.0% 40.0% ADSL (4 Mbps and above) 25.0% 10.4% 17.9% 17.6% 10.0% 10.0%

Leased Line 25.0% 14.6% 21.4% 0.0% 35.0% 20.0% Sufficient bandwidth - 58.3% 70.8% 67.9% 52.9% 90.0% 85.0% Yes

Source: IDC, 2010

In reference to the above table green represents the highest levels of bandwidth across the sectors and red represents the 3 lowest sufficiency levels.

Quick wins

The tourism sector has the potential to be developed into a sector with quick ICT wins. The coupling by the government to spearhead the development of this industry with the current state of readiness and positive perception creates for a good launch pad. The nascent development of tourism attractions outside of current traditional attractions allows for creative innovation allowing the positioning of ICT to address current woes. IDC sees initiatives to reposition the current tourism portal to encompass the creation of a full fledge e-service portal that connects all entities of the local tourism value chain as strong initiative for growth.

From an education angle, the drive is on capitalizing the strong and growing infrastructure that the state is currently putting in place. IDC sees this as the pipes being ready but lacking the content which creates the synergy of both supply and demand. In terms of quick wins, IDC notes that development programs need to be in place to allow for awareness and growth.

The table below provides a snapshot of the current expenditure in aggregate of each vertical on ICT services annually (2009)

TABLE 13

Annual Average IT spend across key verticals

Vertical Average annual IT spend

Agriculture RM 7249

Annual Average IT spend across key verticals

Vertical Average annual IT spend

Manufacturing RM 69221

Tourism RM 12021

Services RM 7249

Education RM 28943

IT RM 6537

Source: IDC, 2010

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

Society

IDC notes that there have been myriad list of initiatives to the state driven by various parties with the purpose of building awareness and encouraging overall adoption of ICT. A snapshot of previous programs is listed below.

 Program Akademi Technopreneur (TAP) with cooperation from PKNS, MDeC, MECD was introduced to encourage the development of Bumiputera Technoprenuers

 Karnival ICT Sekolah launched by MCMC and SUKNS

 HarI ICT initiated by SUKNS

 Digital Jempol and Desa Wi-Fi by SKMM

In terms of overall societal ICT development, IDC notes that there isn't a single entity which has taken full ownership to support the development of an information based society. With that the idea of lifelong learning which is continuous and in developmental stages is not realized.

On that note IDC does acknowledge the focus of e-community centers to drive societal ICT development. In places such as Jempol, the local initiative run through the e-community centers provides for basic ICT training as low as RM 5. There are also evidence of other centers offering more up to date training programs such as fundamentals on blogging.

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

TABLE 14

L i s t of State Driven ICT Programs

Upgrade of application systems for Government and Completed based on customizing federal level applications to State Agencies state utilization.

Society Development in ICT Development program are one-off based on a designated schedule and represents a community outreach effort

1*NS NET Launched on August 2010 with the focus to consolidate and upgrade the infrastructure of NS*Net, EG*Net and NRE*Net

1NS Wireless City Provide Internet access platform using wireless broadband technology to the public in focused areas throughout the state. Access is currently available in 7 key strategic locations across Seremban, Seremban 2, Senawang, Nilai, Port Dickson, Tampin, and Rantau

Source: IDC, 2010

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

TABLE 15

Federal Initiatives in the state

Initiative Objective Owner State Implication

MyID Leverage on Identification All state level Number of citizens as a agencies/department in single reference point with Negeri Sembilan the dealings of all government entities/function

eKL To integrate and streamline MAMPU Majlis Perbandaran Nilai information from all government agencies in the Klang Valley

MySMS Service provisioning through MAMPU SUKNS, Majlis Perbandaran SMS gateway Nilai, Majlis Daerah Kuala Pilah

PRISMA Internet security protection MAMPU SUKNS, Majlis Perbandaran for Government Website Seremban and Nilai

HRMIS Human Resource JPA All agencies Management Information

Federal Initiatives in the state

Initiative Objective Owner State Implication

System for all civil servant

SPEKS Accounting and treasury Jabatan Akauntan Negara Pejabat Perbendaharaan system for state negeri and all related agencies

e-Kasih Repository for poverty related ICU, JPM Pejabat Pembangunan information Negeri, Pejabat Daerah & Tanah, Pejabat Kebajikan Negeri

e-merah Repository for information on ICU Pejabat Daerah & Tanah villages, community leaders Seremban and JKK

e-Tanah Centralized system for land NRE Pejabat Tanah & Galian management Negeri Sembilan and Pejabat Daerah

Pusat Komuniti Bridging To reduce the digital gap Majlis Perbandaran Digital Divide between rural areas and Seremban town/city

Agribazaar Online meeting place to Jabatan Pertanian Jabatan Pertanian Negeri collaborate, communicate Sembilan and to execute

Projek Jalur Lebar Development of broadband MCMC & TM Rural libraries (PJL/CBL) portal to reduce the digital divide

Source: UPTM

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

TABLE 16

Key Issues Faced by Negeri Sembilan in Proliferating ICT

Key Issue Category Impact

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

Quality of Service (Speed of Infrastructure Medium to High Internet)

High cost of Internet, which is Infrastructure Medium causing many people to ignore the need to adopt it

Synergy between e-community Infrastructure Medium to Low centers and other forms of internet access

Full potential of e-community Infrastructure Medium to Low centers

Pipe (Broadband) with no content Infrastructure Medium to High

Lack of awareness leading to poor Society High utilization of ICT in daily life

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

Lack of ICT Skills to utilize basic Society High functions on the computer

ICT Programs do not have Society Medium continuity or "levels". This limits progression and growth

ICT is seen as a supporting tool as Industry High opposed to a strategic enabler to the industry

There is no vibrant ICT industry or Industry High wide-spread utilization of ICT across sectors

Key Issues Faced by Negeri Sembilan in Proliferating ICT

Key Issue Category Impact

There is no niche or specialization, Industry High which has been ear-marked going forward.

No overarching or supporting ICT Industry High blueprint to support the growth of the industry

Lacking in terms of a single point of Governance High contact to champion the effort to grow ICT adoption

UPTM focus is under SUKNS but Governance High there is a gap for overall development

Lack of cohesive interaction and/or Governance Medium - High decision making on ICT direction for the state

Alignment between departments Public Sector High and agencies on the objectives and goals for the utilization of ICT is poor

Change management and Public Sector High resistances to utilization due to preference for manual processes

Lack of ICT skill sets within the Public Sector Medium - High government sector, makes it difficult to fully adopt ICT

ICT seen as a complementary role Public Sector Medium - High to everyday processes rather than one which can be used to simplify processes

Source: IDC, 2010

44 # ©2010 IDC Below IDC has summarized a preliminary map of issues, which cuts across the 3 main pillars of ICT-Enabler, ICT-Industry and ICT-Society, which in IDC's opinion is stifling the growth and proliferation of ICT within the state. The table below showcases key segmented issues, which are synonymous across all 3 pillars of MSC Malaysia 2.0. Those labeled "Yes", are issues which currently pose an issue for the strategic pillar. This preliminary map of issues is further expounded upon in the gap analysis between state ICT initiatives and situations, against MSC Malaysia 2.0 framework.

TABLE 17

Map of Issues Across MSC Malaysia 2.0 Pillars

Issues ICT – Industry ICT – Enabler ICT - Society

Infrastructure  Access to broadband  Imbalance access to  Imbalance access to generally focused on more broadband broadband -creating a high density populated larger digital divide limiting areas.  Quality of Service (Speed coordinated growth to the of Internet) overall state  Quality of Service (Speed of Internet)  Full potential of e-  Quality of Service community centers  Synergy between e-  Synergy between e- community centers and  Pipe (Broadband) with no community centers and other forms of internet content other forms of internet access access

 Driving broadband access 

Accessibility  High cost of Internet,  High cost of Internet,  High Cost of Internet which is causing many causing disparity in threaten broadband people to ignore the need adoption across industries penetration efforts to adopt it especially SMBs  Availability of matching devices to promote broadband access

Maturity/Awareness  There is no niche or  ICT seen as a  No champion to take specialization, which has complementary role to ownership of the been ear-marked going everyday processes rather development of an forward. Alignment than one which can be information based society between industry and used to simplify processes government on the  Lack of awareness objectives and goals for  Alignment between leading to poor utilization the utilization of ICT is government departments of ICT in daily life poor and agencies on the objectives and goals for  ICT Programs do not have  There is no vibrant ICT the utilization of ICT is continuity or "level". This industry or wide-spread poor limits progression and utilization of ICT across growth sectors  Resistances to utilization due to preference for manual processes within

Map of Issues Across MSC Malaysia 2.0 Pillars

Issues ICT – Industry ICT – Enabler ICT - Society

government

 There is no vibrant ICT industry or wide-spread utilization of ICT across sectors

 Lacking in terms of a single point of contact to champion the effort to grow ICT adoption

Resources/HR Skill Sets  Lack of ICT skill sets  Lack of ICT skill sets  Lack of ICT Skills to utilize within the ICT industry in a within the government basic functions on the specific niche or sector, makes it difficult to computer specialization fully adopt ICT

Source: IDC, 2010

NEGERI SEMBILAN GAP ANALYSIS

Approach for Gap Analysis

In assessing and analyzing the overall ICT landscape for the state of Negeri Sembilan, it is crucial to note and understand the key issues and challenges faced that inhibits the proliferation of ICT within the state. In addressing these gaps, then only can the state begin to fully form an actionable strategic and coherent direction to achieve its ICT aspirations.

With that, this portion of the report emphasizes on the key gaps identified for the ICT environment of the state of Negeri Sembilan based on 4 key areas; infrastructure, accessibility, maturity/awareness and Resources/ICT skill sets – which then cuts across the 3 main pillars of the MSC Malaysia 2.0 Framework of ICT-Industry, ICT- Enabler and ICT-Society. The model below illustrates how IDC approached the gap analysis for this study.

Framework Approach in Formulating Gap Analysis

Source: IDC, 2010

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

Process Flow in Identifying Gaps

Source: IDC, 2010

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

Gap Analysis Findings of State ICT Blueprint against Targets

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

 Pelan Ekonomi Negeri 2009/2010

 Negeri Sembilan State Structure Plan 2002-2020

 MAMPU ICT Strategic Plan

With the derived underlying vision and objective of ICT, IDC's overall assessment of the state is that the current level of clarity is representative of the permeation and unified drive of the state to develop ICT. There are definitely strong points such as infrastructure provisioning and there are also points of improvement such as the lack of content driving the demand for infrastructure. Essentially, IDC sees the goal of the state as readying itself to embrace and leverage the emergence of knowledge based society and sees the proliferation of broadband as a key mode of preparation. IDC notes that the absence of a designated champion to own and drive the implementation of the set goals and objectives as key inhibitor for the attainment of not only goals but accountability as well.

IDC's assessment on the current ICT based policies for the state can be found in the table below.

For the purpose of this assessment, IDC utilized the following percentage points as a key indicator to measure the gap between the target/goal and current activities having been conducted.

0 – 25% - Little to no evidence of activity/indicator of activity.

26 – 50% - Some evidence of activity/indicators of activity.

51 – 75% - High evidence of activity/indicators of activity.

76 – 100% - Evidence of all activity/indicators of activity completed.

TABLE 18

Assessment of ICT Blueprint achievements

Policy Summary Description Assessment Achievement

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

Assessment of ICT Blueprint achievements

Policy Summary Description Assessment Achievement

with scheduled activities

 There are 6 planned CBC in Tampin, 3 established Program Medan Infodesa and 2 universal Service Provider

 Tampin also has access to the 1NS Wireless City service

 New Initiatives such as Digital Jempol are already underway

To increase the overall ICT The goal of this strategic  Ratio of 1 Personal  26 – 50% competency level in Negeri policy is for the state Computer to 20 primary Sembilan with the setting up government to work hand in school students is an of infrastructure such as hand with the Ministry of average of the state smart schools in rural areas. Education, alongside the Ministry of Rural and  Ratio of 1 Personal Regional Development as Computer to 27 secondary well as the private sector to school students is an supply PCs to schools in average of the state rural areas as well as to increase the number of  There are 6 Smart Smart Schools. This Schools of which only 2 overarching plan will also see are located in Seremban the growth in overall ICT penetration

Encourage the development The focus is for the state  Cellular penetration rate of  26 – 50% of telecommunication access government to pave the way over 92% as of 2008 and reasonable internet for telecommunication (latest figures are above access in rural areas providers to build the 100%) necessary telecommunication  89 e-community/telecenter infrastructure in support of initiatives across the state the proliferation of ICT especially internet through  Partnership with TM for high speed broadband the 1NS Wireless City, SKMM, KPKK, KKLW, and KPKK – for e- community centers

 Partnership with TM for Hotspot coverage of over 100 zones

 Wireless Broadband

Assessment of ICT Blueprint achievements

Policy Summary Description Assessment Achievement

coverage by cellular providers outside Key areas like Seremban, and Port Dickson is fairly limited

Source: IDC, 2010

The above mentioned policies are derived from the Final Draft – Plan Strategik Ekonomi Negeri, Negeri Sembilan as it was highlighted as the key document propelling the state level planning moving forward. IDC also notes that proposed drafts of strategic blueprints also aligned to the above key policies.

Based on the assessments above, IDC has summarized the following points in discussing the gap between the state's ICT objectives and current activities;

 Broadband as a key strategy – The overarching agenda for the state is centered on the development of both human capital and the underlying infrastructure. It aims to be ready to leverage and participate in a digital age driven by a knowledge economy. However the state government is using broadband as an encompassing strategy to drive all initiatives that follow.

 Ownership on follow up – It is understood that the state of Negeri Sembilan has no single overarching mechanism for the monitoring of ICT based initiatives within the state holistically. While UPTM is the key stakeholder for ICT in SUKNS, it is apparent that the initiatives to the state at large are not under its jurisdiction and as such initiatives which are conducted are not visible.

 Encompassing champion – At this point there is no clear stake holder taking up ownership being the lead ICT champion for the state. Pockets of external players like Rangkaian Minang are involved but at the end the current structure places UPTM as the closest to champion. That said the poor delineation of current roles and empowerment has led to the gap in terms of a championing the agenda.

 Poor ICT ecosystem – IDC notes that there is no vibrancy in the local ICT ecosystem. Moving from the upstream to the downstream it is noted that the activities are far in between. There are only 7 MSC status companies with at least 3 registered as IHL. The poor ecosystem is representative of a lack of demand.

 The flight of E-Government initiatives – Poor utilization from society is seen as the main culprit leading up to the current status of e-government initiatives. The e-government focus is exemplified by its translation of the local municipals where services like e-bayar are made available. That said the actual e-government evolution is not clear. There is still a strong focus on traditional form transfers as

 Supply-Demand eco-system not in existence – With demand for ICT based services in the state being low, this has created a crucial issue with ICT based vendors and man-power in the state. As long as the creation of a vibrant ecosystem between demand and supply is non-existent, Negeri Sembilan will still be in a deadlock with no purpose. There is a crucial need for the state government to concentrate on a niche or specialization for the state to embark upon, utilizing ICT as the backbone in supplying of services via both DDI and FDI initiatives.

 Investment in ICT Skills Required – The state government should look into more ways to enhance and heighten ICT skill sets amongst ICT graduates to obtain specialization or professional certification within stipulated areas. The state's strategic ICT goal is to produce an ICT based workforce, competent in the digital era; however, with the lack of investment and support from the government in enhancing these skill sets from a business perspective, the digital divide will still remain.

 ICT investments should be well balanced – There is a need for the state government to look keenly into balancing out their investments across infrastructure, technology, programs and human capital development to ensure concurrent growth across the state. Current indicators indicate a strong push for the development of broadband but unless there is a diverse accountability on programs the pipes will exists with no real content.

 Strengthen Governance Structure – There is a need for the state government to formulate, if not, strengthen its current governance structure in empowering and performing specific tasks and processes to achieve its ICT development goals. Re-alignment of policies, adequate guidance, processes and key decisions would have to be made, and a single-point of contact be nominated to fulfill these goals. At this juncture, Negeri Sembilan has a fragmented governance structure, with silo ICT based activities occurring.

Gap Analysis on ICT Environment in Negeri S e m b i l a n

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

Assessment of Public Sector

Overview

The Public Sector can play a pivotal role in developing the ICT landscape of a state. Its core function as administrator of the sate enables it to be in a position to set strategic goals, which can have either a positive or a negative impact towards the development of ICT. There are existing case studies on how nations are propelled for growth with ICT set as an enabler.

For this section on the assessment of the public sector, the key source of information was derived from the following sources:

 Negeri Sembilan State Government Workshop

 Reference documents from UPEN

Current Scenario

Holistically, the state of Negeri Sembilan has performed well in getting its state agencies and departments "e-enabled" by advocating the utilization of ICT within the departments, and by improving the overall infrastructure as seen with 1NS*Net. That said with reference to the development of the Public Sector, IDC notes that the maturity and services offered are far from reaching a level of desired maturity. Most e- service offering are still form driven with back end processes still in manual form. IDC notes the there is still room for growth.

From angle of adoption and growth, IDC notes that even with the public sector blueprint developed by MAMPU in 2003 the core initiatives were not taken in full but in ala-carte form. That said propagation of ICT from a holistic level throughout the public sector has its own set of limitations, as the core focus to drive is limited to UPTM.

IDC summarizes the current ICT scenario to the following pertinent points:

 The government plays a pivotal role to build the industry. That however is short- lived as the actual supporting roles cannot be articulated from an ICT angle.

 While the state government has made a number of strategic investments on ICT it is noted that the workshop participants are not aware of its existence, pointing to the fact that initiatives are still executed in silos with little attention on awareness building.

©2010 IDC # 53  It is also noted that the impact of the previous public sector strategic ICT plan was not noted as something which was obvious and could be quantified. IDC sees this as indication of the lack of follow through and education. The workshop drew obvious blanks when presented with the idea that there is an existing Public Sector blueprint.

 Poor career development of ICT personnel within the public sector does not motivate the workforce to taking an interest in ICT as a career path. The resulting gap limits the growth in ICT expertise.

 The need for a champion, ownership and management support as well as buy-in to drive ICT permeation to the general public is poorly promoted.

 Issues such as lack of ICT literacy and computer knowledge appear to be a large problem for many state government agencies in proliferating ICT usage within the agencies.

 Poor promotion by the agencies effects in poor demand of e-services thus enforcing in the mind of the workforce the futility of taking the ICT education seriously.

 Lack of planned training and development program among the public service personnel limit the ability to achieve the desired knowledge maturity.

 Varying level of ICT awareness among workforce creates an uneven demand on ICT requirements and their supporting infrastructures thus creating an uneven disperse of resources across the state.

 Budgetary constraints limit the ability to plan and develop for long term strategic growth.

 Higher internet access speed was also deemed as lacking in the current scenario as of the workshop. IDC notes that the upgrading to1NS*Net to probably have a positive bearing to this. That said, while the consolidation proves that the government is willing to invest, it has yet to translate to better service provisioning to the state.

 Inefficient budgeting cycle limits organization from strategically planning the ICT needs of the state as a whole

Asse ssment

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

Issues Affec ting Public Sector Agencies in Negeri Sembilan

Source: IDC, 2010

As witnessed above, IDC has summarized two key issues, which are at the forefront challenging the full proliferation and implementation of ICT within state agencies – these are two incidences, which are closely interlinked with one another in terms of resistance and causes agencies to stagnate in their ICT development. The two issues are that of processes and people within the agencies, being highly resistant to change and unwilling to embrace ICT. IDC views these laggards as the key stumbling blocks for any society to move forward as an advanced information society, with the government having to play a key component in increasing ICT literacy within the confines of the agencies first, prior to advocating this to the society at large.

In more granular assessment, IDC attempted to uncover the root of resistance in utilizing ICT, and to also understand from these individuals on how ICT may aid the government in functioning better. The figure below summarizes some of IDC's findings as to how ICT is currently being viewed within the confines of the government sector, and the challenges faced by these agencies in utilizing ICT;

Main Challenges Faced in Utilization of ICT

Source: IDC, 2010

Key Challenges

Based on strategic workshops with the state government of Negeri Sembilan, IDC was able to summarize the key areas of challenge with regards to ICT utilization.

 Mindset/Awareness/Readiness – This first grouping had the highest hits in terms of relevance to workshop participants. General tie-ins and association include change management, competency level, talent pool, and perception. IDC notes that the culture of "fear of change" and "lack of knowledge" creates a negative stigma limiting the ability for ICT to permeate. This has also resulted in a downward spiral effect impacting the growth of talent pool due to the lack of demand.

 Next in line was the inherent limitation of hardware, infrastructure and systems. IDC notes that the limitation is due to an uneven disperse of resources across the state. It is also due to the fact that strategic plans are not in place to coherently drive the growth of the backing infrastructure. That said, IDC notes that the level of awareness and mindset also results in the uneven demand on ICT requirements and supporting infrastructure.

 Budget is claimed to be a key issue by 18% of the workshop respondents. IDC notes that from the public sector angle, budget will always be an issue and planning around it and sourcing for funding models to be essential. IDC notes that the budgeting cycle does limit the ability for organizations to plan strategically.

 The support of senior management was a heated debate during the workshop as participants tend to view the support of senior management to be crucial for the overall growth of ICT. The tie-in to this is also on the mention of mindset/awareness/readiness, which leads to a dead end if the senior management falls under the category of not seeing ICT as a strategic tool.

Summary of Gaps for Public Sector

Source: IDC, 2010

In summarizing the key points on the public sector, it is apparent that the gaps presented are those which are typical of any society attempting to modernize via ICT, and transform into an advanced information society. The crucial element to note is the need for a strong and stalwart champion to drive through the critical message, objective, vision and goal of ICT amongst the agencies, in order for them to become advocates of the cause for the state. Simply put, these agencies would have to "practice what they preach" prior to expecting the rest of the state; industry and society; to plough forward utilizing ICT as a key tool in their business or daily lives.

Although these gaps are seen as typical "teething" problems faced by an evolving society, the potential pitfall at this juncture for the state is the lack of focus in transforming itself and implementing concrete change management policies to address issues that relate to mindset/awareness/readiness. This number 1 issue leads to the propagation of other issues along the line which will be detrimental both short and long term. Buy-in should be achieved via top-down approach, with all user requirements and feedback being provided and accepted in order to further advocate ICT as a key tool within these agencies.

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

TABLE 19

Root Cause Analysis - Public Sector

Base Event Chain Reaction Gap

No clear direction on the Users are not full y convinced on the Mindset/Awareness/Readiness advancement of ICT for the state importance to delve into ICT practice ICT Seen as a complimentary role,

Root Cause Analysis - Public Sector

Base Event Chain Reaction Gap

rather than one to optimize performance

Senior Management Support

ICT is sidelined Not a top priority when it comes to Infrastructure/System Limitation planning and budgeting leaving Budget constraints

No clear structure to increase Users are left with basic 101 type Lack of skill sets digital literacy training with no avenue for advancement

Source: IDC, 2010

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

Assessment of Industry

Overview

As stated in the situational analysis, the development of Negeri Sembilan exemplifies the focus and ability of the state to adapt to a changing economic and development landscape. From the 90's the state has evolved from being a predominantly agriculture based economy and into a manufacturing driven economy. As of 2010, the focus is to move towards a services led economy.

For this section on the assessment of the industry, the key source of information was derived from the following sources:

 Negeri Sembilan State Government Workshop

 Reference documents from UPEN

 Industry Survey

Current Situation

As of this special report, the state of Negeri Sembilan has its economy focused on 3 key sectors listed and explained below:

 Manufacturing

With regards to a key mantra moving forward, the state is focused on progressing up the manufacturing value chain. In terms of initiatives, the state is bent on identifying and growing growth clusters by regions. On the west side the focus is on E&E, Machinery and chemicals where else on the east side the focus is on food manufacturing and agriculture. Another key area is the development of downstream activities in Kuala Pilah, Jempol and Jelebu focused on food products. With regards to propelling the state into the future there is a strong focus on growing high potential

IDCs industry survey focusing on the manufacturing sector point to the following:

 The average annual ICT spend for the manufacturing sector is approximately RM 69K

 That said, IDC notes that this is skewed with a huge disparity between large MNCs with mature ICT environments and SMBs which are not necessarily on track with ICT

 43% - 45% use graphic design software or architecture programming in the manufacturing industry as compared to at least 73% who use it for basic Microsoft Applications.

 70% are benefitting from the promotion of owning a website.

 75% of those in the manufacturing industry state that ICT is a way to increase efficiency in delivery of products/service.

 However only 58% is planning to utilize ICT as a means to improve internal processes.

 Services

The services sector is earmarked to take lead as the key GDP contributor of the state. While the subsector ranges from tourism, communications, public services and others, key to the current strong growth is the tourism subsector. The tourism subsector is poised to drive the services sector being the single largest GDP contributor. A key goal for the state is to ensure tourism growth is seen across all districts of Negeri Sembilan as opposed to having growth driven in only existing current areas of growth. At current tourism is drawn from activities in Port Dickson but IDC notes that bigger listing of key activities are available.

IDCs industry survey focusing on the Services industry states the following:

 The average annual ICT spend for the services sector is roughly RM 7K with Tourism cut out of approximately RM 12K

 While a slight majority of 53% of the surveyed organizations has their own website, only 10% of the organizations are utilizing graphic design software, which could be used to enhance graphics on their respective websites.

 60% of respondents state that ICT increases efficiency in delivering their products and services

 Similarly 58% state that it is planning to utilize ICT as a means to improve internal processes

 Agriculture

As detailed earlier, Negeri Sembilan has gone through different development phases with the GDP contribution of the agriculture sector showing a decline as opposed to the early 90's as the state shifts its overall focus. That said, there continues to be strong initiatives to support the overall growth of the sector as its growth continues to be pivotal as part of an overall plan to propel the state to developed status by 2020. For the agriculture sector, the mantra is to fortify and grow the sector with unique Go- To-Market products to differentiate and to grow Negeri Sembilan as an Agriculture player. Some of the key initiatives include clustering on government land for the Permanent Food Production Areas (TKPM) and Ladang Rakyat, cultivation of ornamental fish, the introduction of the Beef Valley in Gemas and the development of the Pedas Halal development park.

With that in mind key findings from IDCs industry survey point to the following trends across the industry:

 The average annual ICT spend for the agriculture sector is roughly RM 7K

 Over 28% of the companies interviewed across key industries do not have PCs with the agriculture sector topping the list.

 This trending of importance of PC is reflected in a rating scale where the agriculture sector sees less importance of it.

 Internet access is available across all the sectors, but as mentioned in the situational analysis the sector which sees the least importance of IT demands states the need for higher speed. IDC notes that this may be due to the poor perception and awareness.

 Web-sites are an important indicator of moving up the technology value chain. The same stats apply with the agriculture sector having the least amount of websites. IDC notes that the agriculture sector is greatly influenced by the small scaled farmers and plantation owners and this is very likely a representation of the cottage industries unable to move up the chain due to poor exposure and awareness.

 In terms of digital literacy there, the focus is concentrated on core basic functions like e-mail and surfing the net.

Asse ssment

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

60 # ©2010 IDC On the other hand, the tourism sector which is earmarked as the key growth contributor is at a strong position to leap frog. However, the fact that PC replacement cycles are longest in this industry may signal poor level of performance as a potential issue.

IDC also notes that there is no vibrancy in the local ICT ecosystem as there is a lacking in terms of players across both the upstream and the downstream. With that, the proliferation of ICT is limited with no champion or driver.

Based on interactions with the industry, IDC's survey findings, and discussions with pertinent members of the industry, IDC has summarized the readiness of each sector of the industry as outlined below:

The readiness factor of each sector was considered based on the following criterions;

 Average Yearly ICT Expenditure – Higher expenditure annually on ICT services, equates to higher ICT maturity.

 Web Presence – ICT maturity is constantly being measured up against web/internet presence. A cohesive and solid web presence represents the organization's ability to utilize ICT as a means to communicate market and advertise themselves to further grow their customer base beyond local buyers.

 ICT as a Key Enabler – Recognizing ICT as a key enabler to propel their organization and their sector into the future was crucial in witnessing the understanding of these verticals of the benefits of ICT.

 Utilization of ICT – This was then encapsulated with overall understanding on how ICT was utilized within each key economic sector.

FIGURE 19

ICT Readiness by Sector

Sector Average ICT Expenditure (Yearly) Website Key Enabler Readiness Agriculture RM 5,000 - RM 9,999 58.3% 74.2% Manufacturing RM 100,000 - RM 499,999 70.8% 74.0% Tourism RM 10,000 - RM 24,999 67.9% 90.0% Services RM 5,000 - RM 9,999 52.9% 68.0% Education RM 100,000 - RM 499,999 90.0% 81.8% RM 5,000 - RM 9,999 IT 85.0% 80.0%

Source: IDC, 2010

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

Key challenges

©2010 IDC # 61  Uneven growth within sectors widens the gap between leaders and chasers. In the manufacturing sector for example the leaders heavily spend on ICT investment as opposed to mid-sized companies.

 Inadequate broadband coverage areas in the state, with most focus given to key areas limiting growth in districts.

 Low levels of ICT awareness and maturity leading to poor digital literacy

 ICT not being seen as a strategic enabler for the business

 Non vibrant ICT ecosystem leading to stagnancy in the ICT ecosystem and eventual proliferation

 Poor emphasis on ICT training across the industry

 Technology advancement which changes too quickly makes it costly to keep up

 No compelling reason to utilize ICT as there is no customer demand for it

 Competitive and sector landscape does not drive the need for change

FIGURE 20

Summary of Gaps for Industry

Source: IDC, 2010

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

TABLE 20

Root Cause Analysis - I n d u s t r y

Base Event Chain Reaction Gap

No champion to advocate the Key development in other sectors but Lack of vibrant ICT industry creation and growth of an ICT ICT, Organizations generally do not see based ecosystem the compelling need to position ICT as a focal point supporting growth

Current awareness level Great disparity between mature Sporadic utilization of ICT across key diminishes possibility of permeation organizations and those with little industries of ICT into key industry sectors adoption creating a vacuum on ICT demand

Lack of direction in earmarking a Fragmented training programs leading Lack niche or specialization for ICT particular field or following through to a mix of skill sets but lacking the industry on a chosen field in ICT masses to congregate to create pivotal changes Underdeveloped talent pool or non- existent

Strong focus on the west bank (port Continues focus to fortify key zones with Sporadic broadband coverage Dickson) and central zone disparity in other developing zones (Seremban, Nilai)

Source: IDC, 2010

Assessment of Society

Overview

As at 2008, Negeri Sembilan was home to 3.59% of the nation's population of 27.73 million. It was the 9th most densely populated state with 149 individuals per kilometer square. The spread in terms of population sees Seremban take up a major chunk being home to 47% of the state population followed by Jempol at 15% and Port Dickson at 13%. The rest of the districts individually house less than 10% of the state population of Negeri Sembilan.

The key source of information for society was derived from the following sources:

 Negeri Sembilan State Government Workshop

 State-Wide Community survey

 Reference documents UPEN

IDC sees the society as the building block for the success or failure of ICT initiatives. It is through the society that there is demand for an ICT industry, and it is though society that human capital is built to fuel the ICT industry. It is therefore to no surprise to see the core objective of the sate with regards to ICT is in the readying of both the infrastructure and human capital to ensure its successful implementation.

As highlighted in the situational analysis report, a snapshot of some of the activities run by the state and other related stakeholders point towards the existence of programs to drive ICT adoption in the society. While the evidence is far and few in between, there are efforts being taken.

In terms of overall societal ICT development, IDC notes that there isn't a single entity, which has taken full ownership to support the development of an information based society. With that, the idea of lifelong learning which is continuous and in developmental stages is not realized.

IDC's key observations as detailed out through a state wide survey across the 7 districts point to the following stats.

 31.2% of the state wide population does not have access to a personally owned computer.

 In the situational analysis document, it is noted that the broadband penetration rate for Negeri Sembilan is currently looking good at 32%. IDC also notes the efforts taken by the state government to improve accessibility. One noted program is the 1 NS Wireless City initiatives. That said, even with such programs only 11.9% of those who do not have access to the internet actually go all out to find access. The table below is a snapshot of the number of users for the 1 NS Wireless City initiative.

FIGURE 21

1 NS Wireless City Users by key area

Location User

Tampin 45

Nilai 63

PD Bt 4 79

PD Bt 8 479

Rantau 97

Senawang 613

Seremban 691

Tampin 45

Source: TM, 2010

64 # ©2010 IDC  With regards to usage of PC it is noted that of all the key activities, the top 3 usage of PCs is seen in Internet surfing, usage of Microsoft Office –Word and media functions like music and video. IDC sees this as a hint with regards to the type of user maturity Negeri Sembilan currently has. It is also noted that more advance features like Programming, AutoCAD and graphic software to only be strongly adopted in more mature districts like Seremban and Port Dickson

 Moving away from isolated usage and into the net, it is noted that the vast majority use the internet for chatting and sending e-mail. The adoption of services such as online banking and government e-services is rather minimal across the different districts. On the subject of e-banking it is interesting to note that access rises moving away from the city center. Perhaps indicating the awareness of the advantages of ICT as enabler to the society

 On the same note, while the government has set up e-community centers across the state and continues to put investment into it, the take-up as opposed to other modes of access is relatively low at 6.6%. Jelebu was ranked the lowest with Seremban at the top. IDC notes that internet café's far outbid alternative methods of own access

 Given frequency of access it is noted that a good 32.6% actually access the internet only once a week. This indicates the level of dependence to the net, which at this point signals a high level of non dependency. On the same note, IDC notes that a key issue with regards to the absence of internet access is the fact that the society still sees it as very expensive; there is also a good percentage which sees no use of it.

 Looking at it from a holistic point of view, it is interesting to note there is a good 11.2% and another 15.3% who think negatively of ICT and will be able to survive if it did not exist.

Asse ssment

With regards to the above, IDCs assessment on the society is seen from a holistic level. IDC notes that the Government is putting a strong emphasis on the readiness of human capital as part of its grand vision to develop ICT initiatives and in turn has executed key programs. That said, it is still obvious that there is a gap.

IDCs view with regards to the gap is as follows.

 On the topic of internet access, the adoption is still low and is probably an indication of the perceived value. IDC notes that while the cost of internet is perceived high by the respondents, so is everything else these days?

 IDC notes the level of digital e-literacy as an indicator of perhaps the reasoning behind the comment on high cost. Cross examining the responses point to the usage of ICT at a very core and rudimentary level. With that, it is not surprising that the perception of value is ranked low, hence the claimed high cost.

Another point to add is even with all the efforts to provide free internet access a key issue which has been identified is that there is a "pipe" but there is no content.

Key Challenges

With the key challenge of not having a champion to drive societal ICT development, the information based society gap widens. While there are some bright spots to the overall scene, IDC has summarized the key challenges faced in wide-spread society adoption;

 Poor knowledge or know-how to utilize ICT

 No method of incremental knowledge advancement

 Unable to relate to the benefit of utilizing ICT

 Lack of supply to create demand (content)

 There is a general consensus and feel that the cost of subscribing to broadband is too high

 No pull factor to focus on ICT as a career

 ICT is not a pivotal factor which drives advancement of the state

FIGURE 22

Summary of Gaps for Society

Source: IDC, 2010

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

66 # ©2010 IDC towards the society would need to be wise, in demarcating, identifying and advancing society within a realistic targeted timeframe. With poverty being a large issue for the state government to tackle, the rise of ICT within society will be slow, however, not impossible to achieve.

With that said, the figure below exemplifies IDC's understanding on the chain-reaction of events that have led to the gap currently being uncovered within the society.

TABLE 21

Root Cause Analysis - S o c i e t y

Base Event Chain Reaction Gap

The translation of benefit in using The lack of "proof" sidelines the Lack of awareness on utilizing ICT ICT is not apparent importance of ICT to a level of less importance

There is no base level record to The lack of a structured approach Lack of basic ICT skill sets understand if ICT permeation on a continues to widen the disparity in terms basic level has occurred in the of ICT usage state. As such the efforts for education are continuous

Strong focus on 101 type courses The demand to go beyond is there but, Programs lack continuity with no overarching growth theme the existing system does not accommodate

Source: IDC, 2010

Assessment of Governance Structure

Overview

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

FIGURE 23

Structure of Stakeholders in State ICT Development

Source: UPTM, 2010

The highest governing ICT Committee in Negeri Sembilan is the Negeri Sembilan Information and Communication Technology Council. This council is chaired by the YB Menteri Besar of Negeri Sembilan and with UPEN as secretariat. This committee focuses on the overall governance and planning of ICT of the state aligned to the nation at large.

As the key area of focus is aligned to the state at large and its integration to the nation key areas of jurisdiction are listed below

 To provide state level frameworks inclusive of an execution mechanism aligned to the nation

 To consolidate proposals and directions and to formulate a strategic execution plan for the state

 To evaluate the overall effectiveness of set and run programs for the key sectors including public, private and others

 Key liaison between state and federal level Technology councils

 TIMBALAN KETUA PENGARAH (ICT) - Unit Pemodenan Tadbiran Perancangan Pengurusan Malaysia (MAMPU)

 PENGARAH - Seksyen Teknologi Maklumat dan Komunikasi, Unit Perancang Ekonomi Jabatan Perdana Menteri

 PENGERUSI - J/K Bertindak Infrastruktur, Tenaga Air dan Telekomunikasi NSDK.

 PENGERUSI - J/K Bertindak Kesihatan, Sains, Teknologi & Inovasi, NSDK.

 Y.B. SETIAUSAHA KERAJAAN, NSDK

 Y.B. PEGAWAI KEWANGAN -Pejabat Kewangan Negeri, NSDK

 TIMBALAN SETIAUSAHA KERAJAAN (PEMBANGUNAN) - Unit Perancang Ekonomi Negeri, NSDK

 TIMBALAN SETIAUSAHA KERAJAAN (PENGURUSAN) -Pejabat Setiausaha Kerajaan NSDK

 PENGARAH - Pejabat Tanah dan Galian, NSDK

 PENGARAH - Pejabat Pembangunan Negeri, NSDK

 PENGARAH - Jabatan Perancangan Bandar dan Desa, NSDK

 PENGARAH - Unit Perumahan Dan Kerajaan Tempatan, NSDK

 PENGARAH - Jabatan Pendidikan Negeri, NSDK

 PENGARAH - Jabatan Kesihatan Negeri, NSDK

 PENGARAH - Yayasan Negeri Sembilan, NSDK

 SETIAUSAHA BAHAGIAN Bahagian Teknologi Maklumat, Kementerian Tenaga, Air dan Komunikasi

 SETIAUSAHA BAHAGIAN Bahagian Teknologi Maklumat, Kementerian Sumber Asli dan Alam Sekitar

 SETIAUSAHA BAHAGIAN Bahagian Teknologi Maklumat dan Infodesa Kementerian Kemajuan Luar Bandar dan Wilayah

 PENGARAH Jabatan Kerja Raya, NSDK

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

 To determine the public sector directive as part of an ICT strategy

 To address the human capital needs to achieve set goals

 To plan and moderate all ICT strategies in line with the state level goals

 To encourage smart partnerships in the realm of ICT

 To establish ICT security framework

 To guide the development of ICT strategic programs

 To approve and grant key procurements

 To moderate and synergize agency level ICT plans

The makeup of the existing council is listed below:

 Setiausaha Kerajaan Negeri Sembilan

 Pegawai Kewangan Negeri

 Timbalan Setiausaha Kerajaan(Pembangunan)

 Timbalan Setiausaha Kerajaan (Pengurusan)

 Ketua Penolong Pengarah - Unit Pemodenan Tadbiran dan Perancangan Pengurusan Malaysia (MAMPU)

 Pengarah Jabatan Pengairan dan Saliran

 Jabatan Perancang Bandar Dan Desa

 Pengarah Jabatan Audit Negara Cawangan Negeri Sembilan

 Pengarah Infrastruktur Suruhanjaya Komunikasi dan Multimedia Malaysia

 Naib Presiden Rangkaian Minang Negeri Sembilan

 Pegawai Teknologi Maklumat (Kanan) - Pejabat Tanah Dan Galian

 Penolong Pengarah Korporat - Jabatan Kerja Raya

 Pegawai Teknologi Maklumat - Pejabat Pembangunan Negeri

 Ketua Penolong Setiausaha - Unit Kerajaan Tempatan Pejabat Setiausaha Kerajaan

 Ketua Penolong Setiausaha - Unit Korporat Pejabat Setiausaha Kerajaan Negeri Sembilan

 Penolong Setiausaha - Unit Perumahan Pejabat Setiausaha Kerajaan

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

Asse ssment

With reference to Negeri Sembilan, there is synergy as the chain of command is being led by the Menteri Besar himself down to the state secretary and eventually to the different stake holders. The core strength behind this is the strong level of support to ensure that ICT is taken seriously and is part and parcel of the grand vision of the state.

IDCs take on the current scenario highlights the following issues as the key areas of concern.

 Ground level execution limited to SUKNS – With reference to Figure 1, Unit Pengurusan Teknologi Maklumat (UPTM) is the key ground level driver executing ICT related programs. Therefore, its primary role is under the purview of the SUKNS. IDC has reference to community level initiatives which saw participation but overall the jurisdiction is limited to that scope.

 Public Access to Mechanism - As highlighted in the situational analysis, the permeation of ICT into society is pivotal. Depending on private sector initiatives alone will skew the societal growth based on vendor programs. Currently, the public has no clear access to the state mechanism as there is no key point of contact.

 Absence of a Champion – Based on IDC research, there is no champion to drive all ICT related programs for the state. This inherent problem will lead to a disconnect with the objectives of propagating the idea behind MSC 2.0. The current mechanism only empowers UPTM to support the drive for the public sector

 Permeation of ICT into the industry – In referencing the current state mechanism, the permeation of ICT into the industry will not be possible or concrete as the model only allows for industries to be reactive as opposed to being proactive. In addition, the presence of the different industry segments only allow for dialogues with no clear ICT vision in mind

 Limited growth programs – The current mechanism structure does not permit nor enable mass growth and adoption of ICT as there are no clear guidelines as well runner to achieve.

FIGURE 24

Summary of Gaps for Governance Structure

Source: IDC, 2010

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

TABLE 22

Root Cause Anal y s i s - G o v e r n a n c e

Base Event Chain Reaction Gap

The recommendations for UPTM to Status quo in terms of focus leading to No Clear ICT Champion for the state have increased autonomy and stronger growth within SUKNS focus beyond UPTM as part of the UPTM focus on SUKNS ICT strategic plan was not concluded in full

There is no clear strategic guide to Development focus are in silos having a Lack of cohesive interaction and/or govern the advancement of ICT in less widespread reach decision making on ICT for the state Negeri Sembilan

Source: IDC, 2010

Gap Analysis on ICT Environment

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

FIGURE 25

Addressing Gap Analysis for ICT Environment Approach

Source: IDC, 2010

Summary of Gap Analysis

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

TABLE 23

Overall ICT Environment Gap Analysis

Category Key Findings Impact Gap Analysis Preliminary Recommendation

ICT – Industry Access to broadband Imbalanced Moderate to high Taking into account (infrastructure) generally focused on development creating existing plans of more high density a lack of overall ICT rollout, emphasis populated areas. awareness, stifling the should be given in

Overall ICT Environment Gap Analysis

Category Key Findings Impact Gap Analysis Preliminary Recommendation

permeation of ICT and connecting all major thus limiting the growth townships. Access in of an economy rural areas can be a supported by ICT. Key co-op on planned e- development of ICT community centers companies will be on with targeted programs existing populated for growth. areas. This will stifle the growth overall as the vision so to grow each niche district.

ICT – Industry Quality of Service Key services offered Moderate to high State government to (infrastructure) (Speed of Internet) online or via the web look into stability and will be heavily affected speed of connectivity and confined to only to attract the basic e-Services. Not appropriate ICT based increasing the average FDIs into the state. speed will limit The top 3 concerns for creativity as the MNCs setting up in industry remains any location are status quo with no real security, stability and growth drivers availability.

ICT – Industry Synergy between e- Multiple access to Moderate to high Close cooperation (infrastructure) community centers broadband with no between State and other forms of clear growth stakeholders and internet access development plan will external parties to at worst confuse and ensure synergy in stifle individual development as well adoption and growth as follow up to ensure sustainable growth

ICT – Industry Driving broadband The focus of ICT Significant Identify clusters of (infrastructure) access players in the industry interest and is currently limited to corresponding content infrastructure players need. Map broadband as the provisioning of plan with the content access is seen as a needs as a overall cash cow. This strategy eventually does not address the second wave of growth limiting the content development players in the industry.

ICT – Industry High cost of Internet, This inherent limitation Moderate Possibility of subsidies (Accessibility) which is causing many automatically stifles or expanding access people to ignore the the growth of the ICT of free to use internet

Overall ICT Environment Gap Analysis

Category Key Findings Impact Gap Analysis Preliminary Recommendation

need to adopt it industry as the basic across the state. fundamentals are not addressed.

ICT – Industry There is no niche or The low level s of Significant Identify state key (Maturity/Awaren specialization, which maturity of the local unique areas for ess) has been ear-marked ICT industry has led to growth and going forward. the inability to craft a development of the Alignment between niche. This continues ICT Industry industry and to limit growth potential government on the including FDI/DDI as objectives and goals the state does not for the utilization of have a unique ICT ICT is poor proposition

ICT – Industry There is no vibrant ICT The industry is moving Significant Identify tie-ins which (Maturity/Awaren industry or wide- forward in growth can propel the industry ess) spread utilization of without the support with ICT as a key ICT across sectors and need of ICT. This enabler continues to put ICT in a position of non- relevance

ICT – Industry Lack of ICT skill sets Brain drain, poor Significant Joint Co-Op with IHLs (Resources/HR within the ICT industry demand for local to ensure that Skill Sets) in a specific niche or supply leads to a ICT relevancy is at the top specialization ecosystem which is list. State to also work dull towards creating a an overall ecosystem plan to reinvigorate the demand for ICT

ICT – Enabler Imbalance access to Industry plans by Moderate Taking into account (infrastructure) broadband district and planed existing plans of economy sectors are rollout, emphasis indirectly impacted if should be directed at access is limited designated industry zones

ICT – Enabler Quality of Service E-services offered by Moderate Provide facilities with (infrastructure) (Speed of Internet) organizations across strong SLAs allowing various industries will confidence to not grow if there is a providers lack of stability

ICT – Enabler Full potential of e- The goals of setting up Moderate Support (infrastructure) community centers e-community centers entrepreneurial go beyond the development provisioning of maximizing investment hardware and internet

Overall ICT Environment Gap Analysis

Category Key Findings Impact Gap Analysis Preliminary Recommendation

infrastructure. The on community centers current impact is no ICT growth translation as the facilities function merely as an internet gateway.

ICT – Enabler Pipe (Broadband) with The focus of players in Significant Leverage on growing (infrastructure) no content the industry is infrastructure and to currently limited to the create relevant content infrastructure players as the provisioning of access is seen as a cash cow. This eventually does not address the second wave of growth limiting the content development players in the industry.

ICT – Enabler High cost of Internet, Not all business Moderate Empower access to (Accessibility) causing disparity in organizations will see enable the 2nd-tier and adoption across the direct demand or 3rd-tier industry players industries especially need to leverage on SMBs ICT. Larger players in key sectors will obviously continue to spend on ICT infrastructure but the cash strapped SMBs will continue to put less of a priority. The impact will be the poor development of 2ndtier and 3rd-tier industry players

ICT – Enabler ICT seen as a The poor realization of Significant Provide education (Maturity/Awaren complementary role to value leads to overall programs at a tiered ess) everyday processes poor perception on ICT level allowing for rather than one which and the eventual lack progress and growth, can be used to simplify in ICT spending which and closing the digital processes stifles the growth of divide the ICT ecosystem

ICT – Enabler Alignment between Poor efficiencies and Moderate Consolidating roles (Maturity/Awaren government processes which lead and responsibilities ess) departments and to poor quality of and creating a strong agencies on the service to customer standard operating

Overall ICT Environment Gap Analysis

Category Key Findings Impact Gap Analysis Preliminary Recommendation

objectives and goals (rakyat) procedure as well as for the utilization of development programs ICT is poor and dialogue to ensure there is synergy

ICT – Enabler Resistances to Poor efficiencies and Significant Conduct change (Maturity/Awaren utilization due to processes which lead management ess) preference for manual to poor quality of programs to ensure processes within service to customer concerns are government (rakyat) addresses allowing for overall growth

ICT – Enabler There is no vibrant ICT ICT has been sidelined Significant Create niche areas of (Maturity/Awaren industry or wide- creating a perception industry focus as a first ess) spread utilization of only as one of the step for growth ICT across sectors many supporting followed by the functions to state promotion of ICT as a growth key subsector for not only enablement of the economy but for growth

ICT – Enabler Lacking in terms of a No single point of Significant Establish a one stop (Maturity/Awaren single point of contact contact, leading to no center ess) to champion the effort accountability and to grow ICT adoption coordinated direction

ICT – Enabler Lack of ICT skill sets The proliferation of ICT Moderate to High Coordinate initiatives (Resources/HR within the government is limited to basic to stem poor utilization Skill Sets) sector, makes it functions and within and education to difficult to fully adopt departments which ensure increase ICT see value awareness

ICT – Society Imbalance access to Imbalanced societal Moderate Continue with the roll (infrastructure) broadband -creating a uptake creating a out projects with larger digital divide larger digital divide emphasis on limiting coordinated limiting a coordinated connecting rural areas growth to the overall growth to the overall state state

ICT – Society Quality of Service Missing out on a pull Moderate Drive quality of service (infrastructure) factor that will as a standard and encourage expected requirement development of district based information societies.

ICT – Society Synergy between e- The lack of synergy Moderate Close cooperation (infrastructure) community centers does not give citizens between State and other forms of a clear picture on the stakeholders and

Overall ICT Environment Gap Analysis

Category Key Findings Impact Gap Analysis Preliminary Recommendation

internet access available paths to ride external parties to the ICT bandwagon. ensure synergy in Impact will be seen in development as well those that decide to as follow up to ensure ignore ICT altogether sustainable growth through the coordination of key programs

ICT – Society High Cost of Internet State broadband Moderate Create multiple (Accessibility) threaten broadband penetration plans are channels of access penetration efforts under threat allowing the building awareness and eventual subscription access to broadband

ICT – Society Availability of matching Devices are seen as Moderate Support efforts to (Accessibility) devices to promote one size fits all, provide device broadband access causing an impact of accessibility that are irrelevance and non relevant adoption

ICT – Society No champion to take No coordinated Significant Create a one stop (Maturity/Awaren ownership of the planned programs agency which has the ess) development of an which enabled the charter to ensure the information based preparation, readiness state wide overall society and growth towards development and being an information growth based society

ICT – Society Lack of awareness Strong indication of the Significant Execute awareness (Maturity/Awaren leading to poor irrelevance of ICT programs which are ess) utilization of ICT in which stifles growth themed to address daily life and adoption stigmas related to ICT

ICT – Society ICT Programs do not Mass availability of the Significant Execute tiered (Maturity/Awaren have continuity or status quo limits education programs to ess) "level". This limits expertise which drives mature the level of progression and new synergies in the digital literacy growth local market

ICT – Society Lack of ICT Skills to Workforce supply is Significant Execute 101 (Resources/HR utilize basic functions hampered by a lack of workshops to supply Skill Sets) on the computer ICT related capabilities fundamental skills

Source: IDC, 2010

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

Overview

IDC sees the ICT industry as the universe of different providers across the ICT value chain serving the ICT needs of the state as well as beyond. In more mature information societies, a clear distinction can be drawn across the different providers across the value chain. IDC sees the providers playing varying fields from the upstream, midstream and downstream. The upstream represents the ecosystem players whose core function is on the manufacture, development and production of ICT products. The Midstream looks at the selling, distribution and implementation and the downstream looks at activities post sales activities such as technical support.

To understand the current state of the ICT industry IDC looks at understanding the landscape across the value chain.

The key source of information for society was derived from the following sources:

 Negeri Sembilan State Government Workshop

 Industry survey

IDC sees the development and maturity of the ICT industry as a pivotal indicator on the ability to achieve large scale ICT success. A less mature ICT industry will dampen the efforts to permeate ICT across the state and as such the measures of growth should be targeted at building the ICT industry.

Current Scenario

IDC's research points to a non-vibrant ICT ecosystem. There are pockets of companies focusing on different areas of ICT but having a holistic, complete and resource rich ecosystem was not evident.

A clear example of the state of the local ICT industry is exemplified by the participation in the World ICT Conference of 2008. The directory listed over 2318 ICT companies for the country with only 7 listed under Negeri Sembilan. From the 7 the bulk was institutions of higher learning with the small remainder focused on trade and distribution.

IDC notes that there are only 8 MSC status companies in Negeri Sembilan. When comparing this to the overall number of MSC status companies, it is apparent that Negeri Sembilan is behind with regards to growth.

MSC Status Companies in Negeri Sembilan

Company Name Focus

StarTag Sdn Bhd R&D Wireless/Smart Card

Fine Digital Studio Sdn Bhd Animation/Post production

INTI College Institution of Higher Learning

Nilai International College Institution of Higher Learning

Kolej Negeri Institution of Higher Learning

Kolej Lagenda Institution of Higher Learning

PTPL Seremban Institution of Higher Learning

Cosmopoint Sdn Bhd Institution of Higher Learning

Source: IDC, 2011

IDC's key observations as detailed in the Industry survey

 Focus cluster is on SMB type organization where the bulk has about 20 employees.

 Not all ICT organizations have a website.

 IDC has uncovered that a good 45% of organizations train staff for 1 day or less in a year.

 Lack of demand – It is noted that within the ICT industry of Negeri Sembilan there is a resounding lack of demand to use ICT as a strategic driver as customers and suppliers do not request or see the need

Asse ssment

With regards to the above, IDCs assessment on the ICT industry is seen from a holistic level. IDC notes the entire ICT industry has to be examined from a an angle of a complete holistic ecosystem.

IDCs view with regards to the gap is as follows.

 The majority of ICT companies in Negeri Sembilan are smaller type firms. IDC sees the lack of spread across different type of organizations as a hindrance to overall ICT permeation and growth. With the smaller type firms being the large majority, scalability and moving up the value chain will be a constant issue.

 The very small number of MSC type companies in Negeri Sembilan is an indication of the level of activeness in the state. IDC notes that even with the

80 # ©2010 IDC small number, there is a relatively diverse spread which inhibits growth. The fact that there is no cluster limits available resource to grow. For example there is a small number of companies focusing on animation and as such graduates will likely opt for courses with more job prospects.

 Given that not all ICT companies have a website; IDC is of the inclination to believe that business is currently running at status quo with no real driver to change. IDC's survey uncovered that even within the ICT industry itself, there is no 100% permeation of ICT as exemplified by the availability of websites. Further drill down indicates that there exists organization which focuses on just low level break-fix support.

 IDC sees training as a pivotal part to grow the ICT industry, given that ICT organizations themselves on average generally train less than a 1 day a year drives ICT professionals into a silo's limiting career growth. Without a change in culture IDC sees it hard for the ICT industry to grow as the readiness, exposure and expertise of an ICT professional is growing at a slow rate.

 The lack of demand indicates the maturity of the industry as a whole beyond ICT. This lack of demand represents that there is not vibrancy in the ICT ecosystem. This in turn is seen as an inhibitor for growth as there is no real driver to or need for ICT providers to solution products for the market.

ICT Industry in the context of Cyber Cities and Cyber Centre initiatives

With the above points in play IDC notes that strategic efforts need to be in place to build the ICT industry to the next level. As the initiatives related to cybercentres generally play a pivotal part as an overarching ICT growth strategy under MSC Malaysia 2.0, the following segment looks at the expected performance standard required.

The performance areas that the report will look into are based on those practiced in the MSC Malaysia Performance Standards for Cyber cities and Cyber centers document provided by MDeC. The performance areas covered are:

1. Info structure

2. Electricity Supply

3. Water

4. Transportation

5. Natural Environment

6. Security and Safety

7. Customer Service Quality

©2010 IDC # 81 It is important to contextualize efforts to build the above accordingly in line with efforts to create initiatives on Cyber Centres and Cyber Cities. With that the table below details out the key performance standards which need to be considered.

TABLE 25

MSC Malaysia Performance Standards Requirements

Performance Parameters Cyber City Standard Cyber Center Standard

Telecommunication Infrastructure & Services

Availability of CMDF room for a Available Available multiple licensed operator environment

Availability of reserved areas or Available Not Applicable secure spaces to accommodate multiple telecommunication providers

Availability of inside plant facilities Available Available to support building internal cabling system with sufficient capacity for a multiple operator environment

Availability of building access Available Available infrastructure for telecommunication redundancy

Availability of fiber optic as the Available Available preferred internal wiring for data, or a minimum of CAT 5e or equivalent standard

No exclusivity agreement limiting Available Available other licensed operators' ability to offer services directly to end users

Availability of all range of voice, Available Available data/internet services to all customers

Availability of broadband access to Minimum 4 Mbps Minimum 2Mbps per subscriber business customers for data/internet services

Full coverage by all local mobile Minimum -95 dBm Minimum -95 dBm networks within all accessible areas (indoors and outdoors)

Availability of 3G coverage within Available Available all accessible areas indoors and

MSC Malaysia Performance Standards Requirements

Performance Parameters Cyber City Standard Cyber Center Standard

outdoors*

Broadband Access Service

Compliance to MCMC Available Available Determination Broadband Quality of Services (QoS).

Service Lead Time

Maximum service provision 24 hours 24 hours installation lead time for basic telephone upon confirmed order

Maximum service provision 24 hours Not Applicable installation lead time for Domestic Free Phone upon confirmed order

Maximum service provision 7 working days Not Applicable installation lead time for International Free Phone upon confirmed order

Maximum service provision 14 Working days 14 Working days installation lead time for Domestic private leased circuits upon confirmed order

Maximum service provision 30 working days 30 working days installation lead time for International private leased circuits upon confirmed order (half circuit- local portion)

Maximum service provision 16 Working days Not applicable installation lead time for Internet access leased circuit upon confirmed order

Service Availability

Minimum service availability for all 99.9% 99.9% services per month

Service Restoration and Support Available Available Availabilities of 24 hours Telcos customer service centre

Billing and Network Management

MSC Malaysia Performance Standards Requirements

Performance Parameters Cyber City Standard Cyber Center Standard

Maximum fault report 1 hours 1 hours acknowledgement

Maximum fault restoration 4 hours 4 hours

Maximum reconfiguration of 7 days 7 days switched services

Billing for all services Monthly Monthly

Maximum bill dispute resolution 1 month 1 month

Infrastructure

Availability of redundant incoming Available Available feeders to enterprise building or site

Availability of generator set back Available Available up and/or Uninterruptable Power Supply (UPS) system to cover the entire the building

Availability of ATS from primary Available Available electricity supply to secondary supply*

Availability of Automatic Transfer Available Available Switch (ATS) from electricity supply (Primary or Secondary) to generator set

Operation and Maintenance

Maximum no of power interruptions <3 <6 per year

Maximum restoration time of back- <15 seconds <15 seconds up power supply to enterprise with auto switch over from primary to secondary source or UPS system

Maximum restoration time of back- <15 seconds <15 seconds up power supply to enterprise with auto switch over from main source (primary or secondary) to generator set

Minimum notification of scheduled / 7 Working days 7 Working days

MSC Malaysia Performance Standards Requirements

Performance Parameters Cyber City Standard Cyber Center Standard

planned supply interruption

Electricity Supply Connection 2 Working days 2 Working days Maximum lead time for new supply connection: Low Voltage – Normal/Bulk Supply

Maximum lead time for new supply 5 Working days 5 Working days connection: Medium Voltage

Service Availability

Minimum electricity service 99.9% (Maximum allowable 99.9% (Maximum allowable availability interruption of electricity supply - 45 interruption of electricity supply - 45 minutes per month) minutes per month)

Support and Ancillary Services

Maximum lead time for change of 1 working days 1 working days tenancy

Maximum Meter Testing & 2 working days 2 working days Inspection lead time

Maximum change of Meter lead 3 working days 3 working days time

Electricity Billing Monthly Monthly

Maximum Bill Dispute Resolution 1 month 1 month

Availabilities of 24 hours Electricity Available Available Provider service centre

Response time/Feedback to 24 hours 24 hours Consumers

Water Supply

Availability of service level Available Available agreement or client charter on water supply services

Transportation

Availability of multiple mode of ≥ 2 ≥ 2 public transport such as taxi, bus, train, LRT, ERL, commuter

MSC Malaysia Performance Standards Requirements

Performance Parameters Cyber City Standard Cyber Center Standard

Taxi Operation Hours 24 Hours 24 Hours

Natural Environment Available Available Environmental compliance / initiatives

Security and Safety

Availability of Emergency Available Available Response Plan (ERP)

Response time of local police 10 minutes 15 minutes

Response time of local ambulance 10 minutes 15 minutes

Response time of local fire brigade 10 minutes 15 minutes

Availability of multiple security ≥ 2 ≥ 2 measures at the building / site

Customer Service Quality

Availability of dedicated One Stop Available Available Centre with 24 hours accessibility

Availability of Client Charter Available Available

Implementation of Customer Available Available Relationship Management

Implementation of ISO 9001 Available Available Certified Cybercity Management

Source: MSC Malaysia Performance Standards

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

Global & Regional B est Practices

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

South Australia

The specific objectives for the development of ICT within the region of South Australia were as follows;

 To create South Australia's ICT Industry as an economic powerhouse for Australia

 To transform all South Australian industries via ICT for improvement and enhancement

 ICT as a means and fundamental for success in the digital age

The development of ICT within South Australia focused primarily on the creation of a robust ICT industry as a means to support the development and enhancement of its traditional sectors to increase productivity and quality by creating better products and services. The promotion in the utilization of ICT across these key sectors is to eventually reap the benefits of an innovative application of technology and recognize the crucial role ICT plays in the state's economy. This transformation process took into account public sector (education), all economic sectors, and society.

 The over-riding granular themes in achieving these goals were identified as follows;

 Increase linkages between ICT companies and non-ICT sectors

 Improve linkages between the state Government and the ICT sector

 Develop an effective export market access program

 Improve investment opportunities in ICT

 Improve collaboration and R&D between industry & IHLs

 Increase business and entrepreneurial skills within the ICT sector with particular emphasis on those companies targeting national and global markets

 Implement a strategically based ICT skills workforce development program, for all sectors

©2010 IDC # 87 With this outlined, IDC has drawn inferences and comparisons between South Australia's ICT goals and objectives, and mapped it alongside Negeri Sembilan's own ICT objectives. The table below exemplifies this comparison;

TABLE 26

Comparison of ICT Goals & Objectives between South Australia & Negeri S e m b i l a n

South Australia Goals & Objectives Negeri Sembilan Goals & Objectives

To create South Australia's ICT Industry as an economic No direct matching but there is a focus to reinvent the overall powerhouse for Australia focus of ICT and the accompanying ecosystem

To transform all South Australian industries via ICT for To use ICT as a key enabler to support the growth of improvement and enhancement industries

ICT as a means and fundamental for success in the To ensure adequate infrastructure, policies and programs are digital age created to ready the state for the digital age

Source: IDC, 2010

Overview of South Australia Initiatives

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

South Australia: ICT Industry as an Economic Powerhouse

This initiative included all ICT products and services companies, which formed the engine of growth for productivity and competitiveness for industry and government. It was an all encompassing plan which took into account human capital development, SMEs, and ICT systems in attempting to heighten creativity, innovation and productivity within the state.

 Build Capacity for Growth – To provide business skills training, mentoring and business growth programs to enable future growth. This initiative also encourages local ICT companies to work alongside IHLs and government in R&D and development of ICT products/services.

 Elevate to Compete Globally – To identify and support those areas in which the state has strengths and a solid foundation for international success. This includes identification of an opportunity and niche to leverage upon to build on South Australia's ICT reputation on a global scale.

ICT: Transforming all South Australian Industries

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

88 # ©2010 IDC  Invest in ICT – By encouraging all South Australian businesses to utilize ICT to improve overall business performance by "opening up" and re-engineers processes and looking long-term as the benefits of ICT is not usually seen immediately. This "re-engineering" should take place within both the government and industry sector, so both state and industry are aligned with similar goals of ICT as a strategic enabler for improving business productivity.

 Foster Collaboration – By promoting connections and collaborations between the ICT industry and research institutions in the region. The research institutions in the South Australia region already conduct programs to encourage collaboration between researchers and industry, providing small start-ups, large corporations and community service organizations access to high quality, experienced academic researchers, valuable infrastructure and global information sources.

ICT in South Australia: Fundamentals for S ucce ss

This goal was identified to create a skillful, innovative and productive workforce, coupled alongside state of the art infrastructure as a vital support structure to the South Australian industry to utilize ICT to its advantage.

 Plan to Provide Skills & Workforce – ICT skills are in strong demand both internationally and domestically in Australia. With South Australian companies indicating the need and want to hire more ICT skilled employees, the state government has to crucially look into the development and preparation of a ready talent pool to feed into this demand. The primary focus of these programs will be to create a workforce based on the needs of firms working in technology intensive sectors. South Australia has identified a potential shortage of these skill sets in the medium to long term, and has introduced means to foster talent development in ICT within the state.

 Build on Infrastructure – As the main base of which ICT is both developed and delivered; there is a need to further proliferate broadband telecommunications within the state, as an essential platform for the delivery and success of businesses in the modern digital age. Wireless computing, new mobile services and high performance computing infrastructure is introduced as a crucial area of infrastructure development within the state in moving forward.

Rationale for Benchmark between South Australia and Negeri Sembilan

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

TABLE 27

Rationale for Benchmark

South Australia, Australia Negeri Sembilan, Malaysia

Ear-marked ICT as a crucial indicator for further growth Has not ear-marked ICT as a crucial indicator for success but

Rationale for Benchmark

South Australia, Australia Negeri Sembilan, Malaysia

and proliferation of industry's impact on overall GDP for in recent times stepped up efforts to permeate ICT adoption the state

Recognized the need for a vibrant ICT industry to prepare Does not have an existing entry point to revitalize the ICT the state for the digital age, fostering collaborating and industry but is in search for the right focus to leverage and innovation grow

A state strong in Manufacturing, Education and Strong focus on Manufacturing, Services and Agriculture and Healthcare – and sees ICT as a key enabler for these sees ICT as supporting tool to drive success and growth industries

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

Source: IDC, 2010

Ireland

The specific objectives for the advocacy and development of ICT in Ireland are listed as follows;

 Raise awareness on the importance of the ICT sector to the Irish economy in all sections of society and economic sectors

 Ensure that Ireland is an attractive location for ICT investment by both foreign and indigenous companies

 Promote an environment which encourages innovation

 Develop links between the component parts of the ICT industry in Ireland, both indigenous and foreign owned

The over-arching vision of the implementing and heightening of ICT within the Irish environment is to ensure that the country retains and extends a global leadership role in ICT. The strategic imperatives and vision for the enhancement of ICT in Ireland is as follows;

 Government, agencies and the public see the ICT industry as one of the most important sectors in the country

 That Ireland has the necessary skills for a vibrant and sustainable ICT Industry

 That Ireland is regarded as a competitive location for ICT, both domestically and internationally

 That Ireland becomes a genuinely recognized knowledge and e-enabled economy

 That the ICT sector in Ireland improves its access to, and interaction with, the final customer through sales and marketing expertise via initiated programs

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

TABLE 28

Comparison of ICT Goals & Objectives between Ireland & Negeri Sembilan

Ireland Goals & Objectives Negeri Sembilan Goals & Objectives

That Ireland has the necessary skills for a vibrant and Focused on developing a society which will be able to sustainable ICT Industry participate and leverage on the digital age

Government, agencies and the public see the ICT industry as No direct matching on the crucial demand for ICT but in recent one of the most important sectors in the country times stepped up efforts to permeate ICT adoption

That the ICT sector in Ireland improves its access to, and To ensure adequate infrastructure, policies and programs are interaction with, the final customer through sales and created to ready the state for the digital age marketing expertise via initiated programs

Source: IDC, 2010

Overview of Ireland Initiatives

The following section outlines the key initiatives undertaken by the Irish state government in actualizing the goals in transforming the region into a key ICT based hub for the UK;

Government, agencies and the public see the ICT industry as one of the most important sec tors in the country

 Develop a core message that can be used as a community template

 Liaise an work with relevant parties in the Government and state agencies to promote the positive aspects of the ICT sector and to outline key issues

 Foster relationships with key technology journalists to ensure they have easy access to spokespeople to advocate ICT in Ireland

That Ireland has the necessary skills for a vibrant and sustainable ICT Industry

 Promote ICT as a career of choice

 Develop a robust policy on ICT and education

 Develop relationships with the Department of Education and co-operate on the formulation of policy on ICT usage in the classroom as an education tool

 Identify shortfalls in the supply of Irish graduates and alternative sources of skills

That Ireland is regarded as a competitive location for ICT, both domestically and internationally

 Lobby the Government and regulators on competitive issues, such as energy and wage costs.

 Lobby the Government to ensure that the Irish tax regime remains competitive for both foreign-direct investment (FDI) and the indigenous sector.

 Track the development of new EU and Irish regulations and their impact on the ICT sector.

 Develop marketing materials (with the IDA) to promote Ireland as a location of choice for new or further investment by foreign-owned ICT companies.

 Work with the Revenue Commissioners to ensure that Ireland has an effective trade policy for exporting companies.

 Develop strategic policies in relation to creating scale in the indigenous ICT sector with the Irish Software Association.

That Ireland becomes a very attractive place in which to undertake research and development

 Lobby Government and state agencies to ensure that there is a national focus on applied R&D

 Work with state agencies and the Revenue Commissioners to develop greater suite of supports for companies investing in R&D in Ireland

 Develop specific actions to encourage greater commercialization of research

 Address the ‘cultural disconnect’ between industry and academia

 Lobby the European Commission to ensure that there is greater access to EU Framework funding.

That Ireland becomes a genuinely recognized knowledge and e - enabled economy

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

 Co-operate with the Government to expand on-line public services.

 Develop relationships with the Department of Finance in the area of public procurement policies.

 Incorporate the EU policy on the information society ‘i2010 - A European information society for growth and employment’ into Irish Government policy

That the ICT sector in Ireland improves its access to, and interaction with, the final customer through sales and marketing expertise via initiated programs

 Co-operate with relevant state agencies to develop a greater suite of support for companies investing in sales and marketing in Ireland.

 Collaborate with the education sector to encourage a greater focus on sales and marketing capabilities in engineering and technology courses.

Rationale for Benchmark between Ireland and Negeri Sembilan

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

TABLE 29

Rationale for Benchmark

Ireland Negeri Sembilan, Malaysia

Attempting to heighten collaboration between The state government is embarking on close public-private government and industry to further propel ICT as a key collaborations which has the potential to propel the component and economic sector for the country development of ICT

ICT seen as a crucial enabler for the education sector, in Nilai was dubbed education valley, and there is strong creating a robust policy for ICT utilization in schools indication of ICT awareness and usage in this sector

Promoting greater collaboration between IHLs and No direct matching but the IHL's have strived for MSC status industry via ICT R&D

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

Source: IDC, 2010

Key Findings for Benchmark Regions

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

©2010 IDC # 93 viewing the state of Negeri Sembilan, in formulating key recommendations, where relevant, in moving forward. The shaded columns are those key findings which were similar across both Ireland and South Australia, and can be considered as a crucial component in building the base of ICT development within any country. The non- highlighted components are the customized goals of the regions based off the base initiatives in developing such an industry.

TABLE 30

Key Findings for Benchmark Regions

Ireland South Australia, Australia

ICT seen as a crucial means in enabling key economic ICT utilized as a means to improve on society quality of life sectors and heightening the attractiveness of Ireland and industry enablement

ICT development to begin in schools, and policies should The creation of a vibrant ICT industry via adequate support be drafted and implemented to encourage utilization of structure and eco-system is crucial for the sustainability and ICT in schools spill-over effect of ICT benefits to other sectors

R&D as a key component for sustainability of ICT R&D as a key component for sustainability of ICT companies companies

Government interactions between industry and society Government interactions between industry and society have to have to be heightened to align vision of ICT for the region be heightened to align vision of ICT for the region

Development of ICT skill sets is crucial via programs and Development of ICT skill sets is crucial via programs and initiatives initiatives

Source: IDC, 2010

Recommendations

Overview

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

FIGURE 26

IDCs approach to attaining the ICT vision of Negeri Sembilan

ICT Vision of the State of Negeri Sembilan

Address gaps - To Reach Vision

Address gaps - Current Scenario

Source: IDC, 2010

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

ICT Vision of Negeri Sembilan

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

The ICT Vision of the state of Negeri Sembilan is to be a society that fully leverages on ICT by e-enabling key industry sectors for growth and by connecting all walks of life through the establishment of a state-wide mechanism built on ICT.

In addressing this vision and aligning it to the MSC Malaysia 2.0 model, IDC recommends the translation to the following key tenants.

Vision for ICT as an Industry

To be the first fully e-connected state in Malaysia by reinvigorating the local ICT industry through the establishment of a state wide digital portal.

Vision for ICT as an Enabler

To be a local leader in crossing the digital chasm by e-translating complex value chains for the e-enablement of the state's key industry sectors- tourism, manufacturing and agriculture.

Vision for ICT for Society

To transform Negeri Sembilan into a society that has ubiquitous use of ICT

FIGURE 27

Translation of state ICT Vision to MSC Malaysia 2.0 pillars

Source: IDC, 2010

96 # ©2010 IDC In order to reach the proposed aspired vision of the state, IDC has outlined the necessary building blocks as per figure 1 above. The idea is essentially to address current gaps based on existing plans and where possible work in parallel to add the next building block to address the gaps for the vision.

Address gaps - Current Scenario

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

TABLE 31

Map of Problem Areas Across MSC Malaysia 2.0 Pillars

Fundamentals ICT – Industry (A) ICT – Enabler (B) ICT – Society (C)

Infrastructure (1)  Access to broadband  Imbalance access to  Imbalance access to generally focused on more broadband (B.1.1) broadband -creating a high density populated larger digital divide limiting areas. (A.1.1)  Quality of Service (Speed coordinated growth to the of Internet) (B.1.2) overall state (C.1.1)  Quality of Service (Speed of Internet) (A.1.2)  Full potential of e-  Quality of Service (C.1.2) community centers (B.1.3)  Synergy between e-  Synergy between e- community centers and  Pipe (Broadband) with no community centers and other forms of internet content (B.1.4) other forms of internet access (A.1.3) access (C.1.3)

 Driving broadband access (A.1.4)

Accessibility (2)  High cost of Internet,  High cost of Internet,  High Cost of Internet which is causing many causing disparity in threaten broadband people to ignore the need adoption across industries penetration efforts (C.2.1) to adopt it (A.2.1) especially SMBs (B.2.1)  Availability of matching devices to promote broadband access (C.2.2)

Maturity/Awareness (3)  There is no niche or  ICT seen as a  No champion to take specialization, which has complementary role to ownership of the been ear-marked going everyday processes rather development of an forward. Alignment than one which can be information based society between industry and used to simplify processes (C.3.1) government on the (B.3.1) objectives and goals for  Lack of awareness the utilization of ICT is  Alignment between leading to poor utilization poor (A.3.1) government departments of ICT in daily life (C.3.2) and agencies on the  There is no vibrant ICT objectives and goals for  ICT Programs do not have industry or wide-spread the utilization of ICT is continuity or "level". This utilization of ICT across poor (B.3.2) limits progression and sectors (A.3.2) growth (C.3.3)  Resistances to utilization

Map of Problem Areas Across MSC Malaysia 2.0 Pillars

Fundamentals ICT – Industry (A) ICT – Enabler (B) ICT – Society (C)

due to preference for manual processes within government (B.3.3)

 There is no vibrant ICT industry or wide-spread utilization of ICT across sectors (B.3.4)

 Lacking in terms of a single point of contact to champion the effort to grow ICT adoption (B.3.5)

Resources/HR Skill Sets  Lack of ICT skill sets  Lack of ICT skill sets  Lack of ICT Skills to utilize (4) within the ICT industry in a within the government basic functions on the specific niche or sector, makes it difficult to computer (C.4.1) specialization (A.4.1) fully adopt ICT (B.4.1)

Source: IDC, 2010

The matrix identifies the key problem areas across both the key tenants of MSC 2.0 as well as the 4 mapped fundamentals of infrastructure, accessibility, maturity/awareness and resources/HR Skills.

Moving into the details, the problem areas are then mapped into key Major ICT Themes. Based on IDCs research and the aspirations of the state of Negeri Sembilan, IDC notes that 4 Major ICT Themes have emerged. The emergence of these themes is driven as a combination of either current state aspirations and/or gaps which currently exist.

 Broadband for All

IDC notes the current and aspired plans of the state which highlights the importance of the proliferation of broadband from both the angle of supply and adoption. While there are various current pain points ranging from general availability and quality to actual adoption IDC notes the importance the state has placed on Broadband. IDC's recommendations takes into account 2 factors, what needs to be done to support the proliferation of Broadband and what will be the next step forward for the state once the Broadband aspirations are met.

 Industry Empowerment

This Major ICT theme takes into account the current state of industry sectors in Negeri Sembilan and focuses on the plans the state has to drive the sectors forward. It also takes into account the current role of ICT as part of the overall growth plan and the gaps which are in existence. IDCs recommendations take into account 2 factors, what needs to be done to support the industry growth by key sectors and what will be

 Content Connection

The idea behind Content Connection relates to the current state of digital content creation in Negeri Sembilan. IDC notes the efforts driven by the state government on Broadband penetration and notes that key issues arise when there is infrastructure in place but there is a lack of content to drive adoption. IDCs recommendations take into account 2 factors, what needs to be done to support the proliferation of digital content creation and what will be the next step forward for the state once an ecosystem of content creation is in place.

 Digital Awareness

The theme of Digital Awareness takes into account the current scenario of ICT awareness and the current efforts taken to ready the state in line with aspirations to move into a knowledge economy. Current key issues range from general awareness all the way to the availability of development programs. IDCs recommendations take into account 2 factors, what needs to be done to support and to grow Digital Awareness and what will be the next step forward for the state once the state has the right fundamentals in place.

The Major ICT themes, brief description and map to problem areas are outlined below

TABLE 32

Major ICT Themes

Major ICT Themes IDCs alignment to Vision Description Mapping to Problem Areas

Broadband for All Proliferation of Broadband This major theme looks to A.1.1 access to reach all of Negeri address key issues currently Sembilan limiting broadband A.1.2 penetration across the state with aspiration to transform A.1.3 access and connecting the entire state A.1.4

A.2.1

B.2.1

C.1.1

C.1.2

C.1.3

C.2.1

C.2.2

Major ICT Themes

Major ICT Themes IDCs alignment to Vision Description Mapping to Problem Areas

Industry Empowerment Achievement of GDP targets This major theme looks to A.3.1 by key industries address key issues currently hindering the leveraging of B.1.1 ICT as strategic tool to drive for industry growth B.1.2

B.1.3

B.3.1

B.3.2

B.3.3

B.3.4

B.3.5

Content Connection Repositioning Negeri This major theme looks at the A.3.2 Sembilan as a key state transformation of the government along with the B.1.4 state through digital content creation

Digital Awareness Preparing the citizens to This major theme looks at A.4.1 participate and leverage the addressing the issue of digital age digital e-literacy from a B.2.1 holistic point of view inculcating ICT as a key B.2.2 aspect of rakyat in Negeri Sembilan B.4.1

C.3.1

C.3.2

C.3.3

C.4.1

Source: IDC, 2010

Major ICT Themes building up to MSC Malaysia 2.0 pillars

ICT Vision of the state of Negeri Sembilan The ICT Vision of the state of Negeri Sembilan is to be a society that fully leverages on ICT by e-enabling key industry sectors for growth and by connecting all walks of life through the establishment of a state-wide mechanism built on ICT.

ICT as an Enabler ICT as an Industry To be local leader in crossing the ICT for Society To be the first fully e-connected state in digital chasm by e-translating To transform Negeri Malaysia by reinvigorating the local ICT complex value chains for the e- Sembilan into a industry through the establishment of the first enablement of the state's key society that has state wide digital portal. industry sectors- tourism, ubiquitous use of ICT manufacturing and agriculture. .

Industry Broadband for All Content Connection Digital awareness Empowerment

Source: IDC, 2010

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

Initial list of recommended programs based on Major ICT Themes

Major ICT Theme Problem Area Initial Recommendations MSC 2.0 & Fundamental map

Broadband For All Imbalance access to Fortify industrial districts with ICT-I / Infrastructure broadband (A.1.1) high speed broadband & create increase access across the state (A.1.1-A)

Quality of Service (A.1.2) Establish a District ICT-I / Infrastructure Broadband council to grow broadband access in key areas (A.1.2-A)

Synergy between e- Establish a state wide ICT-I / Infrastructure community centers and other broadband council (A.1.3-A) forms of internet access (A.1.3) Maintain a broadband heat map (A.1.3-B)

Driving broadband access Establish Public Broadband ICT-I / Accessibility (A.1.4) space (A.1.4-A)

High Cost of Internet (A.2.1) Maintain a broadband heat ICT-E / Infrastructure map (A.2.1-A)

Expand Public Private Partnerships (A.2.1-B)

High cost of Internet, SMB empowerment through ICT-E / Accessibility causing disparity in adoption the provisioning of affordable across industries especially broadband as well as other SMBs (B.2.1) ICT infrastructure (B.2.1-A)

Imbalance access to Expand existing rollouts ICT-S / Infrastructure broadband -creating a larger (example 1NS Wireless city, digital divide limiting Hotspots etc) (C.1.1-A) coordinated growth to the overall state (C.1.1) Public ICT awareness programs (C.1.1-B)

Quality of Service resulting in Establishment of smart ICT-S / Infrastructure missed opportunities to homes (C.1.2-A) create a pull factor that will encourage development of Appointing an OSA (C.1.2-B) district based information societies (C.1.2)

Synergy between e- State wide broadband council ICT-S / Infrastructure community centers and other for planning and coordination forms of internet access does (C.1.3-A)

Initial list of recommended programs based on Major ICT Themes

Major ICT Theme Problem Area Initial Recommendations MSC 2.0 & Fundamental map

not give citizens a clear Establish a District picture on the available paths Broadband council to to ride the ICT bandwagon champion local access (C.1.3) (C.1.3-B)

High Cost of Internet threaten Maintain a broadband heat ICT-S / Accessibility broadband penetration efforts map (C.2.1-A) (C.2.1) Expand Public Private Partnerships (C.2.1-B)

Availability of matching Subsidized PCs (C.2.2-A) ICT-S / Accessibility devices to promote broadband access (C.2.2) PC leasing program (C.2.2- B)

Industry Empowerment There is no niche or ICT empowerment specialization, which has workshops (A.3.1-A) been ear-marked going forward. Alignment between Development of industry industry and government on clusters (A.3.1-B) the objectives and goals for the utilization of ICT is poor (A.3.1)

Imbalance access to Fortify industrial districts with ICT–E / Infrastructure broadband (B.1.1) high speed broadband & create increase access across the state

(B.1.1-A)

Empower SMBs with access (B.1.1-B)

Quality of Service (B.1.2) Establish mini-cybercentre ICT–E / Infrastructure (B.1.2-A)

Appointing an OSA (B.1.2-B)

Achieving Full potential of e- ICT Desa Program (B.1.3-A) ICT–E / Infrastructure community centers (B.1.3)

ICT seen as a Tiered capability ICT-E/ Maturity/Awareness complementary role to development programs everyday processes rather (B.3.1-A) than one which can be used to simplify processes (B.3.1) ICT empowerment workshops (B.3.1-B)

Initial list of recommended programs based on Major ICT Themes

Major ICT Theme Problem Area Initial Recommendations MSC 2.0 & Fundamental map

Resistances to utilization due Pembudayaan ICT kerajaan ICT-E/ Maturity/Awareness to preference for manual (B.3.3-A) processes within government (B.3.3) ICT proficiency test (B.3.3-B)

There is no vibrant ICT Access @ Negeri Sembilan ICT-E/ Maturity/Awareness industry or wide-spread (B.3.4-A) utilization of ICT across sectors (B.3.4) ICT Empowerment for the Agriculture Industry (B.3.4-B)

ICT Empowerment for the Manufacturing Industry (B.3.4-C)

ICT Empowerment for the Tourism Industry(B.3.4-D)

Lacking in terms of a single Appoint a one stop center ICT-E/ Maturity/Awareness point of contact to champion (B.3.5-A) the effort to grow ICT adoption (B.3.5)

Content Connection There is no vibrant ICT Industry 2.0 - Digital ICT-I/ Maturity/Awareness industry or wide-spread empowerment (A.3.2-A) utilization of ICT across sectors (A.3.2)

Driving broadband access District level content (B.1.4- ICT-E/ Infrastructure (B.1.4) A)

Digital Awareness Lack of ICT skill sets within Industry training programs ICT-I/ Resources/HR the ICT industry in a specific (A.4.1-A) niche or specialization (A.4.1) IHL subject design (A.4.1-B)

Bridging Access to the 1 NS Rakyat Portal (B.2.2-A) ICT-E/ Accessibility government (B.2.2)

Lack of ICT skill sets within Industry training programs ICT-E/ Resources/HR the ICT industry in a specific (B.4.1-A) niche or specialization (B.4.1) IHL subject design (B.4.1-B)

No champion to take Establish a one stop center ICT-S/Maturity/Awareness ownership of the (C.3.1-A) development of an information based society

Initial list of recommended programs based on Major ICT Themes

Major ICT Theme Problem Area Initial Recommendations MSC 2.0 & Fundamental map

(C.3.1)

Lack of awareness leading to Taska 2.0 @ Pre-school ICT-S/Maturity/Awareness poor utilization of ICT in daily (C.3.2-A) life (C.3.2) ICT friends @ Primary School (C.3.2-B)

Teen Zone 2.0 @ Secondary School (C.3.2-C)

Warga Emas Warga Maju (WTWM) @ Retirement (C.3.2-D)

ICT Programs do not have Tiered capability ICT-S/Maturity/Awareness continuity or "level". This development programs limits progression and growth (C.3.3-A) (C.3.3)

Lack of ICT Skills to utilize ICT 101 program (C.4.1-A) ICT-S/Resources/HR basic functions on the computer (C.4.1)

Source: IDC, 2010

Address gaps - To Reach Vision

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

TABLE 34

Recommendations to attain ICT Vision of the State

Vision Remarks Recommendation

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

 Strong empowerment on the west

Recommendations to attain ICT Vision of the State

Vision Remarks Recommendation

bank

Vision for ICT as an Enabler  There is no strategic initiative to  ICT empowerment for the assimilate ICT into key industries for Manufacturing industry To be a local leader in crossing the growth digital chasm by e-translating  ICT empowerment for the Tourism complex value chains for the e-  Negeri Sembilan has strong value industry enablement of the state's key chains for its key industries. industry sectors- tourism, Leveraging on the synergy and  ICT empowerment for the Agriculture manufacturing and agriculture. interconnectivity from one to the industry other will allow the state to leap frog  1 NS Rakyat portal

 Smart homes

Vision for ICT for Society  With plans to build a mechanism to  Access @ Negeri Sembilan proliferate ICT awareness and To transform Negeri Sembilan into education the state will need a society that has ubiquitous use of programs to move towards ubiquitous ICT use.

Source: IDC, 2010

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

FIGURE 29

K ey Recommendations mapped to development phases

Source: IDC, 2010

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

K e y Recommendations mapped to MSC Malaysia 2.0

ICT-Industry ICT-Enabler ICT-Society

Access @ Negeri Sembilan Fortify Industrial District with High Speed Capability Development Program for the Broadband access and increase access Industry to all

NS 1st home program driven by Empowering SMBs with ICT access Total ICT Development for Society Smart Homes

1 NS Rakyat Portal

ICT Empowerment for the Manufacturing Industry

ICT Empowerment for the Tourism Industry

ICT Empowerment for the Agriculture Industry

Source: IDC, 2010

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

SAM PLE

ICT Vision Details out how the recommendations ties back to the proposed ICT Vision of Negeri Sembilan and how that in turn maps to MSC Malaysia 2.0

Major ICT Theme Details which Major ICT Theme the recommendation falls under

Description Highlights and describes the reason behind the recommendation

Objectives Key objectives of the recommendation are put forth

Impact IDCs point of view in terms of the impact should there be successful implementation

Action Plan Action plans are the key subprograms or main programs form the overarching recommendations including a description on how these programs fit the overall recommendation, the key steps needed to execute and example programs

KPI KPI list for the recommendations

Targets Measurement of KPIs

Timeline Short-term, Mid-term or Long-term

Key Stakeholders Key players involved

Source: IDC, 2010

IDC notes the following amendments from Jabatan Perancangan Bandar dan Desa Negeri Sembilan to supplement the recommendations.

 The use of technology encompassing access to broadband Internet and the establishment of rural community ICT centres are considered key efforts that should proliferate as an attempt to encourage and facilitate ICT as an Industry, ICT as an Enabler and ICT for Society.

 To boost the importance of the underlying ICT infrastructure, the National Physical Plan-2 (NPP2) outlines one (1) of eight (8) development themes that details the pivotal need to Providing Appropriate Infrastructure. This theme includes multimedia and communication as one of the keys infrastructure services.

With regards to the above IDC sees synergies on the recommendations provided to the state and the existing growth efforts already in place.

TABLE 36

Capability Development Program for the Industry

ICT Vision 1) Vision for ICT for Society - To transform Negeri Sembilan into a society that has ubiquitous use of ICT

2) Vision for ICT as an Enabler - To be a local leader in crossing the digital chasm by e- translating complex value chains for the e-enablement of the state's key industry sectors- tourism, manufacturing and agriculture. Includes skew towards enabling the government

Major ICT Theme Digital Awareness, Industry Empowerment

Description Given the poor/limited adoption of ICT in the industry, IDC is recommending this holistic and encompassing program as an effort to support the preparation of the industry to capitalize on the digital age. It emphasizes on addressing the digital divide allowing for the industry to move forward into the digital age

Objectives  Function as the fundamental layer of ICT education to the industry

 To allow tiered development allowing the advancement of skills

 To support the ICT enablement of key industry sectors of Negeri Sembilan (namely Manufacturing, Services and Agriculture)

 To eventually ready the state for the digital age

Impact  Promote the role and importance of ICT in the industry

 ICT savvy workforce

 Efficiency and productivity gains

 Bridge digital divide

 Empower the government staff to maximize the usage of ICT

Action Plan ICT empowerment workshops (A.3.1-A, B.3.1-B)

The ICT empowerment workshops are targeted at workers with existing ICT knowledge. The function of the workshop is to empower workers with tips and tricks for productivity gains. Leveraging on key tools related to industry line of business these empowerment workshops enable participants to gain tips on ICT usage to improve day to day operations.

1) Assess ICT competency levels of workers in chosen industries

2) Identify gaps and areas which can be improved for productivity gains

3) Identify lead instructors and release ICT empowerment workshop schedules

4) Measure productivity gains post workshop

Example programs

Capability Development Program for the Industry

1) Microsoft Excel Boot camp

2) Maximizing Microsoft PowerPoint for impactful presentations

Tiered capability development programs (B.3.1-A)

The introduction of tiered capability development programs addresses the constant issues of ICT development programs which are one-off and not progressive/developmental in nature. By introducing a tiered development program a worker in the industry will be able to register for courses according to set schedules and timeframe to allow progressive development closing the digital e-literacy gap.

1) Develop incremental/tiered ICT programs as a set of modules

2) Conduct a pilot study on the productivity gain as workers progress

3) Benchmark capabilities against industry standard

Example programs

1) ICT 101

2) Basic Office productivity workshop

3) Intermediate Office productivity workshop

4) Advance Office productivity workshop

Industry training programs (B.4.1-A)

The core purpose of the industry training program is to establish a platform for ICT to permeate in the form of training programs to the industry. The current state of the industry does not permit the capitalization of ICT. With this program, key industries like Manufacturing, Services and Agriculture will be exposed to training programs which will support the enablement of ICT as a strategic tool for growth.

1) Identify the function and role of ICT to drive key industry sectors

2) Introduce programs based on the set goals of ICT

3) Measure and monitor practice from program implementation

4) Move, the SOP towards an ICT enablement environment

Example programs

1) Basic ICT for workers in the Manufacturing industry

2) Basic ERP concepts

3) Specialization – shop floor, Advance planning and scheduling, warehouse & distribution etc

Capability Development Program for the Industry

Pembudayaan ICT Kerajaan (B3.3-A)

Pembudayaan ICT Kerajaan is a program aimed at educating through change management the ubiquitous use of ICT among civil servants. IDC is recommending this is as part of an action plan to allow the state government to reposition itself in the digital era. IDC sees this as pivotal as the current scenario indicates a lack of awareness and understanding on ICT. By addressing the issues, the state government will be better positioned to fully leverage on ICT

1) Identify the key issues that need to be addressed

2) Set up the first pilot and execute

3) Provide the necessary environment for trained personnel to assimilate to the new ICT culture

4) Move, the SOP towards an ICT enablement environment

Example programs

1) ICT proficiency assessment on pilot group to understand current status

2) Change Management workshop to educate and ingrain use of ICT

3) Facilitation programs through ICT workshops

KPI KPI 1: The smooth introduction of the Capability Development Program for the industry

KPI 2: Total number of program run by key activity areas

KPI 3: Total number of registered participants

KPI 4: Evidence of progression

KPI 5: Capability/Awareness levels

Targets KPI 1: To launch 1 program for each key action plan by Mid 2011 as a test pilot

KPI 2: 1 key activity per program per quarter

KPI 3: Measured by industry cluster and representative of participation from number of organization (5%)

KPI 4: 30% of those on tiered level courses indicate interest to pursue

KPI 5: Measured by assessment and benchmarked from year to year with positive improvement

Timeline ICT empowerment workshops (A.3.1-A, B.3.1-B) – Short Term

Tiered capability development programs (B.3.1-A) – Mid Term

Capability Development Program for the Industry

Industry training programs (B.4.1-A) – Mid Term

Pembudayaan ICT Kerajaan (B3.3-A) - Short Term

Key Stakeholders Jabatan Perkhidmatan Awam

Institut Latihan Sektor Awam Negeri

Institution of Higher Learning

Private Institutions

OSA

Source: IDC, 2010

FIGURE 30

Timeline and Action plan - Capability Development Program for the Industry

Source: IDC, 2010

TABLE 37

Total ICT Development for Society

ICT Vision 1) Vision for ICT for Society - To transform Negeri Sembilan into a society that has ubiquitous use of ICT

Major ICT Theme Digital Awareness, Industry Empowerment

Description There is room for improvement with regards to the level of ICT literacy in Negeri Sembilan. The digital divide is partly caused by uneven growth development focused primarily on key development areas. The initiative for total ICT development is a societal development program in line with the state government's aspiration to equip the state human capital for the digital age. This holistic program looks at development from different key life phases, ensuring that ICT grows in parallel. IDC notes the importance of this recommendation as the readiness of a society greatly impacts eventual growth.

Objectives  Function as the fundamental layer of ICT education to the society

 ICT to prove relevancy across different phases of life

 To allow tiered development allowing the advancement of skills

 To narrow the digital divide

 To transform the human capital aligning to the State's vision

Impact  Bridge digital divide

 ICT a fundamental part of society

 ICT savvy human capital

 Efficiency and productivity gains

 Demand for ICT supply increases

 Ability to leap frog and leverage on the information based society

Action Plan Public ICT awareness programs (C.1.1-B)

IDC notes that Public ICT awareness programs are already ongoing -established and run by various stakeholders. The idea behind this recommendation is to have increase coordination across key stakeholders to have the ICT awareness programs to leverage of key ICT related awareness issues and stigma. For example instead of just promoting access to broadband addressing the fears on negative influences. Currently e-community centers have taken up efforts to offer basic ICT courses all the way to fundamentals of blogging. This blanket program will serve as a net which will allow under niche programs conducted by various stakeholders to take route and further progress ICT development.

Total ICT Development for Society

1) Assess key stigma and perception limiting the adoption of ICT across the state

2) Work with key stakeholder to plan out a calendar of events to address these stigmas

3) Conduct outreach programs and benchmark

Sample program

1) Demographic based demand- side research to understand key inhibitors limiting ICT adoption

2) Develop program content to run ICT awareness programs to address the inhibitors (example "The benefits of using the internet" , "ICT for all ages")

ICT 101 program (C.4.1-A)

The ICT 101 program functions as a clinic/lab to provide the first encounter of ICT to the society. The purpose of this program is to allow the society to be guided into establishing a positive first impression on ICT. This will be done primarily in rural areas.

1) Assess key areas which will benefit from the program

2) Plan for the clinic/lab with the support of community leaders

3) Conduct programs and benchmark

Taska 2.0 @ Pre-school (C.3.2-A)

This program is part of a developmental growth program complementing the state's formal education program. The idea is to equip pre-schools with relevant ICT content and infrastructure allowing for early exposure to ICT

1) Identify key pilot sites across Negeri Sembilan.

2) Provide facilities and training to the pilot sites

3) Develop Bespoke Curriculum

4) Conduct programs and benchmark

Sample program

1) Learning A,B,C's and 1,2,3's using interactive multimedia content

2) Scope expansion incorporation – for example when introducing communication tools incorporate the internet on top of the telephone

ICT friends @ Primary School (C.3.2-B)

This program is part of a developmental growth program complementing the state's formal education program. The idea behind this program is to develop programs

Total ICT Development for Society

which encourage primary school students to learn and leverage on ICT. This includes competitions, community portals, educational games, e-learning and others.

1) Identify key pilot sites across Negeri Sembilan.

2) Provide facilities and training to the pilot sites

3) Conduct programs and benchmark

Sample programs

1) Creation of a ICT friends portal and encouraging schools to promote student participation

2) Introduction of ICT concepts through the portal

3) Promote discussion and innovation through stimulating topics

4) Quarterly workshops or events

5) Competitions to promote innovations (example Best PowerPoint presentation)

Teen Zone 2.0 @ Secondary School (C.3.2-C)

This program is part of a developmental growth program complementing the state's formal education program. The idea behind this program is to develop programs which encourage secondary school students to learn and leverage on ICT. This includes competitions, community portals, educational games, e-learning and others. Specific for teenagers ICT will also be used as a gateway to address societal issues.

1) Identify key pilot sites across Negeri Sembilan.

2) Provide facilities and training to the pilot sites

3) Conduct programs and benchmark

Sample programs

1) Creation of a Teen Zone portal and encouraging schools to promote student participation

2) Introduction of ICT concepts through the portal

3) Promote discussion and innovation through stimulating topics

4) Quarterly workshops or events

5) Competitions to promote innovations (example Program design to address specific issues)

IHL subject design (B.4.1-B & A.4.1-B)

Moving on to tertiary education, the goal and function of this program is for the government to facilitate key discussions between IHLs and industry to formulate key

Total ICT Development for Society

course development areas which can ready graduates to enter the workforce.

1) Identify key players/stakeholders and obtain buy in

2) Work towards common goals

3) Introduce the programs to the market

4) Benchmark the relevance

Sample programs

1) Deep dive workshop to understand the gaps between graduates produced and expectation of the industry

2) Focus on tailored programs to address the gaps

Warga Emas Warga Maju (WEWM) @ Retirement (C.3.2-D)

This looks at addressing key unique needs of the senior citizens The idea behind this is to provide the right necessities to ensure relevance of ICT to this demographic segment.

1) Identify unique demand needs of the senior citizen (etc video conferencing to children)

2) Taylor content and run program

Sample program

1) ICT 101 programs

2) Getting connected online programs

3) e-mail training programs

4) Device related training programs

KPI KPI 1: The introduction of the Total ICT Development for Society

KPI 2: Total number of program run by key activities

KPI 3: Total number of registered students

KPI 4: Evidence of progression

KPI 5: Capability/Awareness levels

Targets KPI 1: To launch 1 program for each key action plan end 2011

KPI 2: 1 key activity per program per quarter

KPI 3: Measured as a ratio of 1 to 1000

Total ICT Development for Society

KPI 4: 30% of those on tiered level courses indicate interest to pursue

KPI 5: Measured by assessment and benchmarked from year to year

Timeline Warga Emas Warga Maju (WEWM) @ Retirement (C.3.2-D) - Mid term

IHL subject design (B.4.1-B & A.4.1-B) – Mid term

Teen Zone 2.0 @ Secondary School (C.3.2-C) – Mid term

ICT friends @ Primary School (C.3.2-B) – Mid term

Taska 2.0 @ Pre-school (C.3.2-A) – Mid term

ICT 101 program (C.4.1-A) – Short Term

Public ICT awareness programs (C.1.1-B) – Short Term

Key Stakeholders Jabatan Perkhidmatan Awam

Institut Latihan Sektor Awam Negeri

Institution of Higher Learning

Private Institutions

OSA

Source: IDC, 2010

Timeline and Action plan - Total ICT Development for Society

Source: IDC, 2010

TABLE 38

F o r t i f y Industrial Districts with High Speed Broadband Access & increase access t o a l l

ICT Vision 1) Vision for ICT as an Enabler - To be a local leader in crossing the digital chasm by e- translating complex value chains for the e-enablement of the state's key industry sectors- tourism, manufacturing and agriculture. Includes skew towards enabling the government

2) Vision for ICT as an Industry - To be the first fully e-connected state in Malaysia by reinvigorating the local ICT industry through the establishment of a state wide digital portal.

Major ICT Theme Broadband For All, Industry Empowerment

Description The state of Negeri Sembilan is embarking on district level growth clusters as an initiative to increase the GDP contribution of the state. Jelebu for example is earmarked to focus on SMBs, Jempol for Agriculture, Tampin with the Feedlot center, Kuala Pilah for SMBs and cultural heritage, Rembau as a Halal hub, Port Dickson for Tourism and Seremban as an industrial hub. With that there are close to 30 Industrial parks in Negeri Sembilan with the bulk situated in Seremban. There are also existing plans by MCMC on Jempol for the digital Jempol initiative allowing for interconnectivity in the district, and there are also plans and efforts by the state government to fortify the west bank (along Port Dickson) for fortified growth. This recommendation looks to spread the broadband development and access to all industrial districts to support the enablement of ICT as a strategic enabler. It also looks to push for access throughout the state.

Objectives  Spread Broadband access to key industrial districts and to all across the state

 Enable the industrial districts with broadband allowing for innovation, creativity and growth

 Promote cross district enablement as opposed to just a few clusters

 ICT to permeate into the industry

 To narrow the digital divide

 To transform the human capital aligning to the State's vision

Impact  Fully "connected" state

 ICT a fundamental part of the district level ecosystem

 ICT savvy human capital

 Efficiency and productivity gains

 Demand for ICT supply increases

Action Plan Establish a District Broadband council to grow broadband access in key areas (A.1.2-A)

The idea behind this recommendation is to have local representatives form a council to drive for opportunities in broadband advancement into their district. This will ensure that the voice of the district is heard and coordinated development can be achieved. For this to be effective the demand for broadband must be apparent. The district level council

F o r t i f y Industrial Districts with High Speed Broadband Access & increase access t o a l l

will liaise with the state and other related stakeholders.

Expand Public Private Partnerships (A.2.1-B)

IDC sees this as a model to propagate the development of broadband in all areas. There are notable case studies where a state is able to fully connect all district and provinces because of the PPP model. In Negeri Sembilan the call is for the state to continue the existing efforts to spread broadband access.

Sample programs

1) Benchmark current access and needs across all districts

2) Identify inhibitor to expanded growth and access in "high need" areas

KPI KPI 1: The execution of the fortifying program

KPI 2: Total number of industrial zones being connected

KPI 3: Connectivity throughout the sate

Targets KPI 1: To launch the study by mid 2011

KPI 2: 100% connectivity by 2015 for key industrial zones

KPI 3: Broadband penetration in incremental

Timeline Expand Public Private Partnerships (A.2.1-B) – Mid to Long term

Establish a District Broadband council to grow broadband access in key areas (A.1.2-A) – Mid Term

Key Stakeholders Local Municipals

Local chamber of commerce

Unit Pengurusan Teknologi Maklumat

Unit Perancangan Ekonomi Negeri

Private sector

MCMC

OSA

Source: IDC, 2010

FIGURE 32

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

Source: IDC, 2010

TABLE 39

Empowering SMBs with ICT access

2) Vision for ICT as an Industry - To be the first fully e-connected state in Malaysia by reinvigorating the local ICT industry through the establishment of a state wide digital portal.

Major ICT Theme Broadband for All, Industry Empowerment

Description Over 90% of businesses in Malaysia are SMB type organizations. In Negeri Sembilan the dependency on the SMBs are obvious just as well. Taking into account key industries like the agriculture sector, it is the small cottage industries which collectively make up sizable contribution to the production levels of the state. As detailed out earlier, the Jelebu district is assigned status of a hub for SMB development, showcasing the importance of this business segment. Given IDCs findings, IDC recommends that one of the areas of focus is to be the empowerment of SMBs with ICT access. This recommendation looks at key programs which can be put in place as part of an overarching theme to ensure that the SMBs are able to move up the value chain

Objectives  Empower SMB with access to ICT as a whole including Broadband

 Productivity gains

 Narrow the digital divide

 Move SMBs up the value chain

Impact  SMBs are better equipped to grow

 ICT savvy human capital

 Demand for ICT supply increases

 Industries with high SMB participation see growth

Action Plan ICT empowerment workshops (B.3.1-B)

1) Assess ICT competency levels of workers in chosen industries

2) Identify gaps and areas which can be improved for productivity gains

3) Identify lead instructors and release ICT empowerment workshop schedules

4) Measure productivity gains post workshop

Empowering SMBs with ICT access

Example programs

1) Microsoft Excel Boot camp

2) Maximizing Microsoft PowerPoint for impactful presentations

ICT Desa Program (B.1.3-A)

The ICT Desa Program looks to leverage on the existing infrastructure of the community broadband centers enabling the execution of small scaled business ideas. IDC notes that this be a good stepping stone for startups which are exploring as the infrastructure is already in place. IDCs research points to existing community broadband centres already having established program sets to create awareness to the community and to supply basic ICT needs. That said the ability to maximize the infrastructure can be taken a step further. For example, establishing a business for web page design, or taking on contracts to maintain websites.

1) Identify core expertise within different e-community centers

2) Support the creation of a business plan for growth

** This program can also be run outside of an e-community centre as the purpose is to empower very small start-ups

Subsidized PCs (C.2.2-A) & PC leasing program (C.2.2-B)

IDC sees this more of an empowerment tool to lower the barriers to entry. While other models like low cost PCs have been introduced elsewhere, the nascent stage of ICT development in Negeri Sembilan does not permit this at the moment. The angle IDC is proposing is for the role of the government to facilitate the subsidizing of PCs prices, leasing programs and also to leverage on existing initiatives like the National Broadband Initiative.

1) State government to identify potential partners and to initiate discussion

2) State government to identify SMB clusters which need support

3) State government to establish support and growth model allowing for SMBs to leverage and grow.

Sample programs

1) Establishment of Memorandum Of Understanding with possible stake holders. (For example leasing programs with private banks and One stop Agency)

SMB empowerment through the provisioning of affordable broadband as well as other ICT infrastructure (B.2.1-A & B.1.1-B)

Possible action items under this recommendation include the development of a Mini cybercentre to house the local SMBs providing access to key infrastructure.

KPI KPI 1: Programs to be planned and executed

Empowering SMBs with ICT access

KPI 2: SMB growth and contribution

Targets KPI 1: At least 2 Empowerment Workshops by end 2011, At least 2 application for the CBC initiative, Formalize partnership

KPI 2 : SMB contribution to the economy shows increase over the next 5 years

KPI 3: Increase in PC Penetration

Timeline SMB empowerment through the provisioning of affordable broadband as well as other ICT infrastructure (B.2.1-A & B.1.1-B) – Mid term

Subsidized PCs (C.2.2-A) & PC leasing program (C.2.2-B) – mid term

ICT Desa Program (B.1.3-A) – Short term

ICT empowerment workshops (B.3.1-B) – Short term

Key Stakeholders Private sector

MCMC

UPTM

MDeC

OSA

Source: IDC, 2010

Timeline and Action plan - Empowering SMBs with ICT access

Source: IDC, 2010

TABLE 40

Access @ Negeri Sembilan

ICT Vision Vision for ICT as an Industry

To be the first fully e-connected state in Malaysia by reinvigorating the local ICT industry through the establishment of a state wide digital portal.

Description The state of Negeri Sembilan is embarking on district level growth clusters as an initiative to increase the GDP contribution of the state. Jelebu for example is earmarked to focus on SMBs, Jempol for Agriculture, Tampin with the Feedlot center, Kuala Pilah for SMBs and cultural heritage, Rembau as a Halal hub, Port Dickson for Tourism and Seremban as an industrial hub. With the unique development of each district and the rise of infrastructure across the state, IDC notes the opportunity to create district level content to showcase the uniqueness of each district. The recommendation is for effort to be put in place to empower the development of district level content which will then be housed on a state wide portal. IDC notes the example done by Colarado state in developing a one stop state wide portal. The rationale behind this is two pronged; firstly it is expected to reinvigorate the ICT industry by creating a need for supply secondly on top of connectivity this initiative is seen as an enabler to reposition the state by introducing its uniqueness to the outside world

Objectives  Empower the development of district level content to be housed on a state wide portal

 Develop a state wide portal

 Rejuvenate the local ICT industry creating job opportunities

 Drive online traffic into the state with eventual implications on real terms

Impact  Job creation

 District visibility through key industries

 Demand for ICT supply increases

 First to have a integrated state wide portal

 Repositioning the state

Action Plan Access at Negeri Sembilan is IDC vision of a state-wide portal for Negeri Sembilan. The key driver behind this is the necessity to create an ICT-I entry level point which is in line with the current strategic efforts of the state. By doing so, IDC sees the fueling of both supply and demand driven by content creation needed as the districts in Negeri Sembilan step up its niche areas of growth.

District level content (B.1.4-A)

The development of district level content is expected to come from varying forms. It can be as simple as creating a local webpage for a manufacturer to content used for e-trade or for virtual tourism. IDC expects the scale to grow in line with the development and access to the statewide portal.

1) Develop district level schema to map out key clusters and entities

2) Identify what should be e-translated to the net and why (example: Nilai as an

Access @ Negeri Sembilan

education valley already has all the major institutions website, but they are not interlinked. E-translating this could mean creating a one stop access page which introduces all institutions including user content such as testimonials, location centric content such as distance from one to the other etc)

3) House the content as part of a district level portal

** IDC notes that content creation will be a key to drive growth, for example in Felda settlements with minimal visibility, content creation can be in the form of the creation of educational content on life on the farm. This in turn will require manpower to drive interviews, create clips, edit etc)

MSC Malaysia Incubator

In line with the drive to create a state-wide portal IDC sees synergy in the application for the status of a MSC Malaysia Incubator in Negeri Sembilan. The nascent stage of development of this recommendation and companies to take up this initiative will benefit well from the establishment of an incubator. That said the focus should be in establishing the right set of companies that would benefit having an incubator.

** Incubator to house start-ups driven by Access @ Negeri Sembilan for example Creative Media and Content for the content creation for websites, Website development for the actual development of website and related technologies. IDC also notes the focus of Techpark@enstek and its focus to be a biotech hub for the region. IDC sees the possibility or parallel growth with adjacent ICT focused companies to support and empower the bio tech industry.

MSC Malaysia Cybercentre

In line with long term growth development, IDC sees the long term strategy to eventually develop a Cybercentre as part of a growth development plan for the ICT industry in Negeri Sembilan. This long term plan is subject to the development of the ICT industry in Negeri Sembilan. IDC notes that depending on the core focus of growth ,the Cybercentre can be positioned to support accelerated growth in the specific earmarked industries (example R&D for Biotechnology, Creative & Content development, Halal Manufacturing etc)

** It is important to note that while the Cybercentre provides access to the 10 Bill of Guarantees, there are criteria's and guidelines which need to be met. IDC cautions that plans to possibly develop must adhere to the guide under the 8 qualifying criteria's and Performance Standards. As such there needs to be close interaction with MDeC for the above. A snapshot of the 8 qualifying criteria's are as follow (1) Driven by state government and cybercity/cybercentre stakeholder (2) Broadband and infrastructure readiness (based on critical performance indicators) (3) Customer focused management with KPIs (4) Competitive environment to attract investment, nurture start-ups (5) Talent pool availability (6) Proximity and linkages to universities and research centres (7) Use relevant Flagship /e-Applications for service delivery (8) State ICT blueprint providing value propositions for local economy.

The overall action plan looks at the eventual goal of having an e-connected state (Access@ Negeri Sembilan). That said, the connected platform is not seen as a means to the end as it is representative of maturity and reinvigoration of the entire ICT ecosystem as detailed above.

Access @ Negeri Sembilan

In achieving the objective, IDC sees an action plan developed in phases.

1. District buy in – This phase points towards the awareness and buy in from the different districts with regards to the end goal of developing a state-wide portal filled with rich district level content.

2. Identify niche clusters – This phase looks towards the development of niche clusters of focus and the positioning of ICT as a key enabler

3. The incubation of technology companies to address the needs of the niche clusters to be run in parallel with the objective of establishing a MSC Malaysia incubator

4. The MSC Malaysia Cybercentre is a long-term plan to plan subject to the ability to create a vibrant ICT ecosystem.

KPI KPI 1: Achieve buy in from districts

KPI 2: Technology clusters of focus

KPI 3: Cultivate technology development

KPI 4: Virtualize all key components through district level content creation

Targets KPI 1: Districts to give consent to support the program by end 2011

KPI 2 : To identify technology clusters of focus by each district allowing for focus

KPI 3 : To develop and support the development of technology clusters through the establishment of a MSC Malaysia Incubator

KPI 4: Content creation by key industry areas, measured by industry participation

Timeline Access @ Negeri Sembilan (B3.4-A) –Midterm to Long term

MSC Malaysia Incubator- Midterm

District level content - Midterm

MSC Malaysia Cybercentre – Midterm to Long term

Key Stakeholders Private sector

MCMC

UPTM

MDeC

UPEN

Access @ Negeri Sembilan

Source: IDC, 2010

FIGURE 34

Timeline and Action plan – Access @ Negeri Sembilan

Source: IDC, 2010

The following segment is a supplement to the recommendations of Negeri Sembilan.

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

TABLE 41

N S 1 st home program driven by Smart Homes

ICT Vision Vision for ICT as an Enabler

To be a local leader in crossing the digital chasm by e-translating complex value chains for the e-enablement of the state's key industry sectors- tourism, manufacturing and agriculture.

Description The close proximity of Negeri Sembilan to the central hub of Klang Valley uniquely positions the state as viable option as a second home or even as a first home. The concept of living in Seremban but working in KL/other places was introduced by the YB MB and continues to be a mantra for strategic growth planning. IDC sees the recommendation of the NS smart home as an icing on the cake with the proposed recommendations in place. The idea is to build smart homes which will eventually draw investors into the state. That said the development of the ecosystem which enables the industry will be key.

Objectives  GDP growth contribution

 Rejuvenate the local ICT industry creating job opportunities

 Position Negeri Sembilan as a preferred state to reside

 Known as a "Smart State"

Impact  Job creation

 GDP contribution

 Demand for ICT supply increases

Action Plan Establishment of smart homes (C.1.2-A)

To enable the establishment of smart home concept, IDC notes that the identification of the best possible location to start a smart township to be essential. That said, efforts taken by the Sime Darby group to establish a Vision City in Negeri Sembilan to be a key example of the possibility for growth and demand. It is to that, that establishing smart partnerships with developers will be a pivotal task. With the fundamentals in place the design of the smart home can take the front seat. In terms of sequence, IDC notes the following as essential

1) Asses possibility to pursue initiative by leveraging on existing initiatives

2) Establish value chain and identify key entities and partners

3) Build capacity

3) Awareness programs

KPI KPI 1: Establish zone for smart homes

KPI 2: Establish key partnerships

KPI 3: Industry invigoration

N S 1 st home program driven by Smart Homes

KPI 4: Take up of Smart Home

Targets KPI 1: Earmark primary zones offering low cost but ability to attract investors

KPI 2: Identify key partners of the value chain and establish gives & gets to ensure success

KPI 3: Build capacity by leveraging on interlinked programs like the incubator program

KPI 4 : Incremental growth on occupancy

Timeline Establishment of smart homes (C.1.2-A) -midterm

Key Stakeholders Private sector

MCMC

JPBDD

MDeC

UPEN

Source: IDC, 2010

TABLE 42

1 NS Rakyat Portal

ICT Vision Vision for ICT as an Enabler

To be a local leader in crossing the digital chasm by e-translating complex value chains for the e-enablement of the state's key industry sectors- tourism, manufacturing and agriculture. Includes skew towards enabling the government.

Description The program establishes a connected environment in which the government and citizens would be able to interact and share knowledge. The portal will also serve to attract ideas, suggestions of improvements and complaints of the citizens in the state. The idea is to promote a more citizen centric government as citizens are empowered to speak up and contribute. Taking into account existing portals and websites, the idea is to consolidate and to increase relevance to the citizens empowering web 2.0 technologies for use in text analytics and beyond.

Objectives  To enhance the e-Government initiative allowing for citizens to play an active role in contribution to ideas and development

 To boost interaction between local citizens and State

 Improved perception on government.

Impact  Ease of convenience for public

 Establishment of an e-Citizen centric government.

 Improved accessibility to information.

Action Plan Rakyat 2.0 portal (B.2.2-A)

Leveraging on the current government website infrastructure, the page will be gradually transformed using web 2.0 techniques to gain participation from citizens. The current official state portal has strong functions but most are features which are part of other initiatives for example One Stop Agro Portal, public complaints, online payments etc. The idea behind this initiative is to empower citizen with a user interface akin to what is common in web 2.0 applications enabling transformation of Government to Citizen communication via web. In the awareness stage the idea is to gauge the kind of content which will be relevant to the citizens as well as current level of following on the state portal. The awareness stage will work in line with transformation as the page gradually transforms to add features such as live chat, e- forums and others.

KPI KPI 1: Enhancement of current portal

KPI 2: Satisfaction/feedback survey for portal enhancement

KPI 3: Citizen participation

Targets KPI 1:To start enhancement by mid 2012

KPI 2: Bi-annual satisfaction survey on portal

KPI 3: Assuming broadband penetration rate as number of citizens by 2015

1 NS Rakyat Portal

Timeline Rakyat 2.0 portal (B.2.2-A) –midterm

Key Stakeholders SUKNS

UPTM

Source: IDC, 2010

FIGURE 35

Timeline and Action p l a n – 1 NS Rakyat Portal

Source: IDC, 2010

TABLE 43

ICT Empowerment for the Manufacturing Industry

ICT Vision Vision for ICT as an Enabler

Description With the other fundamental programs in place the next step is to capitalize on the strong fundamentals to impact the growth of the key industry sectors. For the manufacturing sector the goal is to improve the overall value chain addressing it from a fundamental level of automation to operational efficiency. With regards to automation, the goal is to leverage on the growing adoption of ICT infrastructure and supplying the necessary automation framework to support growth. From an operational efficiency stand point the goal is to progress the manufacturers forward with key frameworks supporting key techniques for efficiency gains.

Objectives  To propel growth in key the manufacturing sector by means of ICT utilization as a growth enabler

 To promote the permeation of ICT into the industry coupled with increased demands

Impact  Increased GDP contribution

Action Plan (1) Automation

The goal of automation is to introduce ERP type software that enables manufactures to take the first step beyond the basic adoption of ICT. As an encompassing plan to support the proliferation and growth of ICT, IDC recommends the adoption of solutions with lower barriers to entry (for example opensource solutions). The no frills model allows smaller businesses to avoid vendor lock in while still being able to experiment in achieve automation gains. The nature of the open source model also supports the growth of the ICT-industry as local integrators and developers emerge. In terms of process. IDC notes the following as key:

1) Identify solution to impact the manufacturing sector in need of automation.

2) Build awareness and demand by means of educational workshops

3) Prepare groundwork by working with solution providers

4) Build local ecosystem

5) Achieve automation gains and repeat process with other solutions or once mature move towards more full fledge solutions with best practices.

(2) Operational Efficiency

With IT driven automation as a standard across local manufacturers the move is next to enhance operational efficiency through the introduction of frameworks and best practices. One possible area of gain can be established through the introduction of Computer Integrated Manufacturing (CIM). Given Negeri Sembilan's strong focus on the E&E industry, the introduction of an industry wide framework for Computer Integrated Manufacturing will enable the vast approach to optimize manufacturing plans for efficient and cost effective production, from the smallest level of granularity to the broadest facility planning tasks. The proposed

ICT Empowerment for the Manufacturing Industry

approach is to enable the industry by the design and implementation of the CIM framework.

In terms of an action plan, IDC notes the following as key:

1) Identify requirements and set up key components required within CIM

2) Establish technical teams that will be responsible for the management and monitoring of CIM framework

3) Conduct CIM training and awareness sessions for manufacturing personnel

KPI Automation KPI

KPI 1: Identify solution offering for automation

KPI 2: Awareness and demand generation

KPI 3: Ecosystem enablement

KPI 4: Adoption

Operational Efficiency

KPI 5: Identify solution design for CIM offering

KPI 6: Awareness and demand generation

KPI 7: Ecosystem enablement

KPI 8: Adoption

Targets KPI 1: Selection of solution offering to be propagated

KPI 2: Complete at least 1 awareness campaign per quarter

KPI 3: Identify, enable and house ecosystem. (5 developers/integrators)

KPI 4: Incremental adoption by 10% year on year based on base with no solution

KPI 5: Identify combination offering that best suites the local manufactures

KPI 6: Complete at least 1 awareness campaign per quarter

KPI 7: Identify, enable and house ecosystem

KPI 8: Incremental adoption

Timeline Awareness and demand (midterm)

Build local ecosystem (midterm)

Key Stakeholders FMM

ICT Empowerment for the Manufacturing Industry

NSIC

Private sector

MIDA

UPTM

Source: IDC, 2010

TABLE 44

ICT Empowerment for the Tourism Industry

ICT Vision Vision for ICT as an Enabler

Description With other fundamental programs in place the next step is to capitalize on the strong fundamentals to impact the growth of the key industry sectors. IDCs research points to the tourism sector playing a pivotal role to the overall development of the services sector for the state. As such it is essential that the state puts strong focus on the e-enablement of this industry. That said, IDC notes the current limitations of Negeri Sembilan namely the lack of a direct access route to key tourism zone – Port Dickson via alternative transportation models.

Under the assumption of possible infrastructural changes IDC notes the next phase of development as the capitalization on the e-enablement of the tourism value chain. The end goal for this subsector is to increase the number of tourist and to encourage as much spend as possible. In terms of an action plan, the empowerment of this subsector is two pronged. First being the 1 NS Tourism Tri-Connect which looks at connecting and giving information access to the tourist and 1 NS Tourism Growth Backbone which looks at maximizing the average spend of a tourist.

Objectives  To propel growth in the tourism subsector by means of ICT utilization as a growth enabler

 To effectively send and receive information to and from tourist.

 To promote the permeation of ICT into the industry coupled with increased demands

Impact  Increased GDP contribution

 Increased number of tourist

 Increase average spend per tourist

 Increased customer satisfaction

Action Plan (1) 1 NS Tourism Tri-Connect

The goal of 1 NS Tourism Tri-Connect is to promote information dissemination and feedback collection from tourist. IDC believes this to be pivotal as it promotes a sense of connection to the state and also serves as a feedback mechanism for the state in its endeavor to improve. IDC sees 3 pivotal connection points which can be enabled by ICT.

(a) Remote Information Kiosk – These are interactive Kiosk which serves as a mechanism to educate and promote key tourist attraction. Relevant content development is pivotal to ensure information is clear and useful.

(b) Tourism web portal – The getaway to everything Negeri Sembilan built to entice with rich information and content. IDC sees this as a key point of improvement as the current portal has limited content, features and function. Given the state's strong emphasis on tourism emphasis is needed to take the portal to the next level.

ICT Empowerment for the Tourism Industry

feedback to the relevant authorities in both a manual and electronic form.

In terms of an action plan to implement, IDC notes the following process:

(1) Identify key tourism products/activities and attractions across the state

(2) Build and promote local awareness

(3) Build localize content to best represent the key Tourism features

(4) Transform the Tourism portal

(5) Identify and populate Information Remote Kiosk's and Feedback mechanisms

(2) 1 NS Tourism Growth Backbone

The goal of the 1 NS Tourism Growth backbone is to e-enable the tourism value chain to allow a seamless online experience for prospects looking to visit the state. This backbone also serves as repository for the enablement of other features listed under the 1 NS Tourism Tri- Connect program. This growth backbone also leverages on the Access @ Negeri Sembilan state wide portal. IDCs recommendation is based on the need for Negeri Sembilan to be able to intelligently connect the missing dots in terms of tourism attractions. This is important as the state needs to maximize gain in other tourist activities and attractions alongside Port Dickson.

IDC notes the following as key action plan

(1) Identify key tourism products/activities and attractions across the state

(2) Build and promote local awareness

(3) Build localize content to best represent the key Tourism features

(4) Connecting the current value chain and e-enable it.

KPI 1 NS Tourism Tri-Connect

KPI 1: Identify core tourism activities/attractions

KPI 2: Identify key placement areas for kiosks

KPI 3: Develop content

KPI 4: Connect all points

1 NS Tourism Growth Backbone

KPI 5: Identify core tourism activities/attractions

KPI 6: Develop local content

KPI 7: Examine and connect local value chain

KPI 8: E-enable local value chain

ICT Empowerment for the Tourism Industry

Targets KPI 1: Database of chosen state attraction

KPI 2: Mark designated zones in each district

KPI 3: Leverage on local talent to develop local content (create 2-3 working clusters per state)

KPI 4: 100% connection from key attraction (2012)

KPI 5: Identify core tourism activities/attractions

KPI 6: Leverage on local talent to develop local content (create 2-3 working clusters per state)

KPI 7: Map out a complete value chain with intelligent areas of relationship drawn

KPI 8: E-enable the value chain in 3 key phases

Timeline Identify key attraction (Short term)

Build local content (Short to Midterm)

Enable local ecosystem (Short to Midterm)

Infrastructure readiness (Short term)

Value chain creation ( Short to Midterm)

Key Stakeholders Tourism Negeri Sembilan

NSIC

Private sector

UPTM

UPEN

Source: IDC, 2010

TABLE 45

ICT Empowerment for the Agriculture I n d u s t r y

ICT Vision Vision for ICT as an Enabler

Description With other fundamental programs in place the next step is to capitalize on the strong fundamentals to impact the growth of the key industry sectors. IDC notes that there is already an existing one stop agro portal an initiative by MoA with a focus to facilitate information request and applications of citizens with regards to the programs offered under the jurisdiction.

IDC is proposing to take a step forward by empowering the agriculture industry through the further development/enhancement of an online agriculture portal that focuses on providing access to vital information and to enable networking among stakeholders. In terms of focus, IDC envisions the portal to address the following demands

(1) Disseminate information on Best Practices to facilitate the growth and development of practitioners

(2) Knowledge bank as a repository of key information from federal and related agriculture based agencies

(3) E-marketplace to facilitate the sales and promotions within the community

Objectives  To propel growth in the agriculture subsector by means of ICT utilization as a growth enabler

 To effectively disseminate and share information among practitioners

 To promote the permeation of ICT into the industry coupled with increased demands

Impact  Increased GDP contribution

 Improved crop yield

Action Plan While the portal has 3 key service offerings, IDC notes that the action plan will require the following

(1) Awareness and capability development

(2) Portal development

(3) Information upload

(4) E-marketplace development

KPI KPI 1: Amount of Content upload

KPI 2: Number of awareness campaigns

KPI 3: Percentage of annual increase of website hits

ICT Empowerment for the Agriculture I n d u s t r y

KPI 4: Percentage of annual increase of sales volume via the electronic market

KPI 5: Agriculture sector’s GDP contribution

Targets KPI 1: Increase by 10% on content upload annually

KPI 2: 2 awareness campaigns annually

KPI 3: 5 % of annual increase of website hits

KPI 4: Positive annual increase of sales volume via the electronic market

KPI 5: Increased sector’s GDP contribution

Timeline Build awareness (Short term)

Develop portal (Short term)

Information upload (Short term)

e-marketplace (Short term to Midterm)

Key Stakeholders Ministry of Agriculture

Persatuan Peladang NS

Private sector

UPTM

UPEN

Source: IDC, 2010

Recommendations Timeline

ICT as an Enabler

Costing Assumptions

This section covers the costing breakdown and components for the recommended programs in the Negeri Sembilan ICT Blueprint.

Costing Assumptions

 All costing figures given here are strictly estimates for budgetary purposes only. In most scenario the costs are taken as a mean across vendors and solution and are derived from 2008 published list price or in comparison to IDCs research database

 No cost of physical infrastructure was taken into consideration

 IDC would expect the costing figures to possibly vary greatly depending on the solutions / vendors eventually selected by the Negeri Sembilan state government

 Other costs (customization, interface, additional modules, etc) including recurring costs (annual license fees, maintenance support, etc) may vary according to the needs.

 The overall financial investment for each initiative is broken down into the following cost elements (Services: Cost related to the manpower efforts of the Vendors/Implementers to implement the ICT Initiative, Hardware: Cost related to the equipment such as server, network, desktops, Software: Cost related to the specific software, application, licenses)

The table below highlights the estimated costing for the recommended programs:

TABLE 46

Cost breakdown for key programs

Recommended program Costing Components Total Costing (RM)

Capability Development Program for the Industry

ICT Empowerment workshops 100% services in the form of fees to the 600,000 training company appointed to execute the program

Tiered Capability development 100% services in the form of fees to the 600,000 programs training company appointed to execute the program

Industry training programs 100% services in the form of fees to the 600,000 training company appointed to execute the program

Pembudayaan ICT Kerajaan 100% services in the form of fees to the 450,000 training company appointed to execute the program

Cost breakdown for key programs

Recommended program Costing Components Total Costing (RM)

Total ICT Development for Society

Public ICT awareness program 100% services in the form of fees to the 750,000 training company appointed to execute the program

ICT 101 Program 100% services in the form of fees to the 600,500 training company appointed to execute the program

Taska 2.0 @ Pre-School Includes the provisioning of Hardware in 1,150,000 the form of upgrades or new installations, Software for running e- learning programs and services for support, installation and training.

Hardware - 60%

Software -15%

Services - 25%

ICT Friends @ Primary School Focus is on software and e-services 610,500

Software -40%

Services-60%

Teen Zone 2.0 @ Secondary Focus is on software and e-services 745,000 School Software -40%

Services-60%

IHL Subject Design 100% services in the form of fees to 855,000 engage and produce relevant material

Warga Emas Warga Maju (WEWM) 100% services in the form of fees to 525.500 engage and produce relevant material

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

Establish a District Broadband N/A N/A council

Expand public private partnership N/A N/A

Empowering SMBs with ICT access

ICT Empowerment workshops 100% services in the form of fees to the 600,000

Cost breakdown for key programs

Recommended program Costing Components Total Costing (RM)

training company appointed to execute

the program

ICT Desa Program Provisioning of seed money to support 54,000 initiatives

Subsidized PCs & PC Leasing Based on a RM 1000 subsidy per 1,000,000 program desktop PC

SMB Empowerment through the 100,000 provisioning of affordable broadband as well as other ICT Infrastructure

Access @ Negeri Sembilan

District level content Empowerment on job creation to kick 400,000 start the content development across Negeri Sembilan. 100% services

MSC Malaysia Incubator Hardware - 60% 570,000

Software -15%

Services - 25%

MSC Malaysia Cybercentre Hardware - 60% 755,300

Software -15%

Services - 25%

NS 1st home program driven by Hardware - 50% 1,250,000 Smart Homes Software -20%

Services - 30%

1 NS Rakyat Portal Hardware - 30% 1,100,000

Software -25%

Services - 45%

ICT Empowerment for the Manufacturing Industry

Automation program 95% services to train, develop and 505,300 acquire related skills.

Operational Efficiency 95% services to train, develop and 1,105,000

Cost breakdown for key programs

Recommended program Costing Components Total Costing (RM)

acquire related skills.

ICT Empowerment for the Tourism Industry

1 NS Tourism Tri-Connect Hardware - 50% 1,920,000

Software -20%

Services - 30%

1 NS Tourism Growth Backbone Hardware - 30% 1,200,000

Software -25%

Services - 45%

ICT Empowerment for the Agriculture Industry

Agro Portal Hardware - 30% 850,000

Software -25%

Services - 45%

Source: IDC, 2010

Sources of Fundin g

A key element to consider is the funding mechanism which supports the attainment of the proposed recommendation. Funding for the recommended programs could be derived from government funding or co-operation between private and government bodies. Some of the proposed methods of the state project funding are:

 Public Funding: Funding provided by State or Federal Government;

 Public Private Partnerships: Funding is provided and operated through a partnership of State Government and one or more private sector companies

 Private Funding: Finding solely provided by the private sector.

Funding model for key programs

Recommended program Funding Model Remarks

Capability Development Program for the Industry

ICT Empowerment workshops Public Private Partnership Collaboration between the state government and the private sector to empower the local industry through proficiency workshops. The partnership with the private sector can be established based on the type of empowerment programs. (example if it is on Office productivity the partnership could possibly be with Microsoft and its partners)

Tiered Capability development Public Private Partnership Collaboration between the state programs government and the private sector to empower the local industry through a long term tiered capability program. Likely candidates would be private institutions with established courses to offer

Industry training programs Public Private Partnership Collaboration between the state government and the private sector to empower the local industry through industry specific programs (possible co- op with FMM as an example)

Pembudayaan ICT Kerajaan Public Funding Direct public funding for the development of the public sector (Possibility to also leverage on vendors wanting to penetrate into the public sector space)

Total ICT Development for Society

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

ICT 101 Program Public Private Partnership Collaboration between the state government and the private sector to increase ICT awareness of the public through workshops. Focus on roping multiple partners from private sectors especially technology companies ( IDC notes existing efforts by MCMC through

Funding model for key programs

Recommended program Funding Model Remarks

its CBC programs as an avenue as well)

Taska 2.0 @ Pre-School Public Private Partnership This is a state government initiative which can further enhance efforts by the ministry of education. The private sector element stems from the interest to support country development from the grassroots. The state government can encourage the development while letting the private sector to put together the infrastructure and programs

ICT Friends @ Primary School Public Private Partnership Focus is in creating interest on ICT beyond basic usage. The PPP model is chosen as technology giants tend to have similar programs in place as part of an effort to evangelize product offerings

Teen Zone 2.0 @ Secondary Public Private Partnership Focus is in creating interest on ICT School beyond basic usage. The PPP model is chosen as technology giants tend to have similar programs in place as part of an effort to evangelize product offerings

IHL Subject Design Private Funded This is seen as alignment to keep abreast with latest industry development. The redesign strategy is to ensure students are industry ready. IDC assumes Private funding as an effort to meet changing market dynamics.

Warga Emas Warga Maju (WEWM) Public Private Partnership Collaboration to reach out to the senior citizens. This will require support from the private sectors especially in terms of technology and knowhow. IDC sees synergy for the private sector as it focuses on introducing products which address the demographic need.

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

Establish a District Broadband N/A N/A council

Expand public private partnership N/A N/A

Empowering SMBs with ICT access

ICT Empowerment workshops Public Private Partnership Collaboration between the state government and the private sector to

Funding model for key programs

Recommended program Funding Model Remarks

empower the local industry through proficiency workshops. The partnership with the private sector can be established based on the type of empowerment programs. (example if it is on Office productivity the partnership could possibly be with Microsoft and its partners)

ICT Desa Program Public Funded Grants/seed money to support startups

Subsidized PCs & PC Leasing Public Private Partnership Government role is to facilitate program discussion and to create need for the private sector to respond. IDC notes initiatives already underway though the National Broadband Initiative. One source of avenue is the tradeoff between facility set up of manufactures and subsidies on PCs

SMB Empowerment through the Public Funded Combination programs allowing for the provisioning of affordable public sector to support the growth of broadband as well as other ICT SMBs. This may include seeding funds. Infrastructure

Access @ Negeri Sembilan

District level content Public funded Funding for job creation allowing for the development of the ICT industry as well as the development of local district based content

MSC Malaysia Incubator Public Private Partnership The focus from the private sector could be the ownership of being the incubator manager and from the public sector the provisioning of a site. The incubator can be a synergy between state government and incubator manager or purely private funded

MSC Malaysia Cybercentre Public Funded The focus from the private sector could be the ownership through the one stop agency and from the public sector the provisioning of a site. The cybercentre can be a synergy between state government and OSA or purely private funded

NS 1st home program driven by Private Funded The government to lead the initiative Smart Homes and awareness and the private sector

Funding model for key programs

Recommended program Funding Model Remarks

leads on the R&D and manufacture

1 NS Rakyat Portal Public Funded The government to build the portal as a direct initiative to reach to the rakyat

ICT Empowerment for the Manufacturing Industry

Automation program Public Private Partnership The public sector to initiate the adoption campaign and the private sector to support in terms of technical knowhow and introduction of solutions

Operational Efficiency Public Private Partnership. The private sector to provide the skills and R&D to supply the necessary framework for the development of the industry

ICT Empowerment for the Tourism Industry

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

1 NS Tourism Growth Backbone Public Funded The government to invest in the necessary infrastructure to enable a stronger tourism experience

ICT Empowerment for the Agriculture Industry

Agro Portal Public Funded The government to source for funding to design and develop the portal

Source: IDC, 2010

This section will highlight the recommended governance structure to oversee the ICT development and implementation for the state of Negeri Sembilan. The ICT governance structure consists of the roles, responsibilities, and processes to be undertaken by state agencies, in managing and rolling-out key ICT initiatives in the state.

In discussing a generic governance framework for good practice, the following are indicators of good practice in relation to aligning key activity with strategy;

 Establishment of an over-arching Information Communications Technology (ICT) Steering Committee tasked with the implementation of ICT strategies, projects and initiatives in the state

 Representation of all significant stakeholders on this committee

 All significant projects, IT and information systems will be approved by steering committee or higher

It is crucial to note that ICT governance is an on-going process of monitoring and evaluating goals against overall strategic objectives. With that said, there is no "simple" manner of which to implement a governance framework or structure for the state, as it requires high level buy-in and support for full fledged implementation.

Current model

As detailed out in the Gap Analysis, IDCs take on the current scenario highlights the below as key areas of concern.

 Ground level execution limited to SUKNS –Unit Pengurusan Teknologi Maklumat (UPTM) is the key ground level driver to execute ICT related programs. That said, its primary role is under the purview of the SUKNS. IDC has reference to community level initiatives which saw participation but overall the jurisdiction is limited to that scope.

 Public Access to Mechanism - As highlighted in the situational analysis, the permeation of ICT to the society is pivotal. Depending on private sector initiatives alone will skew the societal growth based on vendor programs. At current the public has no clear access to the state mechanism as there is no key point of contact.

 Absence of a Champion – Based on IDC research, there is no champion to drive all ICT related programs for the state. This inherent problem will lead to a disconnect with the objectives of propagating the idea behind MSC 2.0. The current mechanism has only empowered UPTM to support the drive for the public sector

 Permeation of ICT into the industry – In referencing the current state mechanism the permeation of ICT into industry will not be possible or concrete as the model only allows for industries to be reactive as opposed to being proactive. The

 Limited growth programs – The current mechanism structure does not permit nor enable mass growth and adoption of ICT as there is no clear guideline as well runner to achieve.

 Senior Management Support – Because of the lack of visibility and follow thorough for ICT, obtaining Management buy in on plans continues to be an issue needed to be addresses.

FIGURE 36

Structure of Stakeholders in State ICT Development

Source: UPTM, 2010

The structure above showcases the NSICTC to be the main committee in viewing ICT initiatives in the state and is chaired by the Menteri Besar of Negeri Sembilan. This is the premier committee which is to function as the voice of ICT for the entire state with the key role on the overall strategic planning and coordination.

The next level sees the JPICTNS as next in the chain of command. Based on research, IDC notes that the core focus of this committee is to emulate the same focus and planning as with the NSICTC but for the state government body.

©2010 IDC # 159 With that observation, IDC notes a disconnect with regards to the execution for state wide ICT initiatives. This point is driven home by virtue of the NSICTC having not convened since 2008. IDCs research points to the absence of a blueprint to drive a holistic view of ICT to the state as the culprit. It is noted that the diverse makeup of the committee has in past led to a dilution for the true meaning and purpose of the committee meetings as periphery issues to ICT will also be a topic of discussion.

Taking a peek into UPTM, IDC notes that this becomes the right hand of the JPICTNS as key public sector initiatives are driven by UPTM.

Proposed Model

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

FIGURE 37

Proposed new structure in State ICT Development

Source: IDC, 2010

160 # ©2010 IDC With the above model the Negeri Sembilan ICT council (NSICTC) takes on an additional role being the MSC Malaysia committee. IDC has proposed this due to the current function and scope of the NSICTC which looks at overall ICT development for the state. While the NSICTC assumes the additional role as the MSC Malaysia committee that is not to say that the membership make up cannot be expanded, especially given the current active role of the JPICTNS. The makeup of members beyond admittance by default is up to the committee itself. IDC sees strength in leveraging on NSICTC due to its strong strategic leadership and purview which aligns to the direction of MSC Malaysia 2.0.

Expanding from the state MSC Malaysia Committee, initiatives are further broken down based on the 3 key clusters of MSC Malaysia 2.0, ICT as an Industry, ICT as an Enabler and ICT for Society. For each there is a lead agency and a set of key partners working in tandem. It is important to note that the One-Stop-Agency is responsible for overall growth, success and accountability of the MSC Malaysia 2.0 initiatives.

The proposed lead agency for ICT-E is both UPEN and the OSA. With key partners including industry players, JPBD, MoA and others. This diverse base is due to the broad set of enablement initiatives from Broadband to public sector to key industries like Tourism and Agriculture.

For ICT-I, the OSA is proposed as the lead agency due to the heavy nature and dealings with external vendors especially with the proposal for Access @ Negeri Sembilan. Key partners include UPTM for its major focus on public sector ICT and industry players.

For ICT – S the OSA will be working closely with the education fraternity as well as agencies and partners looking to further develop the human capital of Negeri Sembilan.

As part of the recommendation, IDC is highlighting the importance of the MSC Malaysia One-Stop-Agency as a proposed entity that oversees and ensures proper management of all ICT Projects. The major tasks include coordinating the demands, resources and efforts of the state stakeholders in ascertaining that ICT projects are delivered on time, in an effective and efficient manner. Part of the objective of the One-Stop Agency is to ensure that it takes the lead as the key liaison to both external and internal parties (example Telco's and local government authorities). Along with that, revenue generation is a also a pivotal role tasked to the One-Stop-Agency.

Since the concept of the One-Stop-Agency has been approved by Cabinet, in terms of structure it is important to note that the appointed agency needs to adhere to the following criteria

 The entity is to be incorporated under the Companies Act 1965, in which the State Government holds a minimum of 30% interest. IDC notes that the 30% is a minimum but for the state to have greater control and leverage it would be wise to have a higher stake in the entity.

 Officially endorsed by the State Government to drive the development, management and operation of all MSC Malaysia Cybercities / Cybercentres in a

©2010 IDC # 161 state. IDC notes the importance of this statement as the OSA alleviates the risk to the state when it comes to the implications of non adherence to the supply of the 10 (Bill of Guarantees) BoGs.

 Minimum paid-up capital of RM250,000

Last but not least, the critical enablers are proposed to continuously play a pivotal role to the ecosystem as it serves as the underlying layer of continuous development especially on the infrastructure side.

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