31 Mac 2017


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THE utiliZation of ict in malaysia


INTRODUCTION                                                                                                    2

ICT IN MALAYSIAN EDUCATION                                                                    4


ICT AND MALAYSIAN TRANSPORTATION                                                  9

ICT IN MALAYSIAN TELECOMMUNICATION                                             11

CONCLUSION                                                                                                         12

REFERENCES                                                                                                        13

1.0              INTRODUCTION

Malaysia has created the Multimedia Super Corridor (MSC) - a world-first, world-class act - which is a length of greenfield "corridor", 15 kilometers wide and 50 kilometers long (9 by 30 miles - roughly the size of Singapore) located 30km (20mi) south of the capital.

This corridor stretches from the Kuala Lumpur City Center (KLCC) - itself an intelligent precinct - which houses the world's tallest buildings, down south to the future federal administrative city Putrajaya and the site of the region's largest international airport, the Kuala Lumpur International Airport (KLIA). The Prime Minister of Malaysia is already move his office to Putrajaya in June of 1999, and other departments follow soon thereafter.

The MSC is an ambitious plan to transform rubber and palm-oil plantations into Southeast Asia's Silicon Valley bound by a fiber-optics network, providing high-speed computer links between Cyberjaya, Kuala Lumpur, the KLIA and a new administrative capital under construction called Putrajaya. All in all, Malaysia has committed a massive RM48bn in investment for the MSC hailed as Malaysia's stepping stone to developed-nation status by 2020. The Malaysian government has set a target of attracting 50 world-class companies to the MSC by 2003.

Vendors from the information superhighway - from microchip designers and programmers to electric publishers, television and movie production houses and Internet service providers - can set up shop within the corridor. Malaysia's Prime Minister, Dr Mahathir, described the corridor as "a global test-bed" for the new roles of government, new cyber laws and guarantees, collaboration between government and firms, companies and companies, new broadcasting, new types of entertainment, education and delivery of health care.

This paper will attempt to explain in detail how the MSC is able to influence the application of technology in the industry in Malaysia.

Among the industries that will be discussed in this paper includes;

  1. Education
  2. Small Medium Enterprise
  3. Banking
  4. Telecommunication

Some of that will be discussed will also describe the use of technology in Malaysia and the extent of application of this technology have a place in these industries.


The use of technology in the education system in Malaysia is reflected by the establishment of a special division under the Ministry of Education called the Technology Education Division.

The Educational Technology Division is one of the twenty Divisions in the Ministry of Education. As the ETD prepares and produces educational radio and educational television programs for transmission using the National RTM networks, it works closely with the Department of Broadcasting of the Ministry of Information as well as the recently privatized Telecommunications Company of Malaysia (formerly the Department of Telecommunications).

The Educational Technology Division has six different Sections - Educational TV, Educational Radio, Audio Visual, Library, Evaluation and General Services, and Engineering. The Division is headed by a Director who is responsible to the Director-General of Education and he is assisted by a Deputy Director and a staff of about 250 in the six sections. Each Section has an Assistant Director who plans and administers all the activities in his/her own Section. At the State level there are the State Educational Technology officers whose functions are to coordinate and help implement the ETD programs, activities and projects.

The ETD with its staff and activities at both national and state levels strives to provide an integrated educational media service for over 6,500 elementary schools, over 1,150 secondary schools and 28 Teacher's Colleges in the country. The target school population is about 2.2 million elementary school children, 1.3 million secondary pupils and about 180,000 teachers in the country.

The most significant development in line with the need to integrate services was the transfer to the Division of the Library Section (with effect from January 1st, 1988) from the Schools Division of the Ministry of Education. The prime objective again relates to the coordination of the educational resource centers set up at State, District and School levels. Thus the idea for resources centers has had a pervading and interesting impact on the organization of educational technology support.

The Library section among other activities is involved in:
a)      Evaluation and selection of supplementary reading materials for Schools and reference books for District Resource Centers (another project being implemented through a loan from World Bank).
b)      Printing of guide books on subjects such as management of school Resource Centers, book selection and development policy for schools and other educational institutions.
c)      Printing of the Educational Technology Bulletin and other special publications.
d)      Conducting of courses/workshops/seminars for teachers, resource personnel, students, parents and others relating to reading and organization of resource centers. (Abdul Hamid bin Ayob, 1989, p.19)

What may be termed a shift in emphasis from the preoccupation with the production of radio/TV programs and the provision of library books and non-electronic AV materials to a concern over the concerted use of media (print and non-print) to enhance the quality of education may be dated from the launching of the 'Projek Menggalakkan Penggunaan Perpustakaan Sekolah' (Project to Encourage Intensive Use of School Libraries) in 1981. In that year the Ministry set aside RM409,000 for a three year period during which 25 rural primary schools selected from the 14 states were given guidance, training, encouragement, and assistance to integrate book and non-book materials and look upon them as teaching-learning aids. Initial emphasis of this project was the physical organization of material according to the established school library system. The rationale here was that systematic organization of book and non-book materials would lead to easy retrieval which in turn would encourage frequent usage.

Other than that the introduction of Smart School also marks a new milestone in technology education in Malaysia.
The Ministry of Education started to conceptualize the Malaysian Smart School in 1996, under the leadership of the then Director-General of Education, Tan Sri Dato' Dr. Wan Zahid Wan Mohamed. The conceptualized document entitled "The Malaysian Smart School: A Conceptual Blueprint" (SSPT, 1997a) explains that the Malaysian Smart School concept is derived from best practices from around the world, as well as from the best home-grown practices of teachers and educators in Malaysia. In essence, the Malaysian Smart School is defined as:

… a learning institution that has been systematically reinvented in terms of teaching-learning practices and school management in order to prepare children for the Information Age. A Smart School will evolve over time, continuously developing its professional staff, its educational resources, and its administrative capabilities. This will allow the school to adapt to changing conditions, while continuing to prepare students for life in the Information Age. To function effectively, the Smart School will require appropriately skilled staff and well-designed supporting processes (ibid., p.10).

One of the reasons for this conceptualization is to transform the Malaysian educational system so that it is parallel with, and in support of, the nation’s drive to realize Vision 2020. The Vision calls for sustained, productivity-driven growth that will be achievable only with a scientifically and technologically literate, critical thinking work force prepared to participate fully in the global economy for the 21st Century. Furthermore, this transformation of educational system is within the aspiration of the Malaysian National Philosophy of Education that aims towards “developing the potential of individuals in a holistic and integrated manner, so as to produce individuals who are intellectually, spiritually, emotionally and physically balanced and harmonious” (Ministry of Education, 1997, p.2).


Computers are getting more sophisticated. They have given banks a potential they could only dream about and have given bank customers high expectations. The changes that new technologies have brought to banking are enormous in their impact on officers, employees, and customers of banks. Advances in technology are allowing for delivery of banking products and services more conveniently and effectively than ever before - thus creating new bases of competition. Rapid access to critical information and the ability to act quickly and effectively will distinguish the successful banks of the future. The bank gains a vital competitive advantage by having a direct marketing and accountable customer service environment and new, streamlined business processes. Consistent management and decision support systems provide the bank that competitive edge to forge ahead in the banking marketplace.

3.1              Satellite Banking
Satellite banking is also an upcoming technological innovation in the Indian banking industry, which is expected to help in solving the problem of weak terrestrial communication links in many parts of the country. The use of satellites for establishing connectivity between branches will help banks to reach rural and hilly areas in a better way, and offer better facilities, particularly in relation to electronic funds transfers. However, this involves very high costs to the banks. Hence, under the proposal made by RBI, it would be bearing a part of the leased rentals for satellite connectivity, if the banks use it for connecting the north eastern states and the under banked districts.

3.2              Introduction of Biometrics
Banks across the country have started the process of setting up ATMs enabled with biometric technology to tap the potential of rural markets. A large proportion of the population in such centers does not adopt technology as fast as the urban centers due to the large scale illiteracy. Development of biometric technology has made the use of self-service channels like ATMs viable with respect to the illiterate population. Though expensive to install, the scope of biometrics is expanding rapidly. It provides for better security system, by linking credentials verification to recognition of the face, fingerprints, eyes or voice. Some large banks of the country have taken their first steps towards large scale introduction of biometric ATMs, especially for rural banking. At the industry level, however, this technology is yet to be adopted; the high costs involved largely accounting for the delay in adoption.

3.3              ATM Network Switches
ATM switches are used to connect the ATMs to the accounting platforms of the respective banks. In order to connect the ATM networks of different banks, apex level switches are required that connect the various switches of individual banks. Through this technology, ATM cards of one bank can be used at the ATMs of other banks, facilitating better customer convenience. Under the current mechanism, banks owning the ATM charge a fee for allowing the customers of some other bank to access its ATM.

Among the various ATM network switches are CashTree, BANCS, Cashnet Mitr and National Financial Switch. Most ATM switches are also linked to Visa or MasterCard gateways. In order to reduce the cost of operation for banks, IDRBT, which administers the National Financial Switch, has waived the switching fee with effect from December 3, 2007.

3.4              Internet Banking
Internet banking in India began taking roots only from the early 2000s. Internet banking services are offered in three levels. The first level is of a bank’s informational website, wherein only queries are handled; the second level includes Simple Transactional Websites, which enables customers to give instructions, online applications and balance enquiries. Under Simple Transactional Websites, no fund based transactions are allowed to be conducted. Internet banking in India has reached level three, offering Fully Transactional Websites, which allow for fund transfers and various value added services.

Internet banking poses high operational, security and legal risks. This has restrained the development of internet banking in India. The guidelines governing internet banking operations in India covers a number of technological, security related and legal issues to be addressed in relation to internet banking. According to the earlier guidelines, all internet banking services had to be denominated in local currency, but now, even foreign exchange services, for the permitted underlying transactions, can be offered through internet banking.

Internet banking can be offered only by banks licensed and supervised in India, having a physical presence in India. Overseas branches of Indian banks are allowed to undertake internet banking only after satisfying the host supervisor in addition to the home supervisor.


Information Management Division has been established in the Ministry of Transport (MOT) on October 1, 2008 to replace the Information Technology Unit. The establishment is consistent with MOT restructuring program that takes into account the growing number of users and the current needs of the ICT, ICT governance and it’s responsible for determining the direction of policy and strategy for ICT development besides monitor agencies’ ICT programs.

The technology-based projects ever conducted under this department is the use of AES CCTV cameras installed in the main streets in Malaysia. The project for which preliminary objections of the people of Malaysia to cooperate with police in making Malaysia Malaysian roads and highways safer.
AES or The Automated Enforcement System is the road safety enforcement system to monitor all federal roads, highways and expressways in Malaysia. This system came into operation on 22 September 2012.

The Automated Enforcement System (AES) operates in order to catch drivers who break speed limits and jump traffic lights.

For cameras that record offences of people who jump traffic lights, the warning signs are located 50 to 500m of the traffic lights.

For the first phase of the AES, 14 cameras were installed at Perak, Selangor, Putrajaya and Kuala Lumpur, with 10 of the cameras to catch speed limit breakers and four to catch those who jump traffic lights.

Ministry of Transport Malaysia has recently decided on placing a fixed 1,079 more AES cameras, however, the location is still undecided. According to Malaysian Institute of Road Safety and Research (MIROS), places with a high rate of accidents will be researched carefully and those cameras will be installed at that particular areas. Locations are promised to be revealed by MIROS as well once identified.

The implementation of AES in Malaysian roads can be said to be successful and achieve their goals.  As of June 11 2013, a whopping RM20 Million was collected by the government in fines from a total number of 673,339 summons issued. That’s about RM10 Million a month. Under the 673,339 summons, 628,045 summons were recorded as a speed violation and the remaining 45,294 was due to traffic light violations.

To date, a total camera of 831 cameras have been installed - 566 units at speed traps and 265 units at traffic lights.


The telecommunications industry in Malaysia has experienced insignificant growth in recent years. According to the Commission, the total number of mobile subscribers increased from 2.7 million at the end of 1999 to 7.5 million at the end of 2001 while mobile penetration increased from 12.0 percent to 31.4 per cent during the same period. Over the same period, fixed line subscribers increased from 4.4 million to 4.7 million.

Growth in demand for mobile services has far exceeded that for fixed line services according to the Commission, with mobile penetration rates increasing from 7.1 per cent in 1996 to 31.4 per cent as at 31 December 2001. Mobile penetration overtook fixed line penetration levels during 2000 and this trend continued to increase in 2001. Maxis believes this trend has been largely driven by the favorable regulatory environment, declining entry cost for subscribers, lower tariffs and the commoditization of mobile services through the introduction of prepaid services.

The mobile phone has become the favorite way for Malaysians to communicate. The telecommunications industry is mainly driven by the cellular segment. In general, a wider subscriber base, increases in international calls and increased popularity in the usage of mobile data and multimedia services supported the growth in this segment. In 2005 the introduction of 3G cellular phone services during the year contributed to further increases in the communication sector. By 2007, the number of cellular phone subscribers had risen to 23,374 million with a penetration rate of 85.1% and further expanded to 30.3 million at the end of 2009 with a penetration rate of 106.2%, representing one of the highest penetration rates for cellular phones in South East Asia.

5.1              The Introduction of LTE
On the 5th of December 2012, The Malaysian Communications and Multimedia Commission (MCMC) announced the allocation of the much-anticipated 2,600MHz wireless platform, thus paving the way for Malaysians to enjoy 4G LTE (Long Term Evolution) services. Theoretically, the latest 4G LTE providers could offer mobile broadband speeds of up to 100 Mbps. The Introduction of LTE in Malaysia shows a benchmark in technological development in the communication sector in Malaysia. With this positive development, the government through the MSC will certainly bear fruit.


ICT sector give the opportunities for future economy of Malaysia. The combination   of effort between the Government and Private sector has given solid foundation for further development of ICT in future. The initiatives and hard effort given by the two parties have design the framework which be useful for Malaysia to venture into this new paradigm.

The key to establishing ICT based economy is to shift from industrial-based economy to knowledge-based economy. This new challenged is believed to be the heart of the Malaysia’s ICT based economic idea. Malaysia’s Economy had progress well, yet its development efforts at best, make it progressing further in the industrial economy. Knowledge is increasingly a key source of value, and forms the basis for economic success, in the developing global environment with increasing challenges, risks and opportunities.

For future concern, Malaysia in in the progress of strengthening its ICT with more institutions, incubators, and research center built. It also need to develop more hard and soft infrastructure to support the growing application.

3004 WORDS


Ayob, Abdul Hamid (1989). The role of educational technology in educational reforms and its implementation as an educational innovation in Malaysia. Paper presented to the UNESCO Seminar on Implementation of Educational Policies and Reforms, Bangkok, April 25 to May 2.

Abdul Razak, N, 2009. Empowering Communities via the Telecentres: European Journal of Social Sciences

Economic Planning Unit (2009). The Economic Impact of MSC Malaysia.
Jones, D.K., S. Jamieson, Behrens and C. Mary, 2005. What Makes ICT Implementation
Successful: A Case study of Online Assignment Submission Central Queensland University

Ministry of Education Malaysia. (1997). Education in Malaysia. KL: Ministry of Education Malaysia.

MSC Malaysia. (n.d.). About US. Retrieved June 29, 2014, from http://www.mscmalaysia.my/what_is_msc

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