WCA 2007 Conference, Brisbane, July 20071 MEDIA CONVERGENCE ENVIRONMENT: CONFLICTS AND CHALLENGES. THE MALAYSIAN EXPERIENCE Syed Agil Alsagoff Universiti Putra Malaysia Selangor, Malaysia Prof. Dr. Azizah Hamzah Universiti Malaya Malaysia Abstract The popularity of the digital media and the availability of a borderless world of communication networks have formed a new environment, supported by the Information and Communication Technologies (ICT). With this influx of information, Malaysia is moving to the new era of knowledge creation and fast-moving competitive edge especially in the media business sectors. This paper intends to deliver definitions of media convergence environment technologies, which apply to the local communication and multimedia sectors. This phenomenon has blurred the boundaries between telecommunications, broadcasting and computing industries (amidst mergers and acquisitions), in term of roles, functions and economic scales. This new technological environment in Malaysia has resulted in conflicts and challenges to the country, especially to the local business sector, as it would impact economic scales and social values to the public and the sector itself, such as crisis in the new regulatory approach and technology acceptance, clarification of the digital intellectual property, market power, content values and diversion of cultures. This paper also identifies and examines the key issues and problems faced by Malaysia in its attempt to proactively respond to the winds of change breezing through media convergence technology. Thus, Malaysia has to fully maximize her strategies and challenges to obtain maximum benefits given the advent of this technological environment. WCA: Communication in the 21st Century: Exploring Roots; Expanding Visions WCA 2007 Conference, Brisbane, July 2007 2 Introduction The vast potential of information and communication innovations such as satellite and telecommunications systems and the computer based communication network, the Internet, is indeed a blessing. However, it could affect the social changes and development in this country (Azizah,2005). Advances in information and communication technology, particularly the Internet have also brought about new challenges in the regulatory regime. The economics of information and electronic services differ significantly from the economics of physical goods (Kelly, 1997).In the transitions from industrialized economies to ‘knowledge-based’ information societies, the paradigm emphasis shifts from commodities and physical infrastructure to people and ideas as the classical trade in commodities and goods is characterized by the economic of scarify and depletion (Cutler, 1997). However, the information economics structured in the digitalized era would concern re-using information as a renewable resource, which would make the new economics to be most sustainable to convergence environment and to increase returns to scale ang generate powerful first-mover advantages to provide movement in the right market direction. Malaysia, like any developing country, has always been very responsive to the latest developments in the media and the Malaysia government has implemented various development plans as well as promoting human development, especially in today’s environment of social and economic change. Malaysia has also been particularly attentive to the rapidly changing world of information and communication technology but at the same time is mindful of the effects of the information gap or the digital divide in the Malaysian society. Defining Convergence The current and future movement of modern media industry is dominated by the new economic scale direction, the process known as “convergence”. No empirical global definition would clearly describe this environment in the conceptual basis. Syed Hussein (1999) however explained that convergence is a process of changes or a paradigm shift of the traditional technological development into the new services industry, which would blur the boundaries between telecommunications, broadcasting, and computer industries. Therefore in the converging industries, the telephone, computer, cable television, and media companies are hectic with mergers and acquisitions. WCA: Communication in the 21st Century: Exploring Roots; Expanding Visions convergence means that such products may now be created in the digital format and may be printed in the traditional format when there is demand for the products. digital form’. broadcasting. either broadsheets or tabloids in the various languages of the main ethnic groups in our country . beginning with the earliest newspaper. The print media has the longest history. bringing the merging of computers. The US Department of Commerce (June 2000) has reported that advances in the computer power and connectivity have ‘produced sharp declines in the prices of computer processing. print. magazine and book publishing industries. The eBookman for an example is also a personal digital assistant (PDA). and Convergence involving the emergence of a single value chain based on digitalization and networking. communication and knowledge industries. In the newspaper. Brisbane. Mandarin and Tamil. These are:: • • Convergence related to the process of market and industry restructuring. This has produced an upsurge in Internet activities as well as business investments in IT hardware and software and it is clear that the phenomenon has contributed to the US economic strength.WCA 2007 Conference. data storage and retrieval and communications’. multimedia. posts. communication media is used to describe the convergence of traditional mass media and computer technologies (Straubhaar and LaRose. July 2007 3 The new term. Malaysian Media Scenario Today. English.Malay. 2000). Convergence of the communications technologies therefore means that all communications technologies are all converging into ‘common computer readable. Now there are about 50 newspaper dailies and weeklies. the Penang Gazette in 1838. a reader that can play audio books and a music player. The definition focuses on the crucial aspects of the commercial dynamics at work. especially in radio and television. In the 1950s the introduction of solid-state technology resulted in the proliferation of cheap portable radio receiving sets and in 1963 the introduction of the first black and white television in Malaysia ensured that WCA: Communication in the 21st Century: Exploring Roots. The e-book culture is truly an amalgamation of the traditional print format and the digital format. Expanding Visions . ] The most significant mass media development in Malaysia is in the field of broadcasting. the development of this information orientation in Malaysia can be seen in many forms. Cutler (1997) defines this new technological movement as values of current economic development era: Convergence is a progressive integration of a value chain of the information and content industries – telecommunications. electronic commerce and data processing – into a set of linked economic markets and a single value chain based on these of distributed digital technology. magazines and advertisements. licensing of new entries. like all citizens of the globe. Malaysia has one of the highest penetration rate: 10. Brisbane. This figure represents a very high level of service penetration when compared to other ASEAN Countries. video and virtual reality to mention a few. The performance of the communications infrastructure in the country over the last decade has been impressive. communications services in Malaysia have been traditionally provided on a monopolistic basis. video conferencing and many other multimedia applications on the web like graphics. In addition. Malaysia has been reforming and restructuring the telecommunications and broadcasting sector since 1987. video. Different sources of information.4 lines per 100 populations in 1987 to 22 lines in 1999. we have witnessed an explosion of the media products. from the increase of magazine titles to the number of satellite television channels and the advent of the Information Technology. audio and animation. make up what is known as the information and communication media. Expanding Visions . together with other media genres such as cinematography. trunk fiber networks have been laid criss-crossing Peninsular Malaysia and stretching across the South China Sea to enter the eastern part of the country. With Malaysia's own satellite. books. The growth of the telecommunications industry in the country is also underpinned by demand for new services arising from the convergence of the information technologies in the field of switching and transmission such as ATM. exchange and enjoy one another’s messages. Over the past decade. regional Chinese. July 2007 4 Malaysian citizens. ideas and entertainment.WCA 2007 Conference. ISDN and SDH has created new services like VOD. or the mass media because of their mass appeal and pattern of consumption and distribution. news. Many optical fiber cable network projects are still in the pipeline. As in most countries. Several policy initiatives have been undertaken to foster competition in the country include those that are relevant to the determination of boundaries between competitive and monopolistic markets. monitoring performances and several practices WCA: Communication in the 21st Century: Exploring Roots. In fact. entertainment and other cultural products instantly in the comforts of their homes.3 per 100 population for cellular phones in Asia with subscribers amounting to approximately 3 million as at the middle of 2000. In 1996 Malaysia again joined the ranks of satellite broadcasting with the introduction of the pay TV channel offering both Direct-to-U (DTU) television and radio broadcast services of more than 22 channels in digital format comprising local Malay content. The penetration rate for fixed lines has grown rapidly through period from 7. it is within our reach to develop infrastructure superhighways for the nation's needs. English and Tamil content as well as a number of global networks. The participation of the private sector in the transformation and development of the country's communication infrastructure has ensured the necessary information infrastructures and work on wiring the country with the necessary information infrastructure have been actively carried out for the last 10 years. were able to receive. international and value-added segments.e MSC. Brisbane. · Focus on driving the prices down and enhancing quality as well as making services widely available and accessible to support the efforts of the government to create an information rich society. economy. • • • Malaysia’s Current Policy Setting and Scenario The government feels that it is crucial to have clear-cut policies for this rapidly changing sector which will influence our way of life. wireless. July 2007 5 related to maintaining sustainable competition in the market. · Encourage technical advancements and innovations in its services to enhance the international competitiveness of users and IT/multimedia application. trunk. Expanding Visions . education and entertainment.WCA 2007 Conference. The key to this development trend is to enhance liberalization efforts that have been taken by the government to allow private participation in the sector. the government strongly feels that the country must develop a competition that could: • Encourage the provisioning of a world class communications infrastructure as the latest technology mix to support the implementation of policy initiative related IT development i. To ensure that Malaysia gets the maximum value from a dynamic communications industry and that it is internationally competitive. A long term strategy to achieve Vision 2020 was formulated and it is clear that the government is serious about transforming the economy into the information age by laying a number of relevant national and industry development plans which includes the following: • • • The Ninth Malaysia Plan (2005 – 2009) The National IT Agenda The Multimedia Super Corridor The Seventh Malaysia Plan (1996-2000) WCA: Communication in the 21st Century: Exploring Roots. Competition has gradually been introduced in many fronts including the local loop. The thrust of the competition policy as envisaged in the Equal Access Policy is that it must lead to the improvement in the quality of service and at the same time bring down prices as a result of improvement in operation efficiency. culture. · Support the creation of a conducive environment that is necessary to attract investments into the sector and prevent duplications of infrastructure resources. To achieve this status the government launched two key programmes. Brisbane. The MSC was launched on August 1. which demonstrated the total commitment of the nation in trying to keep up with the exploding computer and communications technology and providing its 23 million citizens with access to information in an equitable manner. the government is actually forging the way forward for Malaysians to be part of the Information Society because Vision 2020 is also about an ambition to gain knowledge empowerment for the Malaysian society. the government clearly has a pro-information orientation because in the Plan the government launched a policy of encouraging Malaysians to use computers by allocating RM2. the Multimedia Super Corridor (MSC) and the National IT Agenda. 2000) where all Malaysians will have access to information and learning.WCA 2007 Conference. 1996 by the Prime Minister. The National IT Agenda (NITA) The Malaysian government launched the country’s IT agenda in May 1993 with the establishment of the National Information Technology Council (NITC). The NITC developed Malaysia’s National IT Agenda. Infrastructure. The main task of NITC is to assist Malaysia in her deliberations towards achieving the status of a civil and knowledge society as stipulated in Vision 2020 (Tengku Azman. Other pro-IT strategies are imbedded in the following initiatives: • • • Establishing strategic alliances with overseas markets in order to encourage local investors to go abroad and participate in the international commercial world Mobilizing high domestic savings to support local investments Introducing policies to ensure a transformation from investment-driven to productivity-driven economy In pursuing Vision 2020. The NITA provides strategies and plans through its three key elements of People. which were formulated by the National Information Technology Council (NITC). and Applications as shown in Table 11.3 billion for IT related investments. Expanding Visions . Table 11: Elements and Strategies of NITA ELEMENTS STRATEGIES WCA: Communication in the 21st Century: Exploring Roots. (NITA) which recognizes the importance of technological intensity in driving towards knowledge empowerment and the creation of a Values-based Knowledge Society for Malaysia. July 2007 6 Under the provisions in the Seventh Malaysia Plan (1996 – 2000). Expanding Visions . Malaysian leaders were quick to develop an Internet infrastructure that would link Malaysia to the Web. providing affordable appliances and the provision of laws and regulations. Multimedia Super Corridor Given the changing communications mediascape. began massive and ambitious plans to wiring up the nation. comprising of individuals and groups in connection with building-up strategies in education. The MSC was initiated ini 1994 and launched on August 1.WCA 2007 Conference. It was hoped that by linking to the new global knowledge-based economy. All three elements are of utmost importance and all sectors should participate. Brisbane. July 2007 7 People – Individuals and groups • • • • • • • • • • Education Skills development Acculturation Network Affordable appliances Laws and regulations Indigenous content development Interactivity Infotainment. thus laying the foundation towards a knowledge-based economy. 1996 by the then Prime Minister. Huff (2002) recognizes that Malaysia’s MSC is a way for Malaysia to join the information society. The third element deals with Applications in establishing indigenous content development. edutainment and info communication. The second element is People. Malaysia would be able to ride on the wheels of the new technology. infotainment. This project demonstrated the WCA: Communication in the 21st Century: Exploring Roots. no government can now ignore the obvious challenges and the Malaysian government has as most other Asian nations. and grow together in order to facilitate the transformation of the Malaysian society into a value-based knowledge society and tomorrow’s wired world. Perhaps Malaysia can lay claim to symbolizing this move better than anywhere else in its Multimedia Super Corridor (MSC). develop. developing the appropriate skills and dealing with the process of acculturation. interactivity. edutainment Info communication Info structure Applications Source: NITC National IT Agenda. July 1997 The NITA is therefore entrusted to promote the development of an information society where all citizens shall have access to information and knowledge through Info structure of which the main strategies are directed towards networking. July 2007 8 total commitment of the country in trying to keep up with the competition and challenges of the new global information and communication environment. It is developed with the following objectives: • • • To achieve the goals of Vision 2020 by catalyzing productivity-led growth To leapfrog Malaysia into leadership in the Information Age by attracting and developing worldleading companies through “smart partnership” between leading international and Malaysian firms To build global bridges between Malaysia and other intelligent cities for mutual enrichment (NITC Malaysia.WCA 2007 Conference. Brisbane. The incentives are: • • • • • • • • • • A world-class physical and information infrastructure Unrestricted employment of local and foreign knowledge workers Freedom of ownership Freedom to source capital to funds globally Competitive financial incentives Intellectual Property Protection and Cyber laws No censorship of Internet Competitive telecommunication tariffs Tender key MSC infrastructure contracts for companies using the MSC as their regional hub MDC as an effective one-stop super shop The MSC was also to be: • • • • • A test-bed for invention. 2001) The 10 point Bill of Guarantees pledged by the government should remain one of the most attractive pull factors. Malaysia will leapfrog into the Information Age. The plan was actually assisted by the McKinsey consultants who advised that by developing information industries. and other ground-breaking multimedia developments Vehicle for attracting world-class technology-led companies to Malaysia and for developing local industries A multimedia utopia offering a productive intelligent environment An island of excellence with multimedia-specific capabilities A global community living on the edge of the Information Society WCA: Communication in the 21st Century: Exploring Roots. Expanding Visions . research. as to ensure the continuous creation and development of MSC. a 100 sq. Fujitsu. The MSC is planned to develop along three phases. The area is also the location of two new cities. develop the second cluster of about 250 world-class companies. develop International Cyber court of Justice in MSC and develop another cluster of intelligent cities linked to the global information super highway (Ariff and Chuan. To be achieved by end of 2002. • Phase 2 : The Malaysian Multimedia Development Corporation (MDC) shall link the MSC to other cyber cities in Malaysia and worldwide. km. 1998). until recently the world’s tallest twin tower. ACER and Nippon Telegraph & Telephone. launch seven flagship applications. develop framework of cyber laws and develop Putrajaya and Cyberjaya as world class intelligent cities. to the Kuala Lumpur International Airport (KLIA). July 2007 9 The MSC is a special zone built in an area of 15 by 50 kilometers (about 750 square kilometers. Putrajaya and Cyberjaya. global test-bed for new multimedia applications. Brisbane. IBM. an area about the size of Singapore. set global standards in flagship applications. Expanding Visions .WCA 2007 Conference. policies and practices in the multimedia environment. UPM-MTDC (Universiti Putra-Malaysia – Malaysian Technology Development Corporation) and Kuala Lumpur Tower. Hewlett-Packard. WCA: Communication in the 21st Century: Exploring Roots. It has been described as the Multimedia Utopia due to its world-class physical infrastructure and next generation multimedia network as well as the provision of the latest legislation in cyber laws. Other areas designated as MSC locations are the Technology Park Malaysia. Sun Microsystems. Compaq. set-up 50 world class companies. The idea is to shove and position Malaysia as a major ICT hub in the region and the world. larger than the whole of Singapore!) south of downtown Kuala Lumpur. harmonized global framework of cyber laws and develop 4-5 intelligent cities linked to other global cyber cities • Phase 3 : Transform Malaysia into a knowledge society. Putrajaya is the new seat of the government housing the office of the Prime Minister while Cyberjaya is the MSC intelligent cyber city complete with a cyber university. the Multimedia University Malaysia (MMU). It is designed to become the ideal multimedia environment in order to attract world class and local companies working together. the Kuala Lumpur City Centre (KLCC) with the Twin Tower. which are: • Phase 1 : MDC to oversee the creation of the MSC. The area starts from one of Kuala Lumpur’s most recognizable construction. The MSC has attracted the attention of the world and the then Prime Minister. who had been personally spearheading this project has managed to vie the attention of the leading IT conglomerates including the CEOs and Presidents of Microsoft. The argument is that some of the media players involved under MSC project are not aware of the federal legislation and policies development. compared to other paper-based publication which are more easily identifiable in publishing and distributing such publications to the public. as well as local and international media players. Universal Service Obligations / Universal Service Provisions The provision of a clear regulatory framework in the form of the Communications and Multimedia Act 1998 that establishes the principals and approach to convergence. This problem has created a paradox thinking among the media practitioners. strategic approaches had been taken by the Malaysian Government which include: Enabling Legislation The establishment of a clear set of policy objectives taking into accounts the ramifications of convergence. The regulations and policies came just several months after the MSC project was announced by the Prime Minister. as those online and multimedia players (internet access providers. regulations and policies caused of new development shift to support multimedia industry were not well disseminated to the public. as they do not really understand about those policies strategy in line with the promotion of a well-being multimedia technology competitive environment in Malaysia. social and industry objectives. search engines. It is noted that there are double-standards in practicing the media regulations and policies. The Act provides the basis for the development of WCA: Communication in the 21st Century: Exploring Roots. IT capability and practices. Sharifah (2002) reported that there still exists an imbalance between the Malaysian government’s IT development vision (access to IT services). Besides being long term and visionary. Expanding Visions . acceleration of changes in the industry towards convergence and consumer interests. it sets a clear direction for the industry and provides a basis for the achievement of economic. MSC’s media legislation. Brisbane. Strategies for Creating and Implementing Policy Setting To ensure that the media policies and regulations would reflect the new mapping media scenario. web host or content aggregators) do not have full control over the content which passes through their servers or websites.WCA 2007 Conference. July 2007 10 However. With the approach of the twenty first century. and transparent. The regulatory framework provides a licensing regime that is incentive-based. Brisbane. Strategic Plans The formulation and implementation of a strategic plan to provide clear cut targets and time frame for the implementation of strategic policy directions for the industry. it will change cultures and societies and it is no wonder that most governments are re-engineering WCA: Communication in the 21st Century: Exploring Roots. organizations or countries to launch the greatest technological leap that could reap untold rewards and achievements in the business and commercial world. All over the world people notice the emergence of a new social and economic system. To ensure fairness and just administration of the Communications and Multimedia Act. pro-competition. we are thankful for the major technological breakthroughs including digital layout which replace the time-consuming and expensive typesetting. In book. technology neutral. The strategic plan will also focus on how well the national policy objectives for the convergent sector could be achieved. market driven. In short. to ensure the participation of the industry and consumers. magazine and newspaper industries. secure and reliable networks. which enables greater freedom to participate in a new political. we have established the Access. July 2007 11 the info-communications infrastructure (includes Universal Service Provisions) and safe. desktop publishing via the personal computer and of course the Internet. A Single Ministry Relevant institutions were established to accommodate changes in the industry. protects consumer interest and nurtures local culture and social values. it has established the Communications and Multimedia Commission as a single autonomous regulatory body for the convergent industry. Consumer. promotes competition. An important component in a convergence environment is the easy access towards information which then enables greater freedom and easier creating. distributing and sharing of information and knowledge.WCA 2007 Conference. Finally. The introduction of new information and communication technologies has permitted just about anyone. an appeal tribunal with full judiciary powers has been provided for. The Malaysian transition to an information society will create a time of profound change due to the advances in technology. Expanding Visions . social. While policy issues are within the realm of the Minister. Malaysia is expected to enjoy high quality media utilities and practices. Technical Standards and Content Forums. technological and economic environment. The forums are tasked with the formulation of standards and codes of ethics in the contexts of selfregulation. Anyone who is displeased by any decision could recourse to this procedure. The Malaysian Communication and Multimedia Act provides a set of media regulations which regulates the converging communications and multimedia industries in Malaysia. regulate and to enforce the communication and multimedia laws to all local media players. Mahathir Mohamad rightly feels that the nation can benefit from a transformation of the local economy from. The commission has been set up to monitor. to fulfill the need to regulate an increasingly convergence communications and multimedia industry. To promote a new civil society where information-based services will provide the basis of continuing enhancements to quality of work and life. which are licensed under the Malaysian Communication and Multimedia Commission (MCMC). At the same time. networks and facilities. Brisbane. The Malaysian government is not allowing itself to watch this challenging and interesting breakthroughs and advances in information technology from the sidelines. and industry self-regulation. flexibility. The Act seeks to provide a generic set of regulatory provisions based on generic definitions of market and service activities and services. coordinating its implementation and monitoring industry performance. bias towards generic rules. to now pursuing to build an information and knowledge society in line with the rapid changes and challenges that are taking place globally. firstly. Malaysian Communications & Multimedia Act 1998 The Malaysian Communications and Multimedia Commission was created pursuant to the Malaysian Communications and Multimedia Commission Act (1998) as a new regulator for the communications and multimedia industry in Malaysia. July 2007 12 themselves and launching their own and local versions of the Information Society. are: • • To establish Malaysia as a global centre and hub for communications information content services. The former Prime Minister. • WCA: Communication in the 21st Century: Exploring Roots. administrative and sector transparency. emphasis on process rather than content. To grow and nurture local content and culture. more competition and less regulation. The jurisdiction of this Act is restricted to networked services and activities only. Tun Dr. The Communications and Multimedia Act 1998 is based on the basic principles of transparency and clarity. The Communications Sector of the Ministry is responsible for the policy and strategic planning of the communications industry. Expanding Visions . the Communications and Multimedia Act (1998) was passed. regulatory forbearance. The main objectives as provided in the Communications Act 1998. The Acts reflects the changing needs of the industry with new emerging services.WCA 2007 Conference. an agriculture base to a manufacturing and export base. quality and comprehensive services. throughout the Asian regions (Lowe. 1999). Technical Forum. Consumer Forum. and Content Forum The forums consist of respective members of local media players and civic groups. the government has set up four industrial forums: • • • • Economic Forum. The Act also reflects a convergence market of network service providers. Brisbane. Implementation Coordination. To create a robust applications environment for end users. To promote consumer confidence in the industry. The aims of these forums are to create and promote local contents.WCA 2007 Conference. The national policies for the communications and multimedia industry are set out in the Act (Section 3(2)). In doing so. Strategic Planning. Generally. Expanding Visions . July 2007 13 • • • • • • • To give priority for the long-term benefits of the end user. the act will benefit the end-users by gearing them to open competition and new market of being providing newer. To ensure access and equitable services. objectives and activities of the Communications Sector involve Policy Planning. To develop sector capabilities. as these will increase the quality of those media products and emerge to cater for an information-based society. Separate or different licenses for content application services to set-up new regulatory framework to promote the growth of the development of local content application services are reflective of the cultural diversity of the country (Lowe. networks and facilities. A Commission to supervise and regulate the converging activities and to enforce communications and multimedia laws has been set up. To allocate resources efficiently. and To provide secure and safe networking. The Acts reflects the needs of the news of the industry with new emerging services. The government wants to attract new market entrants and to increase competition. WCA: Communication in the 21st Century: Exploring Roots. In the long term. An open and liberalized market is also intended to increase the quality of products and services offered by the industry. 1999). It is hoped that Malaysia would be able to be a global centre for communication and multimedia information and content services. and Industry Relations. In Malaysia. Brisbane.WCA 2007 Conference. July 2007 14 In Depth View of The Legislation The act is a legal structure to regulate the convergence of telecommunication media. content needs in balancing the values of Malaysian cultural. Leo Moggie (2000) accentuated that uploading or downloading MP3 file generates new problems to music industries. broadcasting and multimedia. Since then. Hence. Khaw (1999) explained that there are several criteria to recognize these activities for example using system or software without approval from the owner of the data. Social Regulation Social regulation is defined as a form of regulating social needs in regards of certain mechanism for example licensing. Even in the scope of social regulation. Hence. the government should provide jurisdiction to shield the content. In Addition. Generally. the rights for the original materials are owned by the first owner. the contents in the Internet are jeopardized in terms of copyright issue. Khaw (1990) stated that if there are any cases related to faux or imitation of our local content from other countries. The drastic vastness of Internet technology is harmful if users purposely get involved in illegal activities to gain profits. (Leo Moggie. which will dominate content services and encourage the development of content as well as cultural value in Malaysia. 1997). legislations protect our intellectual information content that have been setup. as well as uploading information through internet without permission of the owner of the internet services. Furthermore. the framework has been setup after the Telecommunication Acts in America was approved by the US President in 1996. the convergence of the media initiates the cyber legislation because of the vitals of those media to deliver information technology in the future. Expanding Visions . 588 Act was planned to balance the drastic acceleration of information technology besides organizing or regulating the act that we possess currently. type of content. The Development of Internet Content and Information Regulation WCA: Communication in the 21st Century: Exploring Roots. copyright act (1997) proposed that even materials that have been transferred to digital or optical technology. Leo Moggie (1998) emphasized strong framework of regulation. all of information will be strained. Under Social Regulation 588 Act. Gambling in Malaysia is illegal if they are not granted any license from government. is very obstinate to hinder. Ali Sharom (2000). Abdul Halim Shafie (2000) affirmed that a print out from the media has to link with the cultural aesthetics and education of people in Malaysia. the issues of pornography. Brisbane. the increasing volumes of online content provide social problems in this new era. WCA: Communication in the 21st Century: Exploring Roots. 1998): a) Controlling at the stage of decision maker of the policy and legislation. the convergence of new media is a complete idea of regulation to monitor the emerging of information technology. the rights and protection towards users are not emphasized when they use any products or services that are imparted by the communication industry. In the era of globalization. there are three steps that should be followed to regulate the contents of the Internet (Ismail. information technology is used to relate to cultural impact. Gambling through the Internet however. The uncertainty of online content has created problematic social attitude especially the habit of surfing pornographic websites. Expanding Visions . As a basis. (Syed Hussein. Issues of globalization and the conception of people’s identity is an immense dilemma nowadays because globalization spawns the exertion of people’s unity. In addition.WCA 2007 Conference. 2000) He also added that Malaysia has to confront this dilemma. c) Uniting policy makers at international level. It is worse if political campaigns are held through the Internet to confer wrong information toward other parties to win in elections. July 2007 15 Even though contents application has been penetrated. b) Creating a wise system to strain negatives information. There are several issues related to content of information. In the Malaysian context. Khaw (2000) underlined that the government should execute an open policy allied to information in the Internet. Hence. otherwise the negative contents could been access or seen by the user. 2000). how we intend to strain information if the websites have been powered by oversea companies which are known to impart free web space to breed any information from their website. gambling and slander are critical issues that are discussed before the circumstances generate negative thoughts as well negative culture in Malaysia. so that complete tussle can eliminate those negative contents in the Internet. (Shamsuddin. affirmed that precedence should be give to users in order to shield them from being monopolized or cheated by someone. For instance. Therefore. local content must be clarified clearly to the audience in order to educate as well as self-censor information content. MCMC (2003) proposed that the government and the industry adopt an ambitious vision for the industry: “To develop Malaysia as a major regional and global centre for content services. local content must be of high quality. public and private institutions and bodies which include the regulation enforcement aspect of the industry. the Communication and Multimedia Act (1998) and consultation with industry players. Malaysia desires to project its national identity and values through local content. To do this successfully. directs where content can be shown and dictates who can develop content). and demanded by Malaysians. which include both censorship and content regulation (which defines content. it is unlikely that any definition will be comprehensive or be up-to-date with Malaysia’s national identify and values. and the licensing of various players in the industry to meet specific local content quality or quantity requirements. The proposed cultural objectives for the content industry are to consolidate racial and national unity through the projection of national culture: Malaysia’s Networked Content Industry Objectives Malaysian Communications and Multimedia Commission and the encouragement of the production of content which is of high quality. and both domestic and foreign stimulation. and of course content regulation and policy. These objectives have been developed based on information contained in the draft national content policy. able to enrich and enhance the quality of material and spiritual living in accordance with socialeconomic development. accessible and affordable. Given Malaysia’s vibrant and diverse culture. economic and social aspects of the industry. incentives and stimulation which include private and government investment. Brisbane. Expanding Visions . WCA: Communication in the 21st Century: Exploring Roots. A critical factor to project the Malaysian national identity and values is an understanding of what national identity and values are. which include licensing to remove access of uptake barriers. innovative and creative. to encourage the development of local content which projects and nurtures national identity and values. and to establish a well-developed and efficient Networked Content Industry” To support this vision the government and industry representatives have proposed a balanced set of industry objectives covering cultural. licensing access/regulation and policy. and the types and function of government and public agencies in the content approval process.WCA 2007 Conference. Thirdly. July 2007 16 Problems and Challenges in Malaysian Media Convergence: What industry development mechanisms should be put in place to achieve Malaysia’s objectives? There are several vital mechanisms that should be noticed. Secondly. Lastly. Malaysia needs to build trust with the public in using new forms of networked content in a secure and safe manner. viable industry that is innovative and contributes to employment and Malaysia’s trade balance. which is less than half compared to industry contributions in leading countries. rather than specifying the amount to be invested in local content (e. Malaysia is substantially lagging behind leading countries.g. Ineffective enforcement of copyright negatively impacts revenue flows to music and moving picture industries. Ineffective and unfavorable advertising regulation results in limited advertising revenue for Malaysia’s Networked Content Industry: Content regulation for advertising is unfavorable towards advertising on free-toair television. Expanding Visions . Malaysia need s a competitive. July 2007 17 Malaysia also desires to make the Networked Content Industry a key economic contributor.63% to Malaysia’s GDP. and made-in-Malaysia has made advertising in Malaysia unattractive for multinationals due to the compliance burden of producing commercials in Malaysia. which drives advertising revenue away from the Networked Content Industry towards nonNetworked media such as print. in order for new access technologies to become widely utilized. There is limited revenue redistribution to local content creators. For this purpose. The proposed social objectives for the Networked Content Industry are the contribution to Malaysia becoming a knowledge society and make access and content available everywhere and affordable to all as well as establish a secure.WCA 2007 Conference. Malaysia lags behind leading countries in the development of its Networked Content Industry due to the lack of funding and scale. Brisbane. As such. Economically. In addition. The accessibility and affordability of both local and foreign content is an important contributor to achieve this national aim. Malaysia’s Networked Content Industry contributes 0. and regulations require 60% local language to be broadcasted on free-to-air television. station can choose to show low cost programs or air re-runs). Access to local and foreign content everywhere in an affordable manner will enhance knowledge and increase productivity. in the penetration of ‘newer’ access technology. Potential losses through piracy discourage investment into local content and this results in less local content available for radio and television. Socially. with the exception of television. local content popularity is between 50 to 75% lower than leading countries. Hence. and ineffective content and access regulation and enforcement. WCA: Communication in the 21st Century: Exploring Roots. robust and safe networking environment Malaysia’s aim is to become a knowledge society. television subscription is not legally required to broadcast or invest in local content. However. Expanding Visions . training and specialization of the workforces. representing 82. thereby not stimulating sufficient demand. In addition. Demand for knowledge workers has spurred growth in the number of education providers in the IT and hightech services. many government bodies govern the Malaysian Networked Content Industry. 2003) noted that the majority of the 15. WCA: Communication in the 21st Century: Exploring Roots. July 2007 18 Lack of competencies due to shortage of world-class skills. thereby increasing the risk to invest in and produce local content. Lack of transparent content regulation and inconsistent enforcement are also apparent.212 between 1999-2001. especially from the various universities and colleges.2 per cent of the total population of knowledge workers. Insufficient incentives to invest in local capabilities and to attract foreign co-productions results in a lack of skills and technology. The 4th Impact Survey (MDC. Some industry analysts observed that the MSC has stimulated the supply of knowledge workers and technopreneurs and has created jobs faster than the number of skilled personnel provided by the education providers. The Malaysia government is now working on the incentives and strategy to persuade skilled IT personnel to return and work in the home industry. industry scale and promotion ability negatively impacts the industry’s ability to create popular local content. Such investments by the Malaysian government will eventually pay off although there are problems such as shortage of skilled IT workers although it should be noted here that about 30 per cent of Malaysian knowledge workers are employed by the Singaporeans.WCA 2007 Conference. Overlapping content regulation and multiple governing bodies cause a high compliance burden and increase the risks in content creation. resulting in reduced risk taking and stifling innovative content and ineffective industry organization in promoting local content locally and overseas. The Malaysian government has always maintained that the country has sufficient human resource and is looking at increasing further skills. MDC claimed that Malaysia is able to fulfill demand needed by the industry. Competitive disadvantages prohibit local content creators for moving pictures to gain scale. Brisbane.337 knowledge workers in the MSC are Malaysians. Lack of skilled personnel is perhaps a problem faced by many countries. the MDC 1999 Education IT HR Survey shows that the supply of science engineering and technology graduates has increased to 137. resulting in a high compliance burden and lengthy approval processes. One of the main emphases of the Malaysian Vision 2020 is to create and increase the supply of knowledge workers. Therefore the challenge now for everyone of us is to ensure that the citizens are wired to receive information. For the future. In preparation for the future rollout of newer access technologies. the basis of the creation of the Information Society and NITA’s Value-based Knowledge Society. Brisbane. the industry must prepare for the successful introduction of new Networked Content technology. knowledge and communication. Then. the limitation of regulation on open standards and interconnectivity slows the demand for newer technologies and reduces competition and innovation and ineffective government incentive schemes to stimulate demand for new access technology. Malaysian’s purchasing power parity makes PCs expensive and broadband prices are the highest in the region. The international benchmark study demonstrates that the government of countries leading in internet and wireless penetration and usage have adopted an active role in creating content and promoting the use of the new media with the general public. Expanding Visions .g. Malaysia’s pro-information orientation is visible in the government’s efforts to promote IT awareness among the population and generate new growth opportunities as well as skills and employment in high-tech areas. economic. in the interactive industry. At present. For Malaysia it simply means efforts to: • • • • Create social harmony and cohesion Reduce disparity between rural-urban areas Bridging the gap between the poor and the rich Ensuring racial and religious harmony Therefore. Lack of competition or price regulation for newer access mechanism keeps access prices relatively high. there are no strong revenue models to support the development of local interactive and wireless content. Information is therefore the key element in the fabric of Malaysian society due to its impact on social. political and cultural life of the country. adequate open standards are required. and there is limited independent wireless content being created (e. A few large companies dominate Malaysia’s telecommunications industry. content created outside the large telecommunications players).WCA 2007 Conference. Another emphasis is access and ability to network. especially in connecting remote servers and WCA: Communication in the 21st Century: Exploring Roots. July 2007 19 Uptake of ‘newer’ access technology is low due to relative high access charges and ineffective government stimulation. which results in high prices for both existing and new access infrastructure. less than 5% of revenues are distributed to content providers. This has resulted in a low penetration of PCs of 13% and a lack of demand for broadband (3% penetration). made possible by the rapid advances in technological and industrial developments in computers and telecommunications. the interests of Malaysian citizens are being formulated and the prospects are good for all including women because there is an adequate representation of all groups and IT advantages can be equitably shared by all. Despite cynicism regarding ‘grandiosity’ ‘boastful terms’ and entering a ‘plateau’. the Philippines. Brisbane. E-Learning. The government through Vision 2020 has definitely made the right decisions and chose the right direction in developing the information and communications industry according to our own mould. MSC. The government has a strong commitment to the vital role women’s organizations play as creators. etc. All citizens are expected to be able to create social relationship at all levels by communicating via networks like Internet. the MSC will certainly increase the level of preparedness of the country to transform into a fully industrialized knowledge-based economy by 2020. Malaysia had done well and if compared with other Southeast Asian countries. Malaysia’s explicit national initiative. E-Government. Clearly the IT industry is the central idea in our government’s policy especially with the establishment of MIMOS. and Vietnam. which is the knowledge –based service industry. It is not just the government getting wired by focusing on the Cyberjaya but also ensuring that all citizens have access to information in an equitable manner.WCA 2007 Conference. Malaysia is in the middle of the pack after Singapore and Hong Kong. The creation of the MSC after being inspired by Silicon Valley by the Malaysian government is truly one of the major triumphs for all Malaysian in the future. 395) when comparing Malaysia with fellow members of ASEAN indicated that Malaysia’s knowledge strategy might actually pay off while Huff (2002. but above Thailand. WCA: Communication in the 21st Century: Exploring Roots. ECommunity. The future in Asia is after all the next economic growth engine. and people’s understanding of the value of communication. Support should be given to all the efforts taken by Malaysian women to further upgrade their status in the new communication and information technologies scenario. the MSC Superhighway has certainly been copied and used as models by other countries and some neighbors. advocates and providers of services to various groups in the country. 267) pointed out that within the contents of the larger Muslim world. the MSC will enable the creation of a better class of companies that can compete with their regional counterparts in a liberalized and globalised economy. Expanding Visions . July 2007 20 terminals with each other. Conclusion Evers (2003. Access must bring along with it changes in people’s lives. In the long term. In the present IT scenario. transcending the barriers and limits of distance and time. E-Sovereignty and others. Indonesia. Seri Kembangan. Selangor Accenture. http://www. Datuk Seri Abdullah Ahmad Badawi is fully aware of the mission ahead. Creating a Development Dynamic: Final Report of the Digital Opportunity Initiative. Market Foundation and UNDP. finally not being just a user and applicant. References Abdul Halim Shafie. to see the fulfilling state of the whole country evolving into one super highway and super corridor. but empowered to be a creator of technology as well. The current Prime Minister. October 2000.opt_init. 2000. Paper presented at ASEAN Communication & Multimedia Conference. 2001. WCA: Communication in the 21st Century: Exploring Roots. Brisbane. planned for 2011 to 2020. The impressive performance thus far shall be maintained and there is a renewed focus by the government to ensure that the rural areas benefit from the MSC. What Is Profitability In The New Internet Paradigm?. July 2007 21 Malaysians can look forward to the final phase.org.WCA 2007 Conference. Expanding Visions . Implications and Challengers. T. Women in the New ICT Era: Challenges and Opportunities. 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