Cutting-edge industries hit the global spot

The Malaysian government is at the helm of numerous private-public sector initiatives in the high-tech sector

Malaysia’s high-tech sector is booming. Predictions for 2004 are a growth rate of 15% and $1.3 billion in sales, and the 2005 budget has identified ICT as a key engine of growth and a major component of the economy. This is good news for Prime Minister Badawi, who plans on continuing with former Prime Minister Mahathir’s goal of converting Malaysia into a global high-tech haven. The creation of the Multimedia Super Corridor in 1999, Malaysia’s equivalent to Silicon Valley, was an important first step in this process and is now at the forefront of Malaysia’s high-tech development. In 2003 the government launched a similar project to promote the research and development of biotechnology with the construction of BioValley. Prime Minister Badawi’s administration has said that it will invest $26million to build three biotech research facilities on site, which will focus on the development of agro-biotechnology, genomic and molecular biology, and pharmaceuticals and nutraceuticals. Construction of the centers is expected to be completed in 2006.

The government agency responsible for promoting public-private sector initiatives in the high-tech sector is the Malaysian Industry Group for High Technology (MIGHT). Pivotal in the creation of BioValley and other high-tech industrial parks in the country, as well as new initiatives to develop Malaysia’s aerospace industry, MIGHT has worked to develop human resources and to stimulate R&D. Joint Chairman Ahmad Zaharudin Idrus states, “MIGHT focuses on certain areas, identifies opportunities and helps the government to evaluate them. If they are approved, we try to generate investment and to encourage companies to become involved. We act as the catalyst for new industries.”

RADZI MANSOR Chairman of Malaysia Telekom	AHMAD SHUKRI TAJUDDIN CEO of Kulim High-Tech Park

Kulim Hi-Tech Park (KHTP), located in the northwest of the country, near Penang, is one of the new high-tech breeding grounds in Malaysia. Since its first company, Intel, opened its doors in 1996, KHTP has grown rapidly to represent the second-largest technology park in Asia today, concentrating on electronics, semi-conductors, optic-electronics and biotechnology. KHTP CEO Ahmad Shukri Tajuddin says that the park’s rapid growth has been due in large part to the quality of services the park provides for its companies. He encourages U.S. companies to come and investigate the park’s state-of-the-art facilities. He comments, “We have a facility already on site for small and medium scale companies to undertake R&D activities and small product development. The IT and the Techno Center are available and are equipped with common labs, robotic labs, mega-electronic labs, and biological labs.”

An increased emphasis on higher education is also a key component of the government’s strategy, and budgetary allowances have been made to support training. In line with these policies, Telekom Malaysia (TM) has opened its own university, which is fully concentrated on the development of advanced telecommunications and education. Chairman of TM Radzi Mansor states, “Our 100%-owned subsidiary, the Multimedia University, is now open to all and currently has 17,000 students, 1,000 of which are from overseas. The courses conducted at the university are all telecommunications and multimedia-related subjects.”

The second-largest technology park in Asia, Kulim Hi-Tech Park provides fertile grounds for innovation