Tarikh/Date 	: 	01/08/96 

     1.    I  would like to welcome you all to Multimedia
    Asia  -- both those who are physically present  here
    in  Kuala  Lumpur  but also those who  are  with  us
    through  the magic of the Internet.  I am  delighted
    to  have this opportunity to use this new medium for
    a  live  broadcast which will later be available  on
    the MSC homepage for reference.
    2.    Our goal for this conference is to launch  the
    Multimedia Super Corridor (MSC) and explain  to  the
    world all that we are doing to make it a reality.  I
    hope   you   will  all  leave  here  with   a   full
    understanding of what we truly believe is  a  world-
    first  -- the careful creation of a region  with  an
    environment especially crafted to meet the needs  of
    leading  edge companies seeking to reap the  rewards
    of the Information Age in Asia.
    3.    No  other country is even considering anything
    similar.   I see the MSC as a global facilitator  of
    the   Information   Age,  a  carefully   constructed
    mechanism  to enable mutual enrichment of  companies
    and  countries  using leading technologies  and  the
    borderless  world.   Other plans may  sound  similar
    because  they all use "IT, Cyber, or Multimedia"  to
    market  one or another development.  But we are  not
    adding  new  facilities  to existing  ones;  we  are
    building and installing the latest on a huge 15 km x
    50 km greenfield site.  We are not just upgrading.
    4.    We are talking here about something much  more
    far-reaching.  We are talking about changing the way
    we  live and work within the MSC.  This special area
    will  be  a global `test-bed' for the new  roles  of
    Government,   new   cyber   laws   and   guarantees,
    collaborations  between  Government  and  companies,
    companies  and companies, new broadcasting  and  new
    types  of  entertainment,  education,  delivery   of
    healthcare,  and  applications of new  technologies.
    We are taking a single-minded approach to developing
    the  country  using  the new tools  offered  by  the
    Information Age.  The MSC will be the R&D centre for
    the  information based industries,  to  develop  new
    codes of ethics in a shrunken world when everyone is
    a  neighbour to everyone else, where we have to live
    with  each  other  without unnecessary  tension  and
    5.    Malaysia  had industrialised so  rapidly  that
    where  once commodities made up 100 percent  of  our
    exports,  today  manufactured  goods  constitute  78
    percent of our exports valued at US$75 billion.  Yet
    we  are  not  a  developed  country.   To  become  a
    developed  country according to our Vision  2020  we
    cannot   continue  with  conventional  manufacturing
    industries.   We  have to move into the  Information
    Industry.   We need to tap the talents of the  whole
    world in order to do this. As in the past those  who
    respond to our invitation to invest in Malaysia will
    reap a rich return.
    6.   As usual in Malaysia we move very fast.  In the
    information  age  and  instant communication,  there
    would be people working at any time in 24 hours  who
    will  want to be serviced.  Malaysia takes this fact
    seriously.  Not only do we work 24 hours  a  day  to
    construct and manufacture, but we expect to  provide
    information service 24 hours a day through our  MSC.
    Consequently  we have already readied a  blue  print
    for  the  massive 750 sq. km. site.  We have  almost
    completed the Kuala Lumpur International Airport and
    the  Kuala  Lumpur City Centre at both ends  of  the
    corridor,  started work on the new wired  high  tech
    intelligent administrative capital to be  served  by
    dedicated road and rail linkages.  New  cyber   laws
    are   being  formulated and a Bill of  Guarantee  is
    being worked out to ensure hassle-free operation  by
    foreign  and local companies operating  out  of  the
    7.    The  MSC  is both a physical area  and  a  new
    paradigm for creating value in the Information  Age.
    Physically, the MSC will be a 15 x 50 KM square area
    spreading south of Kuala Lumpur. It begins with  the
    Kuala  Lumpur City Centre in the North and  runs  to
    Kuala Lumpur International Airport at Sepang in  the
    South.  It is bounded by the North-South Highway  in
    the  East  and the new Coastal Link Highway  in  the
    West.   The MSC includes two other mega-projects  in
    its  centre  --  Putra Jaya, the new  administrative
    capital,  and  an  IT City, a development  of  smart
    buildings with the latest information infrastructure
    that  is being tailored to meet both the living  and
    business  needs  of the knowledge worker.   Most  of
    these projects are underway and each is exciting  in
    its own right:
    KLCC  is  the  Northern gateway to the  MSC  and  is
    graced  by  the tallest towers in the  world.   They
    already dominate our skyline at 450 metres each  and
    constitute a city within a city.
    KLIA will be ready before the Commonwealth Games  in
    1998  and  will  have initially 80  gates  with  two
    parallel  runways.   It will be an  airport  in  the
    forest  to ensure it is an appropriate international
    gateway to the environmentally beautiful MSC.   KLIA
    will also become an integrated logistic hub with the
    latest  in IT to facilitate movements of people  and
    Putra  Jaya  is Malaysia's new electronic government
    administrative centre and will also be developed  as
    an  `intelligent'  garden city. It  will  provide  a
    balanced urban environment for 250,000 people served
    by    state   of   the   art   communications    and
    transportation systems.
    IT  City  will  be  located in  West  Putrajaya  and
    provide top quality business facilities, residential
    housing,  leisure  and  recreation  facilities,  and
    state of the art supporting infrastructure.  It will
    support   a   working  population  of  approximately
    150,000 and a living population of over 100,000.
    8.    In  between these megaprojects, there will  be
    ample  land  to  be  developed  especially  for  the
    multimedia   industry  and  other  companies   using
    leading  edge information infrastructure to  provide
    products and services to their clients.  The  entire
    area  will  be  served  by a 2.5-10GB,  100  percent
    digital  fiberoptic network that will directly  link
    the  MSC with ASEAN, Japan, U.S. and Europe.   There
    will  also  be high speed road and rail links.   Its
    location between the airport and KL puts the MSC  in
    the  most  convenient  location  for  industrial  IT
    innovators and knowledge workers.
    9.    That describes the physical aspect of the MSC,
    but  we  are  talking about creating something  much
    greater.  The best way to  fully describe the MSC is
    to provide a vision of what it will hopefully become
    by the year 2020.
    10.   As  we  approach  the 21st century,  fantastic
    changes  are  taking  place  which  make  what   was
    impossible in the old economy of the Industrial  Age
    suddenly  possible in the Information Age.   Borders
    are    disappearing   due   to   ease   of    global
    communications,  capital  flows,  the  movements  of
    goods   and   people  and  location  of  operational
    headquarters. Where countries once competed with one
    nation's trade surplus resulting in another's  trade
    deficit,  in  the future both countries can  benefit
    because  networks  of companies  collaborate  across
    borders  to deliver value to customers in  the  most
    economically sensible way.
    11.   In  short,  the Information  Age  has  created
    conditions for the first time in history  that  will
    enable  countries and companies to  mutually  enrich
    one  another -- it is no longer a zero sum game with
    winners  and  losers.  I believe neighbours  prosper
    more  when they help each other than when  they  are
    selfish  or envious. Sometimes neighbours  need  new
    ideas  and  tools  to help them  move  beyond  petty
    conflicts of the past.  These may be frightening  at
    first    --   because   they   require   fundamental
    attitudinal  changes  -- but once  accepted,  people
    will  forget  their petty jealousies simply  because
    they  are racially or nationally different.   If  we
    can  imagine  how our grandparents  felt  about  the
    freedom  of  movement  when automobiles  were  first
    introduced, we can appreciate the sense  of  freedom
    which the Internet for example make possible in  the
    Information  Age.   Many of us are of  course  still
    afraid to go for a test drive.
    12.   I  hope the MSC will change this in  Malaysia.
    The  MSC  is the first place in the world  to  bring
    together  all of the elements needed to  create  the
    kind   of   environment  to  engender  this   mutual
    enrichment.    I  see  the  MSC   in   2020   as   a
    multicultural    `web'   of    mutually    dependent
    international  and Malaysian companies collaborating
    to  deliver  new products and services to  customers
    across  an economically vibrant Asia and the  world.
    I  fully  expect that this `web' will extend  beyond
    Malaysia's   borders  and  out   across   Malaysia's
    multicultural  links  to our  neighbours.  Component
    manufacturing can then be done in China, on machines
    programmed  from  Japan, with  software  written  in
    India,  and  financing coming from the Labuan  IOFC.
    The  product may be assembled in Penang and  shipped
    to  global customers direct from our new airport  at
    13.   Malaysian companies are already  working  with
    world-class  international companies and  technology
    transfer  is taking place because each company  will
    really  be  adding value to the product.   Moreover,
    companies  and neighbouring countries are benefiting
    as well because parts of the product are produced in
    other locations.  The consumer benefits most of  all
    because  they get a top quality product at the  best
    possible  price.  In short, all parties  touched  by
    this  `web'  will  benefit and are enriched  through
    their contribution to it.
    14.  By 2020, I see the MSC having hundreds of large
    and small companies working collaboratively with one
    another  and  with partners across  Asia.   Some  of
    these  companies will certainly be today's  leaders.
    Many  others will be the smaller companies that  are
    members   of   each   of  these   companies   `web'.
    Hopefully, a few of tomorrow's leaders will be  from
    Malaysia with new products and services in the  MSC.
    I  hope  the  MSC will be far more than  a  business
    development by 2020. I see a global community living
    at  the  leading  edge  of the Information  Society.
    Their  smart  homes will be connected to  a  network
    through which they can shop, receive information, be
    entertained, interact with one another, and  educate
    themselves.  Of course when they grow tired  of  all
    these new fangled things they can enjoy the pristine
    environment which we have preserved in Malaysia.
    15.   By  2000,  I  expect  to  see  seven  specific
    applications being developed in the MSC by `webs' of
    international and Malaysian companies:
    First,  Malaysia  will  be a pioneer  in  electronic
    government.  This  will  be  a  multimedia-networked
    paperless  administration  linking  Putra  Jaya   to
    government  centres around the country to facilitate
    inter-governmental collaboration and citizen  access
    to government services.
    Second,  Malaysia  will  be a  regional  centre  for
    telemedicine.   With  our  Chinese,  Ayurvedic,  and
    Western  medical knowledge, we are  a  natural  hub.
    Rural  clinics  can be connected to medical  experts
    from  Malaysia  and  to the great clinics  worldwide
    using  new  tele-instruments for  remote  diagnosis.
    The  doctor no longer has to be in the same room  as
    the  patient.  Key information can be gathered using
    new  instruments  such as `electronic  stethoscopes'
    operated  by  nurses or technicians.   This  can  be
    viewed  and  compared  with other  patients  by  the
    world's  best doctors and of course data on millions
    of patients already in the world's computers.
    Third,  I  hope  the MSC will become a collaborative
    cluster of universities and corporate R & D centres,
    using   distance  learning  to  produce  world-class
    graduates and next-generation innovations.
    Fourth,   I   hope  the  MSC  will   be   a   remote
    manufacturing  coordination and engineering  support
    hub  that electronically enables companies  in  high
    cost countries to access plants across Malaysia  and
    Asia  as  a  virtual  extension  of  their  domestic
    Fifth,  the MSC should become a multimedia  customer
    service    hub    leveraging    Malaysia's    unique
    multicultural    links   to    provide    electronic
    publishing, content localisation,  telemarketing and
    remote  customer  care to a market  of  2.5  billion
    people.  For example, a Japanese company's catalogue
    can be translated into Chinese or Tamil or Hindi  by
    a  company  that takes orders through a system  that
    automatically   localises   the   sizes   and    the
    Sixth,  the MSC will be an environmentally beautiful
    and  highly  convenient financial haven with  direct
    multimedia   links   to  the  Labuan   International
    Offshore  Financial Centre and the world's financial
    centres.   This  will  enable  `reverse  investment'
    outward   from   Malaysia  and  will   benefit   our
    Finally,  Malaysia  will  have  the  world's   first
    national  multipurpose smart card.   One  card  will
    have  the  individual's ID and electronic  signature
    and   access   to   government,   banking,   credit,
    telephone,  transport and club services. Of  course,
    security will be critical but the technology enables
    all  of these services to be on one secure platform.
    Imagine the convenience as we are freed from  having
    to  carry a huge pack of plastic cards and selecting
    one every time we need to use a card.
    16.  In short, I see the MSC as the leading edge  of
    a  new national strategy for Malaysia to achieve the
    goals  described in our country's  Vision  2020.   I
    fully  expect  to  see  a few world-class  Malaysian
    companies  emerge from the MSC.  It will  accelerate
    the  development  of  a strong  services  sector  to
    balance  our  already  strong  manufacturing  sector
    while  helping  to  improve  the  productivity   and
    quality of living in the nation.  Equally important,
    the  MSC  will provide a platform to tie us together
    and  celebrate our culture while helping to  educate
    us  in new and different ways.  It will allow us  to
    bring  together  our  multicultural  knowledge   and
    relationships  to  mutually  enrich  our   partners,
    neighbours and ourselves.
    17.   What I have just described has probably  never
    been attempted anywhere else in the world.  You  may
    be thinking, "Why Malaysia?"
    18.   First,  Malaysia's physical  location  at  the
    center of ASEAN and its multicultural links with the
    biggest  Asian markets is unique.  We have  language
    skills  and  cultural knowledge  that  can  be  very
    helpful.  Most people speak English as well  as  one
    or  more  languages  such as  different  Chinese  or
    Indian dialects, or Malay.  With the new airport and
    communications infrastructure being built,  Malaysia
    will be a highly efficient and effective hub for the
    19.  Second, Malaysia still has a cost advantage  as
    compared  to other NIEs in the region.   Third,  the
    newness  of  multimedia  to  Malaysia  provides   an
    important advantage -- we have no inherited  systems
    or  entrenched interests determined to defend  their
    current  positions.  We have the political will  and
    the  power  to rapidly change any existing  laws  or
    policies  that  impede the ability of  companies  to
    capitalise   on   the  benefits  afforded   by   the
    Information  Age.   We will not be  bogged  down  by
    excessive politicking in Malaysia.
    20.   Finally, we are highly committed to making the
    MSC  a success and we have a track record of meeting
    our  commitments.   We  are a  pragmatic  Government
    which has consistently proven our critics wrong even
    when   we   adopt   unconventional   policies    and
    strategies.  Malaysia's history  since  independence
    has  shown  consistency and predictability  so  that
    long  term investment will not be threatened by  the
    twists  and  turns of volatile local politics.   The
    Malaysian   government  sees   multimedia   as   the
    strategic  sector to achieve Vision 2020,  i.e.  the
    attainment  of  developed  country  status   through
    productivity-led  growth, and  the  MSC  is  at  the
    leading  edge  of this key sector. We  are  actively
    talking to companies to understand their needs,  and
    creating  advisory panels to ensure we in government
    fully understand all that is required to provide the
    perfect   regulatory,  administrative,  and   social
    environment within the MSC.
    21.   We  have been very busy over the last  several
    months to understand your needs and respond to  them
    by  making  the  required changes in  the  MSC.   We
    conducted  a  comprehensive study last  year  and  a
    follow-up study this year and identified several key
    factors   for   success.   These   are   access   to
    sufficiently skilled human resources and flexibility
    in   hiring;  access  to  world-class  telecoms  and
    information  infrastructure;  liberalised  financial
    environment      with     no     local      content/
    ownership/partnership requirements; quality of  life
    as good as home countries with every convenience and
    ease of doing business.
    22.   To  address these, we are undertaking  several
    major  initiatives.   First,  the  Prime  Minister's
    Office  will be setting an example for the  rest  of
    the  country.  It will be paperless by 1998 when the
    office moves to Putra Jaya.  Ministries will need to
    interact   with  the  Prime  Minister's   Department
    electronically which I hope will encourage  them  to
    make themselves paperless.
    23.   Second,  all schools within the  MSC  will  be
    connected  to the Internet by 1998 and the  rest  of
    the country will follow.  The Education Ministry  is
    leading several initiatives to increase the role  of
    multimedia  in  education.  We plan to  dramatically
    increase  the  number of engineers graduating  every
    year.   Teachers will need to change their  role  in
    the  electronic  classroom  from  being  information
    providers  to  counsellors  in  order  to  help  the
    students know how to select information sources,  to
    make judgements about what they are downloading.  In
    short, high tech requires high touch because the key
    to success in the Information Age will be making the
    right   judgements  between  an  awesome  array   of
    choices.   We are examining our education system  to
    create a curriculum where people learn how to  learn
    so  they can continue their education throughout the
    rest  of their lives. The measure of our success  in
    2020  will  be the number and quality of our  people
    who  can add value to information.  To that end,  we
    will   be  creating  a  Multimedia  University   and
    technology schools within the MSC.
    24.   Third,  while  these long-term  solutions  are
    important, we also need to close the gap immediately
    if  the MSC is to succeed.  This will require us  to
    undertake an experiment and allow MSC companies  the
    unrestricted  import of knowledge  workers  for  the
    next  ten  years.   In addition, there  will  be  no
    employment restrictions on MSC companies  and  there
    will  be no restrictions on foreign ownership within
    the MSC.
    25.   These commitments, along with several  others,
    will be part of a Multimedia Bill of Guarantees  for
    MSC companies;
        1.    Multimedia/IT is the priority  sector  for
         achieving Vision 2020 and the MSC will be  home
         to    Malaysia's   leading   edge    multimedia
        2.    The MSC will have the best environment  in
         Asia  by  creating MSC specific laws,  policies
         and practices.
        3.    The  MSC will have a world-class  physical
         and information infrastructure.
        4.     MSC  companies  will  have  access  to  a
         workforce of sufficient size and skills.
        5.    The  MSC will become a regional center  of
         excellence  in  multimedia education,  research
         and leading edge applications.
        6.    There  will be no employment or  ownership
         restrictions for MSC companies.
        7.    The MSC will become a leader in multimedia
         regulations;  `cyber-laws'  for  using  IT   to
         deliver  value  in new ways (e.g. telemedicine,
         distance  learning, electronic signature),  and
         intellectual   property  protection   will   be
        8.    The  MSC  will  offer the  best,  tailored
         incentives   and   financial/venture    capital
        9.    Key  MSC infrastructure contracts will  be
         tendered to companies willing to use the MSC as
         their regional hub.
        10.    The  Multimedia  Development  Corporation
         will  be empowered to act as a `one-stop  shop'
         to ensure the MSC meets company needs.
    26.  The  incentives  that  will  be  made available
         to  MSC companies are still being detailed  but
         will   include  the  following  for   companies
         committing to the MSC within the next year.
        -     Corporate  tax  exemption for  5-10  years
         depending  on  proposed  applications   to   be
         performed within the MSC
        -     Infrastructure contracts will  be  awarded
         on a preferential basis to MSC companies
        -     Opportunity  to sit on advisory  panel  to
         provide  direct input to the Prime Minister  or
         the  Deputy  Prime Minister on the  environment
         provided within the MSC.
    27.   We  have invited multimedia experts  and  CEOs
    from  foreign  countries to sit on the Distinguished
    International  Advisory Panel.  The  Panel  will  be
    chaired  by  me and provide advice on  a  continuing
    basis   about   the  quality  of  the  overall   MSC
    environment.  I look to the members of this panel as
    partners in ensuring the success of the MSC.
    28.   In  addition,  the  cabinet  has  set  up  the
    Multimedia Development Corporation with the  mission
    to  ensure  MSC  companies  have  the  world's  best
    environment  for harnessing multimedia services.  It
    has  a  mandate to be the `one-stop shop' to  manage
    and  market the Multimedia Super-Corridor.  The  MDC
    will have governmental powers but will be run like a
    private corporation that serves MSC companies as its
    clients.    The   Government   has   approved    the
    appointment  of Tan Sri Dr. Othman Yeop Abdullah  as
    the Chairman of MDC.
    29.  The Multimedia Development Corporation will  be
    taking   applications  for  companies  seeking   MSC
    designation.   This  entitles  the  company  to  the
    incentives   and  Multimedia  Bill   of   Guarantees
    described  above.  You can electronically  file  the
    application through the MSC homepage.
    30.   We  hope you will become our partners in  this
    exciting  endeavour.  The Multimedia  Super-Corridor
    cannot   succeed  alone.   Its  power   comes   from
    harnessing  the energy, capabilities and  vision  of
    many  leading  edge companies who  are  prepared  to
    collaborate in a new environment.  By bringing these
    pioneering  companies together  with  Malaysian  and
    Asian  companies, we believe we  can  spin   a   web
    that     will     mutually    enrich    all    those
    participating or coming into contact  with  it.   At
    the  same  time, it will serve as a better interlink
    for  the  global village and give the world a  place
    where the full potential of the Information Age  can
    be explored without any artificial limits.