ICT, the New Media (Internet) and Development: - The Innovation ...

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The Innovation Journal: The Public Sector Innovation Journal Volume 15(1), 2009, article 5. governments and the people attach to ICT. Perhaps this is based on the belief that the ICT sector will be the engine that will spur development in other sectors of the world economy and Asia Pacific doesn’t want to be left out. The Malaysian government’s ICT spending is quite high in relation to its neighbours considering the population of Malaysia. In 2004 the Malaysian government spent RM521.3 million and this increased to RM590.8 in 2005 (Computimes, NST, March 24, 2005, p. 2). Indonesia and Thailand, for example spent 841.3 and 680.1 respectively in 2005. This shows the realization by the Malaysian government that ICT is an important engine for growth and development. The Malaysian government will make progressive payment to Telekom Malaysia (TM) for its RM2.4 billion portion of the RM11.31 billion High Speed Broadband (HSBB) project, according to the Deputy Prime Minister Datuk Seri Najib Abdul Razak (Bernama News 2008). The HSBB project involves the deployment of the access, domestic core and international networks to deliver an end-to-end broadband infrastructure. The private sector is not left out in this development. This is evident in its revenue. Association of the Computer and Multimedia Industry (Pikom) was confident of achieving revenue of RM80bil by 2012 as against RM40bil in 2007 (The Star Online, 2008). The technology initiatives by both the government and the private sectors are expected to contribute to growth in the local personal computer (PC) market. The government’s push for IT literacy in education, such as smart schools and e-Government in particular, is expected to contribute to a steady growth in the PC market (Computimes, NST April 28, 2005, p. 2). With the increase in PC ownership, there is likely to be an increase in ICT use and the aim of the government to use ICT for development will thus be facilitated by diffusion of personal computers. The recent directive by the Prime Minister of Malaysia to increase Internet content in the national language (Bahasa Melayu) is a proof that the government attaches importance to ICT (NST, March 30, 2005, p. 4). According to the Prime Minister, Internet content in the national language will help minimize the digital divide between rural and urban folk. Lack of English is a deterrent to the use of the Internet and ICT among the rural folks. The persistent issue of digital divide in Malaysia is expected to be addressed in a more comprehensive manner with the completion of the National Strategic Framework for Bridging the Digital Divide at the end of October 2005. The Framework aims to provide strategies through which the benefits of information and communications technology (ICT) can be experienced by all levels and members of the society (Computimes, NST, May 23, 2005, p. 2). This can further give momentum to the country’s aspiration to become a fully developed nation by 2020. There is a move to provide E-services at local authorities in Malaysia. The housing and local government ministry (MHLG) is targeting for all 144 local authorities in Malaysia to offer e-government services to its customers under the ninth Malaysia Plan (Computimes NST, April 11, 2005, 3). Some of the Municipal Councils including Subang Jaya, Petaling Jaya, and KL City Hall are already practicing e-submission of forms, e-payment of taxes and license renewal, facilitating e-community as well as making available a lot of information through their web sites. To complement the government efforts in providing ICT services, local ICT companies are helping the government improve efficiency through imaging technology (Computimes, NST 3
The Innovation Journal: The Public Sector Innovation Journal Volume 15(1), 2009, article 5. April 28, 2005, p. 4). The technology helps improve processes and workflow, and ultimately an organisation’s overall operations. Imaging technology can also improve service delivery from the government to customers either businesses or citizens. However, the efforts made by the government and the private sector in pushing ICT through, has been slowed by the lack of confidence among ICT users. Consumers are still hesitant about using the Internet as a shopping channel. Issues such as privacy and lack of confidence and trust in online retailers need to be addressed so business-to-consumer (B2C) e-commerce can fully realize its potential in Malaysia (Computimes, NST, May 16, 2005, p. 2). Despite the lack of confidence in ICT by consumers, information and communications technology revenue arising from business-to-business and business-to-consumer segments in Malaysia are set to increase by almost nine-fold from US$1.5 billion in 2002 to US$9.4 billion this year, with B2B making the biggest strides (Computimes, NST April 28, 2005, p. 3) However, adoption of ICT among small and medium-sized industry (SMI) or businesses is still low in Malaysia and raises concern about their ability to stay competitive in a global market. According to SMI Association of Malaysia, only 30% of the community possess a web presence and use ICT persuasively in their business (Computimes, NST, April 11, 2005, p. 5). The association is embarking on a number of activities to encourage its members to adopt ICT, which include the setting up of a call centre. The rural folks in the country are not left out in the move to increase the use of ICT (or Internet). More facilities will be made available to rural folks under the Government-initiated Rural Internet Centre (RIC) programme (Computimes, NST, April 14, 2005, p. 4). Under the egovernment facility, rural folks will be encouraged to use the Internet for online transactions such as bill payment. This will go a long way to provide the push for small and medium-sized business (SMBs) in rural communities to use e-procurement application when conducting business with the government. Development of the rural communities will thus be expedited by connecting them to the centres of production and business through ICT. As is always the case, any new technology or innovation is subject to abuse, which may affect its continuous adoption (sustainability of use), thereby making its impact less felt or its potential or benefit less realized. It is against this background that laws and regulations are crucial in order to monitor the use of innovation and prevent it from abuse. Laws and regulations will instill confidence in the people who use the innovation. The Personal Data Protection (PDP) Act is to be launched soon to enable a more secured environment for electronic transactions. The legislation aims to regulate the handling and use of personal data by any person or organization, and to establish common rules and guidelines on the handling and treatment of such information. According to KPMG the legislation is necessary because it will be able to assist in balancing individual privacy rights against public and private rights (Computimes, NST, April 14, 2005, p. 4). Security is also of great concern to ICT experts. According to the Cyberlaw Unit of Multimedia Development Corporation, e-documents would fall under the purview of the Contracts Act 1950. The Electronic Commerce Bill (ECB), which is in the process of being drafted, is expected to facilitate electronic dealings by providing legal certainty and expressing legal recognition to e-documents (Computimes, NST, April 28, 2005, p. 5). The ECB is expected to ensure that Malaysia’s position is consistent with countries that have adopted the principle provisions of the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce. 4
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