Analysis of Technology Factors

Malaysia is preparing to be part of the Information Age in the new millennium by transforming itself towards a knowledge-based economy. Recognizing that information technology (IT) and multimedia will be the future enabling tool to increase the efficiency, productivity and competitiveness of the economy, various initiatives were taken to promote the use and development of IT during the review period. The National Information Technology Agenda (NITA) was formulated in 1996 to provide the framework for a coordinated and integrated approach in developing the three strategic elements comprising human resource, info structure and IT-based applications. To provide the catalyst for the expansion of IT and multimedia industries, the Multimedia Super Corridor (MSC) was launched.

During the remaining Plan period, efforts will be intensified to strengthen the foundation for building a knowledge-based society and economy in order to integrate into the global electronic economy. In this regard, the IT infrastructure will be expanded and upgraded and a number of national IT-related programmes and projects implemented to accelerate the wider use of IT in the various sectors of the economy. This will enable Malaysia to sustain its competitiveness as well as attract new investments and create economic opportunities in IT related industries and services.

Technology development can be measured in terms of the personnel involvement in Research and Development (R&D) or the development allocation and expenditure for R&D. During 1985-1995 there were 500 R&D scientists and engineers per million populations in Malaysia as presented in Figure 2. This has placed the country in the third bottom position compared to 11 other countries most of which are developed.