The Multimedia Development Corporation (MDeC) was incorporated in 1996 to oversee the development of the MSC Malaysia and to advise the Malaysian Government on legislation and policies, as well as to set breakthrough standards for multimedia operations.
Established in the same year, MSC Malaysia’s primary focus was to create an ideal and conducive platform to nurture Malaysian Small and Medium Enterprises (SMEs) in the ICT sector, to become world-class businesses whilst attracting participation from global ICT companies to invest in and develop cutting edge digital and creative solutions in Malaysia. Seventeen years on, MSC Malaysia has driven the development of the Malaysian ICT industry, enhanced technology adoption, and has made significant strides in increasing the economic impact and footprint of ICT for the nation.
There are powerful economic and fiscal incentives for companies, both local and international, to apply for MSC status. Just as importantly, Malaysia has passed a number of effective new laws, which protect intellectual property and ensure freedom of thought and expression.
This remarkable initiative has positioned Malaysia as a preferred ICT investment hub. Today, there are over 3,600 MSC Malaysia Status companies, employing over 147,000 people, these include: 436 companies in the Creative Multimedia Cluster, more than 110 Institutions of Higher Learning and Incubators, 2,665 Information Technology companies and over 400 Shared Services & Outsourcing providers.
MSC Malaysia showed a solid performance and consistent growth in 2014, having generated RM38.52 billion in revenue, demonstrating a growth of 11% from 2013. Alongside strong revenue growth, MSC Malaysia saw RM20.09 billion in new investments, of which 55% came from direct domestic investments and 45% via foreign direct investments. Export sales accounted for a total of RM13.73 billion, representing an 11% increase from 2013 and a 7% rise in employment was also reported with 9,497 nett jobs created in 2014. Overall MSC Malaysia contribution to GDP reached RM13.77 billion, a 14% increase from 2013 and this means MSC Malaysia’s revenue now accounts for a substantial 1.3% of our GDP. Since its inception in 1996, MSC Malaysia has contributed over RM275.04 billion in revenue to the Malaysian economy, RM206.14 billion worth of investments.
In October 2010, MDeC was given an additional task by the government, which was to develop a blueprint for a Digital Economy that draws from the huge opportunities created by the Digital world.
This resulted in a programme called Digital Malaysia that was officially unveiled to the public in May 2012.
Digital Malaysia is a natural progression to harness the building blocks already laid by MSC Malaysia. Founded on three strategic thrusts, of moving Malaysia from supply to demand, consumption to production and low knowledge-add to high knowledge-add, it ultimately aims to create an ecosystem that promotes the pervasive use of ICT in all aspects of the economy. And the first eight projects are already under implementation.
This will in turn connect communities globally and enable them to interact in real time, increase the country’s Gross National Income, enhance business productivity and improve the standards of living.. Ultimately, Digital Malaysia aims to turn Malaysia into a developed digital economy by 2020, that connects and empowers the government, businesses and citizens. Today, both MSC Malaysia and Digital Malaysia run concurrently to spur Malaysia’s ICT industry development and digital economic growth, under the purview of MDeC.