MSC will encompass two categories of flagship application, known as the "Multimedia Development" Flagship Application and the "Multimedia Environment" Flagship Application. Under the "Multimedia Development" Flagship Application, there are four applications known as the Electronic Government, Multipurpose Card, Smart School and Telemedicine and each project is assigned to be led by specific agency. The Malaysian Administrative Modernization and Management Unit (MAMPU) will responsible to supervise and monitor the progress of the Electronic Government Flagship Application. The main purpose of having the Electronic Government is to reinvent and to improve government service delivery toward the people in Malaysia. It will focus on increasing the quality of interaction, accessibility and convenience between citizens and businesses; simultaneously, improve information flows and processes within government to ensure the success of policy development, coordination and enforcement. It will function as a multimedia-networked paperless administration linking Putrajaya to all government centers throughout the country to facilitate inter-governmental collaboration and citizen's access to governmental services. Under this application, there are five pilot projects and one of them is the Electronic Delivery of Driver and Vehicle Registration, Licensing and Summons Services, Utility Bill Payments and Ministry of Health Online Information System. With this project, the public can easily transact in a simple session via available multiple delivery channels such as hi-tech kiosks, personal computer, interactive TV or upgraded ATM to pay bills or renew licenses with multilingual access capabilities. The second project is known as the Electronic Procurement that aims to re-engineer, automate and transform the current system that enables the government to become a "Smart Buyer" because the system will deliver cost savings and faster turnaround times. The availability of the up-to-date statistics and data will facilitate and link other functions for better supplier management and effective negotiations leveraging scale economies. The third project is identified as the PM's Office-Generic Office Environment (GOE) that provides a fully integrated, distributed, scalable paperless office environment by deploying multimedia information technology for the PM's office. The civil servants will be provided a quick and easy method to access certain information with certain rights of accessibility. GOE provides common functional component to accommodate various types of government operations. Three modules will be formed, known as the Enterprise-wide Information, Communication and Collaboration Management Systems that provide a universal interface for users to manage, find, retrieve and gather information for the daily working operation through the coordination of various concerned agencies such as the PM's Office, Deputy PM's Office, Chief Secretary's Office, Cabinet Division and MAMPU. Human Resources Management Information System, another pilot project, will perform as HRM functions effectively and efficiently in an integrated environment to meet the objective of having a right sizing civil service, automating the HRM functions, and consolidating HRM planning among agencies. Furthermore, the system will enhance and facilitate managerial processes that include organizational development, formulation of scheme of services, salary and staffing policies, manpower panning and skill management, as well as productivity and quality initiatives. Finally, the Project Monitoring System is actually a mechanism for monitoring progress upon government programs and projects such as the Electronic Government project, the five-year Malaysia's development plan and other special projects. The service will also provide a platform for exchanging ideas and demonstrating best practice models in information management and communication services.

The second flagship application is known as the Multi-Purpose Card (MPC) and the Central Bank of Malaysia will closely supervise its progress. MPC is a plastic card embedded with a microprocessor chip to perform variety of functions including data processing, storage and file management without duplication of effort and investment. Besides having the security feature, it has a highly dedicated memory system compared to the current information system. There are two categories of applications identified for the MPC: Chip Applications and Access Key Applications. The first application will be tested initially for several functions such as the government-related card that comprises data of the national identification, driving license, immigration and medical information. Other features will be extended to perform as a payment-card that caters for electronic purse, debit, ATM, and credit card applications. The second application will be made possible to access several databases, run a program or conduct transaction through digital clearance from a personal identification number or thumb print. Information that seems to be useful for this medium is such as data retrieval for the Employment Provident Fund, voter registration, bill payment, ticketless air travel, student card, car park access and others. Overall, the MPC will improve and ease up one's daily activity that deals transaction either with the government or private companies.

Smart Schools is another dimension of the MSC's flagship application and it is under the responsibility of the Ministry of Education. Smart School is not for smartest student but it stresses on its smart ways to ensure that every student stretches his full potential according to his learning pace and style. The curriculum will therefore recognize that the students have different learning needs. Here, the students are active learners. They will nurture skills on creative problem solving with the capability of exploiting information resources. Data collection will be served through database networking. This school also will incorporate the innovative concept of the virtual express class. This will allow fast learners to complete all coursework earlier than the normal duration. Changing environment after reaching competency at certain level is a smart way to maintain innovative skills. As for the slow learners, they will undergo a thinner program and proceed at a slower pace to ensure that the teacher will give them more attention. To facilitate this, the school provides a centralized on-line delivery of assessment system. The system allows the student in a physical class to work at different levels in the same subject as well as to allow him to progress in a different subject at any given time. In such instance, the student will be guaranteed the attention they deserved. Therefore, ways of teaching have to be diversified too in a sense that teachers will now play the role of "a guide on the side" rather than a traditional way "the sage on the stage". In 1999, 90 schools will be selected for this project and by the year 2010, all schools will apply its programs. There are three pilot applications for the Smart Schools: Teaching-Learning Materials, Assessment System and Management System. The first is prepared to enhance the teaching-learning strategies and curriculum that are network based, teacher-based and courseware-based. The second will provide a concise assessment system through an on-line multiple delivery of test items that takes into account on student's readiness for assessment. The third will enable the school administration to manage its resources in supporting the teaching and learning functions within the Smart Schools.

The final "Multimedia Development" Flagship Application is known as Telemedicine, which is a new paradigm in healthcare provision and the Ministry of Health will lead this project. Telemedicine will provide systematic scenario to enhance patient's care where it empowers individual to manage his personal health with the available integrated information via telecommunication and multimedia technologies that will accelerate the services and products throughout the healthcare system. Four pilot applications are designed to support the concept, known as the Mass Customized/Personalized Health Information and Education, Continuing Medical Education, Teleconsultation and Lifetime Health Plan. The first project will provide information and education materials related to healthcare followed by the construction of a generic database. The second is concerned with the human resource development in order to upgrade skill and knowledge of the healthcare providers. Relevant training program with a systematic module (content provider) will be made available. The third will connect healthcare provider to share opinions with other experts besides improving mutual support. The fourth is designed to develop and implement a personalized, proactive and prospective lifetime health plan to achieve a continuous care for an individual. Generally speaking, all these pilot projects will foster the utilization of distance learning, remote consultation, systematic diagnosis and treatment, virtual patient record, and a national electronic medical network.

3.7 "Multimedia Environment" Flagship Application

Under the "Multimedia Environment" Flagship Applications, three applications are introduced as another catalyst for IT development in Malaysia. The applications are the Research and Development Cluster (R&D Cluster) headed by the Ministry of Science, Technology and Environment; the World-wide Manufacturing Webs (WMW) headed by Ministry of International Trade and Industry; and finally, the Borderless Marketing (BM) headed by the Multimedia Development Corporation itself.

The R&D Cluster is considered as the heart of MSC project because it will ensure that MSC can be an attractive location for companies to develop the future generation of the multimedia technologies to serve the world in more stylish aspectation. The first aim is to encourage corporate R&D to collaborate with multimedia R&D centers and universities in producing leading-edge products and technologies. Second is to promote multimedia technology transfer to Malaysia and encourage local high-tech start-ups; and, third is to increase local R&D activities in order to improve Malaysia's national human resource development competitiveness besides fostering the development of large-scale R&D pilot projects. Under this concept, it will promote a collaborative effort among varieties of leading multimedia R&D companies and local universities, public research institutes and other IT companies. This plan is strategized effectively where at present, the Multimedia University (involving a smart partnership between local companies and NTT, Japan), which is located in Cyberjaya, will be a source in producing the manpower requirements for R&D companies operating in MSC region. Aside from that, expertise also can be drawn from the existing local universities within and near the corridor such as the University of Putra Malaysia, the National University of Malaysia, MARA Institute of Technology, the University of Malaya, the University of Telekom Malaysia, the Technology University of Malaysia and the University of Science and Technology Malaysia. Furthermore, the Malaysian Institute of Microelectronic Systems (MIMOS); and, the Malaysian Technology Park (TPM) that operates in MSC can also contribute to support the R&D activities by offering a comprehensive range of incubation and facilities particularly to a start-up company. In TPM alone, 40 companies already set up their operation and 29 of them are involved in the multimedia or IT activities. By the year 2000, through this concept, the MSC is expected to have at least 15 corporate R&D centers of leading-edge multimedia companies and universities; at least 10 more local R&D centers; and, at least 10 R&D collaborative centers among universities, local institutions and foreign companies. In addition, there will be one Multimedia University operating in Cyberjaya and another 8 to 10 more large-scale pilot projects for the new emerging multimedia technologies to support the R&D Cluster.

The performance of the manufacturing industry in Malaysia always shows a positive sign for the economic development. In 1995 alone, 33.1 per cent of the GDP was contributed by the sector. Besides that, the sector produced 80 per cent of the merchandised exports in the same year. In fact, after the 1997's economic crisis, the export of the manufacturing goods contributed to a positive surplus of RM58.45 billion in the trade account where electrical and electronic goods continued to be the largest export earner in 1998. Even today, these high value added activities are believed to be another contributing factor to the economic development in Malaysia. Therefore, in line with the multimedia and IT development, the World-wide Manufacturing Web (WMW), another flagship application, is launched to provide a conducive environment for this sector. WMW is geared to encourage multi companies to build links between operation centers around a wide range basis of support services that include R&D, designing, engineering, manufacturing control, procurement, logistics and distribution support via multimedia infrastructure and technologies. Foreign researchers who work for the MSC-status companies will enjoy freedom from strict immigration procedures besides having the opportunity to exchange ideas among their counterparts with background in science and technology. Furthermore, the research findings will be rightfully protected under the existing Cyberlaws. Companies in the MSC also will be served with a guarantee of a high-bandwidth fiber-optic network; sophisticated CAD/CAM design diagrams and libraries components to share design resources. Since manufacturing operation will be expanded in the future, the cost incurred for the engineering support will also increase. Therefore, MSC will deliver a location for companies to centralize training programs for the engineering support professionals with the available superb infrastructure either by online or face-to-face communication. The MSC also will be a test-bed for experimenting new multimedia manufacturing processes where a real-time image and production data from the remote plant can be transmitted to a control central hub in MSC. Hence, the center can play an active role in monitoring the key parameters and generating an online command to the remote plants to improve manufacturing efficiency. With the usage of state of the art multimedia technologies, the handling documentation of procurement processes, logistics and distribution support will be cost efficient and effective where the transmission process can be done to all of the concerned parties at the fastest transaction time. The WMW provides the best climate for competitiveness in the manufacturing operations via multimedia and IT usage.

The Borderless Marketing (BM) flagship application is designed to create an environment of full usage of multimedia technology to deliver marketing messages, customer services and information products to the multicultural and multinational customers across time zone. There are four development areas under BM, categorized as Telemarketing, Online Information Services, Electronic Commerce, and Digital Broadcasting. With the robust growth of the economy and the high market penetration through product advertisement, telemarketing is therefore an effective tool for marketing strategy to expand wider market coverage at a very low cost. By locating the operation center in MSC, a telemarketing company will be able to penetrate the market especially in the Asia-Pacific region with high capacity infrastructure to promote its product and services. On-line Information Services will give the news provider an excellent position to collate, store, process and distribute updated information throughout the world. Besides that, the centralized placement of the technology partners and multimedia professionals in the MSC will help information providers to get the kind of support and assistance in developing and experimenting the new multimedia application for the customers; and, this will create another new climate for business operation. The Electronic Commerce (EC) is further enhanced in the MSC once the overall flagship applications, including the Electronic Government, are implemented. EC service providers can experience new business models that bring together customers and sellers in the stylish ways with large varieties of localized content for the region. Many technology developers in the MSC will assist in developing various EC applications such as security software and payment system for better commercialization. MSC also offer better scenario for broadcasting and entertainment industry. MSC facilities provide link to access the Malaysian East Asia Satellite (MEASAT 1 and 2) with a footprint that covers more than 2.5 billion people in the Asia-Pacific region. With the sophisticated technology such as the high bandwidth telecommunication infrastructure and availability to accommodate varieties of experts, companies that involve in the broadcasting and entertainment world can further enhance their operation in real virtual studios for the company's production. The MSC flagship applications are undoubtedly essential to differentiate its contents from other ASEAN IT projects. These differences are vitally important to present the specialties and opportunities offered by the MSC project to the world's leading IT competitive-edge companies to invest in this government project. However, by providing software and hardware infrastructures alone could not be the only variable factors of attraction to invite investors around the world. Therefore, several strategies related to promotions and incentives are drawn to give further assurance for a better investment in MSC.

From the previous contents, MSC has its specialized strength related to several elements such as the availability of the sophisticated infrastructure and the well-coordinated applications. To add on these elements, MSC also offers the best laws and regulations, policies and incentives to ensure that any company who ventures in this project will get the best business climate ever. The Malaysian government is very committed to the MSC project and the leaders know that the invitation of any foreign investor into the project will require an assurance that their operation will be in smooth operation without being hassled by the unnecessary policies and regulations. Hence, the government commits its assurance to attract investors by launching a bill known as the Bill of Guarantees (Appendix 5). The bill guarantees that those MSC-status companies will therefore enjoy certain financial and non-financial benefits.

To be specific on several matters related to the financial and non-financial incentives, the MSC-status companies that newly operate in the cybercities will receive a five-year tax exemption (100 per cent deduction of qualifying capital expenditure on its statutory income), which later can be renewable up to ten years. The renewal will be evaluated based on the performance of such companies in transferring technology or knowledge to the local resource. Two categories of companies will entitle to receive ITA benefit and they are confined to the companies that involves in the highly capital-intensive activities such as infrastructure projects or involves in the multimedia activities that are treated as cost centers and not as revenue-generating businesses. As for the existing companies in Malaysia, MSC tax incentives will be awarded depending upon their involvement in the value-added activity. MSC-status companies also will be awarded a duty-free importation of multimedia equipment, provided that such importation is engaged with the operation of its business. In other words, the equipment is used to facilitate the operational processes and has nothing to do with direct selling or trading or use as components in the manufactured products. As for the local SMIs, R&D grants will be made available for them also. Under the Seventh Malaysia Plan, a fund known as MSC Grant Scheme (MGS) is introduced with a fund of RM200 million to assist Malaysian MSC-status companies. Another special incentive for MSC-status companies is the right to source funds globally for their investment besides having the right to borrow funds from abroad. These companies also will be given exemptions from any exchange requirement by the Controller of Foreign Exchange and; therefore, the companies will be allowed to transact in any currency either in Malaysia or elsewhere. Furthermore, the companies will be able to open foreign currency accounts with no limits on the balances in Malaysia or abroad, including accounts for retention of export proceeds. Concerning the provision related to the matters of employment of foreign knowledge workers, MSC-status companies could easily apply for visas through MDC with multiple entries to employ a defined category of qualified foreign workers for a period of five years. Group of foreigners can be employed provided that they pose certain qualifications such as having a five-year or more professional experience in the multimedia or information technology business operation or in the field where multimedia is heavily used; or, graduates with a university degree (any discipline) or diploma (multimedia or IT) from a technical college with two or more years professional experience in the same field mentioned above. Another example, the employee must have at least a master degree in any discipline. Besides these incentives, all activities in the MSC project also will be further enhanced and protected with several newly introduced laws to ensure and secure that the development of future multimedia activities and IT industry will be blossomed without any negative impact on the overall competitiveness.

The Digital Signatures Act 1997 is formulated to facilitate activities related to the electronic commerce that covers areas such as digital contracts, digital signatures, cyber payments, and protection on intellectual properties. The act enables broad usage of electronic documentation in commercial transaction and in court. The Computer Crime Act 1997 empowers special rights of interception to a law enforcement agency to curb unlawful acts defined as cyber fraud, unauthorized access, and illegal usage of the computer. Hence, the law has resulted to the establishment of a Computer Crime Unit in the Malaysia's Royal Police Department to enforce the provision. The Copyright Act 1997 (Amendments) aims to guarantee full protection on multimedia works where it specifies issues such as legal status of digital transmission, and reasonable use of licensed multimedia works and components. The Ministry of Domestic Trade and Consumer Affairs enforces the act. The Telemedicine Act 1997 establishes a ground feature of definition related to qualified personnel who practices telemedicine and associated legal liabilities for misconduct. In addition to these laws, the government also is fostering the implementation of the Electronic Government Act, the Multimedia and Communication Act and the ASEAN Cyberlaw Institute and Cyber Court of Arbitration. The Electronic Government Act aims to specify certain conditionalities to the public service on how to use the multimedia advantages besides confining materials and information to be classified as public domain or government confidential documents. The Multimedia and Communication Act will serve to make special provisions for interactive online services in a converging environment besides streamlining the existing Telecommunication and Broadcasting Acts. The ASEAN Cyberlaw Institute will cater as a center of resource for the future cyberlaws within the global cyberlaw network in cooperating with other ASEAN countries to establish a comprehensive regional cyberlaw system. The institute will also act as an arbitration tribunal to resolve regional cyber-disputes besides becoming a catalyst for rapid development and application of multimedia throughout the country and the region.

The features of the MSC project including its programs, policies, incentives, and other software and hardware infrastructures give significant impact on attracting investment from local and foreign leading IT companies. At present, 230 local and foreign companies receive the MSC status and from this figure, 32 of them are categorized as the world-class web shapers. The official opening of Cyberjaya on July 8, 1999 witnessed by the IAP members marked the initial success of this project. Concerning Putrajaya, few government departments and agencies especially the Prime Minister Department moved to the new administrative center in June 1999. Though, the MSC project provides a full compact of viable programs and projects, there are few issues such as the capacity of the local human resources, mismanagement of IT usage, adaptation on multimedia culture in the working sectors, new culture of management style that should be studied further for proposing new measures to solidify the IT development in overall organization to meet the challenge of the information age.