Policy Statement
by
Dr. Halim Shafie
Secretary-General, Ministry of Energy, Communications and Multimedia
Malaysia

Tuesday, 26 March 2002

Thank you. Mr. Chairman, Excellencies, distinguished delegates, ladies and gentlemen;

On behalf of the Government of Malaysia I would like to express our sincere appreciations to the Government of Turkey and the ITU for the excellent arrangements in organizing this conference in the historic and beautiful city of Istanbul.

Since the last WTDC in 1998, the global telecommunications sector has seen rapid and long-lasting changes:

• Liberalization and privatization has become the mainstay of the sector adding on new players both at the national and global telecommunications arena;

• Digitalization is paving the way for the convergence of communications and broadcasting technologies and providing significant opportunities for new applications based on ICT;

• New policy and regulatory frameworks are being introduced worldwide to create an enabling environment for the rapid development of ICT; and

• The impending implementation of 3-G promises the introduction of applications, that will not only generate new economic activities, but also improve societal connectivity.

Major Trends in ICT Development in Malaysia

The development of the communications and IT sector in Malaysia has kept in tandem with these global trends. Malaysia began the liberalization and privatization of its telecommunications sector in the mid-1980’s’, and the enactment of the Communications and Multimedia Act in 1998, started a new era for the stimulation of the growth of the convergent communication and multimedia industry.

The creation of the Multimedia Super Corridor in 1997 signaled Malaysia’s desire to leverage on the power of ICT. The success of this project despite the economic slowdown over the last four years, bears testimony to the commitment and single-mindedness of the Malaysian authorities and ICT companies in making the Multimedia Super Corridor a reality.

Malaysia has started the journey to introduce 3-G. While the aim is for the rolling out of services by 2005, both government and industry are actively formulating strategies for spectrum allocation, developing sustainable business models as well as working out appropriate industry structural arrangements.

Challenges and Issues

Bridging the Digital Divide

Like many countries, which have placed premium on the development of ICT, Malaysia is equally concerned about many of the issues and challenges which have been so eloquently deliberated over the last few days. Perhaps the most important concern is the growing digital divide.

In moving towards a knowledge-based society, Malaysia has began its efforts to put into place a Universal Services Provision Policy. The multifaceted approach of the policy, involves the establishment of a Universal Services Provision Fund with both government and industry contributions, liberalization of licensing for local loop, and government approval for a tariff rebalancing to provide incentives for operators to invest in local loop infrastructure. Affordability is also another factor, which we hope to address through the provision of community access and applications development using common and open platforms.

Infosecurity and Positive Use of the Internet

The increasing use of ICT has also raised the issue of security and privacy. Incidence of hacking, "virus" attacks and misuse of information, are not only commonplace but also on the rise. Malaysia is in the midst of formulating a national ICT security policy and developing systems and standards for nationwide compliance. However, due to it’s cross-border implications, countries cannot work alone’. It is therefore imperative for forums such as the WTDC to formulate guidelines and frameworks, to assist member countries to deal with the security and privacy issues.

The Internet is open and allows for both positive and negative uses. In the last few years, there has been a significant concern of the proliferation of undesirable websites that can be harmful particularly to children. While we cherish the idea of an open flow of information through the Internet, there is also an urgent need for countries to mitigate its misuse.

Mr. Chairman and distinguished delegates,

Beyond Istanbul: ITU's Leadership

I am most happy to note that the WTDC here in Istanbul has been receptive to the critical issues that I have just listed . What is important now is how we move forward. Going beyond Istanbul will require ITU to play a strong leadership role. I look forward to the ITU and the BDT in particular, to strengthen its regional presence and forge greater inter-regional dialogue to promote exchange of views and develop universal solutions to key issues.

Thank you.