MSC Malaysia Cybercities / Cybercentres

MULTIMEDIA DEVELOPMENT CORPORATION SDN BHD (MDeC)

15 April 2015

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Contents

 MSC Malaysia
 MDeC in brief
 Overview of MSC Malaysia
 Incentives to MSC Malaysia Status Companies
 MSC Malaysia Cybercity / Cybercentre
 Concept and Strategy
 MSC Malaysia Status: Categories and Definitions
 Qualifying Criteria
 Performance Standards
 Application Processes
 Roles of Cybercities and Cybercentres
 Benefits to Stakeholders
 Post Approval Obligations

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MSC Malaysia and MDeC

The Multimedia Development Corporation (MDeC) is

the one-stop agency mandated by the Government of
Malaysia for the coordination, promotion and
development of information and communication
technology industry and selected services in MSC
Malaysia and Malaysia.

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Overview of MSC Malaysia

WHAT HOW WHERE

Federal Government’s  10 MSC Malaysia Bill  Clustering of

initiative to: of Guarantees technology companies

 Attract foreign and  Create the conducive  MSC Malaysia

local investment MSC enabling Cybercities /
business environment Cybercentres
 Nurture and
promote growth of  Indirect and spillover  Initially 15x50 km2
local ICT industry effect to surrounding corridor, Cyberjaya as
communities National ICT Hub
 Promote greater
usage of ICT by  MSC Malaysia  Eventually, whole
the community Multimedia nation
Applications

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Incentives to MSC Malaysia Status Companies
MSC Malaysia Bill of Guarantees (BoGs)
1. To provide a world-class physical
and information infrastructure
2. To allow unrestricted employment
of knowledge workers
3. To ensure freedom of ownership
4. To give the freedom to source
capital globally for MSC
infrastructure and the rights to
borrow funds globally
5. To provide competitive financial
incentives including no income tax
or an investment tax allowance for
up to ten years and no duties on the
import of multimedia equipment
6. To become a regional leader in
intellectual property protection
and cyberlaws
7. To ensure no censorship of
Internet
8. To provide globally competitive
telecommunications tariffs
9. To tender key MSC Malaysia
infrastructure contracts to leading
companies willing to use the
MSC Malaysia as their regional
hub
10. To provide a high powered
implementation agency to act as
an effective one-stop super-shop
39 MSC Malaysia Cybercities and Cybercentres Nationwide As at 31 Dec 2014
1 2 3 4
KLANG VALLEY
PENANG PAHANG 1. CYBERJAYA
2. TECHNOLOGY PARK MALAYSIA
1. PCC1 PUTRA SQUARE 3. UPM-MTDC
2. SPANSION 4. KLCC
3. ONE PRECINCT 5. KL TOWER
5 6 7
6. KL SENTRAL 8
7. i-CITY
8. TM CYBERCENTRE COMPLEX
9. MID VALLEY CITY
10. BANDAR UTAMA
11. BANGSAR SOUTH CITY
12. GTOWER 9 10 11 12
13. SYMPHONY HOUSE
14. QUILL 9
15. THE INTERMARK
16. WISMA HAMZAH KWONG HING
17. JAYA 33
18. PUCHONG FINANCIAL AND
KEDAH CORPORATE CENTRE 13 14 15 16
19. MENARA WORLDWIDE
KULIM HI-TECH 20. MENARA BINJAI
PARK 21. PERSOFT TOWER
22. MENARA OBYU
23. MENARA MAYBANK
24. UOA DAMANSARA 17 18 19 20
25. CAPSQUARE TOWER
26. SUNWAY RESORT CITY
27. DAMANSARA UPTOWN
28. ONE CITY
29. LINDE ROC
30. iHUBSENTULPARK
PERAK 31. MENARA LGB 21 22 23 24
MERU RAYA

25 26 27 28 29
MELAKA JOHOR
MELAKA MENARA MSC
INTERNATIONAL CYBERPORT
TRADE CENTRE
30 31

Cybercity /
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Cybercentre
MSC Malaysia Status: Categories and Definitions
Status Type Definitions Who can apply?
MSC Malaysia Status Local or foreign companies that are involved in the Public / private
Companies development and utilisation of ICT; Institute of Higher organisations
Learning (IHL) and Incubation Centres.
 Technology-based
Companies
 IHLs
 Incubators

MSC Malaysia MSC Malaysia Cybercity and Cybercentre are designated State Governments,
Cybercities and MSC Malaysia area with conducive business environment Property Developers,
Cybercentres that provides the ecosystem to attract ICT investors and Building Owners .
promote the growth of local ICT companies.

MSC Malaysia Cybercities and Cybercentres are also the

designated areas in which the MSC Malaysia Bill of
Guarantees No. 1 is offered to MSC Malaysia status
companies.

In general, MSC Malaysia Cybercities offers higher and

more stringent level of infrastructure and infostructure
service delivery compared to MSC Malaysia Cybercentres.

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MSC Malaysia Cybercity / Cybercentre Boundary and
Designated Premises
Example:

Boundary and Area

• Boundary that clearly define the

start and end of an MSC
Cybercity / Cybercentre area

• Recognised by the Government,

via the letter of Confirmation of
Area and Boundary signed by YB
Minister

Designated Premises Other Premises

• Located within the • Located within the

approved boundary approved boundary
• Comply to MSC Malaysia • Need not comply to MSC
Performance Standards Performance Standards
• Offers BoG1 to MSC • Example: Apartments,
Companies Commercial Premises,
Office Blocks, Schools etc
• Recognised by the Gov.
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The full list of Cybercities, Cybercentres, Designated Premises and approved boundaries can be viewed in the MSC Malaysia website
Qualifying Criteria

QUALIFYING CRITERIA FOR MSC MALAYSIA

CYBERCITY/CYBERCENTRE

1 Driven by State Government, and Cybercity/Cybercentre stakeholder

Compliance to MSC Malaysia

2 Broadband and infrastructure readiness Performance Standards

3 Customer focused management with KPIs

Competitive environment to attract investment, nurture start-ups / SMEs

4 and house knowledge workers

5 Talent pool availability

6 Proximity and linkages to universities and research centres

7 Use relevant Flagship Applications to enhance service delivery

8 State ICT Blueprint providing value propositions for local economy

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Overview of MSC Malaysia Performance Standards (1/2)

Infostructure
• Multiple network facilities and service providers environment
•  99.9% service availability
• Full coverage for all cellular operators

Electricity Supply
• Power redundancy and  99.9% service availability
• < 15 seconds restoration time of back-up power supply to enterprise

Water Supply
• Availability of service level agreement or client charter on water supply
services

Transportation
•  2 public transportation modes

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Overview of MSC Malaysia Performance Standards (2/2)

Natural Environment
• Availability of environmental compliance / initiatives

Security and Safety

• 10 minutes response for authorities
• Availability of Emergency Response Plan (ERP)

Customer Service Quality

• One Stop Centre for Cybercity / Cybercentre management
with client charter
• ISO 9001 Certification for the Cybercity / Cybercentre Management or One
Stop Centre

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Background on the Process for Application and Recognition of
MSC Malaysia Cybercity/Cybercentre status

1. Cabinet approved process for application and recognition of MSC Malaysia

Cybercities / Cybercentres on 13 March 2009:

 Stage 1: Application for Cybercity/Cybercentre Development

 Stage 2: Recognition & Operationalisation of Cybercity/Cybercentre Status
 Stage 3: Application for Additional Area (& New Premises) or New
Premises in Existing Cybercity/Cybercentre

2. Process to be implemented through Asas Rujukan Pentadbiran document (which

includes the new CCM Agreement template), which was approved by MOSTI in
December 2010.
Application Process: Stage 1 - Development of MSC Malaysia Cybercity / Cybercentre

Consultation Phase
Consultation with MDeC

* Document Required
1. Letter of Intent
Submission of Preliminary Proposal * 2. Preliminary Proposal

** Document Required
Assessment Phase Submission of Full Proposal ** 1. Qualifying Criteria and Readiness Report
2. MSC Malaysia Performance Standards
Compliance Report

Assessment by MDeC *** *** Inclusive of Site Visit / Pre-Audit by MDeC on

the proposed Cybercity / Cybercentre site

Escalation Phase Notify relevant Ministries **** **** MOF, MITI, MUWHLG, MEGTW, MOSTI

Escalation to
KKMM

Approval Phase Approve

Decision by Escalation Decision by
KKMM to YAB PM YAB PM
Stage 1: Approval for
Development of MSC Reject Approve Reject
Malaysia Cybercity /
Cybercentre
KKMM to issue notification letter
Application Process: Stage 2 – Recognition and Implementation of MSC Malaysia
Cybercity / Cybercentre Status

Submission of Application*
* Document Required:
• MSC Malaysia Performance Standards
Compliance Report (Updated)
Compliance Audit by MDeC **

Escalation to
KKMM ** Assessment and compliance audit by MDeC on
the proposed Cybercity / Cybercentre
designated premise(s)

Reject
Decision by Minister Informs
KKMM Applicant on Gaps to be
Resolved
Approve

Notifications of Approval***
*** Consist of:
• Letter of Recognition of Status by KKMM
• Issuance of Certificate of Status signed by YAB PM
• Letter to Inform Applicant on area, boundary and designated
Signing of Cybercity/Cybercentre Manager premises
(CCM) Agreement between MDeC and
Applicant
Application Process: Stage 3 – Expansion of Boundary & New Designated Premises in
Existing Cybercity / Cybercentre

Submission of application for additional * Document Required

area/new designated premises* 1. Application letter from Cybercity/Cybercentre
Manager (CCM)
2. Performance Standards Compliance Report

Assessment and on-site audit

by MDeC

Escalation to KKMM

Approved
KKMM to issue
Decision by approval letter to
KKMM applicant
Rejected

KKMM informs applicants of gaps to be

resolved
Roles of Cybercity / Cybercentre
Provide the conducive business environment and ecosystem that:
 Attracts ICT investors
 Nurtures local ICT companies to become global players
 In essence, house MSC Malaysia status companies

Partner of MDeC and the Government in:

 Delivery of MSC Malaysia Bills of Guarantees (BoG) to MSC Malaysia status

companies

Cybercity / Cybercentre is not about property-play.

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Cybercity / Cybercentre: Post-approval Obligations
 Continuously fulfill the Qualifying Criteria and Performance Standards, particularly in
delivering BoG1 and ensure delivery of Telcos’ and Utilities’ Performance Guarantees to
MSC Malaysia Status Companies

 Participate and provide assistance to MDeC in the annual audit on compliance to the
Performance Standards

 Setup a dedicated One-Stop-Centre (OSC) that will manage the day-to-day operations of the
Cybercity / Cybercentre. Main roles of the OSC are:

 Attract MSC Malaysia status companies and ICT investors to relocate their business to
the Cybercity / Cybercentre
 Ensure continuous compliance of BoG1 and Performance Standards
 Formulate and implement value adding ICT programmes to MSC Malaysia status
companies

 OSC to develop and implement within 6 months of approval of Status:

 ISO 9001 certification

 Cybercity / Cybercentre Management System (CCMS)
 Internal Cybercity / Cybercentre networking session

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Thank You