INGENIEUR
process and systems and was recognized as the
major driver of the KBE (OPP3, 2001). In essence,
the OPP 1 and OPP 2 policy strategies have helped
to shift the export structure systematically from
low-paying natural resources to high value-added
manufactured goods and services. While in OPP3,
with ICT as a major thrust, is poised to create
new wealth through endogenous economic growth
(EPU, 2001).
As depicted in Figure 1, each long term
plan was driven through the Five Year Malaysia
Plans, which had their own development thrust,
in particular growth with equity (1971-1990)
followed by balanced development (19912000) and building a resilient and competitive
nation. Notably, the past policy and development
thrusts were FDI centric, while the current New
Economic Model (NEM) and Tenth Malaysia Plan
Figure 2
(2010-2015) emphasize endogenous growth by
promulgating an innovation based economy and
leveraging on DDI as well as innovation and R&D
initiatives that have commercial elements. The
new development strategy is aimed at lifting the
nation out of its middle-income trap identified
in the NEM formulation (NEAC, 2010). In this
regard, as outlined in Figure 2, contemporary ICT,
specifically ICT led innovation, is poised to play a
significant role in moving the nation towards a high
value-added economy and gross national income
(GNI) (PIKOM, 2010).
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VOL 55 JUNE – JUNE
In essence, Malaysia’s industrialization
efforts through ICT manufacturing have successfully
reduced the overdependence on agriculture or
resource based sectors. Specifically, the economic
contribution of the agricultural sector was 45.7% in
1960 but it experienced a significant reduction to
29% in 1970 and was subsequently reduced to 8%
by 2000. In parallel, the manufacturing sector grew
significantly, more than threefold over the same
period, from 9.8% in 1960 to 13.9% in 1970 and
32.3% by 2000. The services sector also grew but
at a slower pace, from 32.7% in 1960 to 52.4% in
2000 and poised to rise to 70% by 2020 when the
nation is deemed to attain a fully developed nation
status. In this regard, the ICT services sector has
been regarded as one of the key components of
the next engine of growth.
CONTRIBUTION OF ICT SECTOR TO GDP
By the definition stipulated in the Malaysian
Standard
Industrial
Classifications
2000
(MSIC, 2000) the traditional ICT comprised ICT
Manufacturing (ICT production) and ICT Services
components (Computer and Telecommunications
sub-sectors). Since its inception in early seventies,
the structure of ICT Sector in Malaysia has
undergone great upheavals. As per this definition
in particular, share of ICT production component
has drastically dropped from 74.3% in the year
2000 to 50% in 2010; in tandem the share of
ICT Services components has gained a stronger
footing in the economy by registering increase in
its share from 25.7% to 50% over the period, as
depicted in Figure 3. Driven by the labour intensive
investment strategies in the 1970s, followed by
capital intensive investment emphases in the
1980s, the ICT Sector \