BILL OF GUARANTEES

This bill is a sign of true serious commitment by the Malaysian government. It was born out of 100 international companies specifying barriers to their commitment here.

The Malaysian Government commits the following under the Bill of Guarantees to all MSC companies (within MSC boundaries):
  1. Provide a world-class physical and information infrastructure.
  2. Allow unrestricted employment of local and foreign knowledge workers.
  3. Ensure freedom of ownership by exempting companies with MSC status from local ownership requirements.
  4. Give the freedom to source capital globally for MSC infrastructure and the right to borrow funds globally.
  5. Provide competitive financial incentives , including no income tax for up to ten years or an Investment Tax Allowance, and no duties on the importation of multimedia equipment.
  6. Become a regional leader in intellectual property protection and cyberlaws .
  7. Ensure no censorship of the Internet.
  8. Provide globally competitive telecommunication tariffs.
  9. Tender key MSC infrastructure contracts to leading companies willing to use the MSC as their regional hub.
  10. Provide a high powered agency to act as an effective one stop super shop ( MDC ).


INFRASTRUCTURE - Information & Physical

Information Infrastructure
MSC will offer:

The MSC's transmission capacity is be based on the ATM (Asynchornous Transfer Mode) technology. On July 1996, Telekom Malaysia Bhd. had been appointed sole provider of the backbone infrastructure. The company, Pirelli Cables has recently won a major contract to supply about 2,000km of fibre-optic cabling worth £6 million (about RM24 million) for the infrastructure of Malaysia's Multimedia Super Corridor.

KL Telecommunication Towers, Petronas Twin Towers, Putrajaya, Cyberjaya, will use dedicated fibre optic cables - plug into broadband Multimedia network


Physical Infrastructure
MSC will boast high quality residential housing, leisure & entertainment facilities, schools, multimedia university, hospitals, transport infrastructure and promote green environment with strict zoning.

Multimedia University
A multimedia university complete with state-of-the-art technology features will be built along the proposed highway linking Kuala Lumpur with Putrajaya and KLIA. The university will be built on a 70-hectare site at Information Technology City, adjacent to Putrajaya. The university is to be built under the Private Higher Education Institutions Act.

The university is geared to meet the needs of the growing information technology industry. The Education Ministry would seek the help of foreign and local information technology experts, prominent corporate bodies, and foreign universities to provide input and to prepare the lay-out and determine the budget for the university.

Due to a shortage of information technology lecturers, foreign lecturers would be hired to teach in the multimedia university.

Malaysia will require 50,000 information technology workers by the turn of the century.


KLCC (Kuala Lumpur City Complex)
The KLCC is being designed to create a visible and viable commercial enclave in KL. It will be a self-contained, city-within-city. Infrastructure will emphasise on access and efficient transportation. KLCC will be served by the LRT (Light Rain Transit), roadways and other proposed inter-city transportation systems. It will have the latest in telecommunication and be linked directly to the country's first telecommunications satellite. KLCC will have intelligent buildings amidst a large recreational park.

KLCC Tower (also known as Petronas Twin Tower)is the world's tallest office building at 452 meters, with 88 levels.


KLIA (Kuala Lumpur International Airport)
KLIA, located in Sepang, at the southern border of the MSC, is to be operational in 1988. KLIA includes an international two-runway airport costing US$4 billion. It will be the largest airport in Asia capable of handling 72 flights per hour and up to 1000 metric ton per day. KLIA will also serve the purpose of being a global testbed for the development of IT applications for airport management services.

Rail Links & Highways
Transport:

Putrajaya
Putrajaya, the new Federal Government Administrative Centre, is conceived and planned for and by Malaysians. It has been named after the nation's first Prime Minister, the late Tunku Abdul Rahman Putra Al-Haj.

Moving the national administrative machinery from Kuala Lumpur to Putrajaya is in line with the Government's policy to provide a more balanced development away from Kuala Lumpur. It is a decision motivated by the Government's desire to improve the urban environment and quality of life in Kuala Lumpur and ensure continued growth in the Klang Valley.

In June 1993, the Federal Government approved Perang Besar as the site for the development of Putrajaya in view of its strategic location along the Kuala Lumpur and KL International Airport growth corridor.

In December 1993, the Federal Government appointed six local consultants, together with the Town and Country Planning Department and the Public Works Department to prepare the development plan for Putrajaya. On 22 February 1995, the Government approved the plan. It was launched in August 1995.

Putrajaya will be developed as a Garden City with intelligent features. It will be a city that will be developed in accordance with a structured plan that focuses on the preservation of it eco-culture and is sensitive to the quality of life of its inhabitants. It will provide an urban environment for 250,000 people with 52,000 homes equipped with modern amenities.

This will be the principal seat of the government, using multimedia technologies to become a paperless administration. It will cater to 76,000 staff who will occupy 1.5 million square metres of floor space. Leading the initiative will be the PM's office which plans to to become "paperless" by the year 2000.

The government will be favouring MSC companies to supply government's requirements.

The Edge Communications, June 34 1997
    SP Setia Bhd. has been picked by Putrajaya Holdings to construct the Prime Minister's office and official residence and other government buildings within Putrajaya. This is the most sought-after package in the development of the new administrative seat of the federal government. Setia is targeting for a September launch, with the houses and apartments ready for occupation before the end of 1998.

    Setia undertakes this work as a consortium (Setia -50%, Putrajaya Holdings - 30%, and as yet unidentified bumiputra company - 20%). There are four other consortiums involved in developing Putrajaya: Hong Leong Properties Bhd., Malaysian Resources Corp Bhd , and possibly Peremba.


Cyberjaya
Planned to be Asia's most advanced IT city, was launched May 1997. Cyberview Holding Sdn. Bhd. is the developer. It is planned to be a place where people can work, live, and play in a green environment while utilising world class technology.


Employment of Foreign Knowledge Workers
The Malaysian Multimedia Bill of Guarantees confers the right to MSC status companies to employ any number of foreign workers who will be treated like "special guests" with multiple entries.

Knowledge Worker
Definition of a "knowledge worker" is any of the following:

Or Or Or


Freedom Of Ownership
A MSC status companies can be wholly owned by foreign legal entities - with the proviso that:

The MDC will assist with either of these actions.


Freedom To Source Capital Globally

The exemptions enable MSC-status companies to: Note: These exemptions do NOT include dealings with residents or institutions of Serbia, Montenegro, or Israel; nor for transactions in those currencies.

MSC-status companies are required to:


Financial Incentives
All MSC-status companies enjoy the following financial benefits:


CYBERLAWS
Given the fact that there has been no precedence in terms of a multimedia corridor legal framework, the proposed laws for the MSC are regarded as extremely crucial in creating a conducive environment and wooing foreign multimedia-based companies to come to Malaysia.

Multimedia Development Corporation chief operating officer, Dr Mohamed Arif Nun, has described the set of 6 cyberlaws as the most sweeping single package of legislation specifically dealing with the legal challenges surrounding information technology.

Computer Crimes Bill and Digital Signature Bill have already been tabled and passed in Parliament. The Government is planning to unveil a Telemedicine Bill and an amended Copyright Act in the next few weeks followed by an Electronic Government Bill, Multimedia Intellectual Properties Bill and a Multimedia Convergence Bill in the next parliamentary session.

The multiple objectives of the cyberlaws are:

More details on each of the Cyberlaws follow:


1. Electronic Government Bill
To enable politicians, public servants and public to communicate electronically, using established and secure formats and standards.


2. Computer Crimes Bill 1997
This has already been passed. A copy of this is obtainable at web site:
http://www.tm.net.my/cyberlaw/index.htm

The Computer Crimes Bill creates new offences dealing with computer hacking, virus creation and divulging of passwords which can be applied to action anywhere in the world that has an impact on Malaysian-linked computers.

The bill supplies the framework that defines illegal access, interception, use of computers and information, standards for service providers, outlines potential penalties for infractions.


3. Telemedicine Bill
This will enable the provision of remote medical services, using electronic medical data and prescription standards, to be covered by insurance schemes.


4. Multimedia Convergence Bill
This will be a World's first whereby the act will attempt to rationalise various technologies, i.e. the convergence of different media that were previously governed by different acts. This constitutes a marriage of the 3 Cs - computers, communications, and content.


5. Multimedia Intellectual Properties Bill
No other country has created such a comprehensive set of laws on the protection of intellectual property. It will give Multimedia developers full intellectual property protection via on-line registration of works, licensing, and royalty collection.


6. Digital Signature Bill 1997
This has already been passed. A copy of this is obtainable at web site:
http://www.tm.net.my/cyberlaw/index.htm

The Digital Signatures Bill creates an electronic signature with equal legal standing to a written signature and the means for authenticating the signature and any message attached to it. It aims to enable digital signature (cf. handwritten) in legal & business transactions.


MDC (Multimedia Development Corporation)
"The MDC's mission is to create the best environment in the world for private-sector companies to pursue multimedia and to facilitate their investment in the MSC."
-Tan Sri Dr. Othman Yeop Abdullah, Executive Chairman, MDC-

"Malaysia will provide a high-powered implementation agency to act as an effective one-stop shop to ensure the Multimedia Super Corridor meets companies' needs."
-Dato' Seri Dr. Mahathir Mohamad-

MDC's singular and overriding purpose is to ensure the success of the MSC. It's vision: to execute plans for Vision 2020 - specifically in regards to the Multimedia Super Corridor.


MDC'S Characteristics


MDC's Tasks and Functions

The MDC has initiated an automatic acceptance system with a 30 day turnaround. Only rejected companies will be notified within 30 days - MSC status is automatically conferred if there is no news from MDC within 30 days.

The Multimedia Development Corp will open 10 offices around the world over the next two years to be near the MSC's clients.


MDC Board Of Directors
(from public and private sectors)

Chairman:
Tan Sri Dr. Othman Yeop Abdullah

Chief Operating Officer:
Dr. Arif Nun (former deputy Director-General of Mimos)

  1. Tan Sri Clifford Herbert, Secretary-General of Finance Ministry
  2. Datuk Nuraizah Abdul Hamid, Secretary-General of Energy, Telecommunications, & Posts Ministry
  3. Datuk Asmat Kamaluddin, Secretary-General of International Trade and Industry Ministry
  4. Tengku Datuk Dr. Mohd. Azzman Shariffadeen, President and CEO of Mimos; permanent secretary of NITC - National IT Council
  5. Dan E. Khoo Chairman of Pikom - Association of Malaysia's Computer Industry
  6. Datuk Khalid Ahmad, Executive Chairman of MRCB
  7. Datuk Mohamed Said Mohamed Ali, Chief Executive of Telekom
  8. Shukor Karim, Executive Director of Sapura Holdings
  9. Wan Fusil Wan Mahmud, Executive Director of Mesiniaga