SUSTAINING COMMUNITY e-CENTRES IN MALAYSIA

SUSTAINING COMMUNITY e-CENTRES

IN MALAYSIA

NORMALA SHAROMMINISTRY OF RURAL AND REGIONAL DEVELOPMENT, MALAYSIABALI 1-3 February, 2005

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1. Initiatives in Malaysia

2. Challenges

3. Addressing the Issue of Sustainability of the Telecenters

SUSTAINING COMMUNITY e-CENTRES IN MALAYSIA

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Initiatives in Malaysia• Medan InfoDesa (MID)

– Rural Information Centre

• Mini Medan InfoDesa (MINI MID)

• Rural Internet Program

• Private initiatives

• e-Bario Project

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Medan InfoDesa (MID)

• Multipurpose Community ICT Centre

• Built with the objective of encouraging Community Ownership, Empowerment and Sustainability - The MID is owned, managed and sustained by the local community

• Address the needs of the local people in a way that most empowers the communities they served.

• Structure that encourage and support communities to manage development

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• Began with 6 pilot projects in 2001

• 2003 – 17 projects had been established

• 2004 – 12 in various stages of implementation

• Cost per site – RM200,000 – RM300,000 (US$ 52,630 – US$ 78,950)


• Physical entity with complete ICT infrastructure

• Center for physical and virtual interaction amongst rural communities

• One Stop ICT Center• ICT training Center for district• Socially and economically viable and

sustainable• Catalyst for rural ICT entrepreneurship


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Target Group

• Individuals (local community members and village leaders);

• Small businesses;

• Schools;

• Youths;

• Disabled people;

• Farmers;

• Women groups;

• Political parties; and

• Government departments

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LINKAGES MODEL

MEDANINFODESA

GovernmentOffices

Village DevtCommittee

Other Services

CommunityCenter

Police Dept

Rural Clinic

Mosque Schools

Ministry of Rural & Regional Dev.

Local Communitiy

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Criteria for selection

• Good leadership• Population at least 1,000• Prerequisite

– Telecommunication– Electricity

• ICT project initiatives on their own• Have won the National Award for Best

village• One District One MID

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Facilities Provided • Building• Computer equipment

• Personal ComputerS - 20 units • AVR - 20 units• Laser Printer (b/w) - 1 unit• Colour Printer - 1 unit• Scanner - 1 unit• Server - 1 unit• Software - 20 units

• Local Area Network • Basic furniture• Launching Grant - RM 5,000 (US$ 1,315)• Training courses for Managers & Trainers

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Under the 9th Malaysia Plan (2006 -2010), plans are being made to provide ICT services to all rural districts, sub-districts and a selective number of villages


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SERVICES OFFERED• Cyber café - Internet service• Computer use • Access to e-Government services• Education, and training • Desk top publishing• Scanning and Printing• Photocopying • Web Page design • Graphic design• Communication / discussions• Business Services and e-commerce• On-line banking facilities

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MINI MEDAN INFODESA(MINI MID)

• Program under Ministry of Rural and Regional Development

• Scaled down version of the MID 10 -15 PCs per setup

• Mini MIDs are at subdistrict level

• Currently there are 32 Mini MIDs

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RURAL INTERNET PROGRAM (PID)

• Program under Ministry of Energy, Water and Communications

• Target group: the underserved in marginalised areas – such as small towns in outskirts of urban areas

• Setup: 5-6 networked PCs located in selected Post Offices

• 42 operational sites

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Private Intiatives

• Keen interest being shown by the private sector to participate in setting up of e-centers in the rural areas

• One company has begun program to develop 900 cyber-café projects across the country

• Entrepreneurship

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e-Bario PROJECT

• Started as a research project to create opportunities for social development within remote communities in Sarawak

• Aim: to provide ICT and internet access

• Bario – home of the Kelabit people which is located in a very isolated and remote part of the mountains of Sarawak where nowadays flying is the only practical way to get there

• Project began in 1999 and went operational in 2002

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e-Bario PROJECT

• Two schools have computer laboratories with 10 computers each and installation of an IT Literacy Programme for students and teachers

• Setup of a Community Telecenter with 4 computers, printers, a copier and fax machine with access to Internet

• Internet connectivity – VSAT connection

• The schools and telecenter runs on power generated by using solar panels and diesel generators

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CHALLENGES• High implementation cost (initial)

• Limited telecommunication infrastructure in remote areas

• Limited usage – not enough to sustain

• High operating cost (telecommunication, electricity, personnel)

• Encourage private sector participation

• Need for effective management

• Need for strong community support

• ICT training – wide coverage

• Technology moves fast

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ADDRESSING THE ISSUE OF SUSTAINABILITY OF THE TELECENTERS

• High implementation cost (initial)

- government support (MID, Mini MID, PID)

- private initiatives – own source of financing

- e-Bario – research grant RM 200,000 (US$ 52,630) from IDRC Canada and RM 620,000 (US$ 163,158) under Demonstrator Application Grant Scheme

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- satellite communication most suitable- initial cost RM 30,000 (US$ 7,895) per site

- MID, Mini MID, PID - government support - private initiatives – own source of financing- e-Bario – packaged under project (for 5 years)

- recurring cost - monthly bills – RM 330 (US$ 86.85)

- MID, Mini MID – from monthly collection- PID – government support- private initiatives – from monthly collection- e-Bario – packaged under project right from start

- no monthly bills for 5 years


• Limited telecommunication infrastructure in remote areas

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• Limited usage – not enough to sustain monthly income

- MID, Mini MID, might require prolonged government support - PID - government support - private initiatives minimised problem ; business driven- e-Bario – support from IDRC and DAGS

- funding to cover for first 5 years of operation

- ‘Killer application(s)’ – tailored to local requirement


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• High operating cost (telecommunication, electricity, personnel)

• Encourage private sector participation– the private sector should participate in

bridging the digital divide between the rural and urban areas

– Private sector may co-join with the government through ‘adoption’ of some of the telecenters

– The ICT industry can participate in producing ‘low cost computers and telecommunication

infrastructure for the telecenters– tax exemption

bigger marginal profit arising from economies of scale


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• Need for effective management- MID, Mini MID, - community ownership- PID – hired by Ministry of Energy, Water and

Communications - unemployed graduates

- private initiatives - operator is the owner of the business

- e-Bario – community ownership – significant village individual

• Need for strong community support- The community must support the telecentre for the

project to be successful


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• ICT training – wide coverage – 70% of Malaysia is rural- more MIDs and Mini MIDs under 9th Malaysia Plan- increased source of income

- basic training to be provided by trained MID operators - skilled ICT training to be provided through

outsourcing but carried out at the MID and Mini MIDs

• Technology moves fast- PCs get obsolete within 5 years- Most of the telecenters will face upgrading costs at some point- Government may help the MID and Mini MIDs by replacing a few PCs


TERIMA KASIHTHANK YOU

Documents

SUSTAINING COMMUNITY e-CENTRES IN MALAYSIA