NExT STEPS - Official Portal of MSC Malaysia

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NExT STEPS - Official Portal of MSC Malaysia
MDeC ANNUAL REPORT 2014
C
ANNUAL REPORT 2014
:NExT STEPS
MDeC’s Core
Function
Ü Shaping a world leading
environment
Ü Attracting and nurturing
leading-edge and world-class
companies
Ü Facilitating knowledge
transfers and wealth creation
Ü Building a well-mandated,
value-based and highly
effective institution
Vision
Leadership in the
Information Age
Mission
To spearhead the nation’s digital
economy by:
Ü Enhancing Malaysia’s status
as a global hub and preferred
location for ICT industries
Ü Catalyzing a holistic ecosystem
that promotes the pervasive
use of ICT and creates
connected communities
MDeC ANNUAL REPORT 2014
About MDeC
3
Background and Corporate Information –
MDeC, MSC Malaysia & Digital Malaysia
Board of Directors’ Profile
Senior Management Team
3
6
17
Key Highlights
20
MSC MAlAySiA
2014 Export Sales Performances
2014 Results & Achievements
Cluster Performance
Creative Multimedia Cluster
Global Business Services (GBS) Cluster
Information Technology Cluster
22
24
26
31
36
DigitAl MAlAySiA
Digital Entrepreneurs
B40 Community
Digitally-Savvy Youth
Small & Medium-sized Enterprises
58
60
66
72
Key enAblerS
Talent Development
Cybercities & Cybercentres
Innovation Capital
78
82
86
Financials
94
Directors’ Report
Balance Sheets
Income Statements
Statement of Changes in Equity
Cash Flow Statements
Notes to the Financial Statements
Statement by Directors
Statutory Declaration
Independent Auditors’ Report
96
100
101
102
103
105
125
126
127
1
MDeC ANNUAL REPORT 2014
About MDeC
background and Corporate information
The Multimedia Development Corporation (MDeC)
was incorporated in 1996 to strategically advise the Malaysian Government
on legislation, policies and standards for ICT and multimedia operations
as well as to oversee the development of the Malaysian Multimedia Super
Corridor (now MSC Malaysia), the platform to nurture the growth of
Malaysian Small and Medium Enterprises (SMEs) in the IT industry whilst
attracting participation from global ICT companies to invest in and develop
cutting edge digital and creative solutions in Malaysia.
In 2011, MDeC’s mandate was broadened by the Prime Minister to include
driving Malaysia’s transition towards a developed digital economy by 2020
through Digital Malaysia. In 2012, Digital Malaysia was official unveiled
as the nation’s transformational programme to achieve this aim. Digital
Malaysia is the national agenda towards a sustainable digital economy built
upon a vibrant domestic ICT industry, transformative use of digital solutions
by government, businesses and citizens, as well as a robust enabling
ecosystem.
Today, both MSC Malaysia and Digital Malaysia run concurrently to spur
Malaysia’s ICT industry development and digital transformation, under the
purview of MDeC.
3
MDeC ANNUAL REPORT 2014
5
Board of Directors’ Profile
ybhg. tan Sri
Abdul Halim Ali
CHAirMAn
Multimedia Development
Corporation (MDeC)
Y.Bhg. Tan Sri Abdul Halim Ali is an
independent Non-Executive Director
and the Chairman of the Board of
the Multimedia Development
Corporation Sdn Bhd (MDeC).
He was appointed to the Board
on 16 June 2003. He is also the
Chairman of the Remuneration and
Nomination Committee and Tender
Board A Committee.
Tan Sri Halim was born in Kedah in
1943 and had his early education at
the Sultan Abdul Hamid College,
Alor Star and the Royal Military
College (RMC) in Sg. Besi, Selangor.
After graduating from the University
of Malaya in 1966, he joined the
Ministry of Foreign Affairs and
served in the Malaysian Diplomatic
Service until 1996. During this period,
he served in several diplomatic
missions overseas, including
ambassadorial appointments in
Vietnam and Austria.
Tan Sri Halim was the 10th Chief
Secretary to the Government of
Malaysia, beginning September 1996
to 31 January 2001. With his
extensive experience as a diplomat,
he was the only officer from
external service to be appointed
Chief Secretary of State, a post he
held until 2001 when he was made
Chairman of the Employees
Provident Fund (EPF). He completed
his term as Chairman of EPF in
January 2007.
His current directorships in other
public companies include Malaysia
Building Society Berhad (Chairman),
IJM Corporation Bhd.(Chairman),
Universiti Teknologi Malaysia (UTM)
(Chairman), and Petron Malaysia
Refining and Marketing Berhad
(formerly known as ESSO Malaysia
Berhad).
MDeC ANNUAL REPORT 2014
y.bhg. Datuk
badlisham
ghazali
CHieF exeCutiVe OFFiCer (CeO)
Multimedia Development
Corporation (MDeC)
Y.Bhg. Datuk Badlisham Ghazali was
appointed as the Chief Executive
Officer (CEO) and Non-Independent
Director of the Multimedia
Development Corporation (MDeC)
on 16 January 2006.
Since taking the MDeC helm,
Datuk Badlisham has rebranded
the Multimedia Super Corridor to
MSC Malaysia, with strong value
propositions attractive to foreign
investors.
As CEO, Datuk Badlisham is
responsible to lead and drive the
Malaysian Government’s Vision 2020
of Transforming the Nation into a
Knowledge-based Economy through
the enablement, creation and
utilisation of Information and
Communication Technology (ICT)
applications and services.
As a member of the Ministry of
Education’s Cluster School Advisory
Board and the Ministry of Science,
Technology and Innovation’s
National Science Centre Advisory
Board, he believes in a bright future
through ICT and is keen on promoting
ICT among children and students,
encouraging them to take it up as a
career of choice. Datuk Badlisham
was also appointed as an adjunct
professor with the Multimedia
Faculty of Limkokwing University
of Creative Technology in February
2008.
A recipient of numerous ICT
industry awards, Datuk was awarded
the Global Leadership Award 2012,
PIKOM ICT Man of The Year 2008,
Technology Business Review Award
for Leadership in the ASEAN
Information Technology Sector 2008
(ICT Development) and Malaysian
Business Leadership Awards 2009
ICT Sector.
Prior to his appointment in MDeC,
Datuk Badlisham was with HewlettPackard (HP) Malaysia for 18 years
where he was the Director and
Country General Manager of
HP Technology Solutions Group.
Datuk Badlisham holds a B.Sc. Degree
majoring in Computer Science from
the University of Northern Illinois,
USA and a Diploma in Computer
Science from Mara Institute of
Technology, Malaysia
7
Board of Directors’ Profile (cont.)
en. Mohd esa
bin Abd Manaf
unDer SeCretAry
Fiscal and Economics Division,
Ministry of Finance (MOF)
En. Mohd Esa bin Abd Manaf is
an Independent Non-Executive
Director. He was appointed to the
Board on 1 May 2013.
Mr. Mohd Esa Abd Manaf currently
holds the position of Undersecretary
of Fiscal and Economics Division
(FED) in the Ministry of Finance
Malaysia (MOF). He has served the
Government for almost 30 years in
various capacities in the Ministry.
Mr. Mohd Esa was born in Batu
Pahat, Johor in 1956. His received
his early tertiary education at the
MARA University of Technology
(UiTM) in 1974. After graduating
with a Diploma in Accountancy in
1978, he served for a short stint
as accounting examiner at the
National Audit Department before
furthering his higher education
at the University of Malaya (UM),
graduating with a Bachelor of
Economics (Hons.) in 1982. He also
received a Master of Economics
from the National University of
Malaysia (UKM) in 1997.
While serving as the FED’s
Undersecretary in MOF, Mr. Mohd
Esa sits on several boards, including
that of the Multimedia Development
Corporation Sdn. Bhd. (MDeC, since
January 2013), Malaysian Directors
Academy (MIND, since February
2013) and JKP Sdn. Bhd. (property
sector, since June 2011). He also
serves on the Board of Governors for
University of Science Malaysia (USM,
since January 2007) and the Board
for Yayasan Tunku Abdul Rahman
(Tunku’s scholarship, since February
2000).
MDeC ANNUAL REPORT 2014
y.bhg. Dato’
Mohamed
Sharil tarmizi
CHAIRMAN
Malaysian Communications
and Multimedia Commission
(MCMC)
Y.Bhg. Dato’ Mohamed Sharil Tarmizi
is an Independent Non-Executive
Director. He was appointed to the
Board on 1 May 2009.
Dato’ Sharil has worked across a
broad range of industries, including
communications, multimedia,
finance and law. He was appointed
as Chairman of Malaysian
Communications and Multimedia
Commission (MCMC) from 17
October 2011 – 31 December 2014.
Dato’ Sharil first joined the MCMC in
its formative years in May 2000 to
head Industry Development. After
six years, he left to work in the
private sector as Executive Director
and Head of Strategy in a leading
boutique investment advisory and
strategic consulting firm. In June
2008, Dato’ Sharil was invited back
to the MCMC to take on the role of
Chief Operating Officer (COO) of
MCMC.
In the international arena, Dato’
Sharil has worked closely with a
number of high profile international
organisations including the
Internet Corporation of Assigned
Names and Numbers (ICANN), the
International Telecommunications
Union (ITU), World Bank, AsiaPacific Telecommunity (APT),
Pacific Islands Telecommunications
Associations (PITA), Commonwealth
Telecommunication Organisation
(CTO) and the International Institute
of Communications (IIC).
In November 2012, he was appointed
to the National IT Council (NITC) by
Prime Minister Dato’ Sri Mohd Najib
Tun Razak. He currently sits on the
Board of Trustee of the International
Multilateral Partnership Against
Cyber Threats (IMPACT) and is the
Vice Chairman of the ITU’s Council
Working Group on Child Online
Protection.
Dato’ Sharil holds a law degree from
the University College of Wales,
in Aberystwyth and qualified as a
barrister from Gray’s Inn, England
and Wales (UK)
9
Board of Directors’ Profile (cont.)
y.bhg. Datuk
r. Karunakaran
ExECUTIVE DIRECTOR
KR Advisory Sdn Bhd
Y.Bhg. Datuk R. Karunakaran is
an Independent Non-Executive
Director. He was appointed to the
Board on 1 May 2009. He is the
Chairman of the Tender Board B
Committee.
Datuk Karunakaran commenced
working for the Malaysian Industrial
Development Authority (MIDA)
as a Financial Analyst and served
as Director of MIDA in Singapore,
Germany and London from 1978
to 1995. Subsequently, he became
the Director of the Industrial
Promotion Division, responsible for
Malaysian Investment Promotion
Strategies and Programmes globally
and domestically, overseeing
16 MIDA overseas offices. Datuk
Karunakaran served as the Deputy
Director-General of MIDA in 2001
and became the Director-General in
2004 before retiring in 2008.
Datuk Karunakaran graduated from
the University of Malaya with a
Bachelor of Economics (Accounting)
Honours degree in 1972.
He is currently Executive Director of
KR Advisory Sdn Bhd. He is also an
Independent Director of Integrated
Logistics Berhad, Chemical Company
of Malaysia Berhad, IOI Corporation
Berhad, Bursa Malaysia Berhad,
Maybank Investment Bank Berhad,
Maybank Asset Management Group
Berhad and Etiqa Insurance Berhad.
MDeC ANNUAL REPORT 2014
ybhg. Datuk
Dr. Parmjit
Singh
CHIEF ExECUTIVE OFFICER
APIIT Education Group
Y.Bhg. Datuk Dr. Parmjit Singh is
an Independent Non-Executive
Director. He was appointed to the
Board on 1 May 2009.
Datuk Parmjit is the Co-Founder
and CEO of the APIIT Education
Group, which includes the Asia
Pacific University of Technology
and Innovation (APU), Asia Pacific
Institute of Information Technology
(APIIT), and Asia Pacific Schools
with branch campuses in India and
Sri Lanka.
He was installed as Staffordshire
University’s first Pro Chancellor in
July 2004 and is the President of
the Malaysian Association of Private
Colleges and Universities (MAPCU)
and the Vice President of Malaysian
Service Providers Confederation
(MSPC).
Datuk Parmjit has been credited
as both a visionary and an
internationalist. He has never seen
national borders as barriers.
As someone who has been involved
in IT and education for more than
30 years, Datuk Parmjit understands
that the digital era is a global one.
Having developed APIIT since its
inception, his commitment to provide
education of the highest quality,
designed to meet the career needs
of students has ensured that APIIT
has gone from strength to strength.
Datuk Parmjit has a remarkable
reputation and track record for
his leadership in education in
Malaysia and has served the nation
in various capacities as Chairman,
Advisor, Board Member and Council
Member on a number of National
level organisations which include
the following: National Vocational
Training Council (MLVK); Human
Resource Development Council
(HRDC); Expert Group on IT Human
Resources under the National
Council for Scientific Research and
Development (MPKSN); Advisory
Group on Technical and Vocational
Education under the Ministry of
Education; National Demonstrator
Application Grant Scheme (DAGS)
under the National IT Council; and
the Malaysian Qualifications Agency.
His contributions to the IT industry
were recognised as far back as 1990
when he was awarded the “1990 IT
Personality of the Year”.
11
Board of Directors’ Profile (cont.)
Mr. Ang
Chin Joo
(C J Ang)
ADViSOr
Association of the Computer and
Multimedia industry Malaysia
(PiKOM)
Mr. Ang Chin Joo (C J Ang) is an
Independent Non-Executive Director.
He was appointed to the Board on
1 May 2009. He is the Chairman of
the Audit Committee.
Mr. Ang Chin Joo served the ICT
industry in Malaysia for 37 years and
is one of the pioneers of ICT in
Malaysia. In IBM Malaysia, Ang
played leadership roles in many of
the early computerisation projects
including several firsts, like the first
National Cheque Clearing House
project with Bank Negara, the first
Automated Teller Machine (ATM)
project with Maybank, projects that
implemented online banking systems
in the early days of electronic
banking, the early computerisation
of giants like Tenaga Nasional,
Telekom Malaysia and Malaysia Airlines
(MAS), among others. As the Principal
of the ASEAN IBM Management
Consulting Group, he contributed
significantly to the boardroom
strategies of industry leaders like
Kontena Nasional and MAS.
In 1994, Mr. Ang became the first
Country Manager of Compaq Computer
Malaysia. This was followed by an
entrepreneurial phase which
culminated in the listing of Datascan
Berhad (now Cuscapi Berhad) on the
MESDAQ (now ACE) Market of Bursa
Malaysia in 2004. From January 2008
till May 2010, Mr.Ang was the
President of PIKOM, the National ICT
Association of Malaysia. Mr. Ang
contributed to PIKOM’s co-hosting
of the 16th World Congress on
Information Technology (WCIT 2008)
in May 2008 that was proclaimed as
the best ever in its 32 years history.
Mr. Ang also played a significant role
in PIKOM being elected as the global
Secretariat for WITSA. This is an
honour as it is the first time a
country other than USA hosts the
global Secretariat of WITSA.
Mr. Ang also extended his leadership
capabilities to the formulation of
PIKOM’s 5-year plan for industry
growth. As PIKOM President, he led
the execution of this strategic plan
to double the industry’s contribution
to GDP. Mr. Ang has served the ICT
industry with dedication and passion,
both in companies he served, in
PIKOM, and in several key Government
agencies and committees in the
pursuit of growth and progress in
the Malaysian ICT industry.
Mr Ang is currently also an
Independent Non-Executive Director
of two public listed companies
namely Cuscapi Berhad and Milux
Berhad.
MDeC ANNUAL REPORT 2014
y.bhg. Datuk
Wan Ahmad
Shihab ismail
SPeCiAl OFFiCer tO tHe
HOnOurAble PriMe MiniSter
Prime Minister’s Office (PMO)
Y.Bhg. Datuk Wan Ahmad Shihab
Ismail is an Independent Non-Executive
Director. He was appointed to the
Board on 1 May 2009.
Y.Bhg. Datuk Wan Shihab began his
career in the celullar arm of
Telekom Malaysia where he served
as an Executive in the Corporate
Services Division. He later joined
KUB Malaysia Berhad as a Senior
Executive overseeing various
corporate divisions reporting
directly to the Executive Chairman.
In 2002 he was invited to serve at
the National Economic Action Council
as a consultant with the Special
Consultative Team on Globalisation,
which, among other things,
focused on Malaysia’s globalisation
preparedness initiatives as well as
bilateral and multilateral free trade
agreements.
In 2004, he was appointed as
Special Officer to YAB Dato’ Sri
Mohd Najib Tun Hj. Abdul Razak
who was then the Deputy Prime
Minister. When Dato’ Sri Najib
became Prime Minister in 2009,
Datuk Wan Shihab was appointed to
the Prime Minister’s Office where he
currently serves as Special Officer
and Divisional Director, overseeing
and monitoring various areas which
include science and technology,
telecommunications, transport,
tourism, energy and works.
Datuk Wan Shihab is a Member
of the Land Public Transport
Commission (SPAD) and has also
been appointed to various Boards
of government-owned corporations
which include – Biotech Corp,
Powertek Energy Sdn Bhd and
1Malaysia Energy (Langat) Sdn Bhd.
He is also a member of the Board
of Trustees of the Yayasan Rakyat
1Malaysia.
13
Board of Directors’ Profile (cont.)
Puan Hawariah
binti idris
PrinCiPAl ASSiStAnt SeCretAry
investment, MOF (inc.) and
Privatisation Division at the
Ministry of Finance (MOF)
Puan Hawariah binti Idris is an
Independent Non-Executive
Director. She was appointed to the
Board on 1 May 2013. She is the
Alternate Director for En. Mohd Esa
bin Abd Manaf (MOF).
Puan Hawariah is a member of the
Chartered Accountant (CA) of the
Malaysian Institute of Accountants
(MIA). She holds a Bachelor of
Honours Degree in Accounting from
Universiti Teknologi MARA (UiTM).
Puan Hawariah has vast experience
in the accounting field and finance,
having started her career as an
Assistant Director in Government
service since 1995. She also served
as State Treasurer in State Financial
Department of Penang and State
Director of Accountant Federal
Department for Pulau Pinang and
Perlis from year 1996 to 2010.
Puan Hawariah is a Board Member
of Malaysian Maritime Academy
Sdn Bhd (MMA) since August 2011.
She currently serves as Principal
Assistant Secretary, Investment,
MOF (Inc.) and Privatisation Division
at the Ministry of Finance (MOF),
Government of Malaysia
MDeC ANNUAL REPORT 2014
y.bhg. Datuk
Dr. Madinah
binti Mohamad
SeCretAry generAl
Ministry of education Malaysia
(MOe)
Y.Bhg. Datuk Dr. Madinah binti
Mohamad is a Non-Independent
Non-Executive Director. She was
appointed to the Board on 1 May
2009.
YBhg. Datuk Dr. Madinah binti
Mohamad was officially appointed
as Secretary General, Ministry of
Education Malaysia (MOE) effective
on 3 June 2013.
She graduated with a Bachelor’s
degree in Political Science from
Universiti Sains Malaysia and a
Master’s degree in Human Resource
Development from Universiti Putra
Malaysia. She also holds a PhD in
Human Resource Development from
Universiti Putra Malaysia. She began
her career as an Administrative and
Diplomatic Officer in 1981 with the
Ministry of Foreign Affairs. Prior
to her current position, Datuk Dr.
Madinah has had vast working
experience in various Government
agencies such as the Public Service
Department, the Ministry of
National and Rural Development,
the Ministry of Works, Ministry of
Science, Technology and Innovation
(MOSTI) and the National Unity and
Integration Department.
* YBhg Datuk Dr. Madinah retired from the Board on 21 October 2013.
15
Board of Directors’ Profile (cont.)
en. ramlee
bin Mohd
Shariff
DIRECTOR
Ascendsys Sdn Bhd
En. Ramlee bin Mohd Shariff is
an Independent Non-Executive
Director. He was appointed to the
Board on 1 June 2012.
En. Ramlee is a Fellow of the
Association of Certified Chartered
Accountants (“ACCA”). He began
his career in Ernst & Young in 1987
and became an Audit Manager in
1992. In 1993, he joined Shapadu
Corporation Sdn Bhd as the Internal
Audit Manager and was promoted
to Group Financial Controller in
May 1995. He left the company
in May 1997 to join Bridgecon
Holdings Berhad as the General
Manager-Finance where he was
also responsible for the group’s
Corporate Finance, Accounts and
Management Information System
Department.
Over the years, he has accumulated
vast experience in corporate
exercises including fund raising,
particularly those under the Skim
Jejak Jaya Bumiputera (“SJJB”), a
laudable programme conceived by
our Prime Minister to nurture more
Bumiputera companies for listing on
the Bursa Malaysia Securities Berhad
(“BMSB”).
En. Ramlee served as a member
of the Board of Priceworth Woods
Product Berhad (“PWP”) from
November 2001 – 2009.
He is currently a Director in
Ascendsys Sdn Bhd, a MSC Malaysia
status company and one of the
leading Managed Security Services
(“MSS”) provider in Malaysia.
* En. Ramlee retired from the Board on 31 April 2013.
MDeC ANNUAL REPORT 2014
Senior Management team
ybHg. DAtO'
ng WAn Peng
DAtO’ yASMin MAHMOOD
Chief Executive Officer (CEO)
nOr FAizAH OtHMAn
Chief Operating Officer
ybHg DAtO’ DAn e KHOO
Vice President,
Corporate Strategy
AHMAD nirAn
bin MOHAMMAD nOOr
Wee HuAy neO
Director, SME
Vice President,
Stakeholder Engagement
MuHAMMAD iMrAn
KunAlAn bin AbDullAH
KArl ng KAH HOu,
ir Dr
Director, Talent
SuMitrA DeVi
A/P gOVinDA nAir
Director, Youth
Chief Financial Officer &
Director Corporate Services
rAMeSH KuMAr
A/l r. SOHAn lAl
Director, Customer Service
MiCHAel JOHn WArren
WAn MurDAni
bin WAn MOHAMAD, ir
Director, Innovation Capital
Vice President,
Shared Services and Outsourcing
Director, Digital Enablement
nOrDArzy rAzAK
bin nOrHAliM
HASnul HADi
bin SAMSuDin
Director, Digital Entrepreneur
Director, B40
General Manager,
Creative Multimedia
HASAnnuDin bin SAiDin
17
MDeC ANNUAL REPORT 2014
19
MDeC ANNUAL REPORT 2014
21
MSC
MalaySia
:KEY HIGHLIGHTS
exPOrt SAleS 2014
#10.6% 25%
Export sales growth
from 2013
Export sales from
Malaysian-owned companies
36%
Export sales contribution to
MSC Malaysia total revenue
ExPORT SALES GROWTH (RM BIL)
9.32%
10.12%
11.55%
12.41%
13.73%
2010
2011
2012
2013
2014
LOCAL MSC MALAYSIA
COMPANIES ExPORTING
(RM BIL)
3.51
3.38
423
451
362
2.3
2012
NO. OF LOCAL
MSC MALAYSIA
COMPANIES ExPORTING
2013
2014
2012
2013
2014
MDeC ANNUAL REPORT 2014
TOP SECTORS MSC MALAYSIA ExPORTS
Growth
from 2013
SSO
inFOteCH
CreAtiVe
MultiMeDiA
#9.4% #13.2% #17.8%
40%
SECURITY,
TELECOM,
NETWORKING
50%
BPO, ITO
24%
OTHERS
18% ITO
76%
12%
DESIGN
14% BPO
8% ITO, KPO
5% KPO
3% BPO, ITO, KPO
2% BPO, KPO
9.4B
RM
10%
CONTENT APPS
8% BFSI
6% ERM/ERP
3.9B
RM
FILM/TV
VFx
13%
ANIMATION
7% GAMES
4% NEW MEDIA
503B
RM
23
reSultS 2014
NEW INVESTMENT BY CLUSTER
2.93B
45%
RM
INFOTECH: RM1.32B
37%
17%
CREATIVE MULTIMEDIA: RM0.51B
SSO: RM1.01B
1%
IHLs: RM0.03B
NEW INVESTMENT GROWTH AND PERCENTAGE FDIs 1997 - 2014
57%
2.4
45%
44 %
40 %
33%
24 %
32%
22%
22%
38
36%
%
37%
29%
26%
24 %
20 %
22%
12%
0.9 0.7 2.7 3.5 2.6 1.5 1.9 1.7 2.9 3.7 1.8 2.2 1.5 2.5 2.9 3.0 2.9
'97
'98
'99
'00
'01
'02
'03
'04
TOTAL NEW INVESTMENT RM BIL
FDIs
RM1.3B
'05
'06
'07
'08
'09
'10
'11
'12
PERCENTAGE FDIs
45%
DDIs
55%
TOP COUNTRIES
RM1.6B
1
2
3
4
5
uSA
Samoa
Singapore
india
netherlands
RM335M
NORTH AMERICA
'13
'14
MDeC ANNUAL REPORT 2014
NEW JOBS COMMITTED BY CLUSTER
14,029
JOBS
SSO: 8,309 jobs
59%
26%
INFOTECH: 3,638 jobs
CREATIVE MULTIMEDIA: 1,817 jobs
LOCAL KNOWLEDGE WORKER CREATED FROM NEW JOBS
74%
229
Newly approved MSC Malaysia status companies
RM121M
RM163M
EUROPE
ASIA
RM40M
MIDDLE EAST
RM142M
INDIA
RM154M
SINGAPORE
RM18M
AUSTRALIA
RM253M
SAMOA
13% 2%
IHLs: 265 jobs
25
Creative Multimedia Cluster (CMC)
Growing beyond the
traditional
The Creative Multimedia Cluster (CMC) continued its efforts
to develop the creative industry, focusing on companies in the
Animation; TV Film, & Visual Effects; Games & Digital Comics;
and Mobile Content, Apps & New Media industries. In 2014,
CMC companies grew to number 436, versus 399 in 2013.
The CMC experienced healthy growth in 2014, with overall
increases in revenue, export sales, GDP contribution and
investments. Notable highlights include:
#44%
90%
in New Media sector due to the large number of new companies
and increased average revenues, encouraging efforts at expanding
beyond traditional entertainment activities.
contribution to overall CMC revenue by the TV, Film
and Visual Effects sector
MDeC ANNUAL REPORT 2014
PuSHing CreAtiVity
AnD innOVAtiOn
MDeC continues to spur local creativity and innovation
through its strategic platforms; Kre8tif! Conference and
Intellectual Property Creators Challenge (IPCC).
KRE8TIF! CONFERENCE 2014
T
he fourth edition of this conference for creative
industry players and practitioners to discover
the latest trends and best practices was attended
by approximately 300 participants, and featured
sharing sessions by seasoned creative practitioners.
Gathering leading minds in digital content, arts and
entertainment for a weekend of theoretical and
practical knowledge sharing, the conference featured
20 international leaders and pioneers from the art,
entertainment, and design industries. New and existing
strands in the creative content sphere, such as digital
arts and social media, gaming, film, animation as well
as content and scriptwriting, were explored in depth.
YB Minister Dato’ Sri Ahmad Shabery Cheek exploring
Peperangan Bintang, a Digital Wayang Kulit created by
Action Tintoy Sdn Bhd, a MSC Malaysia Status Company
at the Opening Ceremony of Kre8tif Conference 2014
Ms. Ng Wan Peng, Chief Operating Officer of MDeC
presented a token of appreciation to Mr. Vitaly Golomb
from Golomb Ventures, USA after his presentation at
the conference
Dato’ Kamil Othman, Vice President of Creative
Multimedia Division presented a token of appreciation
to Mr. John Hughes from John Hughes Institute, USA
after his presentation at the conference
27
Creative Multimedia Cluster (CMC)
INTELLECTUAL PROPERTY CREATORS CHALLENGE (IPCC)
T
he Intellectual Property Creators Challenge
(IPCC) has been running since 2006 to find and
fund more quality content from amateurs and
professionals alike, for further development and
global marketing. In 2014, from over 180 entries, 15
winners were awarded with RM760,000 worth of
grants which showcased the best of local talents in
creative content, encompassing Animation, Casual
Games and Digital Interactive Comics.
Dato’ Yasmin Mahmood, Chief Executive Officer of MDeC and
En. Hasnul Hadi Samsudin, Director of Creative Multimedia at
the Prize Giving Ceremony of IPCC 2014 in November 2014
For the first time ever, submissions to its “I Love
Comedy” themed challenge included cities outside
the Klang Valley such as Kuching, Penang and Kota
Kinabalu. MDeC held IPCC Awareness Workshops
in these cities from August until September 2014,
which saw the participation of over 400 individuals
and resulted in 50% more submissions in the
Casual Games category. The international and
Malaysian panel of judges included representatives
from the Mobile Entertainment Forum, The Walt
Disney Company, Google Inc, Media Prima, Astro,
Perbadanan Kota Buku, Astro GOPlay, International
Game Developers, Malaysia Chapter and Ideate
Media.
MDeC is also proud to acknowledge the success of
“The Journey” – one of Malaysia’s highest grossing
film of all times, a locally-produced heart-warming
story by Astro Shaw, an MSC Malaysia Status
company, which contributed significantly to the
cluster revenue.
Much has been achieved further to this initiative.
1
2
3
4
30 new Intellectual properties
(IPs) were registered with MyIPO in 2014.
At Casual Connect Asia in Singapore 2014, grant recipient
Kurechii won “Best Mobile Game”
award at the Indie Prize Showcase.
To further develop the local creative multimedia cluster,
a new funding framework was developed and funding has
increased to RM145,000
this year, breakdown as follows:
WIGU Games, another
grant recipient, signed a
publishing deal for Doctor’s
Life with Tahadi Games,
a games publisher who
brings the best free-toplay, multiplayer-online,
browser-based games and
mobile games to customers
in the Middle East and
North Africa.
FUNDING BREAKDOWN (RM)
145K
RM
60K
RM
ANIMATION
CASUAL GAMES
RM
60K
RM
25K
DIGITAL INTERACTIVE COMICS
MDeC ANNUAL REPORT 2014
internAtiOnAl buSineSS
DeVelOPMent
M
DeC continues to facilitate market access for local
creative companies to grow globally. From the
many market access and business development missions
that we facilitated, our local creative products have
gained interest from major industry buyers:
• During MIPJr & MIPCOM in Cannes, Wau Animation’s
“Agen Ali” scored the highest hits of views from
buyers. Active interest was received from Viacom
(Nick) India, Discovery Kids (India), IRIB (Iran) etc.
• Giggle Garage’s “Chameleon” scored 2nd highest hits,
receiving the attention of Disney Japan, TF1 France,
etc.
Meanwhile, the more established local players
continued to gain bigger international successes via
strategic partnerships and licensing deals:
• Animonsta signed with Japan’s largest toy company,
TakaraTomy to develop their “Island Vehicle” series,
with production slated for 2015. TakaraTomy is also
working out a toy deal for “BoboiBoy Galaxy”, an
adventure-based storyline re-branding of BoboiBoy.
• Mediasoft signed with Li Ning, one of China’s biggest
sports goods company to produce the Li Ning Jump
Smash game. The app has had 6 million downloads to
date.
• Lemon Sky Animation signed an MOU with Japan’s
Bandai Namco for new games development. BANDAI
NAMCO is a world leader in games development and
publishing, responsible for world- renowned titles
such as PAC-MAN, Tekken, SOULCALIBUR and NARUTO.
• Les Copaque signed with Japan’s Tsuburaya
Production to produce 3 episodes of a TV series
entitled “Ultraman Ribut”, together with Upin & Ipin.
• Les Copaque, Animonsta and KRU partnered with
YouTube and generated a collective RM1.5 million in
2014.
29
Creative Multimedia Cluster (CMC)
grOOMing Future tAlent
Creative Industry Lifelong Learning Program (CILL)
Q
uality begets quality. Realizing the importance
of workforce skills development in nurturing
the Creative Multimedia Content industry, CILL is a
training grant totalling RM 30 million provided under
the National Key Economic Area / Communications,
Contents and Infrastructure since 2011. The program
develops both fresh talent and experienced
practitioners in a two-pronged effort to build local
knowledge and skills in the industry.
Critical focus areas include Producing and Directing,
Scripting and Screen Adaptation, Animation, Games
Development, Visual and Special Effects, Sound Effects
and Audio Technology and Production Support Services.
The program has benefitted 672 recipients thus far,
many of whom have built new portfolios as a result.
Notable achievements include:
• Film - A recipient with a Masters in Scriptwriting at
Goldsmith University, UK, won the Golden Award for
Best Story, Award of Merit for Best International Film,
Best Directing, Best Acting, Best Cinematography and
Best Editing for his short movie, “On the Streets of
London”.
• Music – A recipient who attended a Masterclass in
Sound Effects and Audio Technology at Studio LA
Fabrique, France was involved in the production of
Malaysian R&B duo Sleeq’s latest album titled “Tolong
Tepi Sikit”.
The Interaction Session
with CILL grant recipients
MDeC ANNUAL REPORT 2014
global business Services (gbS) Cluster
GBS was formerly known as Shared Services and Outsourcing
(SSO) and comprises of 406 MSC-Malaysia status companies.
the gbS cluster focuses on 3 sub-sectors:
1
BUSINESS PROCESS OUTSOURCING (BPO)
BPO is the outsourcing of Back Office and Front Office functions, typically
performed by white collar and clerical workers. Examples include
accounting, human resources, medical-coding and transcription.
2
INFORMATION TECHNOLOGY
OUTSOURCING (ITO)
ITO is a company's outsourcing of computer or Internet-related work
to other companies. Examples include programming highly customized
software products, development tools and web solutions.
3
KNOWLEDGE PROCESS OUTSOURCING
(KPO)
KPO is a form of outsourcing, in which knowledge-related and
information-related work is carried out by workers in a different
company or by a subsidiary of the same organization, which may be in
the same country or in an offshore location to save cost.
Unlike the outsourcing of manufacturing, this typically involves
high-value work carried out by highly skilled staff. Some examples
include: research and development, patent research, pharmaceutical
technology, equity research, market research, data research, database
management, finance modelling, design and development in various
industries, animation, medical reports and services. Services from
engineers, doctors, attorneys and other professionals are becoming
more and more popular.
31
global business Services (gbS) Cluster
Key HigHligHtS OF 2014
MDeC’s efforts in developing the gbS industry have brought
significant results, with Malaysia maintaining its global
leadership position. Details as follows:
1 Amongst clusters, GBS had the
highest export sales in 2014 with
RM9.19 billion, accounting for 66.9% of total
MSC Malaysia export sales, with the European
region being a primary destination.
2 MSC Malaysia welcomed 62 new companies
including Aegis BPO, the largest BPO company in
the world.
3
Malaysia’s attractiveness as a GBS location
continued to bring significant investment into
MSC Malaysia
• The 62 new MSC Malaysia status companies
resulted in new investments of RM1.07
billion, and 8,309 jobs
• Current investors demonstrated their continued
trust and confidence by expanding their
investments in Malaysia. Reinvestment
through direct intervention
increased by 17% to a total value
of RM2.4b from companies such as Shell,
•
Malaysia has moved up the value chain by attracting
KPO companies, growing KPO export growth
by 34%
• Total KPO investment is RM78 million,
88% of which came from 5 KPO Engineering companies:
• Linde (Germany)
• NNE Pharmaplan (Germany)
• BIM Global Ventures (DDI)
• ICCIPTA (DDI)
• MRA International (DDI)
4 Malaysia maintained its position in the
Top 3 Best Location for Global Services
in AT Kearney Global Services Location Index report,
for 11 consecutive years.
5 GBS also identified and developed new sources of growth;
•
•
attracting Forbes’ 2000 & Singapore’s mid-size
captive centers, resulting in 44% of new
investment and generating approximately 40% of
total jobs
to focus on KPO Financial & Engineering services
ExxonMobil, NTT, Aegis, Scope and e2Power
MDeC is working on expanding the GBS cluster beyond the Klang Valley area, to include:
MSC Zone:
Flagship Zone B:
Penang IT-BPO Hub
Medini, Iskandar Malaysia, Johor
An rM3.3billion joint venture between Pulau Pinang
and Singapore specific to the IT-BPO industry
3 local companies: goldbury Communications,
brandt international & Vision technology Consulting
Have expanded out of the Klang Valley and
established satellite operations in Flagship Zone B
to tap into the Singapore market.
Expected to generate 21,000 high paying,
knowledge-intensive and high-value jobs
over the next five years
A dedicated area for GBS
Total of RM600 million worth of investment made,
which generated up to 1,100 jobs
MDeC ANNUAL REPORT 2014
tHe nKeA ePP3 –
MDeC’S DAtA Center (DC)
inDuStry DeVelOPMent
eVentS 2014
Following are highlights of MDeC’s international efforts
towards achieving the nation’s aspiration of becoming
a regional hub for the data centre industry, under the
national Key economic Areas (nKeAs) Agenda entry Point
Project 3 (ePP3).
1 Tropical Data Centre Energy Efficiency
Symposium 2014
Organized by MDeC in collaboration with the university of nottingham Malaysia (unMC)
The symposium engaged DC industry stakeholders in
efforts to promote energy efficiency improvement.
• Gathered 60 delegates, namely industry experts,
data centre players, researchers, solution
providers and policy makers
• Exchanged ideas on tropical data centre energy
efficiency measurements and best practices
Panel Discussion Session: (From left) Dr. Mahendra Chilikuri,
Mr. Tan Tze Meng, Mr. Keith Asley, Mr. Takutaro Onoe and
Mr. Bernard Lee
Speakers included:
• Mr. Tan Tze Meng of MDeC - who highlighted the
importance of reducing energy consumption in
data centres and proposed the use of technology
to do so
• Keynote speaker Mr. Thiagarajan of the Malaysia
Data Centre Alliance (MDCA)
• Mr. Takutaro Onoe of NISCOM, Mr. Keith Asley of
HP, Mr. Rudolf Aritonang of GE and Mr. Bernard
Lee of EATON
• Dr. Mahendra Chilukuri of UNMC - presented the
results of an energy efficiency benchmarking
exercise conducted on Malaysian data centres,
and revealed the DC Community Website - a
platform for relevant stakeholders to gather
information and exchange ideas on data centre
energy efficiency
33
global business Services (gbS) Cluster
2 Nikkei Business Publications (Nikkei BP)
IT Pro ExPO 2014
ICT to kick-start the kind of innovation crucial for a
company's sustained growth.
A cluster of content-rich professional events, covering
• Cloud Days Tokyo 2014 Autumn,
• Big Data EXPO 2014 Autumn,
• Smartphone & Tablet 2014 Autumn and
• Security 2014,
this multi-faceted trade event presented state-of-theart ICT solutions for visiting delegates.
Speakers included specialist reporters from Nikkei
Business Publications, who conveyed the latest
breakthroughs in information technology.
Japan is Asia’s largest Data Centre (DC) market, making
it a high-priority target for DC business development
under the National Key Economic Areas (NKEAs) agenda
Entry Point Project 3 (EPP3), which aims to position
Malaysia as a world-class data centre hub. Towards
this end, MDEC has been driving efforts to increase
Malaysia’s visibility in Japan.
Mr. Chiew Kok Hin from AIMS, delivering his talk at the event
Delegation’s site visit to Fujitsu’s data centre in Tokyo, Japan
3 Malaysian Data Centre Alliance (MDCA)
Conference 2014
The MDCA held its inaugural conference
with the theme ‘Fostering Data Centre
Services, Driving the Next Regional IT Hub’.
It addressed the critical issues relevant to
planning, building and managing efficient,
green data centres which are able to evolve
and adapt to rapidly changing business
needs.
Left to Right: Mr. David Wong of Outsourcing Malaysia,
Ms. Ng Wan Peng of MDeC, Mr. Billy Lee of MDCA,
Mr. Cheah Kok Hoong of PIKOM and En. Wan Murdani Mohamad of MDeC
MDeC actively supports the DC industry as
advisor to the MDCA, continuously building
their capability, credibility and capacity
while working towards generating demand
for the future growth of the DC industry.
MDeC ANNUAL REPORT 2014
4 Southeast Asia Datacentre and
Cloud Congress 2014
From left:
Datuk Badlisham Ghazali,
CEO of MDeC delivering his
keynote address at the event
From left to right: Mr Yong
Yoon Kit of PEMANDU,
En. Wan Murdani Mohamad &
Datuk Badlisham Ghazali of
MDeC and En. Engku Ahmad
Kamel Engku Taib of IRDA in
a press conference during
the event
An annual international event, the Congress marked
its third year of bringing together regional investors,
service providers, large end-users and professionals
in the data centre industry. This business
development and awareness platform engaged
potential investors and large end-users from
Singapore, Hong Kong, Australia, Japan and China.
MDeC, as patron sponsor of the event, worked with
Broadgroup (UK) to bring it to Malaysia. The event
was strategically hosted in Iskandar, Johor to bring
focus to Malaysia’s southern region as a natural
complement to Singapore, as well as to showcase
Sedenak as the first greenfield data centre park in
Malaysia.
5 CIO Survival Series Volume 2:
“Survival of Cloud Fittest”
tHe CiO SurViVAl guiDe eDuCAtiOnAl WOrKSHOP SerieS OrgAniSeD by MDeC in PArtnerSHiP
WitH teCHnOlOgy MArKet intelligenCe FirM, internAtiOnAl DAtA COrPOrAtiOn (iDC)
The second volume of this workshop series
held in 2014, helped Malaysian CIOs cope with
the rapidly changing technological landscape,
equipping them to be more efficient in
addressing challenges associated with
surviving and thriving in a rapidly changing
and competitive marketplace.
The workshop
• Gathered 80 selected Malaysian CIO and IT decisionmakers
• examined the different stages of cloud development
among Malaysian IT organizations,
• provided solutions to improve the assimilation rate of
new services into leading companies.
From left:
Ms. Ng Wan Peng, Chief Operating
Officer of MDeC delivering her
welcoming speech at the event
Mr. Chris Morris of IDC delivering his
analysis on the ‘cloud-readiness’ of
enterprises in Malaysia
Mr. Michael Warren of MDeC (left) in
conversation with Mr. Jason Gorud
of IDC (right) while Mr. Jim Sailor of
IDC (middle) looks on
35
information technology Cluster (infotech)
A StellAr yeAr OF grOWtH
the information technology Cluster, better known as
infotech, consists of MSC Malaysia Status Companies
managing the hardware, maintenance and marketing
of software products, which includes the design and
development of technology products and applications.
infotech cluster focuses efforts on 5 major areas, namely
big Data, e-Commerce, internet of things (iot), Cloud
Computing and Security.
Year 2014 brought positive overall growth to InfoTech:
3,539
#8.7%
#13%
Advanced level knowledge worker jobs created
in Export revenue, with the ASEAN partners
and targeted verticals initiative having created
rM900 million in business opportunities
671M
RM
2013
2014
1.1B
RM
Banking, Financial Services and Insurance (BFSI) is the
best performing subsector with 66% revenue growth
125
new companies were
awarded MSC status
2,665
increment of
cluster companies
MDeC ANNUAL REPORT 2014
internAtiOnAl buSineSS
DeVelOPMent AnD
reCOgnitiOn
increased international market reach, recognition and
milestones were achieved, with noteworthy success among
the following infotech companies:
Fusionex Corp Sdn Bhd
Key ACHieVeMentS:
A recipient of the 2014 Product Commercialization
Fund (PCF) for Big Data, Fusionex is a provider
of software solutions, specializing in Business
Intelligence, Analytics & Big Data. The firm has
established offices in Singapore, Thailand, Europe
and USA, servicing the agriculture, retail & FMCG,
logistic & transportation, banking, energy & utilities,
insurance, manufacturing, telecommunications,
travel & hospitality industries. In December 2013,
Fusionex officially launched its Big Data Analytics
software “GIANT”, the first comprehensive Big Data
Analytics software of its level in Asia.
Awards received:
• Ernst & Young (EY) Technology Entrepreneur of the
Year Award at the PIKOM ICT Leadership Awards
2014
• Most Outstanding Entrepreneur Award at the 2014
Asia Pacific Entrepreneurship Awards
• Microsoft Top Partners Award for 3 consecutive
years
Revenue #34%
2014: RM23.8M
2013: RM17.7M
Securemetric
Technology Sdn Bhd
Key ACHieVeMentS:
Collaborated with regional channel partners in
Hanoi, Ho Chi Minh City, Jakarta, Manila, Singapore
and Yangon as part of their international marketing
strategy.
Award received:
“Best of Security” Award at the MSC APICTA 2014 for
its PKI-In-A-Box appliance.
Revenue #41%
2014: RM11.6M
2013: RM8.2M
Infopro Solution Sdn Bhd
Key ACHieVeMentS:
A provider of Conventional Banking, Islamic Banking
and Electronic Banking solutions compatible with
system platforms provided by all major vendors,
Infopro implemented its eICBA system in 90 banks in
30 countries. 70% of its total revenue is from export
sales to Greater China, Indochina and Africa.
Revenue #457%
2014: RM11M
2013: RM2M
37
information technology Cluster (infotech)
MDT Innovations Sdn Bhd Exabytes Network
Sdn Bhd
Key ACHieVeMentS:
One of the pioneers in IoT (internet of Things) and
NFC (Near Field Communications) offering products
and services through embedded developments and
components engineering.
MDTi focused on enabling and expanding IoT
application beyond mobile payment and into business
analytics, achieving major exports to Japan, China,
Australia, US, Taiwan and Indonesia.
latest awards:
• Best of Communications Winner at International
APICTA Award 2013 (NFC in SIM card, Empowering
all Phones to Become NFC Tag)
• Best of Applications and Tools Merit Award at MSC
APICTA 2013 (Intelligent Impact Monitoring System)
• Best in Private Sector Category- Gold Medal Asean
ICT Award 2013 – (NFC in SIM card, Empowering all
Phones to Become NFC Tag)
• Spirit of Innovation Award at APELA 2013.
Revenue #44%
2014: RM75.76M
2013: RM52.27M
Key ACHieVeMentS:
Having acquired Usonyx, the Singapore-based Cloud
hosting service provider, Exabytes gained immediate
market share and leadership position in South-East
Asia’s Cloud Hosting sector.
It will be focusing more on acquisitions /
partnerships in the region to increase market share
outside Malaysia, and is expected to generate 20%
growth in overseas revenue.
Awards received:
• Sin Chew Business Excellence Awards 2014
• The Best Reseller New Registration 2014 By MYNIC
(The Malaysia Network Information Centre)
• The Best Reseller Northern Region 2014 By MYNIC
(The Malaysia Network Information Centre)
• Exabytes CEO Individual Award - The Prestige
Malaysia Top 40 Under 40, 2014
Revenue #50%
via organic growth and strategic acquisition efforts
MDTi aims to achieve USD100mil revenue by 2016
and IPO by 2017. To date, MDTi has registered
32 intellectual properties (IPs), targeted for
commercialization by 2017.
2014:
2013:
30M
20M
RM
RM
Vitrox Corporation Bhd
Key ACHieVeMentS:
A provider of an advanced and cost- effective automated vision inspection system & equipment for the
semiconductor, printed circuit board assembly (PCBA) and electronic component packaging industries, two of
Vitrox’s R&D projects in 2014 have been successfully exported to Thailand, Vietnam, Greater China, Europe,
USA, Mexico and Brazil. These were:
1. Advanced x-ray Inspection (AxI) for x-rays
2. Advanced Optical Inspection (AOI) systems for the electronics Printed Circuit Board Assembly (PCBA)
industry.
The projects generated approximately
RM28.6M and RM17.8M respectively
MDeC ANNUAL REPORT 2014
Advanced Tech Communications Sdn Bhd
Key ACHieVeMentS:
A specialist in design, development & commercialization of high-tech mobile wireless computing &
telecommunication devices, Advanced Tech was successfully listed on the National Stock Exchange (NSx) of
Australia in 2014.
MOL
Key ACHieVeMentS:
The biggest online payment service provider in
Malaysia and Asia, MOL was successfully listed on
the New York Stock Exchange (NASDAQ) in 2014.
DNex Hallmark
e-Commerce Sdn Bhd
Key ACHieVeMentS:
DNex is an expert provider of e-commerce services
for Trade Facilitation, IT Consultancy, and Cyber
Security.
On 31st October 2014, they launched myTrade2Cash,
a centralised online trade financing service offered
in collaboration with Maybank. The first of its kind
in Asean, this comprehensive trade financing service
enables SMEs to conveniently apply for trade finance
facilities from Maybank through DNex’s online
platform.
latest awards and achievements:
• Attained Level 2 Maturity rating for Capability
Maturity Model Integration (CMMI) for Services
version 1.3. Best practices prescribed by the CMMI
for the Services model.
• retained the ISO/IEC 27001:2005 certification
that was awarded to FORTRESS™ in 2008 - an
internationally recognised standard of security
controls within the organisation to protect
information and intellectual property assets.
myTrade2Cash offers SMEs financing of between
rM500,000 to rM3 Million and is expected to serve
over 100,000 customers, including exporter SMes.
Blinkware Technology
Sdn Bhd
Key ACHieVeMentS:
A revolutionary pioneer, pre-eminent developer and
multiple award winner of “Gesture Interactive &
Motion Immersive Technology”, a state of the art
suite of products that are enabled by gesture and
motion control, also known as touchless technology.
They have changed the digital advertising landscape
by developing creative content integrated with
their very own gesture and motion control software
known as ‘Blinkware Suite’, the first in Asia Pacific,
garnering much local and international interest
various industries including shopping malls, retail,
banking, telcos, creative agencies and media
owners. It is also expanding into the development
of innovative learning games for young children,
allowing learning coordination at an early stage using
gesture technology.
latest awards and achievements:
• “Best Media & Entertainment Technology” under
the MSC APICTA Awards in Malaysia 2014
• A winner at the International APICTA Competition
2014 which saw over 17 competing ASEAN countries
vying for the prestigious award in their individual
categories.
touchless technology is forecasted to spur
revenue growth up to uSD $4.18 billion by 2018
(at a double digit CAgr of 42.33% from 2013 till
2018)
39
information technology Cluster (infotech)
PrOFiling neW MSC MAlAySiA
StAtuS COMPAnieS
2 InfoTech Executive Dialogue (IED) Sessions “iCt trends & Predictions 2014”
• 5th IED (Central Region, Kuala Lumpur) • 6th IED (Northern Region, Pulau Pinang)
5th INFOTECH EXECUTIVE DIALOGUE, April 2014
6th INFOTECH EXECUTIVE DIALOGUE, August 2014
2 infotech roadshows 2014
• Pulau Pinang • Technology Park Malaysia (TPM), Bukit Jalil
OBJECTIVES:
•
•
•
•
To assist companies with SCORE+2014 submissions
To understand companies’ products and services
To gather company’s requirements on MDeC’s assistance
To recommend programmes and incentives that would
benefit the companies
• To advise companies on their MSC Malaysia operational
matters
›› In Pulau Pinang, 19 companies were site visited, including leading companies
Aemulus Corporation Berhad and Vitrox Corporation Berhad. A total of 11 companies
attended the session in TPM, Bukit Jalil
MDeC ANNUAL REPORT 2014
In 2014, main efforts were on profiling new MSC Malaysia
Status companies and encouraging them to complete the
SCORE+ and CEDP programmes which are tailored to bridge
gaps and develop profitable competencies. To this end, 358
new companies were profiled (cluster number totalling 1,793),
via the following Key Initiatives and Programmes:
The successful IED is an annual gathering for MSC Status
InfoTech companies, to
• discuss new trends in cloud, social, mobile and the
information evolution
• understand impact and action required for harnessing
business opportunities
›› Attended by 175 InfoTech companies (254 attendees)
iftar networking event
July 2014
OBJECTIVES:
Ms. Angie Khoo, Head of Client Management & Development Department
giving the welcoming remarks at the Iftar Networking Event 2014
• to provide the InfoTech companies networking opportunities
for potential business matching.
• To connect their MSC Malaysia-related queries to their
respective Client Managers.
›› This successful networking event was attended by 46 InfoTech companies
41
information technology Cluster (infotech)
inFOteCH COMPAnieS
COMPleteD tHe SCOre+
PrOgrAMMe in 2014
The MSC Malaysia SCORE+ Programme is a framework of seven
competency petals designed to capture the fundamentals of
competitiveness for InfoTech companies. These are:
1
2
3
4
5
6
7
FinAnCiAl CAPAbility
buSineSS PerFOrMAnCe
MAnAgeMent CAPAbility
}
Identified gaps in
SCOre+2013, and
CeDP 2014 focus
on improvement
MArKeting CAPAbility
OPerAtiOnS MAnAgeMent
innOVAtiOn
tAlent DeVelOPMent
T
he SCORE+ programme rates companies on their
current state of growth and competitiveness ranging
from 1-Star to 5-Star, with the latter being highest.
The objective of the SCORE+ programme is to analyse
and evaluate the performances of MSC Malaysia status
companies with the view to increase effectiveness and
competitiveness in the global market.
In 2014, a total of 333 companies participated in the
SCORE+ programme.
The analysis results from SCORE+2013 concluded that
there were 3 competency petals that required improvement
among the InfoTech companies, and these were
1. business Performance
2. Management
3. Financial Capabilities
In 2014, relevant Customised Enterprise Development
Programmes (CEDP) were designed and implemented to
address these competency gaps.
Key Results
192
INFOTECH companies
were developed
7% of InfoTech companies that have been participating
in CEDP since 2006 – 2014, improved their competencies
petals from Tier 3 to Tier 2 SCORE+ ranking.
11 companies have moved up the tiers,
35 companies have maintained at the same tier and
4 companies have decreased in their tiers
20
CEDPs were conducted
throughout 2014
MDeC ANNUAL REPORT 2014
20 CEDPs were conducted throughout 2014, as follows:
nO. PrOgrAMMe
nO. OF
COMPAnieS
DeSCriPtiOn
21
A Half-day Intensive Programme to enlighten companies on
• key principles of PDPA,
• the rights of data subjects
• responsibilities of data users under the PDPA
• implementing a framework to comply with the PDPA
branding - Do your Own
brand Strategy in (1 Day)
10
Education on the fundamentals of Branding; including
• Branding Process
• Brand Positioning
• Brand Image, and
• Implementing branding strategies within the company
Joint Venture, Mergers
& Acquisition and
exit Strategies for
technopreneurs
20
Provided knowledge and insights on the subject,
including
• negotiating terms sheet and valuation,
• undertaking due diligence,
• deal structuring, and
• post-merger integration
Pitching Session for Joint
Venture and Mergers &
Acquisition Follow up
14
A case-study based follow-up session to create further
understanding on the fundamentals of Joint Venture and
Mergers & Acquisition
leverage your Selection &
recruitment Strategies to
Find the best talent
20
Covered the importance of effective interviewing
- obtaining the right set of skills and information to
conduct competency-based interviews and to ensure
organisations’ offer fair opportunities to potential
recruits.
14
Covered the fundamentals of a typical financial system
and the common financial practices of an ICT company.
1
Personal Data Protection Act
(PDPA) 2010
2
3
4
5
6
Financial essentials for iCt
companies
43
information technology Cluster (infotech)
7
incentives, grants & Funding
Opportunities Available for
MSC Malaysia Companies
42
Informed companies of the various funding platforms
available from the government and private agencies in
Malaysia, as summarised below:
• Funding programmes from MTDC, Cradle, EXIM Bank,
SME Corp and MDV.
• Cloud Incentives provided by MDeC
• Funding facilitation provided by MDEC
8
[email protected] Forum
16
Attended by more than 300+ companies across all
industry sectors, 16 MSC companies had the opportunity
to learn from theoretical and case-study perspectives
on ways to stimulate innovation within their
organisations, to create their own competitive edge.
9
business Strategy for iCt
companies
20
Designed for business leaders, this course taught the
processes of business strategy planning - covering
competitive strategy, corporate strategy, and strategy
execution using Google and Apple case studies in group
work exercises.
14
Education on the
• key principles of generating profits
• process of building a business model, and the
• nine key components of a business model.
10
How to Create A
Profitable Business Model
Designed for non-finance entrepreneurs, the
programme culminated with a hands-on training on
building financial statements.
11
Creativity gateway :
How to enhance use
of Creative thinking &
Problem Solving
12
Financial Contract
And Agreement
11
Informed companies on key concepts behind creativethinking, decision-making and problem-solving, in
handling tough situations at their workplace.
8
Education on the basics of the law of contract, covering
key issues including:
• the formation of a contract and their terms and
conditions,
• critical areas such as the effect of exclusion clauses
and limitation.
MDeC ANNUAL REPORT 2014
13
Working with gen x &
y for greater business
Performance
9
An update on factors affecting different workforce
generations, preparing participants for changing
organisational workplace culture, values and work ethics.
Information on the key principles of
• understanding current market demands, and
• expanding business into new market segments to
sustain growth and customer loyalty
14
How to Penetrate new
Markets & Strengthen
Customer loyalty for
exponential growth
13
15
Strategic Sales Advisor
7
Programme to develop the holistic Sales Person, which
covered selling skills fundamentals and essential skills
needed in complex sales situations.
risk Management for
technopreneurs
11
Education on risk management, which covered the
following:
• how it benefits companies in achieving objectives,
• types of typical risk exposure
• the concepts of opportunity and downside risk,
• how risk management should be organized
• understanding enterprise risk from the shareholder
value perspective.
11
Provided an understanding on Market Intelligence and
Competitive Intelligence. Companies also learned on
how to: leverage “intelligence” by using Strategic
Intelligence, Tactical Intelligence and Counter
Intelligence in order to be Competitively Intelligent
and ultimately gain competitive advantage in the
marketplace.
56
96
105
Full-day seminar to help companies with the GST
transition, including negotiating term sheet and
valuation, and undertaking of due diligence, deal
structuring and post-merger integration.
16
17
Market intelligence :
A Strategic Approach for
Competitive Advantage
18-20
risk Management for
technopreneurs
45
information technology Cluster (infotech)
MSC MAlAySiA ClOuD
COMPuting initiAtiVe
(MMCCi) in 2014
This key initiative is aimed at creating a sustainable Cloud
Ecosystem for Malaysia by accelerating the adoption of Cloud
Computing by Independent Software Vendors (ISVs).
Key Results 2014
113
5,088
new digital enterprises
E-enabled
MSC Malaysia Companies
participated
Collaborated with 8 Cloud
Technology Partners :
1 Microsoft (M) Sdn bhd
2 exabytes network Sdn bhd
3 VADS bhd
4 emerge Systems Sdn bhd
5 Heitech Managed Services Sdn bhd
6 Alam teknokrat Sdn bhd (SKAli)
7 Shinjiru technology Sdn bhd
8 ntt MSC Sdn bhd
218
Independent Software
Vendors (ISVs) nurtured
#35
in cloud businesses
achieved, amounting to
rM34.5M in revenues
MDeC ANNUAL REPORT 2014
The programme was divided into two (2) key focus areas:
1 ClOuD teCHnOlOgy PArtnerS PrOgrAMMe
creating a favourable cloud ecosystem to enable ISVs
to deploy cloud software and services
2 SOFtWAre-AS-A-SerViCe (SAAS) PrOgrAMMe
nurturing local Cloud providers to catalyse demand for
Malaysian made cloud software and services.
Twelve events held in 2014 generated 154 ISV leads
36
12
2
7
17
Cloud Strategy Day
with MiCrOSOFt
19th March 2014
154
Shinjiru Cloud Day for
Modern business
8th December 2014
7
9
ntt beyond Cloud Day
26th November 2014
Shinjiru Cloud Day
19th November 2014
Successful Cloud business
Model with exabytes
21st May 2014
15
AwanHeitech iSV
Cloud Day
10th December 2014
4
7
inFOteCH executive Dialogue 2014
10th April 2014
30
8
Cloud Azure Day
6th November 2014
Cloud Start up Day
with MiCrOSOFt
11th June 2014
teh tarik Session
with iSVs in Penang
19th August 2014
Cloud ISV Briefing Day
21st August 2014
2014 MSC MAlAySiA
Cloud Computing Conference
24th September 2014
47
information technology Cluster (infotech)
2nD MSC MAlAySiA ClOuD
COnFerenCe 2014
The 2nd edition of this
conference was held in
Aloft Hotel KL Sentral
on 24 September 2014.
Themed “Accessibility,
Anytime, Anywhere”, its
objective was to promote
cloud adoption through
the MSC Malaysia Cloud
Computing Initiative
(MMCCI). In this gathering
of 230 attendees
from 177 companies,
MSC Malaysia Status
companies were able to:
• Explore best practices
in cloud solutions,
cloud infrastructure
and deployments
with key cloud vendor
players in the market
Panel Discussion with Dr. Chang (HeiTech Padu), Vincent Lee (Wavelet Solutions)
and Mr. Victor (Trend Micro Inc.)
• Promote Software-AsA-Service solutions to
potential customers
Panel Discussion
MDeC ANNUAL REPORT 2014
Closing Remarks by Angie Khoo,
Head of Client Management
The crowd at the Exhibition Showcase by the 8 Cloud Technology Partners
49
information technology Cluster (infotech)
OtHer Key PrOgrAMMeS
Global Malaysian Technology Champion
(GMTC) Programme
AC t i V i t i e S
Global Malaysian Technology Champion (GMTC) Knowledge Sharing Session Advantages & Benefits of Getting into Gartner Reports by Mr. Cheong Yuk Wai,
CEO of MyBiz Solutions Sdn Bhd
Conference Call for Vendor Briefing
One-on-One Session with Research Board Members (MANULIFE & Bumi Armada)
Roundtable Sessions with Gartner Analysts:
Session 1 (Nov 2014) with Darryl Carlton –
specialist in Application Development & Integration
Session 2 - (Dec 2014) with Mr Jonah Kowall –
expert in IT Operations
Partnership between MDeC and Gartner Analysts to assess and groom
selected MSC companies towards global-market readiness and recognition,
via ranking tools such as Gartner Cool Vendors
and Magic Quadrant.
51
MSC companies initiated
engagement with Gartner Analyst
and Research Board Members
15
companies participated in
GMTC Vendor Briefing (VB)
infopro Sdn bhd published a research paper
with gartner called
“A BANKERS’ GUIDE TO
ASIAN CORE
BANKING SOLUTION”
51
companies have attended
the Introduction and
Exploratory activities
MDeC has gained a better understanding
of methods to
INCREASE THE VISIBILITY
OF MSC COMPANIES TO
GARTNER ANALYSTS
MDeC ANNUAL REPORT 2014
Stacking Programme
tHe FOrMAtiOn OF VAriOuS COnSOrtiA OF MSC StAtuS COMPAnieS WitH
tHe PurPOSe OF OFFering A uniFieD SOlutiOn tO A Single buyer.
The best MSC Malaysia companies are brought together to form a set of non-competitive,
complementary and interoperable solutions, to be more competitive internationally.
FO r M eD 6 S tACK S O F M S C M A l AySi A CO M PA n i e S:
1
2
3
Smart Grid and
Waste Management
• IRIS Corporation – Waste Management
• Vesta PMS Sdn Bhd (MSC) - Smart Grid
• eBdesk Sdn Bhd - Survey Data Collection
Project Management
& Monitoring System
• The eCEOs Sdn Bhd - Project Management and
Monitoring Systems
• Virtual Calibre MSC Sdn Bhd
• IFCA MSC Bhd
Dashboard Information
Centre and Kiosk for
Kawan Iskandar Malaysia
(KIM)
• 3ntity Berhad - Digital Signage Solution
• Speedminer Sdn Bhd - Data Warehouse
• Datamicron System - Advance Visualization and
Dashboard
4
Development and
Implementation of
Ideation Factory Online
Portal (IFOP) 22 JULY 2014
• Rev Social Malaysia Sdn Bhd (formerly as Says Sdn Bhd) Online Survey and Community Solutions
• Milenium Optima Sdn Bhd - Interactive Portal
• Nettium Sdn Bhd - Payment Gateway Integration
5
Smart Parking
(Smart City)
• MobilityONE Sdn Bhd - technology provider for the
SmartCard & Mobile Phone platforms
• Longbow Precision Sdn Bhd - Automated billing and
contact management solutions
• Convep Mobilogy - Mobile application – MyMall, AppAsia
and Security Apps
6
Smart Transportation
(Smart City) 10 NOV 2014
• Sena Traffic System Sdn Bhd - Traffic Information
• Pradotec Corporation Sdn Bhd - Automated Fare
Collection System
• Xybase MSC (M) Sdn Bhd - Security and Surveillance
20 JULY 2014
17 OCT 2014
51
information technology Cluster (infotech)
inDuStry AnD buSineSS
DeVelOPMent (ibD)
ACtiVitieS & eVentS 2014
BUSINESS MISSIONS
1
2
ASeAn FinAnCiAl inStitutiOn
COnFerenCe 2015
Four conferences were held in four cities:
Hanoi, Jakarta, Manila and Yangon
g2g MiSSiOn On eiD AnD ePASSPOrt
tO nAy Pyi tAW, MyAnMAr
i. Handing over of a proposal on eID to Mr. Maung Maung
Than, the Director General of Ministry of Immigration
and Population, Myanmar.
ii. Handing over of a proposal on ePassport to H.E. Brig.
General Kyaw Kyaw Htun, the Deputy Minister of Ministry
of Home Affairs, Myanmar.
3
internAtiOnAl buSineSS MAtCHing
(ibM)
Provided IBM assistance to selected MSC-status companies
INVESTMENT MISSIONS
1
2
lOnDOn, uniteD KingDOM “big DAtA”
exPO
Europe’s Big Data Expo is the biggest and the best attended
Big Data Conference, with 250 speakers from all over
Europe. There, MDeC’s investment mission promoted
Malaysia to ICT companies which were looking to base their
operations in ASEAN.
inVeStMent AnD PrOMOtiOn MiSSiOn
tO eurOPe - inVitAtiOn by MiDA
(uK AnD irelAnD)
7tH July 2014 – 17tH July 2014
This mission was led by MIDA Chairman, Tan Sri Amirsham
A Aziz together with other government agencies such as
MARA, Johor State, IRDA and Matrade. Working closely
with MIDA to attract investment from ICT companies in UK
and Ireland, MDeC leveraged the trade mission to create
awareness and dynamically promote Malaysia, and MSC
Malaysia, as the SEA ICT industry destination of choice.
MDeC ANNUAL REPORT 2014
ASEAN Financial Institution Conference 2014
in Vietnam
69.5M
RM
Worth of opportunities generated
12.8M
RM
Export deals generated
From left:
eID Proposal handover to
DG MOIP - G2G Mission to
Myanmar 2014
ePassport Proposal
Handover to Deputy
Minister of MOHA - G2G
Mission to Myanmar 2014
Matched 57 companies to 38 international channel partners
in Indonesia, Vietnam, Myanmar, Philippines, Thailand, Sri Lanka, Singapore, Turkey and Iran
Networked with more than
20 companies from industries
such as ICT, Outsourcing,
Telecommunication,
Aerospace, and Multimedia.
MIDA Chairman,
Tan Sri Amirsham
A Aziz together
with MIDA Deputy
CEO Datuk
Phang Ah Tong
at the Malaysia
Day Event coorganized by MIDA
and the London
Stock Exchange
From left:
Investment Promotion Mission to Europe
- MDeC delegates lead by Rafe Azsnal
from Infotech in discussion with EMC2
Sales Director, together with MIDA London
office representatives
Investment Promotion Mission to Europe
- A roundtable discussion between
MDeC, MIDA and ICT companies based in
Shannon, Ireland
53
information technology Cluster (infotech)
INDUSTRY COLLABORATION WITH RESEARCH BOARD
SUPPORT IN CONJUNCTION WITH PIKOM CIO CHAPTER 2014
MDeC in collaboration with Gartner Inc and PIKOM hosted this event to:
1
Create greater
awareness among
C-levels on the latest
from MSC Malaysia
to facilitate their
buying of solutions
and services from MSC
Status Companies.
2
Grow the mindshare
of MSC Malaysia
Companies’ solution
and services among
the CIO’s of the GLC’s,
MNC’s and LLC’s in
Malaysia.
3
Exchange information
and sharing
experiences in the
IT industry, while
building professional
networks.
Group Picture with the CIO’s or the Industry Experts, Infotech companies and MDeC representatives
DOMESTIC DEALS FOR
MSC COMPANIES
Assisted Datasonic Technologies Sdn Bhd to secure the supply
of 10 million MyKads with new security features (together
with 10 million consumables), to the National Registration
Department of Malaysia, for a two-year contract period.
MDeC ANNUAL REPORT 2014
Key happenings:
1 Industry expert attendees included :
• Mr. Charles KOH, founder and CEO of
Workflow,
• Mr. Chakib Abi-Saab, Chief Digital
officer of Bumi Armada,
• Dr. Kenneth Thean a venture capitalist
& anchor aesthetic physician in PPP
Laser Clinic chain,
• Mr. James Sua ,the Managing Director
of Ingenium Advisory, a Consulting and Venture
Capital enterprise and
• Mr. Kok, who has vast experience at Dell and Sun
Microsystems
2 Industry Roundtable: Partnering with CIO’s
“Collaborate to Grow Information Technology Economy
in Malaysia”. The workshop was divided into 4
tracks i.e. Banking and Financial Services, Retail,
Manufacturing and Healthcare, and covered the
following areas:
• Managing a product company and developing new
products
• Managing perception issues of the Malaysian Brand
• Creation of a center of excellence
• Managing consumer relations
• Talents & skill sets
3 The PIKOM CIO Chapter Forum at the Hilton Hotel,
Kuala Lumpur - Main guest speaker was Mr Todd
Schofield, Managing Director of SC Studios LLC at
Standard Chartered Bank San Francisco Bay Area, who
shared his experiences of being a CIO in the Silicon
Valley, in his presentation “Engaging with the Future
Through a Silicon Valley Outpost”
220.2M
RM
The Industry Roundtable: Partnering with CIO’s
“Collaborate to Grow Information Technology Economy
in Malaysia” Workshop
9 MSC Malaysia companies
attended a luncheon
meeting with Industry
Experts (CIOs)
1
2
3
4
5
6
7
8
9
FuSiOnex COrP SDn bHD
WAVelet SOlutiOnS SDn bHD
SeCureMetriC teCHnOlOgy SDn bHD
inFOPrO SOlutiOnS SDn bHD
S5 SySteMS SDn bHD
tentACle teCHnOlOgieS MSC SDn bHD
WillOWglen MSC bHD
triASet SDn bHD
xybASe MSC (M) SDn bHD
Contract value from period
1 July 2014 to 30 June 2016
55
Under the DM354 Strategic
Roadmap for implementation,
projects were implemented
for four pilot communities
– Digital Entrepreneurs, B40
(the 40% of communities
in the lowest bracket of
household income), DigitallySavvy Youth and Small and
Medium-sized Enterprises
(SMEs). Specific programmes
are already in the various
stages of implementation for
the target communities, and
achieving remarkable results.
MDeC ANNUAL REPORT 2014
57
DiGiTal
MalaySia
:KEY HIGHLIGHTS
Digital entrepreneurs
5tH internAtiOnAl
greenteCH & eCO PrODuCtS
exHibitiOn & COnFerentCe
MAlAySiA (igeM 2014)
T
his annual conference, held from 16 to 19 October
2014 at the KL Convention Centre, is a strategic
green platform for industry players to showcase their
latest innovations in creative Green Technology, ecoproducts, services and initiatives.
Aimed at boosting Green Technology adoption, the
conference underscored its importance as a key driver
in solving environmental and energy security issues,
while promoting sustainable economic growth.
MDeC showcased 5 solutions, and their providers, at IGEM 2014:
PixelByte Sdn Bhd
Reneon Technologies
SOlutiOn:
Park'in, a smart parking app that improves the
shopping experience by utilizing a mall's network of
parking sensors to ease the search for parking space.
SOlutiOn:
Energy-saving solutions, which range from
energy-auditing to complete energy-efficiency.
Archtron Research &
Development Sdn Bhd
Cytron Technologies
Sdn Bhd
SOlutiOn:
bluguard Smart Home technology system
which covers home automation, energy management,
and security systems.
SOlutiOn:
Robotic training kits and development boards for
university projects, robotic labs and competitions.
Basis Bay
Strong interest
was received for the
smart parking and
robotics solutions.
SOlutiOn:
Asia’s first- of- its- kind Green Data Centre in
Cyberjaya, now a patented design for operation
in tropical climates.
MDeC ANNUAL REPORT 2014
WORKSHOP ON ‘SMART
CITIES: FROM DREAMS TO
REALITY’
T
his workshop was held in conjunction with KL
Converge 2014 on 18 September 2014 at the KL
Convention Centre, providing interesting insights on
how to make cities more sustainable and digitallyconnected. Respected speakers from IDC, IBM and
Cisco presented their unique perspectives on the
subject, in a session that was aimed at providing
participants with practical steps and tips on:
• Policy/regulatory
considerations for Smart
City implementation
• Investment and
capabilities required
• Forward-planning strategy
& points
• Technological readiness
& return on investment
It was highly successful with attendance far
surpassing the initial target of 50 participants.
“DEVELOP A TRUSTED
MOBILE DIGITAL WALLET
SYSTEM” PILOT PROJECT
A
EON, the Japanese Consortium, demonstrated
their latest mobile wallet service system and
its distinct advantages to MDeC as it prepares to
build a similar system here in Malaysia. Held on
10 March 2014 at the AEON Big Putrajaya outlet,
AEON reported on the high success rate of its pilot
project, with 90% of AEON BiG users wanting to
continue using the e-money/payment facility.
CONFERENCE ON THE
‘INTERNET OF THINGS
(IOT): RESISTANCE IS
FUTILE’
T
his conference, held on 4 September 2014
at [email protected], Bangsar was aimed
at creating demand through collaboration, by
showcasing the current supply and demand for
IoT. The conference also facilitated businessto-business networking discussions among
delegates and technology-providers, as well as
major technology end- buyers. More than 200
delegates from various IoT industry players
attended the event, including MDeC’s “Digital
Malaysia: Grow the Embedded Systems Industry”
Project Technology Partners namely Intel,
National Instruments, Altera, Cisco and Wind
River.
“SMART MANUFACTURINGAUTOMATION FOR
PRODUCTIVITY
BREAKTHROUGH”
EVENT 2014
C
o-organised with FMM, this event was held
on 4th December 2014 at PJ Hilton, Petaling
Jaya. It provided an important platform for
the FMM community to learn from Embedded
Systems industry players about the latest
complementary automation technologies
in Smart Manufacturing to increase overall
productivity.
59
b40 Community
The Bottom 40 (B40) group comprises an estimated 11.7 million
or 40% of citizens in Malaysia that live within a household
income of below RM3,050 per month (Source: DOS survey, 2012).
In 2014, Digital Malaysia focused its efforts on helping this
underprivileged community attain a higher quality of life by
elevating their livelihoods through new digital-income and
employment avenues.
b40 inCOMe generAting
Online PlAtFOrMS
F
ocus was on creating awareness and facilitating access to B40 income-generating online platforms established
by government and local private entities.
PlAtFOrMS
SeCureD eMPlOyMent (b40S)
tOtAl inCOMe reSultS (2014)
22
RM
Edusource.mmsc.com.my
240
RM
YourPartTime.com
193
RM
12,046
RM
Mykerja.com.my
Ked.ai
Addeen.my
Maukerja.my
PERSONS
PERSONS
PERSONS
PERSONS
168K+
247K+
180K+
1.13M
200
NA
PERSONS
3,356
PERSONS
5M+
RM
International sites highlighted include Freelancer.com and LAZADA (Lazada Malaysia Affiliate Program).
MDeC ANNUAL REPORT 2014
b40 inCOMe generAting
PrOgrAMMeS
Pilot Program with
MDAB UiTM
AWAreneSS PrOgrAMMe On generAting
ADDitiOnAl inCOMe FOr b40S
An awareness programme involving UiTM students,
highlighting jobs available on the Micro Sourcing
platform.
Collaboration with the MyKasih Foundation,
a non-profit organization, to provide awareness
and skills training programmes to less fortunate
Malaysians.
20
20,000
brieFing OF DigitAl MAlAySiA &
MiCrO SOurCing At uitM MelAKA
MyKasih
students participated
families nationwide have benefited from
this programme. Its success has led to the
replication of this programme in Rawajati and
Manggarai, Jakarta Indonesia.
Programme with
Ministry of Women,
Family and Community
Development (KPWKM)
Digital Malaysia
Crowdsourcing
Initiative
An awareness and engagement programme on
additional income for single mothers.
60
participants were engaged
through this programme.
tHe internAtiOnAl DeMAnD generAtiOn
PrOgrAMMe
The design and implementation of a programme
to generate international demand for the Digital
Malaysia Micro Sourcing / Crowdsourcing Initiative.
international demand for Microtask is
being sourced and will eventually be
distributed through erezeki’s center
by Q2 2015.
61
b40 Community
"MyKASiH AWAreneSS
PrOgrAMMe" FACilitAting
SOCietAl uPliFt (FSu)
FSU is a public-private sector
collaboration to design and
implement social programmes
by using relevant ICT tools
and ICT-enabled mechanisms.
A well-stocked ICT database
system with information on
B40 community needs and
issues provide the right tools
for the Government, private
sector organisations, NGOs
and the local community to
create and deploy relevant
social programmes for the B40
community. It was piloted in
Pahang in 2012, Terengganu
and Perlis in 2013 and Perak
in 2014 using a platform called
POKOK (“Pembangunan oleh
Komuniti untuk Komuniti”).
Job Coach & Supported
Employment for Disabled
Community (Perlis)
Motivational, Sports Education
and Career in Sport Industry
Programme (Perlis)
BIMBING Programme for
English Language and
Mathematics (Perlis)
“Sawdust as Fuel” Programme
(Perlis)
IBM ICT Training Programme
Leadership Training
Programme (Perlis)
MDeC ANNUAL REPORT 2014
Year 2014 results are encouraging, as follows:
169,516 67,749
No. of B40 profiled
No. of B40 engaged
Enabling OKUs to find jobs using a
Job coach service, via the Instruction
Systematic method provided by
the World Association of Supported
Employment (WASE).
A series of dialogues exposing
secondary school students to career
opportunities in sports.
An academic guidance program
focusing primarily on Mathematics and
English for primary school students.
A co-operative programme between
private companies and villages.
Villagers supply sawdust to industries
for fuel, in turn generating additional
income.
559
No. of B40
enabled income
270
No. of B40 enabled
societal well-being
4 job coaches established, and
24 OKUs matched to jobs
3 secondary schools, reaching
900 students
3 Bimbing centres established,
reaching 180 primary school
students
Income generating opportunities
for 25 villages, with total annual
income of RM972K
A training programme promoting the use
of ICT in society by students, covering
modules such as Reading Companion,
Mobile App Programming and others.
Conducted by IBM staff and volunteers.
Reading Companion modules involved
120 students from 3 Bimbing centres.
Mobile App Programming involved 15
Form 4 & 5 students.
A leadership training programme for
community leaders.
Trained 150 community leaders from
5 Dewan Undangan Negeri (DUN).
63
b40 Community
OtHer HigHligHtS AnD
eVentS 2014
eWaqf Jamaie &
Program Digital Pondok
COllAbOrAtiOn WitH yAyASAn PeMbAngunAn
POnDOK MAlAySiA (yPPM) AnD PitCHin FOr
SOCiAl CrOWD-FunDing.
BN Youth Job Fair
MDeC’S PArtiCiPAtiOn
Train-of-Trainer (ToT)
Programme for
Digital Malaysia B40
Undergraduates
Program Jana Pendapatan
Tambahan Secara Digital @
Mini RTC
CO-OrgAniSeD by tHe MiniStry OF rurAl
AnD regiOnAl DeVelOPMent (KKlW)
A programme encouraging ‘sekolah pondoks’ to
embrace new digital technology with the assistance
of public funding.
Creating awareness on Digital Malaysia programs
and on the opportunity to earn income via digital
means through Crowdsourcing/Microsourcing.
Equipping Digital Malaysia B40 Undergraduates
(MPDMB40) with the required information to help
them engage their peers on opportunities available
in microsourcing and crowdsourcing.
A series of Mini-DM Carnivals at 9 selected Mini RTC
facilities throughout Peninsular Malaysia. Digital
Income Opportunities Programmes were held for 2
days to engage rural B40s on Crowdsourcing-related
activities.
MDeC ANNUAL REPORT 2014
eWaqf Jamaie & Program Digital Pondok –
launched by YP PM Datuk Seri Najib Tun Razak
on 14 July 2014
“Train-of-Trainer (ToT)” Programme for
Digital Malaysia B40 Undergraduates
Held on 23-25 May 2014 in Putrajaya
3 sessions held:
• 10 May 2014 in i-City Shah Alam
• 23 - 25 June 2014 at Universiti Putera Malaysia (UPM)
• 26 - 28 September 2014 at Institut Aminuddin Baki,
Genting
324 B40s profiled and
engaged at Mini RTC:
•
•
•
•
•
•
Sg. Itau, Langkawi, Kedah
Shafie, Bentong, Pahang
Jelawang, Kuala Krai, Kelantan
Kg Batu 3, Temoh, Perak
Gagu, Jelebu, Negeri Sembilan
Felcra Bukit Sedanan, Selandar, Melaka
Program Jana Pendapatan Tambahan
Secara Digital @ Mini RTC
65
Digitally-Savvy youth
enHAnCing tHe
DigitAl literACy OF
MAlAySiAn yOutH
D
igital Malaysia Youth held several training programmes aimed at
empowering youths with technology, business and life skills. Through
these programmes, 22,894 students from schools, colleges and universities
were exposed to various digital skills training.
My Youth Spark
a Partnership with giAtMArA
My Back Pack
Digital literacy Skills training
for youths
5
156
‘Train-the-Trainer’
sessions
senior MARA
lecturers attended
the program to
become Master
Trainers
The programme used Microsoft
Office 365 in the process of
teaching and learning. Students
also participated in the “My Back
Pack” competition where they
integrated learning using MS Office
365, directly enhancing higherorder skills such as problem-solving,
critical-thinking and creativity.
18,932
GIATMARA participants were
impacted by the program, and
the Master Trainers will continue
to conduct training at GIATMARA
centres nationwide
3,962
school students
from Johor attended.
SMK Bandar Uda and Sekolah Tun
Fatimah won the prize for Best
School (Overall Category). Ros
Ameera binti Rosdi from Sekolah
Tun Fatimah won the first place
for the “Microsoft Office 365
Ready for Learning” category
while Abang Noor Afiq bin Abang
Noor Akbar from SMK Bandar Baru
Uda won for the “My Dream Site”
category.
MDeC ANNUAL REPORT 2014
The collaboration between GIATMARA Malaysia
and Digital Malaysia of MDeC will enhance and
impact 2,000 of our trainers at 243 GIATMARA
centres across Malaysia, which offer various
vocational and technical related courses.
This collaboration will empower our trainers to
gain technology, business and life skills so they
can be agents of change in their communities.”
CEO of GIATMARA, Datuk Mohd Rosdi Ismail
COO of MDEC and CEO of
GIATMARA exchanging tokens
of appreciation
COO of MDEC and CEO of GIATMARA with the signed MoU
From left: Sumitra Nair (Director of Youth Community & Initiative Cluster, MDEC),
Ng Wan Peng (COO of MDEC), Datuk Mohd Rosdi Ismail (CEO of GIATMARA), and
Nur Shaziella Aziz (Staff Training Unit of GIATMARA)
Datuk Mohd Rosdi and team from GIATMARA
signing the MoU
GIATMARA trainers at a My Youth Spark ‘Train-the Trainer’ session at
Kelab Komuniti Tasik Cyberjaya
67
Digitally-Savvy youth
engAging yOutH WitH
CreAtiVity & innOVAtiOn
tHrOugH DigitAl SKillS
INSPIRING LINKAGES @ MERDEKA 2014
I
n 2014, MdeC and the Malaysian
Association of Creativity and
Innovation (MACRI) collaborated
to organise the Inspiring Linkages
@ Merdeka competition.
Celebrating the Merdeka month,
the competition was aimed at
engaging the younger generation
to use digital technologies as
a means to capture traditional
values of cultural heritage, family
togetherness and solidarity. The
target audience were youth with
interest in creativity, innovation
development and the latest digital
technologies. A total of 1,332
students from all over Malaysia
were taught digital video-making
skills and were positively impacted
through the Inspiring Linkages
program.
The Linkages
Programme has
given me the
exposure on how
to edit movies
easily, and I have
been very lucky
to be selected as
the ambassador of
a teenager
Linkages. Iskandar,
under the guidance
of Yayasan Chow Kit
During the entry submission period
of 1 July 2014 to 31 August 2014,
more than 500 video submissions
were received from students across
Malaysia. At the final judging
session during KL Converge 2014,
a total of twenty (20) groups of
students from across Malaysia
pitched and presented their videos
to the panel of judges. Videos that
made it to the finals were judged
by industry experts such as Nizal
Muhammad (Ex-Media Prima), Dr.
Yahya Ahmad (KRU Academy),
Mohan K (IP Consultant) and Vernon
Fernandez (CMC, MDeC).
The highpoint of Inspiring Linkages
@ Merdeka was when the top five
winners were feted during the
KL Converge Gala Dinner. At the
event, the winners received their
winning trophies and certificates
from the Honorable Minister of
Communication and Multimedia,
Datuk Seri Ahmad Shabery Cheek,
and the CEO of MDeC, Datuk
Yasmin Mahmood. The ‘Most
Inspiring Linkage’ award went
to John Dan Adrian, a 16 yearold from Sekolah Menengah St
Joseph Kuching, Sarawak for his
winning video entitled ‘Bidayuh
Kampung Lifestyle’. He walked
away with a cash prize of RM5,000.
The remaining four winners each
received a cash prize of RM3,000.
MDeC ANNUAL REPORT 2014
enCOurAging yOutH tO be
reSPOnSible Online uSerS
W
ith a firm eye on online ethics, Digital Malaysia Youth organized several programmess to raise awareness on
the benefits, risks and dangers associated with the Internet world.
Cyber Ethics
& E-Manners
Cyber Wellness
Educating students on cyber-ethics,
the programme raised awareness
on the dangers of gaming-addiction,
cyber-bullying, pornography and
social media abuse.
Training aimed at creating a
positive internet culture amongst
youth by transforming it into a
tool for empowerment, education
and literacy.
programme for schools,
colleges and universities
online safety for
marginalized urban youth
3,252 2,954
students in Malaysia reached
CyberSAFE
in Schools
students from schools and higher
education institutions reached
Training focused on Personal
Safety and Abuse Prevention,
creating a bridge between
online and offline safety and
empowering children to protect
themselves through information,
skills, and self-esteem.
150
students from six (6)
People Housing Projects (PPR)
situated across the Klang Valley
reached
I used to play a lot of computer games.
After attending the Cyber Wellness
programme, I now understand the bad
effects of technology and how to handle
computers and technology in a healthy,
Dinesh, a participant of the
and more balanced way. K.“Cyber
Wellness” programme
69
Digitally-Savvy youth
A “DigitAl” tWiSt tO
VOlunteeriSM
teach Digital
D
igital Volunteerism provides platforms that
connect volunteers to social causes, allowing
them to volunteer at their own convenience via
the use of digital tools. In this regard, Digital
Malaysia is driving digital volunteerism to provide
opportunities for digitally-savvy youths to channel
their competencies towards social causes and at the
same time, strengthen their soft skills.
Focus has been on digital volunteerism in three key
areas –
1
2
3
upskilling of underserved
children in digital safety,
ethics and e-commerce;
supporting NGOs with
their IT enablement; and
raising awareness on
various social causes via
social media.
In 2014, Digital Malaysia Youth partnered with various
parties to promote digital volunteerism amongst
youth in Malaysia, starting with the Klang Valley and
Kelantan. These have successfully engaged more than
700 youth digital volunteers, helping over 300 NGOs
collectively to serve more than 60,000 underserved
individuals in our community.
a partnership with 1Malaysia for youth (iM4u)
Upskilling programme in digital competencies
for underserved youth communities.
199 student volunteers were trained, with
positive impact on five (5) rural youth
communities in Kelantan.
+
Do Something good
(DSg)
a partnership with tandemic
Campaign to build a strong volunteering
community in Malaysia.
Recruited 502 digital volunteers, who positively
impacted 38 NGOs serving 58,249 people
+
SOlS tech
partnership with the Science of life Studies
24/7 Malaysia (SOlS 24/7)
A platform allowing volunteers to assist NGOs in
increasing technology usage to streamline their
operations.
236 digital ambassadors and 306 workshop
facilitators were trained and deployed.
700+ 300+ 60,000
youth digital volunteers, helping
NGOs to serve more than
underserved individuals in our community
MDeC ANNUAL REPORT 2014
On-DeMAnD CuStOMiSeD
Online eDuCAtiOn (ODCOe)
E-lifelong learning aims
to create a generation
of digitally-savvy youth,
and change the learning
landscape in Malaysia.
It also promotes inclusive
education for the entire
community, which includes
the elderly and individuals
with special needs.
Ultimately, these efforts
will increase the supply of
skilled talent in the market,
thereby boosting human
capital development in
Malaysia.
M
aximising the use of ICT for distance and self-paced
learning, Digital Malaysia has partnered with nine (9)
companies to help students and professionals enrol, access
rich media content, and take examinations for professional
certifications from different institutions, based on their
lifestyle and budget.
These partnerships offer e-lifelong learning programmes
and solutions to address the shortage of resources, and the
lack of a one-stop online learning portal for degree and
non-degree programmes in Malaysia.
The 9 partnered companies are:
1 Celex a portal that provides access to 2,500
book titles & 70 magazine titles. In 2014, a total of 313
e-Learning courses were purchased for the e-lifelong
learning programs.
2 MyMobile university
a one-stop center for academic and lifestyle learning
with crowdsourced content
3
4
5
6
7
8
9
uniCliQ
edunation
brainbytes
elC learning
edu (K) Ate
genashtim
Samsung
71
Small & Medium-sized enterprises
lAunCH OF tHe DigitAl
MAlAySiA etrADe PrOJeCt
YB Minister (white shirt)
on his arrival with his
entourage of high-powered
escort motorbikes
T
he Digital Malaysia eTRADE
project was launched in style
by YB Dato’ Sri Mustapa Mohamed,
the Minister of International Trade
and Industry (MITI), at the Young
Exporters Forum 2014 on 18 June
2014, at the MATRADE Exhibition
and Convention Centre.
The eTRADE project is a Digital Malaysia initiative with partners
MATRADE and SME Corp, aimed at accelerating exports by SMEs through
their adoption of e-commerce to participate in international leading
e-marketplaces. Benefits include:
• An RM1,000 e-voucher for listing
qualified export-ready SMEs at a
selected e-marketplace
• Customized training on e-commerce
for SMEs of any size to expand their
business online
By 2020, this initiative is expected to enable the participation of 25,000
SMEs, with 2,600 achieved in year 2014 itself.
With the theme ‘Youth in Trade: Making a Difference’, the forum was
a platform for young entrepreneurs to meet, exchange ideas and gain
insights into the experience of Malaysian youth who have achieved global
success. Participants were also briefed on the development programme and
assistance provided by Government agencies and the private sector to start
new businesses and to adopt technology.
YB Minister addressing the crowd at the
Young Exporters Forum 2014
MDeC ANNUAL REPORT 2014
From left to right: YBhg. Datuk Badlisham Ghazali - CEO of MDeC, YBhg. Datuk Dr. Wong Lai Sum - CEO of MATRADE,
YBhg. Datuk Dr. Rebecca Sta Maria - Secretary General of MITI, YB Dato’ Sri Mustapa Mohamed - Minister of International
Trade and Industry, YB Datuk Ir. Haji Hamim Samuri - Deputy Minister of MITI and YB Datuk Noraini Ahmad - MATRADE
Chairperson on stage for the eTRADE launch
Top: eTRADE Video
Presentation during the
launch depicting the
eTRADE Logo
Right: eTRADE aims to
bring Malaysian exporters
to new markets
73
Small & Medium-sized enterprises
#MyCyberSAle:
MAlAySiA’S biggeSt Online
SAle iS A reSOunDing SuCCeSS
#MYCYBERSALE, THE WORLD’S FIRST GOVERNMENT-LED
SALE EVENT DRIVEN BY MDEC VIA THE DIGITAL MALAYSIA
INITIATIVE, RAN FOR 3 DAYS FROM 29 SEPTEMBER TO
1 OCTOBER 2014.
From Left to Right: Mr. Vijay Manoharan (Head of Consumer Business Development of CIMB Bank), Mr. Heng Beng Fatt (Deputy General Manager
of GSC), Mr. Ahmad Najmi Bin Mahfodz (COO of Poslaju), Dato’ Yasmin Mahmood, YBhg Tan Sri Abdul Halim Ali, Cik. Norfuziana Ahmed
(General Manager of Sales – Astro Radio), Ms. Ng Wan Peng, En. Khaidhir Elias, Vice President of SME Sales,Telekom Malaysia Bhd and Mr. Wind Koh
(Head of LINE Malaysia)
W
ith the Malaysian e-commerce industry
expected to grow to RM72.3 billion by 2015, the
#MYCyberSALE has succeeded in generating demand
amongst consumers in online shopping. It has also
served well in encouraging local small to midsize
enterprises (SMEs) to enter our thriving e-commerce
ecosystem, as we look to increase domestic
e-commerce revenue and make Malaysia one of the
world’s biggest net exporters.
#MYCyberSALE was promoted by its premium partners
Astro Radio, CIMB, Golden Screen Cinemas (GSC), LINE,
Pos Malaysia and Telekom Malaysia (TM), and supported
by PIKOM and the E-commerce Association of Malaysia.
The online sale was also endorsed and governed by the
Ministry and regulators such as the Ministry of Domestic
Trade, Cooperative and Consumerism (MDTCC), the
Malaysian Communications and Multimedia Commission
(MCMC), SME Corp and CyberSecurity Malaysia.
MDeC ANNUAL REPORT 2014
4.7M
4.7 million, about 16% of the
Malaysian population were
catered by online merchants,
achieving a 6% conversion rate
57% of the website visits
57%
were through mobile phones.
According to eCommerce MILO,
Malaysia’s mobile penetration has
risen to 51%, where one in
every two Malaysian adults owns a
smartphone
%
222
#
Targeted
Achieved
Online traffic increased
50M
RM
67M
RM
Total of RM67,385,595 in sales (vs targeted
RM50 million sales)
Rafiq (General Manager, Groupon Malaysia)
shared their experience during the #MYCyberSALE
Appreciation Ceremony
#MYCyberSALE Lucky Draw Winners during the
#MYCyberSALE Appreciation Ceremony
#MYCyberSALE
Premium E-Tailers
during the Partner
Appreciation and
Media Briefing
Session on 15th
September 2014
75
Small & Medium-sized enterprises
I
n 2014, an Internet and e-Business adoption survey
commissioned by MDeC discovered the following:
• SMEs constitute 99.2%
of total business
establishments in the
country.
• 65% of SMEs surveyed did
not use the Internet for
e-business
• 68% of them did not own a
website
• Overall, SMEs recognised
the need to have a web
presence but were deterred
by the high cost of setting
up a website for their
business.
In response to this, the “eCommerce Reward
Programme” was launched by Digital Malaysia to reward
SMEs with a proven track record of adopting and using
e-Commerce to increase their business productivity,
and spur the use of e-commerce amongst Malaysian
SMEs.
Supported by Telekom Malaysia (TM), MYNIC and
easyparcel.my, rewards were offered to the top 25
Digital Malaysia SME e-commerce success stories, with
prizes worth up to RM175,000 (US$54,630).
Running from 12 June to 12 September 2014,
participating SMEs were required to subscribe to any of
the 3 e-commerce platforms, i.e Lelong.my, Easy.my &
MYNIC. These SMEs were then trained to set-up their
online stores, and coached on driving traffic there and
converting leads to sales.
The selected SMEs were judged on business
productivity, quality of life and other related elements
by a panel of judges from various government agencies
such as KPDNKK, Cyber Security Malaysia, SKMM,
SMECorp & MDeC.
The 25 Top Digital Malaysia SME success stories came
from a variety of industries, such as fashion & apparels,
baby products, logistics and services. Notably, some of
these successful entrepreneurs were housewives and
fresh graduates.
Carol Fung interviewing an eCommerce Reward Program Participant
1st Prize winners for the eCommerce Reward Program,
together with Ms Ng Wan Peng, COO of MDeC and
Wee Huay Neo, Director of SME C&I Cluster and
Nurezali Osman, Head of Strategy and Planning SME C&I Cluster
KEy
ENaBlERS
:KEY HIGHLIGHTS
talent Development
Key reSultS, ACHieVeMentS
AnD MileStOneS
MDeC remains committed to developing Malaysia’s ICT workforce,
with Talent Development playing a vital role in enabling MSC
Malaysia. Towards this end, we continue facilitating collaboration
across industry, academia and government to increase the talent
pool in the ICT industry, creating relationships with partners in
the ecosystem to develop a knowledge-driven economy.
These programmes and initiatives include:
1 MIT Global Start-up Labs (GSL)
• The MIT GSL Malaysia was successfully organised by MDeC
and the Entrepreneurship Unit, Ministry of Education Malaysia
(MOE), and hosted by Universiti Kebangsaan Malaysia (UKM).
• 35 students from 15 IHLs took
part in the 6-week training
(30 June – 15 August 2014)
• MIT GSL is a multidisciplinary group of the Massachusetts
Institute of Technology (MIT) that promotes development in
emerging regions by cultivating young technology entrepreneurs.
• resulted in 5 projects and a
potential startup from the
RunningBus project, a mobile
application that reduces
students’ waiting time for
campus buses by notifying
them when a bus is about to
reach the bus stop.
• Complete curriculum materials, software technologies,
platforms, and networks have been developed to enable
undergraduate students to innovate in the area of ICT.
• Focused on mobile and Internet technologies, it is structured
to unearth commercial possibilities.
MIT GSL Malaysia is the most vibrant entrepreneurship
training programme I have ever joined. We plan to continue
our efforts after the MIT GSL Program and launch the beta
test in University of Malaya. UKM and KDU have shown
Yeap Chun Sheng (Team: RunningBus)
interest in runningbus. Johnson
Bachelor of Computer Science (Software Engineering), Universiti Malaya (UM)
MDeC ANNUAL REPORT 2014
21,293 95.7%
High knowledge workers
in the industry trained
Talent employability achieved, showcasing
the depth, breath and quality of talent
produced under these programmes
of Higher Learning (IHL) –
2 Institute
MSC Start up Challenge (I-MSC)
• MDeC held the 11th edition of I-MSC, supported by relevant
youth entrepreneurship agencies and industry players such as
IM4U, 1337 Hub, MAD Incubator and Alpha Catalyst Consulting.
• MDeC helms the competition as secretariat, supported by
competition coordinators from participating universities,
colleges and polytechnics.
• Primarily targets diploma, undergraduate, and postgraduate
students, while encouraging academicians to be team
advisors.
Covering the 4 areas :
1
2
3
4
Internet of Things
Mobile Applications
Software & Hardware
Creative Multimedia
The programme aims to:
• Emphasize the importance of entrepreneurial skill
• Develop idea-generation, innovative-thinking, problemsolving and business-pitching skills
• Identify commercially viable ideas with IP potential for
development into iCt SMes
• Grow a sustainable Entrepreneurship skill development
eco-system
40.2%
of overall ICT industry
requirements filled
3 UniAlliance
An academician upskilling programme
with various IHLs, also offering
supplementary courses and certification
for undergraduates. Key focus areas
include the Google Web Academy, iOS
and SAP technologies.
1,264
Number of lecturers trained
throughout 2014
4 MyProcert SRI
A professional certification programme
to advance careers in ICT-based roles.
3,967
MyProCert applications approved –
meeting 90% of skill sets required
with in-demand certifications.
79
talent Development
Year 2014 marked important milestones in Talent Development
initiatives.
A new
MSC Malaysia
Knowledge
Workers
Development
Centre (KDC)
in Cyberjaya
A new SteM
exploration
Centre
in Cyberjaya
at the
Knowledge
Workers
Development
Centre (KDC)
builDing SCienCe,
teCHnOlOgy, engineering
AnD teCHnOlOgy (SteM)
intereSt in StuDentS
ViA tHe nAtiOnWiDe
“iCt CAreer OF CHOiCe”
CAMPAign (iCt COC)
A new, modern facility which offers
• upgraded and expanded features
• the requisite training amenities such as laboratories and new equipment
• customizable learning experiences and training programmes in
embedded systems, telecommunication, networking, creative
multimedia, and shared services and outsourcing (SSO) through
partnerships with major iCt industry players.
• A centralized training location for various MDeC programs.
these include
• Professional Development through
MyProCert
• train-the-trainer through MDeC’s
Industry-Academia collaboration
• Finishing Schools Training, competitions
and many more hosted by MDeC
The STEM Exploration Centre is the nucleus of the ICT CoC, where
programmes and activities are planned and tested before outreach
roll out.
• Allows formulation of a structured and sustainable long-term
programme with active participation from industry and technology
partners
• Current partners include IBM, Freescale, Keysight Technologies,
Oracle and Microsoft.
• Since 2008, the ICT CoC’s nationwide outreach programmes have
received strong support from various stakeholders, namely industry,
government, and academia. Programmes incude :
•
•
•
•
SAINS on Wheels
Career Talks
Career Camps
School Counsellor Workshops
MDeC ANNUAL REPORT 2014
The KDC Open Day, officiated by YBhg Tan Sri Dr. Mohd Irwan Serigar
Abdullah, Secretary General, Ministry of Finance.
Knowledge Sharing Session
MSC Malaysia Accelerator Lite 2 workshop
Pitching Session by IHLs
1000+
students trained through
school visits, weekends and
school holiday classes
6,000+
The launch of STEM Exploration Centre in the Knowledge Workers Development Centre in
Cyberjaya by YB Dato’ Sri Ahmad Shabery Cheek, Minister KKMM on 16 October 2014
rural students benefitted
through the ICT CoC outreach
400
undergraduates involved as
facilitators/volunteers from seven
(7) universities from nine (9) states:
Perlis, Kelantan, Terengganu,
Negeri Sembilan, Kedah, Johor,
Melaka, Selangor and Sarawak
With YAB Dato’ Seri Mukhriz bin Tun Dr
Mahathir, Menteri Besar Kedah at SilTerra
HQ during the closing ceremony of SAINS
on Wheels for Kedah – Perlis Edition on 13
November 2015
Hands-on learning experience for
students in a 3-hour workshop on
embedded system (Arduino), animation,
coding, 3D printing and robotics.
81
MSC Malaysia Cybercities & Cybercentres
CreAting COnDuCiVe buSineSS
lOCAtiOnS WitH COMPetitiVe
WOrlD-ClASS inFOrMAtiOn
teCHnOlOgy inFrAStruCture
T
he MSC Malaysia ‘Cybercities and Cybercentres’ is an on-going initiative designed to provide world-class physical
and information technology infrastructure, as well as necessary support and access to funding, for MSC
Malaysia-status companies.
By 31st December 2014, there were 39 MSC Malaysia Cybercities and/ or Cybercentres nationwide, with eight new
Cybercentres approved in 2014 covering a total office space of 2.48 million square feet, namely:
1
UOA Damansara,
Kuala Lumpur
2
Cap Square Tower,
Kuala Lumpur
3
Sunway Resort City,
Petaling Jaya
4
Damansara Uptown,
Petaling Jaya
5
One City,
Subang
6
iHubSentulPark,
Kuala Lumpur
7
Linde ROC,
Shah Alam
8
Menara LGB,
Kuala Lumpur
MDeC ANNUAL REPORT 2014
In addition to the above, 9 new MSC Malaysia-designated premises were approved in existing Cybercities and
Cybercentres namely:
1
2
3
4
5
6
7
8
9
INTEGRA TOWER @ The Intermark
MENARA NU @ KL Sentral
MENARA SHELL @ KL Sentral
PLAZA 33 @ Jaya 33
TOWER 5 @ Puchong Financial Corporate Centre
TOWER 4 @ Puchong Financial Corporate Centre
THE HORIZON ANNExE, AVENUE 7 @ Bangsar South City
TOWER 8, AVENUE 5, THE HORIZON @ Bangsar South City
BIO-x CENTRE @ Cyberjaya
5.55M sq. ft.
777,000 sq. ft.
757,941 sq. ft.
531,692 sq. ft.
280,000 sq. ft.
241,647 sq. ft.
221,469 sq. ft.
109,500 sq. ft.
86,257 sq. ft.
46,037 sq. ft.
Total MSC Malaysia office space approved in 2014
9 APRIL 2014:
NETWORKING SESSION WITH MSC MALAYSIA STATUS COMPANIES
IN MSC MALAYSIA CYBERCENTRE @UOA DAMANSARA
U
pon receiving MSC Malaysia
Cybercentre status, UOA
Damansara organized a networking
session with MSC Malaysia- status
companies and ICT companies
located in UOA Damansara. Held at
the O’Briens outlet in Wisma UOA
Damansara II, it was attended by
representatives from 7 MSC Malaysia
status companies, 3 ICT companies
as well as representatives from
MDeC and UOA Asset Management.
Also included was a brief ‘handover
ceremony’ of the symbolic MSC
Malaysia Cybercentre scroll by MDeC
CEO, YBhg. Datuk Badlisham, to the
CEO of UOA Asset Management.
83
MSC Malaysia Cybercities & Cybercentres
5 JUNE 2014:
LAUNCH OF MENARA WORLDWIDE
W
orldwide Holdings Berhad (WHB), the whollyowned subsidiary of PKNS, and parent company
of Central Holdings Berhad, held an official launch
event for Menara Worldwide on 5 June 2014, which also
celebrated its MSC Malaysia Cybercentre status.
The event was graced by His Majesty DYMM Sultan
Selangor, Menteri Besar of Selangor and YB. Deputy
Minister KKMM. DYMM Sultan Selangor officially
launched Menara Worldwide through the act of signing
a plaque. This was followed by the handover of the
(symbolic) MSC Malaysia Cybercentre scroll by YB.
Deputy Minister KKMM and YBhg. Datuk Badlisham
to the Chairman of Worldwide Holdings Berhad, as
witnessed by DYMM Sultan Selangor, MB Selangor and
other VVIPs.
MDeC ANNUAL REPORT 2014
6 NOVEMBER 2014:
UNVEILING OF E-APPLICATION
BY CAP SQUARE TOWER
O
n 6 November 2014, Cap Square Tower unveiled
its CST e-App (Cap Square Tower e-application).
Developed for both IOS and Android platforms, the app
serves as a communication tool to enhance customer
service connectivity between tenants, landlord,
property managers, visitors and potential tenants.
Ms. Ng Wan Peng, COO of MDeC delivered a speech,
which was followed by the unveiling of the CST
e-application.
16 DECEMBER 2014:
OPENING CEREMONY OF
LINDE ROC – REGIONAL
REMOTE OPERATING
CENTRE FOR SOUTH AND
EAST ASIA REGION FOR
THE LINDE GROUP
F
ollowing the approval for MSC Malaysia
Cybercentre status of Linde ROC, Linde Malaysia
Holdings Berhad organized an opening ceremony
for the Linde ROC on 16 December 2014. The event
was attended and officiated by the Minister of
International Trade and Industry, YBhg. Dato’ Sri
Mustapa Mohamed. Other VVIP guests who attended
the event include representatives from MDeC,
InvestKL, Selangor State Investment Center as well
as Majlis Bandaraya Shah Alam.
85
innovation Capital
innOVAtiOn CAPitAl –
MSC MAlAySiA FunDing
MSC Malaysia
Innotech™ 2014
Premier investment-raising
platform pioneered and driven
by MDeC since 2008
Secured deals worth
RM
398.5M
(cumulative)
Successfully funded
companies
117
from 2008 until 2014
This platform matches technology-based companies with potential
local and regional equity funders for growth and market expansion.
In recognition, MDeC was once again awarded the “Supportive
industry Partners 2014” by the Malaysian Venture Capital and
Private equity Association (MVCA) for its role in facilitating funding
with funders & companies for
1 Quality and investable deal flow
2 Attracting foreign VCs
3 Promoting syndication by local
and foreign VCs
MSC Malaysia Innotech was by far
the best startup event I’ve attended
in the region. Charles Kathreins, Kathrein Ventures-Singapore/Thailand
SC Synergy &
Crowdfunding
Forum (“SCxSC”)
2014
The first equity crowdfunding
forum in Malaysia organized by the
Securities Commission Malaysia (SC)
with MDeC as a strategic partner,
alongside
• The Edge Malaysia
• Cradle Fund
• pitchIN
• Crowdonomic
• StartupMalaysia.org.is
The Forum was aimed at creating public awareness on the potential
of equity crowdfunding as an alternative channel for raising capital
MDeC ANNUAL REPORT 2014
MDeC facilitates funding to companies and supports ICT
startups and entrepreneurs by providing access to a
cohesive network of incubators, accelerators and funders.
These include:
171M
#83%
RM
facilitated for 26 companies (ICD)
in total funds, including foreign funds,
with new listings:
The MSC Malaysia Innotech 2014
• MAVCAP Straits Fund i with elixir Capital
Management, uS at est. RM493.9M
• MAVCAP & 500 Durian at est. RM15.9mil
• Co-investment - Cradle Fund & golden
gate Ventures at RM5mil
• Co-investment - Cradle Fund Sdn bhd with
Fatfish Ventures Sdn Bhd, OSK Ventures
international bhd, Coent Venture Partners
Pte ltd and Crystal Horse investments
Pte ltd at RM23mil
the Securities Commission Malaysia
(SC) released its public feedback
(which includes MDeC’s), on the
proposed equity crowdfunding (eCF)
framework to be tabled at Parliament
in 2015.
Forum Speakers and panelists with
Chairman of Securities Commission
Malaysia, YBhg. Datuk Ranjit Ajit Singh
and Deputy Chief Executive,
Dr. Nik Ramlah Mahmood
As part of this innovative
ecosystem, the SC will
provide a regulatory
framework that ensures
an orderly market with
adequate oversight to
facilitate small businesses
to raise equity capital.
Quoted from Special Address by Datuk Ranjit Ajit Singh
Chairman, Securities Commission Malaysia
for Securities Commission Synergy and Crowdfunding Forum
(SCxSC) on the 19th Sept 2014
87
innovation Capital
PCF 2014 was focused on assisting MSC Malaysia-Status Companies
Product
the development and commercialisation of innovative
Development and accelerate
market-driven products, solutions and services in 3 technology areas
Commercialisation based on global potential market demand:
1 Security 2 E-Commerce 3 Big Data
Fund (PCF) 2014
A PCF 2014 awareness campaign with 2 briefing sessions, was held:
1
27 February 2014 at Kelab Komuniti, Taman Tasik Cyberjaya.
Domain experts from PwC Malaysia, Cybersecurity and MacroFirm
Technology spoke on key security topics, including ‘Global IT
Security Forecast’, ‘Trust Rating for the Independent Online Seller’
and ‘Fraud Detection through User Online Behavior Patterns’
2
15 April 2014 at Satyam Auditorium, Berjaya, to share
E-commerce insights from both industry and academic experts.
Relevant topics such as ‘Latest IT Innovations and Business
Opportunities’ and ‘Building a Successful E-Commerce Strategy with
Engaging User Experience’ were presented by speakers from Lazada
Malaysia and Multimedia University.
SEED-MSC Malaysia
Global Linkages
Programme
linking Malaysian Startups to the
Silicon Valley ecosystem
MDeC assists Malaysian startups and entrepreneurs find market
validation on a global scale through this programme. It accelerates
high-growth startups by linking them to the regional and global
ecosystem - in this case to the Silicon Valley. Selected startups
focus on validating their venture through high-touch mentorship
and coaching. Participants are immersed in the Valley’s culture,
and provided networking opportunities with local subject matter
experts, mentors, investors, global tech companies and other
entrepreneurs - a move which MDeC believes will increase the
prevalence and success of Malaysian startups.
The first eight startups were sent to the Silicon Valley where they
received startup mentorship from global accelerators who shared
valuable input on making global impact.
Activities included:
• participation in technology workshops with global tech giants
Amazon, Facebook, google and Salesforce
• networking with the local ecosystem players, including other
startups, funders and corporate personnel
• ‘demo and pitch’ sessions with funders, in order to gain
feedback and improvement tips on their products
MDeC ANNUAL REPORT 2014
MDeC approved
1 two projects under Security
2 four projects under e-Commerce
3 six projects under big Data
8M
RM
awarded to successful companies
150
participants attended
133
participants attended
PCF 2014 Briefing and call for applications session
• in Malaysia, returning
participants held roadshows
and awareness talks to
share their Silicon Valley
experiences with other
Malaysian startups
• Currently, programme
participants are enhancing
their products to
incorporate the inputs
received from their global
mentors
• Some participants have
received investment/
partnership interest in their
products
The pioneer batch of
SEED - MSC Malaysia Global
Linkages Programme
(Silicon Valley)
89
innovation Capital
MDeC’S FirSt nAtiOnAl
big APP CHAllenge 1.0V
(SEPTEMBER – NOVEMBER 2014)
MDeC organised the nation’s
first Big App Challenge in
collaboration with Tentspark,
a leading IT consultancy and
solutions provider. Focused
on Big Data Analytics (BDA),
the competition was themed
‘Applications that can benefit
the Rakyat’, and saw positive
registration of 226 teams,
start-ups and companies.
Teams were given open data
from the Ministry of Health
(MOH) and the Meteorological
Department (MET) to develop
their ideas and create
applications utilising BDA.
T
he top three winners were awarded at the
‘Harnessing Insights From Open Data with Big Data
Analytics’ conference held on 15 December 2014 at the
Le Meridian Hotel, Kuala Lumpur.
Champion: RM20K
Multimedia University
(MMU)
Teradata team, a joint collaboration between
academia and private enterprise.
1st Runner up: RM10K
Asia Pacific University
(APU)
2nd Runner up: RM5K
Petalnsights
MDeC ANNUAL REPORT 2014
A web app that generates a Dengue Index to predict dengue outbreaks geographically. The index would help
relevant government agencies provide early warnings to the community and deploy medical resources effectively.
A web application that generates
analytics and predictions based on
weather data and dam water levels,
in order to facilitate effective water
management and flood prevention.
An app that analyzes weather and
holiday data in order to uncover
human mobility patterns. This app
may be used to simulate incidents
such as disasters, for emergency
responders to practice disaster
management.
91
innovation Capital
big DAtA WeeK
KuAlA luMPur 2014
(2 - 11 MAY 2014)
M
DeC successfully hosted the Big Data Week Kuala
Lumpur (BDWKL) event, themed “Harnessing
Value from Your Data Variety”. The BDWKL is one of
the most unique global platforms of interconnected
community events focusing on the social, political and
18
technological impacts of data. It brings together a
global community of data scientists, data technologies,
data visualizers and data businesses spanning major
commercial, financial, social and technological sectors.
Details include:
Key Events
made up of workshops, hackathons and seminars
(the highest among 30 cities worldwide)
1,500+
participants attended
The anchor event on 6 May,
‘big Data: endless Possibilities’,
was officiated by YB Deputy Minister KKMM,
and received overwhelming response
10
sponsors
25
speakers
600
attendees
Also noteworthy was the Big Data Roundtable jointly organized by MDeC and IBM, and attended by
TKSU1, KKMM and other ministry reps who discussed the National BDA Framework and Open Data.
MDeC ANNUAL REPORT 2014
gOlD AWArD Winner At
tHe ASeAn iCt AWArD 2014
FOr tHe PriVAte SeCtOr
TESS Innovation Sdn Bhd,
Gold Award Winner at the
Asean ICT Award 2014
T
ESS Innovation Sdn Bhd, the sole Malaysian company at the finals of
the ASEAN ICT Award 2014 and a PCF recipient, won the gold Award
for their breakthrough security solution - the CORAL iSEM – Intelligent
Sensor for Money Laundering.
The award was presented by Y.Bhg Dato' Sri Ahmad Shabery Cheek,
Minister of Communication and Multimedia Malaysia (KKMM) in the
awards ceremony that was held in Bangkok on 22 January 2015.
93
MDeC ANNUAL REPORT 2014
Financial Statements
Directors’ Report
Balance Sheets
Income Statements
Statement of Changes in Equity
Cash Flow Statements
Notes to the Financial Statements
Statement by Directors
Statutory Declaration
Independent Auditors’ Report
96
100
101
102
103
105
125
126
127
95
Directors’ report
for the year ended 31 December 2014
The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the
Company for the year ended 31 December 2014.
Principal activities
The Company is principally engaged in coordinating the implementation of MSC Malaysia and investment holding,
whilst the principal activities of the subsidiaries are set out in Note 3 to the financial statements. There has been no
significant change in the nature of these activities during the financial year.
Results
Profit attributable to:
Shareholders of the Company
Group
RM
Company
RM
31,133,261
25,212,545
Dividends
No dividend was paid during the year and the Directors do not recommend any dividend to be paid for the year under
review.
Reserves and provisions
There were no material transfers to or from reserves and provisions during the year under review.
MDeC ANNUAL REPORT 2014
Directors of the Company
Directors who served since the date of the last report are:
Tan Sri Abdul Halim bin Ali
Datuk Wan Ahmad Shihab Ismail bin Wan Ismail
Dato’ Mohamed Sharil bin Mohamed Tarmizi
Datuk Dr. Parmjit Singh A/L Meva Singh
Ang Chin Joo
Mohd Esa bin Abd Manaf
Hawariah binti Idris (Alternate to En. Mohd Esa bin Abd Manaf)
Dato’ Mathialakan A/L Chelliah (Appointed on 19.01.2015)
Dato’ Yasmin binti Mahmood (Appointed on 19.01.2015)
Steve Hsien-Chieng Hsia (Appointed on 27.01.2015)
Dato’ Sri Abdul Rahim bin Mohamad Radzi (Resigned on 23.01.2015)
Datuk Che Azemi bin Haron (Alternate to Dato’ Sri Abdul Rahim bin Mohamad Radzi)
(Appointed on 21.08.2014 and resigned on 23.01.2015)
Datuk Mohd Badlisham bin Ghazali (Resigned on 22.06.2014)
Datuk Karownakaran @ Karunakaran (Resigned on 17.07.2014)
None of the Directors holding offices at 31 December 2014 had any interest in the ordinary shares of the Company
and of its related corporations during the financial year.
Directors’ benefits
Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive
any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by
Directors as shown in the financial statements) by reason of a contract made by the Company or a related corporation
with the Director or with a firm of which the Director is a member, or with a company in which the Director has a
substantial financial interest.
There were no arrangements during and at the end of the financial year which had the object of enabling Directors
of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any
other body corporate.
Issue of shares and debentures
There were no changes in the authorised, issued and paid up capital of the Company during the financial year.
97
Directors’ Report
for the year ended 31 December 2014 (cont.)
Other statutory information
Before the financial statements of the Group and of the Company were made out, the Directors took reasonable steps
to ascertain that:
i)
all known bad debts have been written off and adequate provision made for doubtful debts, and
ii)
any current assets which were unlikely to be realised in the ordinary course of business have been written down
to an amount which they might be expected so to realise.
At the date of this report, the Directors are not aware of any circumstances:
i)
that would render the amount written off for bad debts, or the amount of the provision for doubtful debts,
in the Group and in the Company inadequate to any substantial extent, or
ii)
that would render the value attributed to the current assets in the Group and in the Company financial
statements misleading, or
iii)
which have arisen which render adherence to the existing method of valuation of assets or liabilities of the
Group and of the Company misleading or inappropriate, or
iv)
not otherwise dealt with in this report or the financial statements, that would render any amount stated in the
financial statements of the Group and of the Company misleading.
At the date of this report there does not exist:
i)
any charge on the assets of the Group or of the Company that has arisen since the end of the financial year and
which secures the liabilities of any other person, or
ii)
any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial
year.
No contingent liability or other liability of any company in the Group has become enforceable, or is likely to become
enforceable within the period of twelve months after the end of the financial year which, in the opinion of the
Directors, will or may substantially affect the ability of the Group and of the Company to meet their obligations as
and when they fall due.
In the opinion of the Directors, the financial performance of the Group and of the Company for the financial year
ended 31 December 2014, have not been substantially affected by any item, transaction or event of a material and
unusual nature nor has any such item, transaction or event occurred in the interval between the end of that financial
year and the date of this report.
MDeC ANNUAL REPORT 2014
Auditors
The auditors, Messrs KPMG, have indicated their willingness to accept re-appointment.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
……………………………………………………………………………………………
Tan Sri Abdul Halim bin Ali
……………………………………………………………………………………………
Dato’ Yasmin binti Mahmood
Kuala Lumpur,
Date: 30 April 2015
99
Balance sheets
as at 31 December 2014
Group
2014
RM
2013
RM
Restated
2
3
4
5
6
7
8
36,666,586
–
–
–
47,300,000
83,966,586
37,718,954
–
–
–
47,300,000
193,642,151
72,930,955
351,592,060
36,666,586
–
–
–
47,300,000
83,966,586
37,718,954
–
–
–
47,300,000
193,642,151
72,930,955
351,592,060
9
6
14,895,038
19,855,480
1,384,371
237,331,134
18,123,194
14,895,038
66,197,443
1,501,104
57,800,161
14,895,038
20,225,609
1,220,830
237,331,134
17,346,954
14,895,038
66,527,171
1,340,549
57,056,290
166,445,874
145,556,223
603,591,314
145,149,422
81,895,772
367,438,940
166,445,874
142,882,058
600,347,497
145,149,422
81,895,772
366,864,242
218,337,372
17,000,000
109,562,294
344,899,666
165,055,416
17,000,000
202,525,736
384,581,152
218,309,354
17,000,000
106,888,129
342,197,483
165,026,511
17,000,000
202,525,736
384,552,247
258,691,648
342,658,234
(17,142,212)
334,449,848
258,150,014
342,116,600
(17,688,005)
333,904,055
620,475,003
(316,711,807)
303,763,196
620,475,003
(347,845,068)
272,629,935
620,475,003
(317,253,441)
303,221,562
620,475,003
(342,465,986)
278,009,017
Note
Property, plant and equipment
Investment in subsidiaries
Investment in associate
Loan to a subsidiary
Trade and other receivables
Other investments
Restricted other investment
Current assets
Loan to a related company
Trade and other receivables
Tax recoverable
Other investments
Cash and bank balances
Restricted:
Other investment
Cash and bank balances
Current liabilities
Trade and other payables
Borrowings
Government funds
7
10
8
11
12
13
Net current assets/(liabilities)
Financed by:
Capital and reserves
Share capital
Accumulated losses
Shareholder’s funds
Minority shareholder’s
interest
Long term liabilities
Borrowings
Company
2014
2013
RM
RM
Restated
14
15
-
5,924,875
-
-
12
38,895,038
342,658,234
55,895,038
334,449,848
38,895,038
342,116,600
55,895,038
333,904,055
The notes on pages 105 to 124 are an integral part of these financial statements.
MDeC ANNUAL REPORT 2014
Income statements
for the year ended 31 December 2014
Group
2014
RM
2013
RM
Restated
235,743,968
(225,932,679)
9,811,289
18,955,356
(181,375)
208,075,619
(194,898,748)
13,176,871
18,416,126
(467,183)
Note
Revenue
Cost of services
Gross profit
Other operating income
Administrative expenses
Gain on acquisition of
remaining shares of subsidiary
Gain on disposal of
other investment
Profit from operations
Interest expense
Profit before tax
Tax expense
Profit after tax
Minority interest
Net profit for the year
16
17
5,924,874
18
20
34,510,144
(257,164)
34,252,980
(3,119,719)
31,133,261
31,133,261
27,299,999
58,425,813
(342,164)
58,083,649
(1,238,149)
56,845,500
(2,228)
56,843,272
The notes on pages 105 to 124 are an integral part of these financial statements.
Company
2014
2013
RM
RM
Restated
234,924,919
(225,010,175)
9,914,744
18,674,684
28,589,428
(257,164)
28,332,264
(3,119,719)
25,212,545
25,212,545
208,075,619
(194,815,871)
13,259,748
18,402,837
27,299,999
58,962,584
(342,164)
58,620,420
(1,553,575)
57,066,845
57,066,845
101
Statements of changes in equity
for the year ended 31 December 2014
Share
capital
RM
Accummulated
loss
RM
Total
RM
620,475,003
620,475,003
620,475,003
Note 14
(404,688,340)
56,843,272
(347,845,068)
31,133,261
(316,711,807)
215,786,663
56,843,272
272,629,935
31,133,261
303,763,196
620,475,003
620,475,003
620,475,003
Note 14
(399,532,831)
57,066,845
(342,465,986)
25,212,545
(317,253,441)
220,942,172
57,066,845
278,009,017
25,212,545
303,221,562
Group
At 1 January 2013
Net profit for the year
At 31 December 2013/1 January 2014
Net profit for the year
At 31 December 2014
Company
At 1 January 2013
Net profit for the year
At 31 December 2013/1 January 2014
Net profit for the year
At 31 December 2014
The notes on pages 105 to 124 are an integral part of these financial statements.
MDeC ANNUAL REPORT 2014
Cash flows statements
for the year ended 31 December 2014
Group
Cash flows from operating activities
Profit before tax
Adjustments for:
Depreciation of property,
plant and equipment
Write-back for doubtful debts
Write off of property,
plant and equipment
Gain on acquisition of
remaining shares of subsidiary
Loss/(Gain) on disposal of:
- other investment
- property, plant and equipment
Interest expense
Interest income
Operating gain before
changes in working capital
Changes in working capital:
Trade and other receivables
Trade and other payables
Intercompany balances
Cash generated from operations
Interest received
Tax paid
Tax refunded
Increase/(Decrease) in
restricted cash deposits
Net cash generated from/
(used in) operating activities
2014
RM
2013
RM
Restated
34,252,980
58,083,649
1,591,156
(183,497)
5,679
(5,924,874)
1,651,993
(243,075)
Company
2014
2013
RM
RM
Restated
28,332,264
1,591,156
(182,798)
58,620,420
1,651,892
(243,075)
29,925
5,679
29,643
-
-
-
1,167
257,164
(18,543,408)
(27,299,999)
(60,989)
342,164
(17,816,360)
1,167
257,164
(18,543,408)
(27,299,999)
(60,989)
342,164
(17,813,071
11,456,367
14,687,308
11,461,224
15,226,985
55,848,342
(51,281,344)
16,023,365
9,217,539
(3,002,986)
-
(54,371,875)
60,878,739
21,194,172
12,834,049
(5,092,162)
1,937,000
55,846,229
(51,283,442)
(36,000)
15,988,011
9,217,539
(3,000,000)
-
(54,502,216)
60,983,777
(65,894)
21,642,652
12,830,761
(5,086,192)
1,570,000
12,025,949
(60,647,661)
9,351,783
(60,647,661)
34,263,867
(29,774,602)
31,557,333
(29,690,440)
The notes on pages 105 to 124 are an integral part of these financial statements.
103
Cash flows statements for the year ended 31 December 2014 (cont.)
Group
Cash flows from investing activities
Purchases of property, plant
and equipment
Proceeds from disposal of:
- property, plant and equipment
- investment
Other investments
Net cash generated from
(used in)/investing activities
Cash flows from financing activities
Repayment of borrowings
Interest paid
Net cash used in financing
activities
Net increase/(decrease) in
cash and cash equivalents
Cash and cash equivalents at
beginning of year
Cash and cash equivalents at
end of year
2014
RM
2013
RM
Restated
Company
2014
2013
RM
RM
Restated
(550,667)
(1,782,359)
(550,667)
(1,782,359)
5,033
7,945,520
67,664
15,000,000
(394,467,673)
5,033
7,945,520
67,664
15,000,000
(394,880,700)
7,399,886
(381,182,368)
7,399,886
(381,595,395)
(17,000,000)
(680,269)
(30,000,000)
(680,269)
(17,000,000)
(680,269)
(30,000,000)
(680,269)
(17,680,269)
(30,680,269)
(17,680,269)
(30,680,269)
23,983,484
(441,637,239)
21,276,950
(441,966,104)
139,695,933
581,333,172
138,952,062
580,918,166
163,679,417
139,695,933
160,229,012
138,952,062
Cash and cash equivalents included in the cash flow statements comprise the following balance sheets amounts:
Group
2014
RM
2013
RM
Restated
28,975,060
134,704,357
163,679,417
(145,556,223)
18,123,194
74,451,318
65,244,615
139,695,933
(81,895,772)
57,800,161
Note
Cash and bank balances
Deposits with licensed banks
Restricted
8
10
The notes on pages 105 to 124 are an integral part of these financial statements.
Company
2014
2013
RM
RM
Restated
25,524,655
134,704,357
160,229,012
(142,882,058)
17,346,954
73,707,447
65,244,615
138,952,062
(81,895,772)
57,056,290
MDeC ANNUAL REPORT 2014
Notes to the financial statements
Multimedia Development Corporation Sdn. Bhd. is a private company limited liability, incorporated and domiciled in
Malaysia. The addresses of the principal place of business and registered office of the Company are as follows:
Principal place of business
MSC Headquarters
2360 Persiaran APEC
63000 Cyberjaya
Selangor Darul Ehsan
Registered office
Unit C-1-15
SME Technopreneur Centre 2
2260 Jalan Usahawan 1
63000 Cyberjaya 2
Selangor Darul Ehsan
The Company is principally engaged in coordinating the implementation of MSC Malaysia and investment holding,
whilst the principal activities of the subsidiaries are as stated in Note 3.
The holding corporation during the financial year is Minister of Finance (Incorporated), a corporation incorporated
under the Minister of Finance (Incorporation Act, 1957).
The financial statements were approved by the Board of Directors on 30 April 2015.
1. Significant accounting policies
The following accounting policies are adopted by the Group and the Company and are consistent with those
adopted in previous years.
(a) Basis of accounting
The financial statements of the Group and of the Company are prepared on the historical cost basis except
as disclosed in the notes to the financial statements and in accordance with Private Entity Reporting
Standards (“PERS”) issued by the Malaysian Accounting Standards Board (“MASB”) and the requirements of
the Companies Act, 1965 in Malaysia.
105
Notes to the financial statements (cont.)
1. Significant accounting policies (cont.)
(b) Basis of consolidation
Subsidiaries are those enterprises controlled by the Company. Control exists when the Company has the
power, directly or indirectly, to govern the financial and operating policies of an enterprise so as to obtain
benefits from its activities. The financial statements of subsidiaries are included in the consolidated financial
statements from the date that control effectively commences until the date that control effectively ceases.
Subsidiaries are consolidated using the acquisition method of accounting.
A subsidiary is excluded from consolidation when either control is intended to be temporary if the subsidiary
is acquired and held exclusively with a view of its subsequent disposal in the near future and it has not
previously been consolidated or it operates under severe long term restrictions which significantly impair
its ability to transfer funds to the Company. Subsidiaries excluded on these grounds are accounted for as
investments.
Under the acquisition method of accounting, the results of subsidiaries acquired or disposed of during the
year are included from the date of acquisition or up to the date of disposal. At the date of acquisition,
the fair values of the subsidiaries’ net assets are determined and these values are reflected in the Group
financial statements. The difference between the acquisition cost and the fair values of the subsidiaries’
net assets is reflected as goodwill or negative goodwill as appropriate and charged/credited to income
statement on the year of acquisition.
Intragroup transactions and balances and the resulting unrealised profits are eliminated on consolidation.
Unrealised losses resulting from intragroup transactions are also eliminated unless cost cannot be recovered.
(c) Associates
Associates are those enterprises in which the Group has significant influence, but not control, over the
financial and operating policies.
The consolidated financial statements include the total recognised gains and losses of associates on an equity
accounted basis from the date that significant influence effectively commences until the date that significant
influence effectively ceases.
Unrealised profits arising on transactions between the Group and its associates which are included in the
carrying amount of the related assets and liabilities are eliminated partially to the extent of the Group’s
interests in the associates. Unrealised losses on such transactions are also eliminated partially unless cost
cannot be recovered.
Goodwill on acquisition is calculated based on the fair value of net assets acquired and stated at cost less
impairment, if any.
MDeC ANNUAL REPORT 2014
Notes to the financial statements (cont.)
1. Significant accounting policies (cont.)
(d) Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation.
Freehold land is not depreciated. Other property, plant and equipment are depreciated on a straight line
basis to write off the cost of each asset to their residual values over their estimated useful lives at the
following annual rates:
Buildings
Furniture, fittings and office equipment
Computers and software
Motor vehicles
Renovation
2%
20%
33%
25%
20%
(e) Investments
Long term investments other than in subsidiaries and associates are stated at cost. An allowance is made
when the Directors are of the view that there is a diminution in their value which is other than temporary.
Long term investments in subsidiaries and associates are stated at cost in the Company, less impairment loss
where applicable.
Current unquoted investments are stated at the lower of cost or net realisable value on an individual
assessment.
(f) Trade and other receivables
Trade and other receivables are stated at cost less allowance for doubtful debts.
Amount recoverable on project-in-progress represents unbilled costs on contract projects and comprises
direct costs in relation to the contracted services.
(g) Employee benefits
(i) Short term employee benefits
Wages, salaries and bonuses are recognised as expenses in the year in which the associated services
are rendered by employees of the Group. Short term accumulating compensated absences such as paid
annual leave are recognised when services are rendered by employees that increase their entitlement
to future compensated absences, and short term non-accumulating compensated absences such as sick
leave are recognised when absences occur.
107
Notes to the financial statements (cont.)
1. Significant accounting policies (cont.)
(g) Employee benefits (continued)
(ii) Defined contribution plans
Obligations for contributions to defined contribution plans are recognised as an expense in the income
statement as incurred.
(h) Liabilities
(i) Trade and other payables
Trade and other payables are stated at cost.
(ii) Deferred revenue
Deferred revenue is in respect of amount received in advance of the performance period.
(i) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, balances and deposits with banks and highly liquid
investments which have an insignificant risk of changes in value. For the purpose of the cash flow statements,
cash and cash equivalents are presented net of pledged deposit.
(j) Share capital
Ordinary shares are recorded at the nominal values and are classified as equity. Incremental costs directly
attributable to issue of shares is recognised as deduction from equity.
(k) Borrowings
Borrowings are initially recognised based on the proceeds received, net of transaction costs incurred.
MDeC ANNUAL REPORT 2014
Notes to the financial statements (cont.)
1. Significant accounting policies (cont.)
(l) Impairment
The carrying amount of assets, other than inventories, deferred tax assets and financial assets (other
than investments in subsidiaries and associates), are reviewed at each balance sheet date to determine
whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount
is estimated. An impairment loss is recognised whenever the carrying amount of an asset or the cashgenerating unit to which it belongs exceeds its recoverable amount. Impairment losses are recognised in the
income statement.
The recoverable amount is the greater of the asset’s net selling price and its value in use. In assessing value
in use, estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. For an
asset that does not generate largely independent cash inflows, the recoverable amount is determined for the
cash-generating unit to which the asset belongs.
In respect of other assets, an impairment loss is reversed if there has been a change in the estimates used
to determine the recoverable amount.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the
carrying amount that would have been determined, net of depreciation, if no impairment loss had been
recognised. The reversal is recognised in the income statement.
(m) Income tax
Tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the
income statement except to the extent that it relates to items recognised directly in equity, in which case
it is recognised in equity.
Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted
or substantially enacted at the balance sheet date, and any adjustment to tax payable in respect of previous
years.
Deferred tax is provided, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements. Temporary differences are
not recognised for goodwill not deductible for tax purposes and the initial recognition of assets or liabilities
that at the time of the transaction affects neither accounting nor taxable profit. The amount of deferred tax
provided is based on the expected manner of realisation or settlement of the carrying amount of assets and
liabilities, using tax rates enacted or substantially enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be
available against which the asset can be utilised.
10 9
Notes to the financial statements (cont.)
1. Significant accounting policies (cont.)
(n) Government funds
In 2008, the Company had changed its business model where the revenue arising from services rendered is
recognised in accordance with Note 1(p). Since then, the Company had entered into an agreement (known
as Business Outsourcing and Consultancy Agreement) with the Government of Malaysia on annual basis. In
accordance with the agreement, the Government appoints the Company to render services as stipulated in
the agreement. The fund received in advance through this agreement will be recognised as deferred revenue
and presented as trade and other payables in balance sheets as disclosed in Note 11.
The Company also receives other funds from the Government to be utilised for other specific purposes.
These funds are recognised in current liability as government funds upon receipts in balance sheets.
The nature of the government funds is disclosed in Note 13.
The above unutilised funds are recorded as restricted cash deposits as disclosed in Note 10.
(o) Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated to Ringgit Malaysia at rates of exchange ruling at the date
of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet
date are translated to Ringgit Malaysia at the foreign exchange rates ruling at that date. Foreign exchange
differences arising on translation are recognised in the income statement.
MDeC ANNUAL REPORT 2014
Notes to the financial statements (cont.)
1. Significant accounting policies (cont.)
(p) Revenue
Revenue and other income recognition
Revenue arising from the services rendered under the Business Outsourcing & Consultancy Agreement are
recognised in the year services are performed.
Other revenue derived from other services are recognised based on services performed to date.
Revenue from disposal of quoted investments is recognised upon the sale of shares.
Rental income and interest income are recognised on an accrual basis.
Dividend income is recognised when the shareholder’s right to receive payment is established.
(q) Expenses
(i) Operating lease payments
Payments made under operating leases are recognised in the income statement on a straight-line basis
over the term of the lease. Lease incentives received are recognised in the income statement as an
integral part of the total lease payments made.
(ii) Interest expense
All interest and other costs incurred in connection with borrowings are expensed as incurred. The
interest component of finance lease payments is recognised in the income statement so as to give a
constant periodic rate of interest on the outstanding liability at the end of each accounting period.
111
At 31 December 2014
At 31 December 2013
Depreciation charge for
the year ended
31 December 2013
Net book value
Accumulated depreciation
At 1 January 2014
Charge for the year
Disposals
Write off
At 31 December 2014
Cost
At 1 January 2014
Additions
Reclassifications
Disposals
Write off
At 31 December 2014
Group
2. Property, plant and equipment
Notes to the financial statements (cont.)
26,627,881
27,337,608
709,726
-
8,148,721
709,727
8,858,448
35,486,329
35,486,329
Buildings
RM
7,945,482
7,945,482
-
7,945,482
7,945,482
Freehold
land
RM
128,610
423,874
396,876
5,572,730
144,230
(659,896)
5,057,064
5,969,606
164,014
12,850
(665,532)
5,480,938
Furniture,
fittings
and office
equipment
RM
386,422
531,735
856,536
4,748,755
406,659
(19,656)
(285,596)
4,850,162
5,605,291
88,095
(25,856)
(285,633)
5,381,897
Computers
and
software
RM
9,527
336,751
307,056
13,447
115,424
128,871
320,503
145,119
465,622
Motor
vehicles
RM
417,708
584,684
664,217
10,695,467
215,116
10,910,583
11,359,684
52,905
82,684
(6)
11,495,267
Renovation
RM
-
216,179
211,179
-
211,179
100,534
(95,534)
216,179
Work-in
progress
RM
1,651,993
36,666,586
37,718,954
29,179,120
1,591,156
(19,656)
(945,492)
29,805,128
66,898,074
550,667
(25,856)
(951,171)
66,471,714
Total
RM
At 31 December 2014
At 31 December 2013
Depreciation charge for
the year ended
31 December 2013
Net book value
Accumulated depreciation
At 1 January 2014
Charge for the year
Disposals
Write off
At 31 December 2014
Cost
At 1 January 2014
Additions
Reclassifications
Disposals
Write off
At 31 December 2014
Company
2. Property, plant and equipment
(cont.)
Notes to the financial statements (cont.)
26,627,881
27,337,608
709,726
-
8,148,721
709,727
8,858,448
35,486,329
35,486,329
Buildings
RM
7,945,482
7,945,482
-
7,945,482
7,945,482
Freehold
land
RM
128,509
423,880
396,882
5,503,921
144,230
(659,896)
4,988,255
5,900,803
164,014
12,850
(665,532)
5,412,135
Furniture,
fittings
and office
equipment
RM
386,422
531,729
856,530
4,672,229
406,659
(19,656)
(285,596)
4,773,636
5,528,759
88,095
(25,856)
(285,633)
5,305,365
Computers
and
software
RM
9,527
336,751
307,056
13,447
115,424
128,871
320,503
145,119
465,622
Motor
vehicles
RM
417,708
584,684
664,217
10,695,467
215,116
10,910,583
11,359,684
52,905
82,684
(6)
11,495,267
Renovation
RM
-
216,179
211,179
-
211,179
100,534
(95,534)
216,179
Work-in
progress
RM
1,651,892
36,666,586
37,718,954
29,033,785
1,591,156
(19,656)
(945,492)
29,659,793
66,752,739
550,667
(25,856)
(951,171)
66,326,379
Total
RM
MDeC ANNUAL REPORT 2014
113
Notes to the financial statements (cont.)
3. Investment in subsidiaries
Company
Unquoted shares - at cost
Impairment loss
2014
RM
2013
RM
39,000,200
(39,000,200)
-
39,000,200
(39,000,200)
-
The principal activities of the subsidiaries which are incorporated in Malaysia, and the interest of Multimedia
Development Corporation Sdn. Bhd. are shown below:
Country of
incorporation
Effective
ownership
interest
2014
2013
%
%
Name of subsidiary
Principal activities
MSC Venture Corporation
Sdn. Bhd.
Managing venture capital funds
for investments in companies with
high potential growth in the
information, communication and
multimedia industries
Malaysia
100
100
Meitech Development
Sdn. Bhd.
Investment holding and provision
of advisory services on MSC Malaysia
related initiatives
Malaysia
100
100
Investment holding with the objective
to achieve long terms capital
appreciation on investments made
Malaysia
100
86.67
United States
of America
100
-
Held through 100%
ownership by MSC
Venture Corporation
Sdn. Bhd.
- MSC Venture One
Sdn. Bhd.
Held through 100%
ownership by Meitech
Development Sdn. Bhd.
MDeC Americas Inc.
Spearheading MDeC’s presence in
United States of America and to
facilitate the global expansion of
targeted MSC Malaysia companies
MDeC ANNUAL REPORT 2014
Notes to the financial statements (cont.)
4. Investment in associate
Group and Company
2014
2013
RM
RM
Investment in associate, at cost
Share of post-acquisition losses
Allowance for diminution in value
13,166,678
(6,583,339)
(6,583,339)
-
13,166,678
(6,583,339)
(6,583,339)
-
The significant associate entity of the Group is as follow:
Name of subsidiary
Principal activities
Cosmos Discovery
Sdn. Bhd.
Engaged in production and distribution
of television dramas, telemovies, films,
music productions and artist and
event management services, providing
web and IT consultancy services, and
investment holding
Country of
incorporation
Malaysia
Effective
ownership
interest
2014 2013
%
%
44.2
44.2
The investment in the associate entity, Cosmos Discovery Sdn. Bhd. is directly held by MSC Venture One Sdn. Bhd.
5. Loan to a subsidiary
Company
2014
RM
Loan
Allowance for doubtful debts
2013
RM
100,000,000
100,000,000
(100,000,000) (100,000,000)
-
Loan to a subsidiary is unsecured and is for the sole purpose to facilitate and finance the set up of a venture capital
fund to be managed solely by MSC Venture Corporation Sdn. Bhd., a wholly-owned subsidiary of the Company, which
provides venture capital funding to Small Medium Enterprises and/or MSC Malaysia status companies to participate
in and benefit from MSC Malaysia.
115
Notes to the financial statements (cont.)
6. Trade and other receivables
Group
Company
2014
RM
2013
RM
2014
RM
2013
RM
Non-current
Other receivables
47,300,000
47,300,000
47,300,000
47,300,000
Current
Trade receivables
-
55,969,400
-
55,969,400
Other receivables
Allowance for doubtful debts
Amount due from subsidiaries
Allowance for doubtful debts
21,383,358
(1,527,878)
19,855,480
19,855,480
66,478,709
(56,250,666)
10,228,043
66,197,443
21,022,446
(1,270,546)
19,751,900
845,523
(371,814)
473,709
20,225,609
11,573,407
(1,453,344)
10,120,063
127,148,813
(126,711,105)
437,708
66,527,171
The long term receivable of the Group and of the Company is the balance of the sale proceeds arising from the
sale of other investment in the previous financial year. The amount is unsecured, interest free and repayable in five
installments commencing from 1 August 2015.
The amount due from subsidiaries is unsecured, interest free and is repayable on demand.
MDeC ANNUAL REPORT 2014
Notes to the financial statements (cont.)
7. Other investments
Group
Non-current
Unquoted shares, at cost:
- in Malaysia
- outside Malaysia
Allowance for diminution in value of investments
2014
RM
2013
RM
19,521,586
3,047,872
22,569,458
(22,569,458)
-
19,521,586
3,047,872
22,569,458
(22,569,458)
-
Group and Company
2014
2013
RM
RM
Deposits with licensed banks
Non-current
Current
237,331,134
237,331,134
193,642,151
193,642,151
8. Restricted
Group
Note
Non-current
Other investments
Current
Other investments
Cash and bank balances
10
2014
RM
Company
2013
RM
2014
RM
2013
RM
-
72,930,955
-
72,930,955
166,445,874
145,556,223
312,002,097
145,149,422
81,895,772
227,045,194
166,445,874
142,882,058
309,327,932
145,149,422
81,895,772
227,045,194
Restricted of other investment and cash and bank balances represent the accumulated funds received from the
Government of Malaysia but yet to be utilised for specific purposes.
117
Notes to the financial statements (cont.)
9. Loan to a related company
Group and Company
2014
2013
RM
RM
Current
14,895,038
14,895,038
The Company entered a loan agreement with Jia Yu Home Entertainment Sdn. Bhd. (“Jia Yu”), a subsidiary of Cosmos
Discovery Sdn. Bhd., an associate of the Group. The loan is to enable Jia Yu to have access to the international market
through an existing Content Distribution Infrastructure. In the previous financial year, the Company had restructured
the repayment schedule with Jia Yu that the loan was repayable in eight annual instalments commencing from 23
December 2012. However, Jia Yu has defaulted on the repayment. On 3 September 2013, the Company has terminated
the said loan agreement and, therefore, the loan is repayable on demand.
On 20 January 2014, Jia Yu has received an order for winding up by the High Court. However, management has not
provided for allowance for doubtful debts as the loan is a back to back arrangement with Ministry of Finance (Note 12).
10. Cash and cash equivalents
Group
2013
RM
Restated
2014
RM
2013
RM
Restated
28,975,060
134,704,357
163,679,417
(145,556,223)
18,123,194
74,451,318
65,244,615
139,695,933
(81,895,772)
57,800,161
25,524,655
134,704,357
160,229,012
(142,882,058)
17,346,954
73,707,447
65,244,615
138,952,062
(81,895,772)
57,056,290
2014
RM
2013
RM
Restated
2014
RM
189,362,246
10,722,416
2,587,726
2,355,141
13,309,843
218,337,372
145,960,581
6,101,662
3,217,179
1,111,170
8,664,824
165,055,416
189,362,246
10,722,416
2,582,208
2,355,141
13,287,343
218,309,354
Note
Cash and bank balances
Deposits with licensed banks
Restricted
8
Company
2014
RM
11. Trade and other payables
Group
Deferred revenue
Trade payables
Other payables
Trade accruals
Accruals
Company
2013
RM
Restated
145,960,581
6,101,662
3,210,773
1,111,170
8,642,325
165,026,511
In 2013, included in deferred revenue is a receivable amount of RM55,723,000 and is included in trade receivables.
MDeC ANNUAL REPORT 2014
Notes to the financial statements (cont.)
12. Borrowings
Group
Current
Unsecured and interest bearing:
Term loan
- Bank Negara Malaysia
Long Term
Unsecured and interest bearing:
Term loan
- Bank Negara Malaysia
- Ministry of Finance (“MOF”)
The repayment of the term loans
can be analysed as follows:
Payable within one year
Payable between two and five years
Company
2014
RM
2013
RM
2014
RM
2013
RM
17,000,000
17,000,000
17,000,000
17,000,000
17,000,000
17,000,000
17,000,000
17,000,000
24,000,000
14,895,038
38,895,038
41,000,000
14,895,038
55,895,038
24,000,000
14,895,038
38,895,038
41,000,000
14,895,038
55,895,038
17,000,000
38,895,038
55,895,038
17,000,000
55,895,038
72,895,038
17,000,000
38,895,038
55,895,038
17,000,000
55,895,038
72,895,038
Bank Negara Malaysia
The unsecured loan from Bank Negara Malaysia (“BNM loan”) is for the sole purpose to facilitate and finance the set
up of a venture capital fund to be managed solely by MSC Venture Corporation Sdn. Bhd., a wholly owned subsidiary
of the Company, which provides venture capital funding to Small Medium Enterprises and/or MSC Malaysia status
companies to participate in and benefit from MSC Malaysia. The BNM loan facility was fully drawndown on 14 August
2001.
The loan is subject to fixed interest rates at 0.5% (2013: 0.5%) per annum and is repayable in six annual instalments
commencing from 13 November 2012.
Ministry of Finance
In 2008, the Company had received a special loan from Ministry of Finance amounted to RM30 million. The loan
facility shall be utilised solely for the purpose of financing the promotional costs, operational costs and expansion
plans of Jia Yu. As at 31 December 2014, the outstanding term loan represents the amount due from Jia Yu (Note 9).
The special loan is unsecured, interest free and repayable in eight (8) annual instalments commencing from the
fourth year of the effective date of the loan facility agreement dated 21 November 2008. On 19 August 2013, the
Company has repaid to Ministry of Finance for an amount of RM13 million being the sum not disbursed to Jia Yu.
119
Notes to the financial statements (cont.)
13. Government funds
Group
Movement of government
funds were as follows:
At 1 January
Received during
the financial year
Disbursement
Refund to government
At 31 December
Company
2014
RM
2013
RM
2014
RM
2013
RM
202,525,736
213,475,922
202,525,736
213,475,922
115,627,064
(205,715,321)
(2,875,185)
109,562,294
100,214,494
(110,261,152)
(903,528)
202,525,736
115,627,064
(208,389,486)
(2,875,185)
106,888,129
100,214,494
(110,261,152)
(903,528)
202,525,736
Government funds are used for financial support, assistance or to reimburse cost incurred by the Company relating
to expenditure on the coordination for the implementation of the Multimedia Super Corridor and Digital Malaysia.
The funds are recorded as liability until it is fully disbursed to the intended recipients.
14. Share capital
Amount
2014
RM
Group and Company
Number
of shares
Amount
2014
2013
RM
Number
of shares
2013
Authorised:
Ordinary shares of RM1 each
750,000,000
750,000,000
750,000,000
750,000,000
Issued and fully paid:
Ordinary shares of RM1 each
At 1 January/31 December
620,475,003
620,475,003
620,475,003
620,475,003
MDeC ANNUAL REPORT 2014
Notes to the financial statements (cont.)
15. Minority shareholder’s interests
Group
2014
RM
Minority shareholder’s interests
2013
RM
-
5,924,875
This consists of the minority shareholder’s proportion of share capital and reserves of subsidiaries, net of their share
of subsidiary’s goodwill on consolidation and amortisation of goodwill charged to the minority shareholders.
On 20 June 2014, MSC Venture Corporation Sdn. Bhd. acquired the remaining shares of MSC Venture One Sdn. Bhd.
from the minority shareholder’s interest. Therefore, during the financial year, the accumulated minority shareholder’s
interest amount has been recognised as gain on acquisition of remaining shares of subsidiary.
16. Revenue
Group
Contract services
Consultancy and other services
Rental income
Company
2014
RM
2013
RM
2014
RM
2013
RM
168,527,621
67,101,906
114,441
235,743,968
146,622,587
61,274,682
178,350
208,075,619
168,527,621
66,282,857
114,441
234,924,919
146,622,587
61,274,682
178,350
208,075,619
17. Other operating income
Group
Interest income
Other income
Company
2014
RM
2013
RM
2014
RM
2013
RM
18,543,408
411,948
18,955,356
17,816,360
599,766
18,416,126
18,543,408
131,276
18,674,684
17,813,071
589,766
18,402,837
121
Notes to the financial statements (cont.)
18. Profit before tax
Group
2014
RM
Profit before tax is arrived at
after charging/(crediting):
Auditors’ remuneration
Rental of premises
Depreciation
Write off of:
- property, plant and equipment
Write-back for doubtful debts, net
Staff costs
Interest income
Rental income
Directors fees
Gain on acquisition of
remaining shares of subsidiary
Gain on disposal of
other investment
Gain on disposal of
property, plant and equipment
Company
2013
RM
85,000
837,446
1,591,156
5,679
(183,497)
71,850,131
(18,543,408)
(114,441)
309,953
2014
RM
80,000
835,594
1,651,993
29,925
(243,075)
62,149,522
(17,816,360)
(178,350)
339,150
(5,924,874)
2013
RM
70,000
837,446
1,591,156
5,679
(182,798)
71,814,130
(18,543,408)
(114,441)
309,953
-
60,000
835,594
1,651,892
29,643
(243,075)
62,066,645
(17,813,071)
(178,350)
332,400
-
-
-
(27,299,999)
-
(27,299,999)
1,167
(60,989)
1,167
(60,989)
Executive director’s remuneration is included under staff cost.
19. Employees’ information
Group
EPF contribution
Salaries and other benefits
Company
2014
RM
2013
RM
2014
RM
2013
RM
9,456,799
62,393,332
71,850,131
8,691,873
53,457,649
62,149,522
9,456,799
62,357,331
71,814,130
8,686,757
53,379,888
62,066,645
The number of persons employed by the Group and the Company at the end of the financial year was 471 (2013: 431)
and 471 (2013: 431) respectively.
MDeC ANNUAL REPORT 2014
Notes to the financial statements (cont.)
20. Taxation
Group
2014
RM
Current tax expense
Over provision in prior years
Company
2013
RM
3,119,719
3,119,719
1,661,202
(423,053)
1,238,149
2014
RM
2013
RM
3,119,719
3,119,719
1,659,451
(105,876)
1,553,575
Reconciliation of
effective tax expense
Profit before tax
Income tax using Malaysian tax rate
of 25% (2013: 25%)
Non-deductible expenses
Non-taxable income
Change in unrecognised
temporary differences
Over provision in prior years
Tax expense
34,252,980
58,083,649
28,332,264
58,620,420
8,563,245
802,537
(6,385,735)
14,520,912
2,922,204
(16,063,582)
7,083,066
772,422
(4,873,620)
14,655,105
2,786,260
(16,063,582)
139,672
3,119,719
3,119,719
281,668
1,661,202
(423,053)
1,238,149
137,851
3,119,719
3,119,719
281,668
1,659,451
(105,876)
1,553,575
The amount of deductible temporary differences and unutilised tax losses (both of which have no expiry date) for
which no deferred tax asset is recognised in the balance sheets are as follows:
Group
Property, plant and equipment
Unabsorbed capital allowances
Unutilised tax losses
Company
2014
RM
2013
RM
2014
RM
2013
RM
(105,762)
8,488,640
212,713,683
221,096,561
(93,387)
8,793,867
211,837,393
220,537,873
(105,762)
8,069,256
199,050,563
207,014,057
(93,287)
7,505,377
199,050,563
206,462,653
Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable
profit will be available against which the Group and the Company can utilise the benefits therefrom.
123
Notes to the financial statements (cont.)
21. Significant transactions with related corporations
The significant related party transactions undertaken by the Group and the Company with its related corporations
during the financial year, which have not been disclosed elsewhere in the financial statements, were as follows:
Company
2014
RM
MSC Venture Corporation Sdn. Bhd.
Administrative expenses charged
MDeC Americas Inc.
Government grant disbursement (transfer)
2013
RM
36,000
65,894
4,711,629
-
The above transactions have been entered into in the normal course of business and have been established on a
negotiated basis.
22. Comparative figures
The following comparatives have been restated to conform with the current year’s presentation.
Group and Company
Multimedia Grant Scheme
Non-current
Other investments
Restricted Other investments
Current
Restricted cash deposit
Restricted:
Other investments
Cash and bank balances
As at
31.12.2013
RM
Reclassification
RM
As restated
RM
6,661,726
(6,661,726)
-
-
299,976,149
-
193,642,151
72,930,955
(299,976,149)
193,642,151
72,930,955
-
145,149,422
81,895,772
145,149,422
81,895,772
Group
Trade and other payables
Cash and bank balances
158,393,690
251,442,312
6,661,726
(193,642,151)
165,055,416
57,800,161
Company
Trade and other payables
Cash and bank balances
158,364,785
250,698,441
6,661,726
(193,642,151)
165,026,511
57,056,290
MDeC ANNUAL REPORT 2014
STATEMENT By DIRECTORS
PURSUANT TO SECTION 169(15) OF ThE COMPANIES ACT, 1965
In the opinion of the Directors, the financial statements set out on pages 100 to 124 are drawn up in accordance with
Private Entity Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia and so as to give
a true and fair view of the financial position of the Group and of the Company as at 31 December 2014 and of their
financial performance and cash flows for the year then ended.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
……………………………………………………………………………………………
Tan Sri Abdul Halim bin Ali
……………………………………………………………………………………………
Dato’ Yasmin binti Mahmood
Kuala Lumpur,
Date: 30 April 2015
125
STATUTORy DECLARATION
PURSUANT TO SECTION 169(16) OF ThE COMPANIES ACT, 1965
I, Nor Faizah Othman, the officer primarily responsible for the financial management of Multimedia Development
Corporation Sdn. Bhd., do solemnly and sincerely declare that the financial statements set out on pages 100 to 124
are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the
same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the abovenamed in Wilayah Persekutuan Putrajaya in the Federal Territory on
30 April 2015.
……………………………………………………………………………………………
Nor Faizah Othman
Before me:
MDeC ANNUAL REPORT 2014
KPMG (Firm No.AF 0758)
Chartered Accountants
Level 10, KPMG Tower
8, First Avenue, Bandar Utama
47800 Petaling Jaya
Selangor Darul Ehsan, Malaysia
Telephone +60 (3) 7721 3388
Fax
+60 (3) 7721 3399
Internet
www.kpmg.com.my
Independent auditors’ report
to the members of Multimedia Development Corporation Sdn. Bhd.
(Company No. 389346-D)
(Incorporated in Malaysia)
Report on the Financial Statements
We have audited the financial statements of Multimedia Development Corporation Sdn. Bhd., which comprise the
balance sheets as at 31 December 2014 of the Group and of the Company, and the income statements, statements
of changes in equity and cash flows statements of the Group and of the Company for the year then ended, and a
summary of significant accounting policies and other explanatory information, as set out on pages 100 to 124.
Directors’ responsibility for the financial statements
The Directors of the the Company are responsible for the preparation of financial statements so as to give a true and
fair view in accordance with Private Entity Reporting Standards and the requirements of the Companies Act, 1965
in Malaysia. The Directors are also responsible for such internal control as the Directors determine is necessary to
enable the preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors’ responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on our judgment, including the assessment of risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we
consider internal control relevant to the entity’s preparation of the financial statements that give a true and fair
view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
KPMG, a partnership established under Malaysian law and a
member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (”KPMG
International”), a Swiss entity.
127
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the Group and of the
Company as of 31 December 2014 and of their financial performance and cash flows for the year then ended in
accordance with Private Entity Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia.
Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following:
a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company
and its subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions
of the Act.
b) We are satisfied that the accounts of the subsidiaries that have been consolidated with the Company’s financial
statements are in form and content appropriate and proper for the purposes of the preparation of the financial
statements of the Group and we have received satisfactory information and explanations required by us for those
purposes.
c) Our audit reports on the accounts of the subsidiaries did not contain any qualification or any adverse comment
made under Section 174(3) of the Act.
Other Matters
This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the
Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for
the content of this report.
KPMG
Hasman yusri yusoff
Firm Number: AF 0758
Chartered Accountants
Approval Number: 2583/08/16(J)
Chartered Accountant
Petaling Jaya,
Date: 30 April 2015
Multimedia Development Corporation Sdn. Bhd. (389346-D)
www.mdec.com.my
2360 Persiaran APEC
6300 Cyberjaya
Selangor Darul Ehsan, Malaysia
Tel: +603 8315 3000
Toll Free No.: 1-800-88-8338
Fax: +603 8315 3115
clic.mdec.com.my
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