SUSTAINING COMMUNITY e-CENTRES IN MALAYSIA

1. SUSTAINING COMMUNITY e-CENTRES IN MALAYSIA NORMALA SHAROM MINISTRY OF RURAL AND REGIONAL DEVELOPMENT, MALAYSIA BALI 1-3 February, 2005

2. SUSTAINING COMMUNITY e-CENTRES IN MALAYSIA 1. Initiatives in Malaysia2. Challenges3. Addressing the Issue of Sustainability of the Telecenters

3. Initiatives in Malaysia • Medan InfoDesa (MID) – Rural Information Centre • Mini Medan InfoDesa (MINI MID) • Rural Internet Program • Private initiatives • e-Bario Project

4. Medan InfoDesa (MID) • Multipurpose Community ICT Centre • Built with the objective of encouraging Community Ownership, Empowerment and Sustainability - The MID is owned, managed and sustained by the local community • Address the needs of the local people in a way that most empowers the communities they served. • Structure that encourage and support communities to manage development

5. Medan InfoDesa (MID) • Began with 6 pilot projects in 2001 • 2003 – 17 projects had been established • 2004 – 12 in various stages of implementation • Cost per site – RM200,000 – RM300,000 (US$ 52,630 – US$ 78,950)

6. Medan InfoDesa (MID) • Physical entity with complete ICT infrastructure • Center for physical and virtual interaction amongst rural communities • One Stop ICT Center • ICT training Center for district • Socially and economically viable and sustainable • Catalyst for rural ICT entrepreneurship

7. Target Group • Individuals (local community members and village leaders); • Small businesses; • Schools; • Youths; • Disabled people; • Farmers; • Women groups; • Political parties; and • Government departments

8. LINKAGES MODEL Government Offices Village Devt Committee Ministry of Rural & Regional Dev. Mosque Schools MEDAN INFODESA Other Services Rural Clinic Community Center Local Communitiy Police Dept

9. Criteria for selection • Good leadership • Population at least 1,000 • Prerequisite • Telecommunication • Electricity • ICT project initiatives on their own • Have won the National Award for Best village • One District One MID

10. Facilities Provided • Building • Computer equipment • Personal ComputerS - 20 units • AVR - 20 units • Laser Printer (b/w) - 1 unit • Colour Printer - 1 unit • Scanner - 1 unit • Server - 1 unit • Software - 20 units • Local Area Network • Basic furniture • Launching Grant - RM 5,000 (US$ 1,315) • Training courses for Managers & Trainers

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

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

13. MINI MEDAN INFODESA(MINI MID) • Program under Ministry of Rural and Regional Development • Scaled down version of the MID 10 -15 PCs per setup • Mini MIDs are at subdistrict level • Currently there are 32 Mini MIDs

14. RURAL INTERNET PROGRAM (PID) • Program under Ministry of Energy, Water and Communications • Target group: the underserved in marginalised areas – such as small towns in outskirts of urban areas • Setup: 5-6 networked PCs located in selected Post Offices • 42 operational sites

15. Private Intiatives • Keen interest being shown by the private sector to participate in setting up of e-centers in the rural areas • One company has begun program to develop 900 cyber-café projects across the country • Entrepreneurship

16. e-Bario PROJECT • Started as a research project to create opportunities for social development within remote communities in Sarawak • Aim: to provide ICT and internet access • Bario – home of the Kelabit people which is located in a very isolated and remote part of the mountains of Sarawak where nowadays flying is the only practical way to get there • Project began in 1999 and went operational in 2002

17. e-Bario PROJECT • Two schools have computer laboratories with 10 computers each and installation of an IT Literacy Programme for students and teachers • Setup of a Community Telecenter with 4 computers, printers, a copier and fax machine with access to Internet • Internet connectivity – VSAT connection • The schools and telecenter runs on power generated by using solar panels and diesel generators

18. CHALLENGES • High implementation cost (initial) • Limited telecommunication infrastructure in remote areas • Limited usage – not enough to sustain • High operating cost (telecommunication, electricity, personnel) • Encourage private sector participation • Need for effective management • Need for strong community support • ICT training – wide coverage • Technology moves fast

19. ADDRESSING THE ISSUE OF SUSTAINABILITY OF THE TELECENTERS • High implementation cost (initial) • - government support (MID, Mini MID, PID) • - private initiatives – own source of financing • - e-Bario – research grant RM 200,000 (US$ 52,630) from IDRC Canada and RM 620,000 (US$ 163,158) under Demonstrator Application Grant Scheme

20. ADDRESSING THE ISSUE OF SUSTAINABILITY OF THE TELECENTERS • Limited telecommunication infrastructure in • remote areas - satellite communication most suitable - initial cost RM 30,000 (US$ 7,895) per site - MID, Mini MID, PID - government support - private initiatives – own source of financing - e-Bario – packaged under project (for 5 years) - recurring cost - monthly bills – RM 330 (US$ 86.85) - MID, Mini MID – from monthly collection - PID – government support - private initiatives – from monthly collection - e-Bario – packaged under project right from start - no monthly bills for 5 years

21. ADDRESSING THE ISSUE OF SUSTAINABILITY OF THE TELECENTERS • Limited usage – not enough to sustain monthly income - MID, Mini MID, might require prolonged government support - PID - government support - private initiatives minimised problem ; business driven - e-Bario – support from IDRC and DAGS - funding to cover for first 5 years of operation - ‘Killer application(s)’ – tailored to local requirement

22. ADDRESSING THE ISSUE OF SUSTAINABILITY OF THE TELECENTERS • High operating cost (telecommunication, electricity, personnel) • Encourage private sector participation • the private sector should participate in bridging the digital divide between the rural and urban areas • Private sector may co-join with the government through ‘adoption’ of some of the telecenters • The ICT industry can participate in producing ‘low cost computers and telecommunication infrastructure for the telecenters • tax exemption bigger marginal profit arising from economies of scale

23. ADDRESSING THE ISSUE OF SUSTAINABILITY OF THE TELECENTERS • Need for effective management - MID, Mini MID, - community ownership - PID – hired by Ministry of Energy, Water and Communications - unemployed graduates - private initiatives - operator is the owner of the business - e-Bario – community ownership – significant village individual • Need for strong community support - The community must support the telecentre for the project to be successful

24. ADDRESSING THE ISSUE OF SUSTAINABILITY OF THE TELECENTERS • ICT training – wide coverage – 70% of Malaysia is rural - more MIDs and Mini MIDs under 9th Malaysia Plan - increased source of income - basic training to be provided by trained MID operators - skilled ICT training to be provided through outsourcing but carried out at the MID and Mini MIDs • Technology moves fast - PCs get obsolete within 5 years - Most of the telecenters will face upgrading costs at some point - Government may help the MID and Mini MIDs by replacing a few PCs

25. TERIMA KASIHTHANK YOU