KUALA LUMPUR - Malaysia's plans for a US$10 billion futuristic multimedia "smart city" remain on track despite regional economic troubles.
That is the message government officials are expected to tell investors later this week during a series of meetings on its Multimedia Super Corridor.
While some Malaysians are still clueless about the $10 billion project to promote multimedia products and services, backers of the development say its potential is undimmed by the area's economic crisis.
A total of 103 companies have been licensed to operate in the 9-by-30-mile Multimedia Super Corridor. Operating benefits include intellectual property protection, tax breaks, and permission to hire skilled foreign workers.
On Thursday and Friday, officials of the Multimedia Development Corp. are hosting the second meeting of the International Advisory Panel (IAP) in Cyberjaya, the "smart city" that is part of the multimedia zone south of Kuala Lumpur.
The advisory panel has over 30 members. The first meeting was held last year at Stanford University in California.
Among the members scheduled to attend this year's meetings are Acer Inc. chairman Stan Shih, Motorola Inc. chief executive officer Gary Tooker, and Lars Ramsqvist, LM Ericsson's chief executive officer.
Some of the biggest stars of the high-tech firmament are not coming. Microsoft Corp.'s Bill Gates will instead make a separate trip to Malaysia next month.
The zone is taking shape. Of the Super Corridor-status firms, 35 percent are local, another 26 percent are joint ventures between local and foreign firms, and the remaining are international companies. Malaysia is providing the zone's infrastructure, including a state-of-the-art telecommunications backbone.
One of the key topics to be discussed is electronic commerce, Multimedia Super Corridor chairman Othman Yeop told Reuters Television in a recent interview.
"I believe that for Malaysia and the region, it has to be by the end of the year that we have achieved some level of confidence in order to conduct electronic commerce, within the country as well as across borders," Yeop said.
Despite the economic crisis that has dampened Malaysia's growth prospects and devalued its currency, backers of the Super Corridor say the project will proceed.
While some US high-tech firms have warned that Asia's turmoil will dent their profits, observers say the weakened currencies should make it even cheaper for foreign investors.
"Looking at the exchange rate, it's cheaper to come here now," said Selinna Chin, country manager for research firm International Data Corp. in Malaysia.
Othman said economic problems could slow development of some applications - seven have been identified, including borderless marketing, smart cards, and education - and the government's involvement in the applications will be curtailed.
But foreign companies seeking Super Corridor status say they are going ahead.
"We're solidly behind the idea," said Bob Bishop, chairman of computer maker Silicon Graphics Inc.'s non-US manufacturing operations in an interview with Reuters.
"It won't be stopped," he added. Silicon is focusing on education and is involved in joint ventures with two Malaysian universities for a multimedia institution and a virtual-reality project.
