"While digitization is yet to take off in Malaysia, we are very upbeat about it. As far as content digitisation is concern, MDeC is playing a pivotal role in getting all content to be fully digital," explains Kamil Othman, MDeC's Head of Creative Multimedia Department.

"In Malaysia, most of the analogue assets are parked in various Government agencies, which requires consolidation and to be fully digitalized. For example, most of the past news and film archives, history and cultural heritage information are situated in Arkib Negara, Filem Negara, RTM, Media Prima and other Government agencies which requires conversion from analogue to digital data. The Government, which has the jurisdiction, should start calling for all the relevant agencies to convert their analogue assets."

However, points out Othman, that given the current recession, digitalization plans may get shelved, in which case the Government will need to allocate budget specifically to digitize all the valuable analogue assets.

"Most Government agencies do not have specific budgets for digitization initiatives. This is especially important for RTM and Filem Negara as these agencies hold important old (content) collections. Currently, these agencies are holding most of the important historical footage which are not in digital form. However, Astro is pro-digitalization and making efforts to digitalize all their content. Finally," warns Othman, "if all the rest do not go digital, they will be missed."

Regarding Malaysia's biggest media developments, in three years' time, the Government TV and radio network (RTM) will be offering 19 free-to-air channels through digital terrestrial broadcasting.

Former Information Minister Datuk Ahmad Shabery Cheek said these are being introduced in preparation for RTM going digital by 2012, besides serving as a platform for local creative works to be promoted abroad. This is to get 98 percent of the population to be updated, informed and entertained via 19 digital channels by 2012. RTM will be optimizing its manpower and facilities to churn out round-the-clock news, in-depth news reporting, documentaries and other in-house productions.

Further explains Othman, "Malaysia has to be fully digital by 2012 and this should commence now. As for now, the Malaysian Government has yet to construct a Digitalization Master Plan. MDeC is looking into this and planning to draft digital strategy for the country. Currently, in terms of creative content market, MDeC is fully prepared in the digital medium. And with the implementation of High Speed Broadband (HSBB) network infrastructure in Malaysia, digital assets are greatly required." TVAplusOffering an internal perspective on the Malaysian media industry that MDec has successfully striven to stimulate, is Low Huoi Seong CEO of Vision New Media.

"We've seen a lot of changes in the media industry since starting

our TV programme distribution business in 1985, just a year after the launch of TV3 - Malaysia's first private, commercial TV service. We were therefore a part of the growth of commercial TV and the lived through the rise of cigarette sponsorships (from movies to football on TV) as well as their wane."

He continues, "We were also a part of the launch of satellite and legitimate pay-TV broadcasting in Asia. So, in 24 years, we have seen the rise of TV as a powerful commercial medium, but in Malaysia, print still commands the largest share of adex. We have seen the rise of the Internet and the way it influences society. We are currently working hard to make mobile successful as a medium; we hope to shape the industry and not just see it change passively."

Seong says the fragmentation of the old full service ad agencies has pushed the level of complexity to a point where it is very hard for things to get done. "Ironically, this means that there is more system inertia and decisions are not easily made. Media specialists are loath to try new things as the traditional measures are the 'currency' of the industry. This tendency to 'do the same' is why TV has lagged behind print and why new media is taking so long to establish a firm foothold in Malaysia."

In terms of MDec's efforts to boost the media industry and areas in which Malaysian talent truly excels, Seong says, "We are really very good, and can compete at a world-class level, in the area of animation for TV. This has been one of the MSC's (Multimedia Super Corridor) biggest successes."

He feels that the companies that are aware of the need to develop world-class capabilities and are prepared to work hard are those who have benefitted most from MDec initiatives like the MSC-status scheme.

"The MSC initiative is actually incredibly well designed, with myriad mechanisms and funds available to support companies trying to address the issues of development (from seed to IPO, from R&D to commercialization etc). So I think there are some companies who are really benefitting from what is available -

like Vision New Media, with our animated projects like CJ the DJ and Sumo Mouse enjoying the support of MDeC, MOSTI and their funding schemes."

"There are only a handful of companies that are really involved in proper co-productions and those who do benefit greatly, in terms of the skills and knowledge gained," says Seong. "Vision co-produces TV programmes with Singapore, Indonesia, Philippines and Vietnam We also co-produce animated TV series with Australia. We have learned that the co-production world is heavily influenced by local funding mechanisms designed to protect domestic industries. As such, for Malaysian companies to participate, we need to have official treaties in place. This is where MDeC has a very important role to play. Their latest initiative to develop the digital content industry, MAC3, has taken this on as a major thrust - to proactively help companies participate in global co-production projects and

to facilitate them through funds as well as legislative support. If this does not happen, Malaysia will be excluded from one of the

most important parts of the global content creation business."

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