Creative Communities Capacity Building in Malaysia

Norshuhada Shiratuddin Universiti Utara Malaysia (Keynote Address)

Creative Industry International Conference 2015

4th Oct 2015 1

Outline

1. Defining Terms 2. Capacity Building Initiatives in Malaysia • Strategies • Funds • Programmes 3. Recent Success Examples 4. Readiness for future

Future Trend

Creative Communities: What is Capacity Building?

Earth Summit in 1992 – “Specifically, capacity building encompasses the country’s human, scientific, technological, organizational, institutional, and resource capabilities.” 4

Capacity Building Areas

1. The creation of an enabling environment with appropriate policy and legal frameworks • This would entail making legal and regulatory enabling organizations, institutions and agencies, at all levels and in all sectors, to enhance their capacities.

2. Institutional development • Institutional development would include the elaboration of management structures, processes and procedures at all levels to manage relationships within organizations and between different organizations, the public sector, private sector and the community.

3. Human resources development and strengthening of managerial systems • This process involves equipping individuals with the understanding, skills and access to information, knowledge and training that enable them to perform effectively.

5

Capacity Building Agents

• • Capacity building agents are crucial. These are normally: – organizations that provide consulting, training, resources, research, referrals and other services; – – grant makers - foundations and government organizations universities and academic centers that provide formal training and certification opportunities for individuals, conduct research and offer resource centers; – management consultants who provide expertise, coaching, training and referrals; – professional and other service providers who often play capacity building roles 6

Components of CB Initiatives

1. Implementation Components

– Policies and strategies – Relevant working committees such as a Board/Advisory Council

2. Program Components

– Comprehensive, and realistic, capacity building programs include components such as Professional Development, Certification, and Grants Program

3. Resources and Support Components

– Long-term financing and sustainable funds – Government or public funding resources – Loans, investment, grants and donations can 7

What is Content Industry?

• To date, there has been no universal definition •

Malaysia Communications & Multimedia Act 1998

defined ’ Content ’ in industry as: “Any sound, text, still picture, moving picture or other audio-visual representation, tactile representation or any combination of the preceding which is capable of being created, manipulated, stored, retrieved and communicated electronically.” 8

cont…

Content Industries are defined as: industry derived from the utilization of creativity, skills and individual talents of individual to create wealth and generate employment by producing and exploiting individual creativity.

Contents = Culture, Comm & MM

Traditional Medium Content Communication New Medium Content eContent

Creative Contents

Creative Industries Copyright Industries Content Industries Cultural Industries Digital Content

Advertising, Architecture, Design, Interactive, Software, Film and TV, Music, Publishing, Performing Arts Commercial Art, Creative Arts, Film & Video, Music, Publishing, Recorded Media, Data Processing, Software Pre-recorded music, Recorded, Music Retailing, Broadcasting & Film, Software, Multimedia Services Museums & Galleries, Visual arts & crafts, Arts Education, Broadcasting & Film, Music, Performing Arts, Literature, Libraries Commercial Art, Film & Video, Photography, Electronic games, Recorded Media, Sound Recording, Information storage & retrieval

Route to Creative Communities: The Case of Malaysia

Malaysia’s Strategy: MyICMS 886

• The MyICMS 886 - Malaysian Information, Communications and Multimedia Services 886

Strategy.

• Plan to drive forward in the delivery of advanced information, communications and multimedia services.

• 8 services, 8 infrastructures and 6 growth areas 13

MyICMS 886

• • • • • • • • Services Infrastructure Growth Areas High Speed Broadband 3G & Beyond Mobile TV Digital Multimedia Broadcasting •

Hard

Multiservice Convergence Networks 3G Cellular Networks • • •

Content Development

ICT Education Hub Digital Multimedia Receivers •

Soft

Satellite Networks • • Communication Devices Embedded Components & Digital Homes Short-Range generating growth in 6 areas that Communications Protocol (IPv6) • Foreign Ventures • Home Internet Adoption USP – Universal Service Provision • Information & Network Security .

• Product Design & Manufacturing 14

Growth Area: Content Development

GOALS

Encourage creativity Address for local content development New Demands Expected Results • Adequate local contents, reflecting the culture and values of the nation, and relevant global context Export Developed Contents • Export Revenue Promotions & Awareness Creation Develop skills & Competencies in IHLs Strategic Alliances

STRATEGIES

15

Creative Industry Policy: Malaysia

Creative Industry Plan: Indonesia

Creative Capacity Building Programmes in Malaysia

Example 1 : The Malaysia Animation Creative Content Centre (MAC3)

• Provide platform for Malaysian animators and visual effect artists to further develop the digital content industry in the country - equipped with the relevant technology infrastructure for animators to create their products, will also house a hostel.

• MAC3 is responsible to encourage the creation of more local content through dedicated funding set up exclusively for the purpose. In Aug 2007 MDeC flew in 20 international buyers from the United States, China, South Korea and Belgium under the new MSC Malaysia Buyer Fly-in programme.

• Compared to trade shows, the Buyer Fly-in programme is a more targeted effort as only potential foreign companies that are interested in buying local content are invited.

• The inaugural programme, cost RM300,000 but managed to achieve RM385 mil in creative content sales.

19

•

Example 2 : Technopreneur Pre-Seed Fund

Catalyzes the creation of local Technopreneurs and K-SMEs in ICT towards growing the local ICT Industry. • Addresses the funding gap at pre-seed stage and is expected to boost the development of commercially viable ICT projects and kick off a chain reaction in the creation of new local K-SMEs in ICT.

• Targeted for local content Technopreneurs. Only individuals are eligible to

apply, not existing companies.

• Offers up to RM150k of conditional funding to develop viable business plans into commercially focused ICT projects with prototype and detailed business plans suitable for venture funding & commercialization. • Recipients will also benefit from development, mentoring services and access to shared lab facilities at MSC Malaysia Status Incubators provided through MDeC’s Technopreneur Development programme.

20

Example 3 : Creative Cluster Competitions

21

Example 4 : MCC

• Malaysian Communications and Multimedia Commission, MCMC, working with various industry and government initiatives such as the Maxis Developer Programme, Ministry of Energy, Water & Telecmm and MDeC, has allocated RM20 million as an initial fund to help content developers start projects. • The Mobile Content Challenge - this push is reaching college students, expose students from institutions of higher learning to the world of content development. • The aim of the contest is to encourage students to develop mobile content and applications, identify and cultivate an innovative mindset among students and to nurture a community of young entrepreneurs who will develop Malaysian content. 22

Cont..MCC

• Each finalist is assigned a mentor to these young teams. who will guide and lend their expertise • The mentors have been selected from among leading members of the Maxis Developer Programme. • They include Metadome , K-channels , Infrasurf , LTT Global Communications , Orea Technologies , Forwen , Devcorptech , Integrit Sistem , Kasatria Technologies teams in the aspects of the technology, applications development, organizational management, marketing and commercial strategy, as well as business development. and Murasu Systems , who will guide the • Each team must also have a member of the academic staff institution as their advisor. of their 23

Example 5 : Creative Industry Lifelong Learning Programme

C oncern over the quality and skills of talent pool. It is to address these gaps that a Creative Industry Lifelong Learning Program through Training Grants was introduced.

PEMANDU allocated a budget specific for this program to address the talent gap that exists within the Creative Content Sector. MDeC acknowledges that there is an inherent talent and skills gap and we believe that a holistic model is required. The holistic approach would look into addressing the needs of the industry in a short to medium term timeline while taking into account the complexity of talent development for the creative content industry. It is with this realization that a model based on a LIFELONG LEARNING principle is applied in the implementation of the scheme.

Example 6 :

April 2012 MyCreative Venture is a government investment arm to spur Malaysia’s creative industry via strategic and innovative funding in a form of equity or debt investments.

www.mycreative.com.my/

Past Incentives: Malaysia

1.

RM 150 millions in 9 th Malaysian Plan (eContent) 2.

RM 20 millions MCMC - Networked Content Development Grant by 3.

RM 50 millions – Finas (Malaysian National Film Development Corporation)/KeKKwa (Ministry of Culture, Arts and Heritage) 4. MDeC (MM Develpmt Corp) Pre-seed fund, up to RM 150K/each 5. Investment by Media Prima and ASTRO amounting to RM 350 millions on content 6. Indirect financial incentives - licensee fee rebates 7. Malaysian Venture Capitalists 8.

9.

Millions Ministries Millions of Research and development grants and soft loans by of Scholarships and study loans 26

10

th

Malaysia Plan

RM500 million each to provide loans to workers and school leavers for training and skills upgrading 1. RM50 million to continue the matching grants for training and skills upgrading of small and medium enterprise employees 2. RM50 million to fund apprenticeships involving more than 8,000 students 3. RM50 million to co-sponsor employees to obtain industrial PhDs 4. RM350 million allocated to continue programme of partial financial assistance for PhDs in local universities (2011 2015)

Recent Incentives

• RM320 mil funds (2011-2015) for Creative Contents development

KATEGORI INDUSTRI KREATIF DAN KUMPULAN SASAR

Geran Industri Kreatif disasarkan kepada penggiat seni (individu), syarikat dan koperasi yang berkecimpung dalam 3 kategori industri kreatif berikut:

Industri Kreatif Multimedia

Penerbitan Filem dan TV Pengiklanan Seni Reka termasuk Games dan Virtual World Animasi dan Kandungan Digital Penerbitan Rencana Penerbitan eBook.

Industri Kreatif Seni Budaya

Seni Kraf Seni Visual Seni Muzik Seni Persembahan Penulisan Kreatif Fesyen dan Tekstil.

Industri Kreatif Warisan Budaya

Pemuziuman Pengarkiban Pemulihan Pemuliharaan

KRITERIA KHUSUS Industri Kreatif Multimedia

Menghasilkan produk multimedia yang berkualiti untuk pasaran tempatan dan eksport.

Melahirkan modal insan terlatih dalam bidang multimedia.

Menggalakkan perkongsian teknologi multimedia di peringkat serantau/antarabangsa.

Industri Kreatif Seni Budaya

Menonjolkan seni budaya masyarakat Malaysia.

Menghasilkan produk untuk pasaran dalam dan luar negara.

Meningkatkan kemahiran penggiat industri.

Meningkatkan penggunaan teknologi bagi menghasilkan produk yang lebih kreatif.

Industri Kreatif Warisan Budaya

Menonjolkan warisan budaya Malaysia.

Menjadi pusat daya tarikan pelancongan.

Meningkatkan penggunaan teknologi bagi menghasilkan produk yang lebih kreatif.

Other Initiatives

Other Initiatives

Other Initiatives

Other Initiatives

Success Examples

1. Malaysia-made animation series “Bola Kampung” to debut on Disney Channel

MSC Malaysia status company Animasia Studio's ( http://www.animasia-studio.com/html/main.html

) production, Bola Kampung, aired on Disney Channel from November 2007. The 26-episode series' debut on Disney Channel makes it the first 'Made-in-MSC Malaysia' production to feature on an international network.

In addition to the agreement, MSC Malaysia status companies secured deals in excess of RM60 million .

33 Source: Reed Business Information, a division of Reed Elsevier Inc.

34

Success Examples

2. SALADIN : The Made In Malaysia Animation

3D animation for television series - based on the real-life stories of a Muslim hero warrior named Salahuddin Al Ayubi in the 12th Century. Producer - MDeC - budget around RM10 million – broadcast in Al Jazeera Children's Channel, Astro and TV3 - won the Best Technology category at SICAF (Seoul International Cartoon and Animation Festival). Secured RM millions deals with Saudi Arabia.

- won the Tokyo Big Sight Award and animation.

International Anime Fair - award for excellence in 3-dimensional computer-generated imagery (3D CGI), special visual effects Source: http://www.saladin.tv/main.php

35

inspired by the life Salah Al-Din Yusuf Ibni Ayub, the Islamic hero who united Muslims in the holy war against the Crusaders in the 12th century

36

Others on Disney and Astro: Upin & Ipin

Since 2007 - now TOP 5 World: most visited 1. Dr House 2. Mr Bean 3. Dory 4. Patrick Star 5. Upin & Ipin Best Animation, International Film Festival

Others on Disney, Astro, Global TV, CBCTV8 (15 countries): BoBoiBoy

Recent Film

• • • • • Hikayat Merong Mahawangsa (The Malay Chronicles: Bloodlines An ancient Malay literature, Kedah ruler CGI techniques 72 countries including United Kingdom, Jerman, Rusia, Perancis and middle east MOSTI (Kementerian Sains, Teknologi dan Inovasi) through eContent funds

Recent

• • • • SeeFood by Silver Ant Sdn. Bhd Aired in more than 90 countries (USA, Europe, Latin America and Asia) – 100% local manpower.

Funded by the Ministry of Science, Technology and Environment. Won 3 awards .

Indonesia Creative Economy

• Growth (2011) – Games (16.7%) – Software (15.4%) – TV (10.6%) – Advertising (8.2%) – Other arts (8.0%) –

Film/Animation ?

Revisit …past challenges, on going initiatives, future readiness

Malaysia 2007 Challenges

Source: Roslan (2007) 43

Content Market Size: Malaysia

• 2007-2009, Malaysian market size is approximately

RM 3- 4 billions/year

– Film – – TV Content Business Content – – Education and training Games • MDeC - Malaysia companies recorded revenues totaling generated from the domestic market.

RM6.1 billion

(US$1.95 billion) in 2011, out of which exports accounted for RM3.65 billion (US$1.17 billion) while the remaining RM2.45 billion was revenue The Malaysian Government has also recognized the high potential of this sector and recently announced the formation of MyCreative Ventures, which is supposed to get RM200 million (US$65 million) for the creative multimedia sector.

44

http://www.industrikreatif.gov.my/

•

Latest Quote

Today, Malaysia has developed its industry into a very strong positioning where its local content demand is now bringing significant revenue to many local animation and film producers, as well as becoming “exportable quality” contents worldwide, etc... • The Malay Chronicles: “Bloodlines”, “Mantera”, “SeeFood”, “Geng: The Adventure Begins”, “Saladin: An Animated Series”, “Bola Kampung”, “Bala Bowl”, “Supa Strikas”, “Boo & Me”, “Mustang Mama”, “Upin & Ipin”, just to name a few. • Malaysia is now known as a very attractive and stable economy for content development, as there's an abundance of English-speaking creative multi racial talent pool, aggressive government support, state-of-the-art studio infrastructures, as well as a relatively affordable venue for world-class studio operations.

•

Personal Note

Creative content industry - high impact economic growth area to its gross domestic product, the commitment and support from the government and financial institutions have gradually risen.

• The growth in content development - complemented by various funding and incentives, leading-edge studio facilities, strong creative talents, culturally-adapt multi-racial society, supportive government and a competitive economy.

•

Creative economy – infuse culture, communication and multimedia.

Thank you

48

• • • • • • • • • •

References

Dasar Kreatif Negara Malaysia (2010). KPKK.

Jo Timbuong (2007). MDeC boosting creative content growth, Tuesday August 28, 2007, Star.

Md Sidin Ahmad Ishak & Amira Saryati Firdaus (2006). Importance Of Capacity Building For The Digital Content Industry In Malaysia, University Malaya.

Roslan Mohamad (2007). Incentives For Malaysian Content Development, Content and Industry Development My ICMS, Technology and Standard Division, Malaysian Communications & Multimedia Commission.

Rosli Mohd. Nordin (2012). Transformasi Industri Kreatif Negara, Dewan Ekonomi, DBP.

Telkom, Indonesia web site MCMC web site My Creative Content web site MDeC web site Indonesia Kreatif web site 49