Friday 3 February 2023

Cyberjaya: Malaysia’s Failed Silicon Valley?

Cyberjaya was once the pride of Malaysia, as it was to be the Multimedia Super Corridor’s (MSC) first intelligent digital city, commissioned by the Federal Government of Malaysia in the late 90s. While there have been major improvements to Cyberjaya, it isn’t exactly comparable to Silicon Valley in the United States. An article by Insider was recently published with the following view:

 “Cyberjaya, located just outside of the capital city, Kuala Lumpur, was once dubbed the Silicon Valley of Malaysia. But today, the city has been slammed as a failure by media outlets and think tanks.” This came after the author of the article had visited Cyberjaya late 2022 and reviewed a shipping container hotel there.

While more than 100,000 people live in the city, it doesn’t have the start-ups and big tech headquarters that its California counterpart does. Instead, it’s a place where satellite offices, and data and call centres are set up. Those who work at these places are said to be earning USD$365 (RM1,563.84) a month. Cyberjaya was described as a city with lush greenery, dead malls and a gated community where some of the city’s wealthiest people live.



Source: https://ms.wikipedia.org


In its journey to remain competitive as a Global Tech Hub, Cyberview Sdn Bhd was mandated by the Government to revitalise Cyberjaya through the introduction of a new masterplan in 2019. 

The company has also taken on the role of a tech hub developer which will see the integration of five key elements - facilities, community, activities, experience, and incentives. 

Nevertheless, Cyberjaya has the highest concentration of tech companies, talent and creators in Malaysia owing to its tech ecosystem. Apart from the multinationals (Dell, DHL, Huawei and others) the city has home-grown talents like Aerodyne, IX Telecom, Monsta and Wau Animation. 

The most recent significant entry is Microsoft, who will be developing its data centre with a total investment of USD4.6 billion in new revenues. Additionally, Microsoft and its partners are estimated to contribute more than 19,000 direct and indirect jobs. Microsoft’s presence in Cyberjaya is an encouraging development and certainly provides a boost for the new masterplan that will see the creation of three tech clusters within the South Innovation Zone.

From the total of developable land in Cyberjaya, 1,063 acres or 29% are still available for future development. Cyberjaya is the only location in Malaysia that offers developers attractive potentials that comes with enterprise land category. Enterprise land generally offers lower plot ratio, which provides a distinct advantage for developers in offering office spaces at competitive rates.

In 2017, the World Economic Forum named Bangalore the world’s most dynamic city, based on factors including innovation and technology. Bangalore, the capital of Karnataka is the favorite destination for IT job seekers. It is also known as the “Silicon Valley of India”. The original Silicon Valley, situated in the southern San Francisco Bay Area of California, is home to many start-ups and global technology companies like Apple, Facebook and Google.
Malaysia should learn from Bangalore’s success to become a second Silicon Valley. That’s according to DAP veteran Lim Kit Siang. Bangalore has the highest number of engineering colleges than any other city in the world. Karnataka is a prime centre of learning with 16 universities, 133 medical training institutions, 134 engineering colleges and 712 colleges. It is the ‘science centre’ of India with over 100 research and development centres and has become a hub for Startup culture.

So, is Cyberjaya a failed Silicon Valley? It has facilities, land, pleasing greenery and many homes for the wealthy. But that is not the ingredients for a tech or Silicon Valley. Bangalore is a good example to emulate – we need the ecosystem for top research universities in the sciences and engineering; hub centres for medicine, pharmaceuticals, IT, AI, robotics and the like; the ease of entry for foreigners in these areas and the pursuit of STEM education could provide jobs in Cyberjaya. The “drag” so far has been the “nationalistic” policies. Unfortunately, “real” tech valleys don’t recognise our blinkered views. Good luck Cyberjaya – look at people rather than physical facilities. Start-ups are owned by smart people, not smart buildings!

References:
Cyberjaya dubbed Malaysia’s failed Silicon Valley, Renushara, worldofbuzz.com, 24 January 2023

Cyberjaya: A tech city for all, Cynthia Ignatius, businesstoday.com, 28 Feb 2022

Reflecting on failed MSC plan, Kit Siang urges Malaysia to follow Bangalore’s lead, R. Loheswar, malaysia.news.yahoo.com, 6 Aug 2019

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