The Multimedia Development Corporation (MDC) has suffered losses amounting to RM124 million since it was established by the government in 1996 to spearhead the development and implementation of the Multimedia Super Corridor (MSC).

Parliamentary secretary to the Finance Ministry Hashim Ismail revealed the figure to malaysiakini at the Parliament lobby today.

Earlier in the House, he had replied a question from Dr Syed Azman Syed Ahmad Nawawi (PAS-Kuala Terengganu) o­n new measures by the government to realise the MSC project.

MSC-status companies

The breakdown provided by Hashim shows that the government-owned corporation has suffered losses of more than RM10 million every year.

Its highest loss was in 2000, at RM28 million. In 2001, it lost RM21 million. while last year it recorded a RM17 million loss. ( See chart )

Asked to comment o­n this, Hashim took the view that the MDC's profits are "intangible".

"We can't just assess profit or loss in financial terms. The MDC's intangible profit are that it has managed to attracted 56 world-class or MSC-status companies to Malaysia, such as Ericsson and Motorola," he said.

"Since the MDC was set up, 33 MSC-status companies based in Singapore have also moved their headquarters to Malaysia."

MSC status is the recognition awarded by the government through MDC to companies that participate and undertake information, communication and technology (ICT) activities. MSC-status companies are entitled to government incentives and benefits.

Funding to continue

Hashim also told malaysiakini that government funding to MDC amounted to an average of RM110 million every year.

He said the funding would not be terminated, even though the corporation has been suffering losses.

"We will o­nly stop funding the corporation when it is (capable of) self-financing," he said, adding that no time frame has been set for this.

On how the government would improve the situation, the parliamentary secretary said the government would help the corporation to "divest and consolidate" MDC subsidiaries.

Earlier in his reply, Hashim told the House that the current MDC structure was able to carry out the function and roles of the corporation as a catalyst for ICT development.

The MDC aims to become a 'one-stop supershop' to facilitate applications from multinational and local companies to relocate to the MSC.

It also facilitates company operations within the MSC. For most business requirements, MSC-status companies need not seek approval from other government agencies, but need o­nly apply to the MDC for this.

The MSC was conceptualised to accelerate Malaysia into the information age and through that, to help realise the objectives of Vision 2020. The project was mooted by Prime Minister Dr Mahathir Mohamad.