Role of ICT
The advances in information and communication technologies (ICT) have raised new opportunities for the implementation of novel applications and the provision of high quality services over global networks. The aim is to utilize this “information society era” for improving the quality of life of all citizens, disseminating knowledge, strengthening social cohesion, generating earnings and finally ensuring that organizations and public bodies remain competitive in the global electronic marketplace (Hesson & Al-Ameed, 2007).
Developed economies are identified with countries that properly use technology for the creation of wealth and less developed economies are identified with countries lacking technological know-how necessary to create wealth (Khalil, 2000). As such, a proper management of technology also includes low-tech to high-tech to super-high technologies. Khalil (1993) asserted that a proper management of low or medium level technologies can still create a certain competitive advantage and be effectively used for wealth creation. This is especially evident in newly industrialized countries (NICs) such as Taiwan, Korea, Singapore and Malaysia.
In Malaysia, ICT has assimilated into people’s lives in many ways such as communication, logistics or in their working environment. Malaysia has invested enormously in ICT over the years. For example in the Ninth Malaysian Plan (2006-2010), a total of US$6 billion was allocated for enhancing ICT diffusion throughout the country. This shows the importance given by the country for ICT accelerate the economic competitiveness of Malaysia (Kuppusamy et al.2009).
Impact of ICT on Economic Growth
Solow (1957) through his famous seminal research on the contribution of technology on productivity growth in the US had sparked great interest among scholars on the relationship between technology and economic progress.
Since then, various firms, industries and countries have undertaken studies to find out more on the relationship between technology and economic growth.
Based on the study of Jalava and Pohjola (2002), both the production and use of ICT have been the factors behind the improved economic performance of the United States in the 1990s. A further research done by Jalava and Pohjola (2007) proves that the ICT’s contribution to the economic growth of Finland was three times larger than the contribution of electricity industry.
In relation to the study done on Korea’s economic development from 1996-2001, it is proven that Korea’s economic development in the 20th century are mainly due to the growth of industries related to ICT and also the government’s treatment of ICT as a strategic focus for future development (Lee, 2003)
Kuppusamy and Shanmugam (2007) examined the impact of ICT on Malaysia over the periods of 1983-2004 and reveals that ICT investment has statistically improved Malaysia’s economic growth. Antonopoulos and Sakellaris (2009) investigated the impact of ICT on Greece and found that the ICT has increased the total factor productivity and also benefited the finance, real estate and business services industries and the wholesale and retail industries in Greece.
This case study sets out to describe the approach adopted by the Malaysian government in enhancing the usage of ICT in the country. In particular, this case study will focus on the success of the newly introduced E-government services in Malaysia that is the E-filing System.