The knowledge-based economy provides the platform to sustain a rapid rate of economic growth and improve international competitiveness to achieve the objectives of Vision 2020. This article focused to the role of IT in developing Malaysia into a knowledge based economy because it will also strengthen Malaysia’s capability to innovate; adapt and create local technology. Information technology (IT) will be the fundamental enabling tool which support by human capital to create, innovate, generate and exploit new ideas as well as apply technology and exercise superior entrepreneurial skills. Technology transformation is very important to ensure the connectivity to the rest of the world because it has a reliable infrastructure which encourages information and technology sharing.
Furthermore, IT development and communications technology will lead to better interaction among employees in any organizations and there will be active involvement of employees in contributing ideas and decision-making. This is important in order to develop the environment of knowledge based economy in Malaysia. It is because employee and skills is closely related as a “key assets” to introduce Malaysia throughout the world to be competitive. Other than that, access to networking is essential in obtaining and distributing knowledge and the Internet is a key driver of ICT especially in the development of E-based activities, resulting in new approaches to doing things.
The rapid creation and dissemination of knowledge and information on the back of advances in IT are changing the manner in which goods and services are produced and marketed, and investments are made. Trade and investment transactions are conducted on-line and are becoming increasingly virtual using IT. Other than that, several Malaysian portals and sites have been set up with regards to the development of local content in IT and multimedia. Incentives will be provided to individuals and institutions of learning to produce local content in local languages as well as to produce user-friendly software and appropriate Internet access technology. The private sector and NGOs will be encouraged to play a significant role in the area of content development.
(http://www.epu.gov.my/html/themes/epu/images/common/pdf/3rd_OPP_cont_chap5.pdf)
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