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Page | i Development Issues for the Creative Economy in Malaysia PhD Thesis Siti Suriawati Isa n6181228 Creative Industries Faculty Queensland University of Technology Submitted in full requirements for the degree of Doctor of Philosophy 2012

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Page 1: Development Issues for the Creative Economy in Malaysia

Page | i

Development Issues for the Creative Economy in Malaysia

PhD Thesis

Siti Suriawati Isa

n6181228

Creative Industries Faculty

Queensland University of Technology

Submitted in full requirements for the degree of Doctor of Philosophy 2012

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Keywords

Animation, museums, creative economy, experience industries, creative industries Malaysia.

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Abstract

Cultural tourism and creative industries have intersecting policy agendas and economic

interdependencies. Most studies of the creative industries have focused on western countries.

Cultural tourism is rarely included. However the arrival of the creative economy and its

movement through developing countries has changed the relationship. Supporters of the

creative economy now see fit to include tourism.

This thesis addresses the development of the creative economy in Malaysia. The thesis

conducted case studies on animation and museum sectors in Malaysia. These two case

studies provide information on the development of creative economy in Malaysia. The study

found that a top-down cultural management approach is being practised but that Malaysia is

now influenced by new ideas concerning innovation and technical creativity. The study

examined whether or not technical innovation by itself is enough. The reference points here

are the Multimedia Super Corridor in Cyberjaya and other similar projects in the region. The

museum case study was situated in Malacca. It showed that museums needed to adapt new

media and new experiences to remain relevant in today’s world. In applying a case study

approach, the thesis made use of interviews with key stakeholders, as well consulting

numerous policy documents and web sites.

Both case studies imitated similar products and services in the market but added local

characteristics. This research project contributes significantly to the existing body of

knowledge in the field of creative economy within the context of developing countries. Finally

the thesis makes recommendations for Malaysia to better position itself in the regional

economy while retaining its distinctive cultural identity.

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Acknowledgements

This section acknowledges all the people who were directly or indirectly involved in my PhD journey at

QUT. First and foremost, I offer my humble gratitude to Allah for making all of this happen. Secondly, I

would like to thanks my parents, Siti Aishah Tafazul, and Isa Hashim, my gorgeous daughter, Siti

Nurellyza Suria Ab Rahim, my three beautiful sisters, Siti Sabariah Isa, Siti Sarah Isa and Siti Salwa

Isa, my lovely brothers and brothers-in-law, Mohd Hasni Isa, Mohd Husna Isa, Mohd Husba Isa, Ahmad

Fuad Hassan, Izzuddin Loi-Abdullah, Abu Ali and other family members and relatives for their great

support, encouragement and prayers while I worked on my PhD.

Importantly, I am totally indebted to my Principal Supervisor, Associate Professor Michael Keane and

Associate Supervisor, Professor Greg Hearn for their valuable contribution towards my thesis. Without

them I would not have been able to finish my study. I will always remember their kindness and

willingness to take me under their wings. I also would like to express my gratitude to my employer in

Malaysia, Universiti Putra Malaysia, and all the staff at the Faculty of Economics and Management,

specifically the Department of Hospitality and Recreation, my sponsor, the Ministry of Higher Education,

Malaysia, and the Creative Industries Faculty of the Queensland University of Technology for all their

great support and assistance throughout my study. I also thank all of the staff at the two organisations

involved in my case studies: Les’Copaque Production Sdn. Bhd., and the Malacca Museum

Corporation. Their kind assistance and support is very much appreciated. Also, I thank the International

Support Services staff—Nazrin Rashid, Graeme Baguley Andy Ng, and Don Foster—for helping me

significantly in completing this research. I thank my Malaysian community in Brisbane and Queensland,

and finally, my friends, specifically Naza Amit and Eric Shelton, my relatives Jessine Izz-Loi, Siti

Jessmine Izz-Loi, Aini Zainol, and great research colleagues (Cindy, Natalie, Tim, Cori, Donna, Jaz,

Clare, Rachael, Joy, Mike and Asti), my dearest friend, Susan Gasson at the RSC, who has always

believed in me, and other QUT staff members, in particular, Kate Simmonds and Professor Caroline

Hatcher. Thank you very much for all your kindness and in putting up with me through thick and thin. All

of you have made this possible, and I will surely miss all of you after this.

Words cannot express how grateful I am for what you all have contributed towards my research.

May Allah bless all of you. TERIMA KASIH.

A friend cannot be considered a friend until he is tested in three occasions: in time of need, behind your back, and after your death

(Ali ibn abi Talib)

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Statement of Authorship

The work contained in this thesis has not been previously submitted to meet requirements for an award at this or any other higher education institution. To the best of my knowledge and belief, the thesis contains no material previously published or written by another person except where due reference is made.

Signature

Date

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Table of Contents

Keywords .......................................................................................................................................... ii 

Abstract ........................................................................................................................................... iii 

Acknowledgements ......................................................................................................................... iv 

Statement of Authorship .................................................................................................................. v 

Table of Contents…………………………………………………………………………………………………………………………...vi 

List of Tables and Figures...................................................................................................................x 

Abbreviations and Glossary...............................................................................................................xi 

1. THE CREATIVE ECONOMY IN MALAYSIA ........................................................................................ xi 

1.1 Introduction to Creative Economy ................................................................................................... 1 

1.2 Research Problem ............................................................................................................................ 2 

1.3 Research Methodology .................................................................................................................... 3 

1.4 The Development of Creative Economy in Malaysia ....................................................................... 4 

1.5 Cultural Tourism ............................................................................................................................... 5 

1.5.1    Creative Tourism ............................................................................................................... 6 

1.6 Creative Industries: A Discussion ..................................................................................................... 7 

1.6.1    Creative Industries and the Cultural Industries ................................................................ 8 

1.6.2    Creative Industries and the Experience Industries ........................................................... 8 

1.7 Research Outline .............................................................................................................................. 9 

2. THE LITERATURE ON CREATIVE SECTORS ..................................................................................... 11 

2.1 Introduction to the Creative Economy .......................................................................................... 11 

2.2 Domains of Creative Activity .......................................................................................................... 12 

2.2.1    Scientific, Economic, Technological, & Cultural Creativity .............................................. 14 

2.3 Economic Creativity ....................................................................................................................... 14 

2.3.1    The Differing Creative Economies in Developing Nations .............................................. 15 

2.3.2   Creative Industries: New and Untested Ideas ................................................................. 16 

2.4 Technological Creativity ................................................................................................................. 18 

2.4.1    Content Industry ............................................................................................................. 20 

2.4.2    Cultural Creativity ........................................................................................................... 21 

2.4.3    Cultural Tourism .............................................................................................................. 23 

2.5 Conclusion ...................................................................................................................................... 24 

3. CREATIVE ECONOMY DEVELOPMENT IN MALAYSIA ..................................................................... 26 

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3.1 The Malaysian Experience in Developing a Creative Economy ..................................................... 26 

3.2 Developing Malaysia’s Creative Economy ..................................................................................... 26 

3.2.1    Vision 2020 and the Knowledge Economy ...................................................................... 28 

3.2.2    The Content Industry in Malaysia ................................................................................... 31 

3.2.3    The Animation Sector in Malaysia .................................................................................. 34 

3.2.4    Cultural tourism sector ................................................................................................... 37 

3.2.5    The relationship between cultural tourism and creative industries ............................... 40 

3.2.6    Cultural protection .......................................................................................................... 41 

3.2.7    Global Versus Local Culture ............................................................................................ 43 

3.3 Conclusion: Positioning Malaysia in Creative Economy ................................................................. 46 

4. RESEARCH METHODS .................................................................................................................. 49 

4.1 Data Collection ............................................................................................................................... 49 

4.2 Case Study Organisations ........................................................................................................... 50 

4.3 Rationale for Selection of Case Studies ......................................................................................... 52 

4.4 Case Studies: Recruitment and Time Line ...................................................................................... 53 

4.4.1  Ethical considerations ...................................................................................................... 53 

4.5 The Interview Process .................................................................................................................... 54 

4.6 Interview Analysis Procedure......................................................................................................... 55 

4.7 Conclusion ...................................................................................................................................... 55 

5.  CASE STUDY ONE: LES’COPAQUE PRODUCTION SDN. BHD. ...................................................... 56 

5.1 Introduction ................................................................................................................................... 56 

5.2 Comparison of Cyberjaya, Malaysia and Cyberport, Hong Kong ................................................... 56 

5.2.1  The development of Cyberjaya, Malaysia ........................................................................ 57 

5.2.2  The development of Cyberport, Hong Kong .................................................................... 59 

5.2.3  The similarities between Cyberjaya and Cyberport ......................................................... 61 

5.2.4   The differences between Cyberjaya and Cyberport ........................................................ 61 

5.2.5    Conclusion on Cyberjaya and Cyberport ......................................................................... 62 

5.3 RQ1: What Are the Main Operational Issues for Malaysian Creative Economy Enterprises? ....... 64 

5.4 RQ2: What is the development path for Malaysian creative economy enterprises? .................... 75 

5.5  RQ3:  How  do Malaysian  creative  economy  enterprises  utilise  traditional Malaysian  cultural 

assets? .................................................................................................................................................. 79 

5.6 RQ4: How can Malaysia position itself in the creative economy in the region? ........................... 81 

5.7 Conclusion ...................................................................................................................................... 85 

6. CASE STUDY TWO: MALACCA MUSEUM CORPORATION .............................................................. 86 

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6.1 Introduction ................................................................................................................................... 86 

6.2  Comparison  between  Malacca  Museum  Corporation,  Malaysia  and  Museum  of  Vancouver, 

Canada ................................................................................................................................................. 86 

6.2.1   The development of Malacca Museum Corporation (PERZIM) ....................................... 87 

6.2.2  The development of the Museum of Vancouver ............................................................. 89 

6.2.3   Comparing Malacca Museum Corporation and Museum of Vancouver ......................... 90 

6.3 RQ1: What are the main operational issues for Malaysian creative economy enterprises? ........ 94 

6.4 RQ2: What is the development path for the Malaysian creative economy enterprises? ........... 106 

6.5  RQ3:  How  do Malaysian  creative  economy  enterprises  utilise  traditional Malaysian  cultural 

assets? ................................................................................................................................................ 109 

6.6 RQ4: How can Malaysia position itself in the creative economy in the region? ......................... 110 

6.7 Conclusion .................................................................................................................................... 115 

7.  DISCCUSSION OF CREATIVE ECONOMY DEVELOPMENT IN MALAYSIA IN THE CONTEXT OF TWO 

CASE STUDIES ............................................................................................................................... 116 

7.1 Introduction ................................................................................................................................. 116 

7.1.1    RQ1:  What  are  the  main  operational  issues  for  Malaysian  creative  economy 

enterprises? – Les’Copaque Production ........................................................................................ 117 

7.1.2:  RQ1:  What  are  the  main  operational  issues  for  Malaysian  creative  economy 

enterprises? Malacca Museum Corporation ................................................................................. 125 

7.1.3    RQ2: What is the development path for Malaysian creative economy enterprises? ... 130 

7.1.4:   RQ3:  How  do  Malaysian  creative  economy  enterprises  utilise  traditional  Malaysian 

cultural assets? .............................................................................................................................. 136 

        7.1.5: RQ4: How can Malaysia position itself in the region's creative economy?..........................143  

7.2 Conclusion .................................................................................................................................... 151 

8. FINAL REMARKS ON THE DEVELOPMENT OF MALAYSIA’S CREATIVE ECONOMY ........................ 153 

8.1 Conclusion and Recommendations .............................................................................................. 153 

8.2 Creative Economy Development in Malaysia .............................................................................. 155 

8.2.1 Cultural tourism in Malaysia ................................................................................................. 156 

8.2.2 Digital content sector in Malaysia ......................................................................................... 159 

8.2.3 Other important issues ......................................................................................................... 163 

8.2.4 Malaysia’s position in the global creative economy ............................................................. 165 

8.3 Recommendations ....................................................................................................................... 167 

8.3.1 Recommendations for future researchers ............................................................................ 168 

8.4 Study Limitations.......................................................................................................................... 169 

Reference List ............................................................................................................................... 170 

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Appendix 1: Lat: The Kampung Boy ............................................................................................... 189 

Appendix 2: Malaysia Content Industry (Entertainment) Production ............................................. 190 

Appendix 3: Interview questions for Les’Copaque Production Sdn. Bhd. (LCP) and Malacca Museum 

Corporation (PERZIM) ................................................................................................................... 191 

Appendix 4: Interview questions for Les’Copaque Production Sdn. Bhd. (LCP) and Malacca Museum 

Corporation (PERZIM) Management ............................................................................................. 192 

Appendix 5: The “Sleepover @ the Museum Programme” at Malacca Maritime Museum Newspaper 

Article ........................................................................................................................................... 193 

Appendix 6: QUT Ethical Clearance Approval ................................................................................ 195 

Appendix 7: Cyberjaya the Capital City for Malaysia MSC Project Map .......................................... 196 

Appendix 8: Cyberport the ICT city for Hong Kong ......................................................................... 197 

Appendix 9: Les’Copaque Content Products – DVD and VCD Series ............................................... 198 

Appendix 10: PERZIM Museums Listing until 2011 ........................................................................ 199 

Appendix 11: Museum of Vancouver new vision and strategic plan for 2008‐2011 ........................ 200 

Appendix 12: Film Tourism Impact on Popular Locations ............................................................... 201 

Appendix 13: KRU Multilingual Epic Movie 2011: The Malay Chronicle: Bloodliners ...................... 202 

Appendix 14: Number of Visitors to Malacca Museum Corporation (PERZIM) Museums for the Year 

2000‐2010 ..................................................................................................................................... 203 

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List of Tables and Figures

Table 1.5.1: The relationship between cultural and creative forms of tourism ........................... 6 

Figure 2.2: Domains of creative activity ................................................................................... 13 

Table 3.2: The Top 10 international tourism destinations in 2009 ........................................... 27 

Table 3.2.2: MSC Milestone and Targets ................................................................................ 33 

Table 3.2.3a: Importation of Films in Malaysia from 2005-2011 (January) .............................. 35 

Table 3.2.3b: Malaysia Local Film Production Statistics 2003-2010 ........................................ 36 

Table 3.2.7: Consensus and Controversy Relating to Globalisation ........................................ 44 

Table 4.3: The Differences and Similarities between Les’Copaque Production Sdn. Bhd. and

Malacca Maritime Museum. ..................................................................................................... 52 

Figure 5.3a: Les’Copaque Production 3D Animation Movie Poster ......................................... 64 

Table 5.3: Respondents Profile for Les’Copaque Production Sdn. Bhd. ................................. 65 

Figure 5.3b: Dress theme day “Headwear” .............................................................................. 67 

Figure 5.3c: Les’Copaque Production Operation Building in Shah Alam ................................. 69 

Figure 5.3d: Les’Copaque main characters consisted of three major ethnic in Malaysia ........ 70 

Table 5.4: RQ3 - Animated films produced in Malaysia ........................................................... 77 

Figure 6.2.3: Museum of Vancouver ........................................................................................ 92 

Figure 6.3a: Port De Lama Replica Ship in Malacca ............................................................... 94 

Table 6.3: Respondents Profile for Malacca Maritime Museum .............................................. 95 

Figure 6.3b: Sleepover@ Museum program at Malacca Maritime Museum ............................ 99 

Figure 7.1.1. Boboiboy 3D animated television series produced by Animonsta Studio ......... 122 

Figure 7.1.2: Popular attractions in Malacca: Taming Sari Tower and Eye on Malacca ........ 128 

Figure 7.1.4: Saladin produced by MDeC and Al-Jazzera ..................................................... 141 

Table 7.1.5: Domains of Creative Activity (Modified) ............................................................. 149 

Figure 7.1.5: Alamaya: Garden of Beautiful Creatures by Shock3D ...................................... 150 

Figure 8.2.2: Computer game character by Igloo Digital Arts ................................................ 162 

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Abbreviations and Glossary

3D 3 Dimension

AM Bank Arab Malaysian Bank

ASEAN Association of Southeast Asian Nations

ASTRO All-Asian Satellite Television and Radio Operator

ASWARA National Arts, Culture and Heritage Academy

CEO Chief Executive Officer

CFZ Cyberjaya Flagship Zone

CGI Computer Generated Imagery

CPM Communist Party of Malaya

CUCMS Cyberjaya University College of Medical Sciences

DCMS Department for Culture, Media, and Sport

FINAS National Film Corporation

Glocal A mixture between global and local culture

ICT Information, and Communication Technology

ICOM International Council of Museums

IP Intellectual Property

IT Information Technology

LCP Les’Copaque Production

LUCCT Limkokwing University College of Creative Technology

MDeC Multimedia Development Corporation

METI Ministry of Economy, Trade and Industry

MICC Ministry of Information, Communication and Culture

MITI Ministry of International Trade and Industry

MMM Maritime Museum Malacca

MMU Multimedia University

MOHE Ministry of Higher Education

MOSTI Ministry of Science, Technology and Innovation

MoTOUR Ministry of Tourism

MoV Museum of Vancouver

MSC Multimedia Super Corridor

PCT Patent Cooperation Treaty

PERZIM Malacca Museum Corporation

PETRONAS Petroliam Nasional Berhad

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R&D Research and Development

RTM Radio Television Malaysia

SMEs Small Medium Enterprises

UiTM Universiti Teknologi Mara

UM Universiti Malaya

UN United Nations

UNCTAD United Nations Conference on Trade and Development

UNESCO

United Nations Educational, Scientific and Cultural

Organisation

UniKL Universiti Kuala Lumpur

UNIMAS Universiti Malaysia Sarawak

UPM Universiti Putra Malaysia

USM Universiti Sains Malaysia

UTEM Universiti Teknikal Malaysia

VCD video compact disc

Vision 2020 Malaysia target to reach developed country status by

the year 2020

WIPO World Intellectual Property Organisation

WTO World Tourism Organisation

Yang di-Pertuan Agong Malaysian King

YTL Corporation Berhad Yeoh Tiong Lay Corporation Berhad

ZHA Film Zahim Albakri Film

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1. THE CREATIVE ECONOMY IN MALAYSIA

1.1 Introduction to Creative Economy

The Multimedia Super Corridor is envisaged as the leading edge of a new national strategy for Malaysia to achieve the goals described in our country's vision 2020.

(Mahathir, 1996a)

This chapter outlines the key themes of this study, and introduces the research problem and

the research methodology. This is followed by background information on the development of

creative economy in Malaysia, along with a brief introduction to cultural tourism and creative

content industries. The final section provides a chapter outline.

According to United Nations Conference on Trade and Development (UNCTAD) (2004; 2008),

creativity and innovation have reshaped the overall pattern of cultural production and trade

worldwide (UNCTAD 2008, iii). In fact, all sectors of the economy now need to address these

elements to stay competitive and sustainable. Countries such as the United States (US) and

United Kingdom (UK) are at the forefront in these sectors, while developing nations in Asia

and Africa regions are significantly behind.

With the intervention of the United Nations (UN), however, more focus has been given to

developing regions. Nevertheless, data on developing nations is still problematic and

considerably limited. Many countries differ in their understanding of the creative economy

(UNCTAD 2008, 4) which at times has led to the use of different terms, including cultural

economy, and experience economy. UNCTAD (2008) has noted the problems in defining this

concept lay in its multi-disciplinary nature, situated amid economics, culture and technology.

Due to the infancy of this concept as a policy idea rather than an academic field, research on

this topic has concentrated on certain countries and on a limited scope. UNCTAD (2008, 16)

reported that the development of policy has been active in developed countries for the past

ten years; for developing countries, however, development and recognition has been more

recent. Gibson and Kong (2005) identified the uneven geographies of academic work, and the

need for future study to move beyond an American or European focus. Work by Barrowclough

and Kozul-Wright (2008) (Africa), Keane (2007) (China), and UNCTAD (2004; 2008)

(developing nations in general), has sought to redress this imbalance by focusing on

developing nations. Further research is much needed.

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This study adopts the broad definition coined by UNCTAD (2008, 4) on creative economy:

...an evolving concept based on creative assets potentially generating economic growth and development; it can encourage income generation, job creation and export earnings while promoting social inclusion, cultural diversity and human development; it embraces economic, cultural and social aspects interacting with technology, intellectual property and tourism objectives; it is a set of knowledge-based economic activities with a development dimension and cross-cutting linkages at macro and micro levels to the overall economy; it is a feasible development option calling for innovative multidisciplinary policy responses and interministerial action; and at the heart of the creative economy are the creative industries.

Although a consensus on the definition of creative economy is still subject to an ongoing

debate, there seems to be a common ground on the two most important/significant elements

of the concept; namely, creativity and industries. In other words, creative economy is the

umbrella for creative and cultural activities. Hence, this study examines the term creative

economy as it is used and applied within the Malaysian context, and is illustrated by two case

studies. Additionally, this study uncovers issues pertaining to the development of a creative

economy. Whilst other terms used to describe aspects of the creative economy such as,

content, cultural and experience industries may be used where appropriate, this research

focuses on creative economy as an inclusive term with a wide international mandate.

1.2 Research Problem

The creative economy in Malaysia is the primary focus of this research, and involves data

from two case studies conducted in Malaysia. The Malacca Museum Corporation (PERZIM) is

a long standing public cultural organisation that is embarking on a renewal strategy on their

museums. Les’Copaque Production (LCP) is a new digital animation company situated within

the Multimedia Super Corridor (MSC). These two cases are compared with similar sites in

Hong Kong and Vancouver.

The main objective of this study is to explore the key issues underlying the creative economy

through the development of two relevant sub-sectors—namely cultural tourism and creative

industries sectors—as experienced by two organisations in Malaysia. As the concept of a

creative economy is an area which is still under researched in Malaysia, this study hopes to

illuminate and provide further insights into the subject matter that can contribute to the exiting

body of knowledge. Therefore, the following four research questions will be investigated:

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RQ1: What are the main operational issues for Malaysian creative economy enterprises?

RQ2: What is the development path for Malaysian creative economy

enterprises? RQ3: How do Malaysian creative economy enterprises utilise traditional

Malaysian cultural assets? RQ4: How can Malaysia position itself in the creative economy in the region?

RQ1 is answered in the forms of seven themes arising from the interviews with key informants

in each case. For RQ2, RQ3 and RQ4 are answered holistically, based on the comparative

analysis of similar cases of this study in Hong Kong and Vancouver, as well as the key

informant interviews and desktop research.

1.3 Research Methodology

To date, research into the creative economy in Malaysia has been poorly documented. This

research utilises qualitative methods, case studies and face-to-face interviews. In particular,

case study methodology has been chosen to examine how LCP and PERZIM develop their

products and services.

Secondary data also is used throughout the research process, and consists of the official

websites of LCP, PERZIM and other Malaysian government and private organisations

involved directly in this study, including the Ministry of Information, Communication and

Culture (MICC) and Multimedia Development Corporation (MDeC). Other documents also are

consulted, including the Malaysia Multimedia Super Corridor (MSC) policy document, and

United Nations Conference on Trade and Development (UNCTAD) and United Nations

Educational Scientific and Cultural Organisation (UNESCO) reports. Analysis of these

materials identified the key issues and themes related to the case studies, and assisted in

formulating interview questions posed to the respondents. This revealed detailed information

about their experience in the development of creative sectors in Malaysia.

Earlier, pilot case studies were undertaken to choose the two most suitable organisations for

this topic. LCP and PERZIM were selected because they fit the criteria set by this study. The

former is a private animation production company, and the latter is a state government

museum corporation. To remain competitive in their respective markets, both organisations

use a combination of culture, creativity, innovation and technology in their products and

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4

services. As a result, currently they are the leading market players in the country, and in the

Southeast Asian region. More discussion and justification for choosing the two case studies is

presented in the methodology chapter.

The mixed methods used in this research will overcome the weakness of using a single

method. Value can be added to a study by the use of a mixed method approach as it can give

greater depth and breadth in a local context of an otherwise generic framework (Mactavish &

Schleien 2000).

1.4 The Development of Creative Economy in Malaysia

UNCTAD (2008) has identified Malaysia as one of the top cultural producers among

developing countries such as Indonesia, Nigeria and Vietnam. The former Malaysian

Information Minister, Ahmad Shabery Cheek was perhaps among the first person to mention

the term creative economy in a television interview for the inaugural Creative Industries

Conference in 2009 organised by the ministry:

We hope the word C-Economy (creative economy) will become a household word in the society. We will monitor the progress of the C-Economy in the country and this is a platform that we have built.

(Bernama 2009)

In Malaysia, the development of creative industries revolves around the knowledge-based

economy, with special focus given on multimedia, innovation and technology areas initiated by

the government. The Multimedia Super Corridor (MSC) mega-project launched in 1995 is

identified as one of the core elements for the growth of technology sectors in the country. The

government had invested billions of Malaysian ringgit in several projects, including: MSC,

Cyberjaya City; Technology Park Malaysia; Smart Schools; and Borderless Marketing. A part

of the MSC mega-project, Cyberjaya City will act as a creative activities zone, and an export

processing zone for foreign multinationals and export oriented domestic firms. This

development is in line with the vision set by the fourth Malaysian Prime Minister, Mahathir

Mohamad to make Malaysia a developed country by the year 2020. However, compared to

her neighbours in the Asian region for example; Singapore and Indonesia, Malaysia is far

behind in the development of their creative industries (Vicziany & Puteh 2004).

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1.5 Cultural Tourism

Cultural tourism activities are a combination of cultural and tourism sectors. The phrase

cultural tourism, however, was not used until 1992 (Stebbins 1996). The White House

Conference on Travel and Tourism defined cultural tourism as “travel directed toward

experiencing the arts, heritage and special character of a place” (as cited by Heritage Tourism

National Trust 2002). From this definition, the key idea about cultural tourism is about

“experiencing” the products.

The World Tourism Organisation (WTO) (1985) defined cultural tourism as the movement of

persons for essentially cultural motivations (study tours, performing arts, and cultural tours),

travel to festivals and other related events. Due to the rapid changes taking place around the

world, more authors seem to include experience in their definition of cultural tourism. For

example, National Assembly of State Arts Agencies (2005) defines cultural tourism as the

mosaic of places, traditions, art forms, celebrations and experiences that portray a nation and

its people. The element of experience plays a primary role in cultural tourism, and

demonstrates a close connection between cultural tourism and experience industries. In

countries such as Sweden and Switzerland, cultural tourism is categorised under experience

industries (Nielsen 2004, 20). In-depth discussion about this close connection will be

presented below.

Cultural tourism has been a major contributor to the tourism industry for more than twenty

years, and plays an important role in the economies of many developing nations (WTO 2004).

Rich cultural resources in developing countries are creative assets, and their use can enable

developing countries to create their own unique cultural identities and products, which can be

exported globally to reap economic and social benefits and increased participation in the

global economy (UNCTAD 2008, 16). Therefore, many governments worldwide are now

promoting their cultural tourism assets for the immense potential contribution to their economy

(Heritage Tourism National Trust 2002).

Currently, cultural tourism products like arts, handicrafts, and traditional music are becoming

more innovative. A substantial gap exists in the academic literature on this topic in relation to

developing nations. Some research has attempted to marry aspects of cultural tourism and

creative industries, which consequently led to the conceptualization of the term creative

tourism, first introduced by Richards and Raymond (2000). However, further clarification is

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needed to better understand this new concept, and the relationship between the two core

elements that contribute to it.

1.5.1 Creative Tourism

In a global environment where tourists demand and expect first hand delightful and

memorable experiences, the tourism sector needs to improve products and ensure that they

inject some creative elements in order to remain competitive and sustainable (Richards &

Wilson 2006). Smith (2007, 8) also notes that many countries have limited heritage attractions

to develop or promote, therefore the focus on contemporary, experiential and creative tourism

becomes of pivotal importance. Richards and Raymond (2000, 18) defines creative tourism

as:

...tourism which offers visitors the opportunity to develop their creative potential through active participation in courses and learning experiences which are characteristic of the holiday destination where they are undertaken.

The term creative tourism demonstrates the relationship between cultural and creative forms

of tourism, and is seen as a means to sustain the competitiveness of cultural tourism products.

See Table 1.5.1

Table 1.5.1: The relationship between cultural and creative forms of tourism

Primary time

focus Primary cultural focus

Primary consumption focus

Primary learning focus

Cultural tourism Past & present High culture, popular culture

Product, process

Passive

Creative spectacles Present Arts, performance Performance Passive

Creative spaces Present & future

Arts, architecture, design

Atmosphere Interactive

Creative tourism Past, present, future

Creative process Experience, co-makership

Active skill development

(Richards & Wilson 2006)

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1.6 Creative Industries: A Discussion

The most cited definition of creative industries is that offered by the Department for Culture,

Media, and Sport (DCMS), UK (2001), which defines creative industries as “those industries

that are based on individual creativity, skill and talent. They are also those that have the

potential to create wealth and jobs through developing intellectual property.” The creative

industries include advertising, architecture, art and antiques markets, designer fashion, film

and video, music, and software (DCMS 2001). Similarly, the Sweden Knowledge Foundation

in Nielsen (2004) defines experience industry as “a collective term used to describe people

and businesses in creative professions whose main purpose is to create and/or supply

experiences in various forms”. This term has 13 sub-categories, including architecture, design,

film/photography, visual arts, literature, advertising, media, fashion, music, culinary arts and

meals, performing arts, tourism and experiential learning.

UNCTAD (2004; 2008 12-13) broadly classifies creative industries into four areas:

i) Heritage – traditional cultural expressions and cultural sites

ii) Arts – visual arts and performing arts

iii) Media (not including new media) – publishing and printed media and audiovisuals, and

iv) Functional Creations – design, new media and creative services.

This classification shows the intersections between culture, tourism and creative industries

sectors that guide this study’s exploration of creative sectors in developing countries,

particularly in Malaysia. The creative industries comprise a whole range of often overlapping

organisations, products, and disciplines (Cunningham 2004), such as art, culture, and

entertainment. Cunningham shows the close connection between these three sectors,

particularly in developing nations, which tend to include culture and heritage when formulation

their definition of the creative industries. While it seems self-evident that culture, tourism and

creative industries are inter-connected, research examining their relationship is rare in

developing countries.

Most research based on developed countries has omitted cultural tourism (such as heritage

tourism) from being part of their creative industry (Cunningham 2002). Developing nations

may not have the creativity, innovation and technology resources offered by the developed

countries; nevertheless, this lack is compensated by the abundance of rich cultural resources

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that can be used as a platform to develop their creative industries, and to compete with the

developed countries (UNCTAD 2008). Furthermore, significant findings demonstrate that

some developing countries, mainly in Asia, have started benefiting from the dynamism of the

global creative economy, and are establishing tailored, cross-cutting policies that enhance

their creative industries (ibid. 2008, 5). However, many authors have challenged the UNCTAD

report, mainly for its very broad definition of creative industries.

1.6.1 Creative Industries and the Cultural Industries

Heated arguments persist between cultural and creative industries theorists. Some argue that

creative industries are exploiting cultural products for commercialisation purposes (see

O’Connor 2007); others claim that cultural products simply are part of the creative industries

(Hartley 2005). Yudice (2003, 1) cautioned that even though culture is a resource, it should be

treated as more than just a commodity, and offered the example of Brazil, where culture has

reduced social conflicts and can lead to economic development for the community in slum

areas. This research uses an anthropological definition of culture, which sees the concept as

that is more value-neutral and analytic, and can be found everywhere and not just in the high

arts or in western “civilisation” (Smith 2001, 2). As the central focus of this study is on the

developing nations, particularly in Malaysia, this broad idea of culture is suitable for this

research.

1.6.2 Creative Industries and the Experience Industries

The creative industries are also known by other terms, including: experience industries

(Sweden), cultural industries (UNESCO), cultural sector and cultural industries (The European

Commission), cultural industries (China), content industries (Japan), and entertainment and

media industries or copyright industries in the US (Nielsen 2004, 6).

The two definitions of creative and experience industries have close similarities, but differ in

their sub-categories. In creative industries, only certain cultural products are considered as

core products, while the rest, including tourism, are categorised as related areas. In the

experience industries, culture and tourism are considered to be core areas. To some extent,

perhaps, experience industries are more appropriate for consideration by the developing

countries, which normally categorised their culture and tourism activities as part of their

creative industries.

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The concept of experience industries is a relatively new phenomenon (Darmer & Sundbo

2008, 1). Activities such as leisure, tourism, culture, marketing, and the Internet are part of the

experience industry because they demand a fee from customers for a real service, good or

commodity (Pine & Gilmore 1998). According to, an experience is created when a company

deliberately uses services as the stage, and goods as props, to connect individual customers

in a way that creates a memorable event, and subsequently charges fees (Pine & Gilmore

1998). The bigger picture of experience industries stems from the concept of the experience

economy. In simplified terms, experience economy refers to society in general, while

experience industries cover a limited number of industries such as the media, advertising and

computer games (Nielsen 2004, 8). O’Dell (2005, 19) argues that tourism and the experience

economy are within the same formula: as a commodity of tourism, culture is constantly being

packaged and sold to us in terms of such things as difference, otherness, heritage, cultural

identity, song, dance, music and art (see also Bryman 2004; Baerenholdt, Haldrup & Larsen

2008). This study examines the cultural product used by the tourism industry to attract tourists

to visit attractions with creativity as an added value to the attractions or also known as cultural

reconversion introduced by Cancilini (1992, 32). Disney Land and Disney World in the US are

examples of how tourism uses culture and creativity to attract a significant number of tourists

to visit a place, and to providing a unique and distinct experience.

1.7 Research Outline

This thesis is divided into eight main chapters. The first chapter introduces the creative

economy in Malaysia, and presents a snapshot of its background and the directions of recent

studies. There are six subsections in this chapter.

The second chapter discusses literature about creative sectors worldwide, and has four

primary subheadings. Key literature on topics such as creativity, culture, and innovation are

identified and discussed. Based on the literature discussion, the study finds there is a

significant gap in the literature about creative sectors in developing countries.

In chapter three, therefore, special attention is paid to the development issues of creative

economy literature in Malaysia and other developing countries. The novelty of this topic in

developing countries, means that this chapter serves the purpose of providing sound

knowledge about the history and current issues facing these countries. The recent

development of creative sectors creates many underlying issues that need further

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examination. The UNCTAD special report on creative economy in 2008 on developing

countries is used as the central guideline in this sector.

The next chapter caters to research methodology, provides more detail on the techniques

implemented in investigating the topic, answers the four research questions, and explains how

and why these techniques are adopted.

Chapters five and six compile the interview results from the two case studies. Seven themes

identified to represent the responses. There are five major areas covered in chapter five, while

there are four themes for chapter six. Comparison between the organisations in Malaysia and

similar cases in Hong Kong and Vancouver also are presented. Chapter seven analyses and

discusses the data obtained from the case studies.

The final chapter of this research presents the conclusions and recommendations. The first

two sections will discuss the conclusions, followed by suggestions to Malaysian stakeholders

and public on how to overcome the development issues of the country’s creative economy.

This study found that while the potential of creative sectors are significant, the accompanying

high risks involve an unpredictable future. Further, while Malaysia has rich natural resources,

the country is still lacking in advanced technology. The last segment of this chapter discusses

the limitations of this research project.

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2. THE LITERATURE ON CREATIVE SECTORS

2.1 Introduction to the Creative Economy

We are now embarking on a new quest to position Kuala Lumpur as one of the creative hubs of the world, to be parallel with the mega cities of London, Milan, Los Angeles, Tokyo and even our next-door neighbours Bangkok and Singapore. As we enter the creative economy spotlight, we can show ourselves as not only emerging as the new creative hub within the region but even more importantly, helps to sustain the economic growth and development of the city.

(KL Design Week 2010)

This chapter separates the issues surrounding the concepts of creative economy and creative

sectors into four subheadings. The first section presents domains of creative activity model,

and introduces the concept of economic creativity. The chapter finishes by addressing the

concepts of technological creativity and cultural creativity.

The rapid evolution of information, communication and technology (ICT) has brought profound

changes in lifestyles worldwide. Not all countries have equal ICT facilities and growth.

Subsequently, the United Nations Conference on Trade and Development (UNCTAD 2008, iii)

has recognised that it is time for the world to go beyond economics, and look for a more

holistic development approach that considers different cultural identities, economic

aspirations, social disparities, and technological disadvantages. As a result, the concept of a

creative economy was identified by the UN in 2008. UNCTAD, along with other international

agencies such as the World Bank, promote the need to bring issues relating to culture and

technology into the mainstream of economic development thinking.

In this study, the term content and experience industry or cultural tourism is used to describe

the development of the creative economy concept in Malaysia, which has adapted a model

based on the experiences of many countries, including Japan, the US, and UK. Further, these

two sectors reflect the case studies investigated by this research: products from content

(animation) and experience (museum) industries.

Until recently, there has been lack of understanding about creative economies. In Malaysia the

government has yet to implement a creative economy policy. Additionally, the government has

no official definition of the concept. The first section of this chapter discusses the problematic

concept of creative economy and creative industries with a focus on developing countries. A

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domain of creative activity model from Mitchell, Inouye and Blumenthal (2003, 1) is introduced

as the primary guideline for this thesis.

2.2 Domains of Creative Activity

In defining the term creative economy John Howkins (2001, 15) says that while creativity and

economics are not new, the nature and extent of the relationship between them, and how they

combine to create extraordinary value and wealth is. Kong (2000) states that the important

nexus between culture and economy is neither a recent development nor a novel inclusion in

the social science agenda; for instance, the term, cultural industry has been established for

more than two decades. As UNCTAD (2008, 5) reports, whether it is an old concept being

recycled or totally a new concept, the creative economy contributes significantly to economic

growth.

The definition of creative economy according to UNCTAD is applicable to all countries. In their

special report focusing on developing countries, UNCTAD (2008, 15) identified five major

contributions of the creative economy:

it can foster income-generation, job creation and export earnings while promoting social inclusion, cultural diversity and human development;

it embraces economic, cultural and social aspects interacting with technology, intellectual property (IP), and tourism objectives;

it is a set of knowledge-based economic activities with a development dimension and cross-cutting linkages at macro and micro levels to the overall economy;

it is a feasible development option calling for innovative, multidisciplinary responses and inter-ministerial action; and

at the heart of the creative economy are the creative industries.

Based on their report, UNCTAD concluded that developing nations can compete with

developed countries. Further, there is no one-size-fits-all approach sector. For some

developing countries such as Afghanistan, Bangladesh, Kenya and Somalia it would be more

beneficial to concentrate on making the legal system, particularly copyright law, function more

effectively (Schultz & van Gelder 2008).

Although there are widespread variations in the literature, many governments and policy

makers have quickly adopted the concept in their policy development. Policy makers believe

that the creative economy has significant potential as a means for their economies to grow

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(Fleming 2007), as well as providing new employment opportunities. Kong et al (2006) point

out that much of the economic transformation in the USA and West Europe over the last three

decades is due to cultural economy (another term used for creative economy). Many

developing countries in Asia wish to follow this model, but the Western discourses of creative

economy may not be workable in Asian countries. For example in China, the ‘Western’

democratic model of creative industries needs to be modified to accommodate a top down

authoritarian structure. Although Chinese authors such as Li Wuwei (2011), believes China is

experiencing the same creative development phases as what other Western developed

countries experienced, Keane (2011, p xiv) argues that different regions in China interpret the

idea of creative industries according to their needs and resources with traditional culture being

the core element. In developed countries the emphasis is more concentrated on new media,

user-created content and consumer productivity.

In Beyond Productivity, Mitchell, Inouye and Bluementhal (2003, 1) provide an alternative way

of examining the issues, by advancing four primary creative domains: scientific; economic;

technological; and cultural creativity. These domains—shown in figure 2.1—are tightly

coupled; activity in one direction depends on parallel activities in other sectors and disciplines

(ibid. 22). The main characteristics of creative activity identified are shown in interacting

domains that are important for the growth of strong creative sectors.

Figure 2.2: Domains of creative activity

(Mitchell, Inouye & Blumenthal 2003, 22).

Scientific

Creativity

Technological

Creativity

Economic

Creativity

Cultural

Creativity

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2.2.1 Scientific, Economic, Technological, & Cultural Creativity

Discussions of scientific creativity can be traced to the 1960s (Lehman 1960; Barron and

Taylor 1963) in terms of its relationship with mathematics and medicine. Scientific inquiry

begins with a combination of imagination and observation (Hu & Adey 2002). Mitchell et al.

(2003, 18) mention that in science and mathematics, the primary fundamental outcome of

creative intellectual effort is in contributing “new knowledge”. In general, they believe scientists

and mathematicians are clear on the difference between “new knowledge” and that which

results from incremental advances within established intellectual frameworks. The success of

scientific creativity may lead to technological innovation and economic growth, and can inform

cultural values. While scientific creativity is not within the scope of this study, the importance

of scientific creativity is acknowledged, and there is a close alliance between it and the other

three domains: economic, technological and cultural. Technological creativity has taken an

important global role through the growth of information and communication technologies (ICT).

Cultural creativity—through works of arts, design and heritage—is based on traditions and

values, and provides rich experiences to communities.

In Malaysia, the creativity domain is regarded as a key issue. In the education sector, courses

relating to culture, technology, economics and sciences, are a central part of the educational

system. However, courses on animation, creative writing, and sound engineering have been

offered only since the late-1990s. The number of public and private academic institutions

featuring such programs has been growing substantially. There are more than ten Malaysian

universities—including Aswara, UiTM, University of Malaya [UM], UTAR, LUCT, Malaysia

Multimedia University [MMU], and Universiti Malaysia Sarawak [UNIMAS])—with faculties,

centres, and departments that include the word “creative” in their names.

2.3 Economic Creativity

UNCTAD’s (2008) definition of creative economy notes a close link to economic creativity as

defined by Mitchell et al (2003). Fresh ideas are needed in the twenty-first century in order for

countries to sustain their economy and become competitive. Countries lacking in natural

resources can compete in other ways. For instance, Singapore is a small country with few

natural resources, but the country has managed to reach a developed status within a short

period of time through technological development (Teo & Huang 2005, 593). The next step for

Singapore is to enhance the creativity of its population. Traditional economic development that

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highly depends on commodities and manufacturing may no longer be the only way to generate

income.

Creativity is recognised in assisting the growth of a nation. Entrepreneurship brings ideas,

talent and capital together in innovative ways, and creates and markets products and services

that are the core foundation for the growth of economic creativity (Mitchell et al. 2003, 18). In

information technology and biotechnology fields, close alliances emerge between the

institutions of technological innovation (such as research universities) and entrepreneurial

activity, where each one requires and motivates the other. This is particularly evident in fast

moving, high technology economic clusters, such as the information technology cluster in

Silicon Valley or the biotechnology cluster of Cambridge, Massachusetts (ibid.). Thus,

economic creative is closely linked to technological and cultural aspects. Although the

development of economy may not depend on technology and culture, both play a major role.

2.3.1 The Differing Creative Economies in Developing Nations

Realising the problematic definition of creative economy, UNCTAD (2008, 12) has formulated

a wider definition that covers all aspects of creativity and economic forms. UNCTAD argues

that developing nations have capabilities and substantial potential for developing their creative

economy, and should use all available resources to realise social and economic benefits.

UNCTAD (ibid.) identified developing countries—such as China Indonesia, Iran, Pakistan,

Malaysia and Turkey—that are key producers of creative commodities. This report is now a

guide for many developing countries formulating creative economy policies.

Among developing nations, Indonesia is among the few nations that have developed and

detailed creative economy plans. In 2008, the Creative Economy Development 2025 strategy

was unveiled, with the vision to make Indonesia a nation with a quality of life and creative

image favourably comparable to the rest of the world (Indonesia Department of Trade 2008).

The government’s mission aims to empower Indonesia’s citizens to become a main source in

their nation’s development, and to:

increase the contribution of the creative industries to Indonesia’s GDP;

increase export of products/services based on creativity, which is enriched from local value and contemporary spirit;

increase competitive companies of creative industries;

focus on the sustainability of resources;

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creation of economic value from creative innovation, including from local value and cultural heritage;

development of creative zones/clusters in potential areas;

strengthen creative images on products/services to attain “National Branding”.

For some western countries, Asia’s economic expansion is a threat. The positive development

of the economy in the Asian region has provided a stimulus for cultural development

(Mahbubani 2008, 26). As Rohwer (1995, 17-18) has pointed out, many Asian countries have

been good at putting together the elements that contribute to economic growth, particularly in

relation to manufacturing.

Developing nations have a potential to develop their creative economy. Most developing

countries depend heavily on their natural resources. Consequently, their definition and

understanding of creative economy emphasise arts, handicrafts, heritage, museums and

traditional performances. Some developing countries such as China, Indonesia and Malaysia

are starting to implement new technologies to enhance their creative sectors, but their

substantial strength is still on their natural resources.

2.3.2 Creative Industries: New and Untested Ideas

Today, more developing countries are starting to develop their creative economy with local

elements added. The UNCTAD Report (2008) has guided the growth of their creative

economy sectors. However, some scholars argue that creative economies exhibit more of a

top down approach from the government to the public. This can be seen in many countries, in

particular, Singapore (Lee 2010) and China (Keane 2007).

The implementation of policies has raised concerns from Oakley (2004), who argues that the

use of creative industries as a single weapon to turn around economically-depressed regions

risks creating polarised and unsustainable economic development. Further, the sustainability

and success of creative industries cannot be disconnected from cultural policies. Mitchell et al.

(2003, 19) argue that many subsectors of creative industries could hardly be called creative in

any sense.

In 2001, a report by the United Kingdom’s Department of Culture, Media, and Sport (DCMS)

claimed that creative industries contributed over 112-billion-pounds revenue and offer 1.3-

million job opportunities in the UK. However, since subsectors of creative industries are

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multifaceted, the figures reported by DCMS are sometimes disputed. In his analysis of the

effectiveness of creative industries policy-making in the UK, Garnham (2005) criticises the

DCMS strategy as making statistics look impressive to the Treasury by turning public cultural

goods into commodities.

To some extent there are similarities between Asian and European nations. De Berranger and

Meldrum (2000) state that at a European level (except for the UK), creative industries include

heritage, literature, the press, music, the performing arts, visual and audio-visual media and

socio-cultural activities. A similar scenario occurs in developing countries, where the majority

of creative industries emanate from deeply-rooted cultural traditions (Cunningham, Ryan,

Keane & Ordonez 2004). Due to the newness and diversity of this sector, many policymakers

are still looking for the right formula to best develop their creative industries. With growth so

important in advancing the cause of the creative economy to governments, there are now

many overlapping subsectors; for instance, culture and heritage sectors are considered as

part of the tourism industry in some countries like China, Malaysia and Thailand.

Growth depends heavily on political environments. Each country has different cultural barriers,

financial strengths and political environments which may act as barriers to development

(Cunningham et al. 2004). With a majority of creative companies being small and medium

enterprises (SMEs), these companies face a tough road to success. However, with the

assistance from world organisations such as UNCTAD (for creative economy and creative

industries), UNESCO (for culture) and the World Bank, these companies at least have some

direction. The next section will discuss further about SMEs relating to creative industries.

Small and Medium Enterprises (SMEs) 

There are many definitions of SMEs, generally based on the number of employees, total net

assets, sales, and investment level. The most common definition, according to Ayyagari, Beck

and Demirguc-Kunt (2003), involves staff numbers; many sources define SMEs as having a

cut-off range of up to 250 employees. De Berranger and Meldrum (2000, 1828) state that

SMEs have wide variations in factors such as size, location and industrial sector. Since most

creative industries companies employ less than 250 staff, they are predominantly SMEs.

Nonetheless, the data on SMEs is limited (Ayyagari et al 2003, 3) and most research focuses

on manufacturing companies and on developed countries. More research is needed on SMEs,

particularly on creative industries in developing countries, where the industries are poorly

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documented. This study addresses this issue by focusing on the establishment of SMEs in the

animation sector in developing countries, specifically in Malaysia.

According to the DCMS Report (2001), the majority of creative industries key players are

freelance, and SMEs. Leadbeater (1999, 49) states that:

Creative industries, such as music, entertainment and fashion, are driven.....not by trained professionals, but cultural entrepreneurs who make the most of other people’s talent and creativity. In creative industries, large organisations provide access to the market, through retailing and distribution, but the creativity comes from a pool of independent content producers.

Freelancers, small, and micro-businesses provide an extremely substantial part of the overall

employment in creative industries sectors (O’Connor 2007). McGray (2002) points out that in

Japan, the recent recession may have stimulated Japan’s young entrepreneurs to start their

own businesses and experiment particularly in art, music, and other risky endeavours. Many

small businesses have emerged in fashion, magazines, music labels and music clubs. Larger

companies are starting to support these small businesses because of their substantial

presence (ibid.).

The Malaysian government has stressed the crucial role of SMEs in achieving their vision for

2020 (Foong 1999, 81). Consequently, they are promoting and upgrading Malaysian SMEs to

provide a strong and competitive industrial foundation. As a result of the poor understanding

about SMEs in Malaysia, particularly in creative sectors, not much data is available. This study

is therefore timely.

2.4 Technological Creativity

Many authors have identified that creativity, innovation and technology are closely linked (see

Florida 2005; Richard & Wilson 2006; Roodhouse 2006; Smith 2007). Mitchell et al. (2003)

establish that in engineering, and in technology-based industries, creativity is the core element

for technological inventions. These inventions can create commercially successful products,

improve quality of life, and encourage the generation of income streams through intellectual

property licensing. In addition, technology has been implemented in all sectors and aspects of

human life, from culture, entertainment, education and finance, to health, hospitality, and

transportation (see Allenby 2006). But advances in technology have made consumers more

demanding.

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There has been considerable debate among scholars about the original meaning of creativity,

which traditionally relates to art and artisans (Banks et al. 2002). Yet many discussions of

creative industries consistently mention technology. Sectors such as animation, digital

content, and entertainment (music and films) are dependent on technological innovations

(Yusuf & Nabeshima 2005). As pop music groups from Japan and South Korea hit the Asian

market, many made innovative use of technology. McGray (2002) mentions a Japanese band

called Lipless X Sister, whose members wore stylish western fashion and hair styles, and

were popular for their dance routine called “Para Para”, which has a resemblance to “the

Macarena”. The band featured few traditional elements. Technology can assist the growth of

sectors, especially as the infrastructure is now cheaper than ever before, thus providing catch-

up advantages for developing countries.

Many economists agree that the Asian region has a significant potential to become a world

economy power in the twenty-first century, particularly with the rapid development of China,

India and Indonesia (Mahbubani 2008, 2). Countries like Japan and South Korea have been

the economic leaders in Asia for the past two decades, and their influence in the world

economy today relied on their technological infrastructure. Realising the importance of

technology as leapfrog to economy transformation has made many governments in Asian

region focus their attention on developing their technology. The establishment of mega-

projects relating to technology transformation—including World Media Capital (China),

Multimedia Super Corridor (Malaysia), Intelligent Island (Singapore), and Modern City (United

Arab Emirates)—have been rolling out since the 1990s.

The influence of technology advancement from Japan and South Korean, in particular, is

experienced globally. Brand names like Canon, Honda, Kia, Kodak and Samsung are

household names. McGray (2002) pointed out that from the 1980s, Japan represented a new

kind of superpower through their economic strength without using their army, and not needing

to prop up puppet regimes, or fight proxy wars. Japan’s success has engendered confidence

in other non-western countries to make Japan as their role model, and develop their own

economies. Many Asian countries have followed Japan’s lead and launched closer networking

with the Japanese government and companies. In Malaysia, locally produced cars, the Proton

and Perodua, are both based on Mitsubishi and Daihatsu technology. Although there are

differences in culture between Japan and other Asian countries, they shared significant

similarities compared to other western countries (Milne 1986; New Straits Times 2009).

In Japan, it is reported by Yoshimoto (2003) that, their content industry has been identified by

their government to have the potential to keep their economy sustained in the international

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market. Due to the success of Japan and South Korean content industry followed by

Singapore (although more of outside sources rather than their original products and services),

more countries in Asia are upgrading their content industries facilities and infrastructure. The

term content industry is used widely in Japan to describe creative industries. The power of the

content industry is never to be underestimated, as it serves like a “soft power” for countries to

promote their culture and countries to the world like Hollywood films do for the United States.

China, in particular, is aggressively developing and promoting their content industry as their

“soft power”.

2.4.1 Content Industry

One of the most prominent subsectors of the creative industries is the content industry; in

some countries, this is a more familiar term. The content industry is discussed here in the

context of Japan’s Ministry of Economy, Trade and Industry (METI), and this grouping

includes films, music, game software, and animation (Yoshimoto 2003). By the early 1970s,

Japan had emerged as the new power in content industry. Their products have been

embraced internationally, and became a threat to the traditional content industry producers

from western countries (McGray 2002). Asian countries, including Hong Kong, Japan and

India, became pioneers in the region and broke into the global market with their content

products. Previously, in the 1950s, children grew up with Mickey Mouse and Superman

cartoons. However, the 1970s saw Japan introduce Ultraman (first created in 1966), followed

by Doraemon (produced as a cartoon version in 1979), Mask Rider and many others. These

appeared and competed with products from the developed countries (Kong et al. 2006;

Yoshimoto 2003).

Japanese animation series and manga have been influential as “pop” culture since the 1980s,

while Indian films and songs became one of the country’s most important exports to the world

(Kong et al. 2006). Doraemon, Easy Rider, Pokemon, Narutto, and Ultraman are among the

popular characters of Japanese anime or animation, which have been turned into other

mediums like video games, and VCDs. For more than a decade, Japanese anime and manga

have been translated into more than thirty languages and broadcasted in sixty-five countries

(McGray 2002). Indian films and songs have been winning international recognition since the

1970s, and the country produces the highest number of films in the world. A.R. Rahman’s

2008 Academy Award for his original music, “Jai Ho” from the film Slumdog Millionaire

encouraged more success. The South Korea content industry has provided significant impact

in the global market, but more so in the Asian region. Middle Eastern films—from Afghanistan

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Iran, and Turkey—have been well received in the European countries and won substantial

major awards in Europe. The success of content industry products from these Asian countries

has motivated other countries in the region to develop their own content industry. China,

Kuwait, Malaysia, Singapore and Thailand are working hard to become key players in their

region’s content industry, and their governments offer support and incentives to their local and

international companies in order to open up their businesses to the content industries.

But the development of content industries in these countries does not proceed without

criticism and some failures. In Singapore and Kuwait, for example, their content industries are

focusing more on inviting international companies to establish their operations on the ground,

rather than producing their own content products. As a result, Singapore managed to attract

Hollywood film maker George Lucas to open his studio in the country, and many international

publishing companies have opened branches. Singapore earnings from IPs generated a total

of US$30.5-billion in output, and value-added US$8.7-billion to the economy in 2001 (Yue

2006). This has raised the issues of producing the output (processing) rather than the creative

input, and the economic leakage that results from outsourcing.

By harnessing creative industries development through value-adding, content creation,

interactivity, convergence, and new methods of storage and distribution, Singapore has

achieved success (ibid.). Other countries in this region, including China, Malaysia, the

Philippines and the UAE, have managed to attract many international content industry

producers to establish offices in their countries. The region has become significantly

competitive in attracting international investors in content industry with many attractive

incentives. However, the substantial global competition of content industry means that

products from Asia might need to shed their local “identity” in order to meet the global market

appeal. This can be seen in many contemporary Asian films, music, television programmes

and video games which are becoming more westernised. Western culture is spreading fast all

over the world and the Asian region is also experiencing this phenomenon.

2.4.2 Cultural Creativity

Mitchell et al. (2003, 20-29) argue that cultural creativity manifests in the production of works

of art, design, and scholarship. Like contributions to scientific and mathematical knowledge,

such works are highly valued in themselves. Nations and cities take immense pride in their

major cultural figures, their cultural institutions, and their cultural heritage. Thus, stakeholders

are investing substantially in cultural sector. Many value the experience of producing as well

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as consuming art, design, and scholarship. Not only high cultural practices, such as opera at

the Metropolitan in New York City, but also popular practices, such as amateur photography,

may be valued for the experiences they provide to the participant (ibid., 19). The important

role of culture is obvious, but cultural creativity is necessary to ensure the longer lifespan of

culture. Although traditional culture is appreciated, some customers look for a blend between

modern and traditional culture particularly the younger generation (Allenby 2006). This is when

creativity and technology play their major part to create a mixture of modern and traditional

culture.

Contemporary cultural producers realise the importance of adopting modern technology in

their products and services in order for them to remain competitive and sustainable. By

implementing technology, they can attract more guests and visitors to experience their

products and services. One cultural institution that has been forced to evolve is the museum

sector. Traditional museums have experienced difficulty in attracting visitors compared to

modern museums (including science parks), which adopt modern technology in their products

and services (Awoniyi 2001). This action caters to the visitors’ demands for more engaging

and hands-on experience. With rapid technological changes taking place globally, it is crucial

for cultural producers to follow the latest innovations. Today, cultural operators and producers

like museum curators need to provide products and services beyond the imaginations of

visitors in order to offer new and different experiences (Goulding 2000). In recognising and

responding to this new challenge, the museum sector role now can be considered part of the

experience industries.

As the second case study of this research focuses on a local traditional museum corporation

that is shifting its role to become a modern museum to provide better experience to their

visitors, the concept of experience industries will be applied throughout this thesis. This offers

a better understanding of the many dimensions of creativity. Banks et al. (2002) argue that it is

best to move away from a fixation with the product of the individual “creative”, and to

concentrate on organisational processes and relationships within designated creative firms.

They believe if the term creative industries is to be used in any meaningful sense, then closer

attention should be applied to the meaning of creative, and how creativity is defined and

managed within organisations. More explanation about experience industries relating to

cultural tourism products will be presented below.

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2.4.3 Cultural Tourism

The World Tourism Organisation (WTO) (2004) reported that cultural tourism is one of the top

three reasons people travel domestically or internationally, especially in developing nations in

the Asian region. As a result, many countries promote cultural tourism to local and

international tourists (Smith 2007, 2). In Cultural Reconversion, Cancilini (1992, 32) highlights

the necessity for modern elements to be added to traditional culture to make it more

appealing, and to sustain its place in the market. Some traditional cultural fundamentalists,

however, have criticised these additions as an exploitation of culture, and that there is even a

need for such cultural reconversion.

Cultural tourism products are a combination of traditional and heritage products. This often

requires repackaging in order to attract the market. Imagination and modern technology

combine to attract more visitors in areas including design, media and advertising,

merchandising of celebrities, and souvenirs items. Some authors (see Chhabra, Healy, Sills

2003; MacCannell 1976; Cohen 1979) argue these modern elements in tourism lead to

“staged authenticity”, particularly in products that involve performances such as cultural

dances.

However, Murphy (2003, 262) argues that this can add value and create broad opportunities

for cultural investment, and attract different markets. The outcomes include opportunities for

local communities such as employment, new businesses, entrepreneurs and investors, and

better support policy (UNCTAD 2008). Moreover, Baerenholdt et al. (2008, 197) argue that all

cultures are constructions to some extent, and consequently are in a sense contrived or

inauthentic; they are fabrications in the sense of something that has already been made,

which is subsequently re-presented and re-performed.

In cultural tourism sector, developed countries seem to be more advanced in adapting

innovation and modern technology to their products and services. Most important museums in

Australia, Canada, Japan, Singapore, US, and UK have adopted interactive and technology-

friendly innovation. By expanding their roles since the 1970s, these museums have roles that

involve more than just preserving and displaying a cultural collection. American museum

director, John Dana rejected the concept of museum as just a storehouse of collection as

early as 1909, believing that a good museum attracts, entertains, arouses curiosity, and leads

to questioning and thus promotes learning (see Alexander 1979, 13; Cleary 2006, 1). Also,

museums need to blend well with their surroundings, and be accessible to the community

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(Dana 1917, 25). Dana’s assertion has substantial echoes with the aims of contemporary

museums. The International Council of Museums (ICOM) (2010) defines a museum as,

...a non-profit making, permanent institution in the service of society and of its development, and open to the public, which acquires, conserves, researchers, communicates and exhibits, for purposes of study, education and enjoyment, material evidence of people and their environment.

Museums in the US took almost fifty years to implement changes to their functions and roles

in order to become more than just display collectable institutions (see Dana 1909). Today, the

role of the museum is different from the function of a traditional museum, and many

developing countries, including Indonesia and Malaysia, are shifting their direction towards the

ICOM definition. Nevertheless, this shift is a slow process, and many developing countries are

significantly lagging behind the west. The experience of the US in the early twentieth-century

is now taking place in the developing countries. Some museums in developing countries are

still operating using the traditional method, and some have difficulties adopting change. In

Malaysia, these difficulties involve financial constraints; political problems (Kasiman 2010);

and little or no access to networks of resources and expertise (UNESCO 2011). Although,

these changes will not guarantee that the museum will have a larger number of visitors, they

will move the museum to become more competitive in the market. However, it is not the

intention of this study to investigate the function of modern museum, but rather to understand

the global phenomenon taking place over of the role of museum in today’s world.

2.5 Conclusion

This chapter has examined the key literature informing this study. In the first section, I argued

that the global creative economy is dependent on ICT. The concept of a creative economy

was made popular by the UN in 2008, and increasing numbers of policymakers have adopted

it for their countries, including Malaysia.

The following section discussed the multifaceted nature of this concept and the difficulties

researchers have had in establishing a definition. Creativity and culture are acknowledged as

the two most important elements in a creative economy. The UNCTAD Special Report (2008)

brought new hope for developing nations to compete equally with developed countries by

drawing on their rich cultural resources; but the Report’s definition of a creative economy has

been criticised for being too broad, and for diluting the actual meaning of creativity.

Recognising the lack of reliable theory about this concept, I chose Mitchell et al. (2003) the

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Domains of Creative Activity Model as a primary guideline for this topic. The four domains are

scientific, economy, technological and cultural creativity.

Finally, I conducted a detailed discussion on the domains of creative activity. For this study

context only three activities were discussed due to their close alliance to this topic. Issues of

each domain were presented accordingly. Economic creativity covers the difference between

the understanding of creative economy in developing nations and developed countries, and

the problem of unpredictable futures for some of the sectors. In terms of technological

creativity, I focused on the content industry. The last section examined cultural creativity,

specifically the influences and implications of cultural tourism.

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3. CREATIVE ECONOMY DEVELOPMENT IN MALAYSIA

3.1 The Malaysian Experience in Developing a Creative Economy

He is the One GOD: the Creator; the Initiator; the Designer. To Him belong the most beautiful names. Glorifying Him is everything in the heavens and the earth. He is the Almighty, Most Wise.

(Al-Quran 59:24)

The recent historical background of the creative economy development discourse in Malaysia

forms the first section of this chapter. Following this is an examination of the animation and

cultural tourism sectors, specifically museums. This discussion includes examples from other

Asian countries. The final section focuses on globalisation and localisation.

For the last fifteen years, the Malaysian government has actively participated in developing

their Information and Communication Technology (ICT) and media sectors, including

animation, advertising and local television programs. Malaysia has moved from being a

manufacturing-based economy to embracing service and ICT sectors, which have played a

significant role in the economy since the 1990s. Some authors have described Malaysia’s ICT

development agenda as one of the most ambitious in the world (refer Ratnathicam 2002), and

recently, many government ministers have discussed developing cultural and media sectors

following the models of their nearest neighbour, Singapore.

Today, the Malaysian government is giving much attention to the growth of content and

technology sectors, a model that already has been implemented by Singapore. With limited

natural resources, and relying on a fresh water supply from Malaysia, Singapore has managed

to become a developed country through innovation and technology. The Singaporean

government introduced the first creative economy policy in Asia in 2002 (Yue 2006), and has

become an important hub for the world market to enter the Asian region.

3.2 Developing Malaysia’s Creative Economy

Compared with other important traditional economic sectors in Malaysia such as agriculture,

and manufacturing, the creative economy is not well understood by the government and the

public. Traditionally, the country has been known as the major exporter of commodities such

as palm oil, rubber and tin (Ramasamy & Yeung 2006). Apart from the manufacturing-based

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economy, the second largest contribution towards Malaysia’s economy has come from the

tourism industry for more than two decades. Tourism arrivals grew from 10.22-million in 2000

to 17.55-million in 2006 (Ministry of Tourism Malaysia 2010); by the year 2020, Tourism

Malaysia forecasts 30-million tourists (Ng 2010, 8). The country has managed to maintain its

position as one of the Top 20 most visited countries in the world for many years (WTO 2007;

2008; 2009) as shown on table 3.2.

Table 3.2: The Top 10 international tourism destinations in 2009

Rank Country International tourist arrivals

1 France 74.2 million

2 United States 54.9 million

3 Spain 52.2 million

4 China 50.9 million

5 Italy 43.2 million

6 United Kingdom 28.0 million

7 Turkey 25.5 million

8 Germany 24.2 million

9 Malaysia 23.6 million

10 Mexico 21.5 million

(World Tourism Organisation 2010).

Arts, culture, and tourism policies have been introduced since the late-80s by the Malaysian

government (Khalifah & Tahir 1997, 177-178), and now cultural and tourism sectors are well

established. In 1991, the fourth Prime Minister of Malaysia, Mahathir Mohamed, announced

his government’s plan (Vision 2020) to make Malaysia a developed nation. This speech marks

the starting point of ICT development in the country (Vicziany & Puteh 2004), with the

establishment of Multimedia Super Corridor (MSC) in 1996 focusing on the development of a

knowledge economy (Gray, Minges & Firth 2002).

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3.2.1 Vision 2020 and the Knowledge-based Economy

Developing a Creative Economy  through  the Knowledge‐based Economy and the MSC  

The history of Malaysia’s knowledge-based economy started almost at the same time of

Vision 2020. Cunningham (2002) states that a knowledge-based economy is one of the

important parts in developing creative industries sector, which will then contribute to the

growth of a country’s creative economy. However, only in the early-2000s, did the higher

education institutions in Malaysia begin to offer programs that supported the development of a

knowledge-based economy sector. The National Arts, Culture and Heritage Academy

(Aswara), Limkokwing University of Creative Technology (LUCT), Universiti Malaya (UM),

Universiti Teknologi Mara (UiTM) and Universiti Sains Malaysia (USM) are among the first

public and private universities to offer academic programs relating to arts, creative writing,

dance, design, drama and ICT programs at diploma and higher degree level. Although UM,

UiTM and USM offered courses relating to arts, design and culture since 1970s and 1980s,

however their approach was more inclined towards preserving cultural traditions rather than

integrating culture with the knowledge based-economy. Further, investment in arts, design and

culture at these universities during those days was insignificant compared to pure science and

economics disciplines. The amount of research funding allocated by the Malaysian

government from 1996-2000 to arts and cultural field was substantially low compared to other

disciplines (Lai & Yap 2004). A dominant feature of national policy promoting this development

is the government’s emphasis on information technology. Mahathir predicted that Malaysia

would be "a pioneer in electronic government, a multimedia-networked paperless

administration when the MSC becomes a reality by the year 2000" (The New Straits Time,

1996, 2).

Each year, the Malaysian government and private agencies have sponsored thousands of

students to obtain their tertiary education abroad, particularly for undergraduate courses that

provide skilled human resources. The significant development of the education sector is in line

with the Malaysian Ministry of Higher Education (MoHE) policy to make the country’s

education sector competitive, and attract more international students to study in the country.

According to Cunningham (2004), every economy, large or small, can enter into the

knowledge-based economy because it is based on competitive advantage, rather than

traditional comparative advantages. Unfortunately, knowledge-economy is narrowly defined

among the key players in Malaysia in terms of science and technology (IT or ICT), with high-

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29

tech activities and e-commerce playing a leading role (Evers 2003). As a consequence of this

definition, there is confusion among the public about this sector and other related components.

Jarman and Chopra (2007) argue that investing in knowledge-based economy infrastructure

alone will not make Malaysia competitive in high value activities such as research, design and

innovation because it takes years for a knowledge-based economy to develop and mature.

Malaysia has to compete with other countries with more advanced research resources,

funding and facilities in their knowledge-based economies.

For the past five years, a clearer understanding about Malaysia’s knowledge-based economy

has been emerging, and a number of positive changes occurred. The new generation of

Malaysian researchers have access to more facilities, funding and incentives from various

government agencies (for example, MoHE and MoSTI) and private sectors. This has resulted

in the significant growth of ICT and creative activities.

In 1996, the MSC mega project was announced. Influenced by the success of Silicon Valley,

which is close to Stanford University in the US, the MSC covers 250 square kilometres

spreading south from the Kuala Lumpur city centre to the new International Airport at Sepang.

It includes Putra Jaya—the new high tech administrative capital—and IT City, an urban

development of smart buildings with the latest information infrastructure. The entire area is

serviced by a fibre optics network that will directly link the MSC with ASEAN, Japan, the US,

and Europe. The vision is far more than a business development: the MSC is envisaged as

"the leading edge of a new national strategy for Malaysia to achieve the goals described in our

country's Vision 2020" (Mahathir, 1996a, paragraph 29). These goals include not just

economic development but development along political, social, spiritual, psychological, and

cultural dimensions. This unique vision aims for Malaysia to be unlike any of the nineteen

"developed countries" (in 1996), but "a developed country in our own mould" (Mahathir 1996b,

paragraph 4).

However, the development of the MSC began before Malaysian universities offered

professional training for human resources required for the development of this project. The

incompatible development of the MSC and universities in Malaysia delayed the progress of

ICT progress in Malaysia in comparison to the more successful developing country like India

(Vicziany & Puteh 2004). India’s ICT and US’s Silicon Valley have followed a different course.

The MSC in Malaysia is reported to face human resources shortages, particularly in meeting

the demands of the ICT and multimedia industries (Ramasamy et al. 2004).

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Silicon Valley had an influx of highly-skilled graduates (Saxenian & Hsu 2001), while in India,

the IT revolution ensured new jobs are available for educated graduates (Vicziany & Puteh

2004). In Malaysia, skilled graduates were limited, and this affected the growth of the MSC

project. Another reason involved a misunderstanding on the part of key players among

Malaysia’s knowledge-based economy, which is narrowly defined as related to science and

technology (IT or ICT), although other high-tech activities and e-commerce play leading roles

(Evers 2003). The MSC development lacks entrepreneurial aspects and innovative spirit,

which have been noted as the two most crucial aspects for the success of Silicon Valley

(Ramasamy et al. 2004) and Hsinchu-Taipei (Saxenian & Hsu 2001). Although the Malaysian

government is providing various funds and assistance for private companies to get involved in

sectors related to the MSC, many companies tend to wait for the government to guide them

rather than propose their own ideas. Market players need to initiate their own imaginative and

innovative ideas, similar to Silicon Valley, Hsinchu-Taipei, and content industries in Japan.

In general, most Malaysian entrepreneurs in the MSC core business areas—such as software,

system integration, and web design and content—still depend significantly on the government

in terms of supplying funding and to implement new ideas. Ramasamy et al. (2004) have

pointed out that Silicon Valley was initiated by the private sector, while the MSC is a

government-mooted initiative like Singapore’s Science Park, and the Kanagawa Science Park

in Japan. Hence, one of the MDeC missions is to train local companies to be independent and

to foster international collaboration (3D World Magazine, 73). Policymakers in Malaysia have

been supportive in providing tangible facilities for the success of the MSC project before the

year 2020, although intangible ingredients such as management skills are still lacking (Jarman

& Chopra 2007; Ramasamy et al. 2004). Compared to the first decade since the launch of the

MSC, there are many noteworthy changes, particularly during the past five years, and

specifically in the content industry. As a result, other developing countries such as Hong Kong

and Thailand had used the MSC as a model to build their own similar projects.

Malaysia has less than ten years until their Vision 2020 is realised, and at the moment there is

not much available data on the progress of the MSC. Although the government is promoting

Cyberjaya as the MSC’s capital city, many local companies and key players are reluctant to

operate their businesses from there. In comparison to cities like Kuala Lumpur and Shah

Alam, Cyberjaya is still not attractive enough to live in. While basic infrastructure like housing

and public transportation are not complete and convenient for people to use, in the past three

years there have been some improvement in these amenities.

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3.2.2 The Content Industry in Malaysia

Post‐independence (1957‐1980) 

After Malaysia achieved independence, their content industry was closely influenced by other

British colonies, particularly India and Hong Kong. Many Indian film makers and script writers

came to Malaysia, and the influence of Indian films was significant. Many Hong Kong film

producers such as Shaw Brothers and Cathay Film financed Malaysian films (Rosnan, Ismail

& Mohd Daud 2010). Singapore became the centre for Malaysian filmmaking. During the peak

period of Malay films in the 1950s and 1960s, many major Asian awards were won by Malay

films. Unfortunately, after the centre for Malaysian films was moved to Kuala Lumpur, this

successful era ended. The primary reason for this demise was political—the Malaysian

government began focussing attention on national unity (ibid.).

Transformation to Developing Country (1981‐2000) 

In 1983, the Prime Minister of Malaysia, Dr Mahathir bin Muhammad launched the “Look East”

policy, which diverted attention to Japanese and South Korean systems, and became

Malaysia’s new model in developing its economy. More networking and technology exchanges

with Japan and South Korea took place, and in 1985, Malaysia produced its first car, the

Proton Saga, based on Japanese technology from Mitsubishi. During this era, Mahathir

wanted to expose Malaysian people to the idea that western civilisation is not the only

advanced community in the world. Asian countries like Japan and South Korea are also at par

with the west in terms of their economic development. His intention was to encourage

Malaysians to trust and use their local products.

Modern Malaysia (2000 until the present) 

Currently, Malaysia is seeking to enhance economic, technological, cultural, and scientific

creativity. The government announced 2010 as the “Year of Creativity and Innovation”,

acknowledging that innovation creates jobs and boosts national competitiveness (New Straits

Times 2009). Recently, the MICC minister, Dato’ Seri Rais Yatim (Utusan Malaysia 2010)

announced that the policy on creative economy would be presented in March 2011. This

represents move by the Malaysian government to provide a clearer set of guidelines to key

players.

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The current Prime Minister of Malaysia, Dato’ Seri Najib Tun Razak constantly mentions

technology, creativity, and innovation in his speeches whether when he is addressing issues

of culture, education, health, religion, and tourism. In his speech during the launch of

1Malaysia Chinese Association (MCA) Medical Foundation, Dato’ Seri Najib urges Malaysians

to be creative and innovative in helping others who are in need of financial assistance for their

basic healthcare needs. The responsibility should not be left to the government alone in

servicing healthcare needs (Mysinchew 2010). In addition, the top management of many

private organisations have stressed the importance of culture, tourism and creative industries

in their speeches and planning. Conglomerates such as Petroliam Nasional Berhad

(Petronas), YTL Corporation, and the AM Bank have been working closely with the

government in boosting infrastructure to an international standard. These private companies

play an active role in developing ICT infrastructures, and funding R&D activities in creative

sectors to generate better facilities in the country. The government is committed to give

support and funding for development around the MSC (Vicziany & Puteh 2004).

The Malaysian government and private organisations have been working together to create

awareness through conferences, dialogues, seminars, talks and workshops. In 2009, the

Ministry of Information, Communication, and Culture (MICC) organised a conference in Kuala

Lumpur. With the title Creative Industry: A New Dimension of Economic Growth, the

conference aimed “to gather all media players and related industries from local and abroad to

share their knowledge and exchange of ideas to formulate a framework for the development of

creative industries in Malaysia” (MICC 2009). These academic events can assist policymakers

and key players. The importance of the creative economy is acknowledged; support is

provided financially and by the development of new policies (refer MSC 2009; New Straits

Times 2009; Utusan Malaysia 2010). Meanwhile R&D on cultural tourism and creative

industries is low and funding for ventures is difficult to obtain in comparison to funding

available for R&D by pure sciences and economics disciplines (Lai & Yap 2004). The social

science sectors have not received enough endorsement from the government and private

agencies in Malaysia.

In her column in The Star, B.K. Sindhu (2009) claims that the Malaysian government has

bureaucratic ways of dealing with creative talent, and argues that the country often loses

talent to other countries, particularly to their close neighbour, Singapore. As Richard Florida

(2005) notes, however, this is a global phenomenon; Malaysia is not isolated. Sometimes

when a country has many expatriates working abroad it could be an advantage for the

country. Losing people overseas does not mean that they will not return or contribute the

expertise gained to their home country. For example, expatriate Chinese, Indians and

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33

Taiwanese (Saxenian & Hsu 2001) are known to contribute significantly to their homeland

country.

To speed up their creative economy development Malaysian government has introduced

policies on Intellectual Property (IP), Information and Technology (IT), media, and Research &

Development (R&D). These policies--including The Patents Act 1983; The Copyright Act 1987;

The Industrial Designs Act 1996; The Layout Designs of Integrated Circuits Act 2000; The

Optical Discs Act 2000; and The Communications and Multimedia Act 1998—have been

formulated to boost and support the expansion of ICT activities in Malaysia (refer MSC 2009).

Recently, Malaysia has become a member of the World Intellectual Property Organisation

(WIPO) (MSC 2009), and the Ministry of Science and Technology (MoSTI) and MoHE are

among the two active government ministries—in 2007, MoHE the development of four new

public research universities. Together with other organisations such as MoSTI, MoHE fully

support the development of R&D and IPs among these institutions. MoHE also promised to

give more authority to these four universities to make their own decisions on future planning

and direction. This act is in line with the MSC milestone and target outlined in table 3.2.2.

Table 3.2.2: MSC Milestone and Targets Phase I (1996-2003) Phase II (2004-2010) Phase III (2011-2020) 1 Corridor

50 world class companies

Launch 7 flagship applications

World-leading framework of cyber laws

Cyberjaya as world leading intelligent city

Web of corridors

250 world-class companies

Set global standard in flagships applications

Harmonized global framework of cyber laws

4-5 intelligent cities linked to other global cyber-cities

All of Malaysia

500 world-class companies

Global test-bed for new multimedia applications

International CyberCourt of Justice in the MSC

12 intelligent cities linked to the global information highway

(MSC 2010)

Bunnell and Coe (2005) have noted that the development of MSC project is intended to

‘upgrade’ Malaysian citizens and continually re(educate) them through local and electronically-

mediated interaction with ‘intelligent’ others; ‘smart families’ and Smart Schools plan promote

active use of leisure time. However, the zone separation around the MSC area may create a

highly socially and spatially differentiated national territory of government (Ong 2004, p 47).

Beside the MSC model is adapted from Western ideas with local modification its feasibility is

still a major question. As this table shows, not all MSC milestone and targets have been

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34

accomplished, partly due to the global economic recession of 2008 when the government had

to reduce the budget for the megaproject.

Vicziany and Puteh (2004) argue that Malaysia has lost about a decade in establishing the

kind of policies that support the development of the kind of knowledge based-economy that

has been identified as the primary factor for the growth of ICT sectors in developed countries.

Although the Malaysian media is heavily controlled by government (see Zaharom & Kim

1998), the launching of the MSC project saw a significant number of independent online media

start-ups.

3.2.3 The Animation Sector in Malaysia

Animation in Malaysia started in 1946, when simple animation for documentaries and public

service filmlets were produced by the Malayan Film Unit (now National Film), which was

founded by Australian war photographer, Gillie Potter. The first Malaysian short animated film

Hikayat Sang Kancil (A Mousedeer Tale) was produced by the unit in late-70s (Muthalib

2007). Malaysia’s first Malay cartoon and humour magazine Gila-Gila (Mad) appeared in 1978

(Anour 2009). The sector started to show substantial growth when Mahathir became the Prime

Minister in 1981. However, only in 1995 after the government’s initiative to develop ICT

sectors, did the animation sector become commercialised (Muthalib 2007). Almost at the

same time, Gila-Gila attained the number one spot with the largest local magazine circulation

in the country (Provencher 2001, 187). After the success of Gila-Gila, more local cartoon

publications--including Gelihati (1978), Batu Api (1985), and Ujang (1993)—began to emerge.

The cartoon sector in Malaysia reached its highest point, and cartoonists were well-paid and

treated like celebrities. In 1994, the most prominent Malaysian cartoonist turned to animation;

Mohammad Nor Khalid—famously known as Lat—was awarded the noble title of “Dato” by the

Sultan of Perak, in recognition of his contribution to the national cultural heritage with his

popular cartoon book, Lat: The Kampung Boy (refer to Appendix 1).

Private companies began to produce animated television series, and some used the popular

cartoon publications as inspiration for their television characters—the first television animated

series called Usop Santorian was aired in 1995 using computer technology, (one of the

earliest to use computer in Malaysia) (Mahamood 2001, 140). These companies also started

to produce animation for the Malaysian government television channel RTM 1, which agreed

only to broadcast Malaysian animation, and paid the producers handsomely (US$10,000 per

episode) (Muthalib 2007). Unfortunately, their payment could take months to settle, causing

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35

animation producers to face financial problems and close operations after two to three years.

Consequently, many animators and creative workers began working in unrelated sectors.

The animation sector reached its lowest point when Mahathir stepped down as Malaysia’s

Prime Minister. The newly-elected Abdullah Badawi concentrated on traditional sectors like

agriculture and building a modern Islamic image (“Islam Hadari”) for the country. During this

time he pushed the idea of marketing Malaysia as an international “halal hub” for the Muslim

market (Kamin, Lohan & Chandran 2008). However, since half of Abdullah Badawi’s term as

prime minister was dealing with economic recession, his focus was more on the survival of the

country. The development of the MSC gradually slowed until the current Prime Minister, Najib

Abd Razak took his post in 2009. Not only did the animation sector then become stronger, but

other local content, including advertising, electronic media and print, film, and television

series, grew significantly. Unfortunately, local television channels were cautious with local

animation, and preferred to buy foreign products. As a result, statistics by the National Film

Development Committee (FINAS) show the total number of imported films from 2004 to 2010

(table 3.2.3a) is significantly higher compared to locally produced films (table 3.2.3b) in

Malaysia.

Table 3.2.3a: Importation of Films in Malaysia from 2005-2011 (January)

Types of

Films

2005 2006 2007 2008 2009 2010 2011

(Jan)

Feature 4,555 3,213 3,228 2,004 3,809 9,793 311

Documentary 3,312 1,477 2,262 1,839 543 1,250 54

Animation 0 155 7 3 15 433 251

Trailer 816 916 907 726 400 545 34

Sports 116 208 210 247 63 465 14

Commercial 487 691 727 700 805 1,166 73

Comedy 0 10 11 2 1 2 0

Promotion 359 716 666 400 357 581 12

Reality TV 0 5 0 0 0 0 0

Game Show 0 69 0 0 0 0 0

Education 0 6 4 0 0 0 0

Entertainment 0 0 0 0 0 967 301

Others 1,849 0 0 0 0 0 0

Total 11,494 7,466 8,022 5,921 5,993 15,244 1,051

(FINAS 2011)

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Table 3.2.3b: Malaysia Local Film Production Statistics 2003-2010

Year No. of Films Gross Ticket Collection

(RM/million)

Production Cost

(RM/million)

2003 16 23.4 23.78

2004 22 27.2 43.24

2005 23 26.7 29.77

2006 28 29.7 38.89

2007 28 30.3 37.23

2008 28 45.9 N/A

2009 27 50.8 40.51

2010 38 75.9 46.61

(FINAS 2011)

Despite this, locally-produced advertisements, drama, films and other local television

programmes increased substantially after 2008 (refer Appendix 2). In 2010, the Malaysian

local reality television show, Imam Muda, produced by Astro Oasis, attracted international

attention for its unique content. Contestants recited verses from Quran, washed corpses,

slaughtered sheep according to Muslim rules, and discouraged youngsters from engaging sex

before marriage and taking drugs (AFP 2010).The show was looking for young Muslim

leaders.

Animated films were less active than television programmes. In 1990, ZHA Film Production

made Mat Gelap, the first film to combine animation and live acting. In 1998, the first fully

animated Malaysian film was produced. The failure of Silat Lagenda was due partly to the

economic recession, and also because of a lack of interest among local audiences, who

criticised the production for its poor quality compared to other international products, without

considering other aspects like much cheaper production costs and animators who never had

formal training in animation (Muthalib 2007). At least two more animated films were produced

without much success. In addition, feature films in Malaysia did not receive good response

from the public. Unlike Indian viewers who according to Barrowclough & Kozu-Wright (2008,

30) appreciate their own films, Malaysian audiences are claimed to be unsupportive. The

small market size of an adult audience group for local animation market in Malaysia could

have contributed to this failure (Muthalib 2007).

However, one company managed to prove that local animated films can attract local

audiences. Les’Copaque Production (LCP)’s first 3D animation film, Geng: Pengembaraan

Bermula (Gang: The Adventure Begins) opened in 2009 and managed to collect more than

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37

RM6.3-million dollars in Brunei, Malaysia and Singapore. Earlier, LCP produced the hit

television series, Upin & Ipin (2008). Although the first 3D effort by a Malaysian company was

reportedly produced by Young Jump Animation—Nien Resurrection (2000)—the film was

released in video compact disc (VCD) format, and marketed as “Made in Japan and Hong

Kong” (Muthalib 2007). Today, LCP television series and merchandising products have

managed to penetrate Asian market. Their formula, featuring Malaysian multi-ethnic and

religion themes and discourses in their animation products, has gained attention from the

regional market for its unique approach, and differences from other products.

3.2.4 Cultural tourism sector

UNCTAD (2008, 117) states that arts and crafts are the only creative industry where

developing countries have a leading position in a global market where the key developing

countries are China, SAR Hong Kong, India, Turkey, Pakistan, Iran, Indonesia, Thailand,

Republic of Korea and Malaysia. Their cultural tourism products—including the arts,

handicrafts, heritage sites, and traditional music—have significant potential. In 2004, the

whole of the Asian region received 153-million international tourist arrivals, the second highest

after Europe. Cultural tourism activities are identified to be among the top three reasons for

tourists to visit Asia (Khalifah & Tahir 1997, 186; UNCTAD 2008, 23). Many popular cultural

tourism sites in Asian nations have been announced as world heritage sites by UNESCO. The

region has rich cultural resources, and many are not well-developed because of financial

constraint and lack of modern technology. With the rapid evolution of ICT, more cultural

tourism producers are implementing technology to keep their products and services

competitive and sustainable in the market. This has created a significantly close relationship

exist between ICT sectors and cultural tourism.

China, for example, is among the developing nations that put much effort in developing their

cultural tourism sector with the combination of modern elements. Malaysia is also one of the

important countries in Asia with many cultural tourism resources and two UNESCO world

heritage sites—Malacca and George Town—that provide knowledge and experience to the

visitors, and contribute to the socio-economic stability of the region. The World Tourism

Organisation (WTO) (2004) identified Malaysia as one of the most popular destinations in Asia

for international tourists, and in Southeast Asia, Malaysia captured approximately eleven per

cent of international tourist arrivals (WTO 2006). Cultural tourism products are identified as

one of the major resources for Malaysia (Khalifah & Tahir 1997, 178), and are constantly used

to market the country in all sectors. In addition, the government has been marketing Malaysia

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as a modern Muslim country since the 1990s (Westhueizen 2004), including in content and

tourism industries (Khalid 2009; Westhueizen 2004).

Despite this, Mohamed (2006) notes that some heritage buildings and sites are not fully

utilised, and reveals that in 1996, there were 30,000 heritage buildings located in 162

Malaysian cities. Most of these buildings are located in historic cities such as George Town,

Ipoh, Kuala Lumpur, Kuching, Malacca, and Taiping. Unfortunately, not all of these buildings

are well-maintained as a result of policy problems and duplication of government roles and

functions. The Ministry of Tourism (MoTour) is responsible for marketing and promoting

Malaysia as a tourism destination domestically and internationally since 2004. In addition, the

Ministry of Culture, Arts and Heritage (later known as MICC in 2009) is one among several

that oversees the Malaysian cultural sector.

The separation of the cultural sector from MoTour means that the ministry has lost control

over this sector. As a result, many cultural producers in Malaysia are unfamiliar with their real

markets, although the majority are still operating for the purposes of tourism. Occasionally, the

overlapping functions between these two ministries complicate matters. As Pandiyan (2009)

argues, many government departments are run under fragmented and tiered structures,

resulting in much duplication or contradiction of duties. He continues, highlighting that

Malaysian civil servants are known for their ineffective delivery of public service. Also, MICC

has many responsibilities in other many subsectors including information and communication.

Nonetheless, this problem is not unique to Malaysia; other developing countries, such as

China, Indonesia, and India, also face similar challenges (UNCTAD 2008, 44).

With rapid global development of technology, more cultural producers and operators are

embracing new technology in their products and services to remain competitive. This

worldwide trend is being embraced slowly by Malaysia’s cultural producers. The adaptation of

these cultural products and services by Singapore cultural producers since the early twenty-

first century has brought success in the world market (Yue 2006).

The Museum Sector – Past and Present 

Museums play an important role in maintaining historical artifacts and collections. According to

ICOM (2010), the museum is a bridge for the past and future. The evolution of ICT has shifted

the role of traditional museums to become more multipurpose in offering tangible and

intangible products and services to their visitors or guests. Traditionally, museums have

offered a space to collect and display material treasures of the past. Now, modern museums

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are adopting an approach of engagement. The museum sector presently is a vast field that

involves a diffusion of different knowledge platforms interacting with one another to develop

and establish resource and learning centres that focus on national heritage. With the

endorsement from UNESCO in 1974, ICOM acknowledged the changes on the role of

museums, and revised the definition of a museum as “a non-profit making, permanent

institution in the service of society and of its development, and open to the public, which

acquires, conserves, researches, communicates and exhibits for purposes of study, education

and enjoyment material evidence of humankind and its environment”. However, this revised

role means that operating costs for modern museums are increasing, and require the

museums to find further forms of funding. This is when creative elements play a significant

role in museum management. As a result, more museums are introducing other services like

souvenir shops, book stores and cafes to generate side income (Gilmore & Rentschler 2002).

Gilmore and Rentschler (2002) note that contemporary museums offer a variety of products

and services not only to maintain their competitiveness, but also to generate income. Further,

with significant budget cuts, the management of museums have to locate alternative,

supplemental funding, particularly in developed countries like Canada, the US, and UK

(Goulding 2000). However, in certain countries such as Australia and Malaysia, the museum

sector is comprised of public, non-profit entities. Some of these public museums may charge

minimal entrance fees for visitors, or to enter specific exhibition spaces, but not with the

intention to make profit (Zan 2000). Since museums in general are still regarded for

safeguarding invaluable, irreplaceable national treasures, the public may not welcome

admission fees, particularly when the collections or exhibits are not of a high standard. The

existence of museums is void without their collections (ICOM 2010). A reputation of a museum

depends largely on its vital collection and methods use to disseminate them through exhibition

techniques, interpretation programs, marketing and publication on various mediums (Stephen

2001). Collections provide identity and enhanced popularity to the museums, but other

modern elements such as architecture, conservation methods, and technology contribute

significantly in attracting visitors.

Museums are also centers of informal learning. Resources and museum objects educate and

enlighten the human spirit through various genres of museums that include history, art,

science or natural history (Goulding 2000). The existence of museums feed public appetites

for education, conservation, and preservation of history, culture and natural history, and

tourism. Today, museum management offers significant challenges. Stephen (2001) argues

that certain ethics and policies regarding museum functions such as acquisition, research,

concepts, and education and enrichment should be drafted and become core aims for

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museum professionals. Nonetheless, outside of academic circles, there is little research that

accounts for the actions and voices of the actual visitors to museums. What museum curators

and related official bodies are good at is collecting numbers (Goulding 2000).

However, much museum research has been criticised for its lack of any attempt to integrate

their data into a coherent framework (Moscardo 1996; Stephen 2001), and for failing to use

the results to advance an overall understanding of the nature of each visit (Merriman 1989;

Stevens 1989; Stapp 1990). Visitors bring a multiplicity of interpretations to the reading of

displays, and the fact that artefacts may be subject to multiple interpretation has important

implications for the way museums regard and present themselves (Smith 1989, 1; Urry 1990;

Squire 1994). Much work on museums as service providers has tended to concentrate

predominantly on museums as institutions of culture that are primarily ideological in what they

choose to present (Simpson 1993; Byrne 1991; Thomas 1991; Jenkins 1991). Also, much

museum research is concentrated in developed countries.

3.2.5 The relationship between cultural tourism and creative industries

Among the key issues this research wishes to highlight is the claim of overlap between the

tourism and creative industries on cultural products. Literature about culture (Scott 1997),

tourism (Seaton 1996, 25) and creative class (Florida 2005) shows close link between culture,

tourism and creative industries. WTO (2004) reported that cultural tourism is one of the top

three reasons people travel domestically or internationally. As a result, many countries are

actively promoting cultural tourism to local and international tourists (Smith 2007, 2).

The changing role of museums requires management to become imaginative when

formulating the products and services offered to visitors. For example, programs like

Sleepover @ Museum add a new experience to products. UNCTAD (2008, 23) has pointed

out that contemporary consumers use the Internet, mobile telephony, and digital media as

their information media. This not only expands their range of cultural experiences, but also

transforms them from passive recipients of cultural messages into active co-creators of

cultural content. Hence, the dependency of the museum sector on ICT and creative activities

is becoming vital in attracting more visitors or tourists, particularly the younger market. With

that realisation, the term, creative tourism, has been introduced recently to highlight the

mixture of tourism products and services, and creative elements.

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Creative Tourism  

The term creative tourism is an extension of cultural tourism. Richards and Raymond (2000)

are among the first authors to use this term, and argue that consumers are increasingly

looking for more engaging, interactive experiences that can help them in their personal

development and identity creation. Modern consumers are more exposed, educated, and

sophisticated, and always searching for new experiences. In order to remain competitive and

sustainable, the stakeholders of site need to be creative and innovative in developing and

promoting their cultural tourism products. This innovation can attract tourists and investors. By

recognising their resources and the network systems around them, stakeholders can identify

the strengths and weaknesses of their resources, and specifically assist policymakers in

developing good and effective policies for new sectors.

Few authors discuss about the relationship between culture, tourism and creative industries

(exceptions include Richards & Wilson 2006; Roodhouse 2006; Smith 2007). Richards and

Wilson (2006) note the close connection between the three sectors, and their co-existence in

the past, present and in the future. Cultural tourism is a significant factor in attracting tourists

to a destination, and requires creativity and technology in order to ensure competitiveness

with other tourism products. The intangible nature of some tourism products means that

producers have to use their imagination and ICT to make their products become more

tangible. Creative tourism possesses the right characteristics to meet the requirements of

demanding tourists. However, the concept of creative tourism is not widely used in academic

research work or in the tourism industry. A thorough investigation is needed to examine into

details of the relationship between the creative and tourism industries, particularly to refine the

concept and framework so that a strong theory can be built. The usage of creative in the term

will be challenged by many, and the promotion of culture as a commodity in the tourism

industry has already created heated debate in the literature. This research will not engage in

deeper discussion about creative tourism, other than to recognise that tourism researchers are

developing this term further.

3.2.6 Cultural protection

Initially, many leaders in developing countries had seen western culture as the only way for

their countries to move forward. Mahbubani (2008, 127) points out that Kemal Ataturk—who

ruled Turkey from 1923 to 1938—believed Turkey should join the western world by adopting

western values. Ataturk expressed this in symbolic terms by calling fellow Turks to abandon

specifically Muslim head-gear. To date, however, Turkish westernisation policies have failed to

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bring any positive transformation. Turkey is still a developing country, although relatively

westernised (Mahbubani 2008, 154), and the country’s long battle since 1959 to join European

Union (EU) is still in process (Arikan 2006, 1). Later generations of Asian leaders, however, do

not share Ataturk’s enthusiasm. Ghandi (India), Sukarno (Indonesia), Mahathir Mohammed

(Malaysia), and Lee Kuan Yew (Singapore) have been sceptical of western culture. They have

been inclined to protect culture values, but at the same time acknowledge the importance of

western economic advancement and technology.

Contemporary Asian leaders had been vocal about cultural protection for their countries. In

addition, Mahathir’s constant criticism towards western policies saw western leaders label him

as “anti-western”. The Look East Policy launched in Malaysia encouraged the public and the

region not to idealise the west. As a consequence of postcolonialism and globalisation, these

kinds of Asian ideologies began to dominate public attitudes in the late-1980s (Yue 2006).

Although Asian countries like Japan, Singapore, South Korea and Taiwan have reached the

status of developed countries, their governments remain protective of their culture. In

recognition of this, the Malaysian government has focussed on protecting the country’s unique

culture, multi-ethnic identities, and religion, making Malaysia one of the first countries in the

world to proactively promote this image.

A Multicultural Country 

Malaysia is a multi-ethnic country, with a culture that has distinctive features; successive

governments since the 1950s have promoted the calm nature of their mixed cultures and

religions. The three major ethnics include the Malays, Chinese and Indians who shape the

country’s culture, while other smaller minorities such as the Thais and “Baba Nyonya”

(Chinese mixed with Malay community) maintain a notable influence. Malay is the national

language, while other minorities are free to speak their own languages. Malaysia is a

moderate Muslim country, where Buddhism, Hinduism, Christianity and Taoism also are

practiced openly. The Malays opened the country to outside influences from the eighth to

fourteenth centuries, and during British colonisation in the eighteenth-century invited Chinese

workers to mine tin, and Indians to work on rubber plantations. Since then, Malaysians have

learned to live with a multitude of differences and similarities.

Before independence from Britain rule, a lack of socialising and communication existed among

ethnic races. These groups read Chinese and Indian publications, spoke their mother tongues,

and established their own schools, which followed curriculums from their homelands (Fenton

2003). Few could speak Malay, and in 1969, Malaysia experienced the most extreme racial

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tension in its history, when two Chinese extremist political parties mocked the Malays (The

National Operations Council, 1969, 28-29), and supported Lee Kuan Yuew (when Singapore

was under Malaysian rule) with the slogan “Malaysian Malaysia”. This activism began in Kuala

Lumpur and spread throughout Malaysia.

In the wake of these activities, the Malaysian government took careful measures to make sure

the same incident didn’t happen again. Public discussion of sensitive issues relating to

ethnicity and religions are prohibited, which has sparked much criticism from western

politicians. While the growth of ICT has meant that these issues are discussed freely on the

Internet, the government is trying to impose some control. After centuries of living together, all

ethnicities in Malaysia embrace each other’s cultural traditions.

Therefore, animation and cultural tourism institutions like museums incorporate the multiethnic

and religion culture of Malaysia, creating different experiences for audience or visitors. This

advantage has been promoted extensively by the government locally and internationally,

however, these institutions have to compete with a rapidly growing global culture.

3.2.7 Global Versus Local Culture

Pietersen (2009) argues that the challenges of cultural globalisation first became apparent

around 1980. The phenomenon can be categorised into several phases: print, radio, and

television, followed by film, and now, the Internet. Today, the Internet has become one of the

most powerful mediums in the world, where news can be gathered and disseminated within

seconds. This has created a virtual culture among Internet users or communities that extends

across the world. Hence, this may create cultural clash between the new community formed

by the Internet itself and the other existing communities bound by locality and cultural tradition

(Hongladarom 1999). On one hand, there can be distinct culture differences between some

countries, while countries within the same region might share cultural similarities. In addition,

cultural differences even occur within the same country in terms of the accent, costume, food

and lifestyle.

Cultural globalisation covers a wide scope, including cross-cultural encounters, cuisine,

fashion, global-local relations, language, lifestyles, migration, marketing, media, film, music,

technology. Knox (1996, 124) defined globalisation as “a globalised infrastructure of unitary

nation states, together with international agencies and institutions, global forms of

communications, a standardised system of global time, international competitions and prizes,

and shared notions of citizenship and human rights”. In addition, many definitions of

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globalisation relate to economics, culture, human rights, politics, and neoliberalism (refer to

Kong 1999; Pietersen 2009, vii; Robertson 1992). As Pietersen (2009, 8) notes, there is more

controversy than consensus surrounding the meaning of globalisation. The areas of

consensus on this topic are narrow in comparison to the controversies as described in Table

3.2.7 by Pietersen (ibid.). For this section, the discussion on global culture will focus on those

that relate to the topic of this research, specifically the cultural tourism and animation sectors.

Table 3.2.7: Consensus and Controversy Relating to Globalisation

Consensus – Globalisation: Is being shaped by technological change Involves the reconfiguration of states Goes together with regionalisation Is uneven Controversy What is globalisation? Is globalisation a recent or a long-term process? Is globalisation essentially economic or multidimensional? Does globalisation exist or is it rhetoric “globaloney”? Is globalisation is neoliberalism or capitalism? Is globalisation manageable?

Pietersen (2009, 8)

In a modern world, cultural globalisation once related substantially to western culture,

particularly from the US, and known as Americanisation. With the majority of information

sources and media dominated by western countries, this kind of globalisation is almost

impossible to stop, and is influenced primarily by the western ideals of liberalism,

individualism, respect for human rights, and democracy (Hongladarom 1999). This “global

culture” is supposed to help create a more peaceful world. However, there is also a fear of a

specific effect of cultural globalisation—the “airport culture”, where the rich diversity of human

civilisation will be homogenised and vulgarised. This fear has been vocalised in the rhetoric of

“Asian values”, which recently has attained a certain political significance, particularly in the

expression of various Islamic resurgence movements, and even in some European regions

like Austria (Osman 1998, 174; O’Meara, Mehlinger & Krain 2000).

Although American culture still influences global culture, there are many other key players.

“Asian styles” are popular: the world entertainment industry has experienced Bollywood,

Japanese “cool”, and the Korean waves. Japanese manga and anime, and Bollywood dancing

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have been embraced around the world. According to McGray (2002), Japan has become the

new world superpower since the 1980s, and today their influence is growing stronger. From

pop music and consumer electronics, architecture and fashion, to food and art, Japanese

culture has a growing cultural reach. The successful Japanese strategies of adopting the

western culture but also preserving their own culture have encouraged other non western

countries follow their lead. As the twentieth-century unfolds, it is becoming apparent that the

Americanisation influence is losing its recognition as the only culture accepted in the world, to

a mixed culture between the East and the West. The evolution of global ICT sectors means

that global culture has spread at an increasing rate. At first, many Asian governments—

including China, India, Malaysia and Singapore—attempted to stop or slow the spread of

global culture, but they eventually realised such a goal was unachievable. Consequently,

these countries adopted a different approach, blending the global and local cultures.

Local culture 

Local culture refers to authentic or traditional values and practises that accumulate within the

majority of a community (Hongladarom 1999). Normally, local cultures are shared among the

other neighbouring countries in the same region, such as Australia and New Zealand, the US

and Canada, and Malaysia and Indonesia. According to Cohen (1988) local culture generally

serves as the principal example of such commoditisation, in particular “colourful” local

costumes and customs, rituals and feasts, and folk and ethnic arts become touristic services

or commodities, as they come to be performed or produced for touristic consumption.

Greenwood (1977, 131) argues tourism activities will direct areas in the life of a community

that prior to its penetration by tourism have been within the domain of economic relations, and

regulated to commoditisation by the criteria of market exchange. Commoditisation allegedly

will change the meaning of cultural products and of human relations, making them eventually

meaningless. However, Cancilini (1992, 31) and Murphy (2003) argue that it is necessary to

add modern elements to cultural products for their survival. Furthermore, local culture does

not belong exclusively to one community, particularly as migration has become a common

factor in human life. All cultures to some extent share similarities and differences.

Normally, before any culture can be accepted on a global scale, it must be accepted and have

a substantial impact within its own country. Both Japanese animation and manga, and Indian

films and songs had a significant impact on their local audiences before they became popular

with international audiences. This also is due to the significant number of their immigrant

groups located all over the world, particularly in the US and UK. These immigrants (either

permanent or temporary) directly or indirectly introduced their culture in their adopted

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countries. Therefore, if we travel to cities like Dubai, Japan, London, Paris, New York and

Sydney, there are many Japanese and Indian restaurants in those cities. These two countries

managed to export their local culture to the global market, and it has become a common

characteristic for larger cities either Japanese or Indian restaurants. At times, when a local

culture wants to gain better acceptance from the larger global market, they tend to marry their

local culture with global culture. The subsequent result is the term, glocal, which is adopted in

order for a product to develop further in the world market.

Glocal Culture 

The hybridisation of global and local into the term, glocal was coined by Roland Robertson in

1995. The term became popular in the early 2000s and has been accepted by academics and

politicians as a description of the combination of global and local culture (Giulianotti &

Robertson 2007). Apart from glocal, other words to describe the mixture of global and local

culture include cultural adaptation, transfer, exchange, accommodation and multicultural.

Almost all countries are adopting glocal culture in order for their products to become more

appealing in the global market. This contemporary characteristic has much to do with the rapid

development of ICT. Japan, India and South Korea have been successful in marrying their

local and global culture in the entertainment products that they market to wider audiences,

although generally their local culture is more prominent than the global culture. As a result,

local actors, actresses and musicians are also embraced by the international market. This has

contributed significantly to their content industry sectors.

3.3 Conclusion: Positioning Malaysia in Creative Economy

While Malaysia has significant potential for developing their creative economy through the

enhancement of their cultural strength, this potential has only been recognised in the last five

years. The government and private agencies are working together to speed up development

relating to ICT sectors and creativity (Vicziany & Puteh 2004). Together with other related

policies and continuous support from all organisations, the future of Malaysia’s creative

economy is significantly bright (UNCTAD 2008). Currently, steps are being taken by the

Malaysian government to amend the Patents Act 1983, so that the country can join the Patent

Cooperation Treaty (PCT) administered by WIPO. This amendment will allow greater flexibility

and efficiency for an applicant seeking patent protection in a number of jurisdictions,

compared to the existing framework (MICC 2009). Also, the government is in the process of

drafting legislation on Personal Data Protection, and considering an Electronic Transactions

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47

Act, and an Electronic Government Activities Act to regulate the collection, possession,

processing and use of personal data according to certain prescribed principles.

Normally, the major challenge for Malaysia to monitor and maintain has been the

implementation and enforcement processes—weaknesses that have been the subject of

constant debate among the public and the government. To solve the problem, and to take into

account the rapid growth of ICT, the government had implemented ICT in their everyday

operation and encourages the public to interact with them directly through this medium. The

Internet and other media channels are the new methods for the government and public to

communicate in the country. For example, the majority of the cabinet ministers have their own

Facebook account and personal email to allow communication with the public. However, the

effectiveness of these processes has not been determined, because only half of the Malaysian

population own a personal computer, and the Internet connection in some regions is unstable.

In positioning herself as a creative economy, Malaysia is using resources such as multi-ethnic

and religious cultures, political stability, cheap human capital and safety. These are among the

significant advantages for Malaysia compared to other countries. By doing this, the country is

offering something unique to the market that will be distinctive from other products, building a

strong image to remain competitive, and providing memorable experiences to their customers.

Multi-ethnic and religious cultures have long been part of Malaysia’s local identity, particularly

in the tourism industry. Now the creative economy sector is using these elements to introduce

Malaysia in the global market.

This country has substantial potential to become one of the powerful countries in the global

creative economy. However, Malaysia is expected to encounter many obstacles and fierce

competition, particularly from neighbours such as Indonesia, Singapore and Vietnam, which

are already established in creative sectors. The progress of the creative economy in Malaysia

currently is in a slow phase compared to other matured sectors like manufacturing and tourism

industry. This research has found that many of the policies relating to creative economy have

been formulated by Malaysian government (refer to MSC website). However, their

implementation and enforcement are not efficiently applied within the various bureaucracies.

Also, the wider public in Malaysia are still not familiar with the concept of creative economy

since it is using a top-down approach. Only limited numbers of people—specifically policy

makers and those directly involved in creative activities—recognise the term, which implies

that not enough information about these policies have been disseminated to the public.

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While the creative economy is producing new opportunities for both developed and developing

countries, future challenges should not be underestimated (UNCTAD 2008, iv). This new

concept needs further investigation, particularly on the key issues surrounding the

development of creative economies in developing nations. Finally, it is important to address

the lack of a strong theory and models to support the concept of a creative economy,

especially in the context of developing nations.

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4. RESEARCH METHODS

Case study research continues to be essential form of social science inquiry. The method is appropriate when investigators either desire or are forced by circumstances; to define research topics broadly and not narrowly; to cover contextual or complex multivariate conditions and not just isolated variables; and to rely on multiple and not singular sources of evidence.

(Yin 2003, xi)

4.1 Data Collection

Two stages of data collection have been employed. Firstly, documents on the development of

animation, the content industry, and cultural tourism in Malaysia were analysed to gather

background information. Document analysis included online and printed forms, for example,

books, brochures, journals, magazines and newspaper articles. Since information about

creative economy development in Malaysia is limited in top tier journals, most data was

gathered from the aforementioned sources. According to Yin (2003, 42), to get valid and

reliable data a multiple sources approach such as document analysis, observation and

personal interviews should be used. This study also undertook electronic background

research on three case studies. Official websites, and other related information about these

organisations were analysed. This secondary data information assisted in preparing the

interview questions.

Face-to-face interviews were conducted with both organisations, using semi-structured

interviews. As the concept and definition of creative industries in Malaysia is still not clear,

personal interviews were used to ascertain “perceptions, meanings, definitions of situations,

and constructions of reality” (Punch 2005, 174-175). The key management personnel from

both organisations were interviewed for approximately forty-five to sixty-minutes each. Staff

members from different management levels and job specifications were also approached.

These interviews provided an in-depth knowledge and understanding of both organisations

and address RQ1: what are the main operational issues for Malaysian creative economy

enterprises?

Two different sets of interview questions were designed for the managerial and other staff for

each case study (refer Appendix 3). The former addressed the second research question:

What is the development path for Malaysian creative economy enterprises? Questions on the

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development of the creative economy through cultural tourism and the animation sector or

content industry in Malaysia were compared to other countries in the region, and the country’s

level of development was ascertained (refer Appendix 4). The managerial interview questions

also addressed the third research question: How do Malaysian creative economy enterprises

utilise traditional Malaysian cultural assets? The fourth research question—How can Malaysia

position itself in the creative economy in the region?—was answered from an overall analysis

of the interviews and secondary data collection.

The interview questions were amended from time to time depending on suitability and the

context of the interview. This is a normal process in a face-to-face interview session;

questions for each respondent will be slightly different due to time, cost, political, legal and

ethical constraints (Gillham 2005, 4). Due to these constraints, many researchers who

conducted face-to-face interview have to adapt their methods. To obtain rich data from the

respondents probing questions were employed when necessary. These interview sessions

were recorded with the consent of the respondents. Before this, correspondence between the

researcher and the involved organisations took place.

4.2 Case Study Organisations

The organisations chosen for the case-studies were all characterised for their utilisation of

integrated creative content, technology, innovation and culture.

Les’Copaque Production Sdn. Bhd. 

Les’Copaque Production (LCP) was established in December 2005 to provide opportunities

for local graduates to showcase their talent in the animation industry. Located in Shah Alam

city, which is situated about 33-kilometres from Kuala Lumpur, this company is located within

the MSC area in Malaysia and awarded as MSC status company. They started with ten staff

and have now expanded to fifty. Their animations series Upin dan Ipin (Upin and Ipin) was first

aired in 2008 on the free private television company, TV9. Upin dan Ipin became a major

success in Malaysia. The following year LCP produced Malaysia’s first Malaysian language

3D animated feature film, Geng: Pengembaraan Bermula (Gang: The Adventure Begins),

which became the first twenty-first century Malaysian film to earn RM 6.6 million at the box

office. This action/adventure film, directed by Usama Zaid Yassin, is set in Malaysia with an

adventure and fantasy theme that captures Malaysia’s flora and fauna, kampong or village

lifestyle, and multicultural elements. LCP products and services showcase Malay, Chinese

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and Indian ethnic cultures, and have become a phenomenon not only in Malaysia but also in

South East Asia. Since then, LCP has managed to make a significant impact in the Malaysian

market as well as other parts of the world. This company has shown significant potential,

offering the Malaysian public animation products produced by fully local talents. Upin dan Ipin

became a phenomenon in Malaysia and other parts of Asia. The sceptical local market in

Malaysia began giving attention to local animation products after the positive impact of LCP

television animation series and 3D films in the market.

Today, the company is growing rapidly and has diversified their products and services to other

related sectors, including merchandising, food and beverages, and franchising. In light of their

achievement, LCP has become the market leader in animation television series and 3D

animated films in Malaysia. Their success has also resulted in the Malaysian government and

other private corporate organisation increasing support for the development of this sector

locally and internationally. The CEO of LCP, Hj Burhanuddin has announced plans to open an

Upin dan Ipin theme park in Malaysia (2009).

Malacca Museum Corporation (PERZIM)  

The second case study examines an organisation that offers culture as a core product, with

creativity and technology added to provide a richer experience to visitors. Malacca Museum

Corporation (or PERZIM) is located in Malacca city, (Malacca), and was established in 1994

under the management of Malacca Museums Corporation, a state government agency

established in 1954, which has twenty-one museums and complexes under their

management. These include Maritime Museum Complex, the Malacca Sultanate Palace,

Malacca Gallery, and Al-Quran Museum. At the time of this project’s background study, there

were fourteen museums and galleries in operation, with another two to be opened by early

2010, and five more in the planning stage (PERZIM 2009). These museums charged a

minimal fee to their visitors, and were located close to each other in the CBD area of Malacca

city, where other major historical heritage sites are located. Malacca city was announced as a

World Heritage City in 2008 by UNESCO.

In February 2009, the Malacca Maritime museum introduced a new addition, a program called

Sleepover @ Museum (Lai 2009) (refer Appendix 5). This package offers a chance to spend a

night in the replica of the fifteenth-century Portuguese galleon, Flo De Lama (Flower of the

Sea) (ibid.). As a cultural tourism operator, this program attempts to find new ways to attract

and maintain visitors. Apart from the Flo De Lama replica, which was opened to the public in

1994, the complex comprises the TLDM (Royal Malaysian Navy) Museum, Maritime Museum

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Phase 2, and ex-KD Sri Terengganu Ship. Maritime Museum Phase 2 is an old warehouse

renovated to become a museum. Its focus is a variety of maritime themes such as maritime

life, exploration of the oceans and seas, and treasures from the sea. The TLDM museum was

located previously at the Royal Malaysian Naval Base in Lumut, Perak but was relocated to

the current location to attract more visitors. The location of the complex in the middle of

Malacca city means a larger number of visitors to the museums. Recently, PERZIM added

virtual museum website (http://www.virtualmuseummelaka.com/maritime.htm) as their latest

product line. The virtual museum caters to thirteen museums, and PERZIM is the first

museum corporation in the country to have this kind of service.

4.3 Rationale for Selection of Case Studies

The rationale for selection of these two organisations was that they combine culture, creativity,

innovation and technology in their products and services. At the same time, they also attempt

to maintain the authenticity of their products. These two Malaysian organisations offer

examples of how to mould products according to an environment to become competitive and

to better suit the market. As a result, they offer something unique and different products and

services in the market.

Table 4.3: The Differences and Similarities between Les’Copaque Production Sdn. Bhd. and Malacca Maritime Museum.

Name Core product Differences Similarities Case 1: Les’Copaque Production, Shah Alam

Music, Film, Audio visual, Animation

Privately-owned Animation, 3D, merchandise, food and beverages and franchising products Located in Shah Alam

Featured Malaysian culture, technology, imagination and inspiration

Case 2: Malacca Maritime Museum

Cultural tourism (museum, heritage, knowledge)

State government owned Cultural tourism products Located in UNESCO World Heritage City, Malacca

Featured Malaysian culture, technology, imagination and inspiration

Table 4.3 can be used as a model to show the close relationship between creative industries

and cultural tourism, as exemplified by the two case studies above. This table shows that the

creative economy concept as experienced by the two case studies in Malaysia is significantly

influenced by creativity, culture, and technology, and also demonstrates the close connection

between these three elements.

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53

4.4 Case Studies: Recruitment and Time Line

Malacca Maritime Museum was contacted through email, and within three days the

organisation responded to express their interest to participate in this study. I approached LCP

and participation was confirmed within five days. All the interviews were conducted with

Malacca Maritime Museum and LCP between December 2009 and January 2010. Both

organisations selected the employees to act as respondents for this study. The study

requested managerial staff or decision-makers for each organisation for the first interviews,

followed by the other staff in the second interviews.

The interview questions were sent to both organisations through email before the actual

interview took place. LCP was contacted first in December 2009 as its location was close to

where I was staying in Malaysia. Later, the study approached Malacca Maritime Museum, and

the interview date was confirmed as 11 January 2010 at Malacca city. It was scheduled to

take place around the Malacca Museum Complexes managed by PERZIM, in Malacca city

with its management and other staff identified by the curator as the respondents for this study.

4.4.1 Ethical considerations

The research involves interviewing and surveying people; as such, a Level 1 (Low Risk)

Ethical Clearance application was prepared for ethical review. In addition, the proposed

questions and email correspondence to the organisations were also submitted. In November

2009, ethical clearance was obtained (refer Appendix 6). The two organisations were

contacted immediately via email to inform them officially of the interest of this study to include

them as the case studies for this project. Prior to the interviews, the questions were emailed to

both organisations, together with the QUT ethical committee approval letter. In order to make

certain this research is free of coercion, discrimination and exploitation (Aguinis & Henle,

2001), participation was completely voluntary, and participants were able to withdraw at any

time. Participants were briefed before the interview was conducted, and made aware of the

intentions for and uses of the information gathered from the study (ibid.).

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4.5 The Interview Process

A total of nine staff members of LCP and four staff from PERZIM were interviewed. The

interview questions were designed to obtain their opinions and comments about their

experience working for the company. The respondents interviewed were of differing rank,

department and experience level.

About thirty questions were asked of LCP management and the museum curator regarding

their experience in developing their products and services, their future plans and opinions

about the creative economy in Malaysia. After the interview with the management staff and

curator, the remaining participants from both organisations were asked a different set of

questions. The management staff at Les’Copaque and the curator at Malacca Maritime

Museum selected all the participants. The questions were tailored to account for differences

between the two organisations and the differing experience levels and/or roles of the

participants. This was in order to gather rich information about the experience of all staff

members involved.

In the second interview, there were approximately fourteen questions asked of the staff at both

organisations. Whenever it was necessary, probing questions were used to obtain in-depth

answers from the respondents. As English is the second language for all the respondents,

some used a few Malay words in their answers.

One respondent at LCP asked to answer the question in Malay, however, the questions were

asked in English. The same scenario occurred during the first interview with the curator.

Questions were asked in English, but answered Malay. Interviews with museum staff were

conducted mostly in Malay, as per their request. However, at some stages of the interview,

participants responded in both English and Malay. This is a normal phenomenon in Malaysia,

where the majority of the population speak in a mix of English and Malay in their daily

conversations. In addition, when Malaysians speak English, they tend to use “lah” at the end

of their sentences. This is the normal way to speak English among Malaysians, and also in

Singaporean. In my experience as a Malaysian, this has been common practise among the

majority of Malaysians for at least a decade, and is a particularly popular habit among those

who live in the city. Dodds (2004) reports in his blog that:

Malaysians scored a victory when ‘lah’ was introduced into the Oxford English Dictionary. They were less happy to see that the entry listed its usage as Singaporean English.

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55

When I interviewed the Malacca Maritime Museum curator, he conducted a tour of the

Malacca Museum Complexes, which comprise more than five museums. Also, the General

Manager of PERZIM invited me to join their Sleepover @ Museum program the following

week. However, due to extenuating circumstances I did not join the program but took the

opportunity to visit several other museums managed by PERZIM around the city.

4.6 Interview Analysis Procedure

All in-depth interview responses were transcribed to identify the most cited themes. Thematic

coding enables this study to identify meaning within the data. Finally, this research includes a

comparative analysis between the two case studies. As Table 4.2 shows, there are a number

of similarities and differences between the two case studies. All respondents were asked to

give details including personal information, education background, and experience working for

the organisation.

In the case of respondents who answered in Malaysian, I translated their answers into English

when reporting their important comments. As I can speak and write fluently in both Malaysian

and English, the service of professional interpreter was not required for this study. Direct

quotations from the interviews, tables, figures and other exhibits are also presented in this

section following the classic way of presenting evidence in case study methodology (Yin 2006,

117). This has a significant impact in reporting the respondents’ answers from both case

studies, and delivers reliable and valid data for this study. When the answers given by the

respondents were too general during the interviews, this study used other information from

document analysis to support their answers.

4.7 Conclusion

The main focus of this chapter is to describe the methods used to research the two

organisations. Case study methodology was considered the most appropriate technique for

this topic considering it is a detailed investigation, with data collected over a period of time,

and involves different phenomena within their context. While other methodologies can address

these factors, case study methodology was considered the most appropriate approach for this

project (Hartley 2004, 323).

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5. CASE STUDY ONE: LES’COPAQUE PRODUCTION SDN. BHD.

We have something the West doesn’t. We have a range of cultures, of religions, the way we see art is totally different. We can adapt to any kind of design.

(AunHoe 2010, 82)

5.1 Introduction

This chapter presents extensive data gathered in the case study on Les’copaque Production

Sdn. Bhd. The chapter begins with a comparison of the MSC capital city, Malaysia Cyberjaya,

and Cyberport, Hong Kong. The aim is to give a better understanding of the development of

ICT sectors in the region, along with differences and similarities. Then, data will be presented

according to the four research questions of this thesis. The first research question will address

the seven themes identified in the answers obtained from the respondents during the

interviews. Responses to RQ2, 3 and 4 follow, based on the findings of the interviews and

desk research. Whenever required, this study will use subtitles in order ensure the key

findings are more easily identified.

5.2 Comparison of Cyberjaya, Malaysia and Cyberport, Hong Kong

This section compares Cyberjaya, Malaysia and Cyberport, Hong Kong. The history of both

Cyberjaya and Cyberport will be examined as the main national vehicle to move from the

industrial to post-industrial era amplified by Malaysia (Tyndall 2002, 178) and Hong Kong

(Jessop & Sum 2000). Cyberjaya is the capital city for Malaysia MSC project, while Cyberport

fulfils a similar function in Hong Kong. Spurred by the hi-tech boom in developed countries

such as Australia, Germany, the US, and UK, other major cities in East Asia have joined the

technology race. Despite strong government support on both projects, Cyberjaya and

Cyberport have encountered resistance. This section presents the issues and strength of both

projects, based on data gathered from interviews and secondary data.

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5.2.1 The development of Cyberjaya, Malaysia

The idea of Cyberjaya originated in 1999, at almost the same time as the Malaysian

government decided to create a new administrative and smart city (Putrajaya) for the country.

The city was planned with an emphasis on enterprise and office development that would act

as the catalyst for the growth of ICT enterprises and the multimedia industry in Malaysia.

Under the MSC plan, the 7,000 acres of freehold land that makes up Putrajaya is divided into

four clusters: a housing area; a retail district; universities (with a focus on creative industries,

multimedia and technology programs); and the business park. The establishment of the

Multimedia Development Corporation (MDeC) in Putrajaya administrates the billion-dollar

MSC project, adhering to an annual budget of 30 million ringgit (Vicziany & Puteh 2004).

MDeC is incorporated under the Companies Act of Malaysia, and owned and funded by the

Malaysian government. This combines entrepreneurial efficiency and the effectiveness of a

private company, and the authority of a high-powered government agency, and fosters an

environment highly conducive to the creation of a successful MSC Malaysia. MDeC’s primary

role is to advise the Malaysian government on legislation and policies, develop MSC Malaysia-

specific practises, and set breakthrough standards for multimedia operations.

Many incentives and benefits have been offered by the government to draw high-tech

transnational investors, including unrestricted employment of local and foreign “knowledge

workers”, exemption from local ownership requirements, and the freedom to source capital

globally (MDeC 1996). The private developer, Setia Haruman Sdn Bhd, has been appointed

by the Malaysian government to design and prepare the primary infrastructure for the

Cyberjaya Flagship Zone (CFZ) (Setia Haruman 2010). Each zone is fully equipped with a

host of intelligent network services and interactive broadband services. Setia Haruman Sdn

Bhd is involved with the whole development of the city, from planning and designing to the

provision of basic infrastructure, and the marketing and selling of land parcels and other real

estate developments to investors. They also offer assistance to MSC-status companies in

obtaining the right land and approvals for sub-division and building plans. Setia Haruman are

developing a residential area to cater to their target population of 210,000 in the next ten to

fifteen years, as well as business developments providing for up to 120,000 employees and

institutional establishments for 30,000 students (Sarif 2010, Setia Haruman 2010).

Unfortunately, the development of Cyberjaya has been slow when compared with other similar

ICT cities in countries such as China and Singapore. In addition, the city failed to attract long

term residents, in particular local people. Housing prices are generally too expensive for

Malaysian locals to afford, and public transportation is limited. Many of the houses around

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Cyberjaya were purchased as investment properties by foreigners. These factors keep the

active population of Cyberjaya relatively small and not capable of supporting a growing

business sector. Those who open businesses in Cyberjaya are either foreign or already

established local companies. The development of Cyberjaya has taken place for more than

ten years, but no significant changes to the city can be seen. There is little improvement on

the facilities and basic infrastructure of the city, although the Internet speed is reported as the

fastest in Malaysia. Overall the internet speed in Malaysia is ranked internationally at 32nd-

place, although it is one of the fastest in South East Asia. The image of the city is still largely

unfavourable among the ICT key players in Malaysia, including the LCP staff.

Over past five years however, the image of the city is slowly improving. The active role played

by MDeC in developing ICT-related sectors, locally and globally, has contributed indirectly to a

positive image of Cyberjaya. Also, with the latest technology facilities—including the

Multimedia Content Initiative Centre [MAC 3]) and the incentives provided by the Malaysian

government and employers (Ramasamy et al. 2004)—more Malaysian creative talents who

reside abroad have chosen to work with the Malaysian government and various market

players to assist in the development of creative sectors in Malaysia (3D World Magazine;

MDeC 2010). Some expressed interest in opening branches of their company in Cyberjaya,

for example, Rhythm and Hues Studio. Their presence in Cyberjaya helps to promote the city

to non-locals, and gives incentive to local companies to open businesses there. Further, many

of the successful Malaysian creatives abroad have been appointed by the Malaysian

government to sit on the advisory board (similar to MDeC) (MDeC 2010). The presence of

MDeC in Cyberjaya brings a positive image to the city on account of the substantial

improvements in the progress of Malaysia’s ICT and animation sector over the last decade.

The market players in animation and other content sectors in Malaysia agree that MDeC has

contributing hugely to a positive image of cartooning and animation in the country and region

(3D World Magazine 2009). Their multipurpose role and collaboration with high profile

international companies like Al-Jazeera, will help to boost the perception of the city as a hub

for creative sectors companies.

Cyberjaya is located near major transportation systems, including the highway express from

the city of Kuala Lumpur (26 kilometres) and Kuala Lumpur International Airport (15

kilometres), and commuter and fast trains (Refer Appendix 7). Cyberjaya was built to function

as the regional and glocal ICT hub to rival the best in the world. The developer of the city,

Setia Harum, claimed the city’s competitiveness as a global ICT hub has marked Cyberjaya as

one of the top three global destinations for business support services and outsourcing.

Cyberjaya is a self-contained intelligent city with world-class IT infrastructure, and low density

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urban enterprise, as well as state of the art commercial, residential, enterprise and institutional

developments. This city is designed to be an ideal place to live, work and play, with

convenient amenities and facilities. Importantly, Cyberjaya is the MSC capital city for the

country, and home to knowledge workers, enterprising businesses, students and families. To

date, Cyberjaya is home to many multinational companies such as Shell, EDS, Ericsson,

BMW, HSBC, Motorola and DHL. There are several higher institutions and smart schools

operating in Cyberjaya, from the Limkokwing University College of Creative Technology

(LUCCT) and the Multimedia University (MMU), to the Cyberjaya University College of Medical

Sciences (CUCMS). The major programs of these institutions centre on ICT sectors. These

private institutions are among the leaders in providing higher education in creative industries

and ICT in Malaysia and the Asian region. Cyberjaya’s residential areas offer a wide array of

homes, catering the middle to high income bracket. The township also provides other

convenient amenities such as a hotel, boutique malls, recreation centres, a community

clubhouse and schools. To make the city a world intelligent city, broadband services using

fibre optic network enabling high speed Internet access and network solutions are provided.

Cyberjaya was designed to be an ideal city for creative companies and workers to work and

stay. Despite this, the city needs more improvement particularly to strengthen their basic

infrastructure and facilities in order to attract more people especially local residents to stay in

the city permanently. At present, those who work and study in Cyberjaya prefer to stay

elsewhere and commute to the city. In addition, the former Malaysian PM, Mahathir, says he

was not happy with the development of Cyberjaya due to its slow growth (Setia Haruman

2010). The slow progress of the city is partly due to the recession in Malaysia in 2008. With

the year 2020 approaching, the Malaysian government is speeding up the development of the

city by pumping in more funding with the help from private companies to achieve the desired

status of “world intelligent city”.

5.2.2 The development of Cyberport, Hong Kong

The idea for the Hong Kong Cyberport was conceived by “Hong Kong’s Bill Gates”, Richard Li.

The area is being developed by both Li and a Singapore-based corporation, Pacific Century

CyberWorks (PCCW) to foster the development of Hong Kong’s information services sector,

and to enhance Hong Kong’s position as Asia’s premier information and telecommunications

hub. The government will provide support to this development by investing US$2 billion

(HK$15.8 billion) to promote the Cyberport as a place to commercialise creative ideas and

incubate start-ups. The joint partnership between Hong Kong SAR Government and private

corporations in Hong Kong is part of the state’s attempt to increase its capacity in economic

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development and now is commonly adopted (Lee & Haque 2006). As well as the Hong Kong

creative digital community, Cyberport has an energetic cluster of creative ICT and digital

content tenants, and comprises a mixture of four intelligent office buildings, a five-star hotel, a

retail entertainment complex, and about 2,800 deluxe residences. The Cyberport was

established with the aim of being the leading information technology hub and digital city for the

Asia-Pacific region (Refer Appendix 8). Cyberport has won numerous awards locally and

internationally (Hong Kong, Cyberport 2010).

Since its launch, Hong Kong Cyberport has encountered political problems, particularly a

public discontent over their lack of accountability. Some claims allege the Cyberport project

was assigned to PCCW (chaired by Richard Li) without a competitive tender, due to Richard

Li’s close friendship to Hong Kong’s Chief Executive Tung Chee-Hwa (Grammaticus 2000;

Lee & Haque 2006). The government has been heavily criticised and accused of practising

cronyism (Lombardo 1999). To date, Cyberport has failed to create a significant impact upon

the sectors it was designed to support. The number of larger companies is not as high as

expected by the Hong Kong government. In 2008, less than one hundred IT companies and

two university programs in four office buildings, one five-star hotel, a retail arcade, and a

deluxe residential development were operating at Cyberport (Fong 2008).

Nicholas Yang, CEO of Cyberport in 2003, claimed that the slow progress Cyberport was due

to the SARS epidemic that hit Hong Kong in the middle of 2003, and that Cyberport

subsequently has refocused on digital community and commercialisation (Fong 2008). Before

that only one third of Cyberport was allocated as residential, since the main focus of the

project was information infrastructure for Hong Kong (Lombardo 1999). With the refocussing

of Cyberport, there are hopes to sustain the project, which has had financial losses.

Unfortunately, because of the limited facilities, the tenants at Cyberport have claimed it is not

a good place to live (Fong 2008). Further, the constant changing of top management at

Cyberport has distorted the original plan. The present CEO, Herman Lam, stated that the only

focus of Cyberport today is on ICT development (Hammond 2010). With this narrowed focus,

and the establishment of a competitor, Hong Kong’s Science Park, the attractiveness of

Cyberport has lessened. With the rapid development of other competitors in Hong Kong and

China, the future of Cyberport is uncertain. At present, Richard Li is far less involved in the

project, a factor contributing to investors diverting their attention from Cyberport to other

similar projects close by. The next section will discuss the similarities in development issues

faced by Cyberjaya and Cyberport.

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5.2.3 The similarities between Cyberjaya and Cyberport

The similarities between Cyberjaya and Cyberport lay in their development at the end of the

1990s after a significant growth of globalisation and the revolution in ICT. A mixed model was

used in both projects, adopting earlier successful ICT-related projects such as Silicon Valley

and Taiwan’s Hsinchu Science Park, with the incorporation of some additional local culture to

suit the local environment. Both places announced their intention to become Asia’s world city

(MSC 2010, Jessop & Sum 2000). Both projects received considerable support from their

governments, and promoted close cooperation between the government and private agencies.

Their major focus was to be the primary city for the development of ICT growth for their

country and in the region.

However, both cities have had difficulties attracting businesses. Infrastructure is still

insufficient, and particularly fails to attract more local companies. For example, as a new and

small company, LCP prefer to have their operation in a more established city like Shah Alam

rather than Cyberjaya. Cyberjaya is struggling to attract ICT companies to operate there

despite offering many incentives. Similarly, in 2008 Cyberport had less than one hundred

companies establish branches of their business there (Fong 2008). To make things worse the

first ten years of the twenty-first century saw Asia and other parts of the world hit by economic

recession, epidemics (bird and swine flu), and natural disasters. These factors saw the

development of both projects affected by a lack of foreign investment. Nonetheless, these two

cities are not isolated in facing this scenario (Fong 2008). This issue is common among the

new development areas globally. Ordinarily, new areas like Cyberjaya and Cyberport take

time to be developed, and for people to move in permanently and feel comfortable to live and

work there.

5.2.4 The differences between Cyberjaya and Cyberport

While Cyberjaya was created to move Malaysia forward as a developing nation, the Hong

Kong (HK) Cyberport idea was initiated by Richard Li. While the main force behind the

Cyberport project is an individual, Cyberjaya is a government initiative that develops

Malaysia’s ICT sector. The development of Cyberjaya is based on three phases. The third

phase will span from 2011 to 2020, the date the Malaysian government has set as a target for

Malaysia to reach developed country status. To make it more appealing, Cyberjaya is

developed close to Putrajaya and Kuala Lumpur International Airport, which is located more

than thirty kilometres from Kuala Lumpur. Meanwhile, Cyberport is located near other

government and private ICT projects, such as the HK Science Park, the HK Industrial

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Technology Centre Corporation, and the HK Industrial Estates Corporation. Further, a CEO is

appointed by the government to run the Cyberport project (Ostrov 2002). As such, the role of

Cyberport keeps on changing according to the CEO’s vision. For example, Jessop and Sum

(2000) report that some market analysts such as Webb claimed that Cyberport “is no ‘Silicon

Valley”, and has been developed as a real estate project rather than a high-tech project.

However, Nicholas Yang, the former CEO of Cyberport, points out that their focus is not on

R&D, but rather on creating a space where technology people and businesses can connect

because it is a high-tech science park (Fong 2008). The newly appointed CEO as of 2010,

Herman Lam, has announced that Cyberport is now dedicated to helping local industries to

upgrade their skills and resources in order to prepare them or sharpen their competitiveness in

the digital era. The development of Cyberjaya is focussed on the federal government’s

mission for Malaysia to reach developed country status.

Another striking difference is that although Cyberport follows the Silicon Valley model, they

also looked to Singapore, Malaysia, the US, Australia and Europe for insight. Further, their

policies are strongly influenced by Israel’s high technology approach (Ostrov 2002). In

contrast, Cyberjaya’s primary model is based on Silicon Valley, with significant local culture

influence. According to Fong (2008), the focus of Cyberport has narrowed since the new

development of Science Park in Hong Kong. However, the growth of Cyberjaya is still

expected to contribute significantly to the goal of reaching developed nation status by 2020.

5.2.5 Conclusion on Cyberjaya and Cyberport

Both Cyberjaya and Cyberport are facing almost identical development issues. The

governments of Hong Kong and Malaysia are actively playing their role in the development of

the cities, and at the same time marketing their respective cities to global investors via various

incentives. As a result, both cities managed to attract major names in technology sectors such

as IBM, Microsoft and Apple to operate in the cities. However, with the fierce competition from

other countries in the region and the world, Cyberjaya and Cyberport are still not having great

success in becoming a world city, even in the Asian region. Their competitors in this sector—

including India, Japan, Singapore, South Korea and Taiwan—are more advanced, are at the

forefront of the creative economy sector in the region, and act as sources of professional

advice and human resources the global market seeks. China and Indonesia have been the

latest threat for both Cyberjaya and Cyberport; both are aggressively developing the creative

economy in their countries on a larger scale. Regardless, both Cyberjaya and Cyberport have

strengths that other places lack. They provide a fast speed Internet connection (faster than

Indonesia), and English is widely spoken in Malaysia (more widely than in Japan, South Korea

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63

and Taiwan). Also, both have a stable political environment (compared to India and

Indonesia). With these strengths, both Cyberjaya and Cyberport can become important cities

for the creative economy in their region. However, they have to speed up their development,

focus on their mission and objectives, and stay abreast of industry developments.

Beyond Cyberjaya and Cyberport, there are other similar mega projects around Asia being

developed to become world-class ICT places. For instance, the Singaporean government has

taken pro-active steps to make the island a global technopolis and biopolis (Khondker 2003,

151). According to Khondker (2003, 151-152), the objectives of the political, economic and

academic leaders are to transform Singapore from being disadvantaged because of their lack

of natural resources, to becoming more competitive with their human resources, R&D, and

technology. Singapore has limited resources compared to neighbouring countries such as

Malaysia and Indonesia, but due to its government’s creativity has become a developed

country. Thus, natural resources alone are not enough for a place to become successful with

their economy. Creative imagination is also needed to maximise or create the resources. This

is when creative economy activities play a major role for a place to sustain and become

competitive. Since the UNCTAD (2008) report on the potential of creative economies, the

Malaysian government has been actively promoting and supporting activities relating to

creative sectors. With this in mind the rest of this chapter report findings for LCP in relation to

each of the research questions.

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5.3 RQ1: What Are the Main Operational Issues for Malaysian Creative Economy Enterprises?

Figure 5.3a: Les’Copaque Production 3D Animation Movie Poster

(Les’Copaque 2010)

In December 2009, interviews were conducted with LCP managerial staff, before resuming in

January 2010 with their other staff from all departments and rankings. All interviews were

undertaken in their meeting room at their office at No 1, Jalan Boling Padang G13/G, Seksyen

13, 40100 Shah Alam, Selangor. A total of nine interviews were conducted with LCP. A tape

recorder was used during the interviews with the staff. The names and positions of the

respondents are presented in Table 5.3.

Research Question One is answered in the form of seven themes arising from the interviews

with key informants in each case. Tables and exhibits are also used from this section onwards

whenever necessary.

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65

Respondent Profile

Out of the nine respondents only one female staff was interviewed (refer to Table 5.3). Seven

of the respondents were younger than 25-years-old, and two were aged younger than 30. Five

respondents had worked more than two years with the company, and the rest worked with the

company for between one to two years. Each respondent represented a different department

of the company, from Marketing and Sales, Modelling, Layout and Script Writing, to Animating,

Music, Rendering, and Compositing.

All respondents obtained training and education from local or international universities in a

Creative Industries discipline, and their highest education level was a Bachelor’s degree. The

majority of the respondents attended a local tertiary institution. Two respondents earned their

degrees from Malaysia Multimedia University (MMU), Cyberjaya, while the remaining staff

studied at Universiti Teknologi Mara (UiTM), Universiti Kuala Lumpur (UniKL), and Universiti

Teknikal Malaysia (UTEM). Three of the staff (Kevin, Azfarin and Safizan) completed their

diploma at private local higher institutions (two at Lim Kok Wing University College, and one at

One Academy). Later, the respondents went abroad to earn their degrees, two (Asfarin and

Safizan) went to RMIT, Melbourne, while Kevin went to University of Hampshire, UK.

Table 5.3: Respondents Profile for Les’Copaque Production Sdn. Bhd.

Respondent Post and Department Age Sex Years of

working

Education background

Ehsan Head of Marketing & Sales 24 M 3 Bachelor Degree (MMU)

Syed Head of Modelling 22 M 2&1/2 Bachelor Degree (UniKL)

Fuad Head of Layout 24 M 3 Bachelor Degree (MMU)

Ida Script Writer 24 F 1&1/2 Bachelor Degree (UiTM)

Faiz Head of Modelling 22 M 2&1/2 Bachelor Degree (UniKL)

Kevin Animator 25 M 8-months Bachelor Degree (Uni of

Hampshire, UK)

Azfaren Music Composer 26 M 2 Bachelor Degree (RMIT)

Raffe Lead and Rendering Artist 24 M 1&1/2 Bachelor Degree (UTEM)

Safarizan Head of Compositing 29 M 2&1/2 Bachelor Degree (RMIT)

This data suggests that to obtain a higher level of education, overseas higher institutions are

still major choices among Malaysian creative industries workers particularly in English

speaking countries like Australia, New Zealand, the United Kingdom (UK) and United States

(US). These countries remain the major countries for Malaysian students to get their education

due to the practical expertise of teachers, and the high quality of education in general.

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66

According to Verbik and Lansanowski (2007) from 1996-2006, Malaysia remained one of the

ten countries most likely to send students to Australia, New Zealand, the UK and US. The

same report stated that Malaysia is becoming one of the emerging contenders—apart from

China and Singapore—in attracting international students.

To prepare itself as a global player in the education market, the Malaysian government has

been sending Malaysian academics abroad for more than two decades. Through its Ministry of

Higher Education (MOHE), the government has been sending tutors and lecturers from public

universities overseas to obtain their postgraduate education, particularly in new areas such as

animation and tourism. On completion of their study, these tutors and lecturers return to

Malaysia as industry experts. Also, other government and semi government agencies send

their staff abroad to obtain higher education to prepare Malaysia to become a key player in the

Asian region. In five to ten years, there will be more expertise in animation and tourism in

Malaysia. However, at the moment there are not enough professionals in these two sectors.

Working Environment

When asked about the working environment at LCP, all respondents gave similar answers.

Generally, they are satisfied with the working environment at LCP due to the open concept of

the company. All respondents stress how they work as a team, like a big family, and support

each other. In television, newspaper and magazine interviews, the CEO and other directors of

the company also stress the openness adopted in their company. The company’s

management have created a relaxing environment for their staff by organising events such as

monthly themed dress-ups (see Figure 5.3.1), and company field trips around Malaysia.

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67

Figure 5.3b: Dress theme day “Headwear”

(Les’Copaque 2010).

In addition, the company allows their staff to work in other departments and be involved in

their film and television series. At least one senior respondent, (Fuad), has worked at two

departments in the company. Before working with the layout department, he worked with the

merchandising department. The company blog shows their staff members were also involved

in production activities like working as voice actors.

To generate creative ideas with their staff, LCP meet weekly and monthly. Also, they use other

methods—including discussion, brain storming, and in-house training—to encourage

contribution of ideas to strengthen their products. All staff members are encouraged through

many communication mediums to give ideas and comments at any time and on any aspects of

the company. Occasionally for staff development, LCP sends their staff within Malaysia and

abroad for training, and to attend conferences, expos, festivals, fairs, seminars, and

workshops. With the help of government organisations—particularly Multimedia Development

Corporation (MDeC)—the staff can upgrade their knowledge of the latest software in the

market, and sometimes are invited to speak at local and international seminars relating to

creative industries and multimedia. LCP’s official blog shows that the company is working

closely with MDeC to give their staff local and international training and exposure by attending

big events such as the Cannes Film Festival, and the IPCCA creative contest. MDeC also

provided a rendering machine to the company when they were in the process of producing

their first 3D film, and offered advice, particularly on marketing their products. MDeC has

played a significant role in providing a platform for LCP staff development, particularly at

international level.

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68

Evolving an animation sector that offers entertainment elements to viewers requires a more

relaxed and open working environment. As Florida (2005, 9-14) states in his book, people

working in the entertainment industry do not like rules and regulations that might prevent them

from coming up with creative ideas in their work. In order to generate high quality imaginative

ideas, people involved in the entertainment industry should be given more freedom with their

working style and environment. The working environment at LCP is designed to encourage

staff to offer their best performance in order to create products that meet the desires of the

market. Companies involved in ICT and entertainment sectors globally are known for having a

different style of management. Normally they do not have strict working hours and dress

codes. Since LCP is a private company in the entertainment industry’s animation sector, their

management style is different from the traditional modes of operation. With more than ninety

per cent of the staff under thirty-years-old, LCP has created a management style that is

suitable to their nature of work. Most staff members have an ICT background and understand

what they need and want from their workplace in order to deliver the best ideas for their

animation products. Their operation is run in accordance with the global practises of most

other animation studios. This type of management is also being implemented by other key

players of ICT companies in the world, such as Google. This is what LCP is implementing in

their daily operation and management.

Location

When I asked the management and staff about why their office was located in Shah Alam and

not in the capital city of MSC (Cyberjaya), they said that to them Cyberjaya is not the only

place to be creative in their work; they can become creative where ever they are. Syed who

represented the company’s management, responded that:

...the opportunity here is good... Shah Alam is actually a growing capital for business, so it’s better than Cyber, because... The lifestyle... The life in Cyber is a bit, a bit secluded and very... limited... Shah Alam is a bit in the middle of everywhere, so it’s easier...

Another reason for the company to have their operation in Shah Alam and not in Cyberjaya is

its proximity with Kuala Lumpur. While Cyberjaya is in the middle of nowhere, Shah Alam has

lively communities and societies, which is good for LCP’s products and services particularly

for its merchandising products and services. There is nothing visible and interesting in

Cyberjaya to attract people to live there. There are no trees, shopping malls, hybrid

communities, or reasons to go there, except for work.

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Figure 5.3c: Les’Copaque Production Operation Building in Shah Alam

(Les’Copaque 2010).

Many staff members have been to Cyberjaya or studied in the city before. On the evidence of

their experience, they prefer their current location rather than Cyberjaya. They enjoyed the

organic environment of Shah Alam rather than the cluster-style of Cyberjaya because their

products and services are family-focused. Shah Alam, which is a mature, developed city,

offers greater advantages, particularly in selling their merchandise. Although Cyberjaya

provides a faster Internet connection, LCP are not outsourcing their products and services,

therefore a high-speed Internet connection is not their main priority. At the moment, LCP has

no plan to move their operation to Cyberjaya because they can do their work at their present

location or anywhere they want to. However, staff members noted that despite some changes

to the city for the past five years there has not been as much change as they expected.

Importantly, although Cyberjaya has all the right facilities for ICT or animation companies to

allow effective operation, it does not have other facilities to attract people to stay there. This

needs more attention from the government.

Sector or Industry

During the interviews, management and staff talked often about creative industries and

animation while describing their field. Also, the majority discussed Malaysian culture,

particularly in differentiating their products from others. Document analysis reveals that

creativity and culture have also often been mentioned by top management, such as their CEO.

All agreed that they are primarily involved in the creative industries, with a strong element of

Malaysian culture being incorporated in their products and services. Their animation series

and 3D animated film applied Malaysian culture basically on three major ethnic groups in the

country (Malay, Chinese and Indian).

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When asked to what extent Malaysian culture is being adapted in their products, Ida stated

that:

For me, I can see that if you watched Cartoon Networks there are so many kinds of cartoons you know: cartoons like Ben 10; and then they have cartoon like Samurai Jack, which is from Japan. People want to see different things. I really believe that. When you reached one level, people will get bored with all those same ideas and they want something new, something fresh. For me, I think Malaysia is still new, is still young and very fresh in ideas. But I really think that our content can go global because people want to see what Malaysia wants to bring to global; they really want to see our culture and we have Malays, we have Chinese, we have Indians. We live happily, we live together.

Figure 5.3d: Les’Copaque main characters consisted of three major ethnic in Malaysia

(Les’Copaque 2010).

After the launch of the MSC in the 1990s, the government spent billions of dollars training

Malaysians ICT by sending them abroad, mostly to the US. One pioneer of this project, Hasnul

Hadi, who works for MDeC, reported that because the country was starting from ground zero,

building a multimedia hub took a substantial effort both in design and implementation (Plantec

2009). The government had to train a sophisticated workforce from scratch, and the country

had to start an entire university (Malaysia Multimedia University) in 1996, to ensure they could

train the people properly to handle incoming investment opportunities. To date, the

government still trains their work force with the help from local and international experts.

Further, Hadi notes that the government acknowledges China and India are more advanced

than Malaysia in many aspects, but Malaysia also wants to play a part in this competitive

sector (Plantec 2009).

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Although multiethnic culture is probably LCP’s main advantage in bringing their animation

products to the world, Malaysia should not depend on this advantage too much. At present,

many countries in the world are also claiming that they are multiethnic and religious. Soon this

aspect will not be exclusive to just Malaysia. In addition, bringing this local culture to a global

market is challenging, particularly when competing with more advanced animation products in

Europe, Japan, and the US. Perhaps the global market will not understand Malaysian culture

in the same way as the local or regional market. This could be a great challenge for LCP in

marketing market their animation products outside the region. With the strong global presence

of Japanese animation and anime for more than a decade in the market, LCP animation

products could be under threat. However, perhaps after all these years the market wants new

and fresh ideas, and LCP animation products can meet those requirements. With the positive

reaction they received from countries in India, Southeast Asia, and Turkey, there is arguably a

strong future waiting for them in this sector, although it is not without challenge.

Expectation and Future Plan for the Company

LCP has many future plans, but some cannot be disclosed during the interview because they

are still in the discussion stage. Among others, their future plans are to open a Upin dan Ipin

theme park, or franchise this concept to others. Unfortunately, LCP respondents were not

authorised to elaborate on the plan. From the document analysis gathered by this study, the

LCP CEO, Hj Burhanuddin Md Razi (Raja Azaham 2009) revealed that the company is not

going to run the operation of the theme park; rather, they will market their licence and idea to

establish the park. The CEO later commented (after translation):

Upin and Ipin theme park is what we really hope to build and we are in the process of looking for those who are interested to make this into reality. I think it is about time for Malaysia to have theme park with Malaysian identity, and not following Western ideas because we have to be proud of our own product

(Raja Azaham 2009)

In the same interview, the CEO (Raja Azaham 2009) announced future plans such as Hindi

language voiceovers for certain films, their second 3D animation film, Upin dan Ipin: Angkasa

(Upin and Ipin: Outer Space), which will target the international market by focussing on global

issues, and a film called Zaitun, a biopic about Malay singer, Zaitun Sameon.

Respondents also were asked about their expectations and hopes for LCP, and all had

different answers, but with the same basic themes. Some hoped to make their company a

Malaysian World Disney (Ehsan); to become Malaysia’s key player in multimedia productions

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and special effects (Syed); to show the Malaysian multiethnic culture to the world (Ida); to

expand into the global market (Fuad); to venture into different products like action films,

magazines, and comics in the same way as Pixar and Disney (Faiz); to become a Malaysian

icon that binds all Malaysians together despite their differences (Azfaren); to become more

competitive with other international companies, and to become well-known like Pixar (Rafee);

and to create more job opportunities for Malaysian multimedia graduates (Saff).

Musical composer, Azfaren gave a slightly different answer:

We have Malays, Chinese and Indians, so it is so complex and there’s nothing that binds everyone together. There’s nothing like one Malaysian icon, so we want to create something for this, you know. So it’s a big mission, lah. So it’s not just cartoon. I’m so proud to be part of this company because we are creating something that contributes towards this. Everybody contributes. We don’t have to be doctor or engineer. Creative people also can contribute something, so at least it shows that we are, we Malaysians are balanced; we have the creative side and other side, so we have that balance. We want to show that creative people also can contribute something to the country.

These expectations coincide with those of most people in the animation sector. No

respondents gave answers that differed that greatly from one another. This showed that the

staff expected the company to focus on expanding their products and services around the

animation sector, including expansion into other animation-related sectors. While their scope

of interest is mostly limited to animation, this is good since they are focussed on their sector

and playing to their strengths. Their expectations are realistic and achievable for their

company.

There has been positive progress in much of LCP’s plan at the time of writing this thesis.

Some of their future plans are connected closely to animation sector, and some are not

directly connected to the sector. Special caution must be given to their plan to diversify their

products and services because as a young company they should concentrate on building up a

solid foundation rather than expanding in the areas that they have no expertise in. Since the

animation sector is a highly competitive sector—particularly when considering mature and

advanced countries in the region such as China, Japan and South Korea—LCP’s plan for their

future should be different from what these countries are offering in the market. Working

together with companies from these countries means building strong connections with the

sector in those countries. This is discussed in detail later in this chapter.

Company’s Mission

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Generally, all respondents were found to be working towards the company’s mission and

objectives. Among the objectives mentioned are, showing the Malaysian public about the

potential of creative industries; creating a platform for young creative talents to practise and

show their creativity; acting as a stepping stone for their staff to start their own business in

creative industries; and introducing Malaysian multiethnic culture to the world.

All the staff stressed the company’s mission to showcase Malaysian culture through globally

released feature films. Azfaren associates himself closely with the company’s logo which is

the frog under the coconut shell:

I do... because, especially with our logo... frog...”katak bawah tempurung” (Malay phrase to describe frog under the coconut shell), I always thought about that you know... Especially for Malays, they have to be more open minded. I feel like, I’m comfortable with this, so that’s why I’m here and work here rather than working abroad, because I don’t see myself just as a music composer, but as Malaysian... And to keep our culture alive, like recording our culture, so we have this, this recording how these kids growing up in kampong... This visual makes me feel arrr... being part of it...

In the many newspaper interviews done with LCP’s top management staff, this point has

always been stressed—Malaysia’s culture is the important element they wanted to express in

their creative and animation products.

On the company’s portfolio from their website, and in an interview with InTECH, a local

technology magazine, the Creative and Marketing Director of LCP, Mohd Nizam Abdul Razak,

(Patrick 2008) was reported as saying he believes international markets will be interested in

Malaysian culture. Further, LCP wishes to produce more IPs, and assist more companies in

Malaysia to get involved in animation and multimedia products.

Creative Industries Development in Malaysia

When asked their opinion on the development and progress of the creative industries in

Malaysia, all respondents gave positive answers. At the same time, they also realised how

competitive this sector is, and that there is more work to be done in order for their products to

compete on the international market. Ehsan who represented the management of the

company observed:

Creative Industries is actually exhilarating because the work and the development you see right now right, it’s up significantly for the past three years. We have a lot of animation works to be looking forward to actually. All of it is not being mentioned yet because it is not finalised yet, but it has a greater future in animation as well in other aspects in Malaysia.

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When asked what makes their products more successful than other animated films and

television series produced in Malaysia, the staff argued that their company’s products are

what the public wanted, that they had quality products due to three years of market research,

the right timing and luck, and unique characters.

As Saff responded:

I think perhaps because Upin and Ipin are cute (laugh) Maybe, lah, because if you ask the school children, right, we had several research on our film, it is not like... It is not one year project. We started in 2005, after three years, after we had tested the market and all, after feedback, now only we managed to reach this level, lah. Because the important thing is the pre-production, lah. Our management also played their role.

The LCP staff seemed to have high confidence in the growth of animation sector in Malaysia

and the rest of the region, especially with their products, which they said are different from

what the market currently offers. However, because their products are different and include a

strong element of Malaysian culture, it might be harder for them to enter a bigger market. The

countries around the region are bombarded with western films, TV series, books, comics,

magazines, and merchandising that are aggressively being marketed. Malaysian cultural

elements that LCP embed in their products could be problematic for audiences from other

countries to understand (Muthalib 2007). Nevertheless, LCP animation series and 3D films

have received significant positive responses from South East Asian audiences and other

Asian countries. This is a good sign that their products could be marketed further, at the very

least in the Asian region.

Today, LCP is still depending heavily on the government and other Malaysian private

companies for funding and support, without which, their growth and expansion could be

affected. They have identified this issue and are starting to find their own financial resources

with international companies from China and South Korea (3D World Magazine 2010, 70). By

working together with the companies from these countries, LCP can study the market and

learn about animation sector development in these countries. This can ensure that LCP

remains competitive in the region, and becomes more productive with their products and

services. However, competing with established animation products from developed countries

is not a particularly easy task. Even with continuous support from the Malaysian government

and private companies, LCP faces a significant struggle to compete with other animation

companies in the region and world.

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Another market that the government is approaching and promoting is the global Muslim

market. Recently, the Malaysian government has moved in promoting and developing the

country to become a world “halal hub”—a smart move considering its steady growth. Halal is

one of the most important concepts in Islam and it means “permissible” with a market

estimated worth US$150 billion (Fischer 2008). The concept covers food as well as non-food

products and aspects such as slaughtering, storage, display, preparation, hygiene and

sanitation (Shafie & Othman 2006). The Malaysian government has initiated many projects to

become the market leader for halal products and services, including Islamic finance and

insurance. MDeC has worked together with Al-Jazeera to produce the animated television

series, Saladdin (the story of a famous Muslim war hero and his clash with the Crusaders in

Jerusalem). While the Malaysian private sector is also playing an active role in projects such

as The Islamic Fashion Festival (Pak 2009), the adaptation of Islamic finance practices by

Malaysian commercial banks (Rosly & Abu Bakar 2003), and halal cosmetics for Muslim (Abd

Aziz, Amin & Isa 2010). Malaysian content products are suitable for the Muslim market. With

low levels of violence and almost no obscenity—particularly in their animation, film and

television products—Malaysia can enter this niche market with little difficulty. In fact, one of

the main creations from LCP has Muslim characters, and their scripts are influenced

substantially by Malaysian Muslim lifestyles. However, not all market players in Malaysia are

keen to be associated with its culture. Some refuse to be recognised as Malaysian and avoid

associations with its cultural image.

5.4 RQ2: What is the development path for Malaysian creative economy enterprises?

Animation History in Malaysia 

Animation started in Malaysia mainly for documentaries and public service filmlets by the

Malayan Film Unit. However, the significant impact of the first cartoon Malay magazine, Gila-

gila made the local market realise the potential of a cartoon sector in the country. The early

development of Malaysian cartoon and animation products were inspired mostly by western

influence. For example, Gila-gila copied the concepts of Mad and Crazy magazines, before

they gained their own identities that reflected local culture. The earliest local animation

products (Kluang Man, Silat Lagenda and Yokies) have some influences from the west and

Japan (Sang Wira) (Mahamood 2001, 142-143). Nonetheless, Malaysian culture was still the

primary element adopted by these early local products. Since then, animated products for

local television and film have grown to embrace Malaysian culture. The future direction of

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76

Malaysian animated products is to have significant global features with local culture influence

(3D World Magazine 2010).

With government support and encouragement, more private companies started to enter the

animation market in the mid-1990s. The Malaysian government has always been at the

forefront in developing and promoting local animated cartoons by providing moral, material

and financial support. Malaysian culture has been one of the most important aspects that the

government stressed upon in local animation products. This is based on their realisation that

foreign cartoons—especially from the west—are not suitable for local viewers, for they show

negative values that do not conform to the local culture (Mahamood 2001, 135). Hence, the

animated television series such as, Anak-anak Sidek, Kacang, Lat the Kampong Boy, Tuah,

Upin & Ipin, and Usop Santorian feature Malaysian culture. However, these series did not

have such a substantial impact as LCP’s Upin and Ipin. Also, these television series were only

popular among a small group of Malaysian viewers, except for Lat the Kampong Boy, which

managed to break through outside the Malaysian market. This success came because the

television series was co-produced with international companies from the Philippines, the US

and the UK. The series is adapted from the cartoon book by Lat, who is famous locally and

internationally. Unfortunately, not all Malaysians were able to watch Lat the Kampong Boy

because it was aired on a pre-paid television channel. Further, none of these television series

were turned into films (unlike LCP’s treatment of Upin dan Ipin), and after one to two years

they stopped their production due to internal problems and lack of response from the audience

(Filemkita.com 2010).

Data gathered from the Filemkita.com website (2010), reveals that in 1998 the first animated

film was produced in Malaysia. Silat Lagenda—adapted from the Malay legend of Hang Tuah

and his four friends who lived in fifteenth-century Malacca—had a total production cost of RM

6 million. Unfortunately, the audience response was not favourable, and the box office takings

amounted to less than RM 150,000.00. In 2001, a second animated film, Cheritera was

produced by Matahari Animation and Production Sdn Bhd, and their Indonesian partner Red

Rocket Animation. Once again this film did not manage to attract significant Malaysian

audiences. The box office takings amounted to less than RM 3,000.00. Not long after that

another animation film was produced and managed to collect almost RM 400,000.00. Putih

adapted the classic Malay folk-tale, Bawang Putih Bawang Merah, a Malay version of

Cinderella. The film did not use computer animation, instead using traditional drawing

animation methods. Table 5.4 shows more details about Malaysian animated films.

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Table 5.4: RQ3 - Animated films produced in Malaysia

Title and Year Producer Total Cost (RM)

Story line

Silat Lagenda (1998)

Peninsula Pictures Sdn Bhd

RM 6 million

Malay self-defence called Silat performed by five youngsters

Cheritera (2001) Matahari Animation and Production Sdn Bhd, and Red Rocket Animation (Indonesian)

Not stated Penan Kid (native ethnic in Sarawak)

Putih (2001) Eurofine Production Sdn Bhd

RM 1.1 Malay story version of Cinderella

Geng: Pengembaraan Bermula 3D (2009)

Les’Copaque Production Sdn. Bhd.

RM 4 million

Action adventure about how twin and their friends solving problem

(Filemkita.com 2010)

 

3D Animation Movie in Malaysia by LCP 

LCP is the first animation company in Malaysia to become successful with their animation

products and merchandise locally and in the rest of the region. Their television series, Upin

dan Ipin started to make a substantial impact in Malaysian animation scene in 2008, followed

by their successful 3D animated film, Gang: The Adventure Begins in 2009. The total cost to

produce the film was RM 4 million, making it one of the most expensive local films produced in

Malaysia, but the cheapest 3D animation film produced in the world. The film and series were

not only well-received in Malaysia, but also in other parts of the region, such as Brunei,

Indonesia and Singapore. In Malaysia alone, the film collected RM 6.3 million—a significant

collection for the Malaysian market and for local film. Today, other countries such as

Singapore, Brunei, Indonesia, Turkey and India have started to buy LCP products. Their

television series and 3D animation film won multiple awards locally and internationally.

Presently, LCP is collaborating with Asian companies on future animation products. In 2009,

they decided to market their 3D animated film in India, adapting it for the local market by

working with popular Indian actors like Kamal Hassan to provide voices for the characters

(LCP 2010).

LCP has managed to become an eye opener in Malaysia with their animation television series

and 3D animated films. Their new ideas to produce animation products with local images and

culture that still have a global appeal managed to raise the Malaysian animation sector to a

different level. At present, the Malaysian public is aware of the potential of a Malaysian

animated industry that features Malaysian culture. Additionally, the process of developing the

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animation products involved three years of R&D, brainstorming, meetings, and discussions

that resulted in LCP’s products entering the market with more preparation, the right timing,

and meeting market demands. Further, their products were released at a time when animation

sector was experiencing significant growth due to the advancement of innovation in the

technology sector happening all over the world. Today, the facilities to develop animation

products are better and cheaper compared to a decade ago. All of these factors combine with

LCP’s new, unique ideas to make their products well received in the local and international

market. This proves to other Malaysian companies that Malaysian culture has significant

potential in animation market.

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5.5 RQ3: How do Malaysian creative economy enterprises utilise traditional Malaysian cultural assets?

The findings in this section are answered holistically, based on the comparative analysis from

the literature of similar cases studies, mainly in developing nations, as well as the key

informant interviews and desk research.

I argue that there is a significant and close relationship between the animation sector and

Malaysia culture. During the interviews, the LCP staff often talked about creative industries,

creativity and Malaysian culture. Their top management also stress this particular point when

they had interviews with the local media (Raja Azaham 2009; Patrick 2008). They categorised

their products as belonging to creative industries, but they also agreed that culture is an

important aspect of their products and making their products unique. This is in line with what

Malaysian government wants from the animation sector in Malaysia: to have the country’s

national identity in their products (Muthalib 2007). An UNCTAD Report (2008) stated that

developing countries have rich cultural resources and these should be used to generate their

economy. As a result, the animation sector in Malaysia has a strong Malaysian traditional

culture when it comes to shaping the themes, subjects, plots, forms and content (Mahamood

2001, 149; Muthalib 2007). In addition, many authors in the literature have highlighted the

close link between culture and creative industries.

There is clear evidence that the creative industries and cultural sector need each other to be

become more competitive and to sustain their products in the market (UNCTAD 2004; 2008).

In the case of Malaysia, their multiethnic characteristic is the unique image of the country

(Musa 2000; Tourism Malaysia 2009), therefore culture has been used in many sectors,

particularly when the country is marketing their products and services to the world. The close

relationship between creative industries and cultural experience that exists in Malaysia is also

taking place in other countries in Asia such as China (Keane 2007, 77), Indonesia (Indonesia

Department of Trade 2008), Singapore (Yue 2006), and South Korea (Kim, Agrusa, Lee and

Chon 2007). In these countries, the creative industries are being developed together and side

by side with their cultural sector. Sometimes this happens indirectly rather than directly. For

example, in Taiwan the term, creative cultural industries is part of the government’s

commitment to protect their local cultural identity (Keane 2004). Thus, in Malaysia and the

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Asian and European regions (Bayliss 2006; Nielsen 2004), it is clearly shown that their

creative industries, culture and tourism are significantly related. 1

Although their products are primarily based on technological creativity, LCP realised the

importance of adding Malaysian culture to their product and services in order to make them

unique in the market. In their animation series, Upin and Ipin and 3D film, Gang: the

Adventure Begins, the three major Malaysian ethnic lifestyles were portrayed. This feature has

made them different, unique, and well received in comparison to the other animation series

and films on the market. Malaysia has the advantage of being a multiethnic country, and this

culture is being identified as a distinctive feature to be introduced to the world. Other earlier

animation films and television series in Malaysia have also implemented Malaysian culture in

their products, but majority of them failed to gain significant attention from local and

international markets. Most local animated films failed in the market, while the television series

only managed to capture children’s or small market attention. Learning from the failure of

those earlier products, LCP managed to devise a better version of the animation and 3D

products according to what the government and public wanted. LCP products showcased the

multiethnic culture of the country in a manner that is suitable not only for children but also

adults.

1 For the past decade, many research studies have acknowledged the growth of niche tourism activities called film tourism (Hudson and Ritchie 2006). Many places in Australia, New Zealand, the UK and US (refer to appendix 9) have reported significant tourist arrivals due to film tourism. However, the majority of the studies on this topic focus on developed countries in the west, although Asian and African countries (such as China, India, Indonesia, Japan, Morocco, South Korea, and South Africa) have also gained substantially from film tourism. For example, the number of Japanese tourists to South Korea increased significantly due to the success of their films and television series in Japan. Further, a South Korean television soap drama received positive responses in Asia, and the number of tourists from Asian countries to Korea increased tremendously, but data is not easily available on this topic. It is beyond the scope of this study to discuss this topic further. For further reading relating to film tourism refer to Beeton (2005); Busby, Brunt, and Lund (2003); Cousins and Anderek 1993; Singh and Best (2004); Urry (1990).

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5.6 RQ4: How can Malaysia position itself in the creative economy in the region?

For the past two years Malaysia has moved aggressively to position itself in ICT and creativity

related sectors not only in the region but also in the world. The development of the creative

economy, which is the umbrella for creative industries, has become a top priority for the

Malaysian government, and is always being discussed by the country’s top political leaders.

To speed up the development of these sectors, the government and private companies are

working together closely. The government is offering a range of incentives and support in

terms of budget allocation, friendly policies, and world-class facilities for local and international

companies to ensure the smooth growth of ICT and creative sectors in the country.

Importantly, by the year 2020, the government wants Malaysia to reach developed country

status.

Budget Allocation 

In the 2010 budget, the Malaysian government allocated RM 400 million to the development of

creative industries in the country (MSC 2010). With help from the Malaysian private sector,

which is working closely with the government, there is potential for the creative industries to

become a major income source for the country. Unfortunately, government allocation is not

easily accessible due to the tight rules and regulation imposed on the application. MDeC

noted there have been problems in getting the allocation approved by government for

creativity sector, which is managed by MOSTI, because not many production companies have

been helped with this fund (Leong 2009). To gain MOSTI funding for research and

development grants is also difficult, particularly for the creative industries. Therefore, funding

allocation alone is not enough if its accessibility is too strict and not transparent for the market

players and researchers. This is an important issue that needs immediate attention in order for

Malaysia to have a better position in the creative industries in the region and in the world.

Policy‐makers in Malaysia 

Positioning Malaysia in the creative industries in the region and in the world needs the right

policies. Clear policies from the government can provide a good guideline for Malaysian

creative economy players. This study found that the policy-makers in Malaysia demonstrated

they are actively promoting creativity, innovation and technology for the country’s

development. Thus, they are working closely with each other and with other organisations

internationally and domestically to develop the creative sectors in Malaysia. Among the major

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policy-makers involved directly with creative industries development in Malaysia are MICC,

MoTour, MOSTI, MOHE and MITI. A substantial impact can be seen in the animation sector,

particularly after the establishment of MDeC. The number of local animation television series

shown in Malaysia and outside the country has increased significantly. Friendly policies

relating to creative activities in Malaysia are encouraging more local and foreign companies to

invest in the country. However, there is no clear national creative economy policy being

introduced in Malaysia, although the term creativity is used extensively by many policy

makers. 2010 was announced as Year of Creativity and Innovation, but the impact was

insignificant. With no clear definition of creativity and innovation in Malaysia, this designation

remained nothing more than a slogan to the public.

More than five ministries play a major role in the growth of creative industries in Malaysia, with

three ministries—MOSTI, MoTOUR and MITI—assisting LCP with their 3D animated film and

television series. MITI and MDeC play a significant role in the marketing of LCP’s products

outside Malaysia. Sometimes the roles of these ministries overlap, creating conflict during the

implementation and enforcement stage. As well, debates take a long time to resolve, and this

is not productive for the development a young and growing sector like creative industries.

Preparing for the Global Market 

Importantly, can LCP products compete with the animation products from developed countries

that have advanced technology and funding in the global market? With the significant gap that

exists between the developed and developing countries in this sector, the chances of

developing countries like Malaysia being competitive are slim. Animation products from

countries such as Australia, Japan, the United States (US) and United Kingdom (UK) are

recognised as market leaders in this sector (Rosnan et al. 2010). With rapid global changes in

technology, the animation sector is considerably competitive. A small company like LCP may

not be able to compete with large and established studios like Pixar and Disney. While LCP

has expanded their market into most South East Asian countries and other parts of Asia, their

products still cannot break into other regions such as the American and European markets.

Animated products from Japan (such as Bleech, Doremon, and Thundercats), have been well-

received all over the world due to their global characters, features and scripts. However, LCP

can use their strength of natural resources and cheaper labour to come up with new ideas and

services that target different markets. The animation products from LCP perhaps are more

suitable for Middle East and Muslim markets than animation products from Japan. Hence,

LCP should take this chance to network with companies from these markets. To date, with

new networking and close ties with other animation companies from China, India and South

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Korea, LCP can improve their products by sharing their technologies with each other, and

enter these new markets. From this networking, LCP products can explore fresh ideas. Also,

from their joint effort they may create a better chance to enter the global animation market.

Local Malaysian animation companies such as Handy Pro are reportedly entering the Saudi

Arabia market (Abu Bakar 2009), and MDeC has focused on the whole of the Muslim market

through their joint effort with Al-Jazeera television channel.

To prepare the company to become competitive in the global animation sector, LCP

introduced a slightly different formula for their second 3D film. For a start, their second 3D

animated film, which is scheduled to be launched in 2011 and titled Gang: Outer Space has

more global features. Also, the company is ready to venture into other types of films and not

limit themselves to animation (Raja Azaham 2009). Also, LCP has started to collaborate with

international partners from China, India and South Korea to exchange ideas about their

animated products, and plan to co-produce animated television series and films in the future

(LCP official website 2010). All of these steps are part of a plan to make an impact on the

animation global market.

However, with the fast changes in technology happening every day, the immensity of this task

should not be underestimated. To successfully position the country in the region, careful R&D

and innovative planning is needed. This is a competitive market, and LCP faces fierce

competition locally and globally. Also, governments around the world and Asian region such

as those of China, Indonesia, Singapore and Thailand are investing billions of dollars to

develop their creative industries. For example, Singapore has attracted not only many foreign

investors, but also creative talents to work there by using high salaries as an incentive. By

contrast, Malaysia has a different strategy and no interest in playing the “money game” to

attract local and foreign markets. Their main intention is to develop a strong base to foster

creative talent in Malaysia, as stated by MDeC Manager for Creative Industry Strategy and

Policy (3D World Magazine, 73). Competing with animation products from developed countries

is a difficult task for a small company like LCP, as animation companies from developed

countries have more advanced technology and stronger financial backgrounds than their

Malaysian counterparts. Thus, LCP and other Malaysian creative industries need to use their

unique culture and access to cheaper labour to their advantage. With rapid expansion of

Muslim market, the government is actively promoting Malaysia as a halal hub not only in food,

but also content industry.

The halal market for Muslim is identified as significant, and many non-Muslim countries such

as Australia, China, Denmark, New Zealand and the UK are also starting to capture this

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market (Fisher 2008), mostly on offering more halal food outlets, cosmetics, pharmaceuticals

and hygiene products. Although the halal term is not directly suitable to be used for animation

or content industry products, the current Malaysian products are suitable for Muslim viewers.

This is because the Malaysian culture that these products are portraying has significant

influences from Malay (Muslim) and traditional Asia. Recently, a 3D animated television series

called Boboiboy by Animonsta Studio featured a main character wearing a hijab, and one of

LCP’s main characters in their series and 3D film is the grandmother of Upin and Ipin, who

wears a hijab. According to Shafie and Othman (2006), the potential of the halal sector is

substantial because by the year 2025 it is expected that, thirty per cent of the world population

will be Muslim. This is another potential market that Malaysian animation products can

consider to penetrate in the future.

According to Jarman and Chopra (2007), developing nations like Malaysia tend to face two

major problems in developing their ICT and innovation relating sectors. Firstly, developing

nations are currently more successful in attracting the lower order activities of multinationals

that are being outsourced and off-shored to reduce costs; while a physical infrastructure can

be built over a period of few years, human capital takes much longer to develop, perhaps up

to twenty years for one child; this is due to the multifaceted nature of the knowledge economy,

which presents in a complex scope of activities. Secondly, the Malaysian government has

been criticised for not being open enough to new ideas, particularly when it comes to sensitive

issues such as culture, politics, and religion. Hence, those who have innovative ideas choose

to work outside Malaysia where they feel they are freer to implement their ideas. As a result,

the Malaysian human talent pool has migrated to countries like Australia, Hong Kong,

Singapore (Low 2001; Sidhu 2009), the UK and US. These countries not only encourage

creatives to express themselves freely, but they also receive a higher salary than if they work

in Malaysia. Renowned names in creative sectors, including Chef Wan (chef), Kamahl

(composer/singer), Jimmy Choo (fashion), Maha Sinnathamby (engineer/developer), Michelle

Yeoh (actress), Shahril Ibrahim (software developer), and Zang Toi (fashion), are Malaysians

who have built successful careers abroad.

Recently successful creative Malaysians abroad have started to show interest in working

closely with the Malaysian government and local companies. They are willing to train new

young talent from Malaysia to penetrate the global market. Also, the Malaysian government

has managed to attract many larger companies to open up local branches. These positive

changes can assist more creative talents from Malaysia in finding a global audience, introduce

the country as a good place to invest for foreign companies, and bring Malaysia a more

favourable position in the creative economy in the region and globally.

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5.7 Conclusion

This chapter examined LCP as a leading animation television production company in Malaysia

and Southeast Asia. Their television series and 3D film managed to create a significant impact

in the market by portraying Malaysian culture (refer Appendix 9). Animation is one of the

important sectors given top priority under Malaysian government MSC project. Beforehand,

Cyberjaya—the capital city for the Malaysian MSC—and Hong Kong’s Cyberport were

discussed. Both places aim to become their region’s ICT capital. The differences and

similarities between the two places were discussed extensively. RQ1 was addressed through

seven themes identified by this study based on the interview with LCP. Following that, the

second and third research questions were answered through the discussion on how Malaysia

developed their creative economy focusing on animation sector, and using traditional their

cultural assets. There is a close relationship between the animation and cultural sectors in

Malaysia. To date, the majority of Malaysian animation products are marrying both elements.

This is their unique feature follows the government’s direction to feature Malaysia’s culture in

animation products. However, the Malaysian animation sector is still new, and lacks advanced

facilities and funding. They also face fierce competition from developed countries and large

studios or productions with large budgets and established infrastructure. Thus, the future of

this sector is volatile and requires continuous support from the government. The last research

question (RQ4) raised key issues (for example, budget, policy making, and global market

challenges) faced by the country currently in positioning Malaysian creative economy in the

region.

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6. CASE STUDY TWO: MALACCA MUSEUM CORPORATION

With its government buildings, churches, squares and fortifications, Malacca demonstrates the early stages of this history originating in the 15th-century Malay sultanate and the Portuguese and Dutch periods beginning in the early 16th century. The town constitutes a unique architectural and cultural townscape without parallel anywhere in East and Southeast Asia.

(UNESCO 2008)

6.1 Introduction

The second case study was undertaken with Malacca Museum Corporation (PERZIM) which

is currently managing Malacca Maritime Museum (MMM) and eighteen other state-owned

museums in Malacca. Staff members from this state government cultural tourism corporation

were interviewed face-to-face. As an organisation involved directly with cultural tourism

products and services, the Malacca Museum Corporation’s experience can provide insights

regarding the transformation of cultural institutions, particularly museums, when adopting

modern technology and ideas in order to become competitive in the global market.

The chapter opens with outlines about the second case study interview for this research,

followed by a comparison of PERZIM and the Museum of Vancouver (MoV). Similar to Case

Study One, seven themes are identified to answer the first research question. The findings of

the interviews, secondary data, and quotes taken from document analysis will be used to

answer research questions two, three and four. Finally, a chapter conclusion will be delivered.

6.2 Comparison between Malacca Museum Corporation, Malaysia and Museum of Vancouver, Canada

In this section a comparison between PERZIM, Malaysia and MoV, Canada (formerly known

as Vancouver Museum) will be presented. Research on MoV was done based on document

analysis, while research on PERZIM was done through face-to-face interviews and document

analysis. The similarities and differences between the two museums are presented in the next

section.

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6.2.1 The development of Malacca Museum Corporation (PERZIM)

PERZIM is a Malacca state government corporation that manages all the state’s museums

and heritage sites (refer Appendix 10). Realising their lack of other natural resources, the state

government paid special attention to developing the tourism industry as their major income,

and cultural tourism is one of their focuses. PERZIM has many plans in line with the ICOM

mission to become a non-traditional museum by implementing new ideas and upgrading the

museum via such means as relaunching their light and sound program, opening at least

another three museums outside Malacca city in 2010, and curating a cultural parade show.

Although the state government is searching for other resources for their economic growth—for

example, from the agricultural sector—tourism remains their main focus. Due to its small size

and limited natural resources, the state’s dependency on the tourism industry is unavoidable

(Cartier 2002).

The tourism industry has been the most important income for Malacca for the past twenty

years, and is fully supported by the state government. Not only have their heritage sites been

fully utilised, but their minority ethnics such as the Baba Nyonya, Chetti and Portuguese are

used as tourism attractions for the state. As a result, all ethnic groups are given fair attention

in the state government tourism planning. However, the issues of unfair treatment to certain

ethnic groups, particularly minorities, have continuously been raised in Malaysia. A multiethnic

country like Malaysia will always have this issue. Analysis made by the Malacca state

government on the evolution of the tourism industry that took place in Malaysia and Asian

region in the 1980s, revealed that heritage tourism alone was not sufficient to attract tourists

(Cartier 2002). Thus, the state is not only promoting and developing their heritage buildings

and places, but also education, entertainment, and minority ethnics. Importantly though, other

states in Malaysia such as Kedah, Kelantan and Perak, have more interesting cultural

resources than Malacca, which through poor management, and a less pro-active state

government, has led to cultural resources not being fully utilised. This has created resource

wastage, and a loss of potential income.

Another contentious issue in Malaysia lies among the minority ethnic groups, who claimed

they were not given enough attention in the development, although local authorities denied

these allegations. For example, in a state like Penang that is populated largely by Chinese,

any Malays living in the island state feel that Malay history has not been considered and

thereby largely ignored (Mohamed 2006). Other states with a majority population of Malays,

Chinese and Indian minorities feel similarly ignored. Issues including whose culture to

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promote, authentic versus staged culture (Mohamed 2006), and commercialisation of culture

(O’Connor 2007) have caused heated debate among the academic sector, cultural activists

and local people. Further, another group of cultural activists feel that most of the heritage

buildings in Malaysia are colonial buildings. These activists disagree with the idea of

preserving and promoting the colonial past and culture. Thus, the question of whose culture

should be promoted as the main feature remains a contentious issue in promoting cultural

tourism in Malaysia. Postcolonial tourism has been utilised by many countries in the world

because it attracts a greater number of tourists, particularly from the west. Malacca‘s major

tourist attractions are mainly postcolonial buildings.

An anti-colonisation group criticised the building of the Flor De Lama replica, arguing that it

represents a symbol of high respect for Portuguese colonial power and history in Malaysia.

This group also criticized PERZIM when they introduced a new feature that saw museum staff

wearing the traditional costumes of colonial countries (Portuguese, Dutch and English) that

used to rule Malaysia, and allowed the visitors to take photos with them. Of course, new ideas

or changes will always invite debate, and there will always be at least two camps in any new

development. This process occurs in any development because there will always be positive

and negative sides. Rather than support the commercialisation of cultural resources, this

study’s stance is that they should be promoted with caution so that any misconceptions can be

avoided or minimised.

Heritage buildings and places owned by private companies and individuals have to find

independent means to finance their properties. The government can only provide limited

assistance to them, and in most cases only moral guidance and support. In many cases,

building owners cannot always generate enough income to preserve them, especially

considering Malaysian weather. Thus, some owners may end up selling if they receive an

attractive offer. Subsequently, the purchase of these properties often leads to the demolition of

heritage buildings to make way for other development projects. Through tourism activities,

these owners may have a chance to generate their own financial resources rather than

depending too much on the government. Through the tourism industry, specifically cultural

tourism, these private owners can generate their own financial resources. The balance

between development and local sensitivity is very important. The stakeholders should take

into consideration the best way to tackle these problems and issues.

The efficiency and determination from the Malacca state government in developing and

promoting cultural tourism contributes in a major positive way to their economy. Hopefully, the

active role played by PERZIM in developing and promoting their products and services, will

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encourage other museums in Malaysia to become more proactive. If they fail to keep up with

the changes and remain stuck in their traditional roles, their existence will be less attractive

and it might be harder to sustain their place in the market.

6.2.2 The development of the Museum of Vancouver

MoV (known as Vancouver Museum until 2008) has a long history that dates back to the Art,

Historical and Scientific Association’s first exhibition in November 1894. By 1905, more than

10,000 people had signed their guest register, and the museum received continuous public

donations for its collection. In 1922, the museum accepted the first remains of a mummified

child from a tomb in Luxor, Egypt from Dr. George Kidd. After that, visitor numbers

significantly increased, particularly between 1939 until 1945. This influx of visitors meant that

the most valuable collections of the museum were removed to an underground vault for

safekeeping. In 2008, the museum announced a major shift in strategy that would see the

institution become a physical reality and as an idea. They would use cross-disciplinary

approaches, and engage the community in dialogue about contemporary issues. The following

year, the museum changed its name to MoV to reflect their new vision. This latest transition

was underpinned by a new vision and strategic plan for 2008-2011, which would hold a mirror

to the city and lead provocative conversations about its past, present and future. In their

strategic plan they identified four strategic priorities:

1. Secure their financial and operational stability;

2. Develop exhibitions and programs that interpret Vancouver through a broad range of disciplines, put history in a contemporary context, and provoke debate and discussion about the city;

3. Enhance their visibility and reputation; and

4. Develop a more inclusive and collaborative approach to community involvement in the Museum

(Museum of Vancouver 2010).

Today, the MoV is the largest museum in Canada (Butler 2002, 8); its website shows the

museum has incorporated interactive exhibits and programs for the last twenty years. Also,

the function of the MoV is as more than just a cultural institution. They also offer services to

the public such as food and beverages, meeting, incentives, conferences and exhibitions

(MICE), rental space and gift shop facilities. These products and services show that MoV is

more financially independent, and fully autonomous in making their decisions. Further, MoV’s

board of directors have differing educational background and fields of expertise. Also, the

museum programs and organised activities are diverse in order to cater for various groups of

people and interests. This diversity shows that MoV is positioning themselves not just as a

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museum, but as a diverse institution with many roles and functions. This is the latest trend that

is taking place among museum institutions, particularly in developed and developing

countries.

Museums need a contemporary image in order for them to remain competitive. From an

architectural perspective, Erickson (1994) states that among a number of functions, museums

reside with the bureaucratic elite of a cultural institution in the curatorial machinery of modern

architecture. MoV is a real-world example of this statement. In today’s rapid evolution of

creativity and technology, the roles and functions of museums have become more challenging

and not limited to those functions identified by Erickson. However, this study will not discuss

further the functions and roles of the modern museums. For further information please refer to

Butler (2007).

Although MoV’s user-friendly website is with rich information about the museum, there is no

statistical information regarding patronage. Nevertheless, being the largest museum in

Canada and one of the four most important, this study assumed that attendance is significant.

This is also based on its location in Vancouver, one of the most populated cities in the country.

6.2.3 Comparing Malacca Museum Corporation and Museum of Vancouver

PERZIM management is currently shifting their role from a traditional mode to become more

educational, and focussed on R&D and entertainment for all their visitors. PERZIM has been

among the first state government organisations to apply these changes in Malaysia. Few

museums in Malaysia are taking these steps, and perhaps that is one of the reasons the

number of visitors to PERZIM museums in Malacca increases every year compared to the

other museums in the country. Museums in Malaysia have been lagging in terms of new

changes and applications or functions. While PERZIM museums have over the past ten years

adapted their new approach, the museums in the United States have, for instance, been doing

the same thing since 1970s. In their mission statement, the American Association of Museums

(AAM) aims to enhance the value of museums to their communities through leadership,

advocacy and service. Also, they are dedicated to ensuring that museums remain a major part

of the American landscape, connecting people with the greatest achievement of the human

experience, past, present and future. This mention of human experience in their mission,

means that experience plays an important role in the establishment of a museum. Also, under

their code of ethics, the AAM states that their common interest is to make a “unique

contribution to the public by collecting, preserving, and interpreting the things of this world”

(AAM 2010).

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MoV (2010) offers products and services that focus on educational programs for children,

youth, and families. This is similar to what MMM is doing, however MoV is more advanced in

this area; they have connected their school programs to the provincial curriculum in

workshops, and activities for students aged from five to fifteen. MoV also has their own blog to

give updates about the latest events at the museum.

Since the history of MoV is longer than MMM, their collections, products and services are

more diverse than those of MMM. Also, they have a different management style because MoV

is not administered by a government corporation or agency. MoV is a money-oriented

institution when compared to MMM, which charged minimal entrance fees (RM 2 per entry to

visit one museum complex). MoV also:

Charges entrance fees for their visitors from $ 8.00 dollars;

Is privately owned;

Has many activities and programs for their visitors; most of which charge fees; and

Have other side-products and services to generate income to their museum such as rental space for MICE activities, F&B, and a gift shop.

Cleary’s (2006) PhD thesis identifies four different types of culturally and politically valid

contemporary museums: modern museums; modernist museums; post-museums; and new

museums. Earlier, Hooper-Greenhill (2000, 150) identified three categories of museums

(modern, modernist and post-museums), and it is significantly possible for Cleary’s new

category to expand in the future. The modern museum according to Cleary (2006) maintains

the traditions of display, investigative research and public instruction through accepted

collection acquisition and exhibition practises. MMM and most PERZIM museums are most

likely to fall under this category. Modernist museums position themselves by employing

architecture as an attention-seeking strategy, but essentially not changing their development-

by-accumulation collection model. Since the early-1990s, museum architecture has received

wide attention in the literature, due to the close link between architectural designs and culture.

The third category of “post-museums” considers postmodern criticism and becomes more

pluralistic and complex in their construction of history. Only a small number of PERZIM

museums can be regarded as post-museums, since they are categorised and operated as a

government corporation, and abide by all the rules and regulations set by the government and

UNESCO. With their full autonomy and financial sources, MoV is more likely to fall under this

category. The fourth category of “new museums” is commemorative and non-inclusive, and

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are created for and maintained by a small elite, essentially to reposition its own history as

central.

Based on Cleary’s classifications, this study categorises PERZIM’s museum, particularly

MMM, as a “modern museum”, and MoV as a “post-museum”, with both also having

characteristics of as “modernist museums”. For example, MMM has the Portuguese Flor de

Lama replica (Fig. 6.3), while MoV (Fig. 6.2.3) has modern architecture and a crab sculpture

fountain. Architecture has played a major role in marketing cultural tourism for the past

decade. More buildings are adapting cultural elements and symbolisation in their design,

including the buildings of MMM and MoV. As institutions for cultural preservations and

restoration, it is substantially important for the museum buildings to be represented by the

collections in their public image. In the case of architecture, this study believes that MMM has

managed to portray its image as a maritime museum, while MoV portrays itself as a modern

and diverse museum.

Figure 6.2.3: Museum of Vancouver

(Museum of Vancouver 2010)

In terms of modern applications, MMM lags behind MoV. However, MMM does not have to be

like MoV in all aspects because their approach and formation are different. Both institutions

have their strengths (also weaknesses), and cater for a different group of visitors or markets.

The strength of MMM lies in its focus on colonial history and a multi-cultural environment,

while the strength of MoV lies in its long-established history, and a variety of functions and

roles (refer Appendix 11). Based on their strengths, it is wise for both institutions to

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concentrate on further developing these strengths rather than to try to develop something

unfamiliar. Not only can this be risky, but it involves the investment of money and time when

success is still unsure. Both museums need to keep up with the changing expectations and

desires of visitors, and at the same time maintain their primary role to educate the public and

preserve their culture. Perhaps in the future, their roles and functions might be different from

now, but presently they should maintain their uniqueness, and at the same time be aware of

the changes taking place around them.

This study has identified some similarities and differences between the MMM and the MoV.

Malaysia was focussed on their multi-cultural and multi-faith attractions even before they

gained their independence from the British in 1957. The multi-cultural and multi-faith images

are the primary topic among Malaysia’s top politicians when they discuss Malaysia’s position

in the global market. The Malaysian government works hard to maintain this globally unique

resource. Since there is an ongoing cultural revolution all over the world, Malaysia has to find

new ideas to sustain their place in the global market. To date, more countries—such as

Australia, Canada, US and UK—are claiming to be multi-cultural. Based on their collections,

artefacts, activities and programs, MoV and MMM have long emphasised a local cultural

influence. Since both countries are promoting multi-culturalism as part of their image to the

world, this element has been employed by both museums. Therefore, the multi-cultural image

may not be unique to Malaysia in the future.

A combination of cultural tourism and modern technology could generate new attractions to

enable Malaysia to enter the global market. In consideration of this, the Malaysian government

is working towards making the public aware of the significant potential of creative economy for

the country. All ministries in Malaysia are talking about adapting these two aspects in their

administration as well as their products and services. At the same time, private companies in

the country also are taking an active part in these sectors. However, they need to become

more independent, particularly with regards to finance, as the government cannot support

them forever.

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6.3 RQ1: What are the main operational issues for Malaysian creative economy enterprises?

Figure 6.3a: Port De Lama Replica Ship in Malacca

(PERZIM 2010)

This study interviewed the Malacca Maritime Museum curator Mohd Shukry Abdullah at the

Royal Navy Museum in January 2010. Other interviews were conducted with museum staff

members on the same day around the Malacca Museum Complexes in Malacca city. The first

interviews were with the “front lines” of the Malacca Maritime Museum at the Port De Lama

replica ship, followed by the General Manager of PERZIM at his office, and the last interview

was with the curator of all eight museums at Historical Museum office.

Seven themes best categorise the answers from the PERZIM respondents. Tables and

exhibits are used whenever required.

Respondent Profiles

From the total of four respondents interviewed by this study, there is only one female staff

member. Three respondents worked with PERZIM for more than ten years except for one,

who worked there for less than a year. Two of the respondents were in their mid-thirties, one

of them in his late-forties, and one in his mid-twenties. All respondents obtained their

education in Malaysia, with one staff possessing a vocational certificate qualification, three

possessing a Bachelor’s degree, and one currently completing his Masters.

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Table 6.3: Respondents Profile for Malacca Maritime Museum

Respondent Post Age Sex Years of working

Education background

Mohd Shukry Curator for Malacca Maritime Museum Complex

24 M 10-months Bachelor Degree (UM)

Zulkifli Museum Assistant 37 M 19-years Certificate (SMVM) Hj Khamis General Manager for

PERZIM 49 M 24-years Masters Degree (UKM)

Syahidah Curator for History and Ethnography Museum, Malacca Education Museum, Democracy Ruling Museum, Malacca Yang Dipertua Negeri (Governors) Museum, Malaysia Youth Museum, Malacca Art Gallery, and Folk Art Gallery

34 F 10-years Bachelor Degree (UM)

PERZIM has a strong blend of staff from all ranges of age and qualification. However, their top

management staff qualification does not vary; all of their curators have tertiary qualifications in

history. I argue that the corporation needs staff from other areas—for example Arts and

Design, Culture, and Tourism—to provide more interesting and different ideas for activities

and programs. By employing a staff with diverse fields of expertise the museum can offer its

visitors a more engaging and satisfying experience.

During the interviews, I found one curator has to look after eight museums under the

corporation, and that the senior curator post for the corporation has been vacant for almost a

year. This potentially creates issues relating to work overloads. PERZIM’s status as a

government corporation means that it takes longer to fill a senior position vacancy, because

promotion depends on seniority and other qualifications. Further, due to the worldwide

recession of the 1980s, the Malaysian government tried to reduce the size of its public sector

by curbing the creation of new posts, abolishing vacant posts in non-critical areas, and

reviewing positions in statutory bodies (Siddiquee 2006). Since PERZIM is a state government

agency, only local Malacca people can apply for the job. Job vacancies sometimes are not

filled long-term, possibly due to shortages of interest in filling the post, because salaries are

not as competitive as those offered by private companies.

Working Environment

The most senior curator at PERZIM is Hj Khamis, whose title is General Manager (GM). Under

Hj Khamis, there are eight curators and this study interviewed two of them. The GM manages

and makes decisions for PERZIM as a whole, while the other curators make decisions for the

museums under them after getting approval from Hj Khamis. The curatorial roles in PERZIM’s

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museums are different from those in developed countries like Australia and the U.S. The

curators are responsible for managing their own museums and staff. For instance, Shukry

looks after the Maritime Museum Complex, which has three museums, while Syahidah looks

after eight museums, and Hj Khamis as the GM administers PERZIM. The GM also represents

PERZIM during state government functions or meetings.

This organisation is a Malacca state government corporation and operates using a top-down

management style similar to that of most other government corporations in Malaysia. The

curators follow the state and federal government policies, rules and regulations communicated

via memos and other instruction. Further, the museums around Malacca city are required to

follow the rules and regulations of UNESCO to retain their status as a “UNESCO World

Heritage City”. To be appointed as a curator at PERZIM, a person must hold either a degree in

history or museology. They must also meet various other criteria set by the state government,

for example, they must be born in Malacca. The GM makes major decisions for the

corporation after getting approval from the state government, while the other curators made

decisions for the museums and staff assigned to them. Thus, each staff member must report

to their superior, according to the traditional government structure of an organisation. The

main role of curators under PERZIM is to manage the operation of the museum assigned to

them. Their job is largely administrative, as opposed to centred on thinking of new ways to

make their museums look more appealing for the visitors. Any decisions made by curators can

take a long time due to tier decision-making and a top-down management style. This may stop

the curator from being proactive and productive in their job. With more than two stakeholders

to report to, and following the rules and regulations, any decisions need careful consideration

in order to avoid any conflict of interest.

When I asked how the staff members are involved in contributing ideas and taking part on the

future planning with their organisation’s products and services, they answered brain-storming,

meeting, and peer group discussion. These processes involve all PERZIM officers from all

departments, and are headed by the GM or a curator. The GM normally chairs the meeting

with the most senior management officer of PERZIM, while the curators lead the meeting for

the museums under their responsibilities with their staff. In this way, ideas for the corporation

are generated; for example, the establishment of a new museum and other activities. For their

activities meeting, PERZIM also consult with the local community members for their opinions

and advice. Malacca local ethnic community leaders such as Malay, Baba Nyonya (Malay

mixed with Chinese group), Chetti (Indian), and Portuguese were called to a meeting to help

the organisation brainstorm the best activities and outcomes for visitors. These community

leaders are also invited to attend PERZIM’s functions and events.

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The rank and file staff members have a special association called MPK, which invites

comments and opinion about their work and other issues relating to PERZIM. Later the

representative for this association brings forward their comments to each related department

in another meeting with PERZIM management. Besides that, each curator organises monthly

meetings for all staff under their supervision. During the meeting, staff members are

encouraged to give their comments, opinions and ideas, and report any problems so the

curator can bring the matter to a higher level authority. Some of the staff members have been

working with the museums for more than twenty years, and the management always seeks

their advice and opinions on certain matters.

Like any other tourism (including cultural tourism) producers, the PERZIM lower-ranking staff

members are the “front-liners”, and meet the visitors the most. Their top-ranking staff

members have less involvement with visitors. Thus, it is crucial for PERZIM or other tourism

producers to train their front-liners adequately; for example, by sending them to attend

seminars and conferences to upgrade their knowledge, and provide their staff with the latest

news about the museum sector in the country and region.

Experience is important, but depth of knowledge is also an important aspect of the front-liner

job, particularly in an era where visitors tend to be more knowledgeable and educated than

ever. Front-liners are required to meet local and international visitors every day, and therefore

these staff must be alert and well prepared. The front-liner needs to represent the corporation,

the state and the country. By attending suitable seminars and conferences, they can improve

their knowledge-base and thus confidence with their job. Front-liners often spend more time

with visitors than other museum staff, as such they play a significant role in presenting the

corporation and state government’s mission to the public. During the interviews, the

management of PERZIM were fully aware of the concept of the creative economy and creative

industries, unlike the lower-ranking staff. PERZIM management should deliver important

information to all of their staff particularly the front line, as they need first hand information

about the museum’s plan in their everyday work. Unfortunately, not many tourism producers

(including PERZIM) in Malaysia recognize the front-liner role as a crucial role in contributing

towards the development of the entire industry.

When generating new ideas for their museums, the staff must to go through several levels of

decision-makers. The lower rank of the staff member, the further he or she is from the final

decision-making process. For example, during the interview the lower-ranking staff did not

know about creative economy development, while the top management were aware of this,

which shows that there is a gap between the top management and low-ranking staff. This type

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of information is crucial for the management to deliver to their staff so that they understand

about the future plans of the corporation, and subsequently can educate the public about the

new changes too. PERZIM encourage their staff to express their ideas to the higher authority

of the museum, but whether they approve these ideas or indicate when they are going to

approve them is another question.

Location

Malaysia is a historical state, and the state government realises the importance of preserving

and restoring its historical locations, particularly around the city areas. Malacca managed to

attract approximately two-million tourists in 2009, and in 2010 their target is to attract eight-

million tourists, according to PERZIM’s GM. The state has been one of the most popular

destinations among local and international tourists in Malaysia for more than a decade.

However, according to PERZIM staff, local tourists make up a smaller percentage of visitors

compared to international tourists.

Shukry reported that PERZIM museums are experiencing decreasing numbers of visitors

because they are facing competition from other tourism products in Malacca state. Examples

include the Melaka Taming Sari tower, which celebrated 500,000 visitors in less than a year in

2009, and the Malacca River Cruise operated by a private company, situated next to the MMM

complex. In addition to these problems, some of the PERZIM policies are discouraging visitors

to their museums. When they started to adopt ICT applications and new ideas like the

Sleepover @ Museum program to their museums, the number of visitors increased

significantly. PERZIM have also recognized a different pattern in the market recently, where

children tend to bring their parents to the museums as opposed to a long-standing trend of the

opposite. Hence, PERZIM’s current and future activities and programs are more family-

oriented in order to attract everybody to the museums.

When asked about the responses to their latest program, Sleepover @ Museum, Shukry

stated that as at January 2010 they had hosted ten groups, of which seven were international

groups from Singapore and Japan. This study found more information about this program

through PERZIM Facebook fan page, and in less than a year since they launched the program

(until April 2010), they had three groups of local visitors, of whom the majority were students

from college and universities. PERZIM expects the number of local groups will increase in the

future, when the program becomes more popular and the public are more aware of it.

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Figure 6.3b: Sleepover@ Museum program at Malacca Maritime Museum

(PERZIM Facebook 2010)

At present, the experience of visiting museums is about more than merely inspecting exhibits.

However, they can also deepen knowledge and understanding (Colbert 2003). In the last

decade, traditional museums globally started to shift their roles to become more than just

exhibition centres. To remain competitive in the market, they are offering other services such

as research and development, meeting rooms, conference facilities, bookshops and cafes to

their visitors. With the rapid development of modern museums, such as science and

technology museums, traditional museums face tough competition to attract visitors.

The same scenario is also occurring in the Malaysian museum sector. Although the numbers

of visitors for PERZIM museums are high compared to other museums in the country, they are

facing tough competition from modern museums and other tourism attractions in the state and

country. Cultural tourism producers, particularly in the museum sector, need to find new ways

to attract visitors to their museums. Introducing new activities and programs could be one way

to attract more visitors, especially from the younger generation. Programs such as PERZIM’s

Sleepover @ Museum received a positive response from younger visitors, who tend to be

attracted to new technology applications and different ideas. Therefore, the museum sector

needs to incorporate these features in their museums. The older generation are perhaps more

attracted to the traditional and cultural features of a museum, thus the museums need to

preserve their cultural identity too. Museums have to cater for both markets and have both

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elements in their attractions in order to remain sustainable and competitive in the experience

industry.

Sector or Industry

In the case of PERZIM, this shows a substantial and close relationship between creative

(experience) industries and cultural tourism. Although modern applications are used at a

minimal level by PERZIM currently, more changes relating to modern components are

expected to be adopted by the corporation within three to five years. For instance, PERZIM

plans to collaborate with a private company to re-launch their Lights and Sounds interactive

program and Malaysia Cultural Parade before the end of 2010. As well as these new activities

and programs, other expansion plans involve a mixture of cultural tourism and modern

technology to attract more visitors to their museums. This is evidence of PERZIM’s serious

commitment to shift their function as from the traditional to the modern category of museum.

All of these new changes are evidence of the close connection between the creative

(experience) industries and cultural tourism adopted by PERZIM. However, in light of

Malacca’s “UNESCO World Heritage City” status holder since 2008, more deliberation must

occur before they can introduce any new changes to their museums, because they have to

maintain strong elements of Malaysian culture in their products and services to remain in

accordance with the UNESCO guidelines (Syahidah 2010). Nevertheless, PERZIM has tried

to include both aspects of culture and modern applications in their museums. They

acknowledge the importance of both elements for their museums, and are working towards

maintaining a balance between cultural and modern elements. This shows the uniqueness of

PERZIM museums, which attract visitors from all over the world.

PERZIM’s statistics show that their museums have among the highest attendance numbers in

Malaysia; at end of December 2009, they received a total of almost 680,000 visitors to their

museums all over Malacca (PERZIM official website 2010). The Sleepover @ Museum

program is an example of a cultural tourism product being given a fresh touch to become

unique and more appealing to the market. These figures have prompted PERZIM to realise

that there have been significant changes in the behaviour patterns of their visitors. One major

shift is that children are bringing their parents to visit the museums (Shukry 2010). Thus, they

are making appropriate changes in response to market needs and wants, which have more

family-oriented appeal and other fresh elements. The findings showed that the museums

managed by PERZIM are marrying both creative (experience) industries and cultural tourism

in their products and services.

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Apart from that, PERZIM has actively organised events, programmes and activities with

different components for the past three years to offer the best experience to their visitors, and

also to create awareness of their products and services. These programs differentiate

PERZIM products and services from other museums. The management of the organisation is

fully aware of the new developments taking place in museum sector in developed countries,

which involve new technology, and the museums under their management are slowly moving

in that direction. At the same time, they acknowledge their major role as the cultural institution

that preserves the history for the country.

Expectation and Future Planning for the Organisation

PERZIM plans to open up at least another five museums around the state in the next five

years. According to Hj Khamis (GM for PERZIM) (2010), there are plans to open up a

museum at Pulau Besar, a popular local tourist island in Malacca. Also, the first submarine

museum will be built around the Kelebang area, and will be the second of its kind in the

ASEAN countries (the first being in Surabaya, Indonesia). There also are plans for more ship

museums to be built around the Kelebang area. This strategy to build more museums outside

Malacca city hopes to divert the attention of tourists to other parts of Malacca.

The organisation also realises the important role of technology, and creativity in today’s

cultural product and services. Thus, PERZIM is trying to shift their products and services to be

closer to the tourists and visitors because this is the era where the museum has to implement

those elements in order to remain competitive. Museum visitors want to be able to interact

with exhibits. The GM (ibid.) is aware of this latest trend taking place all over the world and

states:

Yes, at the moment we are trying lah, to divert and change to something that make us closer to tourists and visitors with museum artefacts, because we can see that this decade is the era for that, the decade where if we go to the museum in Singapore, the museums in Singapore already shifted to those direction. So it is the high time for us... not only museums in Malacca, but also museums all over the country. Ok, no more static exhibition lah, more interactive, more into engaging with our visitors and the artefacts and displays.

At the same time, PERZIM wants to actively involve the local people in the tourism industry,

particularly around Malacca city, to improve their income. With help and support from the state

government, there are many plans involving the locals that are going to be implemented to

give them exposure on the positive potential of tourism products and services. This is the

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future creative economy development plan that the organisation and state government have in

order to generate better income for the locals.

PERZIM has planned to develop their products and services in line with creative economy

development in Malaysia. Not only they will keep preserving the cultural elements, but they will

also keep on introducing new products and services to provide good experience for their

visitors. At the same time, PERZIM is encouraging more local people to get involved in small

businesses relating to cultural tourism sector, using workshops and seminars. Culture and

tourism remain the basis for new ideas to attract the younger generation to visit PERZIM’s

museums. This expansion plan involves culture, tourism and various engaging activities to

offer a better and different experience to their visitors. PERZIM is one of a few museum

corporations in the country and region to have such a progressive plan.

However, even there changes are perhaps thirty years behind those of museums in developed

countries. I argue that new technology is needed for the museum sector to attract the younger

generation, but as a country that has significant cultural features, Malaysia also should focus

on this strength. Not only does new technology require a lot of investment and financial

assistance, but to compete with the advanced countries, modern museums might be too

difficult for PERZIM and Malaysia regardless. Hence, let the advanced countries play to their

technology advantage while Malaysia continues to promote cultural strength with some

modern applications whenever necessary. Developing countries like Malaysia lack the modern

applications and technology that are strengths for developed countries. Thus, museums in

Malaysia should concentrate on their own strengths like unique culture, rather than on their

limitations.

Organisation’s Mission

According to the curator of MMM, Mohd Shukry, MMM follows PERZIM’s mission and

objectives, as the museum is part of the corporation’s entity. The main objective is not to make

money, but more to educate their visitors, particularly the younger generation. They are totally

committed to the International Committee of Museums (ICOM) statement, which defines a

museum as a research institution and a place for exhibitions. Thus, the programs and

activities organised under PERZIM’s museums are more to educate, encourage R&D, and be

family-oriented. However, they still charge minimal fees to their visitors, and the museums

under PERZIM have been a main contributor to state income.

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With decreasing visitor numbers to traditional museums for the last decade, PERZIM is trying

to reinvigorate the museum in Malaysia. They constantly organise programs and activities

according to special themes, which are normally chosen according to the federal and state

government mission. Among the activities and exhibitions organised by them in 2009 were the

Multiethnic Food Festival, Ancient Currency Exhibition, and Malay and Islamic World

Convention and Exhibition. These activities and exhibitions were organised to educate and

expose visitors to the artefacts, and give visitors firsthand experience and knowledge of the

collections.

Apart from that, PERZIM’s latest role has been expanding to include preservation of the

state’s culture and heritage. The General Manager (GM) of PERZIM explains, the job’s scope

and their objectives and mission of their organisation:

Now, our scope of work today is a little bit different, lah, compared to other museums in other states because PERZIM is the secretariat, lah, for heritage and preservation enactment. Hence, we have to look at all aspects involved, we had repaired around 51 traditional houses located in the state of Malacca so that these people can maintain their traditional houses, as well as encouraging them to get involve in tourism activities, lah. And at least while we help them to maintain their houses beautifully, we also help to preserve the architecture, preserve the culture, they also are encourage to receive tourists domestically and internationally. So we gave them basic courses on how to entertain these tourists, gave them necessary information, and other related stuff...

The staff noted that the longer they worked for PERZIM the more they could relate to their

organisation’s mission and objectives. Staff who worked for more than ten years with PERZIM

explained that they are more connected to the museum in their everyday activities.

The corporation is shifting their focus from being a traditional museum to incorporating other

roles according to the ICOM definition of museum (refer to ICOM website 2010). These

changes have been applied by many museums in developed and developing countries. In

Malaysia, PERZIM became among the first few museums to introduce significant new

changes, and receive a positive response from the public and tourists. Nevertheless, the

number of visitors is still low compared to other tourist attractions in the state and Malaysia.

With other tourism attractions aggressively marketing for their products, museums in Malaysia

remain unpopular among the public. The decreasing number of visitors to traditional museums

is not only happening in Malaysia but all over the world, thus more traditional museums are

shifting to become modern museums particularly in developed countries. New changes

undertaken by PERZIM are seen to have potential in attracting the Malaysian public and

tourists back to the museums. However, to remain sustainable and competitive in the museum

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sector in the country and region, they need to adopt new changes such as interactive areas

for visitors in order to foster a different experience.

Creative/Experience Industries/Cultural Tourism Development in Malaysia

PERZIM management realises the importance of adding new applications such as interactive

features and hands-on experience to their products and services in order to make them

competitive in the global market. The curators and GM of PERZIM are fully aware of the rapid

changes taking place around the world, with interactive elements being adopted by many

museums. PERZIM is also following the trend by adding these elements in their products and

services to give the best possible experience to their visitors. The museums under PERZIM

are among only a few museums in Malaysia to implement these features. According to the

MMM curator, vandalism problems meant that there is no immediate plan to add more

interactive elements to MMM. Even at the federal level, only two museums—the National

Museum in Kuala Lumpur, and the Culture Museum in Negeri Sembilan—are doing

incorporating these elements. Besides, PERZIM’s main focus is on displaying the actual

artefacts, rather than depending on the technology and ICT aspects.

The GM’s responses to the question about implementing engaging and interactive

components in their museums, and about the development of the creative economy sector in

Malaysia, was more positive and clearer than answers given by others, particularly in terms of

the creative economy sector:

We just had a discussion... discussion with one company from KL, lah... about... if this project to take off... it will take place by middle of next year. We want to turn the whole complex to become... more towards like Disneyland, lah. Disneyland with our main focus on history... Malacca history and other related history... because we want to introduce this as a new component for tourism... and other related industries, right... to get involve many local people ok, in... in this sector, lah...

PERZIM has other new approaches to attract more visitors to their museums. These new

products and services make their museums different and unique from the other museums in

the country. Their 2009 program, Sleepover @ Museum (at MMM and Malacca Sultanate

Palace museum) was inspired by a similar program in Europe. A Light and Sounds show is

planned to be relaunched in April 2010. PERZIM has designed these new attractions and

programs by PERZIM to offer a different experience from those offered by other museums in

Malaysia and in the rest of the region. Also, these new attractions and programs are designed

to encourage R&D practices among Malaysians, and to educate high attendance rates.

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Visitors who took part in the European version of the Sleepover @ Museum program did not

sleep much in the museum. For the most part, visitors took the opportunity to do in-depth

research about the displayed artefacts and collection inside the museum from various

aspects. However, this study’s interview revealed that Malaysian visitors were looking for

different experiences compared to European visitors; normally, most of them slept for the

whole night during the program. Some joined the program hoping for a mystical experience

such as meeting with ghost. Further, the museums occasionally would add more artefacts and

collections, and rearrange them with a different style and position so that the visitors would not

get bored with the same collections if they visited the museums later.

With their new additional products and services in the museums, PERZIM is hoping to offer a

different experience and attract more visitors to their museums. Their museums are among

the only museums in the Malaysia region to offer different products and services to visitors.

However, offering different or non-traditional products and services can be risky, and different

markets may look for different experiences, as the Sleepover @ Museum program showed.

Document analysis reveals that the program received different comments from two journalists

who joined. One discussed superstitious belief—about the possibility of encountering ghosts in

the museum (Kosmo, 2009)—while the other expressed the excitement at the experience of

joining a new program (Johan, 2009). This demonstrates that in the experience industry each

visitor has different experiences, and often seeks different experiences with new products and

services. Unfortunately, research about the behaviour and experiences of museums visitors is

lacking, particularly in Malaysia.

According to Goulding (2000) there is little research that examines the actions and voices of

museum visitors, but what museum curators and related official bodies are good at is

collecting numbers. This may lead to misunderstandings about the needs and wants of

museum visitors compared with what the museums are offering them. In addition, not all

changes are well accepted by the public. Some changes implemented by PERZIM prompted

argument among and criticism by the locals. For example, the building of the replica of Flor de

Lama had been promoted as supporting and promoting colonisation. This dilemma is normal

in postcolonial countries like Malaysia. The sixteen museums currently operating under

PERZIM have different collections and themes that attract a different market of visitors.

Further, since the experience industry involves intangible products and services, it is crucial

for the producers to make their products and services more tangible to their visitors. Thus

more museums are establishing shops to sell souvenir items that could make their products

and services more tangible experience to their visitors. However, at present there are no

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museum shops at any of PERZIM museums, although there are museum souvenirs produced

and sold by local people around the state and country.

6.4 RQ2: What is the development path for the Malaysian creative economy enterprises?

The development of the experience industry in Malaysia is not new, as it is similar to the

concept of service industry. At present, the Malaysian public is more aware of the term,

service industry than the term, experience industry. Recently, the museum sector has become

considered as part of the experience industry, because it offers experience to its visitors. With

the new roles of museums today, museums in Malaysia have shifted their scope as well. This

transformation is slowly taking place in Malaysia, following a general shift in the function of

museums towards offering a better experience to their visitors. PERZIM’s experiences in

developing their cultural tourism products and services can be identified as a transformation

from traditional activities to engaging activities, and involve two phases.

Traditional to Engaging Phases  

Phase I: Traditional

The formation of Malaysia started in Malacca in the thirteenth-century. The image of Malacca

as one of Malaysia’s historical cities lends a substantial advantage in terms of attracting

visitors to museums. The Malacca state government has played an active role in developing

and promoting the tourism industry in the state since the 1980s, and this is due to their

disadvantage in natural resources compared to other states in Malaysia (Cartier 2002). The

state is heavily dependent on the tourism industry as their primary income, and the cultural

tourism sector has been their major attraction for local and international tourists. Since being

named a “UNESCO World Heritage City”, Malacca has become more popular with local and

international tourists. Further, the location of the museums, attractive museum architecture,

and a constant stream of imaginative programs, are among the strategies implemented by the

corporation to increase attendance. Occasionally, PERZIM introduces special events and

themes to their museums to make raise public awareness of their existence, and to give the

best engaging experience for their visitors. At the same time, original artefacts, collections and

culture are still their main focus. PERZIM is also actively involved in the local community via

their programs and activities, and encourages the locals to become involved with the tourism

industry.

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Museums in Malacca have a significant, close relationship to the tourism industry. This study

found that other museums in Malaysia are also associating their products and services closely

to tourism. In addition, the Malaysia Department of Museums formerly operated under the

Ministry of Tourism (then Ministry of Culture, Arts and Tourism) (Department of Museum

2010). Since the Malacca state government is heavily dependent on the tourism industry, the

museums in the state have to raise new and innovative ideas for their products and services

to become competitive. To date, Malacca is the state in Malaysia that has the highest number

of museums (sixteen public museums) with more being planned. Each museum in Malacca

offers different products and services compared to other museums in the country and some

museums in the region. Thus, as the market leader of the museum sector in Malaysia,

PERZIM has to be aware of the latest developments taking place in the museum sector and

experience industry. PERZIM is cautiously working in the same direction as the rest of the

world’s rapidly evolving museum sector.

Phase II: Engaging

The experience industries involving museums in Malaysia once involved only static displays

and no visitor interaction. With the new role of museums globally, however, the broader role of

museums as educational institutions and to some extent entertainment venues benefiting the

wider public (Stephen 2001), has prompted museums under PERZIM in Malacca to adopt new

approaches. These are among the first few museums in the country and the wider Asian

region to implement these new strategies. Importantly, the development of PERZIM uses the

ICOM mission and objectives to inform their organisation’s guidelines. ICOM (2010) mission

and objectives ask for a commitment to the conservation, continuation and communication to

society of the world’s natural and cultural heritage, present and future, tangible and intangible.

During the interviews, PERZIM staff affirmed that their organisation mission and vision is not

only to make museums a place to display artefacts relating to history, but also to offer

education, R&D activities, cultural centres, and to some extent to provide entertainment. This

offers visitors unique experiences and redefines the institution’s role as traditional museums.

PERZIM also recognise that they have to follow world trends, which dictate that new

components of interactivity have to be applied to their products in order for them to attract

more visitors, particularly younger generations. Thus, PERZIM’s programs and activities are

designed for all demographics of visitors, in particular with families.

PERZIM’s Sleepover @ Museum program offers the experience of education and as well as

entertainment to their visitors. This program had managed to attract domestic and

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international tourists. However, the development of the experience industry in Malaysia—

particularly the museum sector—is in a slow phase compared to other new sectors like

animation and advertising. For instance, the development of animation sector in Malaysia

began in the late-1990s, but its progress has been more rapid than the museum sector, which

has existed in Malaysia for much longer. This slow progress could be due to most of the

formation of public museums in Malaysia being administered by the state and federal

government. The bureaucratic implications of top-down management here sometimes causes

slow decision-making (for further reading read Siddiquee 2006), especially in cases involving

more than one stakeholder in the decision-making process. Consequently, new changes may

take longer time to be implemented.

PERZIM’s official website shows that from 2000 until 2009, the Malacca Maritime museum

managed to maintain the first rank of attendance among all of the PERZIM museums. This

could be due to the new features applied by these museums to make their products and

services more competitive compared to other museums in other states in Malaysia. With

different activities and programs being introduced constantly to their visitors, these museums

have managed to attract a significant number of visitors. Some states in Malaysia may have

better and more valuable collections (see the Perak Museum, and the Cultural Museum in

Negeri Sembilan Shukry 2010) but attendance at these museums is lower than at Malacca

museums. However, perhaps because of Malacca’s UNESCO status caused them to receive

top priority from the federal government, particularly in terms of funding and promotion, since

this title helped to introduce Malacca to the world.

As the museum sector is part of the experience industry, it has to become more imaginative

with their products and services in order to offer the best experience to their visitors

particularly the younger generation. PERZIM is seen as being aggressive in promoting and

developing their museums and brand image throughout the country and the region, while the

other museums in Malaysia are more passive. The only other state recognised for being

aggressive in developing their museums’ brand image in Malaysia is Sarawak through the

Sarawak Museum Department, which is not only offering visitors high quality cultural

collections, but also produces annually an academic journal titled The Sarawak Museum

Journal (Sarawak Museum 2010). Nevertheless, compared to other museums in developed

countries, the museums in Malaysia are far behind with their engaging phase, although there

are some positive changes towards it. Some Malaysian museums—for example, the Kedah

Archaeology Museum (Utusan Malaysia 2009)—are not given proper attention by the state

and federal government, and as a result incur significant wastage of resources.

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Interview respondents revealed that the engaging phase at PERZIM museums has been

taking place rapidly over the past five years while they were prepared the city to become

UNESCO World Heritage City. Once the title was obtained in 2008, PERZIM became more

active in offering new features to their visitors, and has subsequently opened more museums

in the state. While their new features combine culture and imaginative components the strict

rules and regulations from the federal, state government and UNESCO, mean some of the

changes may not be too imaginative in fact.

6.5 RQ3: How do Malaysian creative economy enterprises utilise traditional Malaysian cultural assets?

All respondents categorise PERZIM products and services as belonging to the cultural tourism

sector, and realise the importance of tourism as the major income for the state. Thus tourism

and culture are the two terms used by staff most frequently when describing their industry and

the products and services they offer. With the announcement of Malacca as “World Heritage

City” in 2008, cultural tourism remains a significant tourist attraction. Although the new

creative economy concept has been introduced by policymakers in Malaysia, cultural tourism

is the more acceptable term used by this corporation to describe their products and services.

Since Malacca is lacking natural resources in comparison to other states in the country, the

cultural tourism sector is identified as one of the sectors that can generate significant income

to the state. Thus, all the museum activities under the management of PERZIM mainly aim to

attract more numbers of visitors and tourists to visit the museums and the state.

The state government established PERZIM to manage the operation of the museums all over

the state, and to preserve their local culture. At the time of the interviews, PERZIM was

operating sixteen state museums and planning five museums around Malacca. Recently,

PERZIM also expanded their role by making their museums education institutions for the

public. Hence, their program is normally a mixture of all these elements, and these products

are somewhat different from most of the other museums in Malaysia. This gives an experience

to their visitors that other museums in the country do not provide, and attracts visitors from

different types of market to their museums. PERZIM also assists locals interested in becoming

involved with cultural tourism products and services by organising training and seminars open

to the public. Through this exposure, the organisation hopes locals will learn to operate their

own businesses. This is in line with the state government mission to achieve zero

unemployment rates. Since the 1980s, the state government has recognised that the tourism

industry could generate more job opportunities for the local people and give significant support

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to the development of this industry. Malacca is called the “Historical state of Malaysia” and its

government plays an active role in developing the tourism industry in Malacca, particularly by

promoting their strengths, two of which are history and culture. To support the creative

economy concept, the corporation is using culture, new ideas and technology.

Like other countries in the region, Malaysia promotes her unique culture to attract tourists to

their country. This can be seen in all promotions for Malaysia, whether they are designed to

attract investors, international students or tourism (particularly). The culture of Malaysia has

always been the primary feature. Each state in the country has a different culture to offer to

their visitors, and since the 1970s, culture has been an important component in attracting local

and international tourists to the country (Musa 2004, 147).

Sometimes tourism campaigns based on Malaysian culture create heated debate with

Malaysia’s neighbours, particularly Indonesia and Singapore. Recently, due to similarities

between Malaysian and Indonesian culture, there has been dispute among the cultural groups

in Indonesia. The issue has been prominent in the Indonesian media for more than three

months, and has sparked a series of demonstrations in front of the Malaysian Embassy in

Indonesia. At one point this created a violent situation for the Malaysians who reside in

Indonesia. Both governments met to discuss the issues and try to find ways to solve the

problem. After the issue was settled in 2009, UNESCO recognised Indonesian batik as the

Intangible Cultural Heritage of Humanity. This made Malaysian batik producers furious.

Following these incidents, the Malaysian public urged their government to start patenting local

cultural items such as food and dances, which caused debate in Singapore. The similarities

between the cultures of Singapore and Malaysia are unpreventable, since Singapore was

once a part of Malaysia. I argue that this is an unending debate. The cultural plagiarism that

some Indonesians have accused Malaysia of should not be an issue at all. Every country or

community has copied the culture of others since humans have existed in this world. Culture is

not exclusive to one community, and Malaysia is not the only country to face this problem.

6.6 RQ4: How can Malaysia position itself in the creative economy in the region?

As the historical city of Malaysia, Malacca has managed to position herself comfortably among

the domestic and regional tourists, particularly from Singapore, Indonesia and Brunei. The

state is also gaining substantial attention from international tourism market, and has ranked

Malacca together with other important cities in Malaysia such as, Kuala Lumpur, and George

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Town. Now, more international tourists are travelling to Malacca; consequently, the whole

state benefits. The number of tourists to Malacca has been growing every year, and the same

scenario is evident in their museums (refer figure RQ 2.1 and RQ 2.2). More engaging and

interactive components offer visitors better experiences of PERZIM’s products and services.

With the state government target to attract eight million tourists to the state in 2010,

aggressive promotion has been planned.

PERZIM had succeeded in positioning their museums as some of the most visited museums

in Malaysia, and have become important tourist attractions in the Malacca. UNESCO’s

recognition of PERZIM sets a good example to other state agencies in the country. Other

museums in the country and regions, including Indonesia and Thailand, now seek PERZIM’s

advice on managing their museums. As a result, not only they have a better positioning in the

country but also in the region, and this will directly contribute to the position of the Malaysian

creative economy. After modifying their mission and objective to have their museums do more

than just display historical artefacts and collections, PERZIM has succeeded in adding new

changes to their products and services. The organisation wanted the state to have the highest

number of museums in the country, and at the moment they are leading other states in

Malaysia.

Tourism has been the state’s traditional primary income, and recently creative economy has

been identified by the state government as having significant potential to generate income.

The state government has given priority for the development of creative economy, particularly

in terms of supporting and promoting such development among locals. Each year through

PERZIM, the state has run many training courses, seminars, and workshops, encouraging the

public to participate, especially those who want to start their own businesses. This gives the

locals the proper exposure and preparation for them to get involved in creative economy

products and services, particularly relating to cultural tourism sector.

At the same time, the transformation of the creative economy is also affecting the whole

country. From other data resources, this study found that Malaysia is trying to position herself

as one of the most important countries with a creative economy in the region. In addition,

several significant transformations have been achieved in Malaysia over the past ten years, in

line with the government mission and policy to raise the status of Malaysia to that of a

developed country by the year 2020. For the past five years, more positive development to

promote the creative economy has been taken place across the nation, particularly around

Klang Valley area and in Malaysia cities. Also, more private organisations are playing their

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active role in helping the government to more effectively position the Malaysian creative

economy sector. These government and private organisations are outlined below.

Kuala Lumpur City Hall (KLCH)

Malaysia’s capital city of Kuala Lumpur receives constant support and development from the

federal government and major private sectors, particularly in the tourism sector. Although most

of the administration’s government offices have moved to the new administration city of

Putrajaya, KL maintains its major role as the nation’s number one Central Business District

(CBD). In the KLSP20, the city identified the importance of culture and creative industries in

developing and promoting their tourism sector. Today, KL has many world class creative

economy facilities, and among the popular facilities are:

Istana Budaya (Cultural Palace)

Pusat Konvensyen KL (KL Convention Centre – KLCC)

Dewan Filharmonik Petronas (Petronas Philharmonic Hall)

Panggung Bandaraya DBKL (KLCH Theatre)

Pasar Seni KL (KL Central Market – KLCM)

National Arts, Culture and Heritage Academy (ASWARA)

ASWARA opened in 1994 and now has five departments: dance; music; film and video;

writing; and theatre. Currently, they plan to open up a new department of heritage. This

academy offers short courses and certificate and diploma level programs for part-time and full-

time students. This focus on education in the arts, culture and heritage contributes to the

government's Vision 2020 agenda to become a developed nation. Malaysia aims to follow

these characteristics of developed countries. ASWARA works closely with other government

and private organisations in developing, promoting, and preserving Malaysian culture, and is

well known for preserving and popularising Malaysian traditional dance, music and theatre,

which is on the verge of extinction, particularly in KL. In doing so, this institution often

experiments with new ideas that are a combination of technology, innovation and creativity in

attracting the public particularly the younger generation and international tourists. However, in

comparison to other traditional institutions in KL and Malaysia, ASWARA’s impact as a higher

institution can be considered small, particularly in terms of R&D and producing IP. Until today,

none of their graduates have contributed a significant impact in the development of creative

industries in Malaysia compared to other university graduates.

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University of Malaya (UM)

UM is the oldest university in Malaysia, and has a global reputation as one of the top Asian

universities. Their Cultural Centre was established in 1974, and in 1997 began to offer a

degree with honours program. In 2001, the centre launched their postgraduate program.

Today, UM offers three undergraduate (music, drama and dance) and postgraduate

(performing art, visual art and PhD) programs for students. The centre is also active in

research and organising dialogues, seminars, exhibitions and conferences about creative

industries. Since UM is the first university in the country, the institution has managed to

maintain their R&D and facilities at an international standard. For instance, the centre

organised an International Conference on Performing Arts as Creative Industries in Asia in

2008 (UM Cultural Centre 2009)—a joint effort with the then Ministry of Culture, Arts and

Heritage which received catered to participants from all over the globe. The Cultural Centre is

not only active in organising Malaysian traditional shows, but also modern and foreign

performances such as orchestra, ballet and English theatre. Also, hospitality and tourism

subjects have been introduced at the higher degree level at the Faculty of Business and

Accounts since 2002. As the oldest university in Malaysia, UM offers vast national and

international networking privileges. Unfortunately, the social science subjects are not as highly

regarded by university management as the pure science subjects, and often receive second

class treatment.

New Media Trend (Blogging/Online Social Network) 

Blogging has become the latest global trend, and Malaysia is no exception. Apart from the

online media websites, blogging has become the other means of positioning Malaysia

museums in the region. Thus, both case studies in this research have their own official

website, blogs, and fan pages on Facebook and twitter, which attract substantial fan numbers.

In the time of writing up this chapter in October 2010, LCP attracted over one million fans on

their Upin & Ipin Facebook page, while PERZIM has more than 800 fans, and their number

increase every day. Both organisations actively update their account with photos from

previous and current programs, and organise activities for their fans. Sometimes, these fan

pages inadvertently prompt their fans to fight over certain issues—in one instance, a small

group of Indonesians posted hate messages to Malaysians. Hence, the moderators need to

handle the situation with care.

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Conferences/Meeting/Dialogue 

Today, the Malaysian government and private agencies actively collaborate to raise public

awareness about the significant potential of creative economy for the country. Increasing

numbers of domestic and international conferences, meetings, dialogues and workshops

related to this sector have been organised over the past three years. The latest event

attracted significant names from the creative industries sector, and was held in Kuala Lumpur

in December 2009. The Digital Content Conference managed to attract more than twenty

international renowned creative industries figures and local key players to give their speeches.

In 2009, MDeC for the first time sent the biggest group from Malaysia to attend the Cannes

Film Festival to showcase Malaysian 3D-animated products. The Prime Minister attended this

international event to show his support for this sector, and to show Malaysian government’s

commitment to develop this field. All of these activities were organised to develop the creative

economy, and to position Malaysia as the important country in this sector in the world.

Malaysia claimed to be ambitious with their Vision 2020 mission and the mega projects they

launched, such as the MSC development (Bhuiyan 1997). For the past ten years, the

Malaysian government has continuously offered significant support and incentives to local and

international investors, particularly to open their ICT business in Malaysia. The creative

economy development has been the Malaysian government’s top priority for the past three

years, and many plans under the Malaysian Plan 10 have been established by the

government for its benefit and progress. With Vision 2020 less than 10 years away, the

government and private sector need to speed up with their work. Since becoming the sixth

Prime Minister, Najib has demonstrated his commitment for the development of a creative

economy, and positive progress can been seen all around Malaysia. With strong neighbours

such as China, India and Singapore, this vision is seen by some as impossible. However,

Malaysia has encouraged major international companies including Intel, Harrods, Hewlett-

Packard (HP), Microsoft, and Rhythm and Hues to invest in the country in all aspects of ICT.

This is a positive sign that international companies recognise the potential for Malaysia with

her rich resources (like human resource and culture) to succeed in this sector.

Nevertheless, there are many aspects that still need major attention from the government. For

instance, the level of awareness from the public about creative economy is significantly low.

Hence, the government should educate the public first before they develop this sector further.

The top-down approach by Malaysian government may reach and benefit only some people,

but not the entire public. If the public understand the government’s vision, it will be easier to

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get their support in implementing the vision. Also, until today there is no clear definition or

policy about creative economy or its sectors. A clearer policy on creative economy will give

proper guidance for the market players in developing their products.

6.7 Conclusion

After comparing PERZIM and MoV, this chapter presented the data gathered from PERZIM as

a state government corporation managing more than 16 museums and heritage building in

Malaysia. This highlighted the differences and similarities of museum management in

developing and developed countries. Then, PERZIM’s experience as a traditional cultural

tourism producer adapting to new changes and ideas with new role was categorised in seven

themes, which answered RQ1 of this study. In answering RQ2, a discussion followed about

how PERZIM developed their cultural products and services to remain competitive in the

market. Finally, RQ3 was addressed by highlighting the close relationship between the cultural

tourism and imaginative ideas used by PERZIM in their products and services. The

corporation also used ICT facilities to gain a better position in the market. However, special

consideration is needed with these modern applications. With their elite status within a

“UNESCO World Heritage City”, the corporation has to ensure their changes continue to

maintain the traditional elements in their museums and heritage buildings. RQ4 discusses

government strategies to assist in positioning Malaysia’s cultural organisations in the region.

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7. DISCUSSION OF CREATIVE ECONOMY DEVELOPMENT IN MALAYSIA IN THE CONTEXT OF TWO CASE STUDIES

Innovation creates jobs and boosts national competitiveness. This is why we, too, must make a creative impact in a competitive global economy. We must not allow ourselves to be left behind.

(Malaysia Prime Minister, New Strait Times, 2009)

7.1 Introduction

The intense development of technology in Malaysia started with the Vision 2020. The

Malaysian federal government plans to boost their communication, creativity, multimedia and

technology growth (Gray et al. 2002) and treats the creative economy as a top priority. An

example of this is the announcement of 2010 as the Year of Innovation and Technology (New

Straits Time 2009). However, the terms, creative economy and creative industries are only

popular among policymakers and key players involved directly in the development of these

sectors. Even then, there is much confusion amongst policymakers regarding these terms; in

fact, to some extent there is an overuse of terms like creativity and innovation in Malaysia. At

present, all ministries in Malaysia are stressing the importance of creativity and innovation,

although their definition of the terms remains unclear. New terms such as creative tourism and

creative government are being coined constantly to promote innovation and new ideas among

the public. Thus the assertion that a top-down policy approach is valid at least in both case

studies and for Malaysia in general. This same approach is used in other countries like China,

Hong Kong, Singapore and the UK.

Apart from addressing scientific creativity, the two case study organisations considered the

economy, and technological and cultural creativity in developing their products and services in

Malaysia. However, their experiences may not be creativity as defined by DCMS (1998), but

rather a second level of creativity as Keane (2009) has defined it. It is most likely that the two

case studies in Malaysia exemplify the fitting of new ideas and alternative visions to existing

norms, values and patterns as argued by Keane (ibid.). Rather than creating a totally a new

idea, the two case studies demonstrate the modification of other people’s ideas. This is

reduces the high risks often incurred in these competitive and unpredictable sectors.

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However, culture remains a significant element in all sectors in Malaysia, including in

animation, and obviously in cultural tourism. Likewise, innovation is needed in all sectors,

including culture and, particularly animation. Many authors identify the same close connection

between the cultural and creative sectors, as I have with this current study. Both case studies

here have significant cultural elements, and involve imagination, innovation and technology in

their products and services. Drawing on both cases, the chapter will discuss and analyse

critical issues for creative economy development in Malaysia. Each research question will be

discussed. The chapter extends and contextualizes the findings of the cases drawing on

secondary sources and literature where relevant.

7.1.1 RQ1: What are the main operational issues for Malaysian creative economy enterprises? – Les’Copaque Production

Workforce Issues

LCP staff members have expertise in a range of fields, which may contribute to their

company’s positive impact on the market. Different disciplines allow the staff to produce new

ideas for their animation and merchandising products. However, the majority of the

respondents graduated from MMU, (as did three pioneers of the company also graduated).

This raises the issue of cronyism and favouritism in choosing LCP staff. More than three

higher-learning institutions in Shah Alam offer courses relating to animation sector, but the

majority of LCP staff employed are from MMU, which is located about thirty kilometres away

from Shah Alam. This environment is perhaps normal in any organisation, particularly in

Malaysia, where favouritism towards graduates is widespread. Hence, the presence of MMU

culture is strongly felt at LCP and in their products.

Respondents were all younger than thirty, and approximately ninety per cent of all LCP staff

fall into that age bracket. The argument that younger demographics are more attracted to ICT

than in previous generations is compelling in this case (Allenby 2006; Hoo 2006). All of LCP’s

animation and merchandising staff members are young and understand the desires of the

younger market. However, aspects that are lacking—such as finding financial support for their

products, and networking with established international companies—mean LCP has had to

depend heavily on Multimedia Development Corporation (MDeC).

While the CEO of the company is one few staff members aged more than fifty-years-old, he

comes from a different field and background. As a result, he may not have good contact with

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key people in the domestic and international animation sectors. At present, no LCP products

involve collaboration with Malaysia’s well-known senior cartoonists or animators such as Mohd

Nor Khalid or Lat (Kampung Boy cartoonist/animator) and Muliyadi Mahamood

(academician/cartoonist). A collaboration between LCP and these internationally renowned

creative might produce more interesting products and reach a wider market, particularly

among those over thirty. With LCP’s target market being the whole family, including parents

and grandparents, the company should consider having a good blend of staff from all ages.

This mixture would strengthen their animation and merchandise products.

Management Approach

LCP practices a non-traditional management style where all staff members have the right to

express their ideas. This creates a different working environment from more traditional

companies with a less bureaucratic management style. Commonly, most private companies

involved in Malaysian ICT products and services adopt (or try to) this style of management.

Florida (2002), Handy (1995), and Sabel (1982) argue that the characteristics of the post-

Fodist workplace (which include creative sectors) are inherently less hierarchical, more

“humane” in liberating the expertise of highly-skilled workers to allow productivity gains and

the development of a more contented workforce. However, the final decisions regarding LCP’s

products and services are still made by CEO. For example, the CEO recently cancelled the

production of LCP’s second 3D film, Geng: Angkasa (Gang: Outer space), arguing that it was

not what the primary non-Malaysian animation market of Indonesia wanted. Also, LCP’s sister

company, Bruang Film Production is going to refilm their first feature production, Zaitun

Ceritaku (Zaitun: My story) because the CEO was not happy with the overall direction and

acting in the film. This shows that the top-down approach is still the primary practice in this

company, although many of the decisions for LCP’s animation products are collectively made

by the staff.

Not only has LCP wasted money and time in those two projects, but the cancellation and

refilming exhibits a lack of good decision-making and confidence with the domestic and

international markets outside Indonesia. LCP products are also popular in Brunei and

Singapore. Gang: Outer Space 3D may not be what the Indonesian market wants, but other

markets might welcome the film. Unless there are other undisclosed reasons, LCP’s

justification for cancelling this project—originally slated for a 2011 release—is questionable.

The decision to make a biopic about popular 1980’s Malay singer, Zaiton Sameon involves a

number of risks, particularly given the unpredictable response to local feature films in Malaysia

in comparison with significant competition from Hollywood, Hong Kong and Bollywood. Also,

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Sameon—who is now in her fifties—was popular for less than five years in Malaysia, and

remains unknown in comparison to other Malaysian singing legends, particularly to audiences

who are below thirty-five years old—the most active cinema-going audiences (Movie Picture

Association of America 2010). This again has raised the issue of favouritism, since the CEO of

LCP came from the same state as the singer. Given the unpredictable nature of the sector,

however, the film might get a good response from the Malaysian public.

Geographical Location

As LCP’s animation products are geared towards the family market, their location in Shah

Alam is more suitable than in Cyberjaya. Shah Alam status as a mature city with a multiethnic

population from all classes will boost the company’s image and their merchandising sales.

LCP’s convenient location close to the federal highway, ample parking spaces, restaurants,

and malls makes it easier for the public to access to their products. Also, the proximity of

these facilities makes it easier for staff to work at Shah Alam than in Cyberjaya. Although

Cyberjaya has other advantages, particularly a high speed Internet connection, LCP does not

see it at as enough of an incentive to move there since they are not involved in outsourcing

activities. With at least three highways connecting Shah Alam to Cyberjaya, it is not a problem

for them to go to Cyberjaya whenever necessary.

Nonetheless, LCP’s local competitor, KRU Studios moved their operation to Cyberjaya

because of their close proximity to Putrajaya, and managed to secure many high profile ICT

contracts from the government and private agencies. As one of the local pioneers in the ICT

sector, KRU won the bidding; but this may also be due to their close connection with some top

politicians who are involved in making Malaysia policies and important decisions. Politics plays

a major role in the direction of the Malaysian economy. A close relationship to top politicians

can assist private companies secure high profile projects from the Malaysian government (see

Johnson & Milton 2003). Apart from this, other criteria make these companies successful in

the market. For example, their products have to be accepted by the market, particularly in a

new sector like animation. Also, KRU has a strong background in the creative sector, with

founders who are a famous trio sibling band, music composers, actors and film-makers. KRU

has operated longer than LCP, and established profiles and a strong network, KRU’s

movement to Cyberjaya is perhaps the best step for them to further expand their operation.

Prior to the relocation, KRU operated in Kuala Lumpur for more than fifteen years. The highest

priority for a young company like LCP is to strengthen their company profile and brand.

Hence, Shah Alam is regarded as the best location for their operation—it is important for them

to be close to their market, especially since LCP is not involved in any outsourcing activities

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(unlike KRU). In any event, currently LCP is more focussed on expanding their products in the

region than on other aspects.

Position in Sector

With their main product being an animated television series, LCP is directly involved in the

animation sector, which is part of the content industries. Not only have LCP managed to

produce international standard animation products at a minimal cost, but they also feature

Malaysian culture, which is different from other existing products in the international market.

This new feature introduces the uniqueness of Malaysia to the world, and attracts tourists.

This activity—known as film tourism—will contribute significantly to the local economy and

generate income for locals. Many places worldwide such as France, New Zealand, South

Korea and Thailand attract considerable number of tourists based on their films, television

dramas, documentaries and animations, which demonstrate the close connection between film

(including animation) and the tourism sector. Although measuring the contribution of LCP

animation products towards film tourism in Malaysia is difficult, their products offer significant

potential to contribute to this the sector. Indirectly, LCP animation products and 3D films also

contribute to other sectors (like merchandising and tourism) in Malaysia.

With the positive response from the local and Asian region market, LCP has proved that

Malaysian animation and 3D products are on par with international products. Before that, few

local animation products had the same impact as their international competition, even in

Malaysia, primarily because of the sceptical perception of local animation products among

local audiences. Arguably, the Malaysian local market prefers foreign products in animation

(Muthalib 2007), fashion (Zainol Ariffin 2011), furniture (Mohamed 2011), and films and music

(Basri 2011) compared to local products.

Malaysians audience can be less patriotic about the creative sectors, because they claim the

local products lack creativity. In comparison to creative talent from outside Malaysia, local

talents such as actors, film makers, and singers struggle to gain attention from local and

international sponsors. Maher Zain, a popular international Swedish singer performed three

times in Malaysia over six months (Basri 2011), while veteran Malaysian composer and

musician, Datuk Dr Ahmad Nawab—who produced more than 2000 songs for many Malaysian

popular singers since the 1960s—has been unable to perform at a big scale concert until

recently (Shamsudin 2011). In the animation sector, Muthalib (2007) observes that the general

consensus is that Malaysian animators are still not capable of producing competitive animated

films. Notably, LCP competes with large budget global players like Disney and Pixar. Also, the

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perception that cartoon or animation products are “children’s only” is still strong in Malaysia,

which means that although local products are sometimes better and cheaper than the foreign

products, the local market leans toward foreign products. In addition, Malaysia’s market is

fragmented by multiethnic groups who prefer to watch the productions from China, Hong Kong

(for Malaysian Chinese), and India (for Malaysian Indians) (Hoo 2006). However, younger

generations in these ethnic groups are starting to appreciate Malaysian products, although

there is still a preference for Japanese, South Korean and western products due to J-Pop and

K-Pop culture, and the effect of globalisation.

Future Plans for the Organisation

The positive achievements of LCP products in Malaysia and Asia demonstrate that their

products are well accepted in the region. Respondents believe that one of the major strengths

of their products is the point of difference of exhibiting Malaysian culture to the international

market. In the future, in order to make their products more relevant to the global market LCP

plans to mix local culture with global content. Also, they plan to diversify their products to other

content industry-related products, including computer games, feature films, IPs,

merchandising and franchising. Importantly, Malaysian culture will be the major element in all

of their content products.

However, as LCP has been operating for only six years, the company should consider

carefully their objective of diversifying. Not only does this require substantial funding, but LCP

also may not have expertise in some of the new areas, particularly in producing feature films.

Despite the success of their films and music in the 1960s, the Malaysian market is rather

small, and not many Malaysian films achieve local success (Hoo 2006). The recent

announcement from LCP’s CEO not to show their first featured film due to quality issues

(Mahmud 2010), and not to proceed with their second 3D film project, may tarnish their

reputation with the public. This shows that LCP should not jump eagerly to unfamiliar fields

where they lack expertise; rather, they should concentrate on establishing their core products.

LCP also should be more careful in evolving a new sector, as while their future could be

promising, there is fierce competition from both local and international products. For instance,

numerous local 3D animation films and television series will soon be released by companies

such as Animosta Studio—see Fig. 7.1.1 Boboiboy—and other products, including Alamaya

and Supertots. In addition, KRU Studios produced CGI musical, Magika, which received good

response from local audiences in 2010 following their two high-achieving CGI films, Cicakman

and Cicakman 2 in 2006 and 2007. In March 2011, KRU Studios’ multilingual, epic film, The

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Malay Chronicle: Bloodliners (refer Appendix 13) will be shown in 72 countries. Through the

constant support and incentives from the Malaysian government, market players and products

in the content industry are growing strongly each year, and a static audience size means that

competition is fierce.

 

Figure 7.1.1. Boboiboy 3D animated television series produced by Animonsta Studio

(Animonsta Studio Website 2011)

Organisation’s Mission

LCP’s mission is to penetrate the international animation market by using Malaysian culture as

their unique selling point. This uniqueness differentiates their products from those of other

countries. Currently, many countries in the Asian region are responding well to LCP’s

animation products and merchandise. Their new networking with animation companies from

China, India and South Korea is used as a platform to establish their products in these

countries and other countries. Thus, they are confident their animation and 3D film products

stand a good chance to break into the global market due to their distinctive image. This will

assist LCP and Malaysia to better position themselves in the global animation sector or at

least in the region.

Nonetheless, the Malaysian multiethnic image and culture may not be what the global or even

the local market desires. With the effect of globalisation and the implications of internationally

successful Japanese animation products, LCP’s animation and 3D products may be able to

find a place in the global market. For example, presently LCP products still cannot break into

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other regions, such as America and Europe, although they might get some attention within

Asia. As the new market player in animation sector, it is hard for LCP to compete with other

well-established products from Japan and the US. On one hand, their cultural image could be

a unique aspect for Malaysian animation, but on the other, not all countries understand or can

accept such cultural differences. As Khalid (2001, 154) states, the US company he worked

with (Matinee Entertainment) to turn his comic cartoon into an animated series, had difficulties

understanding Malaysian culture. Also, the rapid evolution of technology makes it hard to

predict the overall direction of the animation sector and the content industry. The market is

becoming complicated, and sometimes quality may not be what the market is looking for.

Perhaps differentiation of products is what the market is looking for.

Company’s Position in the Policy Context

With less than a decade to achieve Vision 2020, the Malaysian government is increasing their

efforts to develop ICT related sectors, including animation. These sectors are heavily

subsidised and have been growing for the past five years, in accordance with government

plans, and there is steady growth in advertising, animation, fashion, film, publication and

television production. For example, less than five animation studios existed in Malaysia until

2005, and that number has expanded rapidly to more than eighteen over the past three years

(3D World Magazine 2010). According to MDeC, the number of creative content producers in

Malaysia increased tremendously to more than 200 companies in 2010. More production

houses are involved in the animation sector, or adopt the latest technology such as CGI, Maya

technology, and Dolby sound applications in their productions. In addition, the number of

higher institutions in Malaysia offering ICT-related courses in order to produce higher qualified

human resources is increasing every year. As a result, these factors have contributed to the

high quality work produced by the local companies on animation series, 3D films, video

games, and other related products. Also, the Malaysian public are becoming more aware of

the high quality of local products compared to the last ten years.

Nevertheless, the domination of developed countries in animation and the content industry is

still a threat to developing nations like Malaysia. Global film markets (including animation) and

television productions are dominated by western products particularly those from the US

(Rosnan, Ismail & Mohd Daud 2010). Since the majority of content industry companies in

Malaysia are categorised as SMEs and have limited funding and facilities, their target market

is restricted to within Malaysia or around South East Asia. The chances for their products to

go abroad are slight without help from the government and private sectors. Hence, their

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growth is heavily dependent on government support and incentives. Funding is always a major

challenge, competing with international products that have strong financial and technical back

up is never easy. The government funds like the Creative Fund and the E-Content Fund have

been created to assist the development of Malaysia’s creative economy to become one of the

important players in the animation global market. However, the processing of funding

applications is claimed to be complex, inefficient, slow, not transparent, unprofessional and

unfriendly (Hoo 2006; Leong 2009). Malaysia’s ongoing position in the creative economy

globally is hard to predict, but their local market has a significant future, that perhaps will spill

over around the Asian region.

With proper training and education, LCP staff members have conceived quality products in

contrast to the previous animation products in Malaysia. They use higher technology facilities

at a minimal cost after receiving significant support from the Malaysian government and

private agencies. LCP received support from at least three ministries and two private

organisations for their first 3D film. Since LCP commenced operations, the Malaysian

government and private agencies have become increasingly aware of their presence, and

have been more prepared to offer the right equipment and support. In addition, the public is

ready to embrace their product.

The significant progress of LCP animation products and merchandise in Malaysia and around

Asia is due to the collective efforts from the government, particularly MDeC and other

corporate companies, as compared to the previous animation companies. The establishment

of MDeC has enhanced the creative industries in Malaysia, and taken them to the next level.

The government has initiated support of the creative industries, and the local market now

follows the government’s lead. Hence, O’Connor’s (2007) argument that this sector is using a

top-down approach cannot be ruled out entirely, particularly in Malaysia. Also, their products

meet many of the needs and wants from the local and regional market, while the animation

products of previous companies failed to identify those elements. Of the four animated films

produced in Malaysia, LCP’s 3D film exhibited good story boards, the highest quality

technology, and was almost on par with other international products. The film is suitable not

only for children, but also for other family members because the story has characters that

represent each age group. However, there is lack of high quality movement of the characters,

with movements still looking slightly robotic compared to characters created in more advanced

countries. The staff members of LCP need to upgrade their skills in this regard. However, as

the cheapest 3D animated film available internationally, this lack of technical skills is

understandable.

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7.1.2:RQ1: What are the main operational issues for Malaysian creative economy enterprises? Malacca Museum Corporation

Workplace Issues

Staff members at PERZIM comprise a mixture of all ages and qualifications. This creates a

good blend of younger and older generations, which is necessary for their institution. As a

museum corporation, they preserve and take care of Malaysian culture. This mixture of staff

could contribute to PERZIM’s accomplishment in attracting a significant number of visitors

compared to other museums in Malaysia and the Asian region. Their products and services

combine the modern and traditional to fulfil the interests of visitors. Hence, PERZIM needs

staff from all ages to represent their market.

However, the qualifications of their curators are not varied enough, and almost 100 per cent of

their staff is from Malacca. This may result in a lack of interesting ideas. Also, by limiting the

intake of their staff to only locals PERZIM have limited the potential for more domestic visitors

from other states to their museums.

Management Approach

The curators of PERZIM are state government staff, and abide by the rules and regulations of

Malacca state. Their role is to manage the museums. The General Manager (GM) acts as the

CEO of the corporation, and he works together with the museum curators to administer all

PERZIM museums. Each curator manages between two to eight museums.

However, not much authority is given to these curators. Each curator has to defer to at least

three stakeholders before making any decisions. This may cause conflicts of interest between

the desires of the federal and state government, and UNESCO, who all may support the

museums financially and in promotional aspects, but can complicate the decision-making and

implementation process. New changes require approval from more than one stakeholder,

which involves tiered-level decision-making. The organisation uses a top-down management

style, where lower level staff may have fewer opportunities to discuss changes with top

management.

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Geographical Location

Malacca attracts a significant number of local and international tourists. Their status as a

Malaysian Historical City and UNESCO World Heritage City aids in promoting their museums

to tourists. Today, Malacca has the most number of museums in Malaysia, particularly around

their city centre. Visitor responses to their museums are among the most positive in Malaysia

(refer Appendix 14). With the proactive support from the state government—who continually

raise new and fresh ideas for tourism products and services—the state has established the

most museums in Malaysia. Their Facebook fan page attracted more than a thousand people

until November 2010, and they update the page regularly with their activities. Their proximity

to Kuala Lumpur, Putrajaya, Kuala Lumpur International Airport, and Singapore makes the

state easily accessible by local and international tourists.

However, the state government’s weaknesses in forecasting and planning the city have

caused massive traffic and congestion problems during weekends, and public and school

holidays over the past five years. The local people of Malacca avoid visiting the city during

peak periods, when parking is hard to find, making drivers parked their car by the road side,

which affects the traffic flow. This congestion leads to other problems like pollution and price

increments among the hotels and taxis.

Position in the Sector

Their products and services of PERZIM combine culture and tourism with some elements of

innovation, to provide different experiences to their visitors compared to the other museums.

PERZIM regard themselves as cultural tourism providers with new, additional roles. Therefore,

many current programs and activities organised by PERZIM portray their new role, and also

attract more visitors from all markets to consume their products and services. In recognition of

the rapid development of ICT in the world PERZIM, is also implementing such applications.

However, PERZIM status as a non-profit organisation means that they depend heavily on

state and federal government financial aid. With minimal charges collected from the visitors,

PERZIM has a limited budget and income to make significant changes that involve advanced

technology. As a result, PERZIM’s museums are less attractive to certain group of markets,

especially in comparison to Singaporean museums. Also, the museums have to compete with

many modern and unique tourism attractions in and outside Malacca city. These attractions

managed to attract a substantial number of people compared to the museums. PERZIM needs

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to be more imaginative in attracting visitors to their museums. By using ICT applications and

innovative planning, the corporation can become competitive with other tourism attractions.

Future Plans for the Organisation

PERZIM follows the ICOM mission, and is shifting their role to become a modern museum

corporation. They have implemented many changes and programs over the past decade, and

are among a number of museums in the region introducing different activities and programs

for their visitors. One change incorporates ICT in the promotion of their museums to the

public, including the establishment of a Facebook fan page, and the virtual museum Malacca

website, which covers the eighteen museums under their management. These tactics aim to

attract more visitors to their museums, particularly the younger generation. Hence, more

engaging and interactive programs and activities are planned to be part of their

transformation. At the same time, they are still maintaining their primary role as cultural

institutions, and UNESCO World Heritage City status. PERZIM’s priority still focuses on

original collections and displays rather than on ICT applications.

In order for the museums to become competitive with other tourism products and services,

museums need to transform from their traditional role. However, some changes by PERZIM

have not been welcomed by cultural activists, who activists claim some of the transformations

promote and support colonisation culture. Also, the number of visitors to their museums is not

as significant compared to other new modern tourism attractions in the state, including the Eye

on Malacca and Taming Sari Tower (see Fig. 7.1.2). Therefore, PERZIM has to balance their

role between the modern and the traditional. In fact, the transformation of PERZIM and other

Malaysian museums is slow compared to other museums, particularly those in developed

countries. The Sarawak Museum has been talking about incorporating transformation to add

creativity and technology to their products and services since 2007. However, given their

distance from the federal government administrative centre of Putrajaya and the Malaysia

capital city Kuala Lumpur, it could take a longer time to obtain approval for these

transformations. Many commentators (Hoo 2006) have recognised that the Malaysian

government has too many bureaucratic levels, and is not transparent enough in implementing

their policies.

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Figure 7.1.2: Popular attractions in Malacca: Taming Sari Tower and Eye on Malacca

(Tourism Malacca Website 2011)

Organisation’s Mission

PERZIM’s museums are progressive in their implementation of new programs, in comparison

to other museums in Malaysia and the region. In recognition of the difficulty traditional

museums have in attracting visitors, particularly for the younger generation, PERZIM regularly

upgrade their products and services, and frequently introduce new attractions. For instance,

PERZIM add new experiential products like the Sleepover @ Museum program to give

different and better experience to their visitors, and to encourage repeat visits. According to

Stephen (2001), the experiences the museums provide to their visitors are important for their

survival in today’s world. With new ideas like the Sleepover @ Museum program, PERZIM

hopes to provide a different experience to their visitors, and importantly to educate their

visitors with new information using non-traditional approaches. This will help them to become

competitive and sustainable in the tourism industry.

Nevertheless, their substantial dependence on tourism industry could create a crisis in the

future. As the second smallest state in the country, fierce tourism development has brought

congestion and pollution problems over the past decade, and Malacca is also facing a

constant water shortage. Therefore, the state government is searching actively for solutions to

problems that could affect the tourism industry.

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Organisation’s Position in the Policy Context

The evolving museum sector means that the role of the traditional museum is becoming more

challenging. With competition from their neighbouring countries—particularly Cambodia,

Indonesia and Singapore—museums in Malaysia need to keep up with the latest trends.

Following the definition of museum by ICOM, the existence of Malaysian museums is

predicated on the principal aims of education, conservation, and preservation of history,

culture and natural history, as well as tourism (Malaysia Museum Department 2010). The

museums in Kuala Lumpur, Malacca, Sarawak and Selangor also are constantly organising

many engaging activities, programs and workshop for the public. Some of these programs

encourage more locals to become involved in the tourism industry by establishing their own

businesses so that they can generate their own sustainable financial resources.

Heritage buildings need a significant amount of money to preserve them especially with

Malaysian weather. Restoration alone will not going generate any income for the owner. With

limited financial capabilities, the survival of private entrepreneurs in this sector is doubtful.

Further, the Department of Museum in Malaysia constantly changes its home ministry.

Although the museum institution is closely related to tourism, it is currently administered by the

MICC. The divorce of culture and tourism in order to separate ministries since 2002 is making

cultural tourism operators lose their focus, who are confused about how to use their heritage

resources (Mohamed 2006, 29). The new MICC has too many responsibilities and

departments, and while their focus is on the restoration and preservation of Malaysian culture,

at times their functions and roles overlap with MoTour. For example, the minister of MICC

Dato’ Rais Yatim has constantly talked about attracting more tourists from the US, and

organised several cultural showcases in Washington during the Malaysian PM’s 2010 visit

there (refer to Utusan Malaysia 2010; Berita Harian 2010). While this demonstrates the

importance of tourism as one of Malaysia’s top three income-earners, their concentration on

the marketing and promoting tourism for the country, could create confusion among the public,

particularly among cultural tourism producers, about the overlapping roles and function

between these two ministries. Also, some other ministries are also talking about similar

concepts to culture and tourism such as, agro-tourism (Ministry of Agriculture), Malaysian

products and services (MITI), and health tourism (Ministry of Health).

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7.1.3 RQ2: What is the development path for Malaysian creative economy enterprises?

This section responds to the second research question, and continuing the earlier discussion,

identifies four primary factors relevant to articulating the development path for Malaysian

creative economy enterprises. There are:

1. Top down approach

2. Local culture as the primary asset of the Malaysia creative economy

3. Limited funding assistance

4. New market expansion

1. Top-down approach

The content industries and the museum sector in Malaysia depend heavily on the

government’s directive and guidance. This top-down approach is being practised significantly

in developing their creative economy. For example, the growth of the content industries in the

country started significantly when the government announced Vision 2020, which led to the

development of MSC mega-project. The museum sector in Malaysia has always been one of

the traditional government institutions that safeguards valuable historical artefact collections.

All state museums in Malaysia are managed by the state government, whereas the national

art gallery, monuments, and museums are managed by the federal government. Although

PERZIM might be one step ahead of the other museums in Malaysia in terms of adopting

fresh ideas and ICT applications, they still manage their museums according to state and

federal government instruction. The General Manager of PERZIM has little power in making

important decisions, which therefore includes Malaysia in assertions by Lee (2010, 41-42) and

Keane (2007) that creative economies exhibit a top-down approach from the government to

the public. Other countries such as Singapore (Lee 2010), China (Keane 2007), the UK

(Oakley 2004), and Indonesia are experiencing the same scenario in developing their creative

sectors.

Although there are small numbers of content companies in Malaysia, they tend to work

autonomously, without following government’s lead, and their products and services are

almost unheard of in the local market. Normally, this minority industry—better known as an

“indie group”—market their products and services abroad or through new media and

untraditional ways. Private museums in Malaysia are insignificant, except for those operated

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by big Malaysian conglomerate organisations, including Aquaria and Petrosains, which was

established by PETRONAS. However, all museums in Malaysia face fierce competition from

other tourism attractions operated by the private sector, from shopping malls to theme parks.

In addition, those reluctant to follow governmental guidance may have difficulties gaining

government support. Presently, both LCP and PERZIM made a significant impact in the

market due to their close ties to the government.

However, I argue that the realisation of the potential of content industry—particularly the

animation sector—in Malaysia might emerge from the market itself. The local accomplishment

of the Gila-gila cartoon magazine sparked interest in the cartoon sector, which later led to an

animated television series and 3D films (Mahamood 2001; 137; Muthalib 2007). This success

generated interest in the potential of this new sector among the government and private

sectors, especially when some foreign products were found to be unsuitable for local culture

because of their negative effects on children. This prompted the government to start playing

an important role in developing, promoting and supporting the local cartoons and animation

that feature Malaysian culture. While the early animation sector in Malaysia was monopolised

by a government agency film (National Film), the private sector has been a key player in the

growth of the content industry in the country (Mahmood 2001, 137). Nevertheless, the

significant support from the government, with their friendly policies for the market players in

content industry, has placed Malaysia on the content products and services map (3D World

Magazine 2010).

At the same time, I argue that a new sector or concept such as content industry and creative

economy cannot gain widespread acceptance without the direction and support of the

government. This also gives confidence to the private sector, particularly small companies, to

venture into this high-risk sector. Without the guidance and support of government, small

companies will find it difficult to enter the market and compete with bigger companies, and

traditional sectors such as the museum sector need significant support from the government

to become competitive and sustainable in the market. As the majority of Malaysian

government museums do not charge high entrance fees, financial support from the

government is crucial for their survival. Countries that have been successful in creative and

cultural sectors through this approach include China, Singapore and the UK, although there

are ongoing debates in the literature about the creative sectors of these countries copying

ideas from other countries (for China, see Keane 2010), producing “output” rather than “input”

creative products (for Singapore, see Yue 2006), and the use of political motifs (for UK, see

Oakley 2004). Importantly, the Malaysian government should implement fresh and imaginative

policies that assist the growth of creative sectors and transform bring new relevance to

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traditional sectors. Imaginative policies can guide market players to become more innovative

with their products and services.

2. Local culture as the primary asset of the Malaysia creative economy

Local culture plays a vital role in the development of the Malaysian creative economy. As

demonstrated by both of the case studies in this project, multi-ethnicity, religion, food, and

language have been used significantly in animation and museum sectors. In terms of the

content industry, Malaysian culture has been featured on film, magazine, newspaper, radio

and television, and the government has encouraged local animation and content producers to

include local culture. Recently, Islamic influence also can be seen in animated series

produced by government agencies such as MDeC and RTM—for example, Ibn Batutta by

Radio Television Malaysia, and Saladdin by MDeC and Al-Jazzera—focusing on a worldwide

Muslim audience. Private animation companies like Animonsta (Boboiboy) and Handy Pro are

also following this direction. However, the Animonsta animation series has more Malaysian

local influence, compared to the other series, which bear significant Middle Eastern influences.

This is the dilemma faced by some of private content producers in penetrating the global

market. European and US markets require their content products to have more westernised

features (3D World Magazine 2010); consequently, their products are not categorised as

Malaysian products, and the public may not be aware that these are local productions; for

example, Transformers cartoon series was produced in the 1980s and 1990s by Lensamation,

which is now known as Lensa Film Sdn. Bhd.

However, Malaysian culture still dominates the majority of content products produced for local

and regional markets. To become competitive in the high-risk market, some companies also

adopt glocal features. In 2011, there are more local animated television series and films

scheduled to come out using glocal imagery. Boboiboy is the first superhero, 3D, animated

television series produced by the three founders of LCP. The story is about a Malaysian child

who can change into three forms and fight against bad people and aliens with his multiethnic

friends, and one Muslim character wears a hijab (Mohamad Zakaria 2009). Boboiboy has

resembles Ben 10, but incorporates Malaysian characters and storylines.

As a cultural institution, PERZIM’s major focus still falls on the traditional roles of museums.

Despite rapid global changes in ICT, this traditional role is still essential even though change

is necessary to make their existence competitive and viable in a market that competes with

other tourism attractions.

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Government and market players recognise the difficulties in competing with developed

countries that have advanced technology facilities and more financial support. Hence,

Malaysian culture has been utilised as the main tool for the Malaysian content and tourism

industries, because of its strength and uniqueness compared to other products and services in

the market.

3. Limited funding assistance

Competition in the creative and cultural tourism sectors requires substantial amounts of

capital. Development of ICT and cultural tourism require significant financial capital and

continuous funding assistance. As a small developing country, Malaysia has limited financial

resources, and while the country is still growing, it also needs significant amount of money for

other sectors. Therefore, creative and cultural tourism sectors have to work on a limited

budget.

Private companies like LCP need to raise their own capital and seek outside resources, rather

than depend on government funding alone. In addition, the recent emergence of the creative

sector in Malaysia means that raising support from local financial institutions can be difficult, a

factor that has been identified by the local market players, particularly new and small

companies. Very little financial assistance is available, and it is hard for these organisations to

compete fairly with larger companies. Although the government has been allocating special

budgetary resources and giving substantial support for the sector (Vicziany & Puteh 2004),

there are still many market players competing for the same funding or government projects.

Jarman and Chopra (2007) and Pandiyan (2009) identify the issue of lack of transparency

from Malaysian government in tenders for government’s projects and funding, while Sidhu

(2009) observes out that the government has restrictive bureaucratic measures in dealing with

creative sectors. Budgets and government projects are normally awarded to larger companies

such as KRU Studios. With KRU’s renowned name in content industry and their close ties with

politicians, the company regularly wins bidding for government projects and contracts. This

company has gained local market confidence in their capabilities for providing high quality

products and services in creative sectors. However, the government and private sector in

Malaysia should give new and small companies an opportunity to work alongside large

companies like KRU.

Larger companies also have the responsibility to include small companies in their projects. By

doing this, they train small companies to work in big projects and have their own income,

which will help them to become independent. These mentor and mentee practises are vital in

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new fields like the creative sectors. There have been positive changes in this field, with large

private local companies assisting small companies like LCP, but more attention should be

given, particularly in helping small rural companies.

Recognising the limited funding problems in Malaysia, government agencies such as MDeC

and MITI are helping small and new companies in the creative sectors to network with foreign

partners. This makes them more independent and sustainable (3D World Magazine 2010;

Plantec 2009). These companies are encouraged by MDeC and MITI to join overseas

exhibition and road-shows to sell Malaysian content products in the global market. From this

platform, they can network with foreign companies and raise foreign funds. As a result,

animation and content companies such as Handy Pro, KRU, and LCP have gained attention

from foreign companies. Today, these companies are working with foreign partners in China,

the Middle East, and South Korea to produce animation and other content products for the

global market.

As a traditional cultural institution and state government corporation, PERZIM depends almost

100 per cent on government financial assistance. Since their museums are non-profit, like

most other public museums, government monetary support is significantly needed (see Zan

2000). Subsequently, their transformation towards becoming modern museums is limited. For

example, museums in Malacca are applying new ideas and ICT features, but at a minimal

level. Most of display items still lack interactive activities. As a result, attracting more visitors is

a challenge, particularly the younger demographics. In addition, museums are facing tough

competition from other modern tourist attractions. This negatively impacts the stakeholders

and may prompt government budget cuts. According to Goulding (2000) the establishment of

contemporary museum is restricted in budgetary terms, and administrators are pressured to

increase attendance. Also, the museum sector in Malaysia falls under the control of the MICC,

since they are a cultural institution; but for marketing purposes, museums depend on MoTour.

This scenario means that Malaysian museums face the awkward situation of reporting to at

least two ministries, which can lead to much duplication and contradiction of duties (Pandiyan

2009). Also, Malaysian government should amend their policies to allow Malaysian museums

to become more independent in finding their financial resources, such as operating their own

souvenir shop and cafe. This will help them to become independent of limited government

budgets for their operation cost.

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4. New market expansion

With government help, the creative sectors in Malaysia are always looking for new markets to

penetrate. Both PERZIM and LCP work hard to remain relevant and sustainable in their

markets. The main marketing attention for both organisations now is in the Asian (including

Middle East) region, and slowly is expanding towards Africa and America. This is because it is

almost impossible to break into the European and US market, particularly in terms of the

cultural differences of content industry products, and large budget animation and film projects

from these countries (Rosnan et al. 2010). Focusing on the Asian market is a major current

strategy because of cultural similarities and the strong economic development in the region.

Also, concentrating on the Asian region offers a good platform for content products from

Malaysia to enter into Asian groups reside in Europe and the US. Similar strategies were

employed by the Indian, Hong Kong, South American and South Korean content industries.

Since the museum sector is considered part of tourism activities, their target market is also

including the European region, because Malaysia receives significant numbers of tourists from

Germany, Netherland and the UK, and these tourists like to visit cultural and heritage places.

Tourists from the UK represent the largest group of tourists outside Asian region in more than

a decade (Aziz 2009). However, the Malaysian government is also looking for other new

avenues to market their tourism products and services, and the US has been identified as one

potential target market. In 2010, the MICC and MoTour organised a Malaysian traditional

cultural showcase in Washington that was officiated by the Malaysia First Lady (Bernama

2010). This event received favourable responses from the private and public sectors.

The Malaysian government is also focusing on the global halal market. They are marketing

their wide understanding about the concept of ‘halal” in their products and services, including

through the content and tourism industries. Nevertheless, the government is much aware of

their competition. In diversifying the markets they promote, the Malaysian government avoids

dependence on only one market. Hence, their economic income will not be affected should

something happen to one of their major income sources. The market diversification is needed

as a backup plan, particularly in the high-risk content and tourism industries.

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7.1.4: RQ3: How do Malaysian creative economy enterprises utilise traditional Malaysian cultural assets?

Three major issues pertain to the use of traditional Malaysian cultural assets for creative

economy purposes, namely, the role of technology; cultural history and cultural tourism; and

“halal” issues.

The usage of cultural resources in technology applications

As an animation production company, Les’Copaque Production (LCP) uses a high level of

technology creativity. In order to make their products different from the market they

incorporate Malaysian culture in their global products. This combination is called glocal

(Robertson 1995, 25-44), a term that started to get attention from the world community in the

early twenty-first century. In Malaysia, this concept has become commonly used over the last

five years. Currently, this is the image LCP is portraying, and has captured the Southeast

Asian market. Later, they translated their animated products into English. Their market is

becoming larger and more appealing to global audiences. With this glocal feature, their

animated products are then spreading out to Southeast Asia and other parts of Asia, making

LCP the most successful Malaysian animated series and 3D film producers in history, using

100 per cent local creative talent. Their market has extended to the Asian region, with their

television series screening on the Disney Channel and Air Asia in-flight entertainment. The

Malaysian multiethnic culture being the major image of their animation and 3D products shows

that the market can connect with their products. The world market today is becoming more

exposed to other cultures, an effect of globalisation.

Since the emergence of this sector, Malaysian culture has always been the main influence on

character and storyline. Hence, creative sectors in Malaysia are substantially influenced by

culture. As De Berranger and Meldrum (2000) and Cunningham et al. (2004) note, the Asian

and European (except for the UK) creative industries sectors are deeply rooted in cultural

activities and tradition. Their cultural strength and rich resources of many developing countries

mean that cultural sectors such as arts and crafts and heritage make up part of the creative

industries. Their definition and understanding about creative industries are different from the

UK and other western countries (Kong et al. 2006). Therefore, many developing countries

tend to follow the UNCTAD definition rather than that of the DCMS, because they want to use

their culture to develop their creativity sector.

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The contemporary animation sector in Malaysia started at the same time as the development

of Multimedia Super Corridor (MSC) began focusing on establishing a knowledge economy.

The model for this project was based primarily on Silicon Valley (in the US), and projects in

Japan and South Korea. Local culture also plays a major role in this project, when policies

from Silicon Valley, Japan and South Korea are not appropriate for local culture. Hence, the

Malaysian government has introduced some culturally specific rules and regulations

throughout the development of the MSC (see MSC 2010). This approach—known as cultural

protection—is still applied by the Malaysian government today. For example, although the

usage of Internet is not censored, there are certain sensitive issues relating to ethnicity and

religion that are not encouraged. To foster national identity, Malaysian companies are

compelled by the government to portray Malaysian multicultural and religious identity in their

products and services (Mahamood 2001, 139). In order to gain government funding, many

companies adhere to this guideline. Consequently, all early animated television series in the

country have these influences.

However, many series tend to have similarities to popular animated series from developed

countries such as Japan, and the US. This raises concerns among developing countries about

a lack of firsthand creativity, which is replaced by a second level of creativity that imitates

other products in the market (Keane 2004; 2007; 2010). For example, developing countries

like China, Indonesia and Thailand are known for producing imitation products. However,

since the progress of creativity sectors is hard to predict, it is important to keep track of market

responses. Further, most developed countries began by imitating the culture, products and

services of other countries, and creativity is arguably rooted in culture. For instance, one of the

earliest German animators claimed her first animated film was inspired by traditional

Indonesian and Malaysian shadow puppet shows (Citizendia 2011). The museum sector in

Malaysia is directly involved in merging cultural assets with technology. With the new ICT era,

the state government cultural institution of the Malacca Museum Corporation (PERZIM) is

transforming their role to become a modern museum institution. Modern applications involving

IT and innovation are being adopted by all museums under the management of PERZIM,

although newly established museums such as Malacca Maritime Museum have more modern

applications and facilities compared to their old traditional museums.

However, the museum sector is moving at a slow pace in Malaysia, and lags behind museums

in developed countries. Although, the creative sector in Malaysia has just been established, its

growth is faster than the museum sector. Innovation and the application of modern technology

are implemented at a minimum level by most Malaysian museums. Currently Department

Museums of Malaysia is administered by MICC, which already has too many responsibilities,

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including in some aspects of content industry such as film, drama, Internet, and television

production. This limits the budget that MICC can allocate to each sector under the ministry.

Consequently, the museum sector in Malaysia has hardly been mentioned by its own ministry,

and receives little coverage by the local media. The development of the creative industries in

Malaysia makes the position of museum sector more complicated to place, as it is at an

intersection between the creative industries and the cultural sector.

Cultural history and cultural tourism

Malaysia’s strengths include a rich history and natural resources. Since the eighth-century, the

Northern state of Malaysia, Kedah, and Perak, were administered by the early ancient Hindu

government, and their influence can still be seen today. Apart from the Hindu influence,

Malaysia was also shaped by Siamese (Thailand), Portuguese, Dutch, English and Japanese

colonisation. The country has thirteen states within two federal territories, and each state has

its own culture, and sometimes accents. Governed by a constitutional monarchy, Malaysian

politics are unique, with the “Yang di-Pertuan Agong” as a King and head of the country has

the obligation to act in accordance with government advice (see Heufers 2002). The King is

elected by nine Malay sultans and four governors, and rotated every four years during the

“Conference of Rulers”. Malaysia’s multiethnic culture and religion also contribute to the

country’s unique status. All of these factors attract significant numbers of international

investors and tourists every year, but Malaysia’s strength also can be their weaknesses.

Malaysia’s modern history involved conflict and bloodshed. In the wake of the Second World

War, during the transition from Japanese and British rule, Malaya was ruled by the Communist

Party of Malaya (CPM) for three months. After the return of British to Malaya, CPM was

disbanded, but remained active by hiding in the jungle until 1989, and engaging in guerrilla

attacks against the ruling government. The majority of CPM members were Chinese and led

by Ching Peng, they killed many Malay villagers, while the Chinese community helped the

CPM with information and food (History of War 2011). This has engendered suspicion

between the Malays and the Chinese communities, which culminated in race riots in 1969.

Since then, the Malaysian government has concentrating on building unity between their

ethnic groups, and is always promoting the country’s multiethnic and religion image to the

world, a tactic that has been particularly successful for the tourism industry.

Nevertheless, Malaysia’s tourism campaign sometimes raises heated debate with her

neighbours, particularly Indonesia and Singapore. In 2010, a series of disputes over traditional

dance—tarian pendet originated in Bali—were raised by small group of Indonesians, and

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consequently inflamed by the Indonesian media. After a series of demonstrations in front of

the Malaysian Embassy in Indonesia, there were violent confrontations with Malaysians

expatriates in Indonesia. Both governments met to discuss a solution, but even after the issue

was settled, UNESCO’s 2009 announcement that Indonesian batik was part of the Intangible

Cultural Heritage of Humanity infuriated Malaysian batik producers. These incidents prompted

the public to ask the government to start patenting Malaysian cultural items such as food and

dances, which has caused friction with her other neighbour, Singapore. Regardless, Malaysia

still promotes their cultural uniqueness to the world. Conflict with neighbours will not change

their strategy to use culture in promoting the country.

The significant similarity between Singapore and Malaysia culture is unavoidable, since

Singapore was once part of Malaysia. Elsewhere, the majority of Malays—particularly in the

southern part of the Malaysian peninsular—originate from Indonesia. The debate on these

issues will never cease. Indonesians accusations of cultural plagiarism by Malaysia should not

be an issue at all. Every country or community has copied other cultures ever since human

existed in this world. Thus, culture is not exclusive to one community, and Malaysia is not the

only country to face this problem with her neighbours. For instance, China, Japan, and South

Korea each claim that Confucius originated from their country. The dispute over cultural

similarities is hard to resolve. Hence, Malaysian government is actively looking for potential

new markets and a unique national image. One of these new markets is the Muslim market.

The tourism industry has become the second major income for Malaysia since the mid-1990s.

Malaysia tourism campaigns use the country’s culture to attract domestic and international

tourists to visit, and Malaysia maintains its position in the top 20 most visited countries in the

world (WTO 2010). The country has the right combination of elements to attract tourists. Not

only are there unique multicultural and religious aspects, but the country has a low cost of

living, the majority of Malaysians can speak English, and world class infrastructure has

contributed to significant tourist numbers. Malaysia’s multicultural status offers advantages in

meeting the desires of tourists. The country is suitable for tourists from the West and East, as

well as Muslims and non-Muslims. The government decision to promote Malaysia as a

modern Muslim country with moderate rules and regulations (Kamin et al. 2008; Van der

Westhueizen 2004) is a good move, since non-Muslims—particularly from the West—will not

be afraid to visit Malaysia compared to other Muslim countries that have strict rules and

regulations. Realising the significant potential of Muslim market, the government began to

promote Malaysia as a tourist destination for Muslim tourists (Khalid 2009). Islamic imagery

has been used to market Malaysia to Muslim markets. At the same time, Malaysia also

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encourages other tourists to visit the country by using other images like friendly people, good

food and a multiethnic culture.

The “Halal” market and cultural assets

Currently, the Malaysian government is aggressively developing Malaysia as a “halal hub” for

the regional and global Muslim markets, which the Malaysian government began targeting

after launching of Halal Hub Corporation in 2008. With their tagline “Halal for all”, this

marketing campaign targets everyone, and involves a wide range of products and services.

Malaysia’s strategic location means that it is easier for people from all around the world to visit

for business or leisure. With its steady growth, the government’s move in promoting and

developing Malaysia to become a world halal-hub is a smart choice. The markets estimated

worth—US$150-billion (Fischer 2008)—and buying power strength of approximately US$1.9-

billion worldwide (Shafie & Othman 2006) offers a stable platform for Malaysian products to

enter the global market, particularly in Europe and North American. The substantial potential

of the halal market, means that many non-Muslim countries such as Australia, China,

Denmark, New Zealand and the UK are also starting to capture this market (ibid.) mostly by

offering more halal food outlets, cosmetics, pharmaceuticals and hygiene products.

Unfortunately, their products are limited and lack the professional skills that are available in

Malaysia.

With little western understanding of halal, Malaysia has an advantage in tapping into this

market. The country has all the right facilities and a clean image as a Muslim country to

become successful in this market. For example, the halal accreditation license by Department

of Islamic Department Malaysia (JAKIM) is recognised worldwide, and their certification and

logo is highly respected and sought after by businesses worldwide (ibid.). Halal covers a wide

range of products and services from food to non-food categories. Hence, Malaysian halal is

not limited to only providing food and beverages, but also covers slaughtering, storage,

display, preparation, hygiene and sanitation (Shafie & Othman 2006), Islamic finance and

banking (refer Rosly & Abu Bakar 2003), fashion (Pak 2009), cosmetics for Muslims (Abd Aziz

et al. 2010), and halal tourism. In offering a halal hub, Malaysia is also targeting halal tourism

for Muslim and non-Muslim markets.

For more than a decade, the multicultural image has always been at the centre of Malaysia’s

major marketing campaign. However, at the same time, globalisation has seen more

countries—particularly developed countries—make similar claims. Now, the concept of a

multicultural image has become a common selling point, particularly in large cities all over the

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world. Recognising this, the Malaysian government is expanding their market beyond that

image into health tourism, halal tourism, and establishing a second home in Malaysia. In order

to attract Muslim tourists—particularly from the Middle East—the government has developed

many Middle Eastern-friendly facilities. In Bukit Bintang, Kuala Lumpur there is a place called

as “Ain Arabia” or Arab Street, which offers significant Arab influences in cafes, restaurants,

and shopping complexes. This raises the issue of staged authenticity in the tourism industry

(MacCanell 1979; McKercher & du Cros 2002, 12). Also, tourists might not truly experience

Malaysian culture by visiting this type of place, which is the same as what they have in their

own countries.

Apart from halal tourism, the Malaysian government has initiated many projects in order to

become the market leader for halal products and services. Moreover, MDeC has collaborated

with Al-Jazeera to produce the animated television series, Saladin, which tells the story of a

famous Muslim war hero and his clash with the Crusaders in Jerusalem (see Fig. 7.1.4).

Figure 7.1.4: Saladin produced by MDeC and Al-Jazzera (Multimedia Development Corporation 2010)

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Although the term, halal is not directly suitable to be used for animation or content industry

products, contemporary Malaysian animation products are suitable for Muslim audiences

because the Malaysian culture that these products are portraying has Malay (Muslim) and

traditional Asian influences. In 2010 and 2011, Malaysian local animation companies began to

produce animated television series with Muslim characters for local and international viewers

such as Bathutta, Boboiboy and Saladdin. Other Malaysian content products including books,

magazine, and television productions are suitable for the Muslim market. With low violence

and almost no obscenity, particularly in their animation, film and television products, Malaysia

can enter this market easily. The first reality show on finding young Imam was produced by

private television channel Astro, attracted international audiences, and created media frenzy in

non-Muslim countries (AFP 2010). The second season of this program is scheduled for

broadcast by mid-2011, with contestants from Brunei and Singapore. For the past five years,

Malaysian Muslim fashion designers have been active in organising “The International Islamic

Fashion Festival” in Kuala Lumpur. The annual event receives support from the government

agencies and local authorities, and attracts many international designers. Organisers have

collaborated with Indonesian fashion designers to host this event outside Kuala Lumpur.

However, there have been heated protests liberal-thinking Malaysian non-Muslim and Muslim

creative talents who are reluctant to be associated with Muslim or Malay images. For instance,

some of the non-Malay film-makers and audiences in the country question film needing to use

Malay language (Hoo 2006), which is the country’s official language, in order to be designated

a Malaysian film. This shows that some Malaysians are still confused about their own identity,

and have strong feelings regarding their ancestors’ land and western influence. Malaysians

normally speak their mother tongue instead of Malay, and watch the films and television

programs from the land of their ancestors. Some may speak English and watch western films

and television programs. These audiences tend to use other mediums to practise their

creativity, and are prone to identify themselves as the “indie group”. Their end products are

normally more controversial, lack Malaysian traditional culture, and are more global with

significant western elements. Nonetheless, once they join the mainstream sector they tend to

tone down their controversial ideas to fit into the main market, and to obtain government

support for their projects. Not only are they following government rules and regulations for the

sake of government funding, but the indie market is too small for them to survive long term.

For example, FINAS statistics show that indie films released without FINAS approval had poor

box office figures.

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Mainstream Malaysian filmmakers can accept the rules and regulation set by the government

that are described by indie filmmakers as too strict and limiting creativity. Some commercial

film activists accuse this group of filmmakers as overconfident with their own ability.

7.1.5: RQ4: How can Malaysia position itself in the region’s creative economy?

In order for Malaysia to position itself in the creative economy in the region, three imperatives

are suggested, namely,

1) Local to glocal culture

2) Policy improvement

3) Diversification of target market.

1) Local to glocal culture

The impacts of globalisation are unfolding quickly, and at the forefront of this new phenomena

are the developed countries, of which the majority are in the west. In recent years, developed

countries from the East, including Japan, and South Korea, have broken this western

monopoly, and now other countries in the East use these two countries as their model to

develop their scientific, economic, and technological sectors. For example, in Malaysia the

Look East Policy was launched in the 1980s to develop their culture and economy using the

same models as Japan and South Korea. However, some of their policies are not suitable for

Malaysia, and were amended by Malaysian policymakers to make them more suitable to local

environments that are significantly influenced by Malay culture and Islam teaching. This

practise—generally known as glocal culture—intermingles the global and the local (Robertson

1995, 26). Recognising the inevitability of globalisation—particularly in the face of the rapid

growth of ICTs and Internet usage—Malaysia’s latest marketing strategy promotes glocal

culture as their image in the global market. At the same time, much of the Malaysian public is

keen to protect their multiethnic and religious traditional culture.

Cultural protection is still relevant in this era, particularly in a multiethnic and religious country

like Malaysia. Developing countries can embrace advance technology and elements of culture

from developed countries, but they also can be proud of their own culture. Not all elements of

global culture and technology are good, and some of them conflict with Malaysian and Eastern

traditional cultures. Some hazardous technology—like modified drugs and nuclear weapons—

could cause great harm without proper management. In addition, local tradition is one of the

unique strengths of Malaysia. Trying to slow or stop globalisation might have a negative

impact on the country and discourage foreign investment. Thus, glocalisation is a more

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appropriate tactic for sustainability in developing countries like Malaysia, in that it will help to

save the local culture from extinction, and encourage the younger generation to become more

appreciative of their traditions. Also, this will foster acceptance within the global community.

Therefore, the content industry can be used by Malaysian government as an important

medium to unite Malaysians and world community. Like regional and global sporting events,

glocalisation can foster better understanding, and build good relationships among locals and

the international community.

Glocalisation has already been adopted by the Malaysian content and cultural tourism

industries to gain wider attention in their respective markets. Failing to do so might affect their

chances of attracting more viewers and visitors on their products and services. For instance,

most of Malaysian content products previously failed to gain minority ethnic audiences in

Malaysia and outside the country. At one point in early-2000, the sector reached its lowest

point, as most local animated production ceased production. Then, in 2005, LCP released

Upin and Ipin, and with the series’ glocal features, became a significant phenomenon in

Southeast Asia and other parts of Asia. Their products have become the most successful

Malaysian animated series and 3D films in history using 100 per cent local creative talent.

Hence, glocal elements might be the best answer to close the gap between what all the ethnic

groups in Malaysia and global market needs and wants.

Glocalisation is more significant in the content industry than in the cultural tourism sector,

particularly in the museum sector, which could be one of the reasons why Malaysian

museums have lower attendance rates. The museum sector in the country should add more

global features like the content products to their museums, but retain their local culture

elements. More glocalised features might attract more interest from potential visitors. Although

traditional culture is important, modern features—particularly the use of advanced

technologies—can help to bring raise the museum sector to higher level. Thus, a combination

of the two is necessary. This research found that glocalisation is the most suitable concept—

especially considering current limitations in technology—to be adopted by developing

countries that depending significantly on their cultural resources for economic growth, and to

remain competitive. Since Robertson (1995) introduced the concept of glocalisation more than

two decades ago, and only from the western perspective, further study on this concept in an

Eastern context is warranted.

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Malaysia is the ideal country to a flagship for the concept of glocalisation, particularly in terms

of the close similarities between countries in the Eastern region. The glocalisation models and

policies of western countries may not be suitable for these eastern countries. Their experience

with foreign colonisers from the East (Japan) and West (Portuguese, Dutch and British)

between the sixteenth and nineteenth-centuries, means that there are many things could be

learnt from Malaysia. Also, the formation of Malaya, and then Malaysia since the nineteenth-

century involves a combination of Eastern and Western cultures. Many Eastern countries

share a similar historical and colonial background like Malaysia, therefore Malaysia has a

strong claim to become a leader in glocalisation issues. The country may lack creative and

technological skills, but it has rich cultural experiences in relation to the unity of multiethnicity

and religion from the East and the West. Also, their cultural attractions are being underrated

significantly compared to developed countries. For example, when other countries may have

only one king and queen, Malaysia has nine Sultans from nine states who are elected to

become King on a rotational basis every four years. Their rich cultural background and

experience with multiculturalism means that Malaysia could be the leader in glocalisation and

globalisation matters.

While some may argue ethnic unity in Malaysia is superficial particularly the Malaysian

opposition political parties, many agree that Malaysia is an example of a successful

multicultural society (see Khalifah & Tahir 1997; Musa 2000; Van der Westhuizen 2004).

Malaysia is among the first countries in the world to promote this image in the market, and is

the first to experience globalisation. When most developed countries are promoting

multiculturalism as one of the characteristics in globalisation in the market, Malaysia had long

experienced that culture. The majority of Malaysians are happy living together side by side

because this is part of their heritage. They have high tolerance with each other, and each

culture is influenced by the other. Malaysian culture is unique because of these cultural

combinations.

However, there are many issues that need to be addressed in order for Malaysia to become

the glocal leader for developing countries. Firstly, the research culture in Malaysia needs to be

upgraded significantly. More research work on the history of Malaysian culture and glocal

features should be undertaken from a local perspective. At the moment, there is limited data

about global and glocal topics in Malaysia, and most of the research has been done by

westerners. With their understanding of their culture, local researchers are well-positioned to

take an active role in examining this topic to gain a deeper understanding of the concepts.

Secondly, Malaysian marketing campaigns and promotion lack creativity. With such cultural

wealth, Malaysia should be able to attract significant numbers of domestic and international

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tourists compared to developed countries with limited cultural resources. However, Malaysia

still fails to attract these cultural tourists. A third problem is evident in the poor maintenance of

tourist destinations by local authorities; some attractions have been left unattended, creating a

waste of resources. Malaysia has a significant opportunity to become world leader in glocal

and global issues, particularly relating to multiethnic and religious culture, but the government,

private sector, and public should be more responsible in improving their infrastructure and

attitude. Importantly, Malaysian researchers have yet to reach global standard. Now is the

time for them to become glocal researchers and later global researchers in order to inform a

better position in the regional and global creative economy.

Policy Improvement

Both new and traditional sectors are vital to the growth of Malaysian economy and society. As

the CEO of MDeC (Ramlee 2011) observes, the government promotion of a content industry

is not fun, but rather a serious business. He says the creative content industry is far bigger

than the information technology industry, with a net global worth of US$2 trillion including

animation, gaming and interactive comic books, special effects tailor-made for films, digital

content for mobiles, and visual effects (Ramlee 2011). Malaysian exports in creative content in

2010 totalled RM114.48 million (approximately AUD 38 million) (Business Times 2007), a

figure that is expected to increase in 2011 (Ramlee 2011). MDeC is collaborating with private

companies to find something new and fresh for the export market. Culture as acknowledged

as the most important element in the content and tourism industry, therefore Malaysian

policymakers should strengthen their cultural policies. Although, these are more advanced

compared to those for new sectors like the creative economy, some older policies need to be

revised to be more relevant in this era. Many issues need attention and improvement from

Malaysia policymakers, particularly in terms of a clearer definition of creativity.

Further, MSC project paid too much attention to tangible facilities rather than intangible

aspects (Jarman & Chopra 2007, 197; Ramasamy et al. 2004, 1196), and the knowledge

economy has been narrowly defined as relating to science and technology (ICT) (Evers 2003).

As a result, the MSC faces many shortcomings in their early stages of development.

Additionally, Jarman and Chopra (2007) argue Malaysia offers developed countries sources of

cheap labour for their animation sector and content industry. To date, the novelty of creative

sector development in Malaysia means that there limited guidelines for the market players.

Many are still being formulated by the government, while some are irrelevant or need

improvement and modification. In addition, the Malaysian government is accused regularly of

not being transparent enough in its decision-making (Pandiyan 2009; Sindhu 2009),

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particularly in terms of budget allocation and funding. Although funding is provided by the

government, it is difficult to obtain. The industries claim that cronyism and favouritism are

evident in the allocation and approval of funding and projects. Many demand a more

transparent system. Additionally, approval of applications can take months. Sometimes, by the

time a film script or television drama is approved, the production company has to make many

changes to the script because of other commitments and weather changes. Also, those who

obtain government funding have to follow the rules and regulations set out by the government,

and thus face restriction of their creative freedom. The government has to be more

transparent with their policies and less political in their decisions. All private companies should

be given fair treatment when tendering for government megaprojects. Financial assistance

should be given to companies that have unique products and services with comparative

potential. Frequent dialogue and seminars should be conducted between the government

agencies and those involved in the development of creative sectors in the country.

However, the government—with the help from private sector—is slowly overcoming these

problems. The past three years have seen positive changes in Malaysian creative sectors.

The MSC development is radically different from Silicon Valley and it will take longer time to

achieve a similar success, but each country has different experience in any developments.

Even different places within one country have different experiences in new developments.

This does not guarantee success for the MSC, even if the development studiously follows the

Silicon Valley model.

Unfortunately, the whole Malaysian cultural sector—and particularly the museums—are facing

decreasing attendance rates. Although museums in Malacca and Sarawak still attract

substantial numbers of visitors, they are face fierce competition from other modern tourism

attractions. Innovation and new governmental directives should be imposed on Malaysian

traditional cultural institutions, since Malaysians are accustomed to a top-down approach. The

government should take the initiative to encourage cultural institutions like museums to play a

more prominent role in their community. Malaysia has rich cultural natural resources that

deserve more attention from policymakers and local authorities. Many heritage buildings and

sites in the country are not given proper attention. This is also due to weaknesses on behalf of

the Malaysian government in enforcing their policies. While they have the policies for certain

areas, the processes of implementation are weak, and their marketing campaign strategies for

cultural attractions are also poor. All of these issues need urgent attention because they affect

economic growth. Malaysian ICT facilities—particularly in cultural institutions like museums—

should be improved all over the country to make venues more attractive, and help maintain a

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competitive edge. Currently, improvement of ICT applications only focused on certain sectors,

and museums possess the least technologically advanced applications.

In terms of research study, government funding for the creative industries or social sciences is

difficult to obtain compared to pure science research. This demoralises non-science

researchers from doing quality research; consequently, Malaysian research into the content

and tourism industries is neglected. The social sciences are as important as pure science

because they study the diverse aspects of human behaviour that makes up a national

community. The Malaysian government should allocate more funding for researchers in this

area in order for them to achieve the national goals of Vision 2020.

Also, the Malaysian corporate sector should improve support for the growth of content and

cultural tourism by providing funding or loans to market players, specifically SMEs. Currently,

while some of them do so, the funding on offer is too small and only focuses on metropolitan

businesses. Most remote and rural SMEs are ignored by the Malaysian corporate sector. The

establishment of the Ministry of Rural and Regional Development caters to issues relating to

Malaysian rural regions, but Malaysia’s corporate sector should play a more prominent role in

assisting the government to reach rural communities. More financial aid and moral support are

needed in the rural areas for their SMEs to survive. Once again, the government can offer

incentives to those corporate companies who are willing to support rural SMEs.

I argue that the domains of creativity identified by Mitchell et al. (2003) should be increased

from four to five domains. Beside scientific, technological, economic and cultural domains,

there should another domain: policies creativity (table 7.1.5). Growth of creative sectors not

only depends on these four domains; policymakers in developing countries also should be

creative. Many authors (see Low 2001, 7; Yue 2006, 18) argue that the success of

Singapore’s economy came through creative policymakers.

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Table 7.1.5: Domains of Creative Activity (Modified) (Mitchell, Inouye & Blumenthal 2003, 22)

Diversification of target market

Currently, Malaysia practises diversification by globally marketing their products and services.

The Malaysian government is moving towards capturing the Muslim and non-Muslim markets,

particularly through their content and cultural tourism sectors (Khalid 2009); in the global

market, they are promoting multicultural products, while in Muslim markets, they are promoting

a moderate Muslim image with their halal hub. At the same time, the Malaysian government is

cautious not to push too many Muslim characteristics, and tries to balance the country’s image

with other images, not only because Malaysia is a multiethnic and mixed religion country, but

also because of “global Islamophobia”. This issue has prompted the Malaysian government to

take extra precautions in their marketing campaigns. Hence, rather than referring to an “Islam”

or “Muslim” hub, the government refers to a “halal hub” to market Malaysia globally. The

government fears that by overly using referring to Islam and Muslim, they might cause a

negative impact on their non-Muslim market. Malaysia’s marketing campaign depicts the

country as a modern, multiethnic, Muslim country (Van der Westhuizen 2004, 1278). The

government is using these images to building Malaysia’s national identity in all sectors. While

there is domestic and international criticism about government policies that allegedly favour

the Malay (or Bumiputra) ethnics and Islam (see Business Week 2003), the majority of

Policy

Creativity

Scientific

Creativity

Technological

Creativity

Economic

Creativity

Cultural

Creativity

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Malaysians tend to follow governmental direction. As a result, the country has become a

worldwide model for multiethnic and religious unity. As one of the popular developing

countries, more attention is paid to every aspect in Malaysia. With pressures from within and

outside, Malaysia has to take care with their internal affairs.

In 2010, over 200 local companies in Malaysia specifically focused on the area of animation,

post-production, e-learning, mobile and creative content within the MSC area. These

companies offer the services of more than 7,000 skilled and experienced professionals (Abu

Bakar 2010). This strength and growth is propelling the content industry in Malaysia,

particularly the animation sector, towards the global market. The strong support for the

Malaysian content industry received from the local market over the past three years is

encouraging more confidence in local companies to market their products globally. LCP plans

to expand their market in Southeast Asia, India and Latin America; local companies like Handy

Pro are eying Saudi Arabia (Abu Bakar 2009); and Igloo Digital Arts, Netcarbon and Shock3D

are examining the international market (3D Magazine 2010, 20-21). These companies

collaborate with international companies as partners on international projects. However, little

Malaysian culture is evident in internationally-marketed animated products. Their scripts

feature low violence scenes and are suitable for a family-oriented market, but their products

have significant global features (refer Fig. 7.1.5).

Figure 7.1.5: Alamaya: Garden of Beautiful Creatures by Shock3D (Shock3D 2011)

With cultural wealth, cheap labour, and positive support from the government, Malaysia has

significant potential to become competitive in the regional creative economy. Her location in

Southeast Asia allows a closer proximity to regional market leaders like Japan, Singapore,

South Korea and Taiwan. This will contribute a spill-over of wealth from these countries to the

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Malaysian economy. Also, the rapid economic growth of China, India and Vietnam will bring

benefits to Malaysia, particularly in the creative sector. Hence, Malaysia should focus first on

marketing their creativity regionally, where other countries share similar histories and cultures,

and there is substantial potential in creative economic activity. The novelty of these sectors,

and a high interest among governments in the region, means that Malaysia can become one

of the market leaders. With her high regional profile, it is possible for Malaysia to establish a

strong position in Asia’s creative economy. For instance, countries like Hong Kong, Saudi

Arabia and Thailand seek Malaysia’s advice in developing their creative content sectors.

Hence, Malaysian government should have good strategy and planning to improve their

position in the creative economy in the region. Their policies also should be competitive with

other governments.

7.2 Conclusion

These two case studies in Malaysia exemplify Keane’s (2010) argument about fitting new

ideas and alternative visions to existing norms, values and patterns. Rather than creating a

totally a new idea, the two case studies demonstrate the advantages of adapting other

established concepts and models. This reduces the high risks encountered in competitive and

unpredictable sectors because some creativity may take time to be accepted. Developed

countries like Japan began with this approach, imitating elements in the creative products and

services of established developed countries.

The two case studies found a mixture of Malaysian culture and ICT application as part of the

unique identity used in marketing their products and services. Both LCP and PERZIM

products and services have fostered income generation, job creation, and export earnings

while promoting social inclusion, cultural diversity, and human development. Also, they

embrace economic, cultural, and social aspects through interaction with technology. LCP

animation and 3D products introduced aspects of Malaysian culture to the market through

advanced technology. They are also involved in intellectual property (IP) development, an

area that PERZIM might soon investigate. The transformation of PERZIM from traditional to

modern models has attracted more visitors to their museums—particularly younger generation

keen to learn about Malaysian history—and help to meet government tourism objectives. With

inter-ministerial collaboration, the development of LCP and PERZIM is feasible in terms of the

innovative elements and multidisciplinary responses that emerge from the combination of

culture and technology and their products and services. At least three ministries are involved

directly with the Malaysian animation or content industries—including the Ministry of

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Information Communication and Culture (MICC); Ministry of International Trade and Industry

(MITI); Ministry of Science, Technology and Innovation (MOSTI)—and cultural tourism—

MICC, MITI and Ministry of Tourism (MoTOUR). These all make contributions to the five major

characteristics of creative economy as defined by UNCTAD (2008, 15) namely,

it can foster income-generation, job creation and export earnings while promoting social inclusion, cultural diversity and human development;

it embraces economic, cultural and social aspects interacting with technology, intellectual property (IP), and tourism objectives;

it is a set of knowledge-based economic activities with a development dimension and cross-cutting linkages at macro and micro levels to the overall economy;

it is a feasible development option calling for innovative, multidisciplinary responses and inter-ministerial action; and

at the heart of the creative economy are the creative industries.

Unfortunately, these UNCTAD characteristics are too broad, and there is no assurance that

the concept of a creative economy will be workable. This new concept needs more study to

understand the challenges faced by developing countries like Malaysia. To some extent, there

is a romantic perception about creative economy as the answer for economic transformation in

developing countries (Keane 2007; 2010). UNCTAD special report on developing countries

has become the major guideline for many policymakers to develop their creativity sectors. This

report has become the champion for developing countries to compete fairly with the developed

countries. However, the reality is far from perfect, particularly when many developing countries

still struggle with other important issues like legal systems (Schultz & van Gelder 2008, 139)

natural disasters. While they have rich cultural resources, developing countries still lack

creative skills, funding, and technology. As a result, the markets for content and tourism are

limited in the Asian region, with even less attention from other regions, particularly in the

animation sector, which has not penetrated the American, African and European markets.

Despite this, Malaysia’s rich cultural resources offer significant potential for the content and

tourism industries. This country can become a market leader in global and glocal issues.

However, to reach this goal, there are many aspects that need to be addressed by the

stakeholders. One major aspect involves policies, which need to be creative to suit global

forces. Currently, Malaysia has sufficient technology and natural resources, but lack of

creative policies. Policymakers need to produce creative policies in order for the country to

become competitive globally. Malaysian has unique characteristics, and with their glocal

features, has significant potential to become competitive through their creative sectors.

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8. FINAL REMARKS ON THE DEVELOPMENT OF MALAYSIA’S CREATIVE ECONOMY

The fundamental source of conflict in this new world will not be primarily ideological or primarily economic. The great divisions among humankind and the dominating source of conflict will be cultural. The clash of civilisations will dominate global politics.

(Huntington 1993, 22)

8.1 Conclusion and Recommendations

The twenty-first century has seen ICT affect all aspects of human life, the contemporary global

market is considerably competitive and complicated. Customers are more demanding and

require fresh, new, and unique products and services. Traditional sectors, particularly the

cultural sector, have to adapt to this transformation to remain competitive and relevant.

Failing to do so may affect their chances to grow, and present the danger of extinction. Hence,

this has made the word creativity popular, with ICT playing a significant role in creating and

maintaining creative sectors. Many governments have confidently highlighted creative sectors

at the centre of their economy reformation, but these sectors are substantially unpredictable

and high risk, with low success rates in developing countries. In general, the idea and concept

of creative industries—and now, creative economies—are not fully tested in developing

economies and their resilience to global issues is unknown.

However, UNCTAD and many other commentators believe that the close link between culture

and creative sectors means that the cultural wealth of developing nations offers substantial

potential for developing their creative sectors. Developing countries in the Asian region are

seen by most commentators to be the next economic powers, particularly in light of the rapid

economic growth of China and India. With majority of the world’s population living in Asia,

many scholars believed the twenty-first century will be the Asian region’s opportunity to

become the new world superpower (refer Mahbubani 2008). However, ICT progress in this

region lags behind that of developed countries. Recognising this, many developing countries

government are developing and upgrading their ICT facilities. Mega projects such as China’s

World Media Centre, UAE’s Dubai Internet City, Hong Kong’s Cyberport, and Malaysia’s MSC

were established in the late-1990s and early-2000s to promote ICT development. These

government projects attracted local and foreign investors, and have encouraged key economic

transformation in other related projects, from content, creative, and entertainment industries,

to the knowledge economy more broadly. With the combination of cultural wealth and ICT

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rapid growth in developing countries today, UNCTAD and others recognise the potential of

developing countries in generating their economy through these sectors. Thus the concept of

the creative economy is seen as an appropriate option for developing countries to close their

economic gap with developed countries.

UNCTAD’s broad definition of creative economy encourages developing countries to develop

creative sectors that until now have been monopolised by developed countries. This caused

debate among scholars because the creative sectors according to UNCTAD are becoming

“diluted”. Regardless, many developing governments are following UNCTAD’s 2008 creative

economy model. Malaysia is one of the developing countries that have supplemented this

model with some local elements. Although there currently is no clear Malaysian definition and

policy on this concept, both content (animation, film, content digital and television series) and

cultural (arts, museums, and handicrafts) industries are identified as part of creative sectors

(Abd Aziz, Amin & Isa 2010). The Malaysian Deputy-minister of MICC, Datuk Joseph Salang,

states that the policy on Malaysia creative industries is expected to be ready by mid-2010

(Bernama 2010). Importantly, the development of these sectors is not new in Malaysia, being

initiated more than a decade ago. However, in Malaysia the general public is not familiar with

the term of the new repackaged concept of the creative economy. Many are more familiar with

cultural tourism than creative industries, not least the creative economy. This is because

cultural tourism was been developed first in Malaysia followed by creative industries, and

more recently, the creative economy. The creative economy has an encouraging future in

Malaysia, since the country has many traditional cultural resources. However, the challenges

also are significant, since competition from other countries, particularly Malaysia’s neighbours,

is fierce.

The first of three sections in this chapter offers conclusions about the development of

Malaysia’s creative economy within the wider context of the global creative economy. The next

section provides recommendations, before this study’s limitations are discussed in the third

section.

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8.2 Creative Economy Development in Malaysia

All four research questions of this project have been addressed in the previous chapter.

Culture plays an important role in the development of Malaysia’s creative economy. Also,

government policymakers and two organisations involved in this research acknowledge by the

importance of ICT, as its involvement in the creative economy strengthens their products and

services to becoming more competitive. Malaysia’s cultural resources are her major strength,

and aspects of ICT have been used to support cultural institutions like museums in expanding

to the next level. Recognising the mixture of global and local—or glocal—Malaysia is now

attracting global market attention by marketing a glocal identity to build a better position in the

region and worldwide.

However, the two case studies demonstrate that policymakers should refine their policies in

order for both creative and cultural sectors to grow in the country. While Malaysia has rich

natural and cultural resources, their policies in this area are weak and not innovative enough

to compete with developed countries. Malaysia undoubtedly has all of the right elements to

become a global market leader, particularly in ethnic unity, provided they can improve their

policies. By being more imaginative with their policies, the government can move their

economy to the next level. The development of tangible and intangible ICT facilities should

also be improved and applied nationally across the cultural sector. Also, policies in creative

sectors remain unclear. Malaysian government and private sector have failed significantly in

allocating resources in remote and rural areas, instead allocating the bulk of funding and

infrastructure to metropolitan regions. Despite forming a special ministry to concentrate on

remote and rural areas, enforcement and implementation of policies are significantly weak.

Consequently, the Malaysian cultural tourism sector lags behind ICT-related fields like the

creative sector. Immediate measures should be implemented by the policymakers and

stakeholders in this matter because cultural tourism and the creative economy are important

for the development of the country. The government should strengthen their cultural policies

and produce clearer policies for creative sectors. This will raise Malaysia to a better regional

and global position.

Many contemporary producers acknowledge the importance of ICT in assisting them to

provide the products and services required by the market. Government, non-profit

organisational bodies, and traditional institutions are also applying ICT in day-to-day

administration, and in offering their products and services. Many cultural producers and

services use ICT to cater to the market demand, especially in attracting younger generations.

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Although, the demand for traditional culture is strong, cultural producers applying ICT to their

products and services are gaining more attention from the market. At the same time, culture

plays an important part in ICT development. A strong cultural background will help individuals

to become more imaginative. Therefore, culture and modern elements like ICT are necessary

in any products and services that aim to remain competitive in a modern market.

LCP and PERZIM are strong industry examples of how culture and ICT have been used to

make their products and services more competitive in the market. Although there are many

potential improvements still to be implemented, these two organisations are the market

leaders in animation and museum sector in Malaysia and the surrounding region. Other

organisations in Malaysia and developing countries can use them as a role model to create

and implement more innovative ideas, in order to be different and unique in the market.

The cultural and creative industries need each other to make their products and services

competitive and sustainable. Without creativity, culture may face the possibility of extinction,

while individual creativity normally depends substantially on cultural background. The

combination of these two elements provides the best experience and satisfaction for

customers. Malaysia is rich enough in both elements to become competitive in creative

economy sectors, but there are many aspects of these sectors that need further study.

8.2.1 Cultural tourism in Malaysia

Over the last two decades, cultural tourism has become the most important tourism activity in

Malaysia. The visitor experience is the most significant element in cultural tourism sector due

to the intangible nature of the products and services. While the term, experience industries is

employed by some authors when describing the cultural tourism sector, cultural tourism is

more extensively utilised in Malaysia, and therefore is the preferred term for this research.

Two Malaysian cities hold the title of UNESCO World Cultural and Heritage site—Malacca and

George Town—and two parks designated UNESCO World Heritage Nature sites—Sabah

Kinabalu Park and Sarawak Niah Cave. The Malaysian tourism industry heavily depends on

their rich multiethnic and religious culture since they gained their independence from the

British in 1957.

But Malaysia’s multiethnicity and religion may also be threatened if careful measures are not

implemented in regards to delicate issues set in play by extremists and some western powers.

Violent racial tension already has occurred in Malaysia in 1961, and the government is taking

all measures to prevent a reoccurrence. Recently, some desperate politicians have used

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ethnic and religion issues to increase their popularity, and to gain global attention and

sympathy. As a result, some western powers are pressuring Malaysia to govern according to

western standards, which shows that some individuals and countries question Malaysia’s

status as a democracy. They endeavour to impose their own order on developing countries,

and believe that western democracy can work in all countries, which fail to acknowledge what

has happened in China, Iraq, and Russia. This has made engendered anti-western sentiment

in many developing countries.

This strong anti-western attitude has swept through most Muslim countries. The image of the

west has been tarnished among the Muslim countries, particularly after the invasions of

Afghanistan and Iraq. Prior to these invasions, other incidents around the world had made

Muslim countries sceptical about the west, whose constant involvement in the internal issues

of other countries has made the developing countries become more protective. Global culture

or western (“Americanised”) culture is not welcomed by many governments in Asia, including

China, India, Malaysia, and Singapore, who initially resisted globalisation. However, they soon

realised globalisation is inevitable. Even when some of these countries try to censor popular

global websites or implement strict controls, there are always ways where people can access

to these websites. Censorship or strict controls in these countries prompt people to become

more technologically creative. Therefore these countries use the different approach of

blending global and local cultures into glocal culture.

The marriage between western and local culture have been applied by many governments in

Asia, including Malaysia. Normally, these countries maintain close relationships to their former

western colonisers. History shows that western countries colonised many countries by

becoming involved with their internal affairs, before slowly invading them. Using this tactic,

Britain colonised Malaysia (then known as Malaya), the Dutch colonised Indonesia, and

France colonised Africa. Hence, numerous historical sites and artefacts in many countries in

Asia and Africa have a background in western colonisation, which some people feel should

not be promoted. These groups feel that promoting colonial history offers a favourable view of

the colonisers. Therefore, any transformation of Malaysian cultural institutions requires care,

sensitivity, and even creativity. While cultural tourism growth in Malaysia is soaring, the

implementation of creativity in Malaysian museums is proceeding at a slow pace.

Any changes Malaysia’s museum sector take place through a time-consuming, complicated

process involving several stages. The majority of these institutions are administered by the

rules and regulations set by state or federal government agencies. Some rigid policies not only

affect the attendance rates, but also create difficulty in implementing change. For example,

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Kedah—the archaeology museum located in the oldest site in the country—is managed by the

state government, while administration and overlapping ministerial issues have left the

Merbok’s archaeological museum abandoned and unattended. Now, due to its poor condition,

the museum cannot be opened to visitors (Kasiman 2010). Malaysian archaeologists are still

finding new items on this site, which dates back to the eighth-century. This example highlights

wasted Malaysian government resources that were invested substantially in developing the

facilities and other infrastructure. Although the country has many tourism attraction products

with significant potential to attract local and international tourists, their main weakness lies in

poor administration and management of creativity. The museum sector in Malaysia needs

continuous support from the government, private companies, and the public, and a major

transformation to become competitive in the tourism industry. As Florida (2005) argues,

creative industries need creative governments, creative leadership, and creative communities

benefit a country’s socio-economic sector. This is what Malaysia market players,

policymakers, and stakeholders fail to keep up.

Compared to the animation sector in Malaysia, the museum sector in Malaysia is moving at a

slow pace, perhaps thirty years behind other developed countries like Canada, the US, and

the UK. Only in the last decade have Malaysian museums shifted their roles to become

modern government or privately-owned. They have begun to adopt some modern applications

such as ICT applications, and introduce new activities to provide memorable experience to

their visitors, particularly younger generations. The combination of traditional culture and ICT

can probably satisfy all types of market, and will attract a significant number of visitors. To give

an optimal maximum experience to visitors, and to make their products and services more

tangible, the museum sector needs significant ICT support. As a cultural institution compared

to other museums in Malaysia, PERZIM raised new and fresh ideas to attract tourists by

combining traditional and ICT elements. Their museums now remain competitive with other

tourism attractions in Malaysia and the region. Although they have close cultural similarities

with other neighbours—including Brunei, Indonesia, and Singapore—PERZIM’s museums

attract significant number of tourists from these countries, and consistently generate unique

and different programs and activities. The Malacca state government is effective in using all of

their resources and advantages.

As well as PERZIM’s proactive development in becoming modern museums, one of the main

reasons for PERZIM museums to receive substantial number of visitors is due to their

strategic location between Kuala Lumpur, Putrajaya, Kuala Lumpur International Airport and

Singapore. Compared to the UNESCO World Heritage Site in Georgetown and the two

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UNESCO World Natural Sites in Sabah Kinabalu Park and Sarawak Niah Cave, little

promotion was available because of their distance from Kuala Lumpur.

Despite this proximity, the substantial numbers of visitors to PERZIM’s museums face

congestion and pollution during the peak times of weekends and public and school holidays.

The city is becoming congested with people and traffic. Also, compared to MoV, the effect of

PERZIM’s changes on their museums is considered minimal. Thus, a more substantial

transformation is needed to ensure competitiveness and sustainability. New features such as

souvenir shops, cafes and libraries should be considered, following the examples of museums

in US. While there are several museums in Malaysia that have shops and cafes (for example,

National Museum and Sarawak Museum), the number are insignificant. The Malaysian

government has to be flexible and offer more autonomy to museum management to plan their

direction, rather than follow strict rules and regulation from multiple government agencies. The

current model limits their creativity in expanding, and to make the best decisions for their

museums, particularly when these museums normally have to report to more than two

stakeholders. The traditional management style of the museum needs to change to make the

museums transform into efficient modern museums. While Malaysian museums have ample

collections of artefacts, they lack imagination and creativity in comparison to the rest of the

world.

8.2.2 Digital content sector in Malaysia

Since the late-1990s, creative industries have been regarded as the new economy model for

most governments in Malaysia. Recently, however, the relevance of this concept has been

called into question because of confusion surrounding the concept and its many definitions. In

countries such as Australia, New Zealand, and the UK, the creative industries are defined

differently, without including culture, particularly cultural tourism. With rapid changes in

technology, and recent global trend in creative industries development, however, these

countries have implemented major changes. More key players are started to include culture

and cultural tourism in their creative industries definition over the past decade (refer to

Cunningham 2002; Hartley 2005). There is even movement in UK to use the term creative

tourism (see Roadhouse 2006; Smith 2007), which acknowledges that culture can play a

major role in generating income, in particular by attracting international tourists. However,

since developing their own creative industries, most developing countries like Malaysia

consider culture and part of tourism activities as part of creative sectors. Developing countries

supplement their own local cultural elements with creative industries adapted from models

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produced by developed countries. Thus, the development issues that they now facing may be

different to those faced by developed countries.

This is a competitive sector and products are easily to imitate. Although the first case study

highlights claims that LPC is involved in creative industries through animation, franchising and

merchandising, what they produce is not wholly original. This is secondary creativity because

creatives had produced similar products in Malaysia as early as 1978 (Mahamood 2001, 131;

Muthalib 2007). Nevertheless, animation products from Japan and the US are perhaps not

entirely original, because their products are inspired by other sources. Ironically, among the

earliest animated film—German animator, Lotte Reiniger’s The Adventures of Prince Achmed

(1926)—was inspired by Indonesian and Malaysian shadow puppet plays (Citizendia 2011).

The creation of purely original products is possibly unachievable, since creativity itself

normally relates to culture. While Malaysian animation products may not be examples of first-

class creativity as Keane (2010) argues, almost no product can fit into this category. This

argument also applies to human culture where similarities can be seen from one community to

the other.

There are always markets for traditional and modern products and services. In the music

industry, the singers who sell millions of albums throughout the world are not necessarily

those who have a good voice, but rather produce good songs crafted with the latest

technology and marketed effectively. Singers like Lady Gaga and Justin Bieber are two

examples of singers who may not have the best voice, but have managed to make a

significant impact on the music industry. These singers are imaginative in using modern

technology to produce their songs and to improve their voice. The same applies to films like

Avatar, which had a huge impact on the global film market by using advanced technology.

While not as effective in terms of acting and storytelling, these films have success with certain

audiences, particularly younger generation that appreciate technological innovation.

Developed countries have advanced technological facilities compared to developing nations

like Malaysia. One major problem Malaysia faces its Internet speed connection. Malaysia

Today (2009) identifies the country as having one of the slowest internet speeds in the world,

although in comparison to its regional neighbours, Malaysia’s position is fair. This problem has

discouraged companies from Australia and the US from investing in Malaysia. In recognising

this problem, the Malaysian government is looking seriously to upgrade the country’s Internet

infrastructure. One step is to investigate options to rent a direct line of internet connection to

Malaysia rather than stopping over in a number of countries (Azharuddin 2009). MDeC’s

multiple roles include assisting government and private companies in producing with the best

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ICT solutions, actively marketing Malaysian products and services to the world, and

encouraging collaboration between local and international companies. MDeC brought LCP to

several major world events, and help them build new networks with companies from China,

and South Korea. MDeC also helped LCP market their animation series and 3D film to several

countries around Asia. This strategy is not without issues however.

Malaysia’s multiethnic culture has seen the domination of Malay films provoke argument

particularly by non-Malays about whether the industry is presenting the country fairly to the

world (Hoo 2006). This issue must be addressed carefully by the government because of its

sensitive nature. Other minorities in Malaysia like the Chinese and Indians already have

options to watch Chinese or Indian films produced from China and India. Limited buying power

in Malaysia and competition from Chinese and Indian films mean that it may not be cost

effective for Malaysian Chinese and Indians to produce their own films. Also, there are many

Malaysian Chinese and Indian producers producing television series for local television

channels. The main concern in the event that the Malaysian film sector is controlled by

minority ethnics—Malaysian Chinese or Indian—is whether the films will represent Malaysia

faithfully. Therefore, Malaysia’s film and music sectors face a significant dilemma where their

markets are small and segregated by the ethnic minorities. This creates difficulties for uniting

the Malaysian people, and it is not surprising that even though they were born and raised in

the country most Chinese and Indian in Malaysia cannot effectively speak Malay. Some of

Malaysian people are having identity crisis, and consequently opt for the comfort of western

culture.

The question of national identity arose in Malaysian animation because of the government’s

directive and public opinion that local cartoons should be of high quality and contain eastern

cultural values, mainly to counter the negative values contained in foreign animation. In order

to project didactic values and moral lessons, local animation producers have turned to

traditional literature for inspiration, and have opted for non-violent visual presentations. The

intention of many governmental policies, including the National Culture Policy, is to achieve

racial harmony, therefore characters in Malaysian animation are often multiracial, representing

the three major ethnic groups of Malays, Chinese and Indians. Apart from the depiction of

rural scenes with Malay houses on stilts amid huge rice fields, urban landscapes that feature

recognisable buildings and the LRT system in Kuala Lumpur act as symbols of a progressive

country. But local companies who do not want to follow Malaysian government rules and

regulations have to find their own financial resources. For example, Igloo Digital Arts—a

pioneer of 3D animation technique and computer games in Malaysia—finance their projects

through outsourcing. Their products have limited Malaysian cultural features since they are

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catering more for the global market (Fig. 8.2.2). As a result, their name is less popular than

LCP in Malaysia.

 

Figure 8.2.2: Computer game character by Igloo Digital Arts (Igloo Digital Arts 2011)

Even though promising local and international markets may help boost the production of

domestic animation, many improvements must be made by local animators and producers if

they are to succeed internationally. Apart from striving for technical finesse, they have to solve

cultural dilemmas in the creation of characters and stories, for it is indeed a serious challenge

to animate for an international market while maintaining a Malaysian identity, and still adhere

to government directives. Popular Malaysian cartoonist-turned-animator, Khalid (2001, 154)

faced cultural differences when his Kampung Boy characters was adapted to television, and

when he collaborated with companies in the US and the Philippines. There is an obvious

influence of traditional literature in Malaysian culture, as many animated television series and

films were inspired by folktales and written literature (Mahmood 2001, 131). Malaysian

animated cartoons also deal with contemporary subjects, incorporating renditions of daily life.

On the other hand, the influence of foreign animation manifests itself through the use of the

superhero characters and plots, as well as through the adaptation of formalistic features and

characters. All of these factors contribute to the form and content of Malaysian animation, in

the process lending it a Malaysian identity.

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8.2.3 Other important issues

This project also identified a number of other important issues relating to creative economy

development in Malaysia.

Piracy and copyright problems

Piracy and copyright issues were mentioned briefly in earlier chapters. The UNCTAD Report

(2008) identifies piracy and copyright as the significant problems faced by developing

countries in terms of their creative economy. Piracy remains a major threat for many

developing and developed countries. Copyright theft lost the US film industry USD$3-billion in

2002, and the rapid development of IT makes this problem even more challenging to control

(Yar 2005). Figures from International Intellectual Property Alliance (IIPA) identify piracy levels

exceeded more than 90 per cent in developing nations including China, Ukraine, Indonesia,

Columbia, Kazakhstan, Lithuania, Pakistan, Kuwait, Romania and Bolivia, and industry

stakeholders regard this phenomenon as an “epidemic”.

In Malaysia every year, key sectors such as music, film, and publication lost million of ringgit

to piracy. The more popular the music, film or publication, the more piracy occurred for these

products. Currently, the popular Malaysian animated film, Geng: Pengembaraan Bermula—

which earned six million ringgit at the box office—is facing piracy problems. Pirate companies

not only reproduced the DVD, but also copied the original packaging, including the hologram

sticker from the Ministry of Domestic Trade, Co-operatives and Consumerism (MDTC). This

sticker is supposed to difficult to forge, and serves as MDTC’s endorsement of an original

product. This alone demonstrates that pirate companies themselves are becoming creative

with IT. According to the Managing Director of LCP, the pirate version of the DVD is on sale

even at authorised shops all around the country (Mahmud 2010).

This is not a new problem in Malaysia. The music sector in Malaysia has waged a long battle

with piracy. While the Malaysia government has tried to improve their policy and enforcement

on this issue, piracy is still the major challenge for the country. Joint efforts by the local

enforcement authorities, including the police force, MDTC and customs are occasionally

conducted, and in 2008, Malaysia joined WIPO to protect the sectors directly involved in IP

products and services to strengthen their creative industries. But the subjectivity and

intangible nature of creative economy products and services mean that it is hard to control

copyright and patenting, and to register IP. This problem also relates to the weaknesses of

implementation and enforcement by Malaysian local authority.

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Implementation and Enforcement weaknesses

The local authorities such as the police and customs play a significant role in enforcing

government policies. At the same time, private companies must also work together with the

government to smooth implementation and enforcement. The public can play an active role

too particularly in reporting any misconduct, and not supporting the illegal activities. If the

government, private and public work together, they will become stronger in exchanging useful

information, and will be able to stop the crime from happening. The Malaysian government

faced criticism for not being transparent enough with their decisions, particularly in the

tendering process for granting megaprojects to private companies. In addition, government

staff members are accused regularly by the public of being passive and unmotivated.

However, this stigma is slowly changing as improvements in ICT are implemented in Malaysia.

Major transformation has been apparent in government services over the past five years.

Today, Malaysia has many consumer NGOs protecting local consumers, and many

associations exist to protect manufacturers and producers. Since the 1990s, policy

implementation and enforcement by Malaysian government agencies has improved. ICT

growth has made policies much easier to implement and enforce, and the government

occasionally offers incentives and salary increments to government staff and enforcement

agencies to discourage misconduct like accepting bribes to improve their lifestyle.

Lack of funding

Funding is one of the major problems of developing nations in developing new sectors like

creative economy. Developing nations face a dilemma about whether to promote their creative

activities or other important traditional sectors such as agriculture and manufacturing for the

country’s socio-economy growth. Therefore, most developing countries use cultural tourism as

an important resource to develop their creative economy, which requires less financial

assistance, since culture is an existing natural resource, whereas other sectors may need

more funding to build facilities and infrastructures. The Malaysian government has allocated

significant funds for the development of creative sectors, but compared to developed countries

the facilities and infrastructure of the creative economy in Malaysia still need major

improvement.

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Censorship

Most Malaysians value their culture, especially in the face of western and globalisation

influences. This is evident in the significant response from audiences of music and television

programs with strong Islamic influences. All local and imported content products marketed in

Malaysia need to pass the censorship board. Obscene lyrics, materials, and scenes are

censored or banned in Malaysian market. For example, almost daily the local newspapers

feature stories about technological advancements, and the government's efforts to make

Malaysia an international centre for multimedia development and distribution. Yet they are

also filled with editorial comments and quotations from government officials cautioning the

populace about the importance of safeguarding the moral values of their society. While the

Malaysian censorship board is less strict than those in other Muslim countries like Iran, Oman

and Saudi Arabia, products from Iran facing even stricter rules and regulation at home are

more successful in the market compared to those subject to Malaysia’s less strict rules and

regulation. The rapid development of global ICT means that censorship can only applied on

electronic and printing media, while content on the Internet is rarely subject to censorship.

Some non-Muslim (and some Muslim) creatives in Malaysia feel this censorship rules and

regulation impede their creativity. While Malaysian culture openly recognises their major

religions—Muslim, Buddhist, and Hindu—and ethnic divisions—Malay, Chinese and Indian—

some with liberal beliefs may find it hard to practise their creativity. This group of people

regularly criticise the strict rules and regulation imposed by the Malaysian government. Some

practise their creativity outside Malaysia, while others protest using other means including

Youtube and Facebook.

8.2.4 Malaysia’s position in the global creative economy

While developed country definitions of creative economy may differ from those of developing

nations, all agree that culture and creative industries are significant elements within the

concept of a creative economy. The Malaysian definition of a creative economy is similar to

other developing countries, which use the UNCTAD definition, and also with some countries in

Europe, while Australia, New Zealand lean towards the definition of creative industries in used

in the UK. Applying the model of domains of creativity described by Mitchell et al. (2003),

Malaysia’s creative economy development since establishing the MSC has involved all four

domains. This is based on Malaysia’s recognition that to become a developed country they

have to develop their creative sectors like other developed countries.

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This research argues that Malaysia and other developing countries do not have to follow the

developed countries model, because what works for one country may not work for another.

However, the models used by developed countries can influence the creation of new models

in developing countries. Hence, when most developing countries included cultural tourism and

heritage as part of their creative economy, they are playing to their advantages and strengths.

While some scholars may not be happy with the inclusion of cultural tourism and heritage in

creative economy sectors, it is not entirely wrong to do so. With more sectors promoting

multidiscipline research and work, this inclusion is timely. However, there is little research on

the connection between tourism, ICT, and the creative sector. In tourism alone in 2009, a

special issue of the top-tiered journal, Tourism Analysis focused on the close link between

tourism and technology. This idea was taken from the first Annual Conference of the Travel

and Tourism Research Association (TTRA) in Europe, and was based on the realisation that

tourism and technology constitute the two main economic drivers in Europe (Dimanche & Jolly

2009). The journal published six papers that examined the close relationship between mobility,

technology, and tourism from their unique perspectives.

Moreover, the key player in the global creative economy is the private sector, which is

primarily comprised of SMEs. The 2001 World Bank Review establishes the significant role of

SMEs as a core element in fostering economic growth, employment, and poverty alleviation.

In developed and developing countries, the SMEs sector is identified as the foundation for

economic growth. Although there are differences within SMEs groupings in the literature, there

are many similarities: these companies are considered flexible enterprises (Levy & Powell

1998) they are generally constrained by availability of resources (Fariselli, Oughton, Picory &

Sugden 1999; Swartz & Boaden 1997); and they have less access to technological

information than larger organisations (De Berranger & Meldrum 2000). There are many global

problems identified with SMEs companies, hence, they tend to harbour a distrust of

government initiatives (Harrer, Weijo & Hatrup 1988; Bannock 1992; Yap, Thong & Raman

1994). All of these problems happen because of unclear aims and objectives, lack of support,

poor value for money, and lack of understanding of the nature of, and constraints experienced

by small businesses (De Berranger & Meldrum 2000).

Malaysia SMEs face similar problems, and the government assists them by giving financial,

training and other support. In creative sectors, the government established the MDeC, among

others, to look after the SMEs companies involved in creative sectors. Over the past fifteen

years, the growth of SMEs companies involved in content products and services increased

significantly. Some began by imitating popular content products like animation and anime from

Japan, and film and music from the US; this is a global rather than local phenomenon. For

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example, rap music now belongs not only to African-Americans; almost all countries in the

world have their own rap groups. Youtube offers evidence of rap groups in Palestine, China,

and India. The creative economies of developed countries in the region—including the

creatively advanced Japan, Singapore, South Korea and Taiwan—also began through

imitation. Globalisation now means that one culture does not exclusively belong to one ethic

group. Mixed culture can be seen and felt all over the world, especially in large metropolises

like Dubai, Jakarta, London, Kuala Lumpur, New York, Singapore, and Tokyo.

8.3 Recommendations

From the discussion made in this chapter, I would like to make recommendations relating to

this topic. These recommendations hopefully will be able to assist the stakeholders and other

researchers to strengthen and have better understanding on the concept of creative economy,

and inspire future research relating to this under-researched topic.

Government and Private sectors 

The Malaysian government should become proactive in supporting the development of the

creative economy by producing policies that are more transparent and less political.

Continuous support should be given for the development of this new sector and more

dialogue, seminars, and workshop are needed to raise public awareness. Proper training and

exposure for government and private staff will benefit this sector.

Rather than work independently, private and government organisations need to collaborate in

developing this sector to achieve their plans at a faster pace. The stronger their connection is,

the faster this new sector will grow. To evolve effectively, a newly implemented concept like

the creative economy requires a close relationship between market players and government

stakeholders. This closeness allows each party to understand each other better, and they can

plan the future of the creative economy together, and devise a quality product and service that

is attractive to the local market. The full support of locals contributes to a strong foundation for

the products to go international. However, local products must be competitive and at par with

other products in the market.

Thus, it is important for Malaysia to have highly qualified human resources. At the moment,

the country is having difficulties to retaining their professionals because of the competitive

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global job market, particularly in developed countries. The other main reason Malaysia tends

to lose its professional human resource is because of strict citizenship rules and regulation.

Unlike countries like Australia, India, and the UK, Malaysia does not allow their citizen to have

dual citizenship. Thus, some Malaysian professionals—particularly those who have successful

career outside the country—have relinquished their Malaysian citizenship. Meanwhile,

professionals from Australia, India and the UK maintain their dual citizenship and serve both

countries. This creates a drain of highly skilled human resources from Malaysia to other

countries. Therefore, the government needs to re-examine its policies on this matter.

Public 

Malaysians often can be the hardest people to predict and satisfy. They are known to be

critical of local products, but tend to have high respect for international products, particularly

from the developed countries (refer Muthalib 2007). Local animation still lacks an adult

audience, as the medium is still seen as catering only to children. Animation for adults is still

far odd, as the general consensus is that Malaysian animators are still not capable of

producing acceptable films. Even with the expertise, there currently is no local market (Khalid

2001; Mahamood 2001; Muthalib 2007). Thus, the Malaysian public needs to show faith in,

and support their local products and services. Like Indonesian and Indian viewers, Malaysians

should be more patriotic and embrace their local products and services. Public support will

help this sector to expand significantly. Malaysian trust of local products will help other

markets to trust the products.

8.3.1 Recommendations for future researchers

The novelty and lack of understanding of the Malaysian creative economy exposes many

areas that still need further attention. Future researchers should examine issues surrounding

this topic, perhaps from different points of view, and consulting different people, including

policymakers and the public. This will allow more comparisons and can provide useful

knowledge in the literature. Different methodology approaches should also be applied to

obtain robust data relating to this topic, and the mixed method is highly recommended in order

to gain quality research findings. Future research could also work to construct definitive

models and theory regarding the growth of creative economies in developing countries.

Since cultures play a significant role in Malaysia, solid research into Malaysian culture and its

relation to creative sectors—for example, the acquisition of technical skills from the west and

the region; a clear vision of the messages conveyed in content; and the awareness that

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animation, like cartooning, is a legitimate artistic field—needs to be approached seriously.

Feedback from viewers and visitors should also be studied to understand the market better.

Established models or theories from other fields like economy, marketing, and management

may be tested in order to build a strong theory for the concept of the creative economy.

8.4 Study Limitations

Time constraints dictated that this study could only conduct two case studies in Malaysia.

Apart from personal interviews, other research methods were not possible because they

require longer periods of data collection. Comparison between the two organisations in

Malaysia with two case studies in Hong Kong and Canada could only be done through

electronic data collection, therefore secondary data was examined. Also, the numbers of

respondents were small, and only organisation staff members were interviewed. Hence, the

opinions visitors, viewers, and other stakeholders were not included in this study. Future

research should include these groups, and other local competitors, including George Town,

Penang and Sarawak Museum, and other international museums to gather more reliable and

robust data.

Thus the major problem in doing this topic was obtaining reliable data, particularly about the

Malaysian animation and cultural tourism sectors. Despite this, the case study approach in this

research obtained a rich data set from the organisations involved. Data relating to this topic is

significantly limited in the literature, and to date there are no strong academic discourses.

The limited data from these case studies restricted this project’s ability to generalise about

wider trends or build new theories. The findings of this thesis are based on the experience of

two organisations, and offer greater knowledge about the development of a creative economy

in Malaysia. This study will add to the significant gap existing in regards to this topic in

Malaysia and other developing countries. As one of the first research studies examining the

issues of the creative economy in Malaysia, this research makes a significant contribution to

an emerging field of academic enquiry.

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Appendix 1: Lat: The Kampung Boy

Figure: The Kampung Boy

(Khalid 1979)

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Appendix 2: Malaysia Content Industry (Entertainment) Production

Malaysia Local Film Production Statistics 2003-2010

Year No. of Films Gross Ticket Collection

(RM/million)

Production Coast

(RM/million)

2003 16 23.4 23.78

2004 22 27.2 43.24

2005 23 26.7 29.77

2006 28 29.7 38.89

2007 28 30.3 37.23

2008 28 45.9 N/A

2009 27 50.8 40.51

2010 38 75.9 46.61

(National Film Development Corporation Malaysia [FINAS] 2011)

Malaysia Local Commercial Advertisement Production Statistics 2004-2010

Year Total of Producers Production Coast (RM/million)

2004 89 1,401.00

2005 97 1,560.00

2006 N/A 1,547.00

2007 114 1,677.00

2008 124 1,558.00

2009 117 1,723.00

2010 144 1,801.00

(FINAS 2011)

Malaysia Local Drama Production Statistics 2003-2010

Year Total of Producers Total of Title Production Coast

(RM/million)

2003 62 80 25.56

2004 76 137 40.02

2005 88 196 40.21

2006 78 160 45.35

2007 81 182 54.72

2008 91 212 69.98

2009 95 213 74.05

2010 118 269 79.55

(FINAS 2011)

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Appendix 3: Interview questions for Les’Copaque Production Sdn. Bhd. (LCP) and Malacca Museum Corporation (PERZIM)

Question to be asked to Les’Copaque Production (LCP) Sdn. Bhd.

A. Questions for LCP staff.

1. Please introduce yourself and your position at LCP. 2. How long have you been working with LCP? 3. Did you regularly contribute creative ideas to the overall Cyberjaya brand concept

(world’s intelligent city)? 4. What kind of experienced is best related to the creative process here; (prompt, for

example: face-to-face conversation and informal meetings, email, brainstorming, skills upgrading courses, seminars with international speakers)?

5. Does your job entail a high degree of creative interaction with colleagues? 6. Is there a strong sense of belonging and identification with the vision of Cyberjaya? 7. Does the reputation of Cyberjaya’s image will have benefits for your own work? 8. Does Cyberjaya have institutional bodies that provide mentoring and market

development advice? 9. To what extent is Malaysian culture being adapted by you in doing your work in this

company? 10. What’s your future hope for creative sectors in Malaysia?

Question to be asked Malacca Museum Corporation

B. With museums’ staff.

1. Please introduce yourself and your position at this museum. 2. How long have you been working with this museum or PERZIM? 3. Did you regularly contribute ideas to the overall brand concept of this museum? 4. What kind of experienced is best related to the experience process here; (prompt, for

example: face-to-face conversation and informal meetings, email, brainstorming, skills upgrading courses, seminars with international speakers)?

5. Does your job entail a high degree or creative interaction with colleagues? 6. Is there a strong sense of belonging and identification with the vision of the museum? 7. Does the success of the museum or PERZIM image have benefits for your own work? 8. To what extent is Malaysian culture being adapted by you in doing your work in this

company? 9. What’s your future hope for museum sector in Malaysia?

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Appendix 4: Interview questions for Les’Copaque Production Sdn. Bhd. (LCP) and Malacca Museum Corporation (PERZIM) Management

Question to be asked to Les’Copaque Production (LCP) Sdn. Bhd.

A. Questions for LCP decision maker.

1. Why does LCP operating in Shah Alam and not in Cyberjaya the capital city for MSC? 2. What are the advantages of locating in Shah Alam compared to Cyberjaya? 3. What are the disadvantages of locating in Shah Alam compared to Cyberjaya? 4. Can you discuss the more organic environment in Shah Alam compared to the more

planned environment of Cyberjaya? RQ 2 5. Can you discuss your experience in establishing contacts and in sharing knowledge

among the organisations? RQ 2&3 6. Can you give your opinion on the attitude and values of those working in Cyberjaya city

towards the whole development? RQ 2 7. How does Cyberjaya compete with other countries in the Asian region in positioning

herself? RQ 3 8. Has Shah Alam meet the expectations from your company? 9. To what extent is Malaysian culture being utilised in your company’s products and

services? RQ 1 10. Does the idea of creative industries mean much to people working here? RQ 2

Question to be asked Malacca Museum Corporation (PERZIM)

B. Questions for PERZIM’s curator.

1. Please explain about the formation of this museum and the core products and services offered to visitors.

2. As the curator, are you fully autonomous or do you have to consult with government officials?

3. Why did this museum decide to add the new feature to the museum (Sleepover @ Museum)?

4. How is the response from the visitors so far? 5. How is this museum trying to position itself; e.g. is it outward looking, progressive,

does it look to be more interactive in the future? 6. What are the creative and technology elements this museum plans to introduce? 7. What do you think of the state of ‘museum culture’ in Malaysia? 8. What are the future plans in combining culture, creativity and technology to better

market this museum? 9. Does the museum or PERZIM integrate well with the cultural tourism sector; if so how?

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Appendix 5: The “Sleepover @ the Museum Programme” at Malacca Maritime Museum Newspaper Article

Friday January 30, 2009

Chance to sleep in replica of Portuguese

galleon By ALLISON LAI

MALACCA: The Malacca Museums Corporation (Perzim) has come up with a novel way of

promoting its Maritime Museum as a tourist attraction by offering a sleepover for visitors.

Perzim general manager Khamis Abas said the Sleepover@The Museum package would be

launched in mid February.

“It offers a chance to spend a night in the replica of the famous 15th Century Portuguese galleon

Flo De Lama or Flower of the Sea at the museum in Jalan Merdeka, next to Malacca River,” he

said when met during the launch of a trial run of the package recently.

Figure: Night adventure: Participants in the Sleepover@ the Museum package posing in

the galleon at the Maritime Museum in Malacca recently.

Perzim will promote the package together with Naza Hotel Melaka and Malacca River and Coastal Development Corporation.

Between 20 and 40 people are targeted per day for the sleepover that begins before sunset with a cruise on Malacca River from Taman Rempah to Padang Nyiru.

The group will be taken on a guided river walk in the state’s core heritage zone before proceeding to the museum to spend the night.

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“They will also be given a tour of the maritime museum, a slide presentation and a question and answer session before going to bed at 11pm,” he said, adding that they would return to their hotels the following morning.

The idea was mooted recently and angled as an edutainment for students and families, he said.

“We wanted to try the 16th Century Dutch Stadhuys complex, but some suggested the ship as they thought the Stadhuys would be spooky,” he quipped.

Well-known tour guide Shaukani Abbas, 51, said the sleepover was an interesting way of introducing Malacca to visitors.

He said the response had been encouraging, especially from children accompanying their parents.

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Appendix 6: QUT Ethical Clearance Approval

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Appendix 7: Cyberjaya the Capital City for Malaysia MSC Project Map

Figure: Cyberjaya – the Capital City for Malaysia MSC Project Map

(MSC 2009)

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Appendix 8: Cyberport the ICT city for Hong Kong

Figure: Cyberport the ICT city for Hong Kong

(Cyberport 2010)

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Appendix 9: Les’Copaque Content Products – DVD and VCD Series

DVD/VCD Titles Year Title episode

Upin & Ipin Vol. 1

2007

Esok Puasa (Fasting starts tomorrow) Dugaan (Obstacles) Nikmat (Advantages) Terawih (Tarawikh prayer) Esok Raya (Eid is tomorrow) Hari Raya (Eid ul fitr)

Upin & Ipin: Setahun Kemudian Vol. 2

2008

Tadika (Kindergarten) Anak Bulan (Sighting of the moon) Adat (Culture) Tamak (Greedy) Lailatul Qadr (Lailatul Qadr Night) Kisah & Tauladan (Good Behaviour)

Upin & Ipin: Setahun Kemudian Vol. 3

2008 Sayang Kak Ros (Beloved Sister Ros) Ketupat (Ketupat – special dish during Eid celebration in Malaysia) Zakat Fitrah (Zakat Fitrah – once a year donation for needy people) Malam Syahdu (Memorable Night) Pagi Raya (Eid Morning) Berkat (Blessed)

Upin & Ipin dan Kawan-Kawan Vol. 4

2009 Air Kolah, Air Laut (Bhg 1&2) (Well Water, Sea Water – Part 1&2) Berkebun (Bhg 1&2) (Gardening – Part 1&2)

Upin & Ipin dan Kawan-Kawan Vol. 5

2009 Basikal Baru (Bhg 1&2) (New Bicycle – Part 1&2) Gosok Jangan Tak Gosok (Bhg 1&2) (Keep on Caressing – Part 1&2)

Upin & Ipin dan Kawan-Kawan Vol. 6

2009 Gosok Jangan Tak Gosok (Bhg 3) (Keep on Caressing – Part 3) Kisah Dua Malam (Bhg 1&2) (The story of two nights – part 1&2) Kembara ke Pulau Harta Karun (Bhg 1,2,3) (The Adventure to Treasure Island – Part 1,2,3)

(Upin and Ipin 2010)

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Appendix 10: PERZIM Museums Listing until 2011

STADTHUYS MUSEUMS COMPLEX

Historic and Ethnography Museum 

Admiral Cheng Ho Gallery 

Literature Museum 

Democratic Government Museum 

Governor Museum 

   

MARITIME MUSEUMS COMPLEX

Maritime Museum Phase I 

Maritime Museum Phase II 

Malaysian Royal Navy Museum 

Ex‐KD Sri Terengganu Warship 

 

OTHER MUSEUMS

Malacca Sultanate Palace 

Malacca Islamic Museum 

Malaysia Youth Museum 

PERZIM Art Gallery 

People Museum 

Enduring Beauty Museum 

Kites Gallery 

Malacca Stamp Museum 

World Historic Malay Museum 

 

DISTRIC MUSEUM

Aborigines Museum, Ayer Keroh 

Museum of Custom and Ritual, Alor Gajah 

Agricultural Museum, Jasin 

PERZIM (2010)

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Appendix 11: Museum of Vancouver new vision and strategic plan for 2008-2011

Please refer website http://www.museumofvancouver.ca/overview.php

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Appendix 12: Film Tourism Impact on Popular Locations

Film or TV Series Location Impact on Visitor Numbers or Tourist Revenue

Braveheart Wallace Monument, Scotland 300% increase in visitors year after releaseHeartbeat Goathland, North Yorkshire, England Three times the number of normal visitors in 1991 Deliverance Rayburn County, Georgia 20,000 film tourists a year Gross revenues $2 to 3m Dances with Wolves Fort Hayes, Kansas 25% increase compared with 7% for previous 4 years Close Encounters of the Third Kind Devils Tower, Wyoming 75% increase in 1975

20% visit now because of the film Thelma and Louise Arches National Monument in Moab, Utah 19.1% increase in 1991 Field of Dreams Iowa 35,000 visits in 1991 Steady increase every year Dallas Southfork Ranch, Dallas 500,000 visitors per year The Lord of the Rings New Zealand 10% increase every year 1998 to 2003 from UK Steel Magnolias Louisiana 48% increase year after release Last of the Mohicans Chimney Rock Park, North Carolina 25% increase year after release The Fugitive Dillsboro, North Carolina 11% increase year after release Little Women Orchard House, Concord, Massachusetts 65% increase year after release Bull Durham Durham, North Carolina 25% increase in attendance year after release Harry Potter Various locations in U.K. All locations saw an increase of 50% or more Mission: Impossible 2 National parks in Sydney 200% increase in 2000 Gorillas in the Mist Rwanda 20% increase in 1998 Crocodile Dundee Australia 20.5% increase in U.S. visitors 1981 to 1988 The Beach Thailand 22% increase in youth market in 2000 All Creatures Great and Small Yorkshire Dales Generated £5m for Yorkshire Dales To the Manor Born Cricket St Thomas, Leisure Park,

England 37% increase between 1978 to 1980

Middlemarch Stamford, Lincolnshire, England 27% increase in 1994 Four Weddings and a Funeral The Crown Hotel, Amersham, England Fully booked for at least 3 years Mrs. Brown Osborne House, Isle of Wight, U.K. 25% increase Notting Hill Kenwood House, England 10% increase in 1 month Saving Private Ryan Normandy, France 40% increase in American tourists Sense and Sensibility Saltram House, England 39% increase Pride and Prejudice Lyme Park in Cheshire, UK 150% increase in visitors Cheers Location in Boston $7m in unpaid promotional advertising each year

Miami Vice Miami 150% increase in German visitors 1985 to 1988 Forrest Gump Savannah, Georgia 7% increase in tourism Troy Canakkale, Turkey 73% increase in tourism Captain Corelli’s Cephalonia Mandolin Greece 50% increase over 3 years

(Riley & van Doren 1992; Tooke & Baker 1996; Grihault 2003; Croy & Walker 2003; Cousins & Anderek 1993; Busby, Brunt & Lund 2003; Riley, Baker, & van Doren 1998)

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Appendix 13: KRU Multilingual Epic Movie 2011: The Malay Chronicle: Bloodliners

Figure: KRU Multilingual Epic Movie 2011: The Malay Chronicle: Bloodliners

(KRU 2010)

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Appendix 14: Number of Visitors to Malacca Museum Corporation (PERZIM) Museums for the Year 2000-2010

Year M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 Total2000 105,032 96,407 3,004 33,691 232,687 6,677 Not open Not

open Not open Not open 477,538

2001 60,459 (closed August-December)

125,997 3,385 41,366 258,980 4,109 3,221 14,939 Not open Not open 512,456

2002 64,284 (reopen in May)

41,458 1,833 Closed 234,331 5,293 321 (closed Jul-Dec)

18,780 9,762 3,086 379,148

2003 72,080 13,753 (until April)

2,716 33,586 185,188 5,144 1,314 10,891 2,449(until April)

734(until April)

327,825

2004 73,978 85,514 (M2+M9+M10)

2,367 388,837 211,575 3,404 990 6,517 From 2004 combine with M2

From 2004 combine with M2

424,352

2005 75,968 93,898 (M2+M9+M10)

2,059 27,950 219,407 2,472 783 7,705 M9=Chitty Museum 1,342

-

431,584

2006 82,394 89,754 (M2+M9+M10)

825 (N/A Mar-Sep)

42,213 226,824 1,198 711 8,182 766 M10=Stem and DMDI Museum 3,077 (operating in July)

455,544

2007 82,394 89,754 825 (N/A Mar-Sep)

42,213 226,824 1,198 711 8,182 766 3,077 455,940

2008 92,277 110,046 2,313 33,383 158,811 611 3086 8,829 736 11,374 421,4662009 95,134 105,396 2,899 34,005 308,859 630 1,556 9,752 752 20,415 579,3982010 101,866 124,410 2,810 32,338 367,522 468 4,581 11,109 1,857 26,044 571,139M1=Malacca Sultanate Palace; M2=Historical Museum; M3=Youth Museum; M4=People’s Museum; M5=Maritime Museum; M6=Indigenous People Museum; M7=Alor Gajah Museum; M8=Islamic Museum; M9=Governor Museum; M10=Democracy Leaders Museum

(PERZIM 2010)