Speech Title : ACTING DIRECTOR OF INFORMATION TECHNOLOGY AND 
STATE STORES DEPARTMENT CUM SECRETARY OF THE BRUNEI DARUSSALAM INFORMATION TECHNOLOGY COUNCIL SPEECH TEXT 
First Meeting of the Brunei Darussalam Information Technology (BIT) Council
Date : 8th January 2001
Venue : 1st Floor, Ministry of Communications Building
Brunei Darussalam

 

Bismillahir Rahmannir Rahim. Alhamdullilah hir Rabbi Alamiin. Segala pujian bagi Allah S.W.T. Selawat dan salam keatas Nabi Muhammad s.a.w. dan  kerabat-kerabat dan pengikut-pengikut Baginda hingga keakhir zaman. Semoga kita diberkati manaafat dari asbab Mesyuarat Pertama Majlis Teknologi Maklumat Kebangsaan berlangsung pada pagi ini. Amiin Ya Rabbal Alamiin.

 

Yang Dimuliakan Pehin Orang Kaya Amar Pahlawan Dato Seri Setia Awang Haji Zakaria bin Dato Mahawangsa Haji Sulaiman, Menteri Perhubongan, Pengerusi Majlis Teknologi Maklumat Kebangsaan.

 

Yang Mulia, Dato Seri Paduka Haji Selamat Munap, Timbalan Menteri Kewangan, Timbalan Pengerusi Majlis Teknologi Maklumat Kebangsaan.

 

Yang Mulia Setiausaha Tetap, Setiausaha Tetap, Pegawai Kanan dan ahli-ahli Majlis Teknologi Maklumat Kebangsaan daripada Sektor Swasta.

 

Assalamualaikum warahmatullahi wabarakatuh and salam sejahtera.

First of all, I would like to express thanks to the Chairman, Yang Berhormat the Minister of Communications for enabling us all to be present here to deliberate the future of ICT in Brunei Darusssalam.  May I also express my sincere appreciation to the Deputy Chairman, Yang Mulia Dato Seri Paduka Haji Selamat bin Munap, the Deputy Finance Minister for providing the strategic foresight for the development of IT in Brunei Darussalam and for a significant thrust that he has given to motivate the IT department to move forward in this nation-wide initiative.  Congratulations to the Permanent Secretaries, the members from the Private Sectors, the academia and the NGO for achieving the milestone of collaboration for the future ICT development which begins from today.  May I also extend appreciation to those who have initiated and involved in the past to ensure the momentum of the Strategic IT Plan,  IT 2000 and Beyond continues up to this day.

 

 

GDP GROWTH VERSUS FISCAL DRAG

 Sometimes ago the Deputy Chairman once mentioned that the Es, the Is and the Ks are to solve problems whereby the greatest problem is the survival of the "post-oil". There are three main fundamentals to "the post-oil" survival of Brunei Darussalam.

 These are:

§         Increasing productivity and sustaining steady economic growth.

§         Improving efficiency in line with the demand for globalization and global competitiveness.

§         Reducing fiscal expenditure through timely corporatization and privatization.

 

How can we increase productivity and reduce fiscal expenditure at the same time? The current practice to meet lower fiscal target generally leads to reduction in productivity. Obviously then it is impossible to increase GDP growth beyond the current levels of 3 to 4 per cent as against an implied growth of around 6 per cent. Based on the experience of other countries such as Australia, Singapore, Malaysia and the UK; increase in productivity and achievement of desired fiscal targets depend on the effective use of Information Technology.  The problem of how to make IT effective so that an increase in productivity or GDP growth along with achieving the fiscal targets, has been examined in the national IT Strategic Plan Summary report [which are in front of you today].

This report highlights the positive impact of IT in terms of:

  • productivity increase,

  • substantial reduction in unit cost of labour or microeconomic costs,   

  • significant reduction in transaction costs,

  • significant reduction in agency costs.

 

IT LEAD SAVINGS

It is important to note that IT diffused or IT induced fiscal savings can amount to a 30 per cent savings in the cost of providing current level of services. The report also highlights an investment of 1.5 per cent of GDP over 3 years will enhance GDP almost 3 times the investment. These results need full interactions of investment and policies to thrust GDP growth versus fiscal drag.

NATIONAL COMPETITIVENESS

This is the significant factor that has provided an enormous thrust to the economies of Australia, Singapore, Malaysia, the USA and the UK. An effective diffusion of IT in an economy leads to substantial gain in national competitiveness.

GLOBALIZATION OF BUSINESS MODELS

The globalization process is really e-driven. Unless we as a nation are able to exploit the full benefits of the e-systems we will be passed by e-lead growth economies. We would become thus chronic sufferers of e-disease due to e-deficiencies in our socio-economic systems.

Having highlighted the significance of IT and its positive impacts, I am pleased to report to you that Brunei Darussalam has not been slow in following the IT momentum in the past. In 1995, we had Program TEMA for Civil Service, a well initiated IT awareness program. Subsequently we have taken several initiatives to assist ministries in keeping up with the IT momentum.

HOW DO WE GET HERE?

In terms of strategic IT planning and taking initiatives in implementation, a substantial work has already been completed and given in Section 1 pages 1-5 of the Summary report. Based on the findings of research conducted during the strategic planning process in 1997-1998, we are very clear about the current status of IT in the Private Sector and the Public Sector. To put it simply, the use of IT in both sectors has NOT been effective. Please refer to sections 2 and 3.

The strategic plan listed in Section 4 attends to all the aspects mentioned in Sections 2 and 3.

The findings have demonstrated some major tasks ahead of the BIT Council, the e-Government Program Executive Committee and also the national task force on e-Commerce.

WHAT SHOULD BE DONE?

These problems and issues need to be resolved by the BIT Council or the e-Government Program Executive Committee and the national task force on e-Commerce to ensure an effective use of IT in Brunei Darussalam. Only then we will achieve a sustained productivity growth and the desired fiscal savings, so that we become an active economy in the new era of globalization. These policy aspects are listed in Section 5 for the Public Sector and Section 6 for the Private Sector.

PUBLIC AND PRIVATE IT POLICIES

 

The major task of the BIT Council or the e-Government Program Executive Committee or the national task force on e-Commerce is to develop policies, strategies and to ensure that Brunei Darussalam continues to enjoy economic stability, prosperity beyond the age of its oil-base growth. Core and key strategies for this, in the context of both the Public and the Private Sectors, are given in Section 7

 

 

 

CORE IT STRATEGIES AND OTHER STRATEGIES

In specific terms, the main tasks of the BIT Council or the e-Government Program Executive Committee or the national task force on e-Commerce are:

  • To instill the effective use of IT in the Government, the Private Sector and the Society as whole.

  • To address the issues and problems with regards to making IT effective.

  • To ensure that the economy in its entirety or as a whole makes the full use of the new Information and Communications Technology (ICT).


Section 8 presents a summary of the Action Plan. Thus the BIT Council or the e-Government Program Executive Committee or the national task force on e-Commerce has to ensure that Brunei Darussalam does not suffer from the e-disease.

Some of the immediate actions recommended in the IT Strategic Plan summary on pages 29-36 are the followings.

Now is the time for action. Regarding planning for IT, we have done enough already. A number of crucial steps need to be taken. First working together of government and the private sector must be seen as the pivotal step because they are both integral part of the economy.

The BIT Council with the e-Government Program Executive Committee, the national Task Force on e-Commerce needs to set-up an implementation program for the initiatives drawn up in the strategic framework. Major action plan for this has been drawn but would require essential resources including:-

  1. Firm decision about capital funding and other resources allocation such as infrastructure and human resources.

  2. The priority areas for implementation need to be established.

  3. The needs to highlight specific areas of investment and cooperation with the private sector.

  4. The Civil Services needs to be given a time frame within which e-projects and programs to be implemented.

  5. The private sector also needs to be given a time frame within which e-projects and programs to be implemented.

  6. The role of the Government as facilitator, as an initiator or as a joint venturer needs to be spelt out to the Private Sector.

Regarding the implementation of action plans presented in the report, BIT Council, the e-Government Program Executive Committee and the national Task Force on e-Commerce need to get the involvement of the private sector. This includes:

  1. IT Knowledge Development thrust over the next 5 years.

  2. IT Training and continuous staff development.

  3. IT grants and subsidy where appropriate.

  4. Provision and maintenance of the PCs and IT equipment.

  5. IT R&D efforts.

  6. IT in Business and Education.

  7. IT demand mobilization

  8. IT enhancement initiatives in the Ministries.

  9. Establishment of the necessary IT infrastructure.

It is therefore suggested that the BIT Council, the e-Government Program Executive Committee and the national Task Force on e-Commerce take an early initiative or invite submission from the Private Sector for their effective implementation in the e-initiative. It is recommended that the BIT Council, the e-Government Program Executive Committee and the national Task Force on e-Commerce follows the following steps in this regard:-

  1. To establish the e-Brunei framework, the adoption of the e-Government strategic framework and upgrade the present e-commerce framework to e-Business framework and adopt the recommendations listed on pages 28 to 40.

  2. Highlight the critical role of upper and middle managers in the implementation and diffusion of IT in in each ministry through conducting an implementation workshop in each Ministry.

  3. Invite submission from the implementing agencies Ministry by Ministry to prepare the implementation plan within 3 months from thereon.

  4. IT Department, acting as the IT Secretariat for the BIT Council to examine and process all submissions within 3 months.

  5. The BIT Council, e-Government Program Executive and the national Task Force on e-Commerce to act on the recommendation within 3 months to approve the common and the specific Ministry by Ministry plan of actions.

  6. Concurrently, invite submission from the Private Sector on implementing the priority areas within 3 months. The proposed guidelines for the Private Sector submission are now being prepared.

  7. IT Secretariat to examine and process the submissions from the private sector within 3 months.

  8. The BIT Council, e-Government Program Executive Committee and the national task Force on the e-Commerce to act on the recommendation within 3 months to ensure that the e- projects or programs do proceed within a maximum of 9 months.

In conclusion, the Strategic IT Plan, IT 2000 and Beyond is our last hope to extend the last extra mile in the Es, the Is and the Ks. Let us be clear with our objectives and let the BIT Council to decide.

Wabillahit Taufik Walhidayah. Wassalamu alaikum Wa rahmatullahi Wabarakatuh.

Haji Mahmud bin Haji Mohd. Daud
Acting Director of Information Technology and State Stores Department
Department of Information Technology and State Stores
Ministry of Finance
Cum Secretary of the Brunei Darussalam Information Technology Council
8th January 2001