Diversity Encourages Growth

Diversity Encourages Growth
The Software Park Alliance's 12 members have big plans,
• Published: 14/10/2009 at 12:00 AM
Thailand proved its strength in the software industry at the Asia Oceania Regional Software Park Forum last week. The event was staged in Phuket, which is poised to become an international software development destination.

Members of the Asia Oceania Regional Software Park Alliance gather in Phuket for the three-day meeting.
The three-day regional software park forum concluded last Friday, along with the handover of the president of Asia Oceania Regional Software Park Alliance, from Suwipa Wannasatop of Thailand to Roslan Bakri Zakaria of Malaysia.
Thailand Software Park president Suwipa, who is now the immediate past-president of the 12-nation alliance, said Thailand is regarded as a high-potential market in international business. "If we can pool and synergise the entire network of our capabilities, we will become more attractive for overseas venture capitals and customers," she said.
Stream Global, a Singapore venture capital, praised Thai innovation after seeing the start-up companies incubated by Software Park Thailand.
Delegates from 22 parks in the region have also impressed the Software Park Phuket, possibly the most humble and homey park in the region, housing for some 20 companies and incubatees.
Software Park Phuket has a clear statement in position of hospitality and tourism software development. The second phase of the park will establish the "Creative and Design Education" school, to build human resources in design and other creative fields.
Phuket has inspired other parks, but they have to be niche. Software Park Korat, for example, is potentially gearing up for e-government applications, as the park is run by the Provincial Administrative Organisation.
"What we have gained from the forum is worthwhile. And trustworthiness has driven our industry to grow and gain strength," said the president.
However, she said, there is still work to be done. Software Park needs to promote and protect entrepreneurs
The concept of "shared infrastructure and shared information" has brought about benefits to all alliance members. Through the network, all members can explore which project biddings are taking place in each country.
Suwipa said Thailand can protect its market by being a prime contactor instead of letting overseas companies directly do business in the country.
"By having the projects to draw those experts, there will be technology transfer and it's a good opportunity for Thais to learn such technologies," she said.
The regional software alliance is to see a significant expansion, with the number of parks growing from 16 to 22, and six new member nations - Brunei, Mongolia, Burma, Laos, Vietnam and Malaysia. The total GDP of the 12 economies totals $3 trillion.
Suwipa noted that the alliance network helps reduce risks for Thai entrepreneurs doing business abroad, and increases opportunities for market expansion, both locally and internationally.
"Local Link, Global Reach" is the principle at the heart of the partnership.
Over the past four years, Suwipa has helped create opportunities for Thai companies to find foreign customers through the Alliance network.
One Thai company has had to turn down a German firm's request for 500 people for outsourcing work because they simply couldn't meet the demand, with the result that the work went to a Vietnamese business instead.
"Today we are back to the fundamentals. Software Park has to change a strategy," said Suwipa, adding that 31 Thai CMMI companies have to work together to mobilise limited human resources.
Alliance members have a variety of cultures and skill sets, requiring mobilisation to serve the dynamic market.
MSC Cyberport Johor Malaysia is a joint-venture of private sector and the government. CEO Ganesh Kumar Bangah noted that the value proposition of MSC Cyberport Johor is its location, the southernmost in Malaysia, across the causeway from Singapore.
"Singapore is the financial capital of Southeast Asia," said Bangah.
"Our location means we can tap into the opportunities in Singapore and bring the capital and jobs to the lower-cost countries such as Malaysia, Thailand, and other Alliance members.
" We create products and businesses for the global marketplace and with the alliance partnership we would like to extend the market across the 12 economies.
"It's a great opportunity for us to capitalise and also contribute to the alliance.
Laos has announced its "Industrialisation and Modernisation" policy and thus software will be a fundamental of ICT development.
"We plan to set up a software park to grow our IT industry and so we have to gain experience from the alliance," said Somlouay Kittignavong, acting director general, Department of Informatics, National Authority for Science and Technology.
Dr Yong Chee Tuan, representative of InfoComm Federation Brunei, noted that 99% of businesses in the Sultanate deal with oil and gas.
With a population of just 380,000, Brunei requires significant international resources to implement ICT. The multi-million US dollar e-government initiative comprises many projects, including the development of an education portal website, e-education content development, school management system, and e-health project, all of which are on schedule. For some projects, the government will team up with alliance members.
Brunei is using ICT to drive the economy and thus it requires partnership with foreign companies. Business networks within the region should bring benefits to the industry.
"I see the great potential of Thai companies, but look at the regional competition - Malaysia and Singapore stand on more favourable ground because of their command in English language and their marketing," said Dr Tuan, noting that these are two major factors behind the success of Malaysia and Singapore in the international market.
He said Thailand can compare favourably in terms of technology, with Thai products and content offering a high level of sophistication and intelligence, but opportunities to do business in this arena with other countries are limited due to the language barrier, which makes marketing and communications difficult.
"I hope the alliance creates expansion opportunities, where we can help each other with marketing, branding and packaging," added Dr Tuan.
"This way, products could become very successful and businesses would have the potential to reach beyond the Asean market, to the US, Australia, and other parts of the world."
Burma has set up Yatanarpon Cyber City Development, close to Mandalay, to stimulate the ICT industry.
Director Tin Win Aung said the cyber city has been equipped with hi-speed Internet access available for local and overseas companies.
It plans to establish an international standard institute, international software development centre and data centre to deliver software in a platform of SaaS (software as a service) and cloud computing.
"We are creating a human resource development supply chain for the region," Aung said, adding that the cyber city also aims to become the country's telecom hub.
"Not only are we developing the software industry, we are also building a factory for telecom-related equipment such as switches, routers, handsets and fibre-optics," he said.
Dr Abu Talib Backhik, advisor, SME Development Program Cyberview Technopreneur Centre, Cyberjaya Malaysia, said that in the second years of Sofware Park Alliance the focus should now be more on setting an agenda than on growth.
He suggests setting up benchmarking to gauge the progress of the three categories: physical infrastructure, soft infrastructure and knowledge infrastructure.
The benchmarking will help alliance members to leverage potency and classify their strengths and capabilities. For example, Thailand is the regional leader in tourism, while Malaysia is renowned for financial solutions, and so on.