I remember sitting in a Grade Seven classroom in Brisbane suburbia in 1980 when our teacher, Mr O'Sullivan, showed us a video of future technology. It was show-and-tell day, so we huddled around the TV and watched in wide-eyed awe as we witnessed the future of the computer and video technology. One item that caught the attention of the class was compact discs. Our teacher explained that we could fit into these an entire movie and encyclopedia at once — part of an American high-technology industry that one day we might be lucky enough to use.

Back then, this technology seemed as distant and advanced as Obi Wan Kenobi's lightsabre. Rocket ships, DARPA, computers, mobile phones and CDs were a long list of high-tech inventions from the US. Then, as now, Australians, along with the rest of the world, were continually reminded of this leadership. There is a general claim that foreigners, Asians in particular, were poor inventors. In the 1980s, Asians, especially the Japanese, were depicted as imitators who tended to be mere subcontractors or component makers. To a certain extent, this perception continues to survive in the West.

However, the reality is different. Today, it is quite likely that you are browsing Malaysian blogs and watching videos through your Korean 3G mobile phone linked to your mobile operator using Chinese and even Malaysian telecommunications technology. In reality, "foreigners" play crucial roles in the creation of information and communications technology (ICT). It is also true that Americans, like everybody else, are great imitators and subcontractors.

Did you know that Intel's first micro-controller was a 1969 project initiated by Busicom, a Japanese electronics company? Intel was a subcontractor and was paid US$60,000 in 1969 to co-develop it. In fact, much of Intel's early technological development was mostly via subcontractor work. Intel's DRAM technology emerged from a subcontracting job from Honeywell. Intel, like Microsoft, was already a supplier for IBM before it sold the latter operating systems and newer CPUs.
Quite a few Malaysian high-tech firms were born in similar environments. XYBase was a KLIA subcontractor. Today, it is a world leader in airport automation, with over a dozen international sites. Harres Tan, founder of HT Consulting, got his break via HSBC and now has a fairly successful international business.

iTopia has created a lot of great technology by developing customised solutions for telecommunications around the world. Scicom had Nokia for many years before picking up new clients. SnTGlobal is one of the most competitive e-supply chain providers in the region. Before this, it was a subcontractor for a few Japanese firms. The government too has played its part by being the first client of such companies as commercedotcom, IRIS, Tricubes, Customedia and Itramas.

Successful second movers

Although Americans are recognised as undisputed technology leaders, many inventions came from other places. The transistor was developed by an Englishman named William Shockley. Wireless technology was created by a Croatian named Tesla. Telegraphy, the basis of telephony, was created by a Pole and an Estonian. Relational database management, core technology used by Oracle and MS-SQL, was invented by an Englishman named Codd. The Americans have done a great job of identifying weaknesses in inventions and making the necessary improvements.

Today's technology leaders are not first movers. Google did not invent search. The first search engine, called Archie, was created by students in Canada. Microsoft did not invent operating systems. In fact, it recommended a more established solution — CPM — to IBM and took over only after discussions broke down. Nokia did not invent mobile phones and was originally an Ericsson subcontractor. Pixar did animation for Lucas, then Disney, before effectively doing a mini-reverse takeover. Activision was originally a game cartridge developer for ATARI. Steve Jobs and Steve Wozniak were HP and ATARI subcontractors. Dell did not invent computers. Its was an endless process of making things cheaper, better and faster.

Malaysians have also been in this game. There was seemingly nothing new or different about JobStreet when it first appeared on the scene, but now it is the regional leader, recognised even in the US. When I met a few Silicon Valley venture capitalists in Sand Hill Road and El Camino Real, JobStreet's name kept cropping up.

Qubeconnect is among the new entrants in the telecoms technology arena but it has a growing list of international telecoms clients. Silverlake's name is also known in IBM global banking circles. Itramas, which hails from Penang, did not invent intelligent transport systems, but is recognised as one of the best in the world.

Hewlett-Packard was a calculator company for a few decades before it finally moved into computers. While we cannot wait half a century to leave a substantial mark on the global technology market, we should be proud with what Malaysia-based firms have developed so far. So, let us not be ashamed of being outsourcers or subcontractors or doing something that, on the surface of it, looks like a "me-too" strategy. This approach is good as long as we follow Eugene Kliener's rule No 1: Build something that people will use and pay for.

There is a burgeoning new world emerging in the East, starting with Southeast Asia, a generally untapped market which Malaysian firms are qualified to take advantage of. This is a market that Malaysians can set their sights on for this coming generation. But that's another story. By all means, it is not a walk in the park. This industry is a lot more like a gruelling rugby match. Every yard won is a hard yard earned, while your competitor will be more than happy to take back those yards and some. Malaysian ICT firms face many great challenges, ranging from the scientific pool, global marketplace integration and customer management to enterprise capabilities.

However, these challenges are not unique. I often meet international officials and businessmen in the ICT industry, many from Asean. They recognise the fact that the ICT business is a tiresome and exhausting one and is not for the misinformed, unprepared or light hearted. They also recognise that Malaysia is starting to pull away from the rest because of the dedication of various players who listen to criticism and get things going to solve whatever problems faced. MSC Malaysia companies that have started to pull away from regional competitors are a testimony to this.

Rob Cayzer is head of business and market development, industry development division, MDeC