Smart Melaka Blueprint 2035

The Smart Melaka Blueprint 2035 (SMB2035) is a strategic document prepared by the State Government of Melaka, in collaboration with Malaysian Industry-Government Group for High Technology (MIGHT). It serves as a guide for Melaka digital transformation while maintaining its unique rich cultural heritage and an inclusive, vibrant and thriving economy. The SMB2035 will incorporate digitalisation of the administrative, business, research, development and commercialisation (RD&C), and society into a complete ecosystem. Specifically, SMB2035 addressed the challenges arising from rapid urbanisation and digital revolution, for Melaka future development. It is aligned with global and national agendas, to promote digital economy for sustainable and inclusive growth, and prepare the society for transformation and strengthen its position as a global smart heritage state.

MELAKA BLUEPRINT 2035 SMART

In collaboration with

Table of Content

iii ii

Preface Acknowledgement Stakeholder Engagements Messages Executive Summary

v vii

INTRODUCTION

MELAKA: PRESENT AND FUTURE

SMART MELAKA 2035 FOR ALL

Melaka at a Glance

Strength, Issues and Challenges

Vision and Mission

Benchmarking of Smart Cities Journey of Smart Melaka Initiatives

Thrusts

20 21

Future Trends

Smart Melaka Components

Drivers of Change

Smart Melaka Targets

64 63

Moving Forward

SMART MELAKA INITIATIVES

IMPLEMENTATION AND MONITORING MECHANISM

References

Abbreviations

Strategies and Action Plans

Governance Structure

SMB2035 Project Implementation Mechanism

Quick Win Projects

45 49

Game Changers

SMB2035 Monitoring Mechanism SMB2035 Communication Plan

Strategies Assessment

SMART MELAKA BLUEPRINT 2035

PREFACE The Smart Melaka Blueprint 2035 (SMB2035) is a strategic document prepared by the State Government of Melaka, in collaboration with Malaysian Industry-Government Group for High Technology (MIGHT). It serves as a guide for Melaka digital transformation while maintaining its unique rich cultural heritage and an inclusive, vibrant and thriving economy. The SMB2035 will incorporate digitalisation of the administrative, business, research, development and commercialisation (RD&C), and society into a complete ecosystem. Specifically, SMB2035 addressed the challenges arising from rapid urbanisation and digital revolution, for Melaka future development. It is aligned with global and national agendas, to promote digital economy for sustainable and inclusive growth, and prepare the society for transformation and strengthen its position as a global smart heritage state. The preparation of SMB2035 is one of the outcomes of Flagship 7 under Pelan Strategik Melakaku Maju Jaya 2035 (PSMJ2035). The aim is to assist the policy makers, implementers and the communities to embrace transformative smart technologies and innovative business models into planning processes to create a dynamic and inclusive state. SMB2035 was prepared in consultation with stakeholders through government and industry engagement. SMB2035 identified eight challenges faced by Melaka, which have been magnified or accelerated by the COVID-19 pandemic. These include economic growth and development, transportation system, security and safety, technology readiness, sustainable and innovative business models, e-government service, environmental and resource management. The successful implementation of SMB2035 requires continuous commitment and concerted efforts of all stakeholders to achieve people-centric governance, vibrant economy, sustainable environment, and resilient society.

ACKNOWLEDGEMENT We would like to acknowledge all organizations and individuals who contributed and assisted in this blueprint publication. Our sincere gratitude to all expert from the government agencies, industry players, universities, communities’ representative, individuals, and volunteers that contributed to realize this Smart Melaka 2035. Special thanks to UTeM writer’s team, authors, experts’ team, and designers hard works to complete this blueprint. This commitment shows strong and progressive outcome in making this blueprint successfully published. Finally, to our collaboration partners, MIGHT for their full commitment to deliver this blueprint towards the end.

EDITORIAL TEAM

MIGHT

Subject Matter Expert (SME)

Dr. Raslan Ahmad, FASc Rushdi Abdul Rahim Ts. Zulkifflee Mohamad Ir. Mohd Qaharuddin Abdullah Azmil Mohd Amin Nadia Sullivan Kamarul Ariff Omar Norsam Tasli Mohd Razali Dr. Nurul Hidayah Shabdin

Haji Nor Sallehi Kassim Prof. Madya TPr. Dr. Goh Hong Ching Ir. Dr. Aziz Hassan Prof. Ts. Dr. Rabiah Ahmad Mohd Isa Mohd Dom Prof. Madya Dr. Mohd Syaiful Rizal Abdul Hamid Ir. Ts. Dr. Anuar Mohamed Kassim Prof. Madya Ts. Dr. Zuraida Abal Abas

Siti Halimah Ismail Nor Shahida Razali Mawardi Md Ali

UPEN

UPEN MELAKA

YBhg. Datuk Salhah binti Salleh Muhammad Shahrul Hafidz Ab Rahim Ts. Hafizam Mustaffa Farah Wahida Mohd Zabidi

T. Yohananthan Aziana Ahmad

iii

Our partners and contributors

Federal

AGENSI ANGKASA MALAYSIA KEMENTERIAN SAINS, TEKNOLOGI DAN INOVASI

Unit Penyelarasan Pelaksanaan Jabatan Perdana Menteri

State

UPEN

BADAN KAWAL SELIA AIR MELAKA

Industry Players

Universities

STAKEHOLDER ENGAGEMENTS

SMART MELAKA BLUEPRINT 2035

vii

SMART MELAKA BLUEPRINT 2035

viii

MESSAGE CHIEF MINISTER OF MELAKA Rt. Hon. Datuk Seri Utama (Dr) Hj Sulaiman bin Md Ali

Alhamdulillah, my heartfelt gratitude to Allah SWT for with his grace and blessings, the Smart Melaka Blueprint 2035 (SMB 2035) has been successfully published. SMB2035 is prepared by the Melaka State Economic Planning Unit (UPEN) in collaboration with Malaysian Industry-Government Group for High Technology (MIGHT). SMB2035 is a symbolic action under Flagship 7: Educatuon & Technology, whereby PSMJ2035 is in tandem to Malaysia Smart City Framework by KPKT and is set to be the direction for Melaka to spearhead the digital economy and forefront the digital state in Malaysia. Melaka is very committed towards transforming the development of Smart State towards digital economy and digital society. Melaka will drive and spur economic growth, encourage domestic and foreign investment, improving the tourism sector, development infrastructure, heritage restoration and improvement of human capital through education. Melaka also needs diverse talents to create a new way of life for the people to adopt digital technology in order to make our lives easier, simpler, and hopefully richer. SMB2035 is a strategic living document in addressing to Melaka latest issues and new urban challenges. It is therefore will explain on strategies and action plans, and quick win for Melaka towards a ‘Smart State’ and provides overview for the investors on the Melaka future industrial development. I hope SMB2035 will envisions Melaka to be sustainable, livable, and resilient Smart Melaka by 2035 thus realizing Melaka towards a sustainable state. Finally, I would like to congratulate and express my heartfelt gratitude and appreciation to everyone who was involved, including the subject matter expert, government officials, and the committee that was able to produce this report.

Thank you.

SMART MELAKA BLUEPRINT 2035

MESSAGE STATE SECRETARY OF MELAKA Hon. Datuk Zaidi Bin Johari First and foremost, I would like to express my heartfelt gratitude to Allah SWT for His countless blessings and grace in ensuring the publication of the Smart Melaka Blueprint 2035. (SMB 2035). SMB235 is a strategic document that will guide Melaka for the next 15 years, from 2021 to 2035, towards Smart State and will offer the best strategies and action plans in response to the formation of PSMJ2035. The development of SMB2035 is a collaborative effort between the government, private sector, and communities in Melaka. The blueprint will focus on digital infrastructure development for a digital state, digital economy, and digital society of Melaka. SMB2035 development is to ensure the strategies and action plans will be adopted by implementer so that it will be implemented. I hope that SMB2035 will serve as a catalyst for Melaka civil servants to continue to improve good governance commitment and quality of service to the people, as well as to determine Melaka’s future direction to achieve the target needs and meet the people’s needs towards a Smart State. SMB2035, I believe, will also help to increase flexibility and innovation in the Melaka civil service, as well as the ability to implement rapid changes. Once again, I would like to express my gratitude and appreciation to all parties involved in the preparation and collection of information, as well as their commitment and support in bringing this report to fruition.

MESSAGE MIGHT PRESIDENT AND CHIEF EXECUTIVE OFFICER YBhg. Datuk Dr. Mohd Yusoff Sulaiman

The Smart Melaka Blueprint 2035 (SMB2035) is a strategic document to response Melaka key urban challenges in term of urban mobility, digital infrastructure development and clean water resources. It is collaboratively prepared by the Economic Planning Unit (UPEN) Melaka and Malaysian Industry-Government Group for High Technology (MIGHT). This document provides an overview for the investors of the future industrial development in Melaka. The policy makers and the implementers are guided by the blueprint for infrastructural development to attract the investors and to care for the well-being of the communities. The sustainable balance must be maintained and preserved between economic development, environmental protection, and cultural heritage by improving the efficiency, transparency and accountability of Melaka public service delivery and increase the economic competitiveness. On top of that, at MIGHT, we always take a further step to foresee the future landscape by providing a strategic document to help our states and cities overcome the urban challenges and achieve the Government’s aspiration. MIGHT developed the F.I.R.S.T TM matrix consists of ve pillars or elements as a tool for strategic and wholesome development for SMB2035. The ve pillars are Funding, Infrastructure, Regulations & Policies, Skills & Talents, and Technology & Innovation. These elements are addressed and developed through consensus and extensive consultations to meet Melaka’s needs and expectations in delivering SMB2035. MIGHT regularly facilitate Ministries, industry players and academia in the areas of investment, business, and markets locally and internationally. We offer a trustworthy smart partnership platform for both government and private sectors to share expertise and provide strategic development and catalytic effects of high technology industry in elevating the Malaysian economy. Strong partnerships between all levels are vital, including with the communities, NGOs, professionals, business entities, and the private sector as well as the government machinery. MIGHT has included our Malaysia Smart Cities Alliance Association (MSCA) members to participate in the development of SMB2035 as Melaka should leverage on every best practice and experience from the smart city industry players itself. Finally, on behalf of MIGHT, we wish to thank all partners of who directly and indirectly have contributed to the accomplishment of SMB2035.

SMART MELAKA BLUEPRINT 2035

EXECUTIVE SUMMARY Melaka, as many other cities experiences, is undergoing fast pace urbanisation and this trend continues. The population of Melaka in 2035 is expected to rise to 1.54 million people with a density estimated at 9.2 person/ hectares and the state’s economic growth will continue to rise with its Gross Domestic Product (GDP) per capita projected to reach RM89,930. Urban growth will not be, however, without challenges. Rapid urbanisation , coupled with population and economic growth has already resulted in a number of daunting challenges. In Melaka, urban sprawl has put immense pressure on the urban land use as well as its periphery which subsequently transforms the natural and semi-natural landscape into urban fabric. Melaka is expected to face challenges in terms of meeting the increased energy demand and sourcing of future energy options. Further to this, high level of private vehicle ownership contributes to traffic congestion and greenhouse gas emissions. Additionally, high water usage, lack of solid waste management, degraded environmental quality and natural resources, threats of climate change is a challange for a better quality of life in the society as a whole. In order to address these challenges, Melaka aims to adopt a smart city concept to improve municipal management and strengthen the governance of its public services. Future Melaka features an intelligent urban ecosystem which will operate through an integrated support system consisting of a wide array of technologies, including sensors, wireless communication systems and advanced data analytics. This visionary leap is in-line with the state government’s aspiration to achieve the smart city status by 2035. Smart Melaka Blueprint 2035 (SMB2035) is one of the accompanying quick wins identified under Flagship 7: Pendidikan dan Teknologi of Pelan Strategik Melakaku Maju Jaya 2035 (PSMJ2035). It provides a strategic and actionable roadmap to lead Melaka into the visionary digital transformation, integrating the components of administrative, business, research and society as a complete ecosystem. Specifically, SMB2035 aims to assist the policy makers and implementers as well as the communities at large to embark into the journey of digital transformation towards an inclusive and vibrant Melaka with thriving economic prospects by 2035, while ensuring rich heritage always as the unique core values of Melaka, at present and in the future.

SMB2035 identified eight categories of challenges currently faced by Melaka of which some have been either magnified or accelerated due to COVID-19 pandemic. These include economic growth and development, transportation system and management, security and safety enhancement, technology readiness, sustainable and innovative business models, e-government service provision, and environmental and resource management. Based on the global trends shaping future cities, SMB2035 identified seven drivers of change which will shape the digital transformation of Melaka. In response to global and national key agendas on smart city developments, SMB2035 aspires to empower and engage its citizens in this 15-year transformative journey to accomplish the vision of “Sustainable, Livable and Resilient Smart Melaka” , by achieving a specific mission “Towards World Heritage Smart Melaka” . The SMB2035 envisions Melaka to be a Digital State that will uplift its heritage and cultural preservation, with a wide range of innovative and attractive business opportunities offered to both local and foreign investments. The vision and mission are supported by five thrusts as follows; smart partnerships, digital ecosystem, people-centric government process and procedures, human capital development to realise digital economy readiness, and adoption of technology and automation. A total of 20 strategies were subsequently developed, and supported by 78 action plans which will be executed in three phases, i.e., short-term (2022-2025), medium- term (2022-2030), and long-term (2022-2035). Based on the F.I.R.S.T TM matrix assessetment of strategies, a total of 22 quick win projects are expected to kick off SMB2035 and a total of 4 game changer projects which would lead to long lasting impacts to Melaka are identified. The successful implementation of SMB2035 requires full commitment and concerted efforts of all stakeholders to encapsulate people-centric governance, vibrant economy, sustainable environment and resilient society. At state level, MELDiC oversees and approves all SMB2035 initiatives with the implementations spearheaded by Smart Melaka Delivery Committee where BTMK and MICTH specifically oversee the Industry Project Depository. A comprehensive outline of implementation partners using Quadruple Helix Model of innovation which is backed by the proposed Project Evaluation Committee (PEC) with monitoring agency, i.e., MIMO is ready for the state government of Melaka to realistically leverage its resources for SMB2035 initiatives.

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INTRODUCTION 01

• Melaka at a Glance • Benchmarking of Smart Cities • Journey of Smart Melaka Initiatives

SMART MELAKA BLUEPRINT 2035

MELAKA AT A GLANCE

World Heritage Site in 2008 UNESCO

NEGERI SEMBILAN

Jasin Population: 154,300

GDP growth rate

Alor Gajah Population: 209,200

8.3 % 3.1 %

MELAKA

in 2017

in 2020

Melaka Tengah Population: 568,300

Second-lowest unemployment rate

2.2 %

JOHOR

in 2020

1,720 km 2 Area size

Melaka, is a world-renowned heritage city. Historically, its strategic position make it a hub for economic, cultural, political and Islamic civilisation in the Asian region since 1500’s. It was one of the cities on the maritime silk route trade passage that connecting East Asia to Southern Europe. UNESCO inscribed Melaka as the World Heritage Site in 2008 for its tangible and intangible multicultural heritage originating from the Malay Sultanate, Portuguese, Dutch, Chinese, Indians and Arabs. The transformation from a rural landscape to the urban fabrics have fuelled the state-wide economic growth through manufacturing and services. In 2017, its GDP growth rate was recorded at a high of 8.3%, compared to the national rate of 5.8% however contracted at a negative 5.9% influence by COVID-19 impact on the services, manufacturing and agriculture sectors. Despite this challenge, Melaka’s unemployment rate in 2020 was the second-lowest after Putrajaya, which was 2.2% compared to the national rate of 4.5%. Administratively, the state government body comprises (1) state agencies, (2) local authorities and (3) statutory bodies with the Chief Minister being the head of government covering an administrative area of 1,720 km 2 . As a Developed State and the subsequent declaration of “Melaka Maju 2010”, a strong responsive policy making and strategies formulation has taken place since then to foster innovation in business ecosystem, facilitates knowledge exchange in the society and improve administrative efficiency responding to the Industrial Revolution 4.0 and Sustainable Development Goals especially in post COVID-19 era.

Objectives

Smart Melaka Blueprint 2035 (SMB2035) provides a strategic and an actionable guide to lead Melaka into a visionary digital transformation integrating the components of administrative, business, research, and society as a complete ecosystem. Specifically, SMB2035 is set to:

Address the challenges arising from rapid urbanisation and digital revolution.

Prepare the future development of Melaka aligned with the national and global agendas.

Promote the digital economy for sustainable and inclusive growth.

Position Melaka as a global smart heritage city.

INTRODUCTION 01

02 03 04 05

Methodology First phase , five methods were used for data collections. It started with horizon scanning and scenario planning which helps in guiding workshop participants to access existing policies, plausible scenario, gap analysis, future trends, and drivers of change. These were done in stages through three workshops which have been successfully conducted via online and physical engagement involving 76 stakeholders consisting 59 state agencies and 17 industry players. Based on the workshops, development of SMB2035 direction, strategies and action plans were formulated through several Focus Group Discussions (FGD) and expert interviews. The potential quick win projects and game changers were identified through the stakeholders and industry engagements. Second phase , five methods were used for data analysis and validation. The benchmarking method helps in analysing global and national best practices on smart cities. Then, in content analysis, the issues, challenges and future trends were thoroughly analysed to give clearer understanding on what initiatives are needed. Assessment on the 20 strategies and 78 action plans formulated were done using MIGHT F.I.R.S.T TM Matrix analysis tool based on five perspectives namely Funding, Infrastructure, Regulatory, Skills and Talents, and Technology. Result from this assessment assist framework development activity through the exploration of future opportunities and threats. While, the thematic analysis was used in assessing the seven components highlighted in this blueprint. At the same time, wind tunnelling process was used as part of strategic activities in testing the direction of SMB2035 with the Melaka high level stakeholders. This ensures practicality and future-proof strategies that suits the given planning timeframe towards year 2035.

METHODOLOGY

Primary & Secondary Data Collection

Documents review to assess trends and existing policies, strategies and initiatives on smart cities.

Horizon Scanning

Scenario Planning

Developing plausible scenario and drivers of change.

Primary data findings and proposals through stakeholders engagement.

Workshops

Focus Group Discussions

Discuss with selected groups for specific data requirement.

Expert Interviews

Crosscheck and validate secondary data with experts.

Analyse global & national best practices on smart cities.

Engaging high level stakeholders for validation and imporvement.

Analysis of issues,

Benchmarking

challanges & future trends.

Wind tunneling

Content Analysis

Data Analysis & Validation

Thematic Analysis

F.I.R.S.T TM Matrix Analysis

Assessment based on seven smart city components.

Analysis of initiatives on strategies and action plans.

SMART MELAKA BLUEPRINT 2035

BENCHMARKING of SMART CITIES Smart City Scenario

In the late 20 th to the early 21 st centuries, there was a significant impact in the theory and practice of city planning in Europe and the United States of America (USA). Since computerization was designed in the 1801, it became a key influence in this area. Therefore, the idea of a smart city was started in 1974 in Los Angeles which it can be described as a turning point in the history of urban planning. The implementation of this new urban paradigm has led to a new era in which information technologies are used to an increasing extent as a solution to the limitation of the sustainable development of modern cities.

The concept of smart cities brings different meaning to people and varies from one city to another. Commonly, a smart city refers to a city that utilizes Information and Communication Technology (ICT) and Internet of Things (IoT) to effectively manage resources for the overall improvement of the urban well-being. According to the United Nations (2018), nearly 70% of the world population will live in urban areas by 2050 and today, many of the megacities are already experiencing multi-dimensional challenges to cope with the demand due to the population increase. Smart cities, hence, aim to improve the quality of urban services and efficiency through reconciling technological innovation with the economic, social, and ecological challenges of future cities, making it more liveable and sustainable.

Cities that use ICT and technological advancement to address urban issues including to improve quality of life, promote economic growth, develop sustainable and safe environment and encourage efficient urban management practices. “ „ Malaysia Smart City Framework (MSCF)

INTRODUCTION 01

02 03 04 05

Global Scenes

Globally, the emergence of a smart city concept goes way back in the 1970s and it is believed to have started with Los Angeles with the first urban big data project: ‘A Cluster Analysis of Los Angeles’. The creation of virtual ‘digital city’ known as De Digital Stad (DDS) by Amsterdam in 1994 is the manifestation aimed at promoting internet usage. Singapore and Helsinki are leading the pack with comprehensive, digital advancement and social inclusion through the smart cities’ initiatives. The smart cities development has accelerated and generating growth on the back of a firm commitment in other cities such as Helsinki, Amsterdam, Barcelona, China, Hong Kong, London and other cities as listed under World Smart City Index. They believe that Smart Cities can sustain, foster and lead initiatives to tackle the urban challenges and solve public problems through technology adoption and it offered several criteria to achieve a higher quality of life in planning for cities of the future. The main urban challenges facing the countries will be solved through smart solution to seamless urban planning and deliver a suite of joined-up products and services to citizens with reduced infrastructure costs.

Smart Cities Wheels

T S

Shortage of affordable housing

Polarised growth of economy

WHY NEED SMART CITIES?

Increase age population

Natural disaster

SMART MELAKA BLUEPRINT 2035

Smart Cities Best Practices Five (5) global smart cities were selected based on the annual report of IMD-SUTD Smart City Index (SCI) for 2021, with similiar key urban challenges faced by Melaka. These challenges are pushing them to move forwards using a smart city approaches to address the issues while improving efficiency, productivity, and citizens well- being.

The benchmarking and best practices concluded that Smart City solutions for urbanization challenges. It is a global phenomenon that is providing a new direction and framework for the digital transformation in cities around the world.

Smart City Performance Ranking N W E

Key urban challenges

Solution to the challenges

SINGAPORE

• Slow growth of labour productivity and GDP • Shortage of labour force and capital investment. • Aging population and slow influx of immigrants. • Limited physical space.

• Development Plans. • Long term concept plan (40 to 50) year. • Short term 5 years detail plans on growth towards Smart Nation. • Proactive engagement with technology builders and entrepreneurs. • Organisational structures. • Flatten organisation enabling seamless communication between policy makers and implementers. • Develop agile software for policy implementation & monitoring. • Adopt Singapore Government Tech Stack (SGTS) . • Develop digital services, reduces the time-to-market. • Develop modular system • Water treatment plant (NEWater factory) to produce clean water.

AMSTERDAM

24 51

48 21

2273 17

40 5250

4 14

4420

81 5 2

61 32 58

BARCEL

• Policy and

1 Singapore 2 Zurich 3 Oslo

103

Implementation. • Silos and not integrated. • Manually driven processes and procedures.

108

4 Taipei City 5 Lausanne 6 Helsinki 7 Copenhagen 8 Geneva 9 Auckland

109

114

115

101

116

• Slow service delivery. • Manual monitoring of services. • Monolithic system architecture. • Shortage of clean water supply.

30 Riyadh 31 Los Angeles 32 Bordeaux 33 Vancouver 34 Madrid 35 Washington 36 Toronto 37 Busan 38 Montreal 39 Lyon 40 Hamburg 41 Hong Kong 42 Tel Aviv 43 Seattle 44 Lille 45 Denver 46 Gothenburg 47 Hanover 48 Dublin 49 Glasgow 50 Berlin

118

10 Bilbao 11 Vienna 12 New York 13 Seoul 14 Munich

117

110

BARCELONA

51 Birmingham 52 Brussels 53 Kiel 54 Moscow 55 Ankara 56 Tallinn 57 Boston 58 Barcelona 59 Chicago 60 San Francisco 61 Paris 62 Phoenix 63 Zhuhai 64 Nanjing 65 Shenzhen

• Economic stagnation. • Collapse of traditional manufacturing. • High unemployment rates. • Citizen participation in government.

• Innovative programs. • Promote technology-based entrepreneurship and start up.

15 Zaragoza 16 Brisbane 17 Amsterdam 18 Sydney 19 Melbourne 20 Dusseldorf 21 Newcastle 22 London 23 The Hague 24 Leeds 25 Stockholm 26 Manchester 27 Rotterdam 28 Abu Dhabi 29 Dubai

• E-Democracy.

• Use ICT for public consultation and participation.

AMSTERDAM

• Urban Challenges. • Air Pollution. • Climate resilient. • Urban mobility. • Food system .

• Commercialization of R&D. • Urban living lab.

• Stimulating entrepreneurship. • Collaboration & partnership.

• Citizen engagement. • Stakeholders sharing expertise.

INTRODUCTION 01

02 03 04 05

World Smart City Index The Smart City Index, which was jointly produced by the International Institute for Management Development and Singapore University of Technology and Design (IMD-SUTD) outlines a total of 118 smart cities. A smart city must apply technology to enhance the benefits and reduce the disadvantages of urbanisation to its citizens based on two (2) pillars. Each pillar will be looking into five (5) key areas. The map below shows all 118 smart cities.

Pillars

Key Area

Infrastructures of cities

1. Health & Safety 2. Mobility 3. Social Activities 4. Opportunities (work & school) 5. Governance

Technology provision

Key urban challenges

Solution to the challenges

SEOUL

• Transport information. is not easily accessible to user

• Adoption of smart devices. • Incentivized citizens by providing provisions to low- income families. • Transforming urban public transport landscape. • Introduction of the Special Accounts for Transport Facilities from fuel taxes by Government policy. • Comprehensive Seoul Safety Control Center to manage growing travel demand. • Seamless transport mode (e.g., “Exclusive Median Bus Lane Network”). • Affordable public transport/ quasi-public bus management scheme. • Integrated transit fare card system.

• Higher demand for public transport

systems due to growth of urban population. • Limited financial capacity of public transport providers. • Traffic congestion. • Large number of single occupancy vehicles create parking problems.

96 11

SEOUL

106

107

111

LONA

ABU DHABI

64 66

104

29 28

68 65

643 1

102

SINGAPORE

113

100 91

• Unaffordable transport fares .

No 2 in ASEAN

• Charges based on the total travel distance of passengers instead of the number of trips.

Kuala Lumpur

105

ABU DHABI

66 Hangzhou 67 Chongqing 68 Guangzhou

• Rapid urbanization. • Traditional urban planning process.

• New approach in urban planning. • Expansion through zoning,

83 Marseille 84 Tokyo 85 Philadelphia 86 Osaka 87 Hanoi 88 Ho Chi Minh City 89 Delhi 90 Mumbai 91 Jakarta 92 Hyderabad 93 Bengaluru 94 Istanbul 95 Lisbon 96 Bratislava 97 Budapest

69 Beijing 70 Tianjin

transport network and infrastructure facilities.

71 Shanghai 72 Chengdu 73 Medina 74 Kuala Lumpur 75 Warsaw 76 Bangkok 77 Bologna 78 Prague 79 St. Petersburg 80 Krakow 81 Milan 82 Kyiv

• Increase number of residents causing increase in demand for housing. • Shortage of clean water supply.

• Build green and sustainable city (Masdar City) Transforming eco- city concept into zero-carbon city. • Desalination of sea water to fresh water supply.

98 Buenos Aires 99 Medan 100 Makassar 101 Medellin

109 San Jos 110 Santiago 111 Athens 112 Rome 113 Nairobi 114 Abuja 115 Lagos 116 Bogota 117 Sao Paulo 118 Rio de Janeiro

102 Manila 103 Rabat 104 Cairo

Source: Smart City Index 2021

105 Cape Town 106 Bucharest 107 Sofia 108 Mexico City

SMART MELAKA BLUEPRINT 2035

National Scene

Following the requirement of smart cities development as indicated in the national policies of RMK-11 and RFN-3, the development of city’s digital infrastructure is given a focus in term to increase broadband capacity, promote cashless community, provide efficient public transport, implement smart waste management, and improve water treatment system. Consequently, Ministry of Housing and Local Government (KPKT) has developed nationwide Malaysia Smart City Framework in 2019 to streamline and coordinate the development of smart cities initiatives in Malaysia.

The smart city agenda for Malaysia has been established at national and state levels in various forms of guidelines such as frameworks, blueprints, policies, and legislations. It’s aim is to promote targeted development strategies, initiatives, stakeholder roles and impact on urban development and planning in Malaysia. The key agenda from national document related to the smart cities at national level in Malaysia were identified.

Key Agenda towards Smart Cities Development

Malaysia Smart City Framework (MSCF) (2019-2025) • Address urban challenges arising from rapid urbanisation • Meet national and global agendas • Adopt new global development trends • Promote digital economy • Position Malaysian cities to be on par with other cities global.

The National Physical Plan 4 (NPP4) (2021-2025) • Balanced and dynamic growth in global strategic position, economy, transportation, and smart infrastructure. • Spatial sustainability and climate change in terms of land use, natural resources and heritage, and carbon neutral. • Liveable environment and inclusive community in housing, education, and friendly development.

The National Urbanisation Policy 2 (NUP2) (2016-2025) • One Stop Centre (OSC) for Urban data Observatory • Sustainable urban development between physical, social, economy and environment. • Good governance to steer livable, inclusive, and resilient urban environment.

INTRODUCTION 01

02 03 04 05

Malaysia Digital Economy Blueprint (MyDigital) • Drive digital transformation in the public sector and society. • Boost economic competitiveness through digitalisation. • Build enabling digital Infrastructure. • Build agile and competent digital talent. • Build trusted, secure, and ethical digital environment.

National Policy on IR4.0 • Attract stakeholders and SME to Industry 4.0 technology adoption and processes. • Create digital ecosystem for adopting the Industrial revolution technologies and align with the existing and future development initiatives. • Transform the local capabilities in an accelerated and holistic manner to increase productivity, skill and cost efficiency.

The emergence of smart cities in the national development agenda has positively impacted not only to the urban development but also in the socio-economic and sustainable development policy and planning for transformative growth. This indirectly support the smart cities initiatives such as 12th Malaysia Plan (RMK-12), Shared Prosperity Vision 2030, Green Technology Master Plan (GTMP), and ‘Keluarga Malaysia’. Criteria of Smart City

Level 3 Plus Points

Level 2 Catalyst

Low carbon city and green lifestyle Gender empowerment and inclusivity of vulnerable group Community empowerment

Level 1 Core Criteria

Strong political will Engage broad community of innovators Master policies and synergistic partnerships

Government data sharing Data and information protection

Comprehensive primary and basic infrastructure Connected and modern digital infrastructure Initiatives aligned with the needs of the city

Source: MSCF, 2019

SMART MELAKA BLUEPRINT 2035

Malaysia’s transition towards a digital economy through the national smart city agenda has been supported by the state and is highly demanded over the years. Many entities, both public and private are pushing for targeted strategies based on the existing systems and opportunities for future development. The transition to becoming a smart city does not happen overnight, and there are many steps to be taken into consideration. A smart city can be developed for both existing and new township area. In case of smart city development in Malaysia, the new township area which develop into smart city are Putrajaya, Cyberjaya and Iskandar Malaysia. For new township area, it is much easier to plan, implement and monitor the whole implementation process. Malaysia’s Smart City key features

Ipoh Smart City (2020-2030)

Smart Selangor Blueprint (2020-2025) • IoT for Smart Community

• Livable and Resilient Smart City

Penang (2030) • Good

e-governance • Efficient Digital Infrastructure

Kuala Lumpur Smart City Master Plan (2021 – 2025) • Smart Citizen Centric

Iskandar Smart City (2006 – 2025)

• Sustainable Smart City

Cyberjaya Smart and Low Carbon City (2025)

Putrajaya Smart City Blueprint (2018 – 2025)

• Living lab • Low Carbon City

• Intelligent Garden City

INTRODUCTION 01

02 03 04 05

Contrary to existing township area like Selangor, Kuala Lumpur, Penang, Ipoh, Kuching and Sarawak, it require consideration, justification, regulatory process, and thorough implementation mechanism. However, both existing and new township area are possible to be develop as a smart city. To be successful, it needs to be somewhere that people want to live while the authorities continue to assess and monitor the progress of the smart city development and learned experiences from other cities for further improvement.

MySmart Wilayah (2030) • Intelligent Cities

Digital Sarawak Economy (2018-2022) • Digital Economy State

Kuching Smart City Master Plan (2021 – 2025)

• Big Data Platform Hub

Source: MIGHT analytics

SMART MELAKA BLUEPRINT 2035

Lesson Learned from Global and National Scenes

The smart city trend has evolved towards citizen-centric with more utilisation of advance technology to provides smart solutions to its key urban challenges. The ability of people to used translated data in their daily activities leads to better decisions and behaviour change. There are 5 main lessons highlighted:

Global

National

Public-private partnerships (PPPs) is one of the most popular options where cities and private enterprises share both the risk and the reward involved in smart city projects. There are more than 45 type of assets and services that are suitable for PPPs in a city.

Mostly federal and state funds. Partially from private agencies in selected projects. In case of Forest City Johor Bahru, it was funded hundred percent from the foreign investment.

FUNDING

Advance digital infrastructure city-wide. China and India have 500 and 100 smart cities mission respectively by providing digital infrastructure to their people.

Developing advance digital infrastructure for targeted area. Sarawak digital infrastructure focus on economic activities while Penang high- speed broadband coverage in its area for all.

INFRASTRUCTURE

Developing Programs to address needs for smart city expertise and skill set Talent development happen when citizens play an active role in the use of smart technologies in their daily activities to improve their economic and business activities. Barcelona focuses on technology- based entrepreneurship while in Seoul, the government provides incentive for using smart devices. Smart city development based on national standard require new form of controls using information, communication and digital technology. Singapore avoids physically integrated platform and develop rules and regulations for data integration. All agencies can access commonly shared information, collected from shared smart sensor network. This is a safe, efficient, and effective way of managing the city. Pioneering Smart City technology solution Ability to use technology to address urban challenges in improving the efficiency of urban management, people well-being, security and sustainability. Amsterdam is using the Amsterdam Smart City (ASC) platform to manage over 70 smart city projects with around 100 partners for technological transfer.

Malaysia Smart City Framework is the main guideline by which states and local governments align their strategic intents. However, there is a need for one standard and regulation for smart cities development to standardised and commonise management of smart city development.

REGULATORY

Digital literacy awareness This has been addressed at federal and state level with frequent campaigns and programmes to nurture talents. The concept of living lab in Cyberjaya has emerge as an approach to develop technology readiness in society. Identify and adopt technology that are relevant for Malaysia Smart City Mostly carried out in partnership with private agencies. KPKT is the responsible ministry to oversee smart cities development, however it does not have absolute authority on project execution and implementation. This approach presents considerable challenge in coordinating multiple ministries, agencies and local authorities.

SKILLS AND TALENTS

TECHNOLOGY

INTRODUCTION 01

02 03 04 05

Approaching heritage in a smart context like Melaka is challenging, as heritage involves several sectors: tourism, urbanism, architecture, leisure, culture, etc. Heritage integration in a smart city may imply the facilitation of physical access to places, as well as efficient flow management and sustainable protection of the area in a comprehensive urban view of the city. In Bologna, Italy, many historical sites are included in the smart strategy of a city along with sustainable urban mobility and the proper management of traffic flow. Another example of smart heritage protection and management is the Sassi di Matera city that was declared a World Heritage Site which become the first geology-focused Italian smart city. The lessons learned from the benchmarked cities have subsequently contribute to the strategies and action plans articulated in this blueprint. The consideration on the post COVID-19 challenges also has identified the need to transform Melaka into smart state whereby digitalisation has become a norm. The role of ICT was realised in five important results during the pandemic:

Acceleration of ICT roles during COVID-19 pandemic

Facilitates the speedy treatment of positive COVID-19 patients.

Helps trace COVID-19 spread especially new virus strain.

Assists in social distancing in daily life activities.

Flattens the COVID-19 curve.

Helps locate and monitors number of cases for speedy recovery response.

Overall, taking smart cities to the next level needs the government to explore how the existing investments can be extended to create citizen-centric smart cities. Looking at what’s next in Singapore for example, the government is converting public lamp posts into an interconnected network of wireless sensors. This will allow agencies to collect and analyses valuable data at a very granular level in order to gain better insight into priorities for urban development. Singapore’s government focused on collaboration and partnership to implement smart city project. The plans for a Smart Nation aren’t just about how government can provide smart infrastructure, but also about how businesses and citizens can take advantage of that infrastructure to become more engaged and live better lives.

SMART MELAKA BLUEPRINT 2035

JOURNEY OF SMART MELAKA INITIATIVES

The journey of visionary Smart Melaka can be traced back to 2010 when Melaka was declared a ‘Developed State’ by the Prime Minister. The declaration was made following the fulfilment of 32 qualifying criteria as a developed economy set by the Organisation of Economic Cooperation and Development (OECD). It marked an ideal ending to the 10-year quest of achieving a developed status known as “Melaka Maju 2010”. Since then, the Melaka State Government has geared up its efforts to promote the use of information and communication technology (ICT) at all municipalities to support the state’s goal to improve the effectiveness and efficiency in delivering public service. The areas of priority (2011-2019) have evolved from (1) a more targeted sectoral implementation of green technology, to (2) a wider coverage of green initiatives at city- state-scale, then (3) the alignment towards a global agenda centred on sustainable development and resiliency which deliberated cross-cutting themes and sectoral coordination, and (4) the most recent focus (2020 and onwards) on localising the state- wide initiatives of high technology and smart city concept. This series of decade-long initiatives has been momentous, leading to the preparation of this blueprint. The chronology of prioritised areas of Melaka from 2011 shows the focus on green technology made to address the emerging issues concerning alternative sources of renewable energy and mitigation of environmental pollution. In 2011, the Melaka Green Technology City State Blueprint 2011-2020 was launched by the state government. The blueprint aimed to guide Melaka towards a cleaner, sustainable, and developed ‘City- State’ in promoting the use of alternative energy sources, environment-friendly public transport, low environmental impact development, better efficiency of resource utilisation, and the implementation of environment-friendly policies. The initiatives followed through until the recent strategic document known as Pelan Strategik Melakaku Maju Jaya 2035 (PSMJ2035) was published in 2021, providing a visionary roadmap to take Melaka ‘Towards A Sustainable State’. An explicit mention was made of adopting smart solutions as the precondition to achieve a Sustainable State in 2035 which refers to this Smart Melaka Blueprint 2035. In moving towards smart cities development, transforming Melaka into a smart state is important not only for the short-term impact but it is a continuous initiative from all Melaka stakeholders.

2011

Melaka Green Technology City State Blueprint 2011-2020

2013

Melaka Green Technology Corporation (MGTC)

2014

Melaka Green City Action Plan

2015

GEF6 Sustainable City Project

2017

Melaka Structure Plan 2035 (RSNMelaka 2035)

2019

Resilient Melaka Document

2020

Smart Grid Awareness & Demo Project

2021

Melaka Sustainability Outlook Diagnostic Report - Pathway to Urban Sustainability

Pelan Strategik Melakaku Maju Jaya (PSMJ) 2035

MELAKA: PRESENT AND FUTURE 02

• Strength, Issues and Challenges • Future Trends • Drivers of Change

SMART MELAKA BLUEPRINT 2035

MELAKA: PRESENT AND FUTURE 40 % 15 years urbanisation rate expected population to increase by year 2035 in the last increase population by Melaka continues to experience rapid urbanisation 86.5 % 1,546,275

The rapid growth in population has fuelled a demand for new urban development, improved infrastructure, and better services and facilities. Melaka 2035 Structure Plan has successfully preserved the original historical site estimated to be less than 0.05 percent of the land (World Bank, 2019). The delicate balance between historical and modernisation is a challenge for the state future development. Embracing smart city solutions pave the way for promoting innovations and digitalisation to address these challenges by 2035. Melaka will retain strong connectivity between quality of life, business and environment.

STRENGTH, ISSUES AND CHALLENGES

Strength

Strategic Location

The Melaka state is strategically located between Kuala Lumpur and Singapore, the two commercial and financial centres and with proper positioning the state has the potential to attract high quality investments, businesses, and talents. The uniqueness and historical value of Melaka will continue to attract tourists. It is located between Phuket in Thailand and Bali in Indonesia which are two popular holiday destinations. Melaka can be the niche port of call for cruise liner servicing these destinations. Melaka could also position itself as Marine Hub for fish landing port for fishing fleets operating in the Indian ocean and south China sea. The economic performance of Melaka over the last 10 years has been impressive. The Gross Domestic Product (GDP) recorded 3.1 percent in 2020 with total GDP revenue of RM41 billion. The services and manufacturing sectors dominated Melaka’s economic landscape, contributing 48.6 percent and 37.3 percent, respectively, followed by agriculture (11.2 percent), construction (2.4 percent), and mining and quarrying (0.1 percent). Melaka attracts investments of RM4.26 billion between January and June 2021. However, due to the uncertainties of the global economy and the COVID-19 pandemic, Melaka’s gross domestic product (GDP) performance in 2020 declined by 5.9 percent. Melaka’s unemployment rate in 2020 was the second lowest after Putrajaya, which is 2.2 percent compared to the national rate of 4.5 percent. In term of its fiscal sustainability, Melaka received an allocation of RM369 million under the 12th Malaysia Plan for the implementation of 169 projects and programmes that was planned through 2021. The budget highlighted a total of 171 development projects with a total cost of RM5.534 billion for implementation involving RM574 million to be disbursed in 2022. Melaka has a good policy in place that governs the permissible uses of debt financing, debt limits, and the prioritisation of debt repayment over other obligations.

150km

240km

2 hours

3 hours

K. LUMPUR

MELAKA SINGAPORE

Tourist Arrival

18.72mill

5.05mill

2.67mill

2019

2020

2021

37.3%

48.6% Services

Manufacturing

GDP by sector

Agriculture 11.2%

0.1%

Mining & Quarrying

2.4%

Construction

Source: PSMJ, 2022

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