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

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).

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-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).

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.

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.

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
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
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
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.

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 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 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 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 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.