California's Silicon Valley, the world's biggest technology gateway, has chosen Selangor's I-City project in Shah Alam to develop Malaysia's first digital communities.

In thumbing their nose at the touted Cyberjaya project, the Silicon Valley operators are now in discussion with the Selangor government to develop a RM2 billion 'Plug and Play' project.

Menteri Besar Abdul Khalid Ibrahim gave these details when tabling the Selangor Budget 2010 this morning in the legislative assembly.

He said the project will be implemented based on current infrastructure in I-City which includes:

  • Giga connection between the fastest wireless broadband systems in the region

  • Full-fibre optics networking

  • More than 100 percent power support system

  • Integrated communication system

  • Broadband speed of 1 gigabyte per second (1gbps)

khalid ibrahim 301009 "Shah Alam and Silicon Valley will also get to strengthen our relationship as twin operators so that technological innovation can be promoted among the people in Selangor," he said.

The RM1.3 billion budget, themed ‘Negara Maju, Rakyat Sejahtera', is RM100 million (7.14 percent) less than the RM1.4 billion for the current fiscal year.

Of this, RM709.6 million (54.58 percent) is for operating expenditure and RM590.4 million (45.42 percent) for development expenditure.

Key items under the operating expenditure are supply and services (RM310.3 million); emoluments (RM271.8 million); grants and fixed payments (RM121.7 million); and RM4.8 million for the purchase of assets.

Under the development allocation, RM286.9 million will go towards infrastructure; RM219.5 million to the social sector; RM76.2 million to all economic sectors; and RM7.68 million to the municipal sector.

Lower tax revenue

In his speech, Abdul Khalid projected that tax revenue for 2010 will be reduced to RM460 million, or RM2.98 million (0.62 percent) lower than the current fiscal year.

Non-tax revenue will be reduced to RM422.6 million, which is RM107.3 million (20.25 percent) lower.

"For non-revenue income, the state will get RM417.3 million - an increase of RM10.3 million (2.53 percent) over Budget 2009," he said, explaining that the state's income has decreased because of the global economic crisis.

Despite the reduced resources, the state government has pledged that Budget 2010 will be shared among all levels of society.

"Reduced allocations cannot be used as an excuse not to meet the needs of the people. The state government is determined to do its best in delivering its vision for Selangor as a progressive, harmonious and humanitarian state," he added.