KUALA LUMPUR: The Defence Ministry is working with Mimos Berhad to set up a secure information network to protect sensitive Information and Communication Technology (ICT) sites from hackers.

Defence Minister Datuk Seri Najib Tun Razak said a two-year pilot project would involve the creation of secure network infrastructure at six armed forces sites.

However, he declined to name the six ministry sites, citing security concerns.

The minister said all exchange of data among the armed forces' three services would be connected via this new secure ICT network to the Ministry, and ensuring that only the relevant people have access to defence-related information.

He added the costs involved in carrying out the project would be significant once it covers the protection of sensitive information belonging to the armed forces.

"We decided that to enhance the armed forces computer-related security, we should build a fully independent computer network system that is secure from unwanted intrusions.

"The system is expected to cover the force's computer system at least within the next five years," Najib told a press conference after presenting a keynote address at a seminar themed "Information Security in the Age of Terrorism" organised by Jagat Technology Sdn Bhd here.

Najib said the ministry, through the new ICT infrastructure, would also have the capability to respond to cyber attacks and intrusions and executing damage control to ensure the continued protection of sensitive data.

He said the ministry has also formed the cyber division to develop the capability to encounter cyber threats.

Earlier in his address, Najib said it would not be long before the world realised that there might be a merger between terrorists and computer hackers.

He said many countries, including the wealthiest and most advanced, had felt the threat and vulnerabilities in their usage of ICT in their daily activities.

Najib said as technological innovations create more sophisticated tools for hacking and cracking, they could also help the creation of cyber terrorism.

"Virtually any person on the Internet can acquire the hardware and software to attack systems and network infrastructure.

"Hackers themselves can be a source of expertise for any nation or terrorist organisations that is interested in developing an information warfare capability," Najib added.

Najib said countries should be sensitive that terrorists could use the cyberspace to facilitate the traditional forms of terrorism.

Websites were used to spread messages and recruit supporters and the Internet as a means to communicate and coordinate their course of actions, he added.

"While cyber terrorism does not pose an imminent threat to our country, this could change. Hence, the more reason for all of us to be vigilant and look into curbing these possibilities," he added.

On losses to computer hacking, Najib said a survey by the Science Application International Corp in 1996, found that 40 major US corporations reported losing over US$800mil (RM3.04bil) to computer break-ins.

"Another survey found that the Pentagon's systems that contain unclassified but sensitive information had been accessed via illegal networks 250,000 times and only 150 of the intrusions were detected," he added.

In Malaysia, Najib said the country recorded 17,831 infrastructure attacks by the Nimda worm and 68,552 attacks by the Code Red virus.

"The disruption caused by the Nimda worm alone cost RM22mil to eradicate and repair. This cost however, do not include losses to businesses opportunities," he added.

Najib said it was comforting to note that the country had yet to experience serious security threats by terrorists via the Internet.

He added that it appeared that they generally lacked the motivation to cause violence and economic or social harm.

Najib said while the world needed to recognise the danger of cyber terrorism, there was also a need for a balanced approach to prevent paranoia.

He added no single nation had the capability to track the cyber terrorists' trail across the globe.

"Countries should start sharing information on potential threats and weaknesses and develop processes for overcoming them.

"The collaboration will have the include the harmonisation of laws on terrorism and effective enforcement.

"The Government is committed to embrace and develop ICT, but at the same time ensuring that this is done in a manner which is beneficial and saves the nation's sovereignty, security and vital interests," he added.