Transcript development planning and process in malaysia

ECONOMIC PLANNING UNIT
World Bank PSD Conference
Malaysia’s Economic
Development with emphasis
on Public-Private
Collaboration
By
Dato’ Abd. Rahman Husin,
Deputy Director General (Sectoral),
Economic Planning Unit,
MALAYSIA
May 2006
BRIEFING OUTLINE
1 Malaysia, EPU &
Development
Planning
3 Privatization
2
Public-Private Sector
Collaboration –An
Overview
4
Sectoral Perspective
- Industrial Clusters
5 Conclusion
2
MALAYSIA AND ETHIOPIA
Country Profile
MALAYSIA : GEO-POLITICAL
STRUCTURE
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




Independence : 31 August 1957
Form of State : Federated constitutional monarch
Administrative Division : 13 states and 3 Federal Territories
Total area :
330,242 sq km
 Land :
329,042 sq km
 Water :
1,200 sq km
 (Ethiopia :
1.1 million sq km – land area)
Climate : Tropical; annual southeast (April-Oct) and northeast
(Oct-Feb) monsoons
Land Use :
 Arable land :
3%
 Permanent crops :
12 %
 Forests :
68 %
 Others :
17 %
Language : Bahasa Malaysia (Official), English, Chinese, Tamil
Religions : Islam, Buddhism, Hinduism, Christianity & Others
Map
MAIN FUNCTIONS OF EPU
• Formulate policies and strategies in development planning
• Prepare long and medium term plans
EPU MALAYSIA
• Prepare development programmes & project budget
• Monitor & evaluate the achievement of development
programmes & projects
• Advise government on economic issues
• Initiate & undertake necessary economic research
• Plan & coordinate the privatization programme & evaluate its
achievement
• Coordinate Malaysia’s involvement in the development of
the Growth Triangle Initiatives
• Initiate & coordinate bilateral & multilateral assistance
• Manage the Malaysian Technical Cooperation Programme
5
ORGANIZATIONAL STRUCTURE OF THE EPU
Director General
Deputy Director General
(Macro Planning Division)
Sections directly under the
Director General
Deputy Director General
(Sectoral Planning Division)
Macroeconomics
Secretariat to the
National Economic
Action Council
Industry & E. Services
Distribution
Regional Economics
Secretariat to the
Foreign Investment
Committee
Environment
General Services
Knowledge Economy
Legal Adviser
Human Resources
Infrastructure & Utilities
Social Services
Agriculture
Energy
Development Budget
Privatization
Technical Services
No. of officers : 250
No. of staff : 150
Total : 400
External Assistance
Planning Horizon . . .
PLANNING HORIZON AND
MAJOR POLICY EVOLUTION



LONG TERM PLANNING
– Vision 2020, 1991-2020
– First Outline Perspective Plan (OPP1), 1971-1990
– Second Outline Perspective Plan (OPP2), 1991-2000
– Third Outline Perspective Plan (OPP3), 2001-2010
MEDIUM TERM PLANNING
– Five-year development plans, such as the Ninth
Malaysia Plan (2006-2010)
– Mid-term review (MTR) of the five-year Plans
SHORT TERM PLANNING
– Annual Budget
7
Major Economic Policies
Vision 2020
TOTAL DEVELOPMENT
National Mission
2006 - 2020
National
Development
Policy (NDP)
New Economic
Policy (NEP)
Post-
independence
1957-70
Performance & Impact
Oriented Development
to achieve the goals of
Vision 2020
Balanced
Development,
1991-2000
Growth with Equity, 1971-90
• Laissez-faire / export-oriented
• Economic and rural development
Transformation From an Agro-based to an Industrial-based Economy . . .
(GDP in RM billion at 1987 prices / Percentage to Total in italics)
RM billion
300
250
200
150
57.6 %
58.1%
31.9 %
30.8 %
31.4 %
8.9 %
8.7 %
8.2%
53.9 %
100
50
0
12.2 %
37.5 %
26.7 %
1970
Agriculture
43.1 %
46.8 %
17.2 %
24.6 %
21.0 %
16.3 %
1980
1990
2000
Construction
Manufacturing
2003
Mining
2005
Services
Diversification Of Exports . . .
(% to Total Exports)
Rubber
33.4
Manufactures
80.5
Tin
19.6
Forestry
16.3
Others
Oil & gas
9.8 Palm Oil
3.9
Manufactures
5.1
11.9
1970
RM 5,163 million
(US$2,065 million)
Palm Oil
Oil & gas
Others 3.6
9.2
Forestry
Tin Rubber 4.2
1.2
1.1
0.2
2005
RM 533,790 million
(US$141,588 million)
ECONOMIC PERFORMANCE
Real GDP Growth . . .
Average 1971- 80
Average 1981- 90
Average 1991- 2000
Average 2001- 05
7.5 %
5.8 %
7.1 %
4.5 %
2000
2001
2002
2003
2004
2005
2006e
8.5 %
0.3 %
4.4 %
5.4 %
7.1 %
5.3 %
6.0 %
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DEVELOPMENT PLANNING
The Guiding Parameters
 Open economy
 Mixed system
 Multi racial society
A
federation
12
DEVELOPMENT PHILOSOPHY
Partners In Development . . .
through a MIXED ECONOMIC SYSTEM of free
enterprise but with active government
support and direction
The GOVERNMENT provides the broad
thrusts and sets direction for the whole
economy, and ensures the achievements of
socio-economic goals
The PRIVATE SECTOR is free to operate and
given appropriate policy, institutional and
infrastructural support.
13
DEVELOPMENT PLANNING MACHINERY
PARLIAMENT
Cabinet Ministers
National Economic
Action Council (NEAC),
National Economic
Consultative Council
(NECC)
Secretariat
Draft
Policy
National Development
Planning Committee
Draft
Economic Planning Unit
Private Sector
Dialogue
National
Action
Council
National Planning Council
Proposal
Implementation &
Coordination Unit
General framework
Inter-Agency Planning Group (IAPG)
Proposal
Circulars
Federal Ministries & Agencies
Proposal
Consultations
Circulars
State Governments
Private Sector
PUBLIC-PRIVATE COLLABORATION
Malaysia Incorporated Policy . . .
Launched in 1983 ~ marked the introduction of
structured public-private sector collaboration
 Stresses the importance of cooperation between
public and private sectors
 Establishment of several consultative panels/
dialogues comprising members from the public and
private sector
 Budget & MITI dialogues
 Malaysian Business Council
 Government began instituting major policy
initiatives
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15
MAJOR POLICY INITIATIVES

SUPPORTING PRIVATE
SECTOR INITIATIVES
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Economic liberalisation & deregulation
Improving investment policies & incentives
Ensuring a business-friendly environment
Administrative & institutional improvements
 One-stop centres
 Systems & procedures for licensing
 Client’s Charter
 Productivity improvements – TQM, KPIs
 Public service delivery
Providing an integrated industrial
infrastructure
16
TOWARDS 2020 ~ THE NEXT PHASE
Ninth Malaysia Plan, 2006 – 2010
The National Mission, 2006 – 2020
5. Strengthening the
country’s institutional &
implementation
capacity ~ establish a
more effective
implementing &
monitoring mechanism
4. Improving the
standard and
sustainability of the
quality of life
1. Moving the
economy up the
value chain
Five Key
Thrusts
2. Raising the capacity
for knowledge and
innovation, and
nurturing “first class
mentality”
3. Addressing
persistent socioeconomic inequalities
constructively and
productively
To achieve the goals & objectives of Vision 2020
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THE NATIONAL MISSION,
2006-2020
Thrust
1
To move the economy up the value chain
Increasing productivity, competitiveness & value-add
 Generating new sources of wealth & job creation in technologyand knowledge-intensive sectors

 Giving
a lead role to the private sector, &
increasing private sector investment by
providing an enabling environment for
doing business, enhancing SMEs
development, increasing public-private
partnerships as well as attracting targeted
high-quality FDI
 Inculcating a culture of high performance
& excellence in public & private sectors
including GLCs

Expanding market for Malaysian products and services
18
THE NATIONAL MISSION,
2006-2020
Thrust
5
To strengthen the institutional & implementation
capacity
 Improving
public services delivery by
strengthening governance, streamlining
administrative processes and measuring
performance
 Improving usage and cost-efficiency of public
sector funds by upholding financial prudence
as well as improving the monitoring of
implementation
 Addressing actual and perceived corruption in
both the public and private sectors
 Enhancing corporate governance and delivery
of private sector services by improving legal
and regulatory frameworks
 Strengthening the role of Parliament, media &
civil society
19
ECONOMIC PLANNING UNIT
PRIVATIZATION
20
PRIVATIZATION POLICY
PRIVATIZATION POLICY
• Privatization policy was launched
in 1983
• It represented a policy shift from
public sector-led to private
sector-led growth
• The policy has been an integral
part of the national development
policy of Malaysia
PRIVATIZATION POLICY
Objective of Privatization . . .

Reduce financial & administrative
burden of the Government
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Reduce public sector size & direct
participation in the market place
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Promote competition, efficiency &
productivity
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Accelerate economic growth

Meet the targets of NEP, NDP & NNM
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SCOPE OF PRIVATIZATION
Airports RM10.0 bn /
USS2.9 bn
Ports RM7.8 bn
/US$2.1bn
Urban
Transportation RM12
bn/US$3.2bn
Telecommunications/
multimedia RM6.6 bn
/US$1.7bn
Water treatment
Power RM42.3 bn
/ US$11.1bn
Roads/highways
RM31.6 bn/US$8.3bn
PRIVATIZATION METHODS
Existing Projects/Activities :
 Outright sale (assets or shares)
 Lease
 Management-Buy-Out
 Management Contract
 New Projects :
 Build-Operate-Transfer (BOT)
 Build-Operate (BO)
 Build-Lease-Transfer (BLT)/Build-Transfer (BT)
 Guiding Principle : Choose a feasible method which maximize
private sector investment
 Administrative machinery :
 Centralized planning and processing at the EPU
 Decentralized implementation by the ministries and State
Governments
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 Standardization of terms and conditions of privatization
PRIVATIZATION POLICY

PRIVATIZATION POLICY
PRIVATIZATION ACHIEVEMENTS SINCE 1983
• Total privatized projects
–Existing projects
–New projects
• Workers transferred to the private sector
485
346
139
113,200
• Savings (RM billion)
–Operating expenditure
–Development expenditure
–Proceeds from sale of Government equity
7.8
154.0
28.9
• KLSE market capitalization (Oct 2005)
–RM billion (for 40 privatized entities)
–% to total market capitalization
174.1
23.0
25
PRIVATIZATION POLICY
PRIVATIZATION POLICY - LESSONS LEARNT
• Need strong commitment by the Government
• Strong policy statements on private sector as the
engine of growth
• Private sector must possess a certain level of
expertise and readiness to undertake project &
investment risks
• Require a well-developed financial market to
support large scale investment
• Need proper planning, monitoring & coordination
to ensure success in implementation
• Necessary to undertaken rigorous evaluation on
project viability
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ECONOMIC PLANNING UNIT
INDUSTRIAL
CLUSTERS –
PUBLIC-PRIVATE
PARTNERSHIP
27
PUBLIC-PRIVATE PARTNERSHIP
E&E Industrial Cluster
• Major driver in transforming Malaysia from an
agricultural to industrial exporter
• Took off in the early 1970s with export-oriented
industrialization strategy
FDI
• Attractive investment climate: Incentives
 Investment Incentives Act 1968 & Industrial
Coordination Act 1975 provided better incentives to
attract FDI in E&E sector
 Key support institutions, infrastructure & services
 Industrial Infrastructure
 Utilities & Telecommunications
 Air Cargo & Port Facilities
 HRD – PSDC, Industrial Training Institutes,
Universities and educated low-wage labour
• Leading industrial subsector
 28% of manufacturing value added (2005)
 65.8% of exports of manufactured goods
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 26.8% of total manufacturing sector employment
PUBLIC-PRIVATE PARTNERSHIP
Enhancing E&E Industrial Cluster –
Development Strategies
• Moving the value chain up by encouraging
MNCs to shift more sophisticated/high tech
operations to Malaysia
• Deepening supply chain by developing
capabilities in domestic firms
• Increasing value added through the
technology acquisition & development
• Generating synergy with the development
of ICT & multimedia industry
• Nurturing global Malaysian-owned
companies e.g. Globetronics, ENG
Technology
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ECONOMIC PLANNING UNIT
CONCLUSION
30
ROLE OF THE PUBLIC SECTOR
Strategic integrator & facilitator of development efforts in
addition to its traditional role of administrator & provider
of basic socio-economic infrastructure
 Develop long, medium and short term plans in pursuit of
national socio-economic development goals
 Responsible for macro and socio-economic management
towards socio-political, macroeconomic and financial
stability
 Enhance liberalization and deregulation towards creation
of a conducive environment for private investment
 Charting new directions and strategies for growth
 Custodian of public goods and spearheading social
programmes
 Governance by networks – collaborate with private firms,
industry associations and NGOs & engaging citizens
CONCLUDING REMARKS

CONCLUDING REMARKS
ROLE OF THE PRIVATE SECTOR


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Provide dynamism in spearheading the economy
and be the engine of growth
Improve efficiency & productivity towards the
creation of a competitive private sector
Engage foreign investors in mutually beneficial
partnership and joint ventures
Embark on R&D and innovation activities for
wealth creation
Develop long, medium and short term plans in
pursuit of national goals
CONCLUDING REMARKS
CRUCIAL ELEMENTS FOR SUCCESS
•
Strong political and public sector
support
•
Sufficient level of empowerment
•
Close collaboration among central
agencies Ministries and implementing
agencies
•
Strong partnership between public and
private sectors
•
Effective communication strategy
33
ECONOMIC PLANNING UNIT
THANK YOU
www.epu.jpm.my
34
ECONOMIC PLANNING UNIT
HYPERLINKED
SLIDES
35
NATIONAL MISSION,
2006-2020
Thrust
2


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
To raise the country’s capacity for knowledge and
innovation and nurture ’first class mentality’
Promoting Islam Hadhari as a comprehensive & universal
development framework for the nation
Undertaking comprehensive improvement of the education
system, from pre-school to tertiary level, from the aspects of
curriculum and teaching to school facilities, with a special focus
on raising the standard of schools in rural areas
Enhancing national schools to become the people’s “school of
choice”
Producing universities of international standing and ensuring that
tertiary institutions meet the needs of employers
creating more avenues for skills development, training and
lifelong learning for the labour force at all levels and for all ages,
including in ICT
Providing an environment and innovation system which
encourages top-quality R&D and its commercialisation
Refining and implementing programs which encourage the
development of a strong moral and ethical culture as
encapsulated in the National Integrity Plan
Empowering youth & women to participate in national
37
growth and development
NATIONAL MISSION,
2006-2020
Thrust
3








To address persistent socioeconomic inequalities
constructively & productively
Eradicating hardcore poverty by 2010 as well as reducing
overall poverty
Reducing disparities between rural and urban population &
among states & regions via sustainable income-generating
avenues & by improving access to basic needs such as
housing, education, healthcare, utilities & transportation
Developing less developed regions through regional growth
centres
Bridging the digital divide
Addressing inter- and intra-ethnic disparities, particularly by
raising incomes through the enhancement of skills &
capabilities
Promoting equal opportunities in employment towards
reducing disparities in occupation & income as well as
enhancing integration among the ethnic groups
Creating a new generation of competitive Bumiputera
entrepreneurs & enterprises
Reviewing past restructuring policies and programmes to
evaluate their effectiveness and impact, and to focus
38
future policies and programmes on merit and need
NATIONAL MISSION,
2006-2020
Thrust
4
 Ensuring
To improve the standards and sustainability of the
quality of life
better protection of the environment
and more efficient usage of natural resources
 Enhancing energy sufficiency and efficiency,
including diversifying sources of energy
 Increasing the efficiency of water services
delivery
 Providing better public transportation to relieve
congestion and reduce fuel usage
 Improving access to and quality of healthcare
and affordable housing
 Ensuring public safety and security
 Enhancing the development and promotion
39
of Malaysian culture, arts and heritage
Investment Incentives . . .
SUPPORTING PRIVATE
SECTOR INITIATIVES






Pioneer status or Investment tax
allowance for manufacturing companies
Incentives for small- & medium-scale
enterprise
Training and R&D Grant
Incentives for high technology
companies
Incentives for strategic projects
Incentives for R&D
Back
Other Incentives
40
Investment Incentives . . .
SUPPORTING PRIVATE
SECTOR INITIATIVES




Incentives for software development
Pre-packaged incentives
Incentives for exports
General incentives
 Industrial building allowance
 Infrastructure allowance
 Import duty exemptions for:
o raw materials / components and
o equipment & machinery
41
Manufacturing Investment in Approved Projects, 2001- 2005
Capital Investment (RM million)
Total
Industry
Number
Resource-Based
Food Manufacturing
Beverages and Tobacco
Wood & Wood Products
Furniture and Fixtures
Paper, Printing and Publishing
Chemical and Chemical Products
Petroleum Products
Natural Gas
Rubber Products
Plastic Products
Non-Metallic Mineral Products
Non-Resource-Based
Textiles and Textile Products
Leather and Leather Products
Basic Metal Industry
Fabricated Metal Products
Machinery Manufacturing
Electronics and Electrical Products
Transport Equipment
Scientific and Measuring Equipment
Others
Total
Domestic
Foreign
1,948
369
26
193
233
123
288
61
2
144
358
151
2,771
178
12
163
487
443
1,051
353
84
93
25,612 (46.2)
3,469 ( 6.3)
142 ( 0.3)
2,267( 4.1)
1,363 ( 2.5)
6,418 (11.6)
5,004 ( 9.0)
1,787 ( 3.2)
50 ( 0.1)
1,442( 2.6)
2,050( 3.7)
1,620( 2.9)
29,303 (52.8)
1,171 ( 2.1)
57 ( 0.1)
9,308(16.8)
2,059( 3.7)
1,961 ( 3.5)
8,084(14.6)
6,157(11.1)
506( 0.9)
559( 1.0)
23,903 (31.0)
2,303 ( 3.0)
470 ( 0.6)
943 ( 1.2)
297 ( 0.4)
4,850 ( 6.3)
3,025 ( 3.9)
6,289 ( 8.2)
0 ( 0.0)
963 ( 1.2)
1,760 ( 2.3)
3,005 ( 3.9)
53,068 (68.8)
947 ( 1.2)
17 ( 0.0)
5,502( 7.1)
2,177 ( 2.8)
1,535 ( 2.0)
35,290 (45.7)
5,388( 7.0)
2,212( 2.9)
181 ( 0.2)
49,516 (37.3)
5,772 ( 4.4)
612 ( 0.5)
3,210 ( 2.4)
1,659 ( 1.3)
11,268 ( 8.5)
8,029( 6.1)
8,076( 6.1)
50 ( 0.0)
2,405( 1.8)
3,810( 2.9)
4,625( 3.5)
82,371(62.1)
2,117( 1.6)
74 ( 0.1)
14,810 (11.2)
4,236 ( 3.2)
3,496 ( 2.6)
43,374 (32.7)
11,545 ( 8.7)
2,718 ( 2.0)
740 ( 0.6)
4,812
55,474
77,152
132,626
42
SUPPORTING PRIVATE
SECTOR INITIATIVES
Providing An Integrated
Industrial Infrastructure
TYPES

Industrial Zones

Special Commercial Premises

SME Industrial Estates

Technology Parks

Industrial Corridors

Business Premises
43
PUBLIC-PRIVATE PARTNERSHIP
e-ENABLE SUPPLY CHAIN MANAGEMENT
• RosettaNet Malaysia - launched in 2002
• Joint initiative by Fed agencies (MITI,
SMIDEC), State agencies (PDC),
Manufacturers Association (FMM), MIMOS
MNCs, SMEs & Solution Providers
• Enables Malaysian suppliers to link to global
E&E supply chain
• Reduce inventory costs, time to market &
lower transaction costs
• No. of companies successfully implemented
RosettaNet Standards increased from 33 in
2004 to 327 in Mac 2006
44
ECONOMIC PLANNING UNIT
ADDITIONAL SLIDES
45
RosettaNet Malaysia Partners include
…
Solution Providers :
Hewlett-Packard Sales
Microsoft
Oracle
Penang Network Services
Cardos Automation System
KarenSoft Technology*
JSP Consulting
e-Business
LK Solutions
Tradenex.com
B2B Commerce
NDT Software Consulting
SCS Computer Systems
SAP Malaysia*
Formfill Australasia
Dagang Net
NEC
BGlobal
MnEBay
GridNode
Advanced Professional (India)
Rank Alpha
Sterling Commerce
J.D. Edwards
PeopleSoft
Novell
Global EXchange
Foreign MNCs :
Intel
Dell
Inventec
IBM
Infineon
Fairchild
Ericsson
Kemet
Seagate
LSI Logic
Logistics Providers:
Malaysian Companies :
LKT Industrial
Globetronics
Public Packages
BCM Electronics
TFS Electronics (Unico)
1st Silicon
Polytool Tech
Leong Bee Soo Bee
Ire-Tex
D’nonce
San Yong Enterprise
Federal Packages
Genting Sanyen
Priority Cargo
Associations & Clubs:
FMM
Government:
MIMOS,MITI,SMIDEC,PDC, MECM, EPU
Milestones
1996
Phase 1
Create the MSC
2003
2020
2010
The MSC: Next Leap
Phase 3
Grow MSC into a global
ICT hub
• Web of corridors
• 4,000 MSC Status & 250 MSC
Bill of Guarantees
Global companies.
50 world-class
• 100,000 new jobs & RM69 bil
companies
revenue & RM2.5 bil exports
• Enhance ICT industry cluster
Launch 7 flagship
applications
• Enhance multimedia
applications
World-leading
framework of
• Leadership towards
cyberlaws
harmonized global
framework of cyber laws
Cyberjaya as worldleading intelligent city • Link to world leading
intelligent cities
Transform Malaysia into a
knowledge society
• 1 Corridor
•
•
•
•
•
• All of Malaysia
Attain leadership in the
Knowledge Based
Economy
ICT & Multimedia Hub: MSC Milestones
• 500 world-class companies
• Global test-bed for new
multimedia applications
• International CyberCourt of
Justice in MSC
• Become net ICT
exporter
• Cybercities/cybercentres
linked to global information
highway
47
MSC Phase 1
48
MSC Next Leap (2004 – 2010)
Rollout MSC Cybercities/Cybercentres….
Kulim HiTech Park
Bayan Lepas,
Penang
49
Flagship Applications
50
Companies in MSC
INSOURCE
Services delivered internally
• Telekom Malaysia
• Petronas
OUTSOURCE
Partner with external provider
• User: BCB
• Provider: EPIC-I (EDS)
LOCAL
Target
Market
Global
/Offshore
Shared Services
Pooling of
resources to
render common
services costeffectively,
leveraging on
economies of
scale
51
• Malaysia is ranked 3rd globally for global
outsourcing location attractiveness
• Well developed, low-cost infrastructure and
strong government support
• Created 8,000 high-value job opportunities in MSC
• SSO MSC created 12,000 jobs by end of 2005
Source: A.T. Kearney’s2004 Offshore Location Attractiveness Index: Making Offshore Decisions
52
SUPPORTING PRIVATE
SECTOR INITIATIVES
Factor Conditions for Growth of MSC &
Public-Private Sector Collaboration




Firm Government commitment
Comprehensive package of incentives

Bill of Guarantees

Infrastructure

Cyberlaws

Incentives
Competitive cost of doing business
Emphasis on human capital development
Cont…
53
Cont…
SUPPORTING PRIVATE
SECTOR INITIATIVES
Factor Conditions for Growth of MSC &
Public-Private Sector Collaboration

Effective Institutional Mechanisms for Policy
Directions, Implementation, Monitoring &
Coordination
 International Advisory Panel
 Implementation Council
 Dedicated ‘one-stop’ agency – Multimedia
Development Corporation (MDeC) with
investor-friendly mindset to facilitate
private sector investment
54
SUPPORTING PRIVATE
SECTOR INITIATIVES
Bill of Guarantees
• Provide a world-class physical and information
infrastructure
• Allow unrestricted employment of local and
foreign knowledge workers
• Ensure freedom of ownership by exempting
companies with MSC Status from local
ownership requirements
• Give the freedom to source capital globally for
MSC infrastructure, and the right to borrow
funds globally
• Provide competitive financial incentives,
including no income tax for up to 10 years or
an investment tax allowance, and no duties on
import of multimedia equipment
55
Cont…
SUPPORTING PRIVATE
SECTOR INITIATIVES
Cont…
Bill of Guarantees
• Become a regional leader in intellectual
property protection and cyberlaws
• Ensure no Internet censorship
• Provide globally competitive
telecommunications tariffs
• Tender key MSC infrastructure contracts
to leading companies willing to use the
MSC as their regional hub
• Provide an effective one-stop agency –
Multimedia Development Corporation
56
PUBLIC-PRIVATE PARTNERSHIP
Biotechnology Industry Cluster
• Position biotechnology as a new engine of growth &
wealth creation
• Transform and enhance value creation of the
agriculture sector through biotechnology
• Capitalise on strengths of biodiversity to commercialise
discoveries in health-related products
• Ensure growth opportunities in industrial bio-processing
and bio-manufacturing
• Establish R&D centres of excellence and accelerate
technology development via strategic acquisitions
• Build human resource capability
• Create an enabling financial, legislative and
institutional framework
• Foster greater public-private sector collaboration
through Bio-Nexus network
57
BIOTECHNOLOGY ACTION PLAN
PHASE I
(2005-2010)
Capacity
Building
 HR Development
 Est. Advisory and
Implementation Councils
 Est. Biotechnology Corp.
 Capacity Building in R&D
 Develop Agricultural,
Healthcare and Industrial
Biotechnologies &
Bioinformatics
 Develop Legal and IP
Framework
 Regional Biotechnology
Hubs
 Develop BioNexus
Malaysia as a brand
 Promote FDI participation
 Initial job and industry
creation
PHASE II
(2011-2015)
Science to
Business
 Develop expertise







in drug discovery
& devt.
New Products
Technology
Acquisition
Intensify FDI
participation
Intensify Spin-off
Companies
Strengthen Local
and Global Brands
Develop
Capability in
Technology
Licensing
Job Creation
PHASE III
(2016-2020)
Global
Business
Competitiv
e&
Leading
Biotech
Industry
 Consolidate




Strengths and
Capabilities in
Technology
Further Develop
Expertise in Drug
Discovery and Devt.
Leading Edge
Technology Business
Create greater value
through Global
Malaysian Companies
Re-branding of
BioMalaysia as Global
Hub
Generating New Sources of Growth
Growth Areas
• Agro-biotechnology
– Higher value added crops
and foods
– Natural products
• Health-Biotechnology
– Bio-Generics
– Diagnostics
– Vaccines
• Industrial Biotechnology
– “Green” Chemistry
– Biocatalysts
– Biomaterials
– Bio-Manufacturing
Competitive Advantage
• Strong Government support
• Well established agro and
medical research base
• One of 12 mega diversity
countries
• Create niche market
• Built upon local capability
• Demand for green
technology applications
• Potential/new markets e.g.
EU
• Environmental concerns
59
Bio-Nexus Network
IPN
Dengkil
IAB
UPM/MARDI
Agro-bio
Healthcare-bio
Industry
Bio-Nexus
Industrial-bio
NINPVB
Enstek, Nilai
Natural Products
Vaccines
Genome Centre
UKM
Food Cluster
Interactions between
institutions & industry
Platform Technology 60
PUBLIC-PRIVATE PARTNERSHIP
Financial Services Cluster
Labuan IOFC
• 5,152 offshore companies from 93
countries
• LOFSA – a one-stop agency
• Promoting Labuan as a unique IOFC
with specialization in Islamic financial
products & services
• Strengthening legislation & guidelines
• Enhancing competitiveness to sustain
attractiveness
• Incentives to attract strong foreign
entities with global market linkages
61
PUBLIC-PRIVATE PARTNERSHIP
Palm Oil Industrial Cluster (POIC)
• Lahad Datu POIC - to add value to the oil
palm industry, create jobs & business
opportunities
• Designated palm oil industrial cluster &
logistic hub for east ASEAN
• Developed by POIC Sabah Sdn. Bhd. with
support from Federal Government
• Equipped with adequate physical
infrastructure to attract private investment
in upstream & downstream industries
62
PUBLIC-PRIVATE PARTNERSHIP
Halal Hub
• Development of halal product industry
cluster to capture the growing share of the
world halal market potential
• Credibility and worldwide recognition of
JAKIM’s halal certification system and logo
• Availability of needed resources and strong
government support
• Establish Halal Industry Corporation
• Provision of various incentives as well as
programmes for improvement in product
quality and standards, training, promotion,
branding & market access
• International M’sia Halal Showcase (MIHAS)
63
TIGeR’s Supply Chain Model
Global Buyers
Government
1st Tier Suppliers
2nd Tier
Suppliers
Service Providers
Vertical Integration of local suppliers
Govt. Agencies
Horizontal Integration with other
businesses, services and
government into the GSC