17. unik- biotechnology_for_innovation policy_ appendix 2 final report_110429 -seen

8/2/2019 17. UNIK- Biotechnology_for_Innovation Policy_ Appendix 2 Final Report_110429 -SEEN

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Selected Dynamic Innovation

National Innovation Strategy

Biotechnology

29 April 2011


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National Innovation Policy: Biotechnology

Confidential Final Report Page 2

Contents

TABLE OF CONTENTS

LIST OF EXHIBITS ...................................................................................................................... 3

DISCLAIMER ............................................................................................................................... 4

INTRODUCTION .......................................................................................................................... 5

SECTOR DEVELOPMENT FOCUS ............................................................................................. 7

CREATE REGIONAL CHAMPIONS .......................................................................................... 18

TRANSFORMATION EXECUTION FRAMEWORK .................................................................. 21


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Exhibit 1 Accelerating Revenue Growth through Innovative Transformation 6

Exhibit 2 Benefits of Adopting Agricultural Biotechnology to the Rakyat and Business 7

Exhibit 3 Intensifying Agricultural Biotechnology Development 10

Exhibit 4 Benefits of Adopting Industrial Biotechnology to the Rakyat and Business 12

Exhibit 5 Renewable Energy Potential in Malaysia 14

Exhibit 6 Accelerating Industrial Biotechnology Development 15

Exhibit 7 Suggested Criteria in Selecting High Potential Performing Companies 18

Exhibit 8 Infrastructure Support Development 19

LIST OF EXHIBITS


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The publication of this report contains information in summary form and is therefore intended for

general guidance only. It is not intended to be a substitute for detailed research or the exercise

of professional judgement. Neither Unit Inovasi Khas (UNIK) nor the party assisting UNIK in

the preparation of this can accept any responsibility for loss occasioned to any person as a

result of any material in this publication. On any specific matter, reference should be made to

the appropriate advisor.

Exchange Rate Conversion

MYR AUD RMB INR SGD KRW

USD 1.0 3.5 1.09 6.83 46.45 1.39 1170.18

DISCLAIMER


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The Malaysian Government has identified biotechnology as one of the core technologies to

accelerate the transformation of Malaysia into a knowledge-based economy and an

industrialised nation by year 2020. For this purpose, the National Biotechnology Policy (NBP)

was launched in 2005 to provide a development framework for the industry represented by

agricultural, healthcare and industrial biotechnology sectors. The NBP is to be implemented

over three phases: Phase I Capacity Building (2006-2010); Phase II Science to Business1

(2011-2015); and Phase III Global Business (2016-2020). The biotechnology industry is

expected to contribute 2.5% towards the national Gross Domestic Product (GDP) by 2010; 4%

by 2015; and 5% by 20202.

In 2010, a Malaysian Biotechnology Country Report 2009/2010 (Country Report) was launched

to provide an overview of biotechnology industry development in Malaysia since 2005. The

Country Report reported that the Malaysian biotechnology industry has recorded a total

investment of USD1.3 billion (RM4.5 billion) by 2009. 57.8% of this investment was funded by

the Government while the remainder was funded by private sector. The contribution of the

biotechnology industry towards the GDP in 2009 was estimated at 2%. In terms of total

employment, it was estimated that 54,000 people were employed in the life-science and

biotechnology-related industry in 2009. The Country Report has set also out priority actions

moving forward into Phase II of the NBP implementation.

This study, as part of the development of the National Innovation Strategy, aims at re-prioritising

certain focus areas and strategic actions in order to effectively accelerate revenue growth in the

next five years. In addition, this study outlines priority policy measures that require immediate

attention for effective transformation execution for results.

1The original term in the NBP is Lab to Market2National Biotechnology Policy 2005

INTRODUCTION

Accelerating the Biotechnology Industry from Science to Business


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Exhibit 1: Accelerating Revenue Growth through Innovative Transformation

Policy Purpose Possible Policy Measures

Capitalise on unique

strengths forSector

Development focus and

provide competitive

platform through right

Infrastructure

Development

1. Intensify the application of new platform technologies in

Agricultural Biotechnology development

2. Accelerate the development of technology for effective

implementation of green chemistry initiatives through

Industrial Biotechnology

Create Regional

Champions

3. Nurture High Potential Performing companies


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Although Malaysian agriculture sector was the main economic contributor prior to 1990s, the

agriculture sector is now the third engine of growth contributing to GDP and food production.

Given Malaysias traditional strength in the agriculture sector and the countrys abundance of

natural resources and land, the NBP has positioned agricultural biotechnology development as

the first policy thrust. By 2009, agricultural biotechnology was the largest revenue generating

sector, representing approximately 39% of total revenue contributed by the largest number of

biotechnology companies (143 out of 349 companies)3. Besides NBP, the Third National

Agricultural Policy (1998-2010) (NAP3) has identified biotechnology as the enabling tool to

improve the national food security, and to ensure sufficient and sustainable food supply as wellas to generate economic gains. The Tenth Malaysia Plan (RMK-10) has also highlighted the

adoption of biotechnology together with Information and Communication Technology and

relevant technologies as the tools to revitalise the agriculture sector4.

In addition, Malaysia, being one of the 12 mega biodiversity countries of the world, has over

12,500 species of flowering plants and 1,100 species of ferns and fern allies; many of which are

unique to Malaysia. There are over 286 species of mammals, 150,000 species of invertebrates,

8,000 species of fish and countless lower order organisms like microbes, fungi and algae in

Malaysia. Therefore, there is large potential in the unexplored biodiversity and a vast gene pool

for Malaysia to capitalise on within the natural products, livestock and aquaculture focus areas.

Exhibit 2: Benefits of Adopting Agricultural Biotechnology to the Rakyat and Business

In a high income economy, the agriculture-

based business can add significant value

in the economic development

A sustainable approach will result in an

efficient and advanced agriculture sector

development

Increase in productivity through the

selection and development of genotypes

that correspond to commercially

important traits in crops and livestock

Reduce dependency on imported food

and agriculture products

Increase the income levels of farmers

Provide opportunities for development

3Malaysian Biotechnology Country Report 2009/20104Tenth Malaysia Plan (RMK-10)

SECTOR DEVELOPMENT FOCUS

1. Agricultural Biotechnology Development


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In a high income economy, the agriculture-

based business can add significant value

in the economic development

A sustainable approach will result in an

efficient and advanced agriculture sector

development

(e.g. disease resistance, increased crop

yield, enhanced nutritional value)

Move up the value chain in the sector by

enhancing scientific evidence for natural

products

Enhance value of companies in

agriculture sector

Gain access to global market with

Malaysian products and services

of young entrepreneurs

Challenges

One of the key challenges in agricultural biotechnology development is the ability to accelerate

capacity and capability building in crop-related and livestock biotechnology. There is a need to

continuously enhance technology to improve the value add and productivity of crops and

livestock. Malaysian Biotechnology Corporation Sdn Bhd (BiotechCorp)s acquisition of a

Marker Assisted Selection (MAS) platform technology from DNA LandMarks, a BASF Plant

Science Company, will increase productivity of crops and livestock through enhancement of

crop and animal breeding programme5. The MAS platform technology is expected to assist in

the development of new applications in crops and livestock. Models for rice, watermelon and

goats are readily available for development of application in related breeding programmes. The

development of new applications in a wider range of crops and livestock would help Malaysia in

establishing itself as a regional hub in molecular marker technology for agriculture.

The natural products industry in Malaysia is still at an infancy stage as majority of small medium

enterprise players have limited market and technical capabilities. Most natural products industryplayers are involved in the low-end market segments with limited standardisation of extracts

using chemical and pharmalogical profiling. This poses a challenge for the industry players to

penetrate the international markets. BiotechCorps acquisition of the Supercritical Fluid (SCF)

platform technology from FeyeCon, Netherlands, is intended to enhance evidence-based

5Malaysian Biotechnology Country Report 2009/2010


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platform in developing natural products6. There are already 33 recipes for extraction of natural

products that can be commercialised immediately. The platform technology will also be able to

scale up commercialisation of extraction and production of novel bioactive compounds. By

establishing the scientific evidence for natural products, Malaysia will be able to move up the

value chain in producing nutraceuticals, over-the-counter drugs and ultimately botanical drugs.

Rationale

Malaysia remains a net importer of food. In 2008, Malaysia's food exports amounted to RM17.9

billion, while imports amounted to RM28 billion7. Malaysia is highly dependent on imported

intermediate food products due to the limited agricultural production and rising demands for

many food products. Demand for food, especially for wheat-based products, livestock, dairy

products, sugar and vegetables, is expected to continue to grow. Domestic production,

however, cannot keep pace with the rising demand. Therefore, crop-related and livestock

biotechnology development will be critical in addressing the countrys domestic needs,

increasing the self-sufficiency levels and improving the balance of trade in major food

commodities.

As described earlier, the MAS platform technology is expected to enable the development of

applications in crops and livestock allowing expansion of MAS breeding programmes. Crop-

related biotechnology such as in vitro technology (e.g. plant tissue-culture for planting material

production), plant genomics, molecular marker technology and biotechnology/genetically

modified crops for plant improvement, are currently available and being implemented locally.

Although assisted reproductive techniques need enhancement, the use of current assisted

reproductive techniques should be continued in order to continuously improve livestock

productivity.

Given Malaysias biodiversity uniqueness, it is also critical for the country to leverage on its

natural resources in order to move up the value chain in agriculture development. As described

earlier, the acquisition of the SCF platform technology is aimed at enhancing the evidence-

based platform in developing natural products.

6Malaysian Biotechnology Country Report 2009/20107Malaysian Industrial Development Authority (MIDA)


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There is a large and growing global demand for novel compounds and active ingredients from

natural products used in the production of food ingredients, functional food, nutraceuticals,

cosmeceuticals and botanical drugs (phytomedicine). Natural products can also be developed

into health supplements, functional foods and cosmetics to cater to the growing health and

wellness market. The global nutraceuticals market is growing as large companies and

Multinational Corporations such as Monsanto, DuPont, Abbott Laboratories, Johnson &

Johnson, Novartis, Metabolex and Genzyme Transgenic are channeling significant amount of

investments into the discovery of nutraceuticals8.

Exhibit 3: Intensify Agricultural Biotechnology Development


Scale up Capacity

and Capability of

Existing

Companies

There is a need to scale up capacity and capability in agriculture sector

through biotechnology development. In order to expedite the

development of existing companies in agriculture sector, the following

measures are proposed:

As outlined in the Country Report, implement a suitable business

model to leverage on the newly acquired platform technologies.

BiotechCorp, being the platform technology owner, will work in

collaboration with the custodians of the platform technologies, namely

Malaysian Agricultural Research and Development Institute (MARDI)

for the MAS platform technology and Universiti Putra Malaysia (UPM)

for the SCF platform technology.

o BiotechCorp will have overall responsibility for the

commercialisation of the applications by promoting the

platform technologies to existing companies.

o The custodians will undertake relevant development and

validation efforts to commercialise the applications.

Align all innovation development (including use of biotechnology)

objectives and commitment from all related Government ministries

and agencies to implement the policy thrusts from NAP3 in order to

place focus on areas that will generate significant results in the next

five years, e.g. intensify large-scale food production by private sector.



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Accelerate

Sustainable

Growth

For sustainable growth in this sector, specific incentives are needed in

order to intensify strategic partnerships between existing large

Government-linked (such as Sime Darby, Felda, CCM) or private (such

as IOI, United Plantation) companies with high potential agricultural

biotechnology companies.

Provide existing local market access opportunities which can be

extended to global market access

Enable sustainable supply of feedstock or land for production of

crops, livestock or natural products

Provide relevant facilities or infrastructure support to

biotechnology companies to grow

Such partnerships will also enable the implementation of Extended

Supply Chain Model (eSCM) model (e.g. industrialisation of food system

through high degree of coordination, a large and consolidated processing

sector with organised retailers).

Intensify Global

Marketing

Given Malaysias reputation in agriculture sector, it should leverage on

this reputation to develop global marketing strategy for agricultural

biotechnology.

Promote Malaysia as a regional hub for the MAS and SCF

platform technologies to enable regionalisation and gloablisation

of Malaysian products and services

Streamline activities undertaken by different marketing and

promotional institutions (e.g. FAMA, MARDI, Biotechcorp,

MATRADE) to enhance marketing spend effectiveness


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At the Copenhagen World Summit on Climate Change, Malaysia committed to reducing its

carbon emission by up to 40% by 2020. To uphold its commitment, the Ministry of Energy,

Green Technology and Water (MEGTW) is expected to intensify its efforts to execute green

initiatives in the country. Industrial biotechnology development will be critical to provide green

initiative solutions to environmental issues, such as municipal waste management and

alternative renewable energy like the production and utilisation of biofuel as compared to fossil

fuels. Furthermore, Malaysia should continue to leverage on its abundance of natural resources

and biomass to develop industrial biotechnology for green technology application.

By 2009, there were 72 industrial biotechnology companies (out of 349 companies) contributing

approximately 30% of total revenue in the biotechnology industry9. One of the key drivers for

industrial biotechnology is the presence of an immediate market, i.e. the oil palm sector.

Malaysia is the second largest producer and the largest exporter of palm oil. Hence, industrial

biotechnology activities tend to revolve around this sector, as in the case for companies

involved in bioremediation (for Palm Oil Mill Effluent), fine and specialty chemicals

(oleochemicals and its derivatives from downstream palm oil processing), and biofuel (from

olein, crude palm oil, sludge oil and effluent ponds). Priority green initiatives will be as follows:

a) To implement a green chemistry initiative (biofuel, bioremediation)

b) To apply advances in bioprocessing technology for fine and specialty chemicals and

biomaterials (biopolymer)

Exhibit 4: Benefits of Adopting Industrial Biotechnology to the Rakyat and Business

In a high income economy, businesses will

be environment-friendly with sustainable

economic development

Sustainable environment-friendly

solutions for the well-being of Rakyat

Enable achievement of carbon emission

reduction commitment

Promote healthy living environment

Able to have access to environment-


SECTOR DEVELOPMENT FOCUS

2. Industrial Biotechnology Development


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In a high income economy, businesses will

be environment-friendly with sustainable

economic development

Sustainable environment-friendly

solutions for the well-being of Rakyat

Provide opportunities for significant cost

reduction in all sectors

Enhance effectiveness of resource

utilisation

Create new economic value that is

sustainable

Enable greater leverage on Malaysias

core competencies in manufacturing

friendly solutions, e.g. alternative

energy

Able to instill greater awareness of

environment-friendly solutions among

future generation

Reduce dependency on depleting fossil

fuel

Challenges

Although the Small Renewable Energy Programme (SREP) aimed to generate 5% or 600MW of

the countrys electricity from renewable energy by 2005, only 0.3% was achieved10. The slow

progress of commercialising renewable energy can be attributed to several factors. One of the

main factors is the lack of a clear policy framework to promote the usage of renewable energy in

the country. This results in insufficient public awareness and promotion on the importance of

environment sustainability through green technology. Only large corporations with significant

carbon emissions will adopt such practices. Smaller companies with lesser carbon emissionmay find it relatively time consuming and not cost effective to invest in such practices.

The prohibitive pricing of renewable energy also discourages households and business owners

to adopt the technology. Additionally, the capital cost of renewable energy implementation is

high as compared to the relatively low sales price of electricity (17 cents/kWh) which makes

production of renewable energy considered unviable.

Biofuel is one of the alternative sources of energy, and Malaysia has already installed capacity

of close to two million tonnes of palm biodiesel as of 2009. However, in Malaysia, theproduction of first generation biofuel is facing two key challenges, namely, the high price of palm

oil and the food versus fuel controversy. Therefore, there is a need to promote development of

second generation biofuel which epitomises the concept of turning waste into wealth. This

10Renewable and Sustainable Energy Reviews 14 (2010)


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would provide enormous potential for Malaysia given the amount of harvestable biomass that is

produced in the palm oil plantation sector.

Besides biofuel, there are several barriers to the development and adoption of bioremediation in

Malaysia including the lack of integrated research from multidisciplinary fields, limited funding,

and inadequate tools and infrastructure to aid research on bioremediation. As for biopolymer

development, thereis currently a technology gap in converting agriculture waste into bioplastics

and biodegradable plastics.

Rationale

Surging demand for energy, escalating energy prices, growing energy security concerns and

scarcity of natural resources are factors driving Government and companies to work harder to

diversify their energy portfolio mix. As outlined in the SREP, it is therefore critical to identify

environment-friendly alternative sources of energy to meet the growing local and global

demand. Biofuel offers a sustainable and viable alternative source of energy that will save on

greenhouse gas emissions and reduce dependency on rapidly depleting fossil fuels.

Given Malaysia is the worlds second largest producer and top exporter of palm oil, it has the

comparative advantage in the production of biodiesel from palm oil biomass. As shown in

Exhibit 5, with the abundance of palm oil mills and other resources, renewable energy, mainly

biofuel and biogas will have huge potential for development in Malaysia.

Exhibit 5: Renewable Energy Potential in Malaysia

Renewable Energy Potential (MW)

Hydropower 22,000

Mini Hydro 500

Biomass/Biogas (palm oil mill waste) 1,300

Municipal solid waste 400

Solar PV 6,500

Wind Low wind speedSource: Energy Commission Malaysia 2009

The National Biofuel Policy, which was launched in 2006, aims at positioning Malaysia as a

major global biodiesel producer. The Government has mandated all Government diesel-


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powered vehicles to start using biodiesel in February 2009. The legislation to mandate the use

of B5 diesel will be passed and enforced in June 201111.

Besides biofuel, bioremediation is one of the green initiatives that can help reduce the carbon

footprint and environmental impact of Malaysias large manufacturing sector. The global

bioremediation market in 2009 was estimated at USD 30 billion (RM 105 billion) and Malaysias

bioremediation market is estimated at USD 102.9 million (RM 360 million) per annum.

Furthermore, through the Clean Development Mechanism (CDM), Malaysia can benefit from

investments in the greenhouse gas emission reduction projects, especially in the areas related

to the palm oil sector.

Biopolymer generally refers to bioplastic and its applications are also seen in the production of

biodegradable plastic. There is growing demand worldwide for the use of bioplastic and

biodegradable plastic to replace some types of traditional petroleum-based plastic, especially in

the packaging industry. Major bioplastics include starch-based, polyhydroxylalkanoate and

polylactic acid. The global market for lactic acid and its derivatives is predicted to have a

compounded annual growth rate of 15%. The potential market in bioplastic applications, for

instance polylactide, is expected to reach three to five million tonnes by 202012. This estimate is

based on the increasing awareness of the environment, health and safety among consumers

and businesses. Being natural products, lactic acid and its derivatives can be used safely

without threat to the environment.

Exhibit 6: Accelerating Industrial Biotechnology Development


Accelerate

Technology

Development to

Build Capacity and

Capability

Although Malaysia has the resources and competencies in industrial

biotechnology development, there are technology gaps in the priority

segments, biofuel, bioremediation and biopolymer. It is therefore critical

for Government to allocate adequate funds to accelerate technology

development for biofuel, bioremediation and biopolymer.

Provide green investments and incentives with related policies to

boost the development and commercialisation of renewable

energy related technology, e.g. second generation biofuel

112011 Budget Speech (2010)12Malaysian Biotechnology Country Report 2009/2010


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Enable acceleration of technology development through

acquisition of suitable foreign technologies or companies

Facilitate strategic partnerships and collaborations with foreign

affiliates to accelerate technology transfer and market access

o Accelerate processing of Malaysian work visas for foreign

expatriates, to efficiently bring in qualified foreign skills

and expertise

o Accelerate processing of approval of foreign participation

and all related documentation

Implement Green

Economy Policies

and Regulations

Enforcement of Government policies and regulations tend to be more

effective to support the growth of a green economy. Such policies and

regulations can be in the forms of incentives (such as tax allowance,

subsidies, matching grants), penalties or mandates. The Government

could:

Mandate the use of biofuel and biodegradable packaging

materials

Offer incentives for the treatment of solid waste and wastewater

using bioremediation

Offer incentives for adoption of environment-friendly solutions

Impose penalties on companies with high carbon emission

Provide subsidies to renewable energy players or phases out

subsidies of existing energy players

Mandate feedstock pricing caps, e.g. cap prices of palm oil

biomass

Promote use of green and hybrid vehicles by reducing import

duty and sales tax

Existing policies and regulations need to be reviewed regularly to

ensure their effectiveness. Furthermore, the Government policies and

regulations need to be holistic and coordinated. For example,

Government funding allocation to the various Government


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ministries and agencies will be made based on green economy

policies and guiding principles

All Government ministries and agencies to adopt use of

renewable energy and to achieve certain levels of carbon

emission reduction

Intensify

Sustainable

Profitable Growth

Strategic partnerships among the various stakeholders in this sector are

critical for sustainable profitable growth.

Government and Government-linked companies to provide the

private sector, e.g. emerging high potential industrial

biotechnology companies, with the opportunities to supply green

products or services

Government-linked companies to provide emerging high

potential industrial biotechnology companies with:

o Local and global market access (i.e. distribution network)

o Supply of required feedstock

o Production facilities

o Collaboration in technology application development and

commercialisation

In addition, the eSCM model can be implemented through such

strategic partnership.

Intensify Global

Marketing

Given Malaysias strengths in biofuel, there is a need to intensify global

marketing to promote Malaysia as the regional hub for biofuel. The

regional hub will eventually extend to cover bioremediation and

biopolymer. Similar to the policy measure described earlier, there is a

need to streamline activities undertaken by different marketing and

promotional institutions to enhance marketing spend effectiveness.


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In the next five years of policy measure execution transformation, it is critical to showcase high

impact successes. Priority policy measures identified will require accelerated execution

approach to enable priority biotechnology businesses to excel and generate high impact results.

High impact successes tend to be defined in terms of economic growth contribution and benefits

generated for the rakyat. Economic growth contribution will be measured on the basis of

companys business performance. As described earlier, specific segments of agricultural and

industrial biotechnology sectors will be placed greater emphasis to generate quick and high

impact results.

Therefore, identification of high potential performing companies will be critical for nurturing and

development. Exhibit 7 provides suggested criteria to be considered in selecting high potential

performing companies. The selected companies will be put through a transformation execution

programme in order to achieve pre-determined accelerated growth rate.

Exhibit 7: Suggested Criteria in Selecting High Potential Performing Companies

Priority segments Supports countrysagendas

Companycharacteristics

Agricultural Biotechnology: Crop-related Livestock Natural products

Industrial Biotechnology:

Biofuel Bioremediation

Biopolymer

Regional and globalexpansion capability

Knowledge economy Green technology/

Environment-friendly/carbon credit reduction

High potential multipliereffects with holistic

economic linkages High impact potential

growth rates Sustainability- product

attractiveness

Competent entrepreneursand management team

Established profile with

proven track record Successful business

model

Opportunities forinnovative business

model Opportunities for capacity

and capability expansion Opportunities for product

innovation

1 2 3

Target companies in the Early Growth Production and Commercialisation stage

CREATE REGIONAL CHAMPIONS


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The proposed policy measures will form part of the transformation execution programme that

aims at developing the priority segments of agricultural and industrial biotechnology sectors. In

addition, the following infrastructure support policy measures are proposed for consideration:

Exhibit 8: Infrastructure Support Development


Attract and

Develop Adequate

Pool of Expertise

There is a need to ensure collaboration between the different agencies,

Talent Corporation, BiotechCorp and GreenTech Malaysia to attract and

develop a pool of expertise required for agricultural and industrial

biotechnology development.

The development of the expertise will help address skill shortages faced

by the biotechnology companies. Priority will be given to therequirements of the selected companies to be nurtured.

Promote

innovative funding

Adequacy and availability of funds are critical in nurturing the selected

companies. Given the lack of private funding for pre-commercialisation

and commercialisation, continued Government support in the form of

public funding is still required to continuously build industry confidence.

Promotion and awareness programmes should continue to create greater

understanding of the industry amongst the financier and investor

communities.

Strengthen public funding through:

o Focused funding schemes (in the forms of grants, convertible

soft loans) for pre-commercialisation and commercialisation

stages, especially second round funding

o Formation of special venture fund with pre-defined investment

focus that is in line with the innovation strategic intent

Incentivise financial institutions and development financial

institutions to allocate loans for priority biotechnology sectors

Promote local and foreign venture capitalists to set up new

biotechnology venture fund(s) by matching with Government

funding


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Harmonise

Government

Policies

Government plays a significant role in creating a conducive ecosystem

for entrepreneurship and innovation to support the development of

biotechnology industry:

Align and harmonise all related Government blueprints, policies

and implementation roadmaps

Clearly define and align the roles of the various ministries and

agencies involved to address overlaps

Encourage collaboration among Government ministries and

agencies for effective resource utilisation

In addition, additional targeted policy measures will be identified and customised to address

certain specific requirements of any selected high potential performing company for the

company to succeed.

Appropriate key performance indicators (KPIs) and targets will be set for each selected high

potential performing company in order to track performance of each company. Specific

innovation transformation action plans will be developed in order to achieve the targets set.

Upon selection of high potential performing companies, the following key tasks will need to beundertaken for each selected company:

Review business plan in detail and establish new measures and targets

Identify key resources and enablers required and key barriers that need to be overcome

Assess policy measures and work out appropriate details required for implementation

Customise policy measures appropriately and develop new policy measures, if any

Update business plan with KPIs, targets, milestones and timelines

Upon agreement of the business plan moving forward, each company is expected to start

implementation without any delay.


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Effective transformation execution will be critical to generate expected outcomes. The proposed

transformation execution framework will set out a mechanism for co-ordinating the

implementation of proposed policy measures, provide broad guidelines for regular

transformation monitoring and progress reporting, and describes the communication programme

to disseminate and obtain feedback on the transformation progress.

UNIK is proposed to set up a Transformation Management Office (TMO) to oversee progress of

the transformation execution. The overall progress of the implementation process will be

closely monitored by TMO to ensure that all policy measures and individual company business

plans are being implemented within the stipulated timelines.

Proper progress monitoring is aimed at ensuring that transformation execution programme is

implemented within their stipulated timelines. Any delays will be carefully reviewed to take into

account their effects on other dependent or associated policy measures or actions. Where

timelines need to be adjusted, other affected policy measures or actions will be reviewed and

rescheduled accordingly.

Apart from monitoring the timely completion of the various actions, it is necessary to develop

specific KPIs and targets to gauge the effectiveness of transformation execution programme in

accelerating revenue growth. As described earlier, KPIs and targets will be set for each

selected company to track performance.

To provide a timely, pragmatic and systematic response to new developments and changing

circumstances in the Malaysian economy, the transformation execution programme objectives

will be regularly reviewed and updated to ensure their continued applicability. With this in mind,

various stakeholder engagement sessions will be conducted periodically to ensure

comprehensive review of the overall transformation execution programme.

Therefore, the TMO will also need to put in place a coordinated communications programme for

stakeholder engagement in order to obtain regular feedback on the transformation execution

programme.

TRANSFORMATION EXECUTION FRAMEWORK

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