leveraging borneo’s strength through value-driven...
TRANSCRIPT
Leveraging Borneo’s Strength
through Value-driven Bioeconomy
YBhg. Dato’ Dr Mohd Nazlee Kamal
Malaysian Biotechnology Corporation
20 April 2015
Building a Solid Foundation for a Sustainable Bio-based
Industry
Innovations are
driving a growing
demand for
sustainable and
bio-based
products from
renewable bio-
based materials
The application of bio-based technologies is the GAME CHANGER that
transform conventional processes and industries in the bioeconomy into major
contributors to the national economy
Why Borneo?
Strategic location in the ASEAN region
Strategic position to link to rapidly growing Peninsula
Malaysia, Brunei, Indonesia, the Philippines and the
rest of ASEAN
Borneo rainforests are one of the
most biologically diverse ecosystems
15,000 species of flowering plants and
3,000 species of trees
221 species of terrestrial mammals
420 species of birds
440 species of freshwater fish
Established agriculture sector
Long coastline for Aquaculture
Land for forest plantation and oil palm –
source of renewable feedstock supply
Economic Diversification from Bioeconomy
Bioeconomy Enhance and Add Value to Existing Industries & Key
Economic Sectors in Borneo
Agriculture Forestry and Timber Oil and Gas
Core
Economic
Sectors
BioIndustrial
inputs Food and Feed Value Added
Products Bioenergy Green Agenda Bioresources
The Bioeconomy Transformation Programme will achieve this by
encouraging the creation of collaborative biotechnology clusters in Borneo
Bioeconomy is expected to enhance and add value to existing industries and economic
sectors by strengthening its sectoral niche and by developing its resource-based industries
Bioeconomy
An Important Agenda to Drive Borneo Sustainability
Economic activities based on processes using biological sources to
generate sustainable economic, social and environmental development
The Vision
Malaysia’s bioeconomy to be a
significant contributor to the nation’s
economy by 2020 and beyond
Bioeconomy has the potential to:
• Make the country more competitive
internationally
• Creation of value added jobs
• Enhance food security and healthcare
• Create greener economy as the country
shifts towards a low-carbon economy
• Increase Nation’s income by exploiting
our bio-resources to high value products
using bio-based technology
BiotechCorp’s Roles to Nurture and Accelerate the
Growth of Borneo’s Bio-based Industry
Prime Mover for
Bio-based Industry
Facilitation Role
SME Development for
Bio-based Industry
Foreign and Domestic
Direct Investment
Advocacy
This year saw Malaysian Biotechnology
Corporation being awarded:
WBM Industry Champion 2015
Global Leadership Award Excellence
in Biotechnology Sector 2015
“This award really means a lot to the team particularly for what it shows in our efforts to push the bio
industry in Malaysia. It is testament that what we are doing is on the right track and we look forward to
pushing this industry further in Malaysia” YBhg Dato Dr Mohd Nazlee Kamal, CEO of BiotechCorp
Synergy between Stakeholders
The Key Enablers of the Malaysian Bioeconomy
Government Ministries
State Governments
Implementing Agencies
PPPs Universities
Venture
Capital
PPPs
Industrial
Partners
Entrepreneurs
Public policy & advocacy for
the bio-based sector
Facilitate & coordinate
integration of the
implementation plans
Support & regulate key
programmes
Generate knowledge &
develop new innovative
technologies, processes &
products
Programme implementation
Infrastructure development
Provide incentives & industry
support
Funding & Financing
Scale-up, industrialisation &
commercialisation
Job creation
Banks/Financial Institutions
SCOPE
BIOECONOMY
KEY
ENABLERS
KEY ROLES
Research Institutes
Governance & Strategic
Oversight
Implementation & Facilitation
Support
Commercialisation & Market
Access
Bioeconomy Transformation
Programme can leverage on
key economic corridors and
clusters in Sabah and
Sarawak by;
• Collaborating with economic
corridors and clusters
• Provide human capital
development
• Enhancing Public Private
Partnership (PPP) through
BioNexus Partnering
Program
• Creation of successful
BioNexus status companies
Cluster Development in Key Economic Corridors in
Borneo
Sabah
1. Sabah: Drug
Development & Drug
Discovery Cluster
2. High Impact Agriculture
Centre - Kundasang
3. POIC Lahad Datu
Sarawak
4. Sarawak Agarwood
Industry
5. Sarawak Corridor of
Renewable Energy
6. Sarawak Drug
Development & Drug
Discovery Cluster
Biological Research
Institution
BIONEXUS
STATUS
27+ Universities and Colleges
4 BioNexus Partners Facilities
8 companies in Sabah
8 companies in Sarawak
3 Biological Research Institutions
Institutions Of
Higher Learning
Targeting Upstream Bioeconomy as a Key Driver
of Entire Value Chain
Developing upstream sector through Bioeconomy Community Development Programme
(BCDP) creates ripple effect through entire value chain:
Upstream Downstream
Raw Material Product
Value Add
Product
• Improved yield,
productivity &
standards
From… To…
• Conventional
methods
• Low productivity
Market
High tech
processing
activities
Multiplier
effect
BioNexus Go
Global, BioShoppe
Bio-based
Technologies
FOCUS ON HIGH GROWTH AREAS
Bio-Cosmeceuticals, Wellness and Pharma Nutrition
Global growth CAGR of 6.3%
Contribution of RM532 mil to GDP in 2020
Capitalise on Malaysia biodiversity and bio-based companies
Major component of rural
bioeconomy
9
Transforming Rural Community through Bioeconomy
Advanced bio-based
technologies Today’s rural economy
• Poor utilisation of land
• Rural-urban income disparity
• Low-value economic activity
• Gaps in value chain
BCDP on
Bio-cosmeceuticals,
Wellness and Pharma
Nutrition
Optimising supply chain
dynamics of industry
Increase the revenue
of BioNexus status
companies
Bioeconomy can be an enabler for social
inclusiveness as the nation develops
Issues:
OLD PRACTICE MODERN PRACTICE
OUTCOME
• Traits technology and
Genome editing
• Marker Assisted
Selection
• Biosensors
• Smart Greenhouse
Multiplier Effect:
Increasing the income of
the rural community
Transforming Rural Community through Bioeconomy –
Our Strength through BioNexus Companies
BioNexus companies in Bio-cosmeceuticals, Wellness and Pharma Nutrition
Black Gold
Global
Sdn Bhd
Agro Science
Resources
Sdn Bhd
GT Bioscience
Sdn Bhd
Bio Delta
Sdn Bhd
Brazilia Propolis
Sdn Bhd
Biotechnology as an Enabler for High Value
Generation
12
Raw Materials
• High Value Herbs
• Phyllanthus Niruri
• Ling Zhi
• Mangosteen
• Spirulina
• Tiger’s milk mushroom
• Oyster
High Value Bio-Processes and Products
SeaHarvest Aquamarine
Liquid fermentation
Nova-PhytoTechTM Extraction and Nova-PhytoMatrixTM formulation
Xanthones Extraction
Ganoderma Extraction
High-mineralised oyster extraction and adsorption purification
Alginate Extraction
12
BCDP Impact for the 7 pilot projects
High value Herbs - Bio-Alpha Sdn Bhd
Royal Jelly – Flora Beehive Enterprise Sdn Bhd
Stevia – PureCircle Sdn Bhd
Dairy – The Holstein Milk Co. Sdn Bhd
Pilot Projects – Kota Tinggi, Johor
Royal Jelly – Flora Beehive Enterprise Sdn Bhd
High value Herbs – Bio-Alpha Sdn Bhd
Oyster – SeaHarvest Aquamarine Sdn Bhd
Pilot Project – Kuala Linggi, Malacca
Pilot Project – Pasir Raja, Terengganu
Pilot Project – Balik Pulau, Penang
Number of Farmers
47
Additional
Income
Average RM
4,210 per month per farmer
1
2
Lives directly impacted
230
Nearly
Impact on local
economy
RM
5.2 million yearly*
3
*Multiplier effect based on marginal propensity to consume
Pilot project model will be
replicated in suitable
locations and states, creating
even larger national impact
Targeted Pilot Projects:
Targeted 10 BCDP collaborations
Melaka
Perak
P. Pinang
Cassava
Prawn
Sabah
Bio-Aromatic
Boer Goats
Johor
Prawn
Sea Cucumber
Gaharu
Terengganu
Kenaf Century Marine Products
Kayu Gaharu Sdn Bhd
BioNestro Sdn Bhd
Maribumi Starchtech Sdn Bhd
KLAS Farm Sdn Bhd
Wibawa Biotech Sdn Bhd
Kenaf Biosolutions Sdn Bhd
Tropical Bioessence Sdn Bhd &
Gaya Naturals Sdn Bhd
Other anchor companies with existing demand for
materials have been identified for BCDP in 2015
Cassava Balong Tapioca Sdn Bhd
Betel Leaf Spektra Biotech Sdn Bhd
Herbs Northern Borneo Herbal
Biotechnology Sdn Bhd
Bio-Aromatic Gaya Naturals Sdn Bhd
Kedah
Bee Farming
Seeds Producer
Flora Beehive Enterprise Sdn
Bhd
Greenworld Genetics Sdn Bhd
BioShoppe
Incubator for Branding & Marketing
Overarching Aim To provide market access &
visibility for BioNexus products
Towards creating homegrown
champions with export potential
To create more Bio-preneurs &
franchising opportunities
is a commercialisation incubator
for branding and marketing
Provides a soft landing for nascent BioNexus
companies to familiarise themselves with the retail
pharmacy environment
BioShoppe Strategy
*Subject to funding received under
RMK-11
10 outlets each
year (2016-2020)
Bioeconomy Community
Development Programme
Increase in
production
capacity Increase
volumes and
sales by 2X Increase demand
for raw materials
Kacip Fatimah Hempedu Bumi Misai Kucing
Products of BioNexus Status
companies
NATURAL HEALTH SUPPLEMENT
HEALTH & BEAUTY
ESSENTIAL OIL & AROMATHERAPY
FUNCTIONAL FOOD & BEVERAGES
Impactful Projects to generate
Socio-Economic Benefits
Impactful Projects to Generate Socio-Economic Benefits
World’s First Integrated Lobster Aquaculture Park in Semporna
Formulation of an “live feed”
& artificial feed using
microorganisms
(e.g. microalgae)
Cultivation of different types of
micro-algae as “live feed” for early
stage feeding of larvae/fry. Different
stages of development will require
different formulation of “live feed”
(12 different development stages)
Selective breeding &
Biological filtration system
Selective breeding; use of
microorganism as additive to
maintain water quality, improve
growth & survival rates of larvae/fry
The First Fully Integrated
Lobster Aquaculture in the
World
Employment:
16,800 people
GNI in 2020:
RM300 million
Investment:
RM 2 billion
TECHNOLOGY
IMPACT
To implement sustainable temperate farming through
integrated crop management approach.
The project will utilise bio-pesticides, bio-fertilisers,
beneficial insects, integrated weed management, etc.
The project will also uptake initiatives on the
conversion of agiculture waste into useful products
e.g. biofertiliser, biochemicals, etc.
Impactful Projects to Generate Socio-Economic Benefits
AgriBiotech Centre of Excellence for Highland Farming Ranau
Phase 1 main product is
Tilapia and can be processed
into Tilapia fillet, marine
collagen and gelatin
Employment (BioNexus
Entities):
445 people
GNI in 2020:
NA
Overall Investment:
RM 2.2 billion
IMPACT
TECHNOLOGY
Proposed to use biotech
method and unique
culturing system to culture
the Chlorella purified strain
Optimum production and
eco-friendly culturing
system
BioNexus Entities: Sea Party Aquaculture & Sea Party Microbes
Impactful Projects to Generate Socio-Economic Benefits
Tilapia Fish Farming at Tanjung Manis - Taiwan Food Park, Sarawak
Projecting Malaysia’s Bioeconomy Growth
US$34 b
2010
Total Bioeconomy potential
Expected activities
enhanced by bio-based
technology
2030
GDP
Contribution
Year
US$22 b
2020
US$27
US$47 b
US$16 b
US$57 billion
billion
Transition toward higher value downstream activities using bio-based
technology can increase total Bioeconomy potential (15% growth):
Stimulated
introduction of bio-
based technology into
other sectors
Conclusion
Biodiversity & Bio-
based Resources Enhanced
Economic Value of
Bioeconomy Synergy between
local & international
stakeholders Bioeconomy
Transformation
Programme
1. Value-added bioeconomy activities will create direct and ripple effect for sustainable
industry and socio-economic development through coordinated programmes.
2. Borneo can enhance its economic potential from its biodiversity and bio-based
resources…
Bio-based Technology
Industrial cluster
strategy
… to drive investment into Bioeconomy as an economically attractive and environmentally
sustainable approach to move forward the bio-based industries to greater heights.
Market access
strategy National
Biotechnology
Policy
Terima Kasih