Malaysia

1
Malaysias Economic Development with emphasis on
Public-Private Collaboration
World Bank PSD Conference
ECONOMIC PLANNING UNIT
By Dato Abd. Rahman Husin, Deputy Director
General (Sectoral), Economic Planning
Unit, MALAYSIA May 2006
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BRIEFING OUTLINE
3
MALAYSIA AND ETHIOPIA
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Country Profile

• 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

MALAYSIA GEO-POLITICAL STRUCTURE
Map
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MAIN FUNCTIONS OF EPU

• Formulate policies and strategies in development
  planning
• Prepare long and medium term plans
• 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 Malaysias involvement in the
  development of the Growth Triangle Initiatives
• Initiate coordinate bilateral multilateral
  assistance
• Manage the Malaysian Technical Cooperation
  Programme

EPU MALAYSIA
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ORGANIZATIONAL STRUCTURE OF THE EPU
Director General
Deputy Director General (Macro Planning Division)
Deputy Director General (Sectoral Planning
Division)
Sections directly under the Director General
Macroeconomics
Secretariat to the National Economic Action
Council
Industry E. Services
Infrastructure Utilities
Distribution
Social Services
Secretariat to the Foreign Investment Committee
Human Resources
Agriculture
Regional Economics
Energy
General Services
Environment
Development Budget
Knowledge Economy
Legal Adviser
Privatization
Technical Services
External Assistance
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Planning Horizon . . .

• 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

PLANNING HORIZON AND MAJOR POLICY EVOLUTION
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Major Economic Policies
Vision 2020
TOTAL DEVELOPMENT
National Mission 2006 - 2020
Performance Impact Oriented Development to
achieve the goals of Vision 2020
National Development Policy (NDP)
Balanced Development, 1991-2000
New Economic Policy (NEP)
Growth with Equity, 1971-90
Post- independence 1957-70

• Laissez-faire / export-oriented
• Economic and rural development

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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
58.1
57.6
150
53.9
100
46.8
43.1
12.2
31.4
30.8
31.9
50
37.5
17.2
24.6
0
8.9
16.3
26.7
21.0
8.2
8.7
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Diversification Of Exports . . . ( to Total
Exports)
Rubber 33.4
Tin 19.6
Forestry 16.3
Others 9.8
Oil gas 3.9
Palm Oil 5.1
Manufactures 11.9
1970 RM 5,163 million (US2,065 million)
2005 RM 533,790 million (US141,588 million)
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Real GDP Growth . . .
Average 1971- 80 Average 1981- 90 Average 1991-
2000 Average 2001- 05 2000 2001 2002 2003 2004 20
05 2006e
7.5 5.8 7.1 4.5 8.5 0.3 4.4 5.4
7.1 5.3 6.0
ECONOMIC PERFORMANCE
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The Guiding Parameters

• Open economy
• Mixed system
• Multi racial society
• A federation

DEVELOPMENT PLANNING
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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.

DEVELOPMENT PHILOSOPHY
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DEVELOPMENT PLANNING MACHINERY
PARLIAMENT
Cabinet Ministers
National Planning Council
National Action Council
National Economic Action Council (NEAC),
National Economic Consultative Council (NECC)
Draft
Policy
National Development Planning Committee
Draft
Secretariat
Implementation Coordination Unit
Economic Planning Unit
Private Sector Dialogue
Proposal
General framework
Inter-Agency Planning Group (IAPG)
Proposal
Consultations
Proposal
Circulars
Circulars
Federal Ministries Agencies
State Governments
Private Sector
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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

PUBLIC-PRIVATE COLLABORATION
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MAJOR POLICY INITIATIVES

• Economic liberalisation deregulation
• Improving investment policies incentives
• Ensuring a business-friendly environment
• Administrative institutional improvements
• One-stop centres
• Systems procedures for licensing
• Clients Charter
• Productivity improvements TQM, KPIs
• Public service delivery
• Providing an integrated industrial infrastructure

SUPPORTING PRIVATE SECTOR INITIATIVES
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Ninth Malaysia Plan, 2006 2010 The National
Mission, 2006 2020
1. Moving the economy up the value chain
5. Strengthening the countrys institutional
implementation capacity establish a more
effective implementing monitoring mechanism
2. Raising the capacity for knowledge and
innovation, and nurturing first class mentality
Five Key Thrusts
TOWARDS 2020 THE NEXT PHASE
3. Addressing persistent socio-economic
inequalities constructively and productively
4. Improving the standard and sustainability of
the quality of life
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To move the economy up the value chain

• Increasing productivity, competitiveness
  value-add
• Generating new sources of wealth job creation
  in technology- and 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

THE NATIONAL MISSION, 2006-2020
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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

THE NATIONAL MISSION, 2006-2020
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PRIVATIZATION
ECONOMIC PLANNING UNIT
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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
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Objective of Privatization . . .

• Reduce financial administrative burden of the
  Government
• Reduce public sector size direct participation
  in the market place
• Promote competition, efficiency productivity
• Accelerate economic growth
• Meet the targets of NEP, NDP NNM

PRIVATIZATION POLICY
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SCOPE OF PRIVATIZATION
Ports RM7.8 bn /US2.1bn
Airports RM10.0 bn / USS2.9 bn
Urban Transportation RM12 bn/US3.2bn
Telecommunications/ multimedia RM6.6 bn /US1.7bn
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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
• Standardization of terms and conditions of
  privatization

PRIVATIZATION POLICY
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PRIVATIZATION ACHIEVEMENTS SINCE 1983

• Total privatized projects
• Existing projects
• New projects
• Workers transferred to the private sector
• Savings (RM billion)
• Operating expenditure
• Development expenditure
• Proceeds from sale of Government equity
• KLSE market capitalization (Oct 2005)
• RM billion (for 40 privatized entities)
• to total market capitalization

485 346 139 113,200 7.8 154.0
28.9 174.1 23.0
PRIVATIZATION POLICY
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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

PRIVATIZATION POLICY
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INDUSTRIAL CLUSTERS PUBLIC-PRIVATE PARTNERSHIP
ECONOMIC PLANNING UNIT
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EE Industrial Cluster

• Major driver in transforming Malaysia from an
  agricultural to industrial exporter
• Took off in the early 1970s with export-oriented
  industrialization strategy
• Attractive investment climate
• Investment Incentives Act 1968 Industrial
  Coordination Act 1975 provided better incentives
  to attract FDI in EE 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
• 26.8 of total manufacturing sector employment

Incentives
FDI
PUBLIC-PRIVATE PARTNERSHIP
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Enhancing EE 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

PUBLIC-PRIVATE PARTNERSHIP
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CONCLUSION
ECONOMIC PLANNING UNIT
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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
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ROLE OF THE PRIVATE SECTOR

• 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 RD and innovation activities for
  wealth creation
• Develop long, medium and short term plans in
  pursuit of national goals

CONCLUDING REMARKS
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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

CONCLUDING REMARKS
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THANK
ECONOMIC PLANNING UNIT
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HYPERLINKED SLIDES
ECONOMIC PLANNING UNIT
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(No Transcript)
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To raise the countrys 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 peoples
  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 RD 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 growth and development

NATIONAL MISSION, 2006-2020
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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 future policies and
  programmes on merit and need

NATIONAL MISSION, 2006-2020
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To improve the standards and sustainability of
the quality of life

• Ensuring 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 of
  Malaysian culture, arts and heritage

NATIONAL MISSION, 2006-2020
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Investment Incentives . . .

• Pioneer status or Investment tax allowance for
  manufacturing companies
• Incentives for small- medium-scale enterprise
• Training and RD Grant
• Incentives for high technology companies
• Incentives for strategic projects
• Incentives for RD

SUPPORTING PRIVATE SECTOR INITIATIVES
Back
Other Incentives
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Investment Incentives . . .

• Incentives for software development
• Pre-packaged incentives
• Incentives for exports
• General incentives
• Industrial building allowance
• Infrastructure allowance
• Import duty exemptions for
• raw materials / components and
• equipment machinery

SUPPORTING PRIVATE SECTOR INITIATIVES
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Manufacturing Investment in Approved Projects,
2001- 2005
Industry Capital Investment (RM million) Capital Investment (RM million) Capital Investment (RM million)
Industry Number Domestic Foreign
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 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)
Total 4,812 55,474 77,152
Total
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)
132,626
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Providing An Integrated Industrial Infrastructure

• TYPES
• Industrial Zones
• Special Commercial Premises
• SME Industrial Estates
• Technology Parks
• Industrial Corridors
• Business Premises

SUPPORTING PRIVATE SECTOR INITIATIVES
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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 EE
  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

PUBLIC-PRIVATE PARTNERSHIP
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ADDITIONAL SLIDES
ECONOMIC PLANNING UNIT
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RosettaNet Malaysia Partners include
Solution Providers Hewlett-Packard
Sales Microsoft Oracle Penang Network Services
Cardos Automation System KarenSoft 
TechnologyJSP Consulting e-Business LK
Solutions Tradenex.com B2B Commerce NDT Software
Consulting SCS Computer Systems SAP Malaysia
Formfill Australasia Dagang Net NEC BGlobal MnEB
ay GridNode Advanced Professional (India) Rank
Alpha Sterling Commerce J.D. Edwards PeopleSoft No
vell Global EXchange
Foreign MNCs Intel Dell Inventec IBM Infineon F
airchild Ericsson Kemet Seagate LSI Logic
Malaysian Companies LKT Industrial
Globetronics Public Packages BCM Electronics TFS
Electronics (Unico) 1st Silicon Polytool
Tech Leong Bee Soo Bee Ire-Tex Dnonce San Yong
Enterprise Federal Packages Genting Sanyen
Logistics Providers Priority Cargo
Associations Clubs FMM Government MIMOS,MITI,
SMIDEC,PDC, MECM, EPU
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ICT Multimedia Hub MSC Milestones

Phase 3
The MSC Next Leap
Phase 1
Attain leadership in the Knowledge Based Economy
Transform Malaysia into a knowledge society
Grow MSC into a global ICT hub
Create the MSC

• Web of corridors
• 4,000 MSC Status 250 MSC Global companies.
• 100,000 new jobs RM69 bil revenue RM2.5 bil
  exports
• Enhance ICT industry cluster
• Enhance multimedia applications
• Leadership towards harmonized global framework of
  cyber laws
• Link to world leading intelligent cities

• 1 Corridor
• Bill of Guarantees
• 50 world-class companies
• Launch 7 flagship applications
• World-leading framework of cyberlaws
• Cyberjaya as world-leading intelligent city

• All of Malaysia
• 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

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MSC Phase 1
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MSC Next Leap (2004 2010)
Rollout MSC Cybercities/Cybercentres.
Kulim Hi-Tech Park
Bayan Lepas, Penang
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Flagship Applications
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Companies in MSC
OUTSOURCE
INSOURCE
Services delivered internally
Partner with external provider

• Telekom Malaysia
• Petronas

• User BCB
• Provider EPIC-I (EDS)

LOCAL

TargetMarket
Shared ServicesPooling of resources to render
common services cost-effectively, leveraging on
economies of scale
Global /Offshore
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• 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. Kearneys2004 Offshore Location
Attractiveness Index Making Offshore Decisions
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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

SUPPORTING PRIVATE SECTOR INITIATIVES
Cont
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Factor Conditions for Growth of MSC
Public-Private Sector Collaboration
Cont

• 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

SUPPORTING PRIVATE SECTOR INITIATIVES
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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

SUPPORTING PRIVATE SECTOR INITIATIVES
Cont
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Bill of Guarantees
Cont

• 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

SUPPORTING PRIVATE SECTOR INITIATIVES
57
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 RD 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

PUBLIC-PRIVATE PARTNERSHIP
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BIOTECHNOLOGY ACTION PLAN
Competitive Leading Biotech Industry
PHASE I (2005-2010) Capacity Building
PHASE II (2011-2015) Science to Business
PHASE III (2016-2020) Global Business

• HR Development
• Est. Advisory and Implementation Councils
• Est. Biotechnology Corp.
• Capacity Building in RD
• 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

• 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

• 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

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Generating New Sources of Growth
Growth Areas Competitive Advantage
Agro-biotechnology Higher value added crops and foods Natural products Health-Biotechnology Bio-Generics Diagnostics Vaccines Industrial Biotechnology Green Chemistry Biocatalysts Biomaterials Bio-Manufacturing 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
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Bio-Nexus Network
IPN Dengkil
IAB UPM/MARDI
Agro-bio
Healthcare-bio
Industry
Bio-Nexus
NINPVB Enstek, Nilai
Industrial-bio
Natural Products Vaccines
Food Cluster
Genome Centre UKM
Interactions between institutions industry
Platform Technology
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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

PUBLIC-PRIVATE PARTNERSHIP
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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

PUBLIC-PRIVATE PARTNERSHIP
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Halal Hub

• Development of halal product industry cluster to
  capture the growing share of the world halal
  market potential
• Credibility and worldwide recognition of JAKIMs
  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 Msia Halal Showcase (MIHAS)

PUBLIC-PRIVATE PARTNERSHIP
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TIGeRs Supply Chain Model
Global Buyers
Government
1st Tier Suppliers
2nd Tier Suppliers
Govt. Agencies
Service Providers