National Workshop on SubNational Innovation System and Technology Capacity Building Policies to Enha

1
National Workshop on Sub-National Innovation
System andTechnology Capacity Building Policies
to Enhance Competitiveness of SMEs
TECHNOLOGY CAPACITY BUILDING FOR SMEs Sharing
of Malaysia Experience
27th 30th October 2006 Beijing, Peoples
Republic of China
Presented By Mr. Mohd. Ghazali Mohd. Yunos
(ghazali_at_sirim.my) Head, Incubator Enterprise
Development Technology Incubation Centre SIRIM
Berhad, Malaysia
2
Outline of Presentation

• Malaysia in brief
• Development Planning
• SMEs in Malaysia
• Definitions of SMEs
• SMEs Programmes Institutional Supports
• General Information
• WAITRO
• SIRIM Berhad
• General information
• Technology Incubation
• Conclusions

3
1. Malaysia in Brief

• General Information
• Population about 24.5 million (in 2002) with 3
  major races Malays (Bumiputera or indigenous),
  Chinese, Indians, others groups
• Official religion - Islam. Others Buddhism,
  Christianity, Hinduism, Confucianism/Taoism
• Multi racial Truly Asia
• Official language is Bahasa Malaysia but English
  is widely spoken

4
1. Malaysia in Brief

• General Information (continue)
• 49th year of Independence (31st August 1957 from
  British)
• Practices a system of Parliamentary Democracy
  with Constitutional Monarchy and His Royal
  Highness is the Paramount Ruler
• It has 3 chambers of administration, namely the
  Legislature, Judiciary and Executive
• The Malaysian Parliament is made up of Yang
  Di-Pertuan Agong, the Senate with 70 members and
  House of Representatives with 219 members. The
  general election is held every 5 years. Since
  independence, Malaysia has been ruled by the
  National Front which is a coalition of several
  political parties

5
2. Development Planning

• Major Economic Policies

• Building a resilient and
• competitive nation, 2001-2010

National Vision Policy

• Balanced Development, 1991-2000

National Development Policy (NDP)

• Total Development, 1991 - 2020

Vision 2020

• Growth with Equity, 1971-1990
• OPP1
• Objective National Unity
• Strategies Eradicating poverty restructuring
  of society

New Economic Policy (NEP)

• Export-oriented
• Economic and rural development

Post-Independence 1957 -1970
6
3. SMEs in Malaysia

• Total establishment registered 523,132
• 4,136 (0.8) Large
• 11,667 (2.2 ) Medium
• 96,490 (18.3 ) Small
• 411,849 (78.7 ) - Micro
• By sector
• Agriculture 32,126 (6.2 )
• Manufacturing 37,866 (7.3 )
• Services 449,004 (86.5 )
• MSME Constitute 99.2 total registered
• National SME Development council on policy making
  on SME Development

DOS, Dec 05
7
3.1 Definition of SMEs
Exchange 1 USDRM3.67
8
SME Programmes and Institutional Support
9
Government Initiatives

• Assistance programme to develop technologically
  capable, productivity-driven and globally
  competitive
• i.e.
• enhancing capacity building, facilitating easier
  access to market finance enhancing the level
  of technology innovativeness increasing the
  competitiveness of SMEs
• Creating market opportunities through
• Outsourcing programmes
• i.e.
• Industry linkages (cluster-based)
• Vendor development
• Government procurement

10
SME Development Under 9th MP (2006-2010)

• RM2.1 B for SME Development (RM1.5 B in 8th MP)
• Rm463 m for enhancing technology content
  knowledge
• RM220 m soft loan for purchase of M E in MRS
  industry
• Venture capital financing for start-ups
• Funding for priority segments and new growth
  areas such as ICT biotechnology
• Specific programs to enhance entrepreneurial
  technical capabilities
• In addition
• RM927.5 m for industrial sites
• RM833 m for business premises
• RM1.5 b for creation of Techno-Fund

11
SME Initiatives Under 9th MP (2006-2010)

• Providing more focused incentives for high
  value-added industries
• Innovation-driven SMEs
• Services support for the manufacturing sector
  branding
• Enhancing technological capability capacity of
  SMEs
• Financing new source for growth
• Strengthening SMEs in distributive trade

12
National SME Development Council

• Key decisions of 5th National SME Dev Council
  (7th Aug 06)
• A comprehensive microfinance institutional
  framework
• Formation of SME Marketing Committee to Drive
  Global Marketing of SME Products
• An inter-ministry chaired by MITI in
  collaboration with Ministries Agencies
• Matrade to coordinate implementation of
  international marketing programs activities
• Launch of Inaugural SME Annual Report 2005

13
SME Annual Report 2005

• Highlights
• The Macro perspective
• National agenda for SME Development
• Status performance of SMEs
• Key initiatives promoting SME Development
• 3 broad strategic thrusts strengthening
  enabling infrastructure building the capacity
  and capability of SMEs and enhancing access to
  financing

14
Key Initiatives Promoting SME Development

• Strengthening of infrastructure for SME
  development
• Physical infrastructure information management
• Info portal SMEinfo Portal (www.smeinfo.com.my)
  FAMAXchange, AgriBazaar (www.agribazaar.com.my)
  Establish INSKEN
• Enhancing capacity capability of SMEs
• Marketing promotion
• Training HRD
• Advisory services
• Entrepreneur Development
• Technology Development
• Product Development
• Awareness Outreach

15
Key Initiatives Promoting SME Development
(continue..)

• SME Access to Financing
• Lending performance to SMEs
• End 2005, 81 govt funds/financing schemes for
  SMEs total RM12.7 b
• 49 soft loans 20 grants 12 equity VC funds
• BNM has 5 special funds for SMEs total to RM11.4
  b
• Moving Forward Strategies for SME Development
• National SME Dev Blueprint 2006
• A total of 245 key prgs total RM3.9 b for
  implementation
• Objectives strategies under 9th MP

16
4. WAITRO Its Activities

• WAITRO - World Association of Industrial and
  Technological Research Organizations
• Independent, non-governmental and not-for-profit
  association, established in 1970
• Special consultative status with the United
  Nations its specialized agencies

MISSION To be the leading global network of
research and technological organizations through
collaboration and knowledge sharing for
sustainable development
SIRIM Berhad (Malaysia) hosts WAITRO Secretariat
since 2002 - the 1st in Asia
17
Focus Areas

• RTO Management
• Management and Leadership, Benchmarking,
  Knowledge Management
• RTO Technology Transfer
• SME Development, Commercialization of RD,
  Information Dissemination
• RTO Technology Development
• Manufacturing, Environment, Biotechnology,
  Agriculture (Agro-processing Food Technology),
  Energy, ICT
• Member Services, Publicity Promotion
• Biennial Congress, Networking Sessions, Strategic
  Direction, Publicity Promotion

18
5. SIRIM Berhad

• A leading organisation in industrial research,
  technological development, standardisation and
  quality activities in MALAYSIA

19
SIRIM Berhad
Established in 1975 under the SIRIM
(Incorporation) Act 157 under the Ministry of
Science, Technology and Innovation
16th November 1995 SIRIM was corporatised as a
government-owned company under the Minister of
Finance Incorporated
1, Persiaran Dato Menteri Section 2, 40911 Shah
Alam Selangor, MALAYSIA HQ area gt50
acres Offices 8 Branch Offices Subsidiary 2
wholly-owned subsidiaries
1st September 1996 SIRIM Berhad was fully
operationalised
20
SIRIM Berhad
MISSION
VISION
WE MAKE BUSINESSES COMPETE BETTER THROUGH
QUALITY TECHNOLOGY INNOVATIONS
TO BE AMONG THE WORLDS BEST IN QUALITY
TECHNOLOGY
ROLE

• A champion of quality
• The national research and technology development
  corporation
• A vehicle for technology transfer
• A provider of institutional and technical
  infrastructure
• for the Government

21
Products Services
Research Technology
Standards Quality
Other Services

• Contract Research
• Product Development
• Technology Transfer
• Designing
• Material Research, Evaluation, Development
• Process Optimisation
• Incubation
• Testing Quality Control
• Training
• Consultancy

• Measurement Calibration Services
• Certified Reference Materials
• Sales of Standards
• Library Membership Schemes
• Reference Services
• Electronic Information Retrieval
• Update Service for Exporters
• Document Delivery MS Online
• IP Advisory, Agency, Consultancy Services
• IP Agency Services
• Product Standards Specification Development
• Value Engineering Product Improvement
• Training
• Consultancy

• Strategic Planning, Business Intelligence
  Innovation Process
• Printing Packaging Design
• Project Management Technology Consultant

22
Incubator in Malaysia

• Started in mid 80s at research institution
  (SIRIM), University
• Expanded to Technology Park
• Technology Cluster-based incubator
• Multimedia Super Corridor (MSC)
• Private incubator

23
TBI - University Incubator Technology Clustering

• Focus technology
• MTDC-UPM
• ICT (MSC)
• MTDC-UKM
• Bio-technology pharmaceutical
• MTDC-UTM
• ICT
• Technovation Park
• MTDC-UM
• Engineering Electronic

24
TBI - Technology Parks

• Technology Park of Malaysia
• Technology focus Engineering, IT
  Biotechnology
• Within MSC
• Kulim Hi-Tech Park
• North of Peninsular Malaysia
• Technology focus - advanced electronics,
  mechanical electronics, telecommunications,
  semiconductors, optoelectronics, biotechnology,
  advanced materials, RD emerging technologies

25
SIRIM TECHNOLOGY INCUBATION - A CASE STUDY
26
SIRIM Incubator Model
Phase I Entrepreneur
Development Phase
Phase II Enterprise Creation
Phase
Phase III Market Development Phase
SIRIM Technology Incubator Program

• Skills Development

• Networking Linkages

• Facilities Services

• After-Care Service

• Technology Transfer Consultancy Services

• Advisory Services

27
SIRIM Off-Site Facilities and Branch Offices
Thailand
Kulim AMREC
LIAISON OFFICE-KOTA BARU
KOTA KINABALU
BUTTERWORTH
KUALA TERENGGANU
IPOH
Rasa RAMET
KUANTAN
Borneo Island/ Indonesia
SHAH ALAM
LIAISON OFFICE- SEREMBAN
KUCHING

• Sepang
• Incubator Centre
• National Metrology Laboratory

MELAKA
JOHOR BAHRU
LABORATORY / CENTRE
Singapore
BRANCH OFFICES
28
5. Conclusions/Recommendations
29
Technology Business Incubator as Catalyst of
Growth

• Works closely with the Technology Centres to help
  clients identify and license SIRIM Berhad
  technologies for commercial application
• Taps technical and business and
  technology-related resources at universities and
  research organisations for innovative technology
  to help clients fill gaps in their business and
  technical expertise
• Provides hands-on and technical training skills
  in technology and quality to help clients with
  their production process, product design and
  packaging, quality control and testing services
  in the early stages of a new endeavour

30
Technology Business Incubator as Catalyst of
Growth (continue)

• Offers a structured and conducive environment
  that helps entrepreneurs maintain focus on their
  long and short-term goals
• Provides advisory services on technology,
  quality, management, financial, marketing,
  intellectual property advice and other
  disciplines, business plan assistance, government
  services as well as facilitating registration,
  taxes, and other regulations, access to funding
  and seed money, etc. and
• Works closely with supporting government agencies
  and companies creating synergies for sharing and
  networking, among clients and with local
  businesses

31
Conclusions

• Long Term Planning and Visionary Leaders
• Malaysias success in achieving high sustained
  growth and rapid development can be summed up as
  getting the basics right.
• Instituting sound development policies, good
  economic management, promoting private
  investment, developing human resource as well as
  providing good physical and institutional
  infrastructure.
• Continuing Government Support
• Grants, soft loan
• various policies, programmes and schemes to
  acquire technology, undertake product
  development, process and quality improvements,
  upgrading human resources and penetrate the
  global market
• Business and Market Opportunity
• The establishment of entrepreneurial society will
  drive entrepreneur to learn, adopt and adapt new
  technologies, change on how we do things for
  improvement and enhancement.
• Technology Incubator can be one of the means to
  encourage innovation

32
Conclusions

• continue
• Establishment of Strategic Alliances
• The pulling together of various resources and
  expertise from all sectors creates a repository
  of knowledge
• Sharing of Experience
• The Malaysian development challenges, policy
  responses and achievements were in many ways
  unique.
• Attempt to replicate the Malaysian model or other
  country successful model in every other
  developing country may not produce the same
  results. Nevertheless, there are generic or broad
  lessons that can possibly be adopted or adapted
  from these experiences

33
Contact Information

• The General Manager
• SIRIM Technology Incubation Centre
• SIRIM Berhad
• Incubator Centre
• Lot PT 4803, Bandar Baru Salak Tinggi
• 43900 Sepang
• Selangor D.E, MALAYSIA
• Tel [phone]
• Fax [phone]

Mdm. Goay Peck Sim (peck.sim_goay_at_sirim.my) Mr.Moh
d Ghazali Mohd Yunos (ghazali_at_sirim.my)
HOT LINE PHONE [phone] FAX [phone]
8095
WEBSITE http//www.sirim.my E-MAIL
web_at_sirim.my
34
Other Resourceful Links
35

• THANK YOU
• FOR YOUR ATTENTION