1 - Mohd Ghazali Mohd Yunos-Beijing Oct0

National Workshop on Sub-National Innovation System andTechnology Capacity Building Policies to Enhance Competitiveness of SMEs : 

1/58 Presented By: Mr. Mohd. Ghazali Mohd. Yunos (ghazali@sirim.my) Head, Incubator & Enterprise Development Technology Incubation Centre SIRIM Berhad, Malaysia 27th – 30th October 2006 Beijing, People’s Republic of China TECHNOLOGY CAPACITY BUILDING FOR SMEs : Sharing of Malaysia Experience National Workshop on Sub-National Innovation System andTechnology Capacity Building Policies to Enhance Competitiveness of SMEs

Outline of Presentation : 

2/58 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

1. Malaysia in Brief : 

3/58 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

1. Malaysia in Brief : 

4/58 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

2. Development Planning : 

5/58 2. Development Planning Major Economic Policies Post-Independence 1957 -1970 Export-oriented Economic and rural development Growth with Equity, 1971-1990 OPP1 Objective : National Unity Strategies : Eradicating poverty & restructuring of society New Economic Policy (NEP) Vision 2020 National Development Policy (NDP) National Vision Policy Total Development, 1991 - 2020 Balanced Development, 1991-2000 Building a resilient and competitive nation, 2001-2010

3. SMEs in Malaysia : 

6/58 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

3.1 Definition of SMEs : 

7/58 3.1 Definition of SMEs Exchange : 1 USD=RM3.67

SME Programmes and Institutional Support : 

8/58 SME Programmes and Institutional Support

Government Initiatives : 

9/58 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

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

10/58 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

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

11/58 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

National SME Development Council : 

12/58 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

SME Annual Report 2005 : 

13/58 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

Key Initiatives Promoting SME Development : 

14/58 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

Key Initiatives Promoting SME Development (continue..) : 

15/58 Key Initiatives Promoting SME Development (continue..) SME Access to Financing Lending performance to SMEs End 2005, 81 gov’t 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

4. WAITRO & Its Activities : 

16/58 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 4. WAITRO & Its Activities

Focus Areas : 

17/58 Focus Areas RTO Management Management and Leadership, Benchmarking, Knowledge Management RTO Technology Transfer SME Development, Commercialization of R&D, 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

5. SIRIM Berhad : 

18/58 5. SIRIM Berhad A leading organisation in industrial research, technological development, standardisation and quality activities in MALAYSIA

Slide 19: 

19/58 1, Persiaran Dato’ Menteri Section 2, 40911 Shah Alam Selangor, MALAYSIA HQ area: >50 acres Offices: 8 Branch Offices Subsidiary: 2 wholly-owned subsidiaries 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 1st September 1996: SIRIM Berhad was fully operationalised SIRIM Berhad

SIRIM Berhad : 

20/58 TO BE AMONG THE WORLD’S BEST IN QUALITY & TECHNOLOGY WE MAKE BUSINESSES COMPETE BETTER THROUGH QUALITY & TECHNOLOGY INNOVATIONS VISION MISSION 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 SIRIM Berhad

Products & Services : 

21/58 Standards & Quality Research & Technology 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 Products & Services

Incubator in Malaysia : 

22/58 Incubator in Malaysia Started in mid 80’s at research institution (SIRIM), University Expanded to Technology Park Technology Cluster-based incubator Multimedia Super Corridor (MSC) Private incubator

TBI - University Incubator Technology Clustering : 

23/58 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

TBI - Technology Parks : 

24/58 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, R&D & emerging technologies

SIRIM TECHNOLOGY INCUBATION - A CASE STUDY : 

25/58 SIRIM TECHNOLOGY INCUBATION - A CASE STUDY

SIRIM Incubator Model : 

26/58 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 Technology Transfer & Consultancy Services Advisory Services After-Care Service

SIRIM Off-Site Facilities and Branch Offices : 

27/58 IPOH KUANTAN KUALA TERENGGANU KUCHING KOTA KINABALU SHAH ALAM MELAKA JOHOR BAHRU BRANCH OFFICES BUTTERWORTH SIRIM Off-Site Facilities and Branch Offices Kulim AMREC LIAISON OFFICE-KOTA BARU Rasa RAMET Sepang Incubator Centre National Metrology Laboratory LABORATORY / CENTRE LIAISON OFFICE- SEREMBAN Thailand Singapore Borneo Island/ Indonesia

5. Conclusions/Recommendations : 

28/58 5. Conclusions/Recommendations

Technology Business Incubator as Catalyst of Growth : 

29/58 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;

Technology Business Incubator as Catalyst of Growth (continue) : 

30/58 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

Conclusions : 

31/58 Conclusions Long Term Planning and Visionary Leaders Malaysia’s 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

Conclusions : 

32/58 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

Contact & Information : 

33/58 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 : 603-8775 7200 Fax : 603-8706 2553, 603-8775 7220 HOT LINE PHONE : 603-5510 35 35 FAX : 603-5510 8095 WEBSITE : http://www.sirim.my E-MAIL : web@sirim.my Mdm. Goay Peck Sim (peck.sim_goay@sirim.my) Mr.Mohd Ghazali Mohd Yunos (ghazali@sirim.my)

Other Resourceful Links : 

34/58 Other Resourceful Links

Slide 35: 

35/58 THANK YOU FOR YOUR ATTENTION