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Presented By: Mr. Mohd. Ghazali Mohd. Yunos (ghazali@sirim.my)

National Workshop on Sub-National Innovation System and Technology Capacity Building Policies to Enhance Competitiveness of SMEs. TECHNOLOGY CAPACITY BUILDING FOR SMEs : Sharing of Malaysia Experience. 27 th – 30 th October 2006 Beijing, People’s Republic of China. Presented By:

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Presented By: Mr. Mohd. Ghazali Mohd. Yunos (ghazali@sirim.my)

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  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, People’s Republic of China Presented By: Mr. Mohd. Ghazali Mohd. Yunos (ghazali@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 USD=RM3.67

  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 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

  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 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

  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: >50 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 WORLD’S 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 • 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 • Contract Research • Product Development • Technology Transfer • Designing • Material Research, Evaluation, Development • Process Optimisation • Incubation • Testing & Quality Control • Training • Consultancy

  22. 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

  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, R&D & 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 • 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

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

  34. Other Resourceful Links

  35. THANK YOU FOR YOUR ATTENTION

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