Perak biotechnology masterplan-8th

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  • 1. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  PERAK   BIOTECHNOLOGY   STRATEGIC  PLAN  AND  ACTION  PLAN     Contents    A.   INTRODUCTION  .......................................................................................................................   4  B.   Definition  and  Categories  of  Biotechnology  ...........................................................................   5  C.   Biotechnology  and  Perak  ........................................................................................................   8   1.   Underlying  State  Policies  .....................................................................................................   8   2.   Perak  Biotechnology:  Strength  and  Challenges  ..................................................................   9   3.   Existing Biotechnology Initiatives in Perak  ......................................................................  11   a.   Perak  Bio  .......................................................................................................................  11   b.   Healthcare  biotechnology  .............................................................................................  13   c.   Agriculture  biotechnology  .............................................................................................  14   d.   Industrial and green biotechnology  ...............................................................................  16   e.   Bioinformatics  ...............................................................................................................  17   f.   Human Resource Development  .....................................................................................  17  D.   Perak  Biotechnology  Strategic  Plan   .......................................................................................  19   1.   Introduction  .......................................................................................................................  19   2.   Success Factor  ...................................................................................................................  20   3.   Policy Thrust  .....................................................................................................................  21  E.   Perak  Biotechnology  Action  Plan  ..........................................................................................  25         1  
  • 2. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   Table  of  Figures  Figure  1:  Biotechnology  Focus  Areas  in  Malaysia  ...........................................................................   6  Figure  2:  Biotechnology  Capacity  Building  2005-­‐10  ........................................................................   6  Figure  3:  Creating  Business  2011-­‐2015  ...........................................................................................   7  Figure  4:  Long  Term  Development  2016-­‐2020   ................................................................................   7  Figure  5:  Some  existing  biotech  activities  in  Perak  .......................................................................  11  Figure  6:  Perak  Bio  Vision  and  Mission  .........................................................................................  12  Figure  7:  Roles  of  Perak  Bio   ...........................................................................................................  12  Figure  8:  Perak  Bio  Organisation  Structure  ...................................................................................  13  Figure  9:  RAC  Aquaculture  in  Segari  ..............................................................................................  15  Figure  10:  Biotechnology  Success  Factor  ......................................................................................  20  Figure  11:    Action  Plan  ..................................................................................................................  25  Figure  12:  Individual  Success  Factors  ............................................................................................  27  Figure  13:  Critical  Path  Analysis  Chart   ...........................................................................................  28  Figure  14:  Biotechnology  Clusters  in  Perak  ...................................................................................  30  Figure  15:  Perak  CBioD  Initiatives  .................................................................................................  31  Figure  16:  Formation  of  Specialised  Facilities  ...............................................................................  33  Figure  17:  Advisory  Centre  ............................................................................................................  35  Figure  18:  Perak  Hitech  Park  (Biotech)   ..........................................................................................  37  Figure  19:  Perak  Biotech  Park  Development  Structure  .................................................................  38  Figure  20:  Development  Progress  of  Perak  Hitech  Park  ...............................................................  38  Figure  21:  Basic  Concept  for  Perak  Biotech  Park  ..........................................................................  39  Figure  22:  Main  milestones  of  Perak  Biotech  Park  Development  .................................................  40  Figure  23:  Concept  for  Perak  Bio  HQ,  Incubators  and  PLSI  (based  on  Manchester  U)  .................  41  Figure  24:  Value  Proposition  of  PLSI  .............................................................................................  46   2  
  • 3. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  Figure  25:  Vision  and  Missions  of  PLSI  ..........................................................................................  47  Figure  26:  Perak  Hitech  Venture  Fund  ..........................................................................................  50     3  
  • 4. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)    A. INTRODUCTION  1. The main objectives of the creation of the Perak Biotechnology Strategic Plan and Perak Bio Business Plan include: a. To take stock of Perak’s position in biotechnology sector from the Malaysian and more perspective; b. To provide a broad based Strategic Plan on the development of biotechnology in Perak; and c. To provide a broad based and flexible action plan.2. Perak Biotechnology Strategic Plan will be guided by various State and National policies including the National Biotechnology Policy (NBP), the Malaysian Third Industrial Master Plan 3 (IMP3), Perak Maju 2015 Policy Statement, K Perak 2010 Strategic Plan and Gagasan Perak Amanjaya.3. The Strategic Plan incorporates the followings:- a. The vision planning, strategic thrust and directions that is economically, socially, politically and environmentally viable; b. Identify the focus niche key areas with its competitive advantages; and c. An economic plan that is conducive to foster development of biotechnology industries in the State of Perak. 4  
  • 5. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  B. Definition  and  Categories  of  Biotechnology  1. Biotechnology has been in existence for centuries, long before the terminology was even coined. Biotechnology can be categorised into classical and modern biotechnology. While classical biotechnology is always referred to as the production of useful products by living microorganisms such as the fermentation process that produces beer or food items, modern biotechnology began in the 1970s with the research into genetic engineering based on the two basic techniques of recombinant DNA technology (rDNA), hybridoma technology1 and cell fusion technology.22. Biotechnology can be broadly defined as the use of living organisms to make a product or run a process.3 Biotechnology also refers to any technological application that uses biological systems, living organisms or derivatives to make or modify products or processes for specific uses,4 or industries. Biotechnology is as also defined as “the application of science and technology to living organisms, as well as parts, products and models thereof, to alter living or non-living materials for the production of knowledge, goods and services.”53. Biotechnology combines disciplines such as genetics, biochemistry, microbiology, and cell biology and has been called the “technology of hope” for its ability to improve the quality of life through advancements in food safety, health care, industrial and environmental sustainability.64. Among the benefits of biotechnology are increased agriculture output, protection of the environment and production of health care products.5. Malaysia has identified several biotechnology focus areas, as shown in Figure 1 below:                                                                                                                        1   S.N.   Cohen,   .,   A.   C.   Y.   Chang,   H.   W.   Boyer,   and   R.   B.   Helling,   ‘Construction   of   Biologically   Functional  Bacterial  Plasmids  in  Vitro.’,  70  Proceedings  of  the  National  Academy  of  Sciences,  3240,  (1973).  2  ATAS,  Biotechnology  and  Development:  expanding  the  capacity  to  produce  food,  Advanced  Technology  Assessment  System,  Issue  9,  (New  York,  United  Nations,  1992).  3  See  for  example  P.W.  Grubb,  Patents  for  Chemicals,  Pharmaceuticals  and  Biotechnology,  Fundamentals  of  Global  Law,  Practice  and  Strategy,  (Oxford,  OUP  3rd  Ed.,  1999),  224.  4  Convention  on  Biodiversity  (hereinafter  called  ‘CBD’),  Art.2.  5  B.van  Beuzekom  and  A.  Arundel,  OECD  Biotechnology  Statistics  -­‐‑2006,  (Paris,  Organisation  for  Economic  Cooperation  and  Development,  Paris,  2006),  7.  6  A.  Kumar,  ‘Indian  Biotech  Bazaar,  A  Swot  Analysis,’  Biotechnol  J,  May  4:  2,  (5)  543-­‐‑535.  (2007).   5  
  • 6. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   Biotechnology Malaysia – Focus Areas Traditional Complementary Medicines New Agriculture Value Added Products Food Supply High Yield Crop Agri Biotechnology Natural Substances Nutraceutical Tropical Diseases Bioinformatics Microbes Technologies Contract Research Contract Manufacturing Bio Fuel CRO CMO Healthcare Biotechnology Industrial Biotechnology Green Chemistry Clinical Trials Diagnostics & Vaccines BioMedical Bio Materials Instruments Enzymes/CatalystFigure  1:  Biotechnology  Focus  Areas  in  Malaysia The focus areas are within three broad categories namely agriculture biotechnology, healthcare biotechnology and industrial biotechnology.6. The policy encompasses 3 phases, namely capacity building (2005-2010), creating business out of science (2011-2015) and turning Malaysia into global player (2016-2020) as outlined in Figures 2, 3 and 4 below. PHASE 1: SHORT TERM DEVELOPMENT (2005-2010) Action Time Frame Target Establish first phase of the 2005-2010 6 Commercial trophies by year 2010 Biotechnology Business Agriculture Establish as regional centre of • Enhance Agriculture 2005 excellence by year 2009 Biotechnology Centre Establish as regional centre of • Enhance Marine Biotechnology 2005 excellence by year 2010 Centre Healthcare Establish as regional CRO centre by • CRO in Clinical Expertise 2005-2008 year 2008 • CMO in Bio-Generics 2005-2009 Establish as regional CMO centre by • Molecular Diagnostic for year 2009 2005-2010 infectious diseases 2006-2010 Commercialization by year 2010 • Vaccines for tropical diseases Commercialization by year 2010 Industry Biotechnology Generate early revenue for the • Enzymes and Industrial 2007-2008 industry by year 2008 chemicalsFigure  2:  Biotechnology  Capacity  Building  2005-­‐10 6  
  • 7. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   PHASE 11: MEDIUM TERM DEVELOPMENT (2011-2015) Action Time Frame Target Establish second phase of the Biotechnology Business 2011-2015 One Key Transaction every 6 months Accelerator Agricultural Biotechnology • Development of Improved Commercialization success by year Crops 2011-2015 2015 • Development of Research 2011-2015 Commercialization success by year Outsourcing Center 2015 2011-2015 • Development of Natural Products Commercialization success by year 2015 Healthcare • Bio-Banking 2009-2010 Bio Banking products to be commercialized by year 2012 Industry Biotechnology Develop a successful company for both local • Bio-Energy 2011-2015 and export markets by year 2015 2011-2015 Develop a successful company for both local • Bio-Materials and export markets by year 2015 • Bioinformatics initiatives in Contribution towards success of at least 3 Starts in 2006 business accelerator projects by year support of 3 focus area 2015Figure  3:  Creating  Business  2011-­‐2015 PHASE 111: LONG TERM DEVELOPMENT (2016-2020) Action Time Frame Target Agricultural Biotechnology • Bio-pharming 2016-2020 Commercialization success by year 2020 Healthcare Biotechnology Commercialization • Drug discovery 2016-2020 success by year 2020 Industry Biotechnology Commercialization 2016-2020 success by year 2020 • Manufacturing of bio-based productsFigure  4:  Long  Term  Development  2016-­‐2020 7  
  • 8. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  C. Biotechnology  and  Perak    1. Underlying  State  Policies    1. There are three major policies of the State of Perak which may be taken into account at this stage to assist Perak to develop its biotechnology sector. The two policies are Perak Maju 2015, KPerak 2010 and Gagasan Amanjaya.2. The Vision of Perak Maju 2015 is for Perak to become a developed state during 2015 by focusing on state economic development, eradication of poverty and squatters. The mission of Perak Maju 2015 is to generate all sectors towards achieving key economic and social indicators to fulfil the criteria of developed state and increase citizens standard of living and quality of life through comfortable environment and healthy lifestyles.3. To achieve the KPerak 2010, the State Government has prepared three important knowledge development areas, namely the Knowledge Infrastructure (K-Infra), Knowledge Economy (K-Economy) and Knowledge Society (K-Society).4. The K-Economy thrust encompasses both existing and new economic sectors and this is not limited to ICT sector alone. Although the original strategy hinges on developing ICT as an industry as well as ICT as an enabler to spur new economic activities and enhance value-creation, biotechnology should also be included in the aim of K-economy. This is because the aim of K-economy under the KPerak 2010 is to e-enable major industries by tapping the potential synergy from the interaction between new technologies and educated population within an enabling environment for the attainment of knowledge - based economies.5. Sustainable human capital development is a key component of K-Society. Perak has outlined a 5As strategy; consisting of Access (by providing equal access to PC and internet to the society), Awareness (by running awareness programme and engagement activities), Academy (by running basic and advanced ICT courses), Add Value (by enhancing community access points) and Adoption (by implementing commercial and social activities); to build confidence across different segments of the communities in embracing the ICT lifestyle by providing the people with access to technology, skills to use technology; and reason to continue using technology.6. In order to achieve a balanced and sustainable development, Perak has also launched the Gagasan Perak Amanjaya that has 7 specific thrusts namely: balanced development and distribution, community with skills, knowledge and integrity, state and government as a catalyst, social integration, participative and active younger generations, sustainable private sector development, and eco- friendly and sustainable development practices. 8  
  • 9. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  2. Perak  Biotechnology:  Strength  and  Challenges    7. Biotechnology in Perak may take advantage of several other factors. Such factors include: a. Perak is one of the mega-diversity states in Malaysia, which is itself a mega-diversity country in the world. Measuring 21,005 km2, almost half of Perak is covered with forests as much as 10,502km2 where by 95.6% of it is Equatorial Rainforest and the remaining 4.4% is covered by mangrove forests which may provide genetic resources for biotechnology related activities. The Belum and Temenggor forest reserves, approximately of 130 years old, older than the Amazon and the Congo, form the second largest remaining block of virgin forest in Peninsular Malaysia and the largest example of the northern monsoonal Burmese-Thai forest vegetation zone (Bamboo-Schima) in Malaysia. b. The biodiversity can also be combined with the traditional knowledge that may enhance competitiveness in the local and indigenous biotechnology sectors. Traditional knowledge in Perak can be sourced from the various ethnic groups such as the Malay, Chinese, Indian and also the Tribal people. Perak Bio-Corporation has already started operation on this part. c. The lower cost of industrial land and factory building compared to the nearest neighbouring states such as Penang, Selangor and Kedah. The selling price in Perak is between RM 5.00–17.00 per square foot compared to RM 12.20–21.00 in Penang and RM 7.00–22.00 in Selangor. The quit rent is also cheaper, that is a flat rate of RM 3,000.00 per hectare in Perak compared to RM 1500.00–21,095.00 in Selangor. However, the property price should not be the main selling factor as Perak has be able to portray other advantages over other states in attracting those interested in biotechnology. d. Perak has clear objectives of becoming a developed state by 2015, which is reflected in the KPerak and also Perak Maju targets. These two plans will make Perak Government work hard to achieve the targets. For example, the Perak Maju 2015 targets to have a GDP of RM68.43 billion in 2020 from RM34.49 billion in 2010. e. Biotechnology activities are already taking place in various parts in Perak. For example, Perak has designated a Pharmaceutical Park in Seri Iskandar and Biotechnology Park in Ipoh which has two existing pharmaceutical factories. At the same time, there are research and teaching institutions that provide teaching and research in the fields relating to biotechnology. Perak may take advantage of the existence of universities such as University 9  
  • 10. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   Tunku Abdul Rahman (UTAR) and University Teknologi Petronas (UTP) to enhance the human capital development and research and development activities.8. Despite the advantages above, development of the biotechnology sector in Perak faces several challenges: a. Perak faces investment, capital and financial issues which are prevalent anywhere in the world as biotechnology activities are highly capital intensive, whilst at the same time requires highly skilled and knowledgeable workers. Thus, Perak has to be able to find solutions to this problem and Perak cannot rely on the Federal government alone. There is not enough human capital to attend to specific requirement of biotechnology. For example, not many experienced human resources with experience in managing biotechnology business in the state of Perak. Such people guide company growth and move products through the commercialization process to the marketplace. These managers not only have to design and direct the strategic product development plan and face the technical and regulatory hurdles involved, but also have to manage manufacturing, find funding and develop alliances for commercial success. b. The State has to ensure that biotechnology activities not only bring wealth and benefit to the main participants and investors, but also to bring the benefit to as wide a community as possible, so that biotechnology will be the catalyst to reduce poverty, to bring more income equality and to enhance standards of living among the people across the different parts of the state. c. There is culture and innovation gap in biotechnology field in the state of Perak. There are not enough biotechnology starts-up in the state of Perak. Even if there are universities academics, many academics are embedded in the academic mindset and not entrepreneurial in nature. Yet the success of development requires a different set of skills and experience on the commercial side. Lack of biotechnology activities also contributes to the lack in innovation, causing the existence of innovation gap in the state as a result of lack of research and development, technology development, research expenditure and human capital development in the field. d. In order to develop biotechnology commercial activities and to attract investment, Perak has to compete with other states in Malaysia and other countries in the region. Competition within Malaysia comes from more matured biotechnology activities in Penang, Selangor and also through the development of BioXcell in Iskandar Malaysia in Johore. Down south, Singapore has become a world class biotechnology destination for commercial and research development activities which attract large multinational companies. Nevertheless, Perak may be able to compete by leveraging on its main strength i.e. biodiversity. 10  
  • 11. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  3. Existing Biotechnology Initiatives in PerakFigure  5:  Some  existing  biotech  activities  in  Perak   a. Perak  Bio  9. Biotechnology initiative in Perak is led by Perak Bio Corporation Sdn Bhd (Perak Bio), a subsidiary of Perak State Development Corporation (PSDC). Perak Bio is being managed by Puan Rohati Shafie and assisted by Puan Petri Zawahair as the Project Manager.10. Perak Bio, being the lead agency responsible for the coordinated implementation of the Perak Biotechnology Strategic Plan and Action Plan will oversee the implementation of the Strategic Plan and the Action Plan. Perak Bio may have the following Vision and Missions: 11  
  • 12. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  4Figure  6:  Perak  Bio  Vision  and  Mission1. The role of Perak Bio includes: Figure  7:  Roles  of  Perak  Bio   12  
  • 13. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   BOARD OF DIRECTOR Dato Hamdi b Abu Bakar Tn Sayed Shariffuddin b Sayed Shamsuddin ADVISOR Tn Hj Sarjiddin b Ahmad Hanif Dato Samsudin b Hashim Pn Norhaslinda bt Dato Ayob En Mohamed Sani b Supi En Zaffani b Azul Islami CEO Rohati bt Shafie ASSISTANT CEO Vacant Petri Zawahair bt Megat Ishak Petri Zawahair bt Megat Ishak MANAGER MANAGER OPERATION & SERVICES & MGMT INVESTMENT & PROJECT BUSINESS DEVELOPMENT FINANCE & ADMINISTRATION OF BIOD RESOURCES MANAGER DEVELOPMENT MANAGER & HUMAN RESOURCES ASSISTANT MANAGER ASSISTANT MANAGER ASSISTANT MANAGER ASSISTANT MANAGER Vacant Vacant Vacant Vacant EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE Vacant Vacant Vacant Vacant CLERK CLERK Vacant Vacant ` BIO BIO BIO BIODIVERSITY BIO MARINE BIO ENVIRONMENTAL SERVICES AGRICULTURE HEALTH CARE & TRADITIONAL ANIMAL & INDUSTRIAL BIOFUEL (EM TECHNOLOGY) KNOWLEDGE AQUACULTUREFigure  8:  Perak  Bio  Organisation  Structureb. Healthcare  biotechnology  2. In healthcare biotechnology, there is a 150 acre site of Seri Iskandar Pharmaceutical Park in Seri Iskandar. Nevertheless there is low take up rate of the spaces in the Pharmaceutical Park. One is the Idaman Pharma Manufacturing Sdn. Bhd, (previously known as Safire Pharmaceuticals (M) Sdn. Bhd.) a bumiputra owned manufacturing generic pharmaceutical products mainly for the government contracts. Another occupant in the Seri Iskandar Pharmaceutical Park is Pharmasafe, a healthcare products manufacturer (contact lense solution and the like).3. In addition, Hovid Research Sdn Bhd, a Bionexus Company is also involved in the clinical research services, pre-clinical drug development, drug delivery systems and its related services for pharmaceutical companies. Stem Life, a stem cell based company with Bionexus Status is also having its branch in Ipoh.4. Teleflex, a US medical device group with its headquarters in Philadelphia plans to turn its manufacturing and research and development facility in Taiping into a hub for its next generation medical devices. 13  
  • 14. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   c. Agriculture  biotechnology    5. Many activities are also taking place in the agriculture and aquaculture sectors. Under the aquaculture sector, Perak has designated more than 26 areas as the aquaculture industrial zone (ZIA). Among the objectives of ZIA are to provide a supply of aquaculture products in order to balance the trade, to increase the income of small aquaculture entrepreneurs and workers to a minimum of RM3000 per month, to ensure fish and fishery products are safe and of high quality, to increase the participation of private sectors in the ZIA, and to create an efficient aquaculture network.6. Among the high impact ZIAs in Perak are Rungkup, Hilir Perak (2,175 hectares) for salt water shrimps in ponds, Tasik Kenering (100 hectares) and Tasik Temenggor (100 hectares) acres both in Hulu Perak for the caged freshwater fish. In addition there are 100 hectares being gazetted as ZIA in Bukit Merah in the district of Kerian for arowana breeding. Among the ZIA already identified are Tasik Temenggor (200 ha, 1600 mt), Tasik Kenering (60 ha, 480 mt), Tasik Chenderoh (60 ha, 380 mt), Kayan and Lekir (451 ha, 7036 mt), Segari (77 ha, 1200 mt, Pulau Mentagor (200ha, 8000 mt) and Lawan Kuda (122ha).7. Among areas identified for mining ponds are Batang Padang (900ha), Perak Tengah (100ha), Kuala Kangsar (35ha), Larut Matang (23ha) and Hulu Perak (40ha). The mud flats areas of Kerian (250ha), Larut Matang (950 ha), Manjung (115ha) and Hilir Perak (113 ha).8. The Fisheries Department plans hatcheries for fresh water fish (34 and 172 m fries), Udang Galah (4 and 20m fries), Sea Shrimp (47 and 938 m fries), sea water fish (8 and 19 m fries).9. The Department of Fisheries Perak runs several centres in Perak, such as the Pusat Penetasan Udang Galah Kampung Acheh, Pusat Ikan Hiasan Enggor, Pusat Teknologi Perikanan Kampung Acheh, Pusat Pengembangan Akuakultur Tapah and Pusat Pengembangan Akuakultur Banding.10. Under the Perak Maju 2015 strategic plan, the Fisheries Department plans to develop marine fisheries, aquaculture, fisheries produce processing and ornamental fish. To develop aquaculture business, the Fisheries Department plans to create Zone Industri Akuakulture (ZIA), redevelop mine ponds, mud plans and develop hatcheries for fish and shrimps. The Fisheries Department plans to have commercial, large scale, high technology and integrated development involving private sectors. The development process will take into account conservation objectives and sustainable use of resources with the aim of producing competitive, high quality and safe produces.11. In relation to the above, Perak Bio is also developing a 150 acres area through its JV company RAC Sdn Bhd in Segari and another 40 hectares area in Teluk 14  
  • 15. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   Senangin, both in the district of Manjung for aquaculture projects. The site in Segari will also be recognised as ZIA.Figure  9:  RAC  Aquaculture  in  Segari12. Perak may benefit from the research and development conducted at the Veterinary Research Institute in Ipoh. It provides leadership in research into animal health and diseases of economic and zoonotic importance and serves as the national animal health reference centre. Established in 1948, it spearheads the research and development of novel vaccines and biologicals for veterinary use using local isolates. These vaccines are tested and proven for safety, efficacy and potency following USDA standards.13. There are several agriculture biotechnology activities already taken place in Perak. For example, there is plant tissue culture facility operated by Actinalpha Biotech Sdn Bhd in Kampar and Ipoh. In addition Klonsawit Agrocom, an Ipoh based company is also involved in palm oil cloning using the in vitro technique of tissue culture known as somatic embryogenesis.14. Perak has several research institutions capable of contributing to the development of agriculture biotechnology. One is the Pusat Pembangunan Komoditi Jabatan Pertanian in Titi Gantong, Bota, which is involved in the development of 15  
  • 16. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   horticulture. Another is the Pusat Penyelidikan dan Pembangunan, Lembaga Koko Malaysia, in Sungai Sumun, Perak.d. Industrial and green biotechnology  15. Green biotechnology involves the production of environmental friendly products and processes using or contributing to biotechnology techniques. For example Wing-M Chemical Sdn Bhd has been producing biomass from palm oil kernels in Kanthan Industrial Estate in Ipoh for use mostly in the pottery industry as alternative to fossil fuel. In another development Sariyaa Sdn Bhd is also developing alternative fuel from bamboo based in Gerik Perak.16. In the field of green biotechnology, Enretech (M) Sdn Bhd, a Bionexus Company, a company related to Enretech in Australia, plans to have activities related to organic absorbents and soil treatment technologies using cotton and recycle cellulose materials which can be used in food, health and education.17. Related to Hovid, Bio-Fertilisers Sdn. Bhd, another Bionexus Company, is a biotechnology company specializing in the production and use of microorganisms in agriculture, horticulture, animal husbandry and aquaculture. Their products aim to improve the quality and yield of the relevant produce as well as to maintain their sustainability. The Company’s area of focus is research and development using microbes to:- a. Remediate the environment (soil, water, waste) via bio-augmentation; b. Control pathogens and pests using bio-pesticides; c. Enhance plant and animal health, (hence better yield); d. Improve the aesthetic quality of produce; and e. Enhance sustainability18. Bio-Fertilizers Sdn. Bhd. is committed to formulate highly efficient and harmless products that will help reduce environment pollution yet able to maximize the returns from the land. The Company’s present line of products include plant growth promoting microbes (bio-fertilizer), soil and water remediation microbes also known as effective microorganisms, probiotics for aqua culture like photosynthetic bacteria (PSB) and other growth enhancing microorganisms for livestocks. Organisms like fungus that help to degrade organic wastes faster are also available. Pesticides, using microbes, for control of pests in agriculture are also being developed. 16  
  • 17. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  19. Another related activity is in the field of biofuel through Carotech Biovit, a Bionexus Company, a subsidiary of Carotech Berhad which is engaged in the processing and extracting of palm phytonutrients. Carotech Berhad is a Malaysia- based company engaged in the extraction and processing of nutrients from palm oil for the purpose of manufacturing and producing pharmaceutical, phytonutrient and oleochemical products. The Company principally operates in three geographical areas: Asia and Asia Pacific region; North and South America, and Europe. e. Bioinformatics20. Bioinformatics is an inter-phase between information technology and biotechnology. There is no single definition of what is meant by bioinformatics. There are few definitions including “the backbone computational tools and databases that support genomic and related research, which broadly encompasses the study of DNA structure/function, gene expression and protein production/ structure/ function”; “the application of information technologies and sciences to the organization, management, mining and use of life-sciences information” and “the application of information technologies to the processing of molecular biology datasets” (Bilateral and the Bioinformatics Industry Opportunity Taskforce 2002).21. At the moment there is no commercial activity involving bioinformatics in Perak although there could be some activities in research institutes such as the Institut Penyelidikan Veterinar and also at the Lembaga Koko. f. Human Resource Development22. There are several institutes of higher education that can contribute towards human resource development in the field of biotechnology in Perak. One is Universiti Teknologi Petronas (UTP), based in Seri Iskandar. Although UTP is petroleum technology based, there are several clusters that could be of interest to biotechnology sector, such as Chemistry cluster, computer information systemand physic cluster. Another important institution of higher education is University Tunku Abdul Rahman (UTAR) in Kampar that has biotechnology related teaching and research activities.23. UTAR offers life science degree programmes covering biomedical science, biotechnology and biochemistry. The bachelors honours degree in biochemistry touches on the study of molecular processes of life while programmes covering biotechnology and biomedical sciences are specialised programmes built on the 17  
  • 18. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   concepts of biochemistry. UTARs Bachelor of Science (Hons) Biotechnology focuses on the fundamentals and applied aspects of biological sciences. The Bachelor of Science (Hons) Biomedical Science emphasises developing sound knowledge and analytical skills for use in the medical line and in clinical sciences. The three-year programmes provide students with theoretical knowledge and practical skills. One of the strongest features of UTARs life science programme is its global appeal as students are not only taught core subjects but are also required to take elective subjects such as business, management, human relations, ethics, entrepreneurship and social issues. Students are also encouraged to intern after their second year of study. The firms include Sime Darby Technology, Vivantis, Sunway Medical Centre and Temasek LifeScience Laboratory Singapore. 18  
  • 19. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  D. Perak  Biotechnology  Strategic  Plan  1. Introduction  1. Perak is challenged with minimal capital and managerial talent, insufficient infrastructure, and processes that impede commercialization of technology by private business. To be globally preeminent, Perak must: a. Spark innovation and discovery by building networks among scientific and research resources and those capable of developing new ideas. b. Attract research and management talent that can drive formation of the next generation of companies. c. Encourage greater commercialization, so society and the state economy can benefit sooner. d. Respond to emerging societal, scientific and economic trends. e. Provide a globally competitive environment and the perspective for collaboration among institutional, scientific, entrepreneurial and public- private institutions.2. Developing biotechnology business and attracting biotechnology investment is a massive task faced by the State of Perak.It is a norm that, investors would consider investing in a country or a location if: a. they can lower costs through a lower cost work force and good external supports (such as government incentives); b. they can take advantage of the capital; c. they can be closer to partners or clients and diversify risk by locating another facility elsewhere. They would like to benefit from being close to similar businesses and universities and research centres; d. the biotechnology business may take advantage of any special technology, such as a product that crosses industry boundaries (for example, a therapeutic that works in conjunction with an optoelectronic device); e. there is the level of infrastructure meeting company needs. Research, development, and manufacturing all have different needs and different levels of support. Smaller operations tend to need more support from a structured business park because the size of their operation does not justify 19  
  • 20. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   the expense of running their own utilities, for example. Larger operations may be able to save money by contracting directly with outside providers.3. Thus, Perak requires policy thrusts that are able to meet the expectations of the investors and stakeholders in the biotechnology sector whilst at the same time fulfil the socio-economic needs of the people in the State.2. Success Factor4. Perak needs a clear Biotechnology Policy Thrusts, in tandem with and complements the National Biotechnology Policy in order to meet the following success factors:Figure  10:  Biotechnology  Success  Factor   20  
  • 21. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)    3. Policy Thrust  5. In order to meet the success factors, it is proposed that the state of Perak adopts the following policy thrusts:Thrust One: Development and Acquisition of The Right Technologies6. Access to new technologies and scientific advancements is the foundation for innovation opportunities. Biotechnology industry relies on a large number of new discovery and enabling biotechnologies, which drive innovation and will be the source of future economic value. Most developed countries increase their investments and developing strategies in order to capitalize on innovation. Technologies in biotechnology area cover a wide range. a. First, Perak has to identify home-grown technology in Perak, such as traditional knowledge, or industrial technology, either being developed by the local industry or through local centres of excellence. In addition it may tap on proven technology developed by other Malaysian companies or centres of excellence and those which may have being commercialized or pre-commercialised. Using the concept of Public-Private Partnership and Private Finance Initiative, Perak may encourage commercialisation and creation of new business based on, and expansion of existing business using, those technologies. b. Secondly, the State may encourage foreign parties such as companies and institutions to bring in new technologies that could be useful to enhance biotechnology activities in the State. Foreign parties may invest directly on their own, thus bringing in and utilising the technology on their own, although this may not bring direct benefit in terms of local technology development. To increase local understanding and uptake of foreign new and useful technologies, local companies may be encouraged to acquire those technologies either by direct purchase, licensing or forming joint venture businesses. Nevertheless there must be genuine transfer of those technologies. c. Thirdly, there must be continuous support for local innovation and research, development and design in biotechnology related activities. Local innovation and R&D&D may take place either by formation of R&D&D department in existing businesses or within local centres of excellence. The State should also encourage joint collaboration between industry and centres of excellence in order to encourage development of 21  
  • 22. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   useful technologies expected by the public in addition to the development of fundamental technologies. d. Fourthly there must be strategic alliances between the private sector and the public sector, between local and foreign parties and between industry and centres of excellence. In order for Perak to compete with other states and other countries in the region, Perak has to position itself clearly in the field whilst at the same time creating strategic alliance within and without Malaysia. The most important alliance is with Malaysian Biotechnology Corporation but it does not stop there. The state may encourage the development of state driven and private sector drive centres of excellence. In order to promote biotechnology activities there must be Centres of Excellence that is capable of providing research and development in the areas identified by the stakeholders in various biotechnology fields. The centres of excellence may also form strategic alliance as stated above.Thrust Two: Leveraging on Niche Economic Areas7. To be competitive as a regional player, Perak has to be selective in what technology and business it needs depending on what it wants to leverage on. For Perak to move forward with biotechnology industry there is a need for strategic positioning of the state within the biotechnology industry in the country and the region. a. First of all it needs to identify the focus areas of technology. It is suggested that Perak concentrates on the following areas of biotechnology: aquaculture, animal breeding, pharmaceutical and nutraceutical and industrial biotechnology. In the support sectors, Perak may encourage activities in logistics, biosafety, intellectual property protection and management, diagnostics and research tools. b. Secondly, Perak may also leverage on the availability of mega-biodiversity for the development of technologies and for the research and development and design and commercialisation efforts. Perak has to position itself as the centre for biodiversity related research and production of biotechnology products and services including those using traditional knowledge. c. Thirdly, the marine and aquaculture sector is one of the targets of Perak Maju 2015 which targets among others marine fish, aquaculture, fish processing and ornamental fish. Aquaculture and ornamental fish could be the main targets of marine biotechnology. Based on the Perak Maju 2015, ornamental fish would bring in sale value of RM49.5 million in 2010 and 22  
  • 23. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   RM75 million in 2015. These values could be enhanced with the application of biotechnology. It is also expected that aquaculture activities would bring in RM950 million sale in 2010 and RM1,480 million sale in 2015 to the state. In addition, marine biotechnology may also assist in conservation of the marine areas such as the mangrove trees, turtle sanctuaries and other important sectors, which in turn helps to promote tourism. Biotechnology may also be beneficial in boosting fish stocks and able to assist in combating fish and prawn diseases.Thrust Three: Development of Specialised Facilities8. The Perak Biotechnology Park may contain specialised facilities such as advance labs, shared state of the art equipment and advisory services. Another important facility is the existence of special biotechnology cluster or clusters in the State. One such cluster may be created at the Perak Hitech Park within the soon-to-be- developed Perak Biotechnology Park.Thrust Four: Creation and Maintenance of Supportive Public Policy9. As envisaged in the National Biotechnology Policy, the Government of Perak is also committed to support biotechnology as an industry and all the stakeholders within biotechnology industry in the state with investor friendly policies.10. Perak may take advantage of different economic activities in different parts of the state to promote different biotechnology activities. For example, in the central region, the state may be able capitalise the former mining lands and lakes for agri- and aquaculture using biotechnology based techniques. The northern region which is part of the Royal Belum and Temenggor area can become the source of nature based biotechnology activities. The eastern region near Cameron Highlands also has the same advantage. The Western and coastal region may become the focus area for marine biotechnology activities.11. The state may also take advantage of the K Perak and ICT sector in promoting bioinformatics which is necessary in promoting biotechnology sectors. The advances of industrial and agriculture sector may also add to relevant activities in industrial biotechnology such as enzyme production and biofuel and biomass.Thrust Five: Preparing For Educated Workforce 23  
  • 24. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  12. Human capital development is necessary to provide the required skills and expertise needed in ensuring the success of biotechnology industry in the state. Human capital development is not limited to formal classes but may also include continuous learning and skill upgrading classes and trainings.13. In addition to knowledge and expertise in fundamental science, a successful progression through the multiple phases of commercialization requires strong management teams with a combination of technical, financial, clinical, regulatory, business and marketing skills and experience. This includes experience in designing strategy and implementing product development plans, obtaining financing, manufacturing and marketing. Moreover, the business must have a global orientation, since generally a company cannot justify the investment needed to develop a product solely for the Malaysian market alone, but must gain access to the larger foreign markets such as Indonesia, China, the US and EU markets. This requires knowledge and experience in international regulatory requirements, commercialization practices and foreign business operations.14. The largest barrier to competitiveness is the availability of experienced senior management in commercial product development and company growth. Such people able to guide company growth and move products through the commercialization process to the marketplace. These managers not only have to design and direct the strategic product development plan and face the technical and regulatory hurdles involved, but also have to manage manufacturing, seek necessary funding and develop alliances for commercial success.Thrust Six: Encouraging Foreign and Domestic Direct Investment and CapitalFormation.15. In order to encourage economic development, Perak has to rely on private sectors to kick start the activities in biotechnology, to be fully supported by the Government and Government linked companies (GLC). GLCs should also be encouraged to develop new breed of entrepreneurs who are technology savvy and able to handle the commercial risk in developing businesses based on biotechnology.16. The State or its GLC may want to take the lead in encouraging private sector driven financial infrastructure in order to increase private sector take up and investment in biotechnology. Providing access to capital may be necessary in addition to providing fiscal and other types of incentives to investors. The state through supports from Federal Government may also encourage strategic alliance with local banks and financial institutions and encourage the creation of Perak- centric venture capital companies. Strategic alliance may also be formed with foreign recognised and licensed capital providers. 24  
  • 25. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  E. Perak  Biotechnology  Action  Plan  1. The above mentioned Policy Thrusts will have to be implemented by the State of Perak through a special agency designated for this purpose, and this case it shall be the under the portfolio of Perak Bio Corporation Sdn Bhd.    Figure  11:    Action  Plan2. The Action Plan will have to take into account the above mentioned success factors (under the Strategic Plan) and the more detailed success factors for the individual Policy Thrust. 25  
  • 26. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  Thrust Success Factors Strengths/Weaknesses ActionsThrust 1 - Funding for acquisition (lack of capital) Encourage PFITechnology Funding for R&D (lack of capital) Encourage PFI, Federal support Local participants (no clear participants) Import HR from outside Perak - IP Protections Good IP system Human Resource (lack of local talents) Training, capacity building, Perak Life Sciences Institute (PLSI)Thrust 2 – Technology – modern and There are local Encourage further developmentNiche Areas traditional technologies, and R&D, contacts with universities, Technofund Technofund Training IP Good system Encourage PFI Funding/Investment (Lack of capital) R&D Encourage PFI (Need further R&D) Raw Material Develop raw material, contract (Need further farming enhancement) Market Market study, promotion (market unclear) Logistic Need to provide specialised IIP, Lumut (no facilities specialised facility) Training, capacity building, PLSI Human Resource (lack, UTAR provides some HR)Thrust 3 – Participants (lacking specialised Create market to encourageSpecialised facilities) participantsFacilities (lacking experience) Training, capacity building Human Resource Encourage PFI Funding / Investment 26  
  • 27. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   IP (lacking) Market Good system - (depends on industrial Create capacity development)Thrust 4 – Human Resource Some HR available Training, Capacity BuildingSupportivePublic Policy Clear investment approval (lacking clear Prepare guidelines policies guidelines)Thrust 5- Institutions (lacking apart from PLSI, Centres of ExcellenceEducated UTAR and other states’Workforce facilities) Human Resource (lacking professional, Attract foreign and domestic staff teaching staff) Funding / Investment PFI (lack) Switzerland, China, Partners Costa Rica, USA Finalise arrangement, licensing Market Ready marketThrust 6 – Investment Promotion Using Perak Invest, Continuous participationForeign and MIDA, MATRADE,Domestic private contactsDirectInvestment, Funding for investment In contacts with banks, Continuous promotionCapital promotion private equity, VCsFormation Submission of project papers.Figure  12:  Individual  Success  Factors3. The implementation of the various policy thrusts is outlined in the following Critical Path Analysis Chart:Task Earliest start Length Dependent.. 1. Setting  up  of  Perak  Bio   Done   -­‐   -­‐   a. Reorganisation  and  staffing   Jan  2011   3  months   Finance     2. Technology  Selection:           a. Formation  of  standing  committee   Nov  2010   1  month   Acceptance   27  
  • 28. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   b. Identify  home-­‐grown  technology   Dec  2010   1  month   Standing  cmt   c. Identify  regional  technology   Dec  2010   2  months   Standing  cmt   d. Identify  international  technology   Dec  2010   2  months   Standing  cmt   e. Strategic  alliances  on  technology   Dec  2010   6  months   Partners   3. Niche  Business  areas         a. Selection  of  niche  areas   Dec  2010   1  month   Standing  cmt   b. Identification  of  existing  business  for   Dec  2010     expansion       c. Identification  of  potential  investors   Dec  2010     d. Identification  of  required  infrastructure   Dec  2010     e. Entrepreneur  Development   Dec  2010   Focus  Group   f. Identification  of  raw  material  and  suppliers   Dec  2010   4. Development  of  specialised  facilities         a. Logistic  –  Transportation  and  Storage  facilities   June  2010   1  year   Businesses   b. Advisory  Centre   Dec  2010   3  months   Partner   c. Biosafety  and  Biosecurity   Nov  2010   6  months   PFI  partner,           expertise   d. Standards  and  Certification   Dec  2010   6  months   Partner   e. ICT  and  Data  Centre   Dec  2010   6  months   K  Perak/PEO   f. Biotechnology  Park   Jan  2011   1-­‐2  years   Approval,   market,   squatters   5. Supportive  Policies         a. Investment  Policy   Nov  2010   2  months     b. Biodiversity  Management  Centre   Jan  2011   3  months   Exco,  Taman     Negeri   6. Educated  Workforce         a. Perak  Life  Sciences  Institute   Dec  2010   7  months   Location,         Finance,  License   b. Aquaculture  Centre  of  Excellence   Jan  2011   7  months   Location,         Finance   c. Strategic  alliance   Jan  2011   6  months   Partners   7. Foreign  and  Domestic  Direct  Investment         a. Domestic  promotional  activities   Nov  2010   Continuous   Finance,  alliance   b. Foreign  promotion   Nov  2010   Continuous    Finance,  alliance   8. Capital  Formation         a. Venture  Capital  Management   Nov  2010   6  months   Partner,  license   b. Alliances  with  banks/financial  institutions   Nov  2010   6  months   Partner  Figure  13:  Critical  Path  Analysis  Chart  Thrust 1: Development and Acquisition of The Right Technology4. To implement this policy thrust, Perak Bio will have to work with all parties and stakeholders in the value chain and must not work in isolation. The right set of technologies depends upon the creation of niche activities which will utilise the 28  
  • 29. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   relevant broad areas of technology. Upon finding the right set of niche, Perak may proceed to create various clusters in various parts of the state. At the same time the right of set of technologies may be identified by the industry players or in the opposite case to be identified by Perak Bio to be proposed to industry players.5. For the purpose of identifying and acquiring technologies, Perak Bio may form a standing committee consisting of representatives of industry players in the state; representatives from Perak Life Sciences Institute and its associated organisations; representatives from universities in the State and from other parts of Malaysia and eminent persons.6. Funding for the acquisition of technologies and the development of home-grown technologies may be acquired through the relevant industry with the support from Federal agencies such as Malaysian Biotechnology Corporation, Malaysian Ministry of Science, Technology and Innovations and Malaysian Technology Development Corporation. At the same time the industrial player may also contribute towards the cost of research and development and design of the relevant technology.7. Acquisition of Platform Technologies: Perak Bio should also encourage the acquisition of platform technologies with the right business model. At the same time, coupled with local technologies, Perak may need to grow local players to be positioned as key global players in agriculture sector. For example, Multiple Micro-organism Symbiosis Technology (MSF) which can be applied in enzyme- based health product. The acquisition of Supercritical Fluid platform technology will enable large scale extraction of novel bioactive compounds or APIs with high purity and uniformity for the purpose of scale up commercialisation. In order to capitalize on the new opportunities arising from the increasing investments in research, technology transfer from universities to commercial development must be timely and efficient. This includes protecting and strengthening patents and IP, testing proof-of-principle and assessing the market. The transfer process might result in new start-up companies or simply out-licensing, but the research entity must have adequately protected its discoveries through patents and know-how to justify commercialization.Thrust 2: Leveraging on Niche Areas8. The development of biotechnology in the State of Perak will have to be based on certain clusters leveraging on the strength and uniqueness of the State whilst avoiding areas that may have disadvantages.9. It is suggested that Perak creates three niche clusters, concentrating on biodiversity related activities, agriculture and healthcare and services. 29  
  • 30. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  Figure  14:  Biotechnology  Clusters  in  Perak10. One of the niche areas that could be implemented is to capitalise on the existence of large and unique biodiversity as a basis for biotechnology activities. The state may encourage clinical and bio pharmaceutical activities, ranging from the research and development to the commercialisation of finished products.11. Another angle is to develop biotechnology activities from traditional knowledge. Traditional knowledge in herbal and medicinal plants, and a treasure trove of flora and fauna which remains largely unexplored shall be economically developed such as to encourage discovery of novel and bioactive compounds from natural resources that can be extracted, formulated, developed and commercialised for use in ethnic herbal products, food ingredients, functional food, cosmeceuticals, nutraceuticals and botanical drugs.12. The biodiversity combined with the traditional knowledge may enhance competitiveness in the local and indigenous biotechnology sectors. Traditional knowledge in Perak can be sourced from the various ethnic groups such as the Malay, Chinese, Indian and also the Tribal people. There is no single definition of the term “traditional knowledge”. According to WIPO, traditional knowledge is a multifaceted concept that encompasses several components. What characterizes traditional knowledge is the fact that, generally, it is not produced systematically, 30  
  • 31. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   but in accordance with the individual or collective creators responses to and interaction with their cultural environment. In addition, traditional knowledge, as representative of cultural values, is generally held collectively. According to WIPO, contrary to common perception traditional knowledge is not necessarily ancient.13. One must recognise that there is an abundance of economic opportunities from the working of and with traditional knowledge. There are several segments of biotechnology sectors that could be of interest to traditional knowledge holders to innovate further. Examples of such areas are in the area of Traditional Medicine (TM) and Complementary Alternative Medicine (CAM). One of the sub-sectors of the TM and CAM is the supply of medicinal plants, botanical drug products and raw materials. The World Bank reports trade in medicinal plants, botanical drug products and raw materials is growing at an annual growth rate between 5 and 15 percent. Pharmaceutical companies have shown interest in natural product drug development and discovery and this is an area where traditional knowledge holders may want to work or collaborate with these companies.14. Perak will implement the CBioD initiative that leverages biodiversity as catalyst for various economic activities, resulting in more business opportunities not only in core biotechnology sectors but also in related activities such as media content and eco-tourism.Figure  15:  Perak  CBioD  Initiatives15. One area that could also be developed as a support to the biotechnology activities is the concept of “research tourism” where researchers in biotechnology and 31  
  • 32. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   bioprospecting activities are provided with proper facilities and granted access for their research.16. Another area where Perak may start any related CBioD activity is the creation of bioinformatics centre for the protection data relating to biodiversity in Perak and promoting economic activities through commercialisation of the data. The bioinformatics centre will be an interphase between Perak Bio, Perak E- Organisation and K-Perak.17. Marine Biotechnology and Aquaculture: The marine aquaculture sector is one of the targets of Perak Maju 2015 which targets among others marine fish, aquaculture, fish processing and ornamental fish. Aquaculture and ornamental fish could be the main targets of marine biotechnology. Based on the Perak Maju 2015, ornamental fish would bring in sale value of RM49.5 million in 2010 and RM75 million in 2015. These values could be further enhanced with the proper utilisation of biotechnology. It is also expected that aquaculture activities would bring in RM950 million sale in 2010 and RM1,480 million sale in 2015. In addition, marine biotechnology may also assist in conservation of the marine areas such as the mangrove trees, turtle sanctuaries and other important sectors, which then will be able to assist in promoting tourism. Biotechnology may also be used to increase fish stocks and assist in combating fish and prawn diseases. It is proposed that more companies be encouraged to enter the marine and aquaculture segment, particularly in the fish, seaweed and algae sub-segments.18. Agriculture: Focus will also be on producing high end crop, seeds and tissue culture. The state can also encourage development of contract planting. In animal, the use of assisted reproductive techniques and the production of animal feed and vaccines should continue thereby improving productivity in the livestock segment. In addition, the way forward is to develop multiplier farms to ensure the continuous supply of selected animals from nucleus farms to commercial farms. In addition there has to be use of biotechnology techniques such as effective microbes, growth regulators to assist better productivity. The Northern Corridor Investment Authority (NCIA) and the Veterinary Department plan develop a 1000 acre site in Pondok Tanjung, Selama as an integrated animal industry centre including the application of artificial insemination and the production of animal vaccines.19. Agriculture based Industrial and Green Biotechnology: Accelerate development of technology for effective implementation of green chemistry initiatives. Perak can take advantage of its bamboo and palm oil for continuous production of biomass and biofuel. Some of the key barriers to the development of the industrial biotechnology sector are the lack of know-how and experience in the scaling-up process, limited production capacity and efficiency of infrastructure and the high costs of setting up commercial scale facilities. As part of the initiative to support the development of industrial biotechnology sector, the set up 32  
  • 33. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   of shared facilities for outsourcing services is equally critical given the amount of investment required to set up such facilities.20. Human and Animal Healthcare: Perak may also want to position itself as a centre for outsourcing and clinical research, with some logistical expertise. In this field, Perak needs to leverage on the Pharmaceutical Park in Seri Iskandar and the planned Biotechnology Park in Ipoh to develop CMO and CRO in healthcare. At the same time there is a need to find a niche in production such as the production of production tool, diagnostic equipment and research tools. There is also a need to leverage on existing and future centres of excellence to develop the necessary experience, knowledge and infrastructure are present to support the CROs. In order to effectively implement the specific actions identified to develop the various segments, it is proposed that a public-private partnership (PPP) model be adopted through strategic partnerships and collaborations. It is important in this field to attract foreign direct investment into Perak and this has to be done through aggressive and clever positioning of Perak as a preferred destination in health care biotechnology.Thrust 3: Formation of Specialised Facilities21. The formation of specialised services may consist of the following activities:Figure  16:  Formation  of  Specialised  Facilities22. Support Across Value Chain 33  
  • 34. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   a. For the production of raw materials and finish products, the State may encourage the formation of support services within the value chain such as specialist transport systems which cater for specialist products such as insulated containers, fast, punctual and safe delivery of products to nearby airports, ports and Ipoh Inland Port. The state may also encourage the formation of specialised storage facilities at the relevant sites to be shared between small biotechnology industry players. This will reduce cost and at the same time increased investor’s confidence.23. Advisory Centre a. Perak Bio may also facilitate the formation of advisory centres providing legal, intellectual property, commercialisation and international advisory services. Perak may take the lead in providing support to biotechnology industry through the design, set up and manage the proposed Advisory Centre for Biotechnology Law, Regulations and Commercialisation. The Advisory Centre aims to assist in building a successful and flourishing bioscience base in Malaysia by providing stakeholders such as investors and inventors who are involved in research and development and commercialisation of biotechnology products and services with a one-stop shop for legal and regulatory advice. b. It is recognised that researchers at universities and people in small business often have bright ideas about new or improved products, services or processes. Research has shown that innovation, when properly managed, can produce a higher rate of return than many other forms of investment. There are several key issues faced by people who are involved bioscience businesses, especially during the development stage such as: i. How to define and protect intellectual property; ii. Identifying the right staff for growth plans; recruiting them and keeping them; iii. Access to finance sources that understand the long product development lead time to commercially beneficial production; iv. Identification and contracting of appropriate premises and facilities; v. Successful generation of revenue creating opportunities during early stages of business operation; and vi. Clear definition of market potential and route to market. c. It is also recognised that only a very small number of inventions make money in the marketplace. At the same time significant regulatory impediments often exist to the introduction of new products. Depending on 34  
  • 35. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   the product being developed, safety standards, manufacturing standards, licensing and government approvals are sometimes required before a product can be introduced into the market place. It is critical that researchers and those involved in the business be aware of these impediments early in the product development process so their impact on the project can be mitigated.Basic Implementation Mechanisms: Web  Portal   Transfer  of   Experts   knowledge     and   advisors   Advisory  Centre  for   Biotechnology   Regulations  and   Physical  Office   Commercialisation         Capacity   Various  clients   Building    Figure  17:  Advisory  Centre24. Biosafety, Biosecurity, Standards and Certification a. Perak Bio may undertake to provide biosafety, biosecurity and standards and certification services to industry players in the State of Perak and outside the State of Perak.25. Biodiversity Management Centre a. At the same time there will also be a Biodiversity Management Centre which will be the focal point for bioprospecting based activities in Perak by initiating intensive biotechnology based research and development on the State’s biological resources, and to facilitate the documentation of the traditional knowledge of indigenous communities on the utilization of biological resources. b. The Biodiversity Management Centre will: 35  
  • 36. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   i. identify, set priorities and initiate programmes for research and sustainable management and utilization of biological resources in Perak, including bioprospecting; ii. facilitate documentation on the traditional uses of biological resources by the local communities in Perak; iii. to promote awareness of and appreciation for Perak’s rich biodiversity among all sectors of society; iv. to obtain and disseminate accurate and up-to-date information on the biodiversity of Perak; and v. to establish linkages with local and foreign institutions with similar interest. vi. The Biodiversity Management Centre will carry out the following programmes including traditional knowledge documentation programme, research and development (bioprospecting programme), bioinformatics programme, biodiversity garden programme and awareness and appreciation programme.26. ICT and Data Centre. Given that one gene discovery requires a minimum of 2.5 gigabytes of storage capacity, it’s clear that successful competition will demand great computing power. These consortia will bring together leading high- technology hardware companies with key software, engineering, genomic, and related physical sciences to create standards and form new products and services.27. Perak Biotechnology Park a. Perak Bio will have to develop Perak Biotechnology Park, in addition to the existing Seri Iskandar Pharmaceutical Park. 36  
  • 37. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  Figure  18:  Perak  Hitech  Park  (Biotech) b. The mission of the Perak Biotechnology Park is: to turn Perak into a one of the leading biotechnology related investment destination in the Asia and Pacific Region. c. The Objectives of the Perak Biotechnology Biotechnology Park are: i. Enterprise development ii. Job and skill creation iii. Investment Attraction iv. Export and trade v. Innovation and entrepreneurship vi. Diversification of Perak Economy vii. Sustainable economy d. The formation of the Perak Biotechnology Park will involve the strategic partnership between Perak Bio, Perak Corporation Berhad and Strategic Partner. The Federal Government will also be involved in many ways such as by providing support grants, fast track of Federal approval process for 37  
  • 38. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   investment activities and assistance in marketing and promotion activities. The project structure as a whole will be as follows:Figure  19:  Perak  Biotech  Park  Development  Structure  Figure  20:  Development  Progress  of  Perak  Hitech  Park     38  
  • 39. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)    Figure  21:  Basic  Concept  for  Perak  Biotech  Park   e. The implementation of the Perak Biotechnology Park will involve many phases. i. Perak Bio will complete sale and purchase agreement of the Perak Biotech Park land with Perak Hitech Park Sdn Bhd. The consideration may be in the form of cash, shares or part cash and shares and may be in the form of deferred payment. ii. Perak Bio and the Strategic Partner will identify the right biotechnology sector for the right location within the Perak Biotech Park. iii. This is followed by the design of the 1st Phase of the Park. Various other consultants such as biosafety consultant, GMP, GLP consultants will need to be appointed alongside architects with experience in the field. 39  
  • 40. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   iv. The next step is by the building of the main infrastructure such as road, main buildings and other related facilities. v. The Strategic Partner at the same time will be involved in the marketing of the Perak Biotech Park within Malaysia, the region, in the United States and Europe. f. The Strategic Partner will have the following roles: i. The main role of the strategic partner is to be the main project manager, the consultant and the promoter and marketing arms of the Park. ii. The strategic partner is to attract investment from local and regional life science companies, international life science companies, will help developing start up companies, work with universities, and attract other venture fund and private equity. iii. Together with Perak Bio to be involved in developing long term human capital, to develop local entrepreneurs, to create support businesses, and to develop legal and financial regulatory frameworks. g. The main milestone will consist of the following: Develop the Plan for the Optimum Park for Perak including Designing 2H10 the Park including the service of the relevant experts Marketing of the Park: Aggressively promote and recruit new 2010-2012 investments from leading biotechnology and pharmaceutical companies to fully populate the Perak Biotechnology Park Initiate Links with All Stakeholders in the Perak Biotechnology Park 2010/11 (Universities, Companies, Employee Base) Transaction with the First Company to Locate at the Perak 2H10 Biotechnology Park Figure  22:  Main  milestones  of  Perak  Biotech  Park  Development   h. The development of the Biotech Park will consist of the following: i. Main building consisting of: Perak Bio Corporation Headquarters; Incubators and entrepreneur development; Perak Life Sciences Institute and Affiliated Centres of Excellence; ii. Lots for sale/lease; and 40  
  • 41. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   iii. Club House and Temporary accommodations.Some examples:Figure  23:  Concept  for  Perak  Bio  HQ,  Incubators  and  PLSI  (based  on  Manchester  U)    Thrust 4: Supportive Public Policy28. The Government of Perak has to be seen committed to the biotechnology development as providing easy access to lands, capital and development of physical infrastructure such as the Pharmaceutical Park in Seri Iskandar and a Biotechnology Park, a park within Perak Hi Tech Park.29. The Government of Perak also needs to increase the effectiveness and efficiency of decision making process between various agencies in the inter-agency decision making process so as not to hinder investment potentials.30. Perak’s Roadmap success would require four elements critical to innovation: a. To compete globally, it must connect disparate assets, institutions and competencies. b. To promote and support the life science industry, it must connect public- and private-sector marketing, data and knowledge. c. To attract investment, it must connect entrepreneurs, investors and research and development sources. d. To find near- and long-term solutions, it must connect specific “action hot teams” of industry leaders and interested parties ready to go to work. 41  
  • 42. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  31. Perak Bio needs a clear and transparent Perak Biotechnology Investment Review, Investment Approval and Joint Venture Approval Process.32. Among the pertinent items on the Investment Review, Investment Approval include: a. Perak will welcome investment in the identified niche areas, investment within the promoted activities by the State and Federal Government, investment to comply with Federal policies on foreign and domestic equity participation etc, compliance with international investment agreements and economic agreements like the WTO and the free trade agreements. b. Investment must not pose any threat to the state and national security or having dual purpose use such as the export, transshipment, transit and brokering of strategic items, including arms and related material, and other activities that will or may facilitate the design, development and production of WMD and their delivery systems or involves any potential of activities against Anti Money Laundering Act.33. Investment decision making will be guided by the test of “net benefit to the state”, which involve some of the following factors: a. The effect of the investment on the level of economic activity, employment, resource processing, utilisation of parts and services produced on Perak and exports from Perak; b. The effect of the investment on the productivity, industrial efficiency, technological development, product innovation and product variety; c. The effect of the investment on the competition within the industry in Perak; d. The compatibility of the investment with national industrial, economic and cultural policies; e. The Contribution of the investment to Perak’s competitiveness.34. If the investment proposal is not satisfactory but the firm is very interested in investing Perak, the firm should be allowed to amend the business plan accordingly. Rejection of an investment proposal should be the last resort.35. The proposal and approval procedure will include: a. Submitting to Perak Bio the relevant investment proposal; b. Perak Bio will conduct an initial analysis of the investment proposal, external consultants may be appointed to assist in conducting the analysis; 42  
  • 43. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   c. Perak Bio will call for a presentation of the investment proposal within 14 days of the receipt of the proposal. An investment oversight may be formed; d. Perak Bio will issue approval of the investment, or request modification of the investment proposal upon the presentation; e. Investment activities must commence within 3 months or any other suitable date later than the 6 months depending on the individual case. Commencement of investment means taking steps to obtain all the relevant approval from licensing authorities at the federal and state level. Investment project may take place within 6 months upon obtaining the relevant approval from the relevant departments. Perak Bio should be informed of any development on a periodical basis. Extension may normally be issued or reapplication may be submitted upon progress (provide list of licensing requirement in biotech related investment); f. Perak Bio will allocate land to the relevant investors according to the suitability of the location, designated area and the length of lease depends on the activities to be undertaken; g. Perak Bio will monitor development will assist where and when it is requested to do so.36. Joint Ventures between State subsidiaries such as Perak Bio and private parties may take place in order: a. To encourage new but promising investment in the state by providing land as capital; b. To provide an opportunity for long term revenue to Perak Bio in promising businesses; c. Perak Bio must conduct business analysis and risk analysis and net benefit analysis before committing to any joint venture proposal; d. Joint venture participants in the private sector will be required to furnish the capital, resources, and management and technological expertise involved in the operation.37. Perak Bio will have to employ the right strategies: a. Parties in a joint venture should know exactly what they wish to derive from their partnership. b. There must be an agreement before the partnership becomes a reality. c. There must also be a firm commitment on the part of each member. 43  
  • 44. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   d. Form joint ventures with experienced partners. If the partners do not have approximately equal experience, one can take advantage of the other, which can lead to failure. e. Partners in joint ventures would often be better off participating in small projects as a way to test one another instead of launching into one large enterprise without an adequate feeling-out process. f. Inherent in partner selection is the understanding of potential partners goals such as having complementary strategic objectives. g. Potential partners should also possess complementary skills. Each partner must contribute more than capital to the project, bringing other competencies into the venture. One firm may bring technical skills and another may bring knowledge of the market. There are many skills that a firm can bring into the relationship: managerial expertise, production facilities, or access to limited resources. Skills are most easily meshed when partners have similar, but not identical, products. If both produce an identical product it may be difficult for them to work together. Even if skills are complementary competition may drive them apart and cause the venture to fail. h. While the partners must offer complementary objectives and skills, both partners must believe that they can trust each other and that mutual commitment is a reality. i. Cullen identified five typical management structures used by companies for their joint ventures and strategic alliances: dominant parent, shared management structure, split-control management structure, independent management structure, and rotating management. j. The dominant parent is generally the majority owner of a joint venture. In cases where there is no majority owner, the dominant parent may be the company that contributes the most valuable resources. When there is a dominant parent, this company makes more operational and strategic decisions. In many instances, a joint venture is treated as a subsidiary of the dominant parent. Often when large multinational firms have cooperative alliances with firms in small countries, the multinational firm comes in as the dominant parent. k. The shared management structure and the split-control management structure are very similar. In these structures, both parent companies share decision-making responsibilities. In the shared structure, there are an equal number of managers in controlling positions from each company (board of directors, top management, and functional management). In split-control structures, there are not equal numbers of managers from each company at the functional level. In areas of expertise, one company may hold most or 44  
  • 45. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   all of these positions. This can be because of differences in expertise or because one firm may insist on this type of arrangement if they do not want to share their knowledge or technology. l. Independent management structures are found when the management of a joint venture, acts independently of either parent firm. Because a joint venture is a separate, legal entity, this is possible, but it is highly unlikely with new joint ventures. It is more common to see the independent management structure as a joint venture matures and begins to act as an independent firm. If the independent management structure is found in a young joint venture, it is often because the parents agreed to recruit externally for management positions. m. In a rotating management structure, key positions of the hierarchy rotate between firms. Each firm assigns a person for their term. This structure is popular when an alliance partner is from a less developed country. With this type of management, local management can be trained so that technology and expertise are transferred to the community, according to Cullen.38. Perak Bio may also make Strategic Investment. Main priorities include focus on focus on the real return on investment; and a focus on the long term investment strategies in which innovation and speedy implementation of new ideas play a major role  Thrust 5: Educated Workforce39. To succeed in biotechnology and life science industry, Perak must be able to attract and retain exceptional talent capable of envisioning new processes, as well as conducting complex research and transforming those processes into commercial and societal benefits. To ensure that Perak can attract and retain those great minds and talents, the following initiatives are proposed: a. Skills/Training/Talent Imperative: This initiative will attract, nurture, and support scientific and managerial talent and skills to build our core knowledge base and attract the world’s best and brightest to Perak. b. Brain Trust Strategy: To secure the next generation of talent for the future, the Brain Trust Strategy will identify and recruit promising researchers in Malaysia and globally.40. Creation of Centres of Excellence in Perak with focus to enhance human capital development across the main sectors and support programmes. Most talents 45  
  • 46. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   (including those of overseas returnees) usually have high expectations of infrastructure facilities (e.g. research and laboratory facilities), career progression as well as a progressive living and working environment.41. One of the plans is to launch Perak Life Sciences Institute through strategic partnerships with international renowned research universities and life science centres. At the same time there are other centres in the pipeline such the one dealing with diabetics.42. Perak will also encourage collaborations with existing institutions such as the Veterinary Research Institute, UTAR and UTP which creates a network of centres of excellence.43. Thus Perak Life Sciences Institute will be set up in the 4th quarter of 2010 through a strategic partnership between various promoters, strategic partners and Perak Bio.The main value proposition of PLSI is:Figure  24:  Value  Proposition  of  PLSIThe Visions and Missions of the PLSI are 46  
  • 47. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  Figure  25:  Vision  and  Missions  of  PLSIThrust 6: Foreign and Domestic Direct Investment and Capital Formation44. The strategy is to sell Perak as a brand in biotechnology research, development, commercialisation, production and support services. “Perak for Biotechnology.”45. New forms of commercialization are emerging, that add value to existing technologies, update older technologies (past licenses and patents) to meet the demands of new markets and/or apply current technologies to traditional applications but in different industries (i.e. convergence). These strategies may require interdisciplinary involvement on the university campus; construction of a flexible infrastructure; crosscutting managerial talent and competencies; and creative public-private partnerships between industry, academia, manufacturers and entrepreneurs.46. It is important to note that the life science innovation lifecycle is marked by more challenges and more unique industry relationships than those of most other industry clusters, because of numerous clinical trials, regulatory hurdles and patent applications. Consequently, the life cycle can be assisted — or hampered — at a many points: between conception and formation, when critical dollars and facilities become important to sustain the move to growth stage; In the approval stage, when management talent and investment dollars begin to meet cash flows demands; and in the product stage, when growth requires certain talents and capacities for manufacturing, marketing, and distribution. 47  
  • 48. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  47. No single state in Malaysia has all the intellectual or infrastructural assets needed to churn the lifecycle and provide long-term benefits. By combining their strengths, however, our state can create a powerful force capable of serious competition on a global scale. The new business model, which encourages greater specialization and outsourcing, supports this approach. It is time to move away from selfcontained regional clusters and develop specialized networked regions that make each area’s strengths — their technologies and talents — available to institutions and companies throughout the state. This new regional model will make it possible to: share specialized knowledge, leverage infrastructure, converge technologies, and seamlessly connect research operations.48. Forming strategic alliances will enhance the visibility of Perak. One is through continuous cooperation with the Malaysian Biotechnology Corporation, MIDA and MATRADE, attending and exhibiting at various biotechnology exhibitions such as Bio Malaysia and Bio International and London and Cambridge Biotechnology Network. Alliances with countries like India, China and Costa Rica will also assist Perak to understand biotechnology development in developing countries and this could assist the state through south-south development agenda. Alliances within Perak may also assist such as through K Perak (by setting up bioinformatics) and the Perak Halal Corporation.49. Biotechnology companies and institutions in Perak need to create alliance with other relevant members of the industry across the value chain. For example, today, however, big pharma is facing several difficulties, ranging from weak product pipelines, patent expirations, generic competition, and expensive promotional practices and pricing challenges. Investors expect annual growth from big pharma of 12-15%. To achieve this, its value chain model has depended upon large research expenditures to produce the blockbuster drugs needed to sustain sales volumes and share price. Big pharma is restructuring its integrated value chain model, which provides new opportunities to expand the Malaysian and Perak biotechnology industry. Already, since the easy research has been done, big pharma is increasing its reliance on universities for research, as they have the skills to address the growing complexity of treatment. In addition, big firms are forming alliances with smaller biotechnology companies to gain access to new opportunities. In the future, biopharmaceutical companies will be small, faster, leaner and interrelated. Big pharma will maintain a core of activities but outsource research, clinical trials and product development. Consequently, building an industry of smaller, more specialized, faster moving companies will be the value model, rather than the traditional approach of developing an integrated worldwide company.50. Biotechnology companies use several sources of financing, depending on their development stage: private capital from angels and VC funds; public equity from IPOs and follow-on financing; strategic alliances with big biotechnology companies; government grants, contributions and fiscal incentives. 48  
  • 49. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)  51. To encourage research and development, Research Alliances may be formed which leverage, over multiple campuses, the state’s share of federal, international and industry resources for basic research funding into the emerging sciences and strengths in Perak (e.g. bioinformatics, nanotechnology, biopharming).52. The BioInnovation Network will link research assets, commercialization expertise, entrepreneurs and institutions in various districts. This unique private- public partnership will use the current electronic infrastructure and the private sector’s technology backbone to create the virtual linkages across regions and institutions. The network will be used to focus attention, resources and policy to attract more high-skill, high-wage jobs and increase the rewards of investment in research and commercialization in the state.53. There has to be specific financial infrastructure for biotechnology in Perak as competition to obtain funding in biotechnology is stiff. Perak state government may be involved in the setting of physical infrastructure whilst at the same time looking into setting up special funding mechanism for Perak. The biotechnology industry requires strong foundation support from the VCs during pre- commercialisation and commercialisation stages. There is a need to attract greater participation from foreign VCs that specialise in biotechnology industry.54. One has to improve on the existing incentives to invest in Perak especially in biotechnology. Perak may want to negotiate with the Federal Government to provide the same fiscal incentives being offered to investors to invest in other parts of Malaysia. Perak may also want to create special arrangement with Malaysian Biotechnology Corporation and NCIA for special incentives in selected areas and selected locations in Perak.55. It is recommended that Perak sets up its own private sector driven Venture Fund for Biotechnology and ICT sectors. This can be a joint initiative with K-Perak, Perak Bio and a private sector. The Perak Biotechnology Fund will assist potential Perak biotechnology companies to gain access to capital to develop the business and new products. It is a known fact that financial institutions are less interested with biotechnology business and thus availability of funds is crucial 49  
  • 50. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   Figure  26:  Perak  Hitech  Venture  Fund56. There is a need to effectively engage private sectors to implement various business activities. Therefore, appropriate allocation of resources, in terms of financial, infrastructure support and human capital must be put in place for effective commercialisation efforts. Besides FDIs, there is a need to leverage on local businesses to take a leading role in biotechnology.57. One of the most important aspects of the development is to encourage participation of Bumiputra entrepreneurs in all aspects of biotechnology business, in the whole of the value chain, in the upstream, downstream and the support services. Biotechnology business is a wide area encompassing biomedical; agricultural and veterinary; food; Environmental and industrial; and other biotechnology related products that are associated with every aspect of human lives. Thus for the development of Bumiputra entrepreneurs, focus areas will be on certain sectors where short and medium term results are achievable.58. Some pontential activities involving Bumiputra entrepreneurs include: a. commercial agriculture and aquaculture commercialisation such as seed production, nucleus breeding farms, aquaculture business, seed productions; and b. commercialisation of traditional knowledge products and services such as based on medicinal plants and cosmetics.59. Creation of Bumiputra entrepreneurs will be subject to several challenges such as: a. Getting the right types of candidate to be nurtured; 50  
  • 51. Private  and  Confidential  –  Limited  Circulation  (WTI  Consulting  29.10.2010)   b. Providing the right types of training and incentives; and c. Funding. 51