PERAK’S NEXT STEPS Spark innovation and discovery Attract research and management talent Encourage greater commercialization Respond to emerging societal, scientific and economic trends. Provide a globally competitive environment and the perspective for collaboration among institutional, scientific, entrepreneurial and public-private institutions.
THRUST 1: DEVELOPMENT AND ACQUISITIONOF THE RIGHT TECHNOLOGY First, Perak has to identify home-grown technology. Secondly, to bring in new and useful foreign technology. Thirdly, there must be continuous support for local innovation and R,D&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 and halal.
THRUST 2: LEVERAGING ON NICHEECONOMIC AREAS To be competitive as a regional player, Perak needs to strategically position itself. First, to identify the focus areas of technology, e.g. aquaculture, animal breeding, pharmaceutical and nutraceutical and industrial biotechnology; logistics, biosafety, intellectual property protection and management, diagnostics and research tools. Secondly, to leverage on mega-biodiversity for the development of technologies and R&D&D; be the centre for biodiversity related research and production of biotechnology products and services.
THRUST 3: DEVELOPMENT OF SPECIALISEDFACILITIES 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 4: CREATION AND MAINTENANCE OFSUPPORTIVE PUBLIC POLICY Perak may take advantage of different economic activities in different parts of the state to promote different biotechnology activities. The state may also take advantage of the K Perak and ICT sector in promoting bioinformatics which is necessary in promoting biotechnology sectors.
THRUST 5: PREPARING FOR EDUCATEDWORKFORCE Human capital development is necessary to provide the required skills and expertise through formal classes and skills upgrading. Development of knowledge and expertise in fundamental science, technical, financial, clinical, regulatory, business and marketing skills and experience with global orientation.
THRUST 6: FDI, DDI & CAPITAL FORMATION Encouraging private sectors to kick start the activities in biotechnology, to be fully supported by the Government GLC. State or GLC to facilitate access to financial infrastructure and access to capital and incentives. 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.
SUCCESS FACTORS OF ACTIONPLANThrust 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 – Niche Technology – modern and There are local technologies, Encourage further development and R&D,Areas traditional universities, Technofund contacts with Technofund IP Good system Training Funding/Investment (Lack of capital) Encourage PFI R&D (Need further R&D) Encourage PFI Raw Material (Need further enhancement) Develop raw material, contract farming Market (market unclear) Market study, promotion Logistic IIP, Lumut (no specialised Need to provide specialised facilities facility) Human Resource Training, capacity building, PLSI (lack, UTAR provides some HR)
Thrust 3 – Specialised Participants (lacking specialised facilities) Create market to encourage participantsFacilities Human Resource (lacking experience) Training, capacity building Funding / Investment (lacking) Encourage PFI IP Good system - Market (depends on industrial development) Create capacityThrust 4 – Supportive Human Resource Some HR available Training, Capacity BuildingPublic Policy Clear investment approval policies (lacking clear guidelines) Prepare guidelinesThrust 5- Educated Institutions (lacking apart from UTAR and other PLSI, Centres of ExcellenceWorkforce states’ facilities) Human Resource Attract foreign and domestic staff (lacking professional, teaching staff) Funding / Investment PFI (lack) Partners Finalise arrangement, licensing Switzerland, China, Costa Rica, USA Market Ready marketThrust 6 – Foreign and Investment Promotion Using Perak Invest, MIDA, MATRADE, Continuous participationDomestic Direct private contactsInvestment, Capital Funding for investment promotion Continuous promotionFormation In contacts with banks, private equity, VCs Submission of project papers.
CRITICAL PATH ANALYSIS CHARTTask Earliest start Length Dependent..1. Setting up of Perak Bio Done - -• Reorganisation and staffing Jan 2011 3 months Finance1. Technology Selection:• Formation of standing committee Nov 2010 1 month Acceptance• Identify home-grown technology Dec 2010 1 month Standing cmt• Identify regional technology Dec 2010 2 months Standing cmt• Identify international technology Dec 2010 2 months Standing cmt• Strategic alliances on technology Dec 2010 6 months Partners1. Niche Business areas• Selection of niche areas Dec 2010 1 month Standing cmt• Identification of existing business for expansion Dec 2010 Focus Group• Identification of potential investors Dec 2010• Identification of required infrastructure Dec 2010• Entrepreneur Development Dec 2010• Identification of raw material and suppliers Dec 20101. Development of specialised facilities• Logistic – Transportation and Storage facilities June 2010 1 year Businesses• Advisory Centre Dec 2010 3 months Partner• Biosafety and Biosecurity Nov 2010 6 months PFI partner, expertise• Standards and Certification Dec 2010 6 months Partner• ICT and Data Centre Dec 2010 6 months K Perak/PEO• Biotechnology Park Jan 2011 1-2 years Approval, market, squatters1. Supportive Policies• Investment Policy Nov 2010 2 months Exco, Taman Negeri• Biodiversity Management Centre Jan 2011 3 months1. Educated Workforce• Perak Life Sciences Institute Dec 2010 7 months Location, Finance, License• Aquaculture Centre of Excellence Jan 2011 7 months Location, Finance• Strategic alliance Jan 2011 6 months Partners1. Foreign and Domestic Direct Investment• Domestic promotional activities Nov 2010 Continuous Finance, alliance• Foreign promotion Nov 2010 Continuous Finance, alliance1. Capital Formation• Venture Capital Management Nov 2010 6 months Partner, license• Alliances with banks/financial institutions Nov 2010 6 months Partner
THRUST 1 Work with all parties in the value chain. Set of technologies depends upon the creation of niche activities which will utilise the relevant broad areas of technology, followed by creation of clusters. To form a standing committee consisting of representatives of various stakeholders. To acquire funding for the acquisition of the technologies. Acquisition of platform, local or foreign technologies with the right business model.
THRUST 2 (2) Capitalise on biodiversity in clinical and bio pharmaceutical activities. Capitalise on traditional knowledge in in herbal and medicinal plants, to encourage discovery of novel and bioactive compounds from natural resources . Ethnic herbal products, food ingredients, functional food, cosmeceuticals, nutraceuticals and botanical drugs. 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.
THRUST 2 (4) “Research tourism” where researchers in biotechnology and bioprospecting activities are provided with proper facilities and granted access for their research. Bioinformatics centre for the protection data relating to biodiversity and promoting economic activities through commercialisation of the data. Marine Biotechnology and Aquaculture. Agriculture: on producing high end crop, seeds and tissue culture, animal and vaccines. Agriculture based Industrial and Green Biotechnology. Human and Animal Healthcare: CMO and CRO in healthcare.
THRUST 3(2) Support Across Value Chain specialist transport and storage facilities. Advisory Centre providing legal, intellectual property, commercialisation and international advisory services. Web Portal Transfer of Experts knowledge and advisors Advisory Centre for Biotechnology Regulations and Commercialisation Physical Office Capacity Various clients Building
THRUST 3 (3) Biosafety, Biosecurity, Standards and Certification Biodiversity Management Centre ICT and Data Centre.
THRUST 4 (1) Easy access to lands and development of physical infrastructure. To increase the effectiveness and efficiency of agency and inter-agency decision making process. 4 elements for Roadmap to success: connect disparate assets, institutions and competencies. connect public- and private-sector marketing, data and knowledge. connect entrepreneurs, investors and research and development sources. connect specific “action hot teams” of industry leaders and interested parties ready to go to work.
THRUST 4(2) Perak Bio needs a clear and transparent Perak Biotechnology Investment Review, Investment Approval and Joint Venture Approval Process. Investment areas include: in the identified niche areas, within the State and Federal’s promoted activities. Investment must not pose any threat to the state and national security or having dual purpose use. Decision making will be guided by the test of “net benefit to the state”.
THRUST 4 (3) JV in order: To encourage new but promising investment in the state by providing land as capital; To provide an opportunity for long term revenue to Perak Bio in promising businesses; Perak Bio must conduct business analysis and risk analysis and net benefit analysis before committing to any joint venture proposal; Joint venture participants in the private sector will be required to furnish the capital, resources, and management and technological expertise involved in the operation. Perak Bio will have to employ the right strategies.
THRUST 5 Perak to attract and retain exceptional talent. Skills/Training/Talent Imperative. Brain Trust Strategy. Creation of Centres of Excellence in Perak with focus to enhance human capital development across the main sectors and support programmes. Global Tropical Life Sciences Institute in Perak. 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.
THRUST 6 (1) Brand: “Perak for Biotechnology.” The new business model, which encourages greater specialization and outsourcing, supports this approach. New regional model will make it possible to: share specialized knowledge, leverage infrastructure, converge technologies, and seamlessly connect research operations. Forming strategic alliances will enhance the visibility of Perak. Biotechnology companies and institutions in Perak need to create alliance with other relevant members of the industry across the value chain.
THRUST 6 (2) Research Alliances may be formed. The BioInnovation Network (PPP Based) will link research assets, commercialization expertise, entrepreneurs and institutions in various districts. To improve on the existing incentives to invest in Perak especially in biotechnology. 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. Need to leverage on local businesses to take a leading role in biotechnology.