The document discusses the importance of innovation for driving economic growth and addresses future challenges related to food security, energy security, and climate change. It argues that life sciences and biotechnology will be major contributors in developing solutions through areas like agriculture, industrial biotechnology, and healthcare. The opportunities in developing a biobased green economy are large, with estimates that the sector could represent 25% of global GDP by 2030. Malaysia is encouraged to access innovation globally to help achieve its goal of becoming a developed nation.

1. Innovation in the Emerging Biobased Economy Roger Wyse Co-Chairman MLSCF Managing Director Burrill & Company “ Innovation Without Boundaries” CEO’s Life Sciences Conference

4. Just Two Years Ago: Malaysia Endorsed An Economic Growth Strategy Based On Innovation

5. Strategy recognized need to invest locally but access globally Indeed the Biotechnology Policy based on the same principle had been implemented a just one year earlier

10. Get Creative: Why Green Innovation is the Key to Business Growth--Even in Tough Times by Andrew Winston Harvard Business Review August 2009

11. A $100 Billion Plus Revenue Industry, 2009 $89 B $22 B $8 B A $260 Billion annual investment in Life Sciences

12. By 2030 the “green economy” is projected to represent 25% of global GDP

13. Food Security We have options: Agriculture Biotechnology Increase productivity Reduce inputs, improve nutritional value Reduce environmental impact

14. The Demands for Agriculture on Increasing Index (1970 = 100) Freshwater ecosystems Source: United Nations, 1999 More food and now fuel on less land with half the water 100 90 80 70 60 50 40 1970 75 80 85 90 95 99

16. Biotech crop cultivation continues to grow Trait Hectare Growth: 22 Percent from 2006 to 2007 118 Mha to 144 Mha Cumulative biotech crop acres: 2 Billion Acres, reached in 2008 55 million farmer decisions 13+ million farmers cultivated Biotech crops in 2008 11+ million resource poor farmers

18. Source: Cotton Corporation of India Technology Has Reshaped Cotton Farming And The Textile Industry Of India Hybrids Biotech Indian Bt cotton acreage for 2008 - 80% of Hybrid market! Bollworm/Budworm sprays reduced from 5.9 to 1.4 Total insecticide costs reduced Lint yield increased by 37 lb. per acre 60 M jobs in India Dependent on Cotton

21. Energy Security

22. European View of Energy Security EU

24. Renewable Biofuels, Materials and Chemicals Increased recovery of oil We have options: Industrial Biotechnology

25. Biomass sourced fuels are expected to take 12-14% of the global gasoline market by 2015; 25% of by 2030 Big oil is investing Shell Chevron ExxonMobil Dupont ConocoPhillips Totale Petrobras

26. Biomass is Key to a Sustainable Future

27. Future of Non-hydro Energy Generation is Biomass EIA-Annual Energy Outlook 2009. Early Release

29. A Bio-Refinery Industry is Emerging Petrochemical Industry Fuels: Gasoline, diesel Chemicals Materials Feedstocks and intermediates Crude oil and natural gas Hydrocarbons Biobased Industry Plant biomass and wastes Sugars, oils, etc. Fuels Bulk and Specialty Chemicals Biofuels: Alcohols, Alkanes Biodiesel BioChemicals BioMaterials Concept is not new, 100’s of biorefineries currently are in operation

32. Synthetic biology offers exciting prospects Example: Microbial synthesis of artemisin

33. Algae is Hot !! Near Term - could be in Carbon Capture

35. Opportunity for Malaysia The Palm Biorefinery Long – Term Opportunity: 5 – 10 years FFB CPO Fertilizer Biofuels, Chemicals, Materials Sugars Fermentation Units Fertilizer Plantation Specialty Chemicals Plantation Fronds Trunks Biorefinery

36. The Future Is Bright But Must Be Entered Carefully Energy Security Global Climate Change Drivers of a Green Economy Context for Development Food Security Sustainable Agricultural Production Food Biomass Biorefinery

37. Healthcare Biotechnology

41. Pharma is looking to diagnostic partners to support their therapeutic activities Pharma Diagnostic Partnership Deals

43. Overall Indexed Clinical Trial Costs Major Cost Factor in Drug Development Malaysia should be high value not low cost option

46. The Obesity Epidemic % Overweight and obese in adults 20-74 years old 0 10 20 30 40 50 60 70 1960- 1962 1976- 1980 1999- 2000 2003- 2004 Overweight Obese

48. It Is All About Commitment, Persistence, And Execution Timing is now; Markets are open Valuations are attractive Technology is ready

49. Key Elements of Success Policy Regulatory Research Talent Capital Infrastructure

50. San Diego’s High Tech History 1955 - General Atomics 1956 - Scripps Clinic & Research Center 1960 - UCSD Founded 1963 - Salk Institute 1968 - Linkabit 1978 – Hybritech 1985 – UCSD CONNECT and Qualcomm Founded 1990-93 – 63,000 Jobs Lost 1995 – New Boom Need an Acceleration Strategy: Organic is too slow! 1960 1970 1980 1990 2000 Series of Catalytic Events VC Funding

51. Need To Invest Locally But Access Globally Adapt The “Open Innovation” Strategy Of Innovation Driven Corporations

52. The Innovation Path Capital Efficient, Quicker, More Flexible Basic Research In Market Applied Research Proof of Concept Development Commercial Launch Global Innovation Pathway Execute in Malaysia Access Globally

53. Short Term Strategy Next 5 Years A Market Driven Strategy

54. Medium Term Strategy 5 – 10 Year Horizon A Market Informed, Technology Enabled Strategy 2009 - 2017 Define New Markets where Malaysia can have a sustained competitive advantage. Evaluate and access innovation early that will position Malaysia in future market areas with a sustainable competitive advantage Basic Research In Market Applied Research Proof of Concept Development Commercial Launch

57. Enjoy the next two days, network, explore opportunities Great opportunities exist in this room

58. Thank You “ Innovation Without Boundaries” CEO’s Life Sciences Conference Malaysian Life Sciences Capital Fund www.mlscf.com