THE STAR Saturday 13 December 2014

StarSpecial INVEST MALAYSIA

MIDA_InvestMsia_261(w)x320(h)_TheStar_OL.pdf

12/9/14

6:33 PM

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2 INVEST MALAYSIA

StarSpecial, Saturday 13 December 2014

Ripe for the picking

Malaysias economic fundamentals remain strong despite the less than optimistic external economic environment.

Diversified approach
to investment

S the governments main

driver of investment
initiatives in the
manufacturing and services
sector, the Malaysian Investment
Development Authority (MIDA)
has provided and promoted
numerous investment
opportunities as well as facilitated
joint ventures across multiple
industries.
MIDA has exceeded its
2014 target of RM52bil for the
manufacturing sector.
For the first nine months of
this year, approved investments in
the manufacturing sector totalled
RM63.5bil, an increase of 81.4%
compared to the corresponding
period last year.
Manufacturing projects
approvals during this
period were concentrated in
petroleum products (including
petrochemical), chemical and
chemical products, electric and
electronics, basic metal products
and transport equipment.
These five industries play a
major role in the development
of the manufacturing industry,
which accounted for RM50bil
or 78% of the total investments
approved for the period.
Malaysias manufacturing
sector continues to grow and
transform as the country
substitutes low value-added
assembly operations for high
value-added activities that
promise long-term growth.
The manufacturing sector plays
a big role in contributing to the
gross domestic product (GDP),
which currently stands at about
25%.
Malaysias economic
fundamentals remain strong
despite the less than optimistic
external economic environment.
During the first half of
this year, all sectors recorded
expansion, with growth driven by
the services and manufacturing
sectors amid resilient domestic
demand and an improving
external sector, says Datuk
Azman Mahmud, chief executive
officer, MIDA.
Azman adds that the
manufacturing sector expanded

strongly, the highest growth in

three years, spurred by higher
global semiconductor sales.
Meanwhile, the services sector
expanded further, led by strong
activity in the wholesale and retail
trade as well as communication
subsectors.
During the first half of this
year, the services sector growth
increased by 6.3% supported by
strong domestic consumption and
investment activities.
Currently, the services sector
accounts for 55.2% of the countrys
GDP compared to governments
target of 67% by 2020.
For the first nine months of
this year, 3,422 projects with
investments amounting to
RM96.6bil were approved in
the services sector, comprising
domestic investments totalling
RM84.8bil and foreign
investments of RM11.8bil.
These approved projects were
expected to create about 77,800
employment opportunities.

No time like the present

The recently tabled Budget
2015 forecasts an economic
growth between 5% and 6%.
This growth is expected to
be reinforced by private and
public investments, which are
anticipated to surge by 10.7% and
4.7% respectively next year.
Malaysia can expect
new growth areas in the
manufacturing sector in the
coming two to five years.
The government is promoting
investments in the manufacturing,
sector including in biotechnology,
optics, photonics, nanotechnology,
micro-electromechanical
systems, wireless technology,
green technology (solar),
telecommunication equipment,
optical fibre, voice/pattern/
vision recognition or synthesis
equipment, new generation
networking and digital equipment
and systems, medical devices and
advanced materials.
The Economic Transformation
Programme (ETP) with its
National Key Economic Areas
(NKEAs) and Strategic Reform

Initiatives are being implemented

to chart the way forward.
The ETP, which is supported
by the 11th Malaysia Plan and
the New Economic Model, will
provide clear platforms in the
form of wide-ranging investments
through its entry-point projects
(EPPs) and business opportunities
across the economy, explains
Azman.
The ETP has identified 12
NKEAs that have the potential
to generate high income: oil, gas
and energy; palm oil and related
products; financial services;
wholesale and retail; tourism;
communications content and
infrastructure; education;
electrical and electronics; business
services; health care; agriculture;
and greater Kuala Lumpur.
MIDA will assume an important
role in ensuring that there is a
significant leap in investment
activities in the 12 NKEAs and
non-NKEAs led by a more dynamic
private sectors to achieve the
targets.
The services sector will
spearhead growth with all
subsectors recording expansion.
This is driven by productionrelated activities such as wholesale
trade, transport and storage
and reinforced by an improving
external sector.
The sector is expected to grow
by 5.6% next year accounting for
55.4% share of GDP supported by
expansion across all subsectors.
As Malaysia moves towards
becoming a developed nation,
greater emphasis will be given to
development of the services sector
to serve as the engine to propel
and sustain the economy.
Because of its large size
and sustained high growth in
recent years, the services sector
is expected to play a bigger
role in generating income and
employment as well as in leading
economic growth ahead, says
Azman.
This trend is consistent
with the developments seen in
the services industry in major
developed economies such as the
United States, European Union and
Japan. The governments focus on

SINCE the mid-1990s, Malaysia

has adopted a more focused and
targeted approach in attracting
quality investments in hi-tech,
capital intensive and knowledge
intensive industries; high valueadded industries; research and
development activities as well
as in new growth areas in line
with the governments effort to
become a high-income nation
by 2020.
To further encourage
private investments in the
services sector and enhance
the efficiency of the sector,
the Malaysian government is
undertaking a two-pronged
strategy to develop the sector
to liberalise the services sector
to attract foreign investments,
and to enhance the capacity of
domestic service providers to
increase its competitiveness and
productivity.
One of the measures taken
by the government to further
develop the services sector is to
liberalise it in phases to attract
foreign direct investments
(FDIs).
To date, 45 services subsectors have been liberalised,
including tourism services, ICT,
health care, education, business
services and professional
services.
Based on last years figures,
the manufacturing sector
remains the largest contributor
to FDI, taking up RM14.57bil
followed by services with
RM11.16bil and primary sector,
specifically in mining and
quarrying with RM11.147bil.
Several companies have
benefited from and responded
positively to MIDAs efforts
DreamEDGE and Aemulus
Corporation.
DreamEDGE was established
in 2007 as an engineering
services solution provider.
The company offers digital
engineering services that cut
across industry verticals such as
automotive, heavy industries,

rail, electronics, precision

equipment and tooling design.
Ever since our inception, we
have been sourcing and hiring
almost 99% of our talents locally.
Were a strong believer
that with the proper guidance
and right exposure, our local
talents are more than capable of
delivering their assigned tasks,
says Khairil Adri Adnan, chief
executive officer.
According to Khairil,
Malaysia has had an established
manufacturing ecosystem for
years and it would make sense for
companies and manufacturers to
have their R&D closer to home.
Through the collective effort
of the Malaysian governments
programmes, DreamEDGE has
been extensively engaging in
the human capital development
activities to increase the skills and
build the necessary capabilities of
local engineers to become worldclass engineers through industryspecific technical skills training,
technology and knowledge
transfers as well as international
exposures to attract high-value
engineering works to Malaysia.
Aemulus Corporation, which
celebrates its 10th anniversary
this year, designs, develops and
markets semiconductor testers
worldwide.
The company, based in Penang,
will focus on the markets in China
and the United States next year.
Malaysia has been a very
popular location in South-East
Asia. The cost over talents
development potential is low,
the ecosystem is complete and
encouraging, the environment is
conducive for business and the
government is geared towards
business-oriented policies,
especially MIDA who has been
establishing incentives for local
and foreign industries to focus
more on R&D, which is the core
for future revenues.
Very few countries can match
what they have been doing, says
managing director, Ng Sang Beng.

the services sector will continue

despite the substantial gains
made by this sector in the country
because Malaysia still needs to
take a bigger leap and tap the full
potential of the services sector
to contribute the targeted 67% to
GDP by 2020.

Similarly, in the manufacturing

sector, higher value-added,
hi-tech and knowledgeintensive projects in new growth
areas of the sector, including
biotechnology, advanced
electronics, renewable energy and
medical devices have resulted in
Malaysia successfully developing
its hi-tech industries.
A positive indicator that
Malaysia continues to be a
favourable destination for foreign
investors is reflected in recent
ranking reports.
The county recorded its best
performance in four years,
jumping three notches to 12th
among 60 countries in the recent
World Competitiveness Yearbook
by the Institute for Management
Development.
It is essential to attract quality
investments to strengthen the
services sector, particularly to
meet the growth target of the
country, says Azman.
Moving forward, innovation
and creativity will be the key
in ensuring that Malaysia
continues to develop its hi-tech
manufacturing sector.
To assist foreign and local
investors, MIDA acts as a one-stop
centre to facilitate businesses as
the countrys central investment
promotion agency.

A harbinger of things to
come
With the effort to further
liberalise the services sector, the
government foresees that FDIs in
the services sector will increase
significantly in future.
The presence of FDIs in the
services sector, besides providing
more capital, technology and
knowledge to the domestic
services sector, can also result in
improved productivity, efficiency
and market expansion for export ready services.
After all, a favourable
investment environment in
Malaysia, including the availability
of excellent infrastructure,
telecommunication services,
financial and banking services,
supporting industries as well as
a pool of talent and skilled and
trainable workforce, has made
Malaysia an attractive investment
location to serve the global and
regional markets.

StarSpecial, Saturday 13 December 2014

OUM takes ICT-related

businesses to the next level

N Malaysia, ICT-related
businesses have developed into
a core component of society,
pervading all economic and social
activities.
It is becoming increasingly
apparent that any kind of modern
day business needs highly trained
specialists not only in specific
fields but also in various related
areas of information technology
(IT).
Open University Malaysia
(OUM), through its Faculty of
Information Technology and
Multimedia Communication
(FITMC), offers various of IT-based
programmes.
Learners will acquire
extensive knowledge of IT while
also developing their knowledge
of programming, system design,
computer networks, information
systems, Internet computing
or digital media applications
depending on the programme
chosen by them, says Dr Nantha
Kumar, dean of FITMC.
Dr Nantha also adds that
these programmes will touch
on information technology as a
phenomenon and its underlying
principles and practices.
It will particularly explore
the complexity of relationships
between users, databases and
systems, the theories of design
and also the management of
creativity and innovation, he
explains.

Far-reaching opportunities
In recent years, there have been
growing business opportunities
through IT for enterprising
Malaysians.
In fact, innovative IT-based
small enterprises constitute a key
economic characteristic not only
in Malaysia but also in other Asian
countries.
According to Dr Nantha,
this is why relevant business
and management principles
are covered in most of the
programmes under FITMC.
He says that the courses coach
learners to resolve business
problems and management tasks
using IT and information systems.
These programmes will
help alleviate skills shortage
in Malaysia and overseas, as

INVEST MALAYSIA 3

R&D
in universities

Courses offered by the

Faculty of Information
Technology and Multimedia
Communication
Diploma in IT
Bachelor of IT with Honours
Bachelor of IT and Management
with Honours
Bachelor of IT and Network
Computing with Honours
Bachelor of IT (Internet
Computing) with Honours
Bachelor of Business Information
System with Honours
Bachelor of Digital Media Design
with Honours
Master of IT
Doctor of Philosophy (IT)
In recent years, there has
been an increase in business
opportunities through IT.
it equips professionals with a
solid foundation in information
communication technology, he
adds.

Transferable skills
In addition, learners will
develop advanced knowledge in
information technology through
specialised areas of study such
as Internet computing, business
information systems, digital
media design, computer networks
and mobile computing.
We emphasise both technical
and theoretical competencies
in our programmes so that the
knowledge gained by the learners
are transferable across the
disciplines, says Dr Nantha.
He goes on to say that the
programmes not only provide
extensive information computing
knowledge, which is useful for
individuals seeking career growth
in the IT field, but also equips
them with important transferable
skills such as entrepreneurship,
project management,
communication as well as
thinking skills.
Anyone who wishes to
specialise in the fields will benefit
from these programmes, as it
helps in expanding programming
knowledge rapidly across popular

In recent years,
there have been
growing business
opportunities
through IT for
enterprising
Malaysians. In
fact, innovative
IT-based small
enterprises
constitute a
key economic
characteristic not
only in Malaysia
but also in other
Asian countries.
IT domains.

Flexible programmes
Similar programmes are being
offered by a number of public
institutions of higher learning
as full-time courses that require
students to attend weekday
classes.

In contrast, OUM offers the

programmes on a part-time basis,
enabling learners to keep their
full-time jobs and study on the
side. The faculty is now unveiling
a new programme the Bachelor
in Digital Media Design with
Honours.

Dr Nantha
Kumar, dean
of the Faculty
of Information
Technology
and Multimedia
Communication
at OUM.

The Creative Industry Outlook

(20112014) study carried out by
PwC has proven that the industry
value for creative multimedia
amounts to RM4.2tril.
This revenue is brought in from
four major industries feature
films (RM288bil), animated
content (RM270bil), video games
(RM192bil) and mobile application
(RM88.5bil).
This significant number shows
the critical role played by the
creative industry in contributing to
the countrys economy.
Therefore, OUM aims to
produce graduates who have
mastered the elements of the
field especially using web and
multimedia as well as mobile
technology as its main platforms.
With the universitys blended
mode of learning, students can
study through weekend tutorials,
independent study and online
forums.
The e-learning tools
to support learning
and the accessibility of
the university library
through the Internet
make visits to the
centres unnecessary.
n For more
information,
call 03-2773 2121,
e-mail
enquiries@oum.edu.
my or visit
www.oum.edu.my

2015
JANUARY
INTAKE
NOW OPEN

Powering Learning Innovations

4 INVEST MALAYSIA

StarSpecial, Saturday 13 December 2014

ALAYSIAS five economic

development corridors
have brought growth,
investment and jobs into the
country.
Their concerted efforts are
set to propel Malaysia to greater
heights and realise its vision of
becoming a high-income nation
by the year 2020. The East Coast
Economic Region (ECER) consists
of Kelantan, Terengganu, Pahang
and Mersing in Johor, while the
Northern Corridor Economic
Region (NCER) covers Perlis,
Kedah, Penang and northern
Perak.
The countrys southern
development corridor, Iskandar
Malaysia in Johor, is divided into
five flagship zones and is the
largest project to be undertaken
in the region. In East Malaysia,
there are the Sabah Development
Corridor (SDC) and Sarawak
Corridor of Renewable Energy
(SCORE). These corridors come
together as promising platforms
with great investment and
development potential, putting
Malaysia on the right track to
success.

Corridors for growth

and development
the development of entrepreneurs.
Multiplier and commercial
goat farm in Telaga Papan
(Terengganu) An initiative to
help increase the goat population
and meat production in the region.
l Human capital development

Iskandar Malaysia
Spanning 2,217sq km,
Iskandar Malaysia in Johor is
approximately three times the
size of Singapore. It is the largest
single development project to
be undertaken in the region,
with infrastructure such as
power utilities, transportation
networks and broad-based
telecommunication networks.
Strategically located in the
heart of Asia, Iskandar Malaysia is
in the perfect position to tap into
Asias burgeoning global markets.
This southern development
corridor is developed by Iskandar
Regional Development Authority.
The investment opportunities
in Iskandar Malaysia are focused
in the manufacturing, education
and creative, tourism and health
care sectors. The key economic
drivers are divided into five
flagship zones, which are Johor
Baru, Nusajaya, Senai-Skudai and
the Western and Eastern Gate
Developments.
l Manufacturing
The vibrant petrochemical
industry has attracted more than
RM28bil in investments, driven by
Iskandars prime position in the
centre of the oil and gas trading
route.
More than 120 types of
downstream products are
supplied largely to export
markets.
Petroleum terminals are
located in Pengerang, Tanjung
Langsat and Tanjung Bin, with
a focus on the activities in
Pengerang Integrated Petroleum
Complex (PIPC). The oil and gas
industry is set to make close to
RM20bil and create 12,600 jobs
by 2020.
The electrical and electronics
sector is also promising, with
Iskandar Malaysia set to attract
high value-added activities in
renewable energy and aerospace,
among others.
Food and agriculture is one of
the top five invested sectors here,
with food exports of more than
US$6bil (RM20bil) to more than
200 countries.
The development of Johors
agricultural sector with palm oil,
pineapple canning and expanding
biotechnology fuels the growth of
this sector.

Danga Bay in Johor Baru is a favourite tourist destination.

l Education and creative
The increased demand for
quality education will see more
than 200,000 international
students in the country by 2020.
In line with this, the government
backs Iskandar Malaysia as
the new education hub in the
country. EduCity is a National Key
Economic Area in Nusajaya with
globally recognised universities
comprising top-notch academia
and facilities. The creative sector
has also been identified as an
economic pillar as Malaysia strives
to become Asias New Creative
Destination.
The Pinewood Iskandar
Malaysia Studios is a pioneer
is a integrated creative hub
being established in Iskandar
Malaysia, which is projected to
attract RM1.9bil in international
productions and create more than
11,000 freelance jobs by 2020.
l Tourism
Iskandar Malaysia aims to
attract tourists from all over the
world with a focus on Singapore,
given the proximity. The opening
of the first international theme
park in Malaysia, Legoland,
anchors the blossoming tourism
sector in the region. The country
is poised to become Asias tourism
and leisure destination, given
promising increases in tourist
arrivals in recent years. Other
strategic investments include the
Johor Premium Outlets and Puteri
Harbour Family Theme Park.
l Health care
The Malaysian health care
sector is set to be transformed
from a social service and
consumer wealth-centred
industry to a private sector-driven
engine for economic growth under
the Economic Transformation
Programme. Encouraging health
care tourism rates in recent years
have generated great revenue for
the country.
Iskandar Malaysia taps into
this by offering a cost-competitive
location for investors intending
to set up offshore operations in
the health care sector. Strategic

investments include Columbia

Asia Hospital in Afiat Healthpark,
Regency Specialist Hospital and
Gleneagles Medini Hospital.

The East Coast Economic

Region
The East Coast Economic
Region (ECER) of Malaysia covers
total of 66,000sq km or 51% of the
total area of Peninsular Malaysia.
Its socio-economic
development is spearheaded by
the East Coast Economic Region
Development Council (ECERDC).
The ECER offers rich natural
resources. It is fast becoming
one of Malaysias most dynamic
economic regions with diverse
investment opportunities.
As of June this year, ECER
has seen a total investment of
RM68.85bil and the creation of
71,000 jobs.
Investors can choose from
a wide range of business
opportunities in the five
key economic clusters
manufacturing; oil, gas and
petrochemicals; tourism;
agriculture and human capital
development.
l Tourism

been identified for a number of

major industrial initiatives.
Projects in this cluster include:
Pekan Automotive Park (PAP)
(Pahang) Focuses on high-value
manufacturing that emphasises
premium and alternative
technology vehicles.
Pasir Mas Halal Park
(Kelantan) Produces high-value
downstream halal food products,
including nutraceuticals, herbs,
spices and halal meat-based
products.
l Agriculture
The agriculture cluster is driven
by private sector investments,
which are aimed at nurturing
sustainability in the value chain
for crops, livestock and fisheries.
The aim is to not only increase
productivity and competitiveness
but to also deepen links with other
industry sectors, venture into new
areas, conserve and utilise natural
resources on a sustainable basis.
Projects in this cluster include:
Cattle research and
innovation centre in Muadzam
Shah (Pahang) Focuses on the
production of milk, research and
development of dairy cattle and

To achieve sustainable socioeconomic development, several

human capital development
programmes, each addressing the
specific needs of the region, are
being implemented.
This ensures that the rakyat
remains part of the socioeconomic development of ECER.
Projects in this cluster include:
empower ECER Involves
community empowerment via
academic and skills training
programmes.
entrepreneur ECER Helps
entrepreneurs who want to grow
their business through several
initiative and strategic partners.
l Oil, gas and petrochemical
The oil, gas and petrochemical
cluster centres at the Kertih
Integrated Petrochemical Complex
(KIPC) in Terengganu and the
Gebeng Integrated Petrochemical
Complex (GIPC), are both a
part of the Petronas Integrated
Petrochemical complex.
KPIC focuses on ethylene-based
petrochemicals and biopolymer
products while GIPC concentrates
on polypropylene-based
petrochemicals, oil palm biomass
and palm oil-based feedstock
products.
Projects in this cluster include:
Kertih Biopolymer Park
Focuses on renewable feedstock
and energy sources to support
green technology industries.
Kuantan Integrated Biopark
Promotes the growth of
downstream industries related
to food and health care and
uses renewables as feedstock to
produce green products.
>> TURN TO PAGE 6

The tourism initiative covers

three segments heritage and
culture, urban and coastal
tourism, and environment
andecotourism, which offer vast
opportunities for investors to grow
their businesses in the hospitality
and tourism-related industry.
Projects in this cluster include:
Dungun town coastal tourism
development (Terengganu)
Transforms this quiet fishing town
into a mining heritage town.
Cherating coastal tourism
development (Pahang) Develops
resorts and world-class tourist
facilities within this popular
coastal retreat.
l Manufacturing
The rich resources in ECER
enables the region to be a
competitive manufacturing player
with abundant opportunities for
investors.
Several locations in ECER have

There are plans to transform Dungun in Terengganu from a quiet fishing town into a
mining heritage town.

StarSpecial, Saturday 13 December 2014

HE nation is focusing on
capitalising innovation
as a prime driver of
economic growth and Universiti
Putra Malaysia (UPM) plays
a significant role in this. The
university is driven by policies
and agenda with the goal to
transform the research and ideas
of its researchers into viable
commercial ventures.
Propelled by an ecosystem
that is strategically placed by
the university, the number of
commercialised technologies has
grown significantly. From the nine
technologies that were licensed to
industries in 2005, 78 have been
licensed this year with a total
gross sale of RM39.5mil.
Turning innovative ideas into
successful commercial ventures
is a challenging process that
requires a team approach by
inventors, universities, investors
and business partners.
UPM approaches
innovation development and
commercialisation in unique
and innovative ways by
creating an ecosystem where
commercialisation collaboration
is guided by a focus on research,
development, commercialisation
and entrepreneurship.
The university provides a
number of services for researchers
to protect their innovation
discoveries, including patenting
and promotion services. These
are carried out to increase the
market value of the technologies
and the quality and quantity of
innovations entering the market.
To date, UPM has filed more
than 1,600 intellectual property
(IP) protections and files more
than 100 IP protections every year.

INVEST MALAYSIA 5

R&D
Driving economic
growth through innovation
in universities

Newcastle Disease Vaccine (NDV) is one of UPMs highest grossingcommercialised

innovation.
The university was bestowed
the best organisation for
management of intellectual
property award at the Anugerah
Harta Intelek Negara 2014
(National Intellectual Property
Award 2014) for the third
time since 2008. In the 2013
Malaysian Research Assessment,
UPM also came out on top for
commercialisation.
In nurturing potential
innovations, the university
also provides small amounts
of funding of not more than
RM500,000 for technology
upscaling. Known as Initiative 7,
it is specially designed for precommercialisation research and

prototype development at all

stages from post-discovery to precommercialisation.
By establishing InnoHub, an
incubation programme meant
to increase the chances of
successful commercialisation
of innovations, the university
encourages researchers to venture
into commercialising their own
innovations. Innohub focuses on
taking these innovations through
the valley-of-death phase where
most technologies fail to enter the
market.
As the countrys one and only
institution of higher learning
dedicated to agriculture, the
university has successfully

commercialised many agriculturebased innovation technologies

that have significantly impacted
the socio-economic growth of the
country.
For instance, the Newcastle
Disease Vaccine was invented
to fight a virus that attacks the
digestive, nervous and respiratory
systems of poultry. It contributed
to the creation of the first vaccineproducing company in Malaysia.
Another product produced by
the researchers at the universitys
is Bacto 10, which is a liquid
biofertiliser with non-pathogenic
micro-organisms that have been
removed from oil palm and
herbal roots. Bacto 10 is capable
of increasing the growth of plants
in an environmentally friendly
manner. It also maintains a viable
shelf life of more than 15 months
in bottles.
The Ministry of Agriculture
awarded UPM and Diversatech, a
manufacturer and wholesaler of
fertilisers, a three-year US$2.5mil
(RM8.7mil) contract. Diversatech
is required to supply a subsidised
paddy seed treatment, known
as Zappa, to farmers to increases
their farm yield.
To date, Zappa and Vita-Grow
- a foliar fertiliser by Diversatech
have generated more than

RM26.3mil in gross sales.

Recently, the Robo-rest
System, a system that is capable
of increasing the production
capacity of palm oil during oil
processing, was commercialised to
an international partner, Dolphin
Engineering. The system is the
result of a successful research
conducted by UPM researchers.
The collaboration between UPM
and international companies
such as Dolphin Engineering has
assisted UPM in achieving its
vision to become a university of
international repute.
These are just some of the
many examples of products
that researchers at UPM have
produced. These innovations will
help establish the universitys
position as one of the leading
intuitions of higher learning
with prolific commercialisation
ventures.
To market its innovations,
the university holds regular
Innovation Open Days where
major players from various
industries are invited to view
the multitude of IPs available.
During these events, prospective
investors and businesses have the
opportunity to have a one-to-one
engagement with researchers and
their products.

6 INVEST MALAYSIA

StarSpecial, Saturday 13 December 2014

>> FROM PAGE 4

Sarawak Corridor of
Renewable Energy
The Sarawak Corridor of
Renewable Energy (SCORE)
is run and managed by The
Regional Corridor Development of
Authority (RECODA). SCORE is the
second largest corridor in terms
of land area and covers more than
70,000sq km encompassing five
areas Samalaju, Tanjung Manis,
Mukah, Baram and Tunoh.
SCORE has a coastline of about
1,000km, 8mil ha of forests and
5mil ha of land that is suitable for
agriculture.
SCORE also has 1.2billion
tonnes of known oil reserves,
more than 80 million tonnes of
Silica sand and more than 22
million tonnes of Kaolin of China
clay. It also boasts an abundance
of natural resources. The focus
on energy will help the corridor
provide energy at a competitive
rate. SCORE is expected to be
the regions leading producer of
inexpensive energy by 2030.
In total, SCORE is expected
to create 1.6 million job
opportunities by 2030.
l Samalaju
Launched in 2008, Samalaju is
a green field site that is located in
the north western part of SCORE.
It has the necessary
development infrastructure such
as logistics, health, education,
water and housing, which
will require an investment of
approximately RM239mil.
Investors have committed a
total amount of RM28mil to the
Samalaju Industrial Park.
Tokuyamas polycrystalline
silicon plant was opened at
the Samalaju Industrial Park in
September and has now created
1,000 full-time jobs. The Samalaju
Water Treatment Plant will
produce high-quality recycled
water and is expected to serve the
various industries in the Samalaju
Industrial Park where it is located.
l Tanjung Manis
Located at the Rajang river
delta, Tanjung Manis is poised
to become the hub for SCOREs
agriculture and aquaculture
activities. Accredited as a halal
hub by HALMAS in 2010, industry
players and halal park operators
here will now be able to qualify
for the incentives provided by the
Halal Development Corporation.
l Mukah
Mukahs central location
within SCORE makes it the perfect
location to house RECODAs
administrative base. In the long

Burgeoning local opportunities

economic sectors, a thriving
business culture and several
large multinational corporations
with their global networks and
markets.
NCER also aims to further
augment its manufacturing
sector by setting up concrete
implementation structures to
deliver initiatives under the
federal governments Economic
Transformation Plan.
Moving forward towards the
implementation of Phase 2 of
NCERs development, the NCIA is
continuously fine-tuning aspects
of the regions economy to retain
a competitive advantage in the
manufacturing sector.
l Tourism
Located at the Rajang river delta, Tanjung Manis is poised to become SCOREs agriculture and aquaculture hub.
term, Mukah will become a smart
city that focuses on resourcebased research and development
and also industrial research to
help sustain SCOREs growth.
To cater to the research and
development requirement of
the private sector, the Mukah
Biotech Economic Zone will be
established. In tandem with
Mukahs rapid growth, work is
already underway to upgrade the
Mukah airport.
The upgrade of the airport is
expected to increase employment,
tourism and economic growth in
Mukah. The airport is scheduled
for completion in 2018 at a cost of
RM600mil.

Sabah Development
Corridor
In 2008, the-then Prime
Minister Datuk Seri Abdullah
Ahmad Badawi introduced a
new high-income service-based
economic model to enhance the
quality of life of the people in
Sabah.
Today, investments under
the Sabah Development
Corridor (SDC), carried out by its
implementation authority, the
Sabah Economic Development
and Investment Authority
(SEDIA), continue to be realised
and investment momentum is
expected to get more vibrant.
As of August this year,
RM1.45bil or 82.8% of the total
federal government funding
allocated for SDC projects has
been disbursed. Meanwhile,
RM135bil worth of cumulative
investments have been planned
and committed since its launch
in 2008 of which RM45bil have

Sabah will also boast the largest livestock cattle farm in Malaysia when the
Integrated Livestock Valley is complete.

been realised.
SEDIA has been accelerating
the states development and
ensuring that social development
and sustainability remain key
priorities. SEDIA promotes
projects focusing on tourism, oil
and gas, palm oil, agriculture,
education, manufacturing and
logistics.
Some of the flagship projects
under SDC include the Kinabalu
Gold Coast Enclave (KGCE), Palm
Oil Industrial Clusters (POICs),
Integrated Livestock Valley
(ILV) and Sabah Agro-Industrial
Precinct (SAIP).
KGCE stretches about 100km
from the state capital of Kota
Kinabalu to the northwestern
tip of Kudat covering 78.5sq
km of prime coastal tourism
development that will include
beaches and coastal assets to
attract eco-adventure tourists,
second-home buyers and luxury
holiday visitors.
As one of the largest palm oil
producing nations in the world, it
is no surprise that the industry is
part of the SDC initiatives.
Lahad Datu and Sandakan
are the focus for the POICs. The
two locations are set to feature
biodiesel plants, liquid cargo jetty,
port for import-export activities
and waste treatment systems.
Sabah will also boast the largest
livestock cattle farm in Malaysia
with the eventual completion of
the ILV that is expected to produce
six million litres of milk annually
from 2,000 cattle. The first phase
of this project has been completed.
The SDC will also aid Sabah
to emerge as a centre for agrobiotechnology through SAIP.
The SAIP will produce speciality
products from pharmaceutical
and food ingredients to cosmetics
and industrial enzymes.
The area will also feature
a dedicated Halal Park.
Other government-industry
collaborations and projects
under SDC include the Sandakan
Education Hub, Sapangar Bay
Manufacturing and Logistics
Cluster, Sipitang Oil and Gas
Industrial Park, Marine Integrated
Cluster, and Greater Kota Kinabalu.
The vision for Sabah is to be a
vibrant, economically successful
and liveable state and hints of
these are already apparent.
The states tourism sector
reflects the positive development
recording a 2.8% increase in the
number of visitors as of July this
year to 1.89 million visitors.

By 2025, the SDC initiative

will triple Sabahs gross domestic
product (GDP) per capita and
increase its GDP by four times and
create more than 900,000 new
jobs.

Northern Corridor
Economic Region
The northernmost of
Malaysias five economic
regions, the Northern Corridor
Economic Region is overseen
by the Northern Corridor
Implementation Authority (NCIA),
which was established in 2008.
Currently, NCER leverages on the
existing economic achievements
of the region in electronics,
tourism and agriculture.
l Agriculture
The NCIA aims to revitalise
the regions agriculture sector
to the point where it is able to
meet both domestic and export
demands. This will not only raise
the sectors output but also elevate
the living standards of the regions
farming communities. To aid in
this transformation, an integrated
support system has been put into
place, augmented by the NCIA
biotechnology centre.
The NCIAs agriculture
objectives for the NCER are:
Leading the transformation
of Malaysias agriculture sector
by adopting commercial-scale
farming and the latest farming
technologies
Increasing the export of
premium agricultural products
Contributing to Malaysias
self-sufficiency objectives in staple
foods
Cultivating new commercial
crops and promoting downstream
activities in agriculture
l Manufacturing
Manufacturing makes up a
large part of Malaysias gross
domestic product.
In the five years of NCERs
Phase 1 of development, the NCIAs
main priority has been to set up
the necessary support structures
to further strengthen the regions
manufacturing capabilities.
In these past 40 years,
technology and engineering-based
activities in NCER have evolved
so that the region now possesses
a large and educated workforce,
a vast and sophisticated logistics
network to support the key

NCER plays a big role in

Malaysias success as a leading
tourist destination, as it has a rich
heritage of natural attractions,
culture and cuisine, as well as
health care and wellness services.
The regions biodiversity is a big
tourist draw. The regions tourism
offerings have been scaled up and
there are many opportunities to
enhance revenue and create more
economic activities in this sector.
l Logistics
NCERs strategic location within
the Indonesia-Malaysia-Thailand
Growth Triangle gives it the
opportunity to become a major
processing centre and entrepot
port.
The region already has a wellestablished logistics ecosystem
and linkages, and for the past 40
years has been a key enabler of
the manufacturing sector as well
as the tourism and agriculture
industries.
The key infrastructure that
supports NCERs connectivity
is made up of an international
airport, an international port, the
North South Expressway and an
extensive road network.
NCER has seen infrastructure
enhancements in the form of
the second Penang bridge and
expansion of the Bayan Lepas
Airport Passenger Terminal, and
will see further development
through the Ipoh-Padang Besar
Electrified Double-Tracking
project.
l Education
The Education and Human
Capital Development Plan for
NCER is in line with the federal
governments 10th Malaysia
Plan in terms of placing an
emphasis on the development of
soft infrastructure such as skills
development.
The NCIAs objectives in the
education sector are to:
Support the key industries
in the region by enhancing and
broadening the skills base of the
regions human capital.
Enhance the skills set and
employability of human capital in
the region to meet the needs of
the private sector in agriculture,
manufacturing, tourism and
logistics.
Increase the number of
research and developmentbased activities among hi-tech
companies.
Enable rural communities
to participate in the regions
development agenda.

StarSpecial, Saturday 13 December 2014

Platform to support start-ups

HE University of Malaya is
committed to building an
entrepreneurial ecosystem
that will accelerate the increasing
impact of its research and
development in its application
in society, provide solutions
to industries as well as open
investment opportunities in
cutting-edge technologies.
The consolidated strategy
of outcome-based research
clusters, high-impact research
and the University of Malaya
Grand challenges has created an
increased focus on an interactive
and integrative platform, with
industries and society playing key
roles in influencing applied and
fundamental research directions.
UM has also taken the lead
in proactively generating and
protecting its intellectual
property with a renewed
emphasis on rapid licensing to
industries and providing strategic
openings for investments in the
latest technological advancements
through the creation of
technology and intellectual
capacity-driven university
startups.
Since it achieved research
university status, UM has given
seed to a growing number of new
startups by academic founders in
technology areas that range from
machine fabrication (Zecttron
Sdn Bhd), engineering, power
and optical solutions (Global
Insignia Sdn Bhd, Integrated
Transportation Solutions Sdn Bhd,
MUOS Optical Solutions Sdn Bhd),

The CNC Lathe Machine

is the innovation of
Dr Noor Azizi Mardi,
senior lecturer at
the Department
of Mechanical
Engineering,
Universiti Malaya.

biotechnology
and green
technology
(Semio Technology
Sdn Bhd, Nanobio
Sdn Bhd, My-Ezfuel
Sdn Bhd) and biomedical
and pharmaceutical
technologies (BioApps Sdn Bhd,
UMMH Medical Home Sdn Bhd,
CBMTI Sdn Bhd, Oleopharma Sdn
Bhd).
Zecttron Sdn Bhd was founded
by Prof Dr Hamdi Abd Shukor.
It successfully developed and
commercialised its Automatic
Thermocyclic Dipping Machine
(ATDM) and CNC Lathe UML-V1
through a series of progressive
funding, including the value chain
from science fund, Technofund
and MTDC grant under
(commercialisation or research
and development fund) CRDF1
and it is now looking to expand its
markets regionally.
The Centre for Biomedical and
Technology Integration(CBMTI)
is a biomedical company founded
by two surgeons Prof Dr
Vickneswaran Mathaneswaran
and Prof Datuk Dr Zainal Ariff

Abdul Rahman to focus on

speciality 3D biomodelling and
product design to develop m oulds
for customised titanium implants
for cranial and maxillofacial
reconstruction, spine biomodels,
frame biomodels,biomodels
with slotters and maxillofacial
biomodels.
Their most recent innovation
is MEDCOM OR, a medical
communication system for
operating rooms designed and
conceived by the surgeon founders
of the company.
The mission of BioApps Sdn Bhd
is to be a global leader in the field
of prosthetics and orthotics and
has licenses in both international
and local patents.
Led by founder Prof Ir Dr Noor
Azuan Osman, it aims to be a key

centre for biomedical engineering

industry development in an effort
to assist and improve the life of its
clients.
The most recent additions
to the stable are two new spinoff companies both helmed by
women academic founders.
Cytus Sdn Bhd by Dr Ivy Chung
and Granatech Sdn Bhd by Prof Dr
Norzulaani Khalid and Mahanom
Jalil.
Cytus Sdn Bhd is a Cell Biobankbased company that aims to
develop a repository of human
cells produced from a range of
healthy and diseased tissue and
representing, in cellular terms,
the ethnic genetic diversity of the
Malaysia population.
Granatech Sdn Bhd focuses on
Research Contract and Knowledge
Transfer services in the area of
Plant Tissue Culture with the
production of customised on
demand starter cultures and
growth media.
Other upcoming start ups to
watch out for include one that
provides specialty and innovative
silica-based optical fibre solutions
to its customers, running the only
optical fibre drawing tower facility
in the region.
The optical fibres fabricated
include conventional optical fibres,
PCFs, FFs and a number of customdesigned fibres.
Another will commercialise its
nanocatalyst capabilities and its
first roll-out is a Nano Magnetite
Slurry that has seen applications
in the glove industry.

INVEST MALAYSIA 7

R&D
in universities

Meet all these start-ups

personally and more at USTART
Malaysia 2015 from January
20-21 next year at the Pullman
Kuala Lumpur Bangsar.
The event aims to
drive innovation and
commercialisation of research
results through the establishment
of start-ups companies and
carries the theme creating
economic and social impact
through university startups.
The inaugural University Start
Up Conference Malaysia 2015
or USTART2015 organised by
University of Malaya through
UMCIC (UM Centre of Innovation
and Commercialization) will
showcase technology start
ups, provide interactive panel
discussions from experts in
university tech transfer, create
networking and investor
matching opportunities
and allow for exchange of
best practices for research
commercialisation.
Eminent speakers include
Datuk Prof Asma Ismail, director
of higher education and a
university start up pioneer
herself, Dr Lily Chan CEO NUS
Enterprise, Tom Hockaday MD of
ISIS Enterprise Oxford University,
startup founders from Malaysian
and International Universities
and supporting agencies ,
including MTDC, MBC, MDV,
Platcom Ventures and MVCA.
n For more information, visit
umcic.um.edu.my

8 StarSpecial

THE STAR Saturday 13 December 2014