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Transcript of Promoting Business Incubation : Malaysia Experience presented by: Borhan Sidik Deputy CEO, SME...
Promoting Business Incubation : Malaysia Experience
presented by:
Borhan SidikDeputy CEO, SME Corporation Malaysia
7th INTERNATIONAL CEO FORUM FOR CHIEF EXECUTIVES OF DEVELOPMENT FINANCE INSTITUTION
(18th November 2010)
Outline of PresentationOutline of Presentation
1. Malaysia in Brief2. Roles & Functions of SME Corp. Malaysia3. Profile of SMEs4. Strategies & Policies on SME Development5. General Information on Business Incubator6. Business Incubator in Malaysia
• SIRIM Berhad• MTDC Technology Centres• Technology Park Malaysia (TPM)• SME Bank Factory Complex
7. Success Story of Incubator8. Closing Remark
Malaysia : Basic StatisticMalaysia : Basic Statistic
GENERAL INFORMATION 2009 2010
• Population• Labour force• Employment• Unemployment rate• Nominal GDP• Nominal GNI• Real GDP growth rate• Per capita income• Inflation• Exchange rate (RM/USD)
27.9 million12.1 million11.6 million
3.7 %RM 680 billionRM 665 billion
-1.7 %RM 23,841
0.6 %3.52
28.3 million12.2 million11.8 million
3.6 %RM 766.3 billionRM 746.4 billion
6.0 %RM 26,420
2.3 %3.09 (1st November 2010)
4
Development of competitive and resilient SMEs in all sectors
Vision MissionThe premier organisation for the
development of progressive SMEs to enhance wealth creation
and social well-being of the nation
Promote the development of competitive, innovative and
resilient SMEs through effective coordination and provision of
business support
ROLES & FUNCTIONS OF SME CORP. MALAYSIA
Role & Function of SME Corp. Role & Function of SME Corp. MalaysiaMalaysia
435,324 (78.7%)
100,333 (18.2%)
12,610 (2.3%)
4,537 (0.8%)
Source: 2005 Census by Department of Statistics Malaysia
• Total establishments = 552,804• No. of SMEs = 548,267 (99.2%)
• Total establishments = 552,804• No. of SMEs = 548,267 (99.2%)
MICROSMALLMEDIUMLARGE
Establishment of Enterprises
Services(86.6 %)
Agriculture(6.2 %)
Manufacturing(7.2 %)
SME Distribution by Sector
Profile of SMEsProfile of SMEs
5
6
Strategies & Policies on SME DevelopmentStrategies & Policies on SME Development
5 strategic thrusts for development of SMEs under IMP3 (2006-2020):
MEASURES1. Adoption and application of leading
technologies, including effective utilization of ICT;
2. Closer collaboration with specialized Government research institutes and universities;
3. Enhancement of human capital of SMEs;
4. Nurturing innovative and resilient SMEs;
5. Acculturation of entrepreneurship & innovation;
6. Creation of more conducive business environment, which stimulates vibrant and innovative entrepreneurial activities
What is Incubator?What is Incubator?
BUSINESS INCUBATION :“ Business incubation is an organization that helps entrepreneurs to develop their ideas in a framework that has been established to help them. It takes them systematically from inception through to launch and beyond. Incubators nurture young firms, helping them to survive and grow during the start-up period when they are most vulnerable.”
TECHNOLOGY INCUBATION:“ A technology-incubating program is an innovative system designed to assist entrepreneurs in the development of new technology-based firms, both start-ups and fledglings. It seeks to effectively link talent, technology, capital and know-how to leverage entrepreneurial talent in order to accelerate development of new companies, and thus speed the commercialization of technology”
Source: Ministry of Science, Technology and Innovation, Malaysia
Incubator Background Incubator Background
COUNTRY NOS. OF INCUBATORSUSA/Canada 1300+
China 600+South Korea 270+
Japan 200+
India 110+
Taiwan 97+
Malaysia 106 +Uzbekistan 20+
Europe 900+
Source: National Incubation Network Association (NINA)
Incubator in MalaysiaIncubator in Malaysia
Source: National Incubation Network Association (NINA)
INCUBATORS NO’S
NINA Members (Tech-based Incubators)
MARA (Indigenious/ Bumiputera)
Banks
State Economy Development Corp.
MARDI (Agro-based)
Handicraft Incubators
Universities
MECD
Others
25 +
18 +
18 +
17 +
10 +
9 +
4 +
2 +
3 +
TOTAL 106+
EXAMPLE 1: EXAMPLE 1: SIRIM TECHNOLOGY INCUBATIONSIRIM TECHNOLOGY INCUBATION
Established in 1975 under Ministry of Science, Technology & Innovation
16th November 1995: Corporatized as a government-owned company under the Ministry of Finance Inc.
SIRIM BerhadSIRIM Berhad
Research & Technology• R&D• Product Development• Process Engineering • Training & Consultancy
Standards & Quality• Measurement & Calibration • Legal Metrology Services • Standards Management • Standards Development
Broad range of services:
Design & Engineering• Product Development • Engineering Services • Plant Engineering• Machinery & Equipment
Technology Transfer Hub
• Intellectual Property Centre• Commercialization and
Business Incubation Centre
SIRIM Incubator ModelSIRIM Incubator Model
Phase I:
Entrepreneur Development Phase
Phase II:
Enterprise Creation Phase
Phase III:
Market Development Phase
SIRIM Technolog
y Incubator Program
SIRIM Technolog
y Incubator Program
• Skills Development
• Networking & Linkages
• Facilities & Services
• Technology Transfer & Consultancy Services
• Advisory Services
• After-Care Service
EXAMPLE 2: EXAMPLE 2: MTDC TECHNOLOGY CENTERMTDC TECHNOLOGY CENTER
Malaysian Technology Development Corporation
• Initiative by Malaysian Technology Development Corporation (MTDC)
• Embodied under Government’s Technology Development Cluster (TDC) program
• Formal and operational links (collaborations) with universities or research institutions.
MTDC Technology CentreMTDC Technology Centre
• Main functionStrengthen linkages between universities/research institutions and
industries.Activate and promote the acceleration of the commercialisation
activities of both the local universities and research institutions.
• Approached method:Develop technology incubation centres via JV collaboration with
Universities
MTDC Technology Incubation MTDC Technology Incubation CentresCentres
UPM (Universiti Putra Malaysia)-MTDC Technology Centre
Centres are developed based on strength of respective universities through JV collaboration:
UKM (Universiti Kebangsaan Malaysia)-MTDC Technology Centre
UTM (Universiti Teknologi Malaysia)-MTDC Technology Centre
• ICT, multimedia, agri-bio• Located at UPM - central of Malaysia
• Biotechnology• Located at UKM - central of Malaysia
• Advanced engineering, life sciences• Located at UTM - southern Malaysia
UPM-MTDC Technology Centre project• Established 1996• JV project between Universiti Putra Malaysia(UPM) - MTDC• The first MTDC technology incubation centres established within Malaysian
universities' campus• Second area awarded with Cybercity status after Cyberjaya
FACILITIES• Covering total acreage of 167 acres• Equipped with high speed bandwidth communication network• Other facilities:
Server Farm (15 acres) International Technology Centre (50 acres) MTDC Technology Centre (15 acres) Data Centre Computer Recovery Centre
UKM-MTDC Technology Centre project
• JV project between Universiti Kebangsaan Malaysia (UKM) - MTDC.
• Planned to attract companies mainly involved in biotechnology.
FACILITIES• Covering total acreage of 6 acres• Able to accommodate 12-15 tenants• Conceptualized as ‘Pusat Teknologi Pintar’ :-
Formal and operational links with university or research institutesTo encourage growth of technology-based businesses that reside on siteManagement functions which actively engaged in transfer of technology
and business skills to industries
UTM-MTDC Technology Centre project• Established in 2001• JV project between Universiti Teknologi Malaysia (UTM) – MTDC
OBJECTIVE• Mainly for companies involved in life sciences. • Develop strong science and technology-based• Increase capability to adopt, adapt and improve
technologies through R&D• Develop pool of skilled researchers capable of
handling new and emerging applied technologies.
FACILITIES• Covering total acreage of 4.3 acre• Located within university (UTM) vicinity
EXAMPLE 3: EXAMPLE 3: TECHNOLOGY PARK MALAYSIATECHNOLOGY PARK MALAYSIA
(TECHNOLOGY & INNOVATION BUSINESS INCUBATION (TECHNOLOGY & INNOVATION BUSINESS INCUBATION PROGRAM)PROGRAM)
Technology Park Malaysia (TPM)Technology Park Malaysia (TPM)TECHNOLOGY & INNOVATION BUSINESS INCUBATION PROGRAMTECHNOLOGY & INNOVATION BUSINESS INCUBATION PROGRAM
• Main function: To spur development of innovative and knowledge-based companies
• Incubation program: Caters specifically to fledgling technology and innovation-based enterprises. Prospects vary from graduates, researchers, start-up SMEs,
professional employees & subsidiary of MNC’s & GLC’s.
SELECTION ASSESSMENT TOOLSINFRASTRUCTURE & SHARED SERVICES
EXIT POLICY PROSPECTS1.Graduates/ researchers2.Start-up SME3.Professionals/ workers4.Subsidiary of big companies5.Soft-landing
HANDHOLDINGBusiness coaching,
consultancy and trainingMARKET LINKAGES
TECHNOLOGY HELP DESK
RESEARCHERS & EXPERTS
INTEGRATED FINANCIAL
ASSISTANCE
• Incubation model:
21
Network - Market linkages through incubation associations membership:
• National Incubation Network Association (NINA)
• Asian Association of Business Incubation (AABI)
• Asia Pacific Incubation Network (APIN)
• Association of University Research Parks (AURP)
Facilities - Support from TPM and subsidiaries:
• TPM Engineering• TPM IT• TPM Biotech
Financial Assistance –
Access to funds by Government/commercial banks, venture capital and angels.
Handholding – Integrated coaching, consultancy and training by panel of coaches, consultants & trainers.
Technology Experts - Advisory from researchers and expert panel
Spectrum of Services
Cubicles Land/ building leaseOffice units
EXAMPLE 4: EXAMPLE 4: SME BANK FACTORY COMPLEXSME BANK FACTORY COMPLEX
• Started in 1985
• Full support from Government Fund to build factories in each state in Malaysia.
• Initiated to encourage entrepreneurship in manufacturing and service sector
• Facilties: 24 factories with 419 lots nationwide
SME BANK FACTORY SME BANK FACTORY COMPLEXCOMPLEX
KUALA LUMPUR
• Participant selection by a Panel• Project and concept development with
advisory and approval from SME Bank
• Project is fulltime owned and run by
participant
• Integrated financial assistance
• Incubation period 9 years
SME BANK INCUBATION MODELSME BANK INCUBATION MODEL
Integrated entrepreneurship development approach:
SUCCESS INCUBATEES STORYSUCCESS INCUBATEES STORY
REDtone International Berhad Incubatee of TPM Listed on MESDAQ (now known as ACE Market) in 2004. MSC status company Products:
High speed Internet services Data solutions VoIP services
Operating in Malaysia and China
Green Packet Berhad Incubatee of TPM Listed on ACE Market in 2005 Transfered to Main Board in 2007 Products:
Personal Handy-Phone System 3G, WiFi and WiMAX space
Operating in USA, Malaysia, Singapore, Taiwan, China, Bahrain and Thailand.
SUCCESS INCUBATEES STORY SUCCESS INCUBATEES STORY (Cont’d)(Cont’d)
IRIS Corporation Berhad
Incubatee of TPM Establsihed in 1994 Listed on ACE Market in 2002 Products:
• Digital conference system• Radio frequency identity system (RFID)• Automated electronic ticketing and fare collection• Payment cards• Loyalty management program solution
Tricubes Berhad
Incubatee of TPM Established in 1998 ICT company focusing in
identity authentication and mobility solution
Listed on Ace Market in 2004 Products:
• Smartcard• Biometrics verification devices
CLOSING REMARKCLOSING REMARK
RECOMMENDATION FOR SUCCESS OF RECOMMENDATION FOR SUCCESS OF INCUBATORINCUBATOR
1. University involvement:Success of incubator depends on availability of graduates, access to R&D facilities, and environment of intellectual creativity
2. Collaboration & networking: Networking between industries, universities, research institutions and incubators provide mutual support & encouragement
3. Experienced incubator management:To render continuous support, coaching, mentoring and motivation to start-up companies
4. Conducive business environment:Incubators to function not as landlord but to create conducive business environment to incubatees
5. Linking business & technology:Constitute important channels for distribution of knowledge and tools for business success
SME Corporation MalaysiaLevel 20, West Wing, Menara
MATRADE Jalan Khidmat Usaha, Off Jalan Duta
50480 Kuala Lumpur
03 6207 6000 03 6201 6564
www.smecorp.gov.my
SME Corporation MalaysiaLevel 20, West Wing, Menara
MATRADE Jalan Khidmat Usaha, Off Jalan Duta
50480 Kuala Lumpur
03 6207 6000 03 6201 6564
www.smecorp.gov.my
RIM
T
EK
SA
AHI