Promoting Business Incubation : Malaysia Experience

Presentation Transcript

presented by:

Borhan Sidik

Deputy CEO, SME Corporation Malaysia

7th INTERNATIONAL CEO FORUM FOR CHIEF EXECUTIVES OF DEVELOPMENT FINANCE INSTITUTION

(18th November 2010)

Outline of Presentation

Malaysia in Brief
Roles & Functions of SME Corp. Malaysia
Profile of SMEs
Strategies & Policies on SME Development
General Information on Business Incubator
Business Incubator in Malaysia

SIRIM Berhad
MTDC Technology Centres
Technology Park Malaysia (TPM)
SME Bank Factory Complex

Success Story of Incubator
Closing Remark

Malaysia : Basic Statistic

Role & Function of SME Corp. Malaysia

Development of competitive and resilient SMEs in all sectors

VisionMission

The 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

Profile of SMEs

Total establishments = 552,804
No. of SMEs = 548,267 (99.2%)

SME Distribution by Sector

Establishment of Enterprises

4,537 (0.8%)

LARGE

Manufacturing(7.2 %)

Agriculture(6.2 %)

12,610 (2.3%)

MEDIUM

100,333 (18.2%)

Services(86.6 %)

SMALL

MICRO

435,324 (78.7%)

Source: 2005 Census by Department of Statistics Malaysia

Strategies & Policies on SME Development

5 strategic thrusts for development of SMEs under IMP3 (2006-2020):

MEASURES
Adoption and application of leading technologies, including effective utilization of ICT;
Closer collaboration with specialized Government research institutes and universities;
Enhancement of human capital of SMEs;
Nurturing innovative and resilient SMEs;
Acculturation of entrepreneurship & innovation;
Creation of more conducive business environment, which stimulates vibrant and innovative entrepreneurial activities

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

What is Incubator?

Incubator Background

Source: National Incubation Network Association (NINA)

Incubator in Malaysia

Source: National Incubation Network Association (NINA)

EXAMPLE 1: SIRIM TECHNOLOGY INCUBATION

SIRIM Berhad

Established in 1975under Ministry of Science, Technology & Innovation

16th November 1995: Corporatized as a government-owned company under the Ministry of Finance Inc.

Broad range of services:

Research & Technology
R&D
Product Development
Process Engineering
Training & Consultancy

Design & Engineering
Product Development
Engineering Services
Plant Engineering
Machinery & Equipment

Technology Transfer Hub
Intellectual Property Centre
Commercialization and Business Incubation Centre

Standards & Quality
Measurement & Calibration
Legal Metrology Services
Standards Management
Standards Development

SIRIM Incubator Model

Phase I:
Entrepreneur Development Phase

Phase II:
Enterprise Creation Phase

Phase III:
Market Development Phase

SIRIM Technology Incubator Program

Skills Development

Networking & Linkages

Facilities & Services

After-Care Service

Technology Transfer & Consultancy Services

Advisory Services

EXAMPLE 2: MTDC TECHNOLOGY CENTER

Malaysian Technology Development Corporation

MTDC Technology Centre

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.

Main function

Strengthen 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 Centres

Centres are developed based on strength of respective universities through JV collaboration:

UPM (Universiti Putra Malaysia)-MTDC Technology Centre

ICT, multimedia, agri-bio
Located at UPM - central of Malaysia

UKM (Universiti Kebangsaan Malaysia)-MTDC Technology Centre

Biotechnology
Located at UKM - central of Malaysia

UTM (UniversitiTeknologi Malaysia)-MTDC Technology Centre

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 UniversitiKebangsaanMalaysia (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 ‘PusatTeknologiPintar’ :-

Formal and operational links with university or research institutes
To encourage growth of technology-based businesses that reside on site
Management functions which actively engaged in transfer of technology and business skills to industries

UTM-MTDC Technology Centre project

Established in 2001
JV project between UniversitiTeknologi 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: TECHNOLOGY PARK MALAYSIA

(TECHNOLOGY & INNOVATION BUSINESS INCUBATION PROGRAM)

Technology Park Malaysia (TPM)

TECHNOLOGY & 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.