ASSIST US TO HELP YOU Plenary 6: Roads to Commercialisation

BioBorneo 2015

Conference and Exhibition

Dr. Mohd Nor Azman Hassan

Deputy Undersecretary (Industry Division)

Ministry of Science, Technology & Innovation

21 April 2015

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OUTLINE

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•Macro and Sectoral Policies on Engaging with the

Industry

•R&D and Commercialization Shift

•Commercialization Framework and Vehicles

•Expansion of Coverage

•Opportunities for the Industry Players

Government

Transformation

Plan (GTP)

Effective Delivery of

Government Services

10th & 11th Malaysia Plan Macroeconomic growth targets & expenditure allocation

Implementation of Government’s Development Programmes

Economic

Transformation

Programme (ETP)

New Economic Model A High Income, Inclusive

and Sustainable Nation

1Malaysia – People First, Performance Now

Preservation and Enhancement of Unity in Diversity

Source: PEMANDU, NEAC, EPU

MACRO POLICY

NPSTI has been formulated within the context of various

national transformation programmes

National Social

Tranformation

Programme

(NSTP)

Political

Tranformation

Programme

(PTP)

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FRAMEWORK FOR THE NATIONAL POLICY ON SCIENCE,

TECHNOLOGY AND INNOVATION (NPSTI)

ST 1

Advancing

scientific and

social

research,

development

and

commercialisa

tion

ST 2

Developing,

harnessing

and

intensifying

talent

ST 3

Energising

industries

ST 4

Transforming

STI

governance

ST 5

Promoting

and

sensitising

STI Strategic Thrusts

STI for Policy

Policy for STI

Industry Commitment to STI

STI Governance

STI for Stable, Peaceful, Cohesive and Resilient Society

Foundation

Advancing and mainstreaming STI at all levels and in all sectors

A scientifically advanced nation for socio-economic transformation and inclusive

growth

Transformation Programme

Vision

Mission

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ST 6

Enhancing

strategic

international

alliances

A High Income, Inclusive

and Sustainable Nation

National Social Transformation

Programme (NSTP)

Political Transformation

Programme (PTP)

The Malaysian Government

commits itself to undertake

the role of developer and

catalyst of the country’s

biotechnology sector

BRAND STATEMENT Biotechnology for wealth creation and social well-being VISION Position biotechnology as the new economic engine to enhance prosperity and wellness of the nation by 2020

SECTORAL POLICY:

NATIONAL

BIOTECHNOLOGY

POLICY

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THRUST 9

Government

Support and

Commitment

THRUST 8

Strategic

Development

THRUST 7

Legislative and

Regulatory

Framework

Development

THRUST 6

Financial

Infrastructure

Development

THRUST 5

Human

Capital

Development

THRUST 4

R&D and Technology

Acquisition

Development

THRUST 3

Industrial

Biotechnology

Development

THRUST 2

Healthcare

Biotechnology

Development

THRUST 1

Agriculture

Biotechnology

Development

9 THRUSTS

National Biotechnology Policy

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COMMERCIALISATION OF

360 HIGH IMPACT PRODUCTS

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Commercialisation covers:

• Licensing/Spin Off/JV

• Production

• Sales

• Export

• Utilisation of technology/transfer of services

COMMERCIALISATION

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• Output of research funded by MOSTI

• Products/services developed from intervention services by MOSTI agencies

• Meet the following requirements of high impact criteria: ⁻ Import Substitute ⁻ National Concern (9 Research Priority Areas) ⁻ Mass usage/demand ⁻ New sources of growth ⁻ High impact in the future ⁻ Societal well being

DEFINITION OF

HIGH IMPACT PRODUCTS

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COMMERCIALISATION FRAMEWORK

MOSTI’s Role

• Steering Commercialization Process for End to End Facilitation

• Policy • Performance measurement • Resolve Cross-cutting Issues (central procurement, MOH)

• Facilitate and provide funding

• Promotion

Commercialization Vehicles are responsible

for:

• Identifying technologies

• Productization Services • Business Matching & Licensing

• Delivering commercialized projects

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COMMERCIALISATION VEHICLES

1. SIRIM-industry, manufacturing

2. TPM-Biotechnology

3. MIMOS-ICT, Microelectronics

4. Biotech Corp-Biotechnology

5. YIM-Social Innovation

Others:

*AIM, Public Private Research Network (PPRN), PlatCom

Ventures, Nano Malaysia Bhd., etc.

– smart partnership, marketing agent 11

2014 65 products

2015 60

products

2016 60 products

2017 60 products

2018 60 products

2019 60 products

Milestone to Commercialise

360 High Impact Products

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VALUE CHAIN AND INITIATIVES FOR

COMMERCIALISATION OF 360 HIGH IMPACT PRODUCTS

Existing database /

products

Stock taking

RMKe9 RMKe10 Determine

Potential High Impact Products

Undergo due diligence process

Commercialisation programmes

•Commercialised 314

(8.1%)

•Potential projects for commercialisation

1,172

•Completed Projects

3,861

•Approved Projects

4,566

•Commercialised 54

(15.2%)

•Potential projects for commercialisation

237

•Completed Projects

353

•Approved Projects

1,550

Targets for MKPI :Number of Innovative Products/ Solutions/ Technologies

Commercialised

Determined by Agencies

1

2

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PRE COMMERCIALISATION FUND FOR 360 HIGH IMPACT PRODUCTS

1. Facilitation Activity • To reduce failure gap between pre

commercialization to commercialization phase

2. Social Innovation • Improvement of Community InnoFund

Scheme

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EXPANSION OF COVERAGE: FACILITATION ACTIVITY

Preparation & Facilitation for

product commercial

Applicant: MOSTI Fund Recipient

Proof of concept

Applicant: Techno Fund

applicant

Provision and IP Registration

Applicant: Open to All

Technology Distribution Fund provided for

technology distribution developed by agency and MOSTI organisation to

community

Facilitation Activity

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Target Group:

• Bottom of Pyramid (BOP)

• Aborigines

• Single mother

• OKU

• NGO/ Community Group

• JKKK

EXPANSION OF COVERAGE: SOCIAL INNOVATION

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BCF Background

A program under the Tenth Malaysian Plan (10MP)

Managed by BiotechCorp as part of overall incentives for BioNexus status companies

A funding scheme that combines term loan and grant at a ratio of 2:1

A maximum funding of RM 3 million per BioNexus status company 17

BIOTECHNOLOGY COMMERCIALIZATION FUND (BCF)

BCF: Key Objective

To facilitate on-going commercialisation

of biotechnology products

and services and/or expansion

of existing biotechnology

business.

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BCF: General Eligibility

Criteria

A BioNexus Status Company

Majority owned by Malaysian i.e. 51%

Minimum paid-up capital of RM250,000

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Bioeconomy Transformation Programme (BTP)

Bioeconomy Transformation

Programme

BTP is a platform provided by the Government to the private sector to give and maximise product commercial opportunity based on biotechnology

National Visibility

Involvement in Bio- Accelerators

Market Acsess

Acsess to BTP Fund

Facilitation Support

Total Fund: RM85 mil under 10th MP

Allocated Fund 2014-2015: RM 35 mil

Fund Manager Appointed: Malaysia Debt Ventures (MDV)

Quantum: 10% from total project cost or maximum RM 10 mil

BTP Job Creation by 2020

Total investment

in 2020

GNI in 2020

RM48 bil 170,000 RM50 bil

Target Impact:

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Genting Plantations Berhad (GENP) plans to expand downstream business by setting up a world-scale Integrated Bio-Refinery Complex at Palm Oil Industry Cluster (POIC), Lahad Datu, Sabah:

Partners with Elevance Renewable Sciences, Inc (Elevance) to construct Metathesis Plant, the main platform of the integrated complex using Elevance’s Nobel-prize winning proprietary technology

Allows production of high value oleo derivatives: Specialty Chemicals, Olefins, Saturated Methyl Ester (ME), and Methyl Ester Sulphonate (MES)

Completed the engineering design of Bio-Refinery (A), construction to start in Q1 2015 and to commercialise its first phase in Q2 2016

Genting Plantations Berhad

Cumulative GNI by 2020

Total employment by 2020

GNI in 2020

IMPACT PROJECT TITLE

RM 566.7 million

RM 2.1 billion

775

Cumulative investment by 2020 RM 1.7 billion

SECTOR/EPP

BioIndustrial EPP I.2: Biochemicals from Renewable Resources

PROJECT DESCRIPTION & CURRENT PROGRESS

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VALUE PROPOSITION

Integrated Bio-Refinery Complex in Palm Oil Industrial Cluster

State-of-the-art Technology The Integrated Bio-Refinery Complex stems from Nobel-prize winning proprietary technology

Supports Green Initiative Uses renewable feedstock and emits 50% less greenhouse gas

Synergy with Palm Oil Industry Develops avenue for high value downstream output and supports sustainability of upstream industry

Economic Growth Significant investment of RM1.7 billion to grow local economy

Felda Palm Industries Sdn Bhd

Cumulative GNI by 2020

Total employment by 2020

GNI in 2020

IMPACT PROJECT TITLE

RM 50.2 million

RM 129.7 million

154

Cumulative investment by 2020 RM 260 million

SECTOR/EPP

BioIndustrial EPP I.1: Industrial Bioeconomy Upstream Inputs

PROJECT DESCRIPTION & CURRENT PROGRESS

VALUE PROPOSITION

Bio-Compressed Natural Gas (BioCNG) from Palm Oil Mill Effluent

Felda Plantation Industries Sdn Bhd (FPISB) currently owns 72 palm oil mills in Malaysia, with primary activities on processing fresh fruit bunches and sale of its finished products

Has expanded into downstream activity, converting palm oil mill effluent (POME) into energy source. By 2014, it has 11 fully operational biogas capturing facilities

FPISB plans to diversify the biogas utilisation by converting the raw biogas into industrial grade BioCNG, targeting 13 of its palm oil mills to be equipped with BioCNG facilities in Selangor, Pahang, Sabah, Kelantan and Johor

Appointed Sime Darby Offshore Engineering to construct its first BioCNG plant in Felda Sungai Tengi mill, utilising technology from Safe S.p.A., Italy

Expected to commercialise its first plant by March 2015

High Potential Offtake JV company between Gas Malaysia and Sime Darby to purchase the BioCNG from the first plant

One of the Top Plantation Leaders World's largest palm oil producer and oil palm plantation operator

Mitigates Environmental Impact Reducing greenhouse gas emissions

Supports Malaysian National Renewable Energy (RE) Policy and Action Plan 2010

Reduce Dependency on Fossil Fuel Utilises BioCNG as renewable fuel to replace fossil fuel/diesel for generating power or heat

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Green Plant Organic Fertilizer Sdn Bhd

Cumulative GNI by 2020

Total employment by 2020

GNI in 2020

IMPACT PROJECT TITLE

RM 33.6 million

RM 148 million

260

Cumulative investment by 2020 RM 43.6 million

SECTOR/EPP

PROJECT DESCRIPTION & CURRENT PROGRESS

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VALUE PROPOSITION

Converting Oil Palm Waste to Biofertilisers through the Implementation of Integrated Waste Treatment Plant

AgBiotech EPP A.1: Bio-based Farm Inputs

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Economical Increases the value of oil palm biomass, improves the productivity of FFB and save the fertiliser cost of up to 30% by reducing import of mineral fertiliser

Social Impact Support farmer’s acceptance on the benefits of mixing biofertiliser for their soil enhancement rather than using 100% chemical fertiliser

Green Technology Reduce the discharge of industry waste and reduce greenhouse emission as well as improving the quality of agriculture land Integrated Mechanism Scheme Creates sustainable agricultural practice, channels waste back into the surrounding plantations and improves the palm oil mill’s waste management

• Green Plant Organic Fertilizer (GPOF) involves in converting palm oil mill waste into bio-organic fertilisers. A 36,000 MT per year biofertiliser plant was setup and has been in operation for 4 years which has been tested on its own 1,000-acre palm oil plantation and proven to enhance FFB yield by more than 20%.

• GPOF is set to expand another 10 biofertiliser plants through Build-Operate-Transfer for up to 15 years concession in Pahang, Sabah and Sarawak.

THANK YOU

http://www.mosti.gov.my

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