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PERAK
BIOTECHNOLOGY
STRATEGIC
PLAN
AND
ACTION
PLAN
Contents
A.
INTRODUCTION
.......................................................................................................................
4
B.
Definition
and
Categories
of
Biotechnology
...........................................................................
5
C.
Biotechnology
and
Perak
........................................................................................................
8
1.
Underlying
State
Policies
.....................................................................................................
8
2.
Perak
Biotechnology:
Strength
and
Challenges
..................................................................
9
3.
Existing Biotechnology Initiatives in Perak
......................................................................
11
a.
Perak
Bio
.......................................................................................................................
11
b.
Healthcare
biotechnology
.............................................................................................
13
c.
Agriculture
biotechnology
.............................................................................................
14
d.
Industrial and green biotechnology
...............................................................................
16
e.
Bioinformatics
...............................................................................................................
17
f.
Human Resource Development
.....................................................................................
17
D.
Perak
Biotechnology
Strategic
Plan
.......................................................................................
19
1.
Introduction
.......................................................................................................................
19
2.
Success Factor
...................................................................................................................
20
3.
Policy Thrust
.....................................................................................................................
21
E.
Perak
Biotechnology
Action
Plan
..........................................................................................
25
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Table
of
Figures
Figure
1:
Biotechnology
Focus
Areas
in
Malaysia
...........................................................................
6
Figure
2:
Biotechnology
Capacity
Building
2005-­‐10
........................................................................
6
Figure
3:
Creating
Business
2011-­‐2015
...........................................................................................
7
Figure
4:
Long
Term
Development
2016-­‐2020
................................................................................
7
Figure
5:
Some
existing
biotech
activities
in
Perak
.......................................................................
11
Figure
6:
Perak
Bio
Vision
and
Mission
.........................................................................................
12
Figure
7:
Roles
of
Perak
Bio
...........................................................................................................
12
Figure
8:
Perak
Bio
Organisation
Structure
...................................................................................
13
Figure
9:
RAC
Aquaculture
in
Segari
..............................................................................................
15
Figure
10:
Biotechnology
Success
Factor
......................................................................................
20
Figure
11:
Action
Plan
..................................................................................................................
25
Figure
12:
Individual
Success
Factors
............................................................................................
27
Figure
13:
Critical
Path
Analysis
Chart
...........................................................................................
28
Figure
14:
Biotechnology
Clusters
in
Perak
...................................................................................
30
Figure
15:
Perak
CBioD
Initiatives
.................................................................................................
31
Figure
16:
Formation
of
Specialised
Facilities
...............................................................................
33
Figure
17:
Advisory
Centre
............................................................................................................
35
Figure
18:
Perak
Hitech
Park
(Biotech)
..........................................................................................
37
Figure
19:
Perak
Biotech
Park
Development
Structure
.................................................................
38
Figure
20:
Development
Progress
of
Perak
Hitech
Park
...............................................................
38
Figure
21:
Basic
Concept
for
Perak
Biotech
Park
..........................................................................
39
Figure
22:
Main
milestones
of
Perak
Biotech
Park
Development
.................................................
40
Figure
23:
Concept
for
Perak
Bio
HQ,
Incubators
and
PLSI
(based
on
Manchester
U)
.................
41
Figure
24:
Value
Proposition
of
PLSI
.............................................................................................
46
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Figure
25:
Vision
and
Missions
of
PLSI
..........................................................................................
47
Figure
26:
Perak
Hitech
Venture
Fund
..........................................................................................
50
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A. INTRODUCTION
1. The main objectives of the creation of the Perak Biotechnology Strategic Plan and
Perak Bio Business Plan include:
a. To take stock of Perak’s position in biotechnology sector from the Malaysian
and more perspective;
b. To provide a broad based Strategic Plan on the development of biotechnology
in Perak; and
c. To provide a broad based and flexible action plan.
2. Perak Biotechnology Strategic Plan will be guided by various State and National
policies including the National Biotechnology Policy (NBP), the Malaysian Third
Industrial Master Plan 3 (IMP3), Perak Maju 2015 Policy Statement, K Perak
2010 Strategic Plan and Gagasan Perak Amanjaya.
3. The Strategic Plan incorporates the followings:-
a. The vision planning, strategic thrust and directions that is economically,
socially, politically and environmentally viable;
b. Identify the focus niche key areas with its competitive advantages; and
c. An economic plan that is conducive to foster development of biotechnology
industries in the State of Perak.
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B. Definition
and
Categories
of
Biotechnology
1. Biotechnology has been in existence for centuries, long before the terminology
was even coined. Biotechnology can be categorised into classical and modern
biotechnology. While classical biotechnology is always referred to as the
production of useful products by living microorganisms such as the fermentation
process that produces beer or food items, modern biotechnology began in the
1970s with the research into genetic engineering based on the two basic
techniques of recombinant DNA technology (rDNA), hybridoma technology1 and
cell fusion technology.2
2. Biotechnology can be broadly defined as the use of living organisms to make a
product or run a process.3 Biotechnology also refers to any technological
application that uses biological systems, living organisms or derivatives to make
or modify products or processes for specific uses,4 or industries. Biotechnology is
as also defined as “the application of science and technology to living organisms,
as well as parts, products and models thereof, to alter living or non-living
materials for the production of knowledge, goods and services.”5
3. Biotechnology combines disciplines such as genetics, biochemistry, microbiology,
and cell biology and has been called the “technology of hope” for its ability to
improve the quality of life through advancements in food safety, health care,
industrial and environmental sustainability.6
4. Among the benefits of biotechnology are increased agriculture output, protection
of the environment and production of health care products.
5. Malaysia has identified several biotechnology focus areas, as shown in Figure 1
below:
1 S.N. Cohen, ., A. C. Y. Chang, H. W. Boyer, and R. B. Helling, ‘Construction of Biologically Functional
Bacterial Plasmids in Vitro.’, 70 Proceedings of the National Academy of Sciences, 3240, (1973).
2 ATAS, Biotechnology and Development: expanding the capacity to produce food, Advanced Technology
Assessment System, Issue 9, (New York, United Nations, 1992).
3 See for example P.W. Grubb, Patents for Chemicals, Pharmaceuticals and Biotechnology, Fundamentals of
Global Law, Practice and Strategy, (Oxford, OUP 3rd Ed., 1999), 224.
4 Convention on Biodiversity (hereinafter called ‘CBD’), Art.2.
5 B.van Beuzekom and A. Arundel, OECD Biotechnology Statistics -­‐‑2006, (Paris, Organisation for Economic
Cooperation and Development, Paris, 2006), 7.
6 A. Kumar, ‘Indian Biotech Bazaar, A Swot Analysis,’ Biotechnol J, May 4: 2, (5) 543-­‐‑535. (2007).
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Biotechnology Malaysia – Focus Areas
Traditional
Complementary
Medicines
New Agriculture Value Added Products
Food Supply High Yield Crop
Agri Biotechnology
Natural Substances Nutraceutical
Tropical Diseases Bioinformatics Microbes Technologies
Contract Research Contract Manufacturing Bio Fuel
CRO CMO
Healthcare Biotechnology Industrial Biotechnology
Green Chemistry
Clinical Trials Diagnostics & Vaccines
BioMedical Bio Materials
Instruments Enzymes/Catalyst
Figure
1:
Biotechnology
Focus
Areas
in
Malaysia
The focus areas are within three broad categories namely agriculture
biotechnology, healthcare biotechnology and industrial biotechnology.
6. The policy encompasses 3 phases, namely capacity building (2005-2010), creating
business out of science (2011-2015) and turning Malaysia into global player
(2016-2020) as outlined in Figures 2, 3 and 4 below.
PHASE 1: SHORT TERM DEVELOPMENT (2005-2010)
Action Time Frame Target
Establish first phase of the 2005-2010 6 Commercial trophies by year 2010
Biotechnology Business
Agriculture
Establish as regional centre of
• Enhance Agriculture 2005 excellence by year 2009
Biotechnology Centre
Establish as regional centre of
• Enhance Marine Biotechnology
2005 excellence by year 2010
Centre
Healthcare
Establish as regional CRO centre by
• CRO in Clinical Expertise 2005-2008 year 2008
• CMO in Bio-Generics 2005-2009 Establish as regional CMO centre by
• Molecular Diagnostic for year 2009
2005-2010
infectious diseases
2006-2010 Commercialization by year 2010
• Vaccines for tropical diseases
Commercialization by year 2010
Industry Biotechnology
Generate early revenue for the
• Enzymes and Industrial 2007-2008
industry by year 2008
chemicals
Figure
2:
Biotechnology
Capacity
Building
2005-­‐10
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PHASE 11: MEDIUM TERM DEVELOPMENT (2011-2015)
Action Time Frame Target
Establish second phase of the
Biotechnology Business
2011-2015 One Key Transaction every 6 months
Accelerator
Agricultural Biotechnology
• Development of Improved Commercialization success by year
Crops 2011-2015 2015
• Development of Research 2011-2015 Commercialization success by year
Outsourcing Center 2015
2011-2015
• Development of Natural
Products Commercialization success by year
2015
Healthcare
• Bio-Banking 2009-2010 Bio Banking products to be
commercialized by year 2012
Industry Biotechnology Develop a successful company for both local
• Bio-Energy 2011-2015 and export markets by year 2015
2011-2015 Develop a successful company for both local
• Bio-Materials
and export markets by year 2015
• Bioinformatics initiatives in Contribution towards success of at least 3
Starts in 2006 business accelerator projects by year
support of 3 focus area
2015
Figure
3:
Creating
Business
2011-­‐2015
PHASE 111: LONG TERM DEVELOPMENT (2016-2020)
Action Time Frame Target
Agricultural Biotechnology
• Bio-pharming 2016-2020 Commercialization
success by year 2020
Healthcare Biotechnology Commercialization
• Drug discovery 2016-2020 success by year 2020
Industry Biotechnology Commercialization
2016-2020 success by year 2020
• Manufacturing of bio-based
products
Figure
4:
Long
Term
Development
2016-­‐2020
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C. Biotechnology
and
Perak
1. Underlying
State
Policies
1. There are three major policies of the State of Perak which may be taken into
account at this stage to assist Perak to develop its biotechnology sector. The two
policies are Perak Maju 2015, KPerak 2010 and Gagasan Amanjaya.
2. The Vision of Perak Maju 2015 is for Perak to become a developed state during
2015 by focusing on state economic development, eradication of poverty and
squatters. The mission of Perak Maju 2015 is to generate all sectors towards
achieving key economic and social indicators to fulfil the criteria of developed
state and increase citizens standard of living and quality of life through
comfortable environment and healthy lifestyles.
3. To achieve the KPerak 2010, the State Government has prepared three important
knowledge development areas, namely the Knowledge Infrastructure (K-Infra),
Knowledge Economy (K-Economy) and Knowledge Society (K-Society).
4. The K-Economy thrust encompasses both existing and new economic sectors and
this is not limited to ICT sector alone. Although the original strategy hinges on
developing ICT as an industry as well as ICT as an enabler to spur new economic
activities and enhance value-creation, biotechnology should also be included in
the aim of K-economy. This is because the aim of K-economy under the KPerak
2010 is to e-enable major industries by tapping the potential synergy from the
interaction between new technologies and educated population within an enabling
environment for the attainment of knowledge - based economies.
5. Sustainable human capital development is a key component of K-Society. Perak
has outlined a 5As strategy; consisting of Access (by providing equal access to PC
and internet to the society), Awareness (by running awareness programme and
engagement activities), Academy (by running basic and advanced ICT courses),
Add Value (by enhancing community access points) and Adoption (by
implementing commercial and social activities); to build confidence across
different segments of the communities in embracing the ICT lifestyle by providing
the people with access to technology, skills to use technology; and reason to
continue using technology.
6. In order to achieve a balanced and sustainable development, Perak has also
launched the Gagasan Perak Amanjaya that has 7 specific thrusts namely:
balanced development and distribution, community with skills, knowledge and
integrity, state and government as a catalyst, social integration, participative and
active younger generations, sustainable private sector development, and eco-
friendly and sustainable development practices.
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2. Perak
Biotechnology:
Strength
and
Challenges
7. Biotechnology in Perak may take advantage of several other factors. Such factors
include:
a. Perak is one of the mega-diversity states in Malaysia, which is itself a
mega-diversity country in the world. Measuring 21,005 km2, almost half of
Perak is covered with forests as much as 10,502km2 where by 95.6% of it
is Equatorial Rainforest and the remaining 4.4% is covered by mangrove
forests which may provide genetic resources for biotechnology related
activities. The Belum and Temenggor forest reserves, approximately of
130 years old, older than the Amazon and the Congo, form the second
largest remaining block of virgin forest in Peninsular Malaysia and the
largest example of the northern monsoonal Burmese-Thai forest vegetation
zone (Bamboo-Schima) in Malaysia.
b. The biodiversity can also be combined with the traditional knowledge that
may enhance competitiveness in the local and indigenous biotechnology
sectors. Traditional knowledge in Perak can be sourced from the various
ethnic groups such as the Malay, Chinese, Indian and also the Tribal
people. Perak Bio-Corporation has already started operation on this part.
c. The lower cost of industrial land and factory building compared to the
nearest neighbouring states such as Penang, Selangor and Kedah. The
selling price in Perak is between RM 5.00–17.00 per square foot compared
to RM 12.20–21.00 in Penang and RM 7.00–22.00 in Selangor. The quit
rent is also cheaper, that is a flat rate of RM 3,000.00 per hectare in Perak
compared to RM 1500.00–21,095.00 in Selangor. However, the property
price should not be the main selling factor as Perak has be able to portray
other advantages over other states in attracting those interested in
biotechnology.
d. Perak has clear objectives of becoming a developed state by 2015, which
is reflected in the KPerak and also Perak Maju targets. These two plans
will make Perak Government work hard to achieve the targets. For
example, the Perak Maju 2015 targets to have a GDP of RM68.43 billion
in 2020 from RM34.49 billion in 2010.
e. Biotechnology activities are already taking place in various parts in Perak.
For example, Perak has designated a Pharmaceutical Park in Seri Iskandar
and Biotechnology Park in Ipoh which has two existing pharmaceutical
factories. At the same time, there are research and teaching institutions that
provide teaching and research in the fields relating to biotechnology. Perak
may take advantage of the existence of universities such as University
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Tunku Abdul Rahman (UTAR) and University Teknologi Petronas (UTP)
to enhance the human capital development and research and development
activities.
8. Despite the advantages above, development of the biotechnology sector in Perak
faces several challenges:
a. Perak faces investment, capital and financial issues which are prevalent
anywhere in the world as biotechnology activities are highly capital
intensive, whilst at the same time requires highly skilled and
knowledgeable workers. Thus, Perak has to be able to find solutions to this
problem and Perak cannot rely on the Federal government alone. There is
not enough human capital to attend to specific requirement of
biotechnology. For example, not many experienced human resources with
experience in managing biotechnology business in the state of Perak. Such
people guide company growth and move products through the
commercialization process to the marketplace. These managers not only
have to design and direct the strategic product development plan and face
the technical and regulatory hurdles involved, but also have to manage
manufacturing, find funding and develop alliances for commercial success.
b. The State has to ensure that biotechnology activities not only bring wealth
and benefit to the main participants and investors, but also to bring the
benefit to as wide a community as possible, so that biotechnology will be
the catalyst to reduce poverty, to bring more income equality and to
enhance standards of living among the people across the different parts of
the state.
c. There is culture and innovation gap in biotechnology field in the state of
Perak. There are not enough biotechnology starts-up in the state of Perak.
Even if there are universities academics, many academics are embedded in
the academic mindset and not entrepreneurial in nature. Yet the success of
development requires a different set of skills and experience on the
commercial side. Lack of biotechnology activities also contributes to the
lack in innovation, causing the existence of innovation gap in the state as a
result of lack of research and development, technology development,
research expenditure and human capital development in the field.
d. In order to develop biotechnology commercial activities and to attract
investment, Perak has to compete with other states in Malaysia and other
countries in the region. Competition within Malaysia comes from more
matured biotechnology activities in Penang, Selangor and also through the
development of BioXcell in Iskandar Malaysia in Johore. Down south,
Singapore has become a world class biotechnology destination for
commercial and research development activities which attract large
multinational companies. Nevertheless, Perak may be able to compete by
leveraging on its main strength i.e. biodiversity.
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3. Existing Biotechnology Initiatives in Perak
Figure
5:
Some
existing
biotech
activities
in
Perak
a. Perak
Bio
9. Biotechnology initiative in Perak is led by Perak Bio Corporation Sdn Bhd (Perak
Bio), a subsidiary of Perak State Development Corporation (PSDC). Perak Bio is
being managed by Puan Rohati Shafie and assisted by Puan Petri Zawahair as the
Project Manager.
10. Perak Bio, being the lead agency responsible for the coordinated implementation
of the Perak Biotechnology Strategic Plan and Action Plan will oversee the
implementation of the Strategic Plan and the Action Plan. Perak Bio may have the
following Vision and Missions:
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4
Figure
6:
Perak
Bio
Vision
and
Mission
1. The role of Perak Bio includes:
Figure
7:
Roles
of
Perak
Bio
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BOARD OF DIRECTOR
Dato' Hamdi b Abu Bakar
Tn Sayed Shariffuddin b Sayed Shamsuddin ADVISOR
Tn Hj Sarjiddin b Ahmad Hanif Dato' Samsudin b Hashim
Pn Norhaslinda bt Dato' Ayob
En Mohamed Sani b Supi
En Zaffani b Azul Islami
CEO
Rohati bt Shafie
ASSISTANT CEO
Vacant
Petri Zawahair bt Megat Ishak Petri Zawahair bt Megat Ishak MANAGER MANAGER
OPERATION & SERVICES & MGMT INVESTMENT & PROJECT BUSINESS DEVELOPMENT FINANCE & ADMINISTRATION
OF BIOD RESOURCES MANAGER DEVELOPMENT MANAGER & HUMAN RESOURCES
ASSISTANT MANAGER ASSISTANT MANAGER ASSISTANT MANAGER ASSISTANT MANAGER
Vacant Vacant Vacant Vacant
EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE
Vacant Vacant Vacant Vacant
CLERK CLERK
Vacant Vacant
`
BIO BIO BIO BIODIVERSITY BIO MARINE BIO ENVIRONMENTAL
SERVICES AGRICULTURE HEALTH CARE & TRADITIONAL ANIMAL & INDUSTRIAL BIOFUEL (EM TECHNOLOGY)
KNOWLEDGE AQUACULTURE
Figure
8:
Perak
Bio
Organisation
Structure
b. Healthcare
biotechnology
2. In healthcare biotechnology, there is a 150 acre site of Seri Iskandar
Pharmaceutical Park in Seri Iskandar. Nevertheless there is low take up rate of the
spaces in the Pharmaceutical Park. One is the Idaman Pharma Manufacturing Sdn.
Bhd, (previously known as Safire Pharmaceuticals (M) Sdn. Bhd.) a bumiputra
owned manufacturing generic pharmaceutical products mainly for the government
contracts. Another occupant in the Seri Iskandar Pharmaceutical Park is
Pharmasafe, a healthcare products manufacturer (contact lense solution and the
like).
3. In addition, Hovid Research Sdn Bhd, a Bionexus Company is also involved in
the clinical research services, pre-clinical drug development, drug delivery
systems and its related services for pharmaceutical companies. Stem Life, a stem
cell based company with Bionexus Status is also having its branch in Ipoh.
4. Teleflex, a US medical device group with its headquarters in Philadelphia plans to
turn its manufacturing and research and development facility in Taiping into a hub
for its next generation medical devices.
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c. Agriculture
biotechnology
5. Many activities are also taking place in the agriculture and aquaculture sectors.
Under the aquaculture sector, Perak has designated more than 26 areas as the
aquaculture industrial zone (ZIA). Among the objectives of ZIA are to provide a
supply of aquaculture products in order to balance the trade, to increase the
income of small aquaculture entrepreneurs and workers to a minimum of RM3000
per month, to ensure fish and fishery products are safe and of high quality, to
increase the participation of private sectors in the ZIA, and to create an efficient
aquaculture network.
6. Among the high impact ZIAs in Perak are Rungkup, Hilir Perak (2,175 hectares)
for salt water shrimps in ponds, Tasik Kenering (100 hectares) and Tasik
Temenggor (100 hectares) acres both in Hulu Perak for the caged freshwater fish.
In addition there are 100 hectares being gazetted as ZIA in Bukit Merah in the
district of Kerian for arowana breeding. Among the ZIA already identified are
Tasik Temenggor (200 ha, 1600 mt), Tasik Kenering (60 ha, 480 mt), Tasik
Chenderoh (60 ha, 380 mt), Kayan and Lekir (451 ha, 7036 mt), Segari (77 ha,
1200 mt, Pulau Mentagor (200ha, 8000 mt) and Lawan Kuda (122ha).
7. Among areas identified for mining ponds are Batang Padang (900ha), Perak
Tengah (100ha), Kuala Kangsar (35ha), Larut Matang (23ha) and Hulu Perak
(40ha). The mud flats areas of Kerian (250ha), Larut Matang (950 ha), Manjung
(115ha) and Hilir Perak (113 ha).
8. The Fisheries Department plans hatcheries for fresh water fish (34 and 172 m
fries), Udang Galah (4 and 20m fries), Sea Shrimp (47 and 938 m fries), sea water
fish (8 and 19 m fries).
9. The Department of Fisheries Perak runs several centres in Perak, such as the Pusat
Penetasan Udang Galah Kampung Acheh, Pusat Ikan Hiasan Enggor, Pusat
Teknologi Perikanan Kampung Acheh, Pusat Pengembangan Akuakultur Tapah
and Pusat Pengembangan Akuakultur Banding.
10. Under the Perak Maju 2015 strategic plan, the Fisheries Department plans to
develop marine fisheries, aquaculture, fisheries produce processing and
ornamental fish. To develop aquaculture business, the Fisheries Department plans
to create Zone Industri Akuakulture (ZIA), redevelop mine ponds, mud plans and
develop hatcheries for fish and shrimps. The Fisheries Department plans to have
commercial, large scale, high technology and integrated development involving
private sectors. The development process will take into account conservation
objectives and sustainable use of resources with the aim of producing competitive,
high quality and safe produces.
11. In relation to the above, Perak Bio is also developing a 150 acres area through its
JV company RAC Sdn Bhd in Segari and another 40 hectares area in Teluk
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Senangin, both in the district of Manjung for aquaculture projects. The site in
Segari will also be recognised as ZIA.
Figure
9:
RAC
Aquaculture
in
Segari
12. Perak may benefit from the research and development conducted at the Veterinary
Research Institute in Ipoh. It provides leadership in research into animal health
and diseases of economic and zoonotic importance and serves as the national
animal health reference centre. Established in 1948, it spearheads the research and
development of novel vaccines and biologicals for veterinary use using local
isolates. These vaccines are tested and proven for safety, efficacy and potency
following USDA standards.
13. There are several agriculture biotechnology activities already taken place in Perak.
For example, there is plant tissue culture facility operated by Actinalpha Biotech
Sdn Bhd in Kampar and Ipoh. In addition Klonsawit Agrocom, an Ipoh based
company is also involved in palm oil cloning using the in vitro technique of tissue
culture known as somatic embryogenesis.
14. Perak has several research institutions capable of contributing to the development
of agriculture biotechnology. One is the Pusat Pembangunan Komoditi Jabatan
Pertanian in Titi Gantong, Bota, which is involved in the development of
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horticulture. Another is the Pusat Penyelidikan dan Pembangunan, Lembaga Koko
Malaysia, in Sungai Sumun, Perak.
d. Industrial and green biotechnology
15. Green biotechnology involves the production of environmental friendly products
and processes using or contributing to biotechnology techniques. For example
Wing-M Chemical Sdn Bhd has been producing biomass from palm oil kernels in
Kanthan Industrial Estate in Ipoh for use mostly in the pottery industry as
alternative to fossil fuel. In another development Sariyaa Sdn Bhd is also
developing alternative fuel from bamboo based in Gerik Perak.
16. In the field of green biotechnology, Enretech (M) Sdn Bhd, a Bionexus Company,
a company related to Enretech in Australia, plans to have activities related to
organic absorbents and soil treatment technologies using cotton and recycle
cellulose materials which can be used in food, health and education.
17. Related to Hovid, Bio-Fertilisers Sdn. Bhd, another Bionexus Company, is a
biotechnology company specializing in the production and use of microorganisms
in agriculture, horticulture, animal husbandry and aquaculture. Their products aim
to improve the quality and yield of the relevant produce as well as to maintain
their sustainability. The Company’s area of focus is research and development
using microbes to:-
a. Remediate the environment (soil, water, waste) via bio-augmentation;
b. Control pathogens and pests using bio-pesticides;
c. Enhance plant and animal health, (hence better yield);
d. Improve the aesthetic quality of produce; and
e. Enhance sustainability
18. Bio-Fertilizers Sdn. Bhd. is committed to formulate highly efficient and harmless
products that will help reduce environment pollution yet able to maximize the
returns from the land. The Company’s present line of products include plant
growth promoting microbes (bio-fertilizer), soil and water remediation microbes
also known as effective microorganisms, probiotics for aqua culture like
photosynthetic bacteria (PSB) and other growth enhancing microorganisms for
livestocks. Organisms like fungus that help to degrade organic wastes faster are
also available. Pesticides, using microbes, for control of pests in agriculture are
also being developed.
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19. Another related activity is in the field of biofuel through Carotech Biovit, a
Bionexus Company, a subsidiary of Carotech Berhad which is engaged in the
processing and extracting of palm phytonutrients. Carotech Berhad is a Malaysia-
based company engaged in the extraction and processing of nutrients from palm
oil for the purpose of manufacturing and producing pharmaceutical, phytonutrient
and oleochemical products. The Company principally operates in three
geographical areas: Asia and Asia Pacific region; North and South America, and
Europe.
e. Bioinformatics
20. Bioinformatics is an inter-phase between information technology and
biotechnology. There is no single definition of what is meant by bioinformatics.
There are few definitions including “the backbone computational tools and
databases that support genomic and related research, which broadly encompasses
the study of DNA structure/function, gene expression and protein production/
structure/ function”; “the application of information technologies and sciences to
the organization, management, mining and use of life-sciences information” and
“the application of information technologies to the processing of molecular
biology datasets” (Bilateral and the Bioinformatics Industry Opportunity
Taskforce 2002).
21. At the moment there is no commercial activity involving bioinformatics in Perak
although there could be some activities in research institutes such as the Institut
Penyelidikan Veterinar and also at the Lembaga Koko.
f. Human Resource Development
22. There are several institutes of higher education that can contribute towards human
resource development in the field of biotechnology in Perak. One is Universiti
Teknologi Petronas (UTP), based in Seri Iskandar. Although UTP is petroleum
technology based, there are several clusters that could be of interest to
biotechnology sector, such as Chemistry cluster, computer information systemand
physic cluster. Another important institution of higher education is University
Tunku Abdul Rahman (UTAR) in Kampar that has biotechnology related teaching
and research activities.
23. UTAR offers life science degree programmes covering biomedical science,
biotechnology and biochemistry. The bachelor's honours degree in biochemistry
touches on the study of molecular processes of life while programmes covering
biotechnology and biomedical sciences are specialised programmes built on the
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concepts of biochemistry. UTAR's Bachelor of Science (Hons) Biotechnology
focuses on the fundamentals and applied aspects of biological sciences. The
Bachelor of Science (Hons) Biomedical Science emphasises developing sound
knowledge and analytical skills for use in the medical line and in clinical sciences.
The three-year programmes provide students with theoretical knowledge and
practical skills. One of the strongest features of UTAR's life science programme is
its global appeal as students are not only taught core subjects but are also required
to take elective subjects such as business, management, human relations, ethics,
entrepreneurship and social issues. Students are also encouraged to intern after
their second year of study. The firms include Sime Darby Technology, Vivantis,
Sunway Medical Centre and Temasek LifeScience Laboratory Singapore.
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D. Perak
Biotechnology
Strategic
Plan
1. Introduction
1. Perak is challenged with minimal capital and managerial talent, insufficient
infrastructure, and processes that impede commercialization of technology by
private business. To be globally preeminent, Perak must:
a. Spark innovation and discovery by building networks among scientific and
research resources and those capable of developing new ideas.
b. Attract research and management talent that can drive formation of the
next generation of companies.
c. Encourage greater commercialization, so society and the state economy
can benefit sooner.
d. Respond to emerging societal, scientific and economic trends.
e. Provide a globally competitive environment and the perspective for
collaboration among institutional, scientific, entrepreneurial and public-
private institutions.
2. Developing biotechnology business and attracting biotechnology investment is a
massive task faced by the State of Perak.It is a norm that, investors would
consider investing in a country or a location if:
a. they can lower costs through a lower cost work force and good external
supports (such as government incentives);
b. they can take advantage of the capital;
c. they can be closer to partners or clients and diversify risk by locating
another facility elsewhere. They would like to benefit from being close to
similar businesses and universities and research centres;
d. the biotechnology business may take advantage of any special technology,
such as a product that crosses industry boundaries (for example, a
therapeutic that works in conjunction with an optoelectronic device);
e. there is the level of infrastructure meeting company needs. Research,
development, and manufacturing all have different needs and different
levels of support. Smaller operations tend to need more support from a
structured business park because the size of their operation does not justify
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the expense of running their own utilities, for example. Larger operations
may be able to save money by contracting directly with outside providers.
3. Thus, Perak requires policy thrusts that are able to meet the expectations of the
investors and stakeholders in the biotechnology sector whilst at the same time
fulfil the socio-economic needs of the people in the State.
2. Success Factor
4. Perak needs a clear Biotechnology Policy Thrusts, in tandem with and
complements the National Biotechnology Policy in order to meet the following
success factors:
Figure
10:
Biotechnology
Success
Factor
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3. Policy Thrust
5. In order to meet the success factors, it is proposed that the state of Perak adopts
the following policy thrusts:
Thrust One: Development and Acquisition of The Right Technologies
6. Access to new technologies and scientific advancements is the foundation for
innovation opportunities. Biotechnology industry relies on a large number of new
discovery and enabling biotechnologies, which drive innovation and will be the
source of future economic value. Most developed countries increase their
investments and developing strategies in order to capitalize on innovation.
Technologies in biotechnology area cover a wide range.
a. First, Perak has to identify home-grown technology in Perak, such as
traditional knowledge, or industrial technology, either being developed by
the local industry or through local centres of excellence. In addition it may
tap on proven technology developed by other Malaysian companies or
centres of excellence and those which may have being commercialized or
pre-commercialised. Using the concept of Public-Private Partnership and
Private Finance Initiative, Perak may encourage commercialisation and
creation of new business based on, and expansion of existing business
using, those technologies.
b. Secondly, the State may encourage foreign parties such as companies and
institutions to bring in new technologies that could be useful to enhance
biotechnology activities in the State. Foreign parties may invest directly on
their own, thus bringing in and utilising the technology on their own,
although this may not bring direct benefit in terms of local technology
development. To increase local understanding and uptake of foreign new
and useful technologies, local companies may be encouraged to acquire
those technologies either by direct purchase, licensing or forming joint
venture businesses. Nevertheless there must be genuine transfer of those
technologies.
c. Thirdly, there must be continuous support for local innovation and
research, development and design in biotechnology related activities.
Local innovation and R&D&D may take place either by formation of
R&D&D department in existing businesses or within local centres of
excellence. The State should also encourage joint collaboration between
industry and centres of excellence in order to encourage development of
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useful technologies expected by the public in addition to the development
of fundamental technologies.
d. Fourthly there must be strategic alliances between the private sector and
the public sector, between local and foreign parties and between industry
and centres of excellence. In order for Perak to compete with other states
and other countries in the region, Perak has to position itself clearly in the
field whilst at the same time creating strategic alliance within and without
Malaysia. The most important alliance is with Malaysian Biotechnology
Corporation but it does not stop there. The state may encourage the
development of state driven and private sector drive centres of excellence.
In order to promote biotechnology activities there must be Centres of
Excellence that is capable of providing research and development in the
areas identified by the stakeholders in various biotechnology fields. The
centres of excellence may also form strategic alliance as stated above.
Thrust Two: Leveraging on Niche Economic Areas
7. To be competitive as a regional player, Perak has to be selective in what
technology and business it needs depending on what it wants to leverage on. For
Perak to move forward with biotechnology industry there is a need for strategic
positioning of the state within the biotechnology industry in the country and the
region.
a. First of all it needs to identify the focus areas of technology. It is suggested
that Perak concentrates on the following areas of biotechnology:
aquaculture, animal breeding, pharmaceutical and nutraceutical and
industrial biotechnology. In the support sectors, Perak may encourage
activities in logistics, biosafety, intellectual property protection and
management, diagnostics and research tools.
b. Secondly, Perak may also leverage on the availability of mega-biodiversity
for the development of technologies and for the research and development
and design and commercialisation efforts. Perak has to position itself as
the centre for biodiversity related research and production of
biotechnology products and services including those using traditional
knowledge.
c. Thirdly, the marine and aquaculture sector is one of the targets of Perak
Maju 2015 which targets among others marine fish, aquaculture, fish
processing and ornamental fish. Aquaculture and ornamental fish could be
the main targets of marine biotechnology. Based on the Perak Maju 2015,
ornamental fish would bring in sale value of RM49.5 million in 2010 and
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RM75 million in 2015. These values could be enhanced with the
application of biotechnology. It is also expected that aquaculture activities
would bring in RM950 million sale in 2010 and RM1,480 million sale in
2015 to the state. In addition, marine biotechnology may also assist in
conservation of the marine areas such as the mangrove trees, turtle
sanctuaries and other important sectors, which in turn helps to promote
tourism. Biotechnology may also be beneficial in boosting fish stocks and
able to assist in combating fish and prawn diseases.
Thrust Three: Development of Specialised Facilities
8. The Perak Biotechnology Park may contain specialised facilities such as advance
labs, shared state of the art equipment and advisory services. Another important
facility is the existence of special biotechnology cluster or clusters in the State.
One such cluster may be created at the Perak Hitech Park within the soon-to-be-
developed Perak Biotechnology Park.
Thrust Four: Creation and Maintenance of Supportive Public Policy
9. As envisaged in the National Biotechnology Policy, the Government of Perak is
also committed to support biotechnology as an industry and all the stakeholders
within biotechnology industry in the state with investor friendly policies.
10. Perak may take advantage of different economic activities in different parts of the
state to promote different biotechnology activities. For example, in the central
region, the state may be able capitalise the former mining lands and lakes for agri-
and aquaculture using biotechnology based techniques. The northern region which
is part of the Royal Belum and Temenggor area can become the source of nature
based biotechnology activities. The eastern region near Cameron Highlands also
has the same advantage. The Western and coastal region may become the focus
area for marine biotechnology activities.
11. The state may also take advantage of the K Perak and ICT sector in promoting
bioinformatics which is necessary in promoting biotechnology sectors. The
advances of industrial and agriculture sector may also add to relevant activities in
industrial biotechnology such as enzyme production and biofuel and biomass.
Thrust Five: Preparing For Educated Workforce
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12. Human capital development is necessary to provide the required skills and
expertise needed in ensuring the success of biotechnology industry in the state.
Human capital development is not limited to formal classes but may also include
continuous learning and skill upgrading classes and trainings.
13. In addition to knowledge and expertise in fundamental science, a successful
progression through the multiple phases of commercialization requires strong
management teams with a combination of technical, financial, clinical, regulatory,
business and marketing skills and experience. This includes experience in
designing strategy and implementing product development plans, obtaining
financing, manufacturing and marketing. Moreover, the business must have a
global orientation, since generally a company cannot justify the investment
needed to develop a product solely for the Malaysian market alone, but must gain
access to the larger foreign markets such as Indonesia, China, the US and EU
markets. This requires knowledge and experience in international regulatory
requirements, commercialization practices and foreign business operations.
14. The largest barrier to competitiveness is the availability of experienced senior
management in commercial product development and company growth. Such
people able to guide company growth and move products through the
commercialization process to the marketplace. These managers not only have to
design and direct the strategic product development plan and face the technical
and regulatory hurdles involved, but also have to manage manufacturing, seek
necessary funding and develop alliances for commercial success.
Thrust Six: Encouraging Foreign and Domestic Direct Investment and Capital
Formation.
15. In order to encourage economic development, Perak has to rely on private sectors
to kick start the activities in biotechnology, to be fully supported by the
Government and Government linked companies (GLC). GLCs should also be
encouraged to develop new breed of entrepreneurs who are technology savvy and
able to handle the commercial risk in developing businesses based on
biotechnology.
16. The State or its GLC may want to take the lead in encouraging private sector
driven financial infrastructure in order to increase private sector take up and
investment in biotechnology. Providing access to capital may be necessary in
addition to providing fiscal and other types of incentives to investors. The state
through supports from Federal Government may also encourage strategic alliance
with local banks and financial institutions and encourage the creation of Perak-
centric venture capital companies. Strategic alliance may also be formed with
foreign recognised and licensed capital providers.
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E. Perak
Biotechnology
Action
Plan
1. The above mentioned Policy Thrusts will have to be implemented by the State of
Perak through a special agency designated for this purpose, and this case it shall
be the under the portfolio of Perak Bio Corporation Sdn Bhd.
Figure
11:
Action
Plan
2. The Action Plan will have to take into account the above mentioned success
factors (under the Strategic Plan) and the more detailed success factors for the
individual Policy Thrust.
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Thrust Success Factors Strengths/Weaknesses Actions
Thrust 1 - Funding for acquisition (lack of capital) Encourage PFI
Technology
Funding for R&D (lack of capital) Encourage PFI, Federal support
Local participants (no clear participants) Import HR from outside Perak
-
IP Protections Good IP system
Human Resource (lack of local talents) Training, capacity building, Perak
Life Sciences Institute (PLSI)
Thrust 2 – Technology – modern and There are local Encourage further development
Niche Areas traditional technologies, and R&D, contacts with
universities, Technofund
Technofund
Training
IP Good system
Encourage PFI
Funding/Investment (Lack of capital)
R&D
Encourage PFI
(Need further R&D)
Raw Material
Develop raw material, contract
(Need further farming
enhancement)
Market Market study, promotion
(market unclear)
Logistic Need to provide specialised
IIP, Lumut (no facilities
specialised facility)
Training, capacity building, PLSI
Human Resource (lack, UTAR provides
some HR)
Thrust 3 – Participants (lacking specialised Create market to encourage
Specialised facilities) participants
Facilities
(lacking experience) Training, capacity building
Human Resource
Encourage PFI
Funding / Investment
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IP (lacking)
Market Good system -
(depends on industrial Create capacity
development)
Thrust 4 – Human Resource Some HR available Training, Capacity Building
Supportive
Public Policy Clear investment approval (lacking clear Prepare guidelines
policies guidelines)
Thrust 5- Institutions (lacking apart from PLSI, Centres of Excellence
Educated UTAR and other states’
Workforce facilities)
Human Resource (lacking professional, Attract foreign and domestic staff
teaching staff)
Funding / Investment PFI
(lack)
Switzerland, China,
Partners Costa Rica, USA Finalise arrangement, licensing
Market Ready market
Thrust 6 – Investment Promotion Using Perak Invest, Continuous participation
Foreign and MIDA, MATRADE,
Domestic private contacts
Direct
Investment, Funding for investment In contacts with banks, Continuous promotion
Capital promotion private equity, VCs
Formation Submission of project papers.
Figure
12:
Individual
Success
Factors
3. The implementation of the various policy thrusts is outlined in the following
Critical Path Analysis Chart:
Task Earliest start Length Dependent..
1. Setting
up
of
Perak
Bio
Done
-­‐
-­‐
a. Reorganisation
and
staffing
Jan
2011
3
months
Finance
2. Technology
Selection:
a. Formation
of
standing
committee
Nov
2010
1
month
Acceptance
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b. Identify
home-­‐grown
technology
Dec
2010
1
month
Standing
cmt
c. Identify
regional
technology
Dec
2010
2
months
Standing
cmt
d. Identify
international
technology
Dec
2010
2
months
Standing
cmt
e. Strategic
alliances
on
technology
Dec
2010
6
months
Partners
3. Niche
Business
areas
a. Selection
of
niche
areas
Dec
2010
1
month
Standing
cmt
b. Identification
of
existing
business
for
Dec
2010
expansion
c. Identification
of
potential
investors
Dec
2010
d. Identification
of
required
infrastructure
Dec
2010
e. Entrepreneur
Development
Dec
2010
Focus
Group
f. Identification
of
raw
material
and
suppliers
Dec
2010
4. Development
of
specialised
facilities
a. Logistic
–
Transportation
and
Storage
facilities
June
2010
1
year
Businesses
b. Advisory
Centre
Dec
2010
3
months
Partner
c. Biosafety
and
Biosecurity
Nov
2010
6
months
PFI
partner,
expertise
d. Standards
and
Certification
Dec
2010
6
months
Partner
e. ICT
and
Data
Centre
Dec
2010
6
months
K
Perak/PEO
f. Biotechnology
Park
Jan
2011
1-­‐2
years
Approval,
market,
squatters
5. Supportive
Policies
a. Investment
Policy
Nov
2010
2
months
b. Biodiversity
Management
Centre
Jan
2011
3
months
Exco,
Taman
Negeri
6. Educated
Workforce
a. Perak
Life
Sciences
Institute
Dec
2010
7
months
Location,
Finance,
License
b. Aquaculture
Centre
of
Excellence
Jan
2011
7
months
Location,
Finance
c. Strategic
alliance
Jan
2011
6
months
Partners
7. Foreign
and
Domestic
Direct
Investment
a. Domestic
promotional
activities
Nov
2010
Continuous
Finance,
alliance
b. Foreign
promotion
Nov
2010
Continuous
Finance,
alliance
8. Capital
Formation
a. Venture
Capital
Management
Nov
2010
6
months
Partner,
license
b. Alliances
with
banks/financial
institutions
Nov
2010
6
months
Partner
Figure
13:
Critical
Path
Analysis
Chart
Thrust 1: Development and Acquisition of The Right Technology
4. To implement this policy thrust, Perak Bio will have to work with all parties and
stakeholders in the value chain and must not work in isolation. The right set of
technologies depends upon the creation of niche activities which will utilise the
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relevant broad areas of technology. Upon finding the right set of niche, Perak may
proceed to create various clusters in various parts of the state. At the same time
the right of set of technologies may be identified by the industry players or in the
opposite case to be identified by Perak Bio to be proposed to industry players.
5. For the purpose of identifying and acquiring technologies, Perak Bio may form a
standing committee consisting of representatives of industry players in the state;
representatives from Perak Life Sciences Institute and its associated organisations;
representatives from universities in the State and from other parts of Malaysia and
eminent persons.
6. Funding for the acquisition of technologies and the development of home-grown
technologies may be acquired through the relevant industry with the support from
Federal agencies such as Malaysian Biotechnology Corporation, Malaysian
Ministry of Science, Technology and Innovations and Malaysian Technology
Development Corporation. At the same time the industrial player may also
contribute towards the cost of research and development and design of the
relevant technology.
7. Acquisition of Platform Technologies: Perak Bio should also encourage the
acquisition of platform technologies with the right business model. At the same
time, coupled with local technologies, Perak may need to grow local players to be
positioned as key global players in agriculture sector. For example, Multiple
Micro-organism Symbiosis Technology (MSF) which can be applied in enzyme-
based health product. The acquisition of Supercritical Fluid platform technology
will enable large scale extraction of novel bioactive compounds or APIs with high
purity and uniformity for the purpose of scale up commercialisation. In order to
capitalize on the new opportunities arising from the increasing investments in
research, technology transfer from universities to commercial development must
be timely and efficient. This includes protecting and strengthening patents and IP,
testing proof-of-principle and assessing the market. The transfer process might
result in new start-up companies or simply out-licensing, but the research entity
must have adequately protected its discoveries through patents and know-how to
justify commercialization.
Thrust 2: Leveraging on Niche Areas
8. The development of biotechnology in the State of Perak will have to be based on
certain clusters leveraging on the strength and uniqueness of the State whilst
avoiding areas that may have disadvantages.
9. It is suggested that Perak creates three niche clusters, concentrating on
biodiversity related activities, agriculture and healthcare and services.
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Figure
14:
Biotechnology
Clusters
in
Perak
10. One of the niche areas that could be implemented is to capitalise on the existence
of large and unique biodiversity as a basis for biotechnology activities. The state
may encourage clinical and bio pharmaceutical activities, ranging from the
research and development to the commercialisation of finished products.
11. Another angle is to develop biotechnology activities from traditional knowledge.
Traditional knowledge in herbal and medicinal plants, and a treasure trove of flora
and fauna which remains largely unexplored shall be economically developed
such as to encourage discovery of novel and bioactive compounds from natural
resources that can be extracted, formulated, developed and commercialised for use
in ethnic herbal products, food ingredients, functional food, cosmeceuticals,
nutraceuticals and botanical drugs.
12. The biodiversity combined with the traditional knowledge may enhance
competitiveness in the local and indigenous biotechnology sectors. Traditional
knowledge in Perak can be sourced from the various ethnic groups such as the
Malay, Chinese, Indian and also the Tribal people. There is no single definition of
the term “traditional knowledge”. According to WIPO, traditional knowledge is a
multifaceted concept that encompasses several components. What characterizes
traditional knowledge is the fact that, generally, it is not produced systematically,
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but in accordance with the individual or collective creators' responses to and
interaction with their cultural environment. In addition, traditional knowledge, as
representative of cultural values, is generally held collectively. According to
WIPO, contrary to common perception traditional knowledge is not necessarily
ancient.
13. One must recognise that there is an abundance of economic opportunities from the
working of and with traditional knowledge. There are several segments of
biotechnology sectors that could be of interest to traditional knowledge holders to
innovate further. Examples of such areas are in the area of Traditional Medicine
(TM) and Complementary Alternative Medicine (CAM). One of the sub-sectors of
the TM and CAM is the supply of medicinal plants, botanical drug products and
raw materials. The World Bank reports trade in medicinal plants, botanical drug
products and raw materials is growing at an annual growth rate between 5 and 15
percent. Pharmaceutical companies have shown interest in natural product drug
development and discovery and this is an area where traditional knowledge
holders may want to work or collaborate with these companies.
14. Perak will implement the CBioD initiative that leverages biodiversity as catalyst
for various economic activities, resulting in more business opportunities not only
in core biotechnology sectors but also in related activities such as media content
and eco-tourism.
Figure
15:
Perak
CBioD
Initiatives
15. One area that could also be developed as a support to the biotechnology activities
is the concept of “research tourism” where researchers in biotechnology and
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bioprospecting activities are provided with proper facilities and granted access for
their research.
16. Another area where Perak may start any related CBioD activity is the creation of
bioinformatics centre for the protection data relating to biodiversity in Perak and
promoting economic activities through commercialisation of the data. The
bioinformatics centre will be an interphase between Perak Bio, Perak E-
Organisation and K-Perak.
17. Marine Biotechnology and Aquaculture: The marine aquaculture sector is one
of the targets of Perak Maju 2015 which targets among others marine fish,
aquaculture, fish processing and ornamental fish. Aquaculture and ornamental fish
could be the main targets of marine biotechnology. Based on the Perak Maju
2015, ornamental fish would bring in sale value of RM49.5 million in 2010 and
RM75 million in 2015. These values could be further enhanced with the proper
utilisation of biotechnology. It is also expected that aquaculture activities would
bring in RM950 million sale in 2010 and RM1,480 million sale in 2015. In
addition, marine biotechnology may also assist in conservation of the marine areas
such as the mangrove trees, turtle sanctuaries and other important sectors, which
then will be able to assist in promoting tourism. Biotechnology may also be used
to increase fish stocks and assist in combating fish and prawn diseases. It is
proposed that more companies be encouraged to enter the marine and aquaculture
segment, particularly in the fish, seaweed and algae sub-segments.
18. Agriculture: Focus will also be on producing high end crop, seeds and tissue
culture. The state can also encourage development of contract planting. In animal,
the use of assisted reproductive techniques and the production of animal feed and
vaccines should continue thereby improving productivity in the livestock segment.
In addition, the way forward is to develop multiplier farms to ensure the
continuous supply of selected animals from nucleus farms to commercial farms. In
addition there has to be use of biotechnology techniques such as effective
microbes, growth regulators to assist better productivity. The Northern Corridor
Investment Authority (NCIA) and the Veterinary Department plan develop a 1000
acre site in Pondok Tanjung, Selama as an integrated animal industry centre
including the application of artificial insemination and the production of animal
vaccines.
19. Agriculture based Industrial and Green Biotechnology: Accelerate
development of technology for effective implementation of green chemistry
initiatives. Perak can take advantage of its bamboo and palm oil for continuous
production of biomass and biofuel. Some of the key barriers to the development of
the industrial biotechnology sector are the lack of know-how and experience in the
scaling-up process, limited production capacity and efficiency of infrastructure
and the high costs of setting up commercial scale facilities. As part of the
initiative to support the development of industrial biotechnology sector, the set up
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of shared facilities for outsourcing services is equally critical given the amount of
investment required to set up such facilities.
20. Human and Animal Healthcare: Perak may also want to position itself as a
centre for outsourcing and clinical research, with some logistical expertise. In this
field, Perak needs to leverage on the Pharmaceutical Park in Seri Iskandar and the
planned Biotechnology Park in Ipoh to develop CMO and CRO in healthcare. At
the same time there is a need to find a niche in production such as the production
of production tool, diagnostic equipment and research tools. There is also a need
to leverage on existing and future centres of excellence to develop the necessary
experience, knowledge and infrastructure are present to support the CROs. In
order to effectively implement the specific actions identified to develop the
various segments, it is proposed that a public-private partnership (PPP) model be
adopted through strategic partnerships and collaborations. It is important in this
field to attract foreign direct investment into Perak and this has to be done through
aggressive and clever positioning of Perak as a preferred destination in health care
biotechnology.
Thrust 3: Formation of Specialised Facilities
21. The formation of specialised services may consist of the following activities:
Figure
16:
Formation
of
Specialised
Facilities
22. Support Across Value Chain
33

34. Private
and
Confidential
–
Limited
Circulation
(WTI
Consulting
29.10.2010)
a. For the production of raw materials and finish products, the State may
encourage the formation of support services within the value chain such as
specialist transport systems which cater for specialist products such as
insulated containers, fast, punctual and safe delivery of products to nearby
airports, ports and Ipoh Inland Port. The state may also encourage the
formation of specialised storage facilities at the relevant sites to be shared
between small biotechnology industry players. This will reduce cost and at
the same time increased investor’s confidence.
23. Advisory Centre
a. Perak Bio may also facilitate the formation of advisory centres providing
legal, intellectual property, commercialisation and international advisory
services. Perak may take the lead in providing support to biotechnology
industry through the design, set up and manage the proposed Advisory
Centre for Biotechnology Law, Regulations and Commercialisation. The
Advisory Centre aims to assist in building a successful and flourishing
bioscience base in Malaysia by providing stakeholders such as investors
and inventors who are involved in research and development and
commercialisation of biotechnology products and services with a one-stop
shop for legal and regulatory advice.
b. It is recognised that researchers at universities and people in small
business often have bright ideas about new or improved products, services
or processes. Research has shown that innovation, when properly
managed, can produce a higher rate of return than many other forms of
investment. There are several key issues faced by people who are involved
bioscience businesses, especially during the development stage such as:
i. How to define and protect intellectual property;
ii. Identifying the right staff for growth plans; recruiting them and
keeping them;
iii. Access to finance sources that understand the long product
development lead time to commercially beneficial production;
iv. Identification and contracting of appropriate premises and
facilities;
v. Successful generation of revenue creating opportunities during
early stages of business operation; and
vi. Clear definition of market potential and route to market.
c. It is also recognised that only a very small number of inventions make
money in the marketplace. At the same time significant regulatory
impediments often exist to the introduction of new products. Depending on
34