Facilitating Green & Innovative SMEs’ Market Access

8 May 2012

EU-Asia Biomass Best Practices &

Business Partnering Conference 2012

Putra World Trade Center, Kuala Lumpur

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SME Corp Malaysia is the focal point of reference for information and advisory services for all SMEs in Malaysia.

To formulate overall policies and strategies for SMEs and to coordinate programs across all related Ministries and Agencies.

SME CORP MALAYSIA

3 Strategic Thrusts

Strengthening the Enabling Infrastructure

Building the Capacity and the Capability of

Domestic SMEs

Enhancing Access to Financing by SMEs

SME Corp Development Programs • 1-InnoCERT • Business Accelerator

Program (BAP) • Enrichment &

Enhancement Program (E2)

• SCORE • One Referral Center

(ORC) • Skills Upgrading Program • National Mark of

Malaysian Brand • Enterprise 50 Award

Program • SME Expert Advisory

Program • Business Linkage Program • SME@University Program • SME-University

Internship Program

Profile of

SMEs in

Malaysia

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SMES ARE THE BACKBONE OF THE ECONOMY

Important domestic source of growth

Foundation & support in supply chain through forward & backward linkages

Balanced growth

Strengthen resilience of the nation's economy

Provide support for growth of new & existing sectors

Promote private sector-led growth

Source: Census of Establishments & Enterprises 2005 4

99% Total

Establishments

32% GDP

19% Exports

59% Employment

Services

(86.6 %)

Agriculture

(6.2 %)

Manufacturing

(7.2 %)

Source: Census of Establishments & Enterprises 2005

Wholesale & Retail (55.5%)

Restaurant & Hotel (15.2%)

Transport & Communication (6.5%)

Plantation and horticulture (65.6%)

Fishery & aquaculture (20.8%)

Poultry farming (7%)

Textiles & Apparels (23.4%)

Food & Beverages (15%)

Metal & metal products (13%)

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CURRENTLY, SMES ARE MAINLY IN SERVICES SECTOR

6

The highest no. of SMEs are situated

in Klang Valley

DISTRIBUTION OF SMES BY STATE

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RAISING THE BAR FOR SME COMPETITIVENESS…

National Mark of

Malaysian Brand

Depicts quality, excellence and

distinction of product and services by

Malaysian companies

Participating companies evaluated

through stringent standards to ensure adherence to the set

quality standards.

SCORE

A diagnostic tool used to rate and enhance competitiveness of

SMEs based on performance and

capabilities

Enterprise 50

Recognizes the achievements of Malaysia’s SMEs.

50 winners are selected from:

1-InnoCERT

Certification program used to recognize and certify

innovative SMEs

To encourage entrepreneurs to venture into high technology and

innovation driven industries

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1-INNOCERT

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Innovation Certification for Enterprise

Rating and Transformation

NATIONAL INNOVATION AGENDA

NATIONAL INNOVATION COUNCIL

JTPIN

Market

Innovation Led

Economy

Human Capital

Funding

SME & Techno- preneur

Institution

Technology

Adopted from Korean’s

CERTIFICATION FOR INNOBIZ.

Passing mark of 700 and above

out of 1000 points considered innovative SMEs

• To identify and certify innovative SMEs and enterprises in Malaysia

Mission

• To foster and support innovative SMEs and enterprises to be global innovative competitive players

Objective

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THE KOREAN SUCCESS STORY

Higher Operating Margin

( 4.9 times)

More Jobs Creation

( 2.9 times) Higher R&D

Investment (3.5 times)

Higher Added Value

(4.9 times)

Higher Growth

(6.9 times)

0

200

400

600

800

1000

1200

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

GDP (USD Billions)

Malaysia

Korea

Singapore

Taiwan

Source : IMF, April 2009

Law Promotion of SME Innovation (2001): More than 15,000 Korean SMEs have received Innobiz certification (2001-2011) 1. Manufacturing 2. Services/Non-Mfg 3. Agriculture 4. Construction 5. Environment 6. Biotech 7. Software 8. Design

Impact to GDP after Financial Crisis -

46% of Korea’s GDP is contributed by SMEs

Law Promotion of High-Tech Start-Ups (Venture Business) (1998)

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1-INNOCERT CRITERIA

Note: Based on 1-InnoCert Criteria

0

5

10

15

20

25

30

35

2012 2011 2010

10 9 6

17 21

33

16

8

27

No

. of

com

pan

ies

1-InnoCERT Rating by Year

1-INNOCERT

1-INNOCERT WITH TECHNOLOGY INNOVATION RATING

(Valid For 2 Years)

SCORES 1-InnoCERT RATING

Over 900-1,000 AAA

Over 800-899 AA

Over 700-799 A

Over 600-699 BBB

1-InnoCERT Companies by Sector

6 companies, 5%

12 companies, 10%

1 company, 1%

7 companies, 6%

49 companies, 43%

14 companies, 12%

11 companies, 10%

15 companies, 13%

Agriculture

Biotech

Construction

Environment Renewable EnergyGreen

Manufacturing

Professional Design

Services

Software

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1-INNOCERT: BIOTECH & GREEN SECTOR

25 Companies (of total 115 Certified 1-

InnoCERT Companies) are in the Biotech &

Agro Technology, and Environment

Renewable Energy Green Sector.

0

1

2

3

4

5

6

7

8

9

2012 2011 2010

2

0

1

4

9 9

3

2

4

1-InnoCERT Certification for Biotech/Agro and Green Sector by Year

AAA AA A

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1-INNOCERT INCENTIVES

The premier award to recognise the most innovative

SME, out of six (6) sectors:

Green Technology

Biotechnology & Agro Technology

Manufacturing

Services

ICT & Software Development

Engineering & Industrial Design

SME Innovation Award

RM 200,000 for category Winner

RM 1 million for Top Prize

Winner

Government Procurement

• Fast track registration of e-procurement

• Priority for Government Offset Programme

• Consideration to be listed in the Senarai Kontrak Pusat

Financial Facility

• 2% interest rebate a year subject to maximum RM200,000 per year

• Stamp duty exemption on the loan agreement

MKD Procurement

• Priority in procurement of 100% MOF owned companies

Tax Incentives

• Single deduction on cost related to certification fees for the first time

Benefits of Green Lane Policy

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BENEFITS OF 1-INNOCERT

• MARKET ACCESS

• ACCESS TO FINANCING

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OUTCOMES FROM THE 1-INNOCERT CERTIFICATIONS

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MARKET ACCESS

GLC Contracts

• 7 Companies secured RM84 million from GLC contracts

Sime Darby Contracts

• 10 Companies awarded Contracts valued at RM63.1 million

PROTON Contracts

• 2 Companies awarded contracts valued at RM31.5 million

Business Linkages

• Business Matching Sessions conducted between BAE Systems and 24 SMEs

Business Linkages

• Business Matching Sessions conducted between Boeing and 51 SMEs

Business Linkages

• Business Matching Sessions conducted between Boeing and 28 SMEs

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ACCESS TO FINANCING

Facilitation on access to financing

• Fast Track Approval

• DFIs and CGC to expedite loan processing

• EXIM Bank

• Provision of Fast Track Loan assistance for trade facilities overseas

• SME Bank

• Approved RM3.5 million Loan to 1-InnoCERT Companies

Linkages with Banks and Venture Capitals

• Banks

• 5 Companies

• Venture Capitals

• 4 Companies

• BIOFUSION SDN BHD

• TT BIOTECHNOLOGIES SDN BHD

• RETURN 2 GREEN SDN BHD

• JQ BIOTECH SDN BHD

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SUCCESS STORIES OF GREEN & INNOVATIVE SMES

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BIOFUSION SDN BHD

WINNER OF SME INNOVATION AWARD

2011: BIOTECHNOLOGY AND AGRO

TECHNOLOGY SECTOR

BioFusion Sdn Bhd is a wholly-owned Malaysian

Company established to provide bioremediation

services via in-house developed technology using

concoction of locally isolated microbes.

BioFusion™ EFB In-situ BioRemediation

System was designed for to solve environmental

problems of palm oil mill bio-waste and converting it

to fertilizer. The system works in a complete and

compact manner in which it uses mechanical

machinery to physically break down the waste and

adds in-house developed EM (from locally derived

microbes as well as enzymatic additives) to

catalyse the fermentation which helps to speed up

the waste degradation process..

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WINNER OF SME INNOVATION AWARD 2010:

AGRICULTURE AND BIOTECHNOLOGYSECTOR

TT Biotechnologies Sdn Bhd (TTBIO) is a company that does research and development in the

biotechnology business especially in organic acids (lactic acid) and bioplastics (polylactide)

development. It was incorporated in March 7th, 2006.

TT Biotechnologies now commercializes its in-house research in the production of lactic acid

and polylactide biodegradable plastics. This novel and innovative technology is produced from

palm oil wastes and other palm resources. Due to its biodegradable nature the products

creates less pollution.

TT BIOTECHNOLOGIES SDN BHD

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Return 2 Green Sdn Bhd has invented the 100% Biodegradable and Compostable

Packaging Products made from Agricultural-waste; Sugar Cane Husks (Baggase), a

Patented process. Their other inventions in the pipe-line are Paddy-Husks, Tapioca-

Stems and Other Agricultural-Waste products !

RETURN 2 GREEN SDN BHD

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JQ Biotech Sdn Bhd manufactures and promotes bio-fertilizers that are based on metabolite

from micro-organism culture process, and organic fertilizers that involves enzymes degradation

process of organic waste, and chemical fertilizer. Its primary product offerings include Meta-OP

and Meta-zyme.

Meta-OP is a bio-fertilizer with locally isolated microorganisms designed to withstand local

ecological condition, and Meta-zyme is a foliar fertilizer designed specifically to enhance the

metabolic rate of plant cells, increasing the number of fruit bunch and size within a short period

of time.

JQ BIOTECH SDN BHD

SME Corp. Malaysia

www.smeinfo.com.my

www.smecorp.gov.my

1-300-30-6000

SME Annual Report 2010/11

Physical KL Sentral

THANK YOU

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