TEAM on New Economic Model

NEW ECONOMIC MODEL AND ITS IMPACT ON ICT, BIOTECH

& GREEN INDUSTRIES

29th April 2010

Dialogue session

Professional Development

TeAM Profile

EXCO MEMBERS:President: Ms. Koh Lee ChingDeputy President I: Dato’ Dr. Rajen M.Deputy President II: En. Nazrin HassanHon. Secretary: Mr. Premesh

ChandranHon. Treasurer: Mr. Daniel

Cerventus

Community Developme

nt Think Tank & Voice for local Technopreneu

rs

Technopreneurs Association of Malaysia 2010.All Rights Reserved.


TeAM’s representation in various government committees

MAJLIS INOVASI NEGARA (NIC)

JAWATANKUASA TINDAKAN PENYELARASAN INOVASI NEGARA (JTPIN)

J/KUASA KECIL TEKNOLOGI

MOSTI

J/KUASA KECIL PEMBIAYAAN

MOF

J/KUASA KECIL SME/TEKNOPRENEUR

SMIDEC

NATIONAL IT COUNCIL (NITC)

GOVERNMENT GRANT APPROVAL COMMITTEES

MDeC Pre-Seed; MDeC MGS;

Cradle

Highlights of sections in New Economic Model that affect

ICT, Biotech & Green industries


2.2.2 Doing business in Malaysia is still too difficult

“…The country is becoming less attractive as an investment destination. Institutional structures, processes and policies also contribute to the difficulty of doing business in Malaysia. Furthermore, entrepreneurs have identified issues such as inconsistent government policies, corruption, tax regime, labour policy and inflation as the main impediments for establishing businesses in Malaysia.”


3.3 Malaysia should lead the global green revolution

"Malaysia should embrace a leadership role in green technology and become a strategic niche player in high value green industries and services that play to our competitive advantages. The commercialisation of our natural biodiversity into high-value products and services will be a major national challenge. But it is also an excellent avenue for partnership between the private and the public sectors."


5.5.5 Attracting technologically capable firms

"The focus for the government in the future should be on developing a supportive environment for innovation and risk-taking and providing firms the opportunities to develop higher valued products for new markets."


6.3.3 SRI 3: Creating a competitive domestic economy

Subsidies, price controls and a myriad of distortion-creating incentives will be phased out.

Build entrepreneurship- Revamp the seed and venture capital funds to support budding entrepreneurs- Simplify bankruptcy laws pertaining to companies and individuals to promote vibrant entrepreneurship- Provide financial and technical support for SMEs and micro businesses, to move them up the value chain


6.3.5 SRI 5: Transparent and market-friendly affirmative action

Create market friendly affirmative action- Use transparent procedures and criteria- Use affirmative action as a means to promote building of capacity and capability


6.3.6 SRI 6: Building the knowledge base and infrastructure

Create an ecosystem for entrepreneurship- Easing entry and exit of firms as well as high skilled workers- Revamp the seed and venture capital funds to support budding entrepreneurs- Simplify bankruptcy laws pertaining to companies and individuals to promote vibrant entrepreneurship- Harness Web-based expertise and industry networks


6.3.6 SRI 6: Building the knowledge base and infrastructure (continued)

Promote an environment for innovation- Improve access to specialised skills- Ensure protection of intellectual property rights- Incentivise firms to embrace technology and move up the value chain- Enforce strict adherence to global standards and benchmarks- Fostering R&D links between the institutions of higher learning and the private sector- Align R&D to national growth objectives particularly in innovative and hi-tech fields- Open access to funding to competition among researchers- Ensure public procurement supports local innovation


6.3.8 SRI 8: Ensuring sustainability of growth

Facilitate bank lending and financing for ‘green investment’- Develop banking capacity to assess credit approvals for green investment using non-collateral based criteria- Support green technology investment with greater emphasis on venture capital funds


Appendix 3: Targeted actions needed for promoting microenterprises and SMEs

Small segments: - Current situation: Need for incubation, Lack access to financing, Lack entrepreneurial skills, Poor management/marketing skills, Low networking presence, Poor ICT usage- Possible approach: Provide office space, Skills development, including financial training, Credit guarantee schemes, Schemes to help raise productivity through upgrading, Linkages and exposure to opportunities with local firms and MNCs through effective networking


Appendix 3: Targeted actions needed for promoting microenterprises and SMEs

(continued)

Medium segments:- Current situation: Need training, Need capacity building, Not fully exploiting ICT, Poor growth strategies, Lack financing, Low technology, Low networking- Possible approach: Skills training, Build inter-firm linkages, especially with large firms, to provide opportunities for market and product expansion, Encourage adoption of ICT applications, Encourage more technology, innovation and R&D


Documents

TEAM on New Economic Model