MALAYSIAN BIOMASS INDUSTRY ACTION PLAN 2020 Driving Smes Towards Sustainable Future
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Emerging Technology, MIGHT Driving SMEs Towards Sustainable Future MALAYSIAN BIOMASS INDUSTRY ACTION PLAN 2020 Driving SMEs Towards Sustainable Future iii MALAYSIAN BIOMASS INDUSTRY ACTION PLAN 2020 About MIGHT Malaysia Industry-Government Group for High Technology Over the years, it has become the referral centre for both (MIGHT) is an independent and non-profit organisation public and private entities seeking independent advice & driven by more than 100 members drawn from the public strategic analysis on market-driven priority technology and private sectors. The synergies arising from these research areas for investment and businesses. engagements from the basis for efforts in prospecting cutting-edge technological know-how and opportunities Looking into the future of Malaysia, MIGHT collaborates that can be nurtured into viable businesses for wealth with numerous key stakeholders in developing the eight creation. strategic areas identified by the Malaysian Foresight Institute under its purview to ensure a sustainable and As Malaysia embarked on its drive to advance its industries’ vibrant future for Malaysia – namely in Transportation, base from basis manufacturing in the 1970s into high Environmental Management, Food Security, Future Energy, technology industries in 1990s, MIGHT was launched by Medical & Healthcare, Plantation Crops and Water Security. YAB Tun Dr. Mahathir Mohamad, the fourth Prime Minister of Malaysia on 22 February 1993, to address urgent MIGHT’S KEY ROLES needs to respond to the effects of globalisation and trade liberalisation on the country’s future economic growth MIGHT have been mandated by the Malaysian government whilst accelerating the use of high technology. to execute the following: In order to integrate the role of the private sector in 1. Explore and promote the development of high national development as well as explore the idea of technology industries through strategic harnessing fostering partnerships between industry and government, and application of science and technology for nation the Science Advisor’s Office proposed the formation of building and nurturing of home-grown technology for an entity that would carry out ‘prospecting’ activities. industrial uptake. Prospecting is defined as research and harnessing of 2. Develop, implement and manage the National technologies for the creation of business opportunities. Foresight program for identification of technology priority areas for research & development and This led to the foundation of the entity named Consortium industry advancement. of Investors for Prospecting (CIP) which was backed by 3. Implement, manage and coordinate industry the Malaysian Business Council (MBC) and the National competency audit and performance evaluation of Council for Scientific Research and Development (NCSRD). research & development activities. The formation of the CIP paved the way for industry 4. Managing and operating the “Technology Depository and government to work together to promote business Agency” development anchored on science and technology. It was 5. Secretariat for the Malaysia Aerospace Council a historic milestone and MIGHT was to emerge from this 6. Secretariat for the Global Science and Innovation powerful union. Advisory Council (GSIAC) iv Driving SMEs Towards Sustainable Future ENABLING TOOLS AND PLATFORMS Tools MIGHT strives for its objectives mainly via industry- government consensus building and smart partnership between entities in the public, private and academic sectors. Within 20 years, MIGHT has changed Malaysia’s industrial landscape by ensuring a successful implementation of the country’s technology road-mapping and high technology industry strategizing. To lead the efforts, MIGHT has created the Lead Members platform in March 2009. Each of these lead members plays a key role in collaborating to develop a strategic national agenda for Malaysia. Currently, the members are: • Petronas • Sime Darby • Telekom Malaysia • Bank Pembangunan MIGHT has further developed a strong global alliances with Centres of Excellence around the world to further Malaysia’s high technology interests, including with the United States, South Korea, Germany, Australia and others. v MALAYSIAN BIOMASS INDUSTRY ACTION PLAN 2020 The Patron of MIGHT We know that innovation is critical in “ensuring prosperity and promoting both environmental and societal well-being. My Government is committed to advancing Science, Technology and Innovation and making it the driver for economic development and sustainability. This requires bold steps to build and leverage science and technology and hardness the existing strengths of our nation This will follow from developing innovative industries and leveraging on our rich biodiversity resources in particular palm oil, while at the same time making“ sure of our sustainable future. We need to generate high value economic activities by connecting our cities YAB Dato’ Sri Haji Mohd Najib bin Tun Haji Abdul Razak Prime Minister of Malaysia vi Driving SMEs Towards Sustainable Future SCIENCE ADVISOR TO THE PRIME MINISTER OF MALAYSIA Prof Emeritus Dato’ Sri Dr. Zakri Abdul Hamid While recognizing the significance of the challenges faced in Malaysia and beyond, there are indications that Malaysia is rising to the “ “ occasion. Example of sustainable practices provides an optimistic note that solution exists in transitioning to sustainable development. While the challenge remains in implementing these solutions on wider scale… vii MALAYSIAN BIOMASS INDUSTRY ACTION PLAN 2020 JOINT CHAIRMAN OF MIGHT Tan Sri Datuk Dr. Ahmad Tajuddin Ali There remain large untapped potential in the development of the green technology industry in Malaysia. The growth potential of green technology, such as conversion of renewable resources from biomass into higher value products “ “ is unlimited, with prospect and expectations to contribute significantly to the country’s transformation into a high value added economy. Entrepreneurship, financing, capacity building and technology applications provide transformative solutions moving forward. viii Driving SMEs Towards Sustainable Future PRESIDENT AND CEO OF MIGHT Mohd Yusoff Sulaiman Biomass to energy and bio-based products has been at opportunities for SMEs and entrepreneurs to participate in the forefront in Malaysia due to the current push towards biomass utilisation by high value products and align it to sustainable development, environmental awareness and the global sustainable production agenda. To complement climate change, notwithstanding the main driver being the this initiative, a biomass economic benchmarking study economic returns from this lucrative business. To realise has also been carried out to look into the potential value the potential of the industry it is truely that we focus our creation from the various biomasses in Malaysia. This effort towards the creation of high value products and Malaysian Biomass Industry Action Plan 2020 provides greening the industry. Application of technology and R&D a focus for a strategic coordinated approach and actions that is supported by the higher technology development among the key stakeholders to develop biomass for strategy is crucial to initiate market entry and use of newly energy production and production of bio-based products, developed technologies and practices. moving forward towards 2020. This Report has been developed to identify the potential of the Malaysian Towards these goals, Malaysia have put in place initiatives Biomass industry and sets out how this potential could like the 5th Fuel Policy and the National Biomass Strategy, be achieved through consensus efforts and joint actions while MIGHT itself came up with the Malaysian Biomass involving broad stakeholders from industry, government, Initiative under the Global Science and Innovation Advisory financial institutions and other relevant institutions and Council (GSIAC), chaired by the Right Honourable Prime associations. Minister. This initiative brought about the formation of MYBiomass which is now spearheading the biomass MIGHT places great importance on harnessing private- industry in converting biomass into high value chemicals. public partnership between industry and government in MIGHT also initiated working relationships back in year catalysing the growth of this biomass industry, from setting 2010 with the European Union in executing the EU-SWITCH common direction for the biomass industry, towards Asia project on biomass, which was among the first activity cohesive implementation and realisation of the targeted in addressing sustainable consumption and production goals. While the government helps to create conducive for the biomass industry in Malaysia with the objective to ecosystem for the industry to become globally competitive, enhance stakeholders awareness and driving innovation in the private sector must drive the growth of the sector, the biomass industry. directed by market needs. We hope together, we can identify market niches where our industry players can be Realising the need for the Small and Medium Enterprises developed and nurtured to become a reputable industry (SMEs) to be involved in the biomass industry, MIGHT, leader. Finally, I would like to extend my appreciation to jointly with the Biomass SP, initiated the Malaysian everyone involved in the preparation of this Malaysian Biomass Industry Action Plan, with the objectives of Biomass Industry Action Plan 2020 report and wish all in proposing actions/interventions to close the gap in the the biomass