City Manager's Office
STAFF REPORT
Sister City and Friendship Committee Meeting Date: 6/27/2016 Staff Report Number: 16-003-SC
Regular Business: Discussion of Proposed Sister City Agreement with Cyberjaya
Recommendation Staff recommends that the Sister City and Friendship Committee discuss the proposed Sister Agreement with Cyberjaya, Selangor, Malaysia and direct staff as to the appropriate next steps.
Policy Issues This action is consistent with the City Council goal of further developing the Sister City and Friendship Program.
Background Bootup World is Menlo Park business, located at 68 Willow Rd, Menlo Park, CA 94025. They are a local incubator that provides space and an ecosystem for individuals and/or teams to develop innovative technology by fostering a community of creativity and collaboration for dozens of industry leading startups.
Cyberjaya was developed in 1996 as a research and development (R&D) facility, also known as an “intelligent city”. Its goal was to enticement for foreign investors and quickly, global companies like Dell, HP, DHL and Shell, started establishing a presence here. On May 17, 1997 Cyberjaya became a fully integrated city, and Malaysia's pioneer tech hub. Today it is home to 86,000 people and more than 800 companies (40 are global and regional multinationals). This town aspires to be known as the Silicon Valley of Malaysia. - http://www.cyberjayamalaysia.com
Malaysia Digital Corporation: Malaysia Digital Economy Corporation Sdn. Bhd. (MDEC) is a, government-owned agency launched in 1996 to pioneer the transformation of Malaysia’s digital economy. Its roots stemmed from Vision 2020, the plan to develop Malaysia into a fully-developed nation by 2020. MDEC pursues a digital future that unlocks significant economic, environmental, and social value within the nation. MDEC was entrusted to oversee the development of the MSC Malaysia initiative, the platform to nurture the growth of local tech companies while attracting foreign and domestic direct from global multinational companies. - http://www.mdec.my
Definitions:
Sister City Agreement: A formal, long-term agreement that involves the commitment of municipal
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org Staff Report #: 16-003-SC resources (i.e. staffing and financial) to achieve specific goals and objectives. Sister City Agreements usually involve participation in projects and/or exchanges that promote cultural awareness, joint educational opportunities, and/or trade and economic development.
Sponsor Organization: A local organization that will manage the Sister City relationship. The organization must be based within the city and be either a select committee of Council or a registered non-profit society. A department from the City can act as the Sponsor Organization
Proposals submitted by Bootup World: Bootup world has business ties with MDEC and wishes to enhance them by formalizing them in an agreement with the Cities 1. A Sister City Agreement between the City of Menlo Park and Cyberjaya, Selangor, Malaysia See Attachment A submitted by Bootup World 2. Government, Business, Economic, Social And Cultural Exchange Agreement between The City of Menlo Park and Bootup World AND Cyberjaya, Selangor, Malaysia and Malaysia Digital Corporation See Attachment B submitted by Bootup World
Analysis Bootup World proposed a Sister City Agreement between the City of Menlo Park and Cyberjaya that would have committed the City to certain program deliverables. City Staff suggested that it would be more in keeping with previous Sister City/Friendship relationships to consider separating specific program deliverables from the Sister City Agreement. Programs within a Sister City Relationship may change, based on available resources and mutual interest. Bootup World has submitted two documents to show the distinction between a Sister City Agreement and the details of a program that they as a Sponsor Organization could partner with the City of Menlo Park to develop and manage.
Impact on City Resources As the City adds additional sister city relationships it is possible that additional resources will be necessary.
Environmental Review This action is not a project under CEQA.
Public Notice Public Notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting.
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org Staff Report #: 16-003-SC
Attachments A. Menlo Park Cyberjaya Sister City Agreement B. Government, Business, Economic, Social And Cultural Exchange Agreement Proposal
Report prepared by: Meghan Revolinsky, Management Analyst, Housing and Economic Development
Reviewed by: Jim Cogan, Housing and Economic Development Manager
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.org ATTACHMENT A
Sister City Agreement
between the City of Cyberjaya, Selangor, Malaysia and the City of Menlo Park, California, United States of America
Whereas, the City of Menlo Park in the State of California, United States of America, is represented by the Honorable Mayor Rich Cline and the City of Cyberjaya, Malaysia is represented by the Honorable ______; and
Whereas, a joint interest in establishing a protocol of friendship guided by the desire to establish friendly relations and cooperation between the cities of Cyberjaya and Menlo Park, which reflects the interests and efforts of our governments to strengthen friendly relations betwee Malaysia and the United States of America; and
Whereas, friendship and cooperation between Cyberjaya and Menlo Park will contribute to the development and strengthening of relations between our two countries; to the consolidation of peace all over the world; and to the growth and improvement of humanity; and
Whereas, the mutual interests of the citizens of Cyberjaya and Menlo Park towards each other's life and culture, manifested in the representative bodies of the Cyberjaya CIty Council and the Menlo Park City Council, in the efforts of friendship and cooperation, have decided and agreed to the following;
ARTICLE 1 The Agreement is designed to determine the main spheres of cooperation and exchange between Menlo Park and Cyberjaya, within the framework of existing relations between our countries and with the purpose of enriching them and giving them a more lively and dynamic character, taking into account all of the values of life and interests of both cities, thereby increasing mutual respect and regard for the shared history, customs and ways of life.
ARTICLE 2 In order to implement the Agreement, Cyberjaya and Menlo Park will develop an appropriate program of cooperation and exchanges. Under the Program of Cooperation and Exchanges, Cyberjaya City and Menlo Park agree to implement an ongoing, substantive exchange of both information and representatives in the fields of culture, economy, education and scholarship, history, science, sports, tourism, community life and the activities of the respective City Councils and their various departments. Menlo Park and Cyberjaya City agree that these exchanges may take various forms, including bilateral meetings, celebrations, concerts and performances, exchanges of exhibitions, films, literature and other articles of culture, collaboration between educational institutions, joint research and economic projects, professional seminars, tour groups, and official delegations.
ARTICLE 3 To encourage the broadest possible participation of the citizens of Cyberjaya and Menlo Park in the activities outlined in the Agreement, each city shall endeavour to: a) Promote a positive atmosphere of cooperation and mutual understanding, encourage the participation of the broadest spectrum of the population in Sister City exchanges, and foster a free and open exchanges of ideas, values and experiences. b) Encourage free contact between groups and individuals of the two cities, within the framework of the Agreement. c) Regularly inform the citizens of their respective cities and each other about Sister City activities, and promote and exchange print and broadcast media reports on Sister City activities in both cities.
ARTICLE 4 Cyberjaya City and Menlo Park agree that, in order to implement the Agreement, each city will work with the representatives of a recognized association, commission or non-profit organization to: a) Develop and manage the proposed Programs of Cooperation and Exchanges. b) Act as official representation for their respective City Council in the facilitation of the ongoing aspects of the Sister City relationship, and periodically report to them.
ARTICLE 5 The Agreement shall come into effect after its adoption by the City Council of the City of Cyberjaya and by the City Council of the City of Menlo Park, and shall be deemed in effect on ______, 2016, and shall remain in effect thenceforth.
In confirmation thereof, we have signed this Agreement today, in two copies both being identical and equally valid.
ATTACHMENT B
GOVERNMENT, BUSINESS, ECONOMIC, SOCIAL and CULTURAL EXCHANGE AGREEMENT PROPOSAL
Between
CYBERJAYA, MALAYSIA
And
MALAYSIA DIGITAL ECONOMY CORPORATION, MALAYSIA
MENLO PARK, USA
And
BOOTUP VENTURES, MENLO PARK, USA
The City of Cyberjaya, Selangor, Malaysia and the City of Menlo Park, California, United States of America, wish to enhance the economic opportunities, understanding and friendship between their two cities as part of the sister city agreement. Menlo Park City will sponsor the following set of activities over the course of the next three years to BootUp Ventures and other third party services in Menlo Park to fulfill and deepen the relationships between the cities.
2. Student Exchange Program & Entrepreneurship Camps - Both cities will promote the relationship between local colleges and universities and will work with local organizations to develop graduate exchange programs. The target is to have batches of Menlo Park/Silicon Valley college students going over to Malaysia or Southeast Asia to study or work on internships for a brief period of time (i.e. 3 or 6 months) and vice versa from Cyberjaya to Menlo Park.
Similarly, the Multimedia Development Corporation (MDeC) in Cyberjaya works with industry partners to promote entrepreneurial and digital skillsets amongst students. With national level initiatives such as DigitalTech@Schools and Digital Maker Movement, MDeC aspires to institutionalize digital competencies in schools to prepare the younger generation for future jobs. Together with industry partners, MDEC and BootUp can run hackathons and competitions, select the best students and offer them internships, scholarships and student/teacher exchange programs, as well as participate in summer camps to learn about the Silicon Valley mindset, entrepreneurship and innovation.
During the 3-year or 36-month period of this agreement, Cyberjaya aims to send a cumulative total of 150 students and/or graduates to Menlo Park/Silicon Valley for summer camps to learn about the Silicon Valley mindset, entrepreneurship and innovation. On its part, Menlo Park aims to sponsor one third of these students and/or graduates in internship programs with technology companies operating in Menlo Park/Silicon Valley.
3. Online Education – Menlo Park will sponsor BootUp and other third parties to provide Silicon Valley standard online entrepreneurship education/courses to high school students, college students, university students as well as working professionals in Malaysia. Cyberjaya will assist in the marketing and enrollment of students and working professionals. Via a ‘Virtual Immersion’ program, the intent is to target Malaysian students and working professionals to be trained online over three years. During the 3- year or 36-month period of this agreement, Menlo Park proposes to train a cumulative total of 8,000 Cyberjaya students/working professionals through online means. These online courses will benefit the enrolled students/working professionals and technology ecosystem in Malaysia. Targets are subject to budget cycles of each party and can be extended for an additional year if necessary.
4. Trade and Commerce – Cyberjaya and Menlo Park are interested to see Malaysian technology companies set up their U.S. presence in Menlo Park/Silicon Valley and vice versa. The goal is to target 3 companies setting up their presence in year one, 5 companies in year two, and 10 companies in year three. Menlo Park may use specialized third party businesses, which will provide and commit a period of time of professional services (financial, legal, and go-to-market strategy) to assist and advice the establishment of these U.S. subsidiaries for Malaysian technology companies (numbers and tenure may vary). Similarly, in order to attract Malaysian companies to come to Menlo Park/Silicon Valley, Menlo Park and its third party provider businesses are willing to consider setting up a startup accelerator (i.e. BootUp Asia, with a free Menlo Park office in its facilities) in Cyberjaya. This accelerator will include its entrepreneurship academy service to train and develop as many technology entrepreneurs in Malaysia and Southeast Asia.
In addition to the above, both cities should collaborate to generate awareness of bilateral corporate investment opportunities. Malaysia has attracted significant foreign direct investment from Silicon Valley corporations primarily around manufacturing and offshore business process outsourcing. Various knowledge-based economic services can be provided by Cyberjaya on offshore technology design and development. Many Malaysian corporations are interested in investing in Silicon Valley. These investments range from startup equity funding to collaborating with startups on product globalization for Asian markets to product & service licensing. Menlo Park and Cyberjaya will try to formulate a strategy to regularly promote bilateral investment opportunities.
MDeC and Menlo Park and its third parties will collaborate to introduce Menlo Park and Silicon Valley-based VCs to explore investment opportunities within Cyberjaya and Malaysia. The aim is have at least 1(one) internationally renowned VC to set up an entity in Malaysia within a 3-year timeframe. At the same time, a strategic plan will be developed to funnel 15 MSC status companies for VCs in Menlo Park/Silicon Valley to explore investment opportunities in Cyberjaya and Malaysia. The target is for 5 MSC companies to be successfully introduced and engaged with VC’s within a 3-year time frame.
Additionally, Menlo Park can leverage Malaysia’s position as the ‘Gateway to ASEAN’ and use Cyberjaya to act as a ‘hub’ to identify and create market access for Menlo Park/Silicon Valley-based technology companies in the ASEAN region. It would be advantageous for Menlo Park and technology businesses located within it to establish their principal ASEAN offices in Cyberjaya. To this end, Cyberjaya, through MDeC, will conduct meetings with interested Menlo Park companies to provide them with the necessary information on the opportunities available. Menlo Park will assist with the identification of the interested companies. Targets are subject to budget cycles of each party and can be extended for an additional year if necessary.
6. Termination – This agreement may be terminated by either party on thirty (30) days advance written notice effective as of the beginning of any new year, in whole or in part when either city deems in its best interest. However, both cities should deliver and fulfill any outstanding commitments and obligations of the prior year.
7. Rules and law - The cities will execute this agreement in accordance with national, regional and local regulations, policies and existing rules applied to each city.