Global Technology Hub Blueprint INTRODUCTION

The Global Technology Hub Blueprint study was commissioned to carve out the technology strength in , to be strategically developed and to strengthen its core competency for innovative technology development within Cyberjaya. The development of specific technology focus is to consolidate key resources and distinctive capabilities of Cyberjaya, for developing new opportunities to invoke and foster innovative values in technology as a driver for the country. The study undertook benchmarking of the best technology parks and start-up ecosystems across the globe that played a pivotal role in the success of their own technology driven economies. This strategic approach brings to light a broader perspective in using global practices to work with various agencies across the ecosystem. This includes collaborative industry partnership and commercialisation in the technology value chain of Malaysia. The blueprint provides a conceptual framework to evaluate the impact of innovation and technology at a global level; to benchmark local technology integration competency and a yardstick for resources efficiency to develop a competitive edge for achieving the digital aspirations of Malaysia

No part of this document may be reproduced in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of Cyberview Sdn Bhd (CSB). This document has been compiled for the exclusive use of the Global Technology Hub committee and stakeholders and is not complete without the underlying detail analyses and the oral presentation. CSB does not assume any responsibility for the completeness and accuracy of the statements made in this document. © 2014 by Cyberview Sdn Bhd. All rights reserved. CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT FOREWORD

Yang Berbahagia Tan Sri Dr. Mohd Irwan Serigar Abdullah Treasury Secretary General Malaysia Ministry of Finance

Technology, beyond the spectrum ofeconomic development. It is an area Information Communication Technology iswhere innovation and creativity that can rapidly becoming a key resource to fosterconsolidate growth, generate new innovation and boost economic and socialemployment and create business prosperity for Malaysia. The contribution toopportunities. The role of technology has the national GDP from the digital economyglobally made a paradigm shift to become is expected to reach 17% as we movea critical enabler, a demand driver and towards year 2020. Technology is a majortaking the centre stage in some of the contributor and key driver to the nationalleading economies and enterprises today.

In the economic sense, technology have become a new form of asset class, equivalent to data or oil. The competitive advantage for many countries has shifted towards process technology which are man-made and in replacement of natural comparative advantage. That is the power and opportunities driven in this era of technology and internet

As the government puts in place many digital measures under the New Economic Model, Economic Transformation Plan, Government Transformation Plan and Digital Malaysia to place Malaysia firmly on the global digital map, we must ensure that we have a complete ecosystem that continues to progress in tandem with our national digital agenda. With this strategic injection of push to our national initiatives, it realigns our national initiatives to a leaner and stronger approach to work inclusively across all agencies. By doing so, our country will keep in pace with the much competitive global economy.

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT FOREWORD

Economic growth will be more targeted with efficient use of initiated for pushing technology and the idea of a Global resources by converting to technology-led industries in Technology Hub in Cyberjaya is timely and brings new focus sectors that Malaysia has the competitive advantage. to technology for Malaysia. Development of a Global Technology Hub into a vibrant, productive and liveable city comparable to major cities in the I would like to take this opportunity to express my world is critical in our mission to attract talent, businesses and appreciation to all Regulators, Agencies and Ministry investments to Malaysia. This investment in technology departments who contributed towards the development of this advancement will set an example for Malaysia’s very own Global Technology Hub blueprint. The successful completion Global Technology Hub to be replicated for sharing of of the study has only earmarked the beginning of our economic benefits in other urban cities to create a robust and transformation journey for fast-tracking our technology vibrant community in line with the current global environment innovation. It will not be easy and we must work inclusively to and national priorities. brace the challenges.

To develop Malaysia with a mission towards a progressive I have full confidence that the Global Technology Hub and high-income nation, we must consistently keep our sights blueprint will bring about positive changes which will benefit set on making sure we deliver and occasionally adjusting as all Malaysians. The Government and Ministry of Finance is needed to achieve it. Our past strategies of driving economic committed to ensure delivery of goals underpinned by the development needs to be consistently injected with strategic blueprint and I am personally committed. Let’s take this approaches to keep the economic development resilient and journey with a mighty stride as a nation – together for the determination drive forging. This collaborative study Malaysia.

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT EXECUTIVE SUMMARY

In 2013, Cyberview Sdn Bhd received a new mandate from The Strategic Blueprint also developed the various the Malaysian government to transform Cyberjaya into a positioning strategies for Cyberjaya as well as potential Global Technology Hub. This new hub shall not be limited to target companies to attract in each technology focus areas. ICT and at the same time accelerate Cyberjaya’s global leadership in Information Communications Technology. Cyberjaya will seek to secure, in close collaboration with all other relevant agencies, a set of key enablers to nurture an This initiative aims to create high technology jobs for attractive ecosystem for targeted investments, for instance, Malaysians and to make Cyberjaya a preferred investment talent, infrastructure, R&D institutions and platforms, hub for technology companies while reaffirming Cyberjaya's incentives and funding, networks, broadband access and existing position as a premier ICT location. liveability.

Committed to the new duties given, Cyberview’s team set The Strategic Blueprint is expected to have a significant out on a study to formulate a strategic blueprint. This impact in terms of GNI creation, job creation, development blueprint will identify common key success factors of global of new industries and industry specific ecosystems as well as technology cities to develop focus areas that will expedite technology transfer. achievement of the aspirations from the new mandate.

As part of the Strategic Blueprint, Cyberjaya will focus on drawing investments to and developing the ecosystem for 5 technology focus areas, in close collaboration with all relevant agencies :

ICT NON-ICT (consists of 5 selected sub-areas) Information Security Green Technology Creative Content Technologies Biotechnology Mobile Internet Wearable Technologies Cloud Computing Smart Grid Technology

Big Data Analytics CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Contents Page

A Context 5 A1. Technology in the national agenda 6 A2. Cyberjaya's current situation 11 A3. Technology trends that are shaping Asia Pacific 20 A4. Benchmarking of other technology hubs 25

B Key technology areas 38 B1. Overview of selected technologies 39 B2. Technology and competition overview: ICT-related technologies 42 B3. Technology and competition overview: Other technologies 53

C Positioning strategy & action plan 62

D Impact 81

E Appendix 84 E1. Benchmarking: Technology parks 85 E2. Benchmarking: Start-up hubs 98 A. CONTEXT A1. Technology in the national agenda As a first step, we analyzed relevant policy documents to gain deeper insights into technological priorities at the national level

• Malaysia's national development plans

New Economic Vision Model (NEM) documents (2009)

Economic Government Transformation Transformation Conceptual Program (ETP) Program (GTP) blueprints (2010) (2013)

9th Malaysia 10th Malaysia Digital Malaysia Operational Plan 2006-2010 Plan 2011-2015 354 Roadmap (2006) (2010) (2014) roadmaps

3rd Industrial Strategic SME Master S&T Master Sector-specific Master Plan ICT Roadmap Plan 2012-2020 Plan 2006-2020 action plans (2013) (2012) (2003) (2006)

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT By doing this, we had to reconcile the different priority areas defined in each national policy document

• Development plans focus areas

> Re-energising the private sector > Transparent and market- 8 Strategic > Developing a quality workforce and friendly affirmative action Vision New Economic Reform reducing dependency on foreign > Building the knowledge base Model (NEM) labour and infrastructure Initiatives documents (2009) > Creating a competitive domestic > Enhancing the sources of (SRIs) economy growth > Strengthening the public sector > Ensuring sustainability of growth > Greater /Klang > Electronics & Electrical 12 National Valley Economic > Business Services > Oil, Gas & Energy Conceptual Transformation Key Econo- > Communication content & > Palm oil & Rubber Infrastructure blueprints Program (ETP) mic Areas (2010) > Wholesale & Retail > Education (NKEAs) > Financial Services > Agriculture > Tourism > Healthcare

> Access, Adoption, Use 3 ICT FAs 1) Operational Digital Malaysia 5 Sub-sectors > ICT services, eCommerce, ICT manufacturing, ICT trade, content & 354 Roadmap 4 Digital media roadmaps (2014) communities > Digital entrepreneur, B40, Youth, SME

Sector- Strategic > Cloud Computing > Security specific ICT Roadmap 6 ICT FAs1) > Wireless Intelligence > E-services action plans (2013) > Big Data & Analytics > Ubiquitous connectivity

1) Focus Areas

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT The national reports emphasize the need to identify specific niches where Malaysia can leverage its strengths to develop an edge

• Key findings: Vision documents & conceptual blueprints

General perspectives on Perspectives on ICT and New technology niches technology ICT-related sectors identified New Economic > Shift focus from importing foreign > Need for more incentives towards ICT > High-value green industries and services technology to encouraging homegrown companies to relocate into clusters > Renewable energies (photovoltaic, biomass- Model innovation > Need for broadband expansion to leverage using technologies), biodegradable products > Need for niche-focused development advanced infrastructure by : > Oils, cosmetics, nutraceuticals – Attracting data and processing centers > Need for a closer collaboration between > High-value added products for palm oil private sector, academia and R&D centers – Focusing on content development (mainly eGovernment, eLearning and (e.g: Mechanization, biotech seed research) > Lack of support for innovative SMEs eHealth) ETP > Shift from a low-cost to a knowledge-based > Need for latest infrastructure rollout (e.g: 4G) > Sub-segments within education and economy to avoid 'the middle-income trap' > Shift from providing infrastructure and healthcare sectors where modern > Need for a cluster development approach access to applications and content telecommunications can be applied > Need for private sector-led growth and > Need for strengthened advanced services more private-public partnerships (e.g: Creative content, payments, e- commerce)

> N/A > Need for increased availability and usage of > N/A GTP Mobile Computerized Access Devices (MCADs)

Key implications for Cyberjaya > Need to shift from previous focus on infrastructure to value-added activities such as the development of content and applications > Need for a nimble, targeted approach to identify niches where Cyberjaya has a competitive edge

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT They also spelt out the need for technology clusters in Malaysia to serve as local catalysts for commercially-oriented technologies

• Key findings: Operational roadmaps

General perspectives on Perspectives on ICT and ICT- New technology niches identified technology related sectors 9th Malaysian > Need for 'technology-oriented incubators' > Need to enhance ICT-related skills > Agriculture: Biotech, ICT applications > Need for incentives for market-oriented > Lack of linkages between local and world > Rubber: Processing, biotech (new products) Plan R&D to increase the commercialization rate class research institutions > Oil palm biomass & biofuel: Oleochemical, > Lack of S&T programs for students > Potential niche areas: Semiconductors, biotech (e.g: Nutraceutical, pharmaceutical) > Lack of industry involvement in academic microelectronics, grid computing, language > Oil & gas : Oil recovery technologies engineering, information security programs and research > Advanced materials: Photonics, polymer > Need for flexible approach towards composites, energy storage devices researchers' equity ownership in spin-off > Advanced manufacturing: Robotics, smart companies sensors, high-technology packaging > Aerospace: Small aircrafts, MRO1), NSP2) > Nanotechnology: Nanoparticles, machining, > Need for more venture capital activity > Lack of product acceptability, branding and nanostructured catalysts and membranes 10th and improvement in access to financial cross-discipline expertise Malaysian support for SMEs > Potential niche areas : Digital content Plan > Lack of incentives for knowledge transfer development, e-commerce, SSO, e- > Need for refocused corridors on key solutions, bioinformatics industry clusters attracting both competitive MNCs and SMEs

Key implications for Cyberjaya > Cyberjaya has to build a comprehensive ecosystem conducive for the transfer of knowledge from overseas MNCs to local firms 1)> Maintenance, Repair and Overhaul , 2) National Satellite ProgramInnovation efforts should be geared towards developing potential commercialization opportunities

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT A2. Cyberjaya’s current situation Cyberjaya has undergone significant development since its establishment in 1996 – It now faces a depleting land bank

. Overview of Cyberjaya land developments Cyberjaya – the nucleus of MSC Malaysia

Cyberjaya Lake Lim Kok Wing Gardens University Developments

> Spanning approximately 7,000 acres, Cyberjaya was developed with high-tech infrastructure and infostructure to Cyberview Resort encourage global corporations to set up ICT operations – ~800 & Spa companies and ~35,000 knowledge workers > Home to 6 colleges/universities and ~23,000 students > Notable features: Dedicated backup electricity supply, high speed fiber connectivity, district cooling system, carrier neutral data centers

> However, following significant developments within the township, Cyberjaya now faces depleting land bank > Cyberview will need to strategize its future development Undeveloped land Land under construction Existing buildings plans taking into account the remaining land bank available Green lung/parks Schools/universities/public services buildings

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Cyberjaya has grown steadily, with rapid growth in office occupancy and number of companies operating

Number of knowledge workers [#] Office space [m sq ft] & occupancy [%]

35,000 CAGR 70% CAGR 65% 7.1 29,979 6.9 8%

8% 3% 2011 2013 2011 2012 Knowledge workers Office space Occupancy E

Student population [#] Number of companies operating [#]

23,000 CAGR 815 CAGR 21,986 621 2% 15%

2011 2013 2011 2013 Student population Number of companies

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Over its short 18-year history, Cyberview has evolved from a landowner to becoming an active Cyber City Manager

. Cyberjaya development: Timeline

1996 2003 / 2004 2010 / 2011 Today 2020

Phase I: Phase II: Phase III: Phase IV: Establishment Growing into a Sustaining Transition to Global of an ICT hub global ICT hub competitiveness Technology Hub

Key Establishment of Growth in number of MNCs Sustaining competitiveness Aspiration to transform into a developments physical infrastructure (e.g. Dell, IBM, Ericsson), amidst aggressive rollout of new global technology hub in the (e.g. fibre optic cabling, local companies and start- cybercentres nationwide face of competition locally and in Cyberjaya dual feed power ups in Cyberjaya overseas system) Landowner Facilitator Cyber City Manager Cyberview's Develop basic Sell and lease land, Drive growth of Cyberjaya to transform it from a premier global infrastructure to construct buildings, support ICT hub into a global technology hub role enhance attractiveness MSC via Cyberjaya dev't

> Developing the local > Building ICT as an enabler > Creating global test bed for > Expanding MSC Malaysia to Multimedia ICT industry for growth new multimedia/IT encompass the whole of > Establishing 1 corridor > Rollout of MSC cyber- applications Malaysia Super (i.e. Cyberjaya) centre/city status to 14 > Aggressive rollout to 19 new > Linkage of MSC cyber-cities Corridor: > Launch of 7 flagship new qualified locations2) qualified locations to global cities Key strategic applications1) > Deeper implementation of nationwide3) thrusts 7 flagship applications > Focusing on 4 new clusters (creative multimedia, SSO, infotech, IHL4) & incubators)

1) E-goverment, MyKad, Smart School, Telehealth, R&D cluster, E-business and Technopreneur Development; 2) in KL, Perak, Johor and Melaka; 3) , Penang, Kedah, Melaka, Perak, Johor and Pahang; 4) Institutions of higher learning

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Cyberview's official vision, mission and objectives have recently been adjusted to reflect the new strategic direction for Cyberjaya . Changes to vision, mission statement & objectives

Previous As of 6 Dec 2013 "To become the preferred investment location "Leader in the development of Global Technology in the region for technology companies that Hubs." Vision harmonises the dynamics of human, environment and technology."

"To realize Cyberjaya as a premier ICT hub and "To provide the ecosystem in creating a preferred to be preferred location for ICT, Multimedia investment location for technology companies, and Services innovation and operations; and with Cyberjaya as the showcase." Mission to fulfill specific Government initiatives in statement support of the innovation economy by 2020."

"Cyberview's main objective is to ensure the Primary Objective: Elevate Cyberjaya into a development of Cyberjaya in accordance with Global Technology Hub the Government guidelines and aspirations Secondary Objective: Strengthen Cyberview’s Objectives and to also advise the Government on position to become Leader in the development of MSC/Cyberjaya development matters." Global Technology Hubs

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Cyberview needs to play different roles depending on the life-cycle stage of the technologies it wishes to promote in Cyberjaya

. Cyberview: Potential roles in technology promotion

More Technology active life-cycle stage

Emerging > Single agency currently does not exist to nurture I (Innovation) technology > Cyberview can play a galvanizing role to form Driver agency and serve as key driving force to transform Cyberjaya into a hub for the emerging technology

Early stage > Relevant agencies exist but technology cuts across II multiple (Syndication) > Roles not clearly delineated among agencies Champion > Cyberview can serve as active advocate to promote the technology among relevant agencies

Mature > Established agencies with clearly defined roles and III action plans to develop the technology (Diffusion & Facilitator > Cyberview can serve as intermediary to facilitate Substitution) discussions among stakeholders, incl. companies More looking to set up, investors and property owners passive

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT To achieve its vision, Cyberjaya must overcome certain challenges to develop a competitive edge and build up the necessary resources • Cyberjaya: Key challenges for the future Area Challenge Description/implication 1 Stiffening competition from > Liberalization of cyber-centre status to more locations nationwide has A Growing local and foreign innovation increased competition, leading to certain lost accounts for Cyberjaya Competition competition hubs > Financial incentives and relocation requirement no longer sufficient to support Cyberjaya's growth – Need to build a competitive edge > Cyberjaya also faces competition from regional science and technology parks, e.g. Biopolis in Singapore (healthcare) and Hsinchu in Taiwan (high- tech) > 1 Lack of skilled manpower Significant challenge in attracting the right talent to Cyberjaya has been a B major deterrent to high tech foreign investors looking to set-up high-value Talent especially in high technology operations Resources shortage & applications mismatch > Talent retention is also an issue with high staff poaching > Further alignment with universities required in order to ensure programs that produce the required talent and skills to meet Cyberjaya's demands 2 Lack of "soft" infrastructure > To be a complete and livable city, Cyberjaya requires investments in Lack of infra- for a "livable township" – additional infrastructure such as hospitals, mosques, and other amenities structure "Hard" infrastructure in need > Its vision of being a global technology hub also necessitates upgrades to its of upgrade existing infrastructure including wi-fi enhancements and ultra-broadband

3 Lack of funds for investments, > Meaningful seed funding is required for start-ups in new technology areas – Need to attract angel investors and venture capital Lack of and the risk of having low funding investor take-up > Developing Cyberjaya to a global technology hub also requires significant financial investments for infrastructure upgrade

> These challenges will serve as a guide for the team to develop shortlisting criteria for the technology selection phase > They will also be treated as gaps to bridge in Phase III (Strategy & Requirements)

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT These challenges were taken into account in the technology selection phase and treated as gaps to bridge

Cyberjaya: Key challenges for the future (cont'd) Area Challenge Description/implication 1 Poor link Incomplete ecosystem for > The ecosystem for high-value applied R&D is still immature – Lack of C high-value research university-industry commercial partnerships to perform research that is bet. R&D & commercially viable business Networks > Local companies do not sufficiently engage in meaningful R&D

2 Poor Lack of success in technology > Limited interaction between MNCs and local companies to allow for technology transfer knowledge transfer from MNCs to local transfer counterparts > Lack of sharing culture between MNCs and GLCs with local companies in Cyberjaya

3 Lack of support and > Poor linkages between SMEs and government agencies – Malaysian government is the largest spender on high-technology products, yet there is Inadequate opportunities for SMEs limited use of local technologies by the government SME support

1 Unclear Potential conflict of interest > Clear distinction of roles required between multiple entities governing D Cyberjaya's development, e.g. Cyberview, local state authority, Setia Haruman role among main stakeholders in and MDEC, to avoid potential conflicts definitions Cyberjaya Governance & regulation 2 Lack of Need for clarity of positioning > Need for translation of Cyberview's vision into clear actionable plans and KPIs clear vision and stakeholder buy-in > The new vision must be cascaded to all staff members via communication programmes to ensure buy-in

> These challenges will serve as a guide for the team to develop shortlisting criteria for the technology selection phase > They will also be treated as gaps to bridge in Phase III (Strategy & Requirements)

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT In addition, Cyberjaya still has considerable room for improvement in developing itself into a holistic, liveable township . Township elements: Assessment of Cyberjaya Comments    > Hard infrastructure is Physical connectivity Physical amenities Digital connectivity > Good highway access > Dual feed power supply > Slow speed of fixed mostly in place – But > Lack of public > Proper water supply and broadband network improvements needed transportation into sewerage systems > Inadequate wireless in physical & digital and within Cyberjaya > Centralised district cooling network connection system and speed connectivity to make city more attractive   > Still lagging in softer Residential property Recreational space infrastructure – Need > Prevalence of homes for Elements of a > Cyberpark to increase commercial mid-high income levels Comprehensive > lake vibrancy and improve > Lack of affordable housing > Community club township house access to healthcare & other amenities > Chicken-and-egg   Education system  problem: How to Commercial activity/ Healthcare services > Several public and attract critical mass of Entertainment private schools > No hospital within Cyberjaya > Growing number of > Several colleges and residents to entice > Lack of clinics / doctors F&B outlets universities (e.g. MMU, service providers to set > Insufficient retail LimKokWing, CUCMS) outlets, malls and up facilities? entertainment

Hard infrastructure Soft infrastructure  Good or adequate  Lacking

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT A3. Technology trends that are shaping Asia Pacific Six key drivers are shaping the landscape of technology trends in Asia Pacific

Asia Pacific key drivers of technology trends

Everything from consumers, cities, supply chains, homes, commerce and Connected intelligence enterprises will be connected through the internet, fundamentally changing how we conduct our daily lives

The digital age continues to drive a surge in data generation – The strive to gain Data to insights more granular insights from this influx of data will be a crucial competitive differentiator

The scarcity of energy and resources, fueled by strong demand in emerging Scarcity of resources markets, will drive a push for new energy management solutions

Sustained pressure to stem climate change will necessitate investments into the Climate change fields of sustainable development, renewables and green technology

Life sciences will be a prime focus of research in the coming decades and will Life science solutions provide solutions to many health and resource-based problems of the world

Future innovations will be developed and adopted first in emerging markets, as Reverse innovation opposed to being adopted first in matured markets before being trickled down to the emerging markets

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT A hyper-connected world and the increased influx of data will present new technological innovations and possibilities

Key drivers (1/3)

1 Connected intelligence 2 Data to insights

Implications Implications > Various new opportunities > Businesses evolve to exist in the onset of leverage available data to connected intelligence, for yield insights into their example: customer base and make > Trend description: – Cities: Traffic monitoring, > Trend description: more informed data-based decisions and achieve a – infrastructure – Various computing The digitalization of data competitive edge devices will be management is increasingly driven by connected together – Supply chains: Speed to internet usage growth, > Yields many new through the internet market, streamlined increased mobility, social technology opportunity areas e.g., data centers, – This will connect process media, digitalization of conventional formats and analytics services, consumers, cities, – Homes: Lighting and consulting services etc. supply chains, homes, energy management, improved technology commerce and smart meters performance > Broad based sector enterprises and – More sophisticated applications e.g., retail, – Commerce: Digital media manufacturing, banking, revolutionize the way signage, vending machines analytics today helps to we conduct our daily make sense out of the health care, public sector business – Enterprises: Connected data influx and create administration, personal workforce, automated economic value location data applications business processes etc. – Consumers: Wearables

Source: Gartner; IDC CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Strong economic growth in emerging markets will intensify the scarcity of resources and issues of climate change issues

Key drivers (2/3) 3 Scarcity of resources 4 Climate change

Implications Implications

> New innovations and > Smart urbanization needed technological paradigms in the developing world – will be needed to better balancing economic manage the scarcity of growth imperatives with > Trend description: energy and resources > Trend description: environmental sustainability – Population and economic > This would include – Increasing growth, urbanization and research and concentrations of > Commercialization of expanding middle class commercialization of green greenhouse gases have green and sustainable will increase demand for and sustainable been a main driver of technologies, renewable energy and resources technologies, energy rising temperatures energy technologies e.g., efficient technologies e.g., solar, wind, energy storage, – resulting in various Securing reliable and smart grids, recycling and smart grids etc. will need economically viable environmental new energy supply and implications to be accelerated access, promoting delivery methods e.g., bio- – > New green mobility efficient usage, demand based fuels Sustained dominant management and share of hydrocarbon concepts will be ground- formulating new energy fuels in the energy mix tested and adopted and resource paradigms and rapid economic will be on top of the growth in developing agenda nations sustain CO2 emissions

Source: RBSE Trend Compendium 2030

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Asia Pacific will become a hub for innovation while the life sciences will open the door to new technological innovations

Key drivers (3/3)

5 Life science solutions 6 Reverse innovation

Implications Implications

> The life sciences can > The traditional strategy of potentially offer novel innovating for home solutions to major markets (developed problems faced by the countries) and exporting > Trend description: world today e.g., energy > Trend description: with minor modifications scarcity, poverty, food to local market needs no – – Basic technological security, climate change A reverse innovation is longer works innovations often come etc. any innovation that is in certain cycles e.g., the adopted first in the > To win in emerging invention of the steam > Research and development developing world markets – the innovation in life sciences will spur of technology must be engine, telegraphy, – new discoveries and Traditionally, innovations local and may even later be automobile, nuclear, flow from the developed aerospace, ICT technologies in the fields exported from the of pharmaceuticals, world to the developing developing world to the – The theme of the next medicine, biotechnology world – this no longer developed world cycle will be life sciences holds true, and in fact, (agricultural, industrial, > Innovation must today – and will drive solutions medical) etc. the reverse is occuring to various health and happen in close proximity resource problems to its market base

Source: RBSE Trend Compendium 2030; "Reverse Innovation" – Vijay Govindarajan & Chris Trimble

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT A4. Benchmarking of other technology hubs Tech hubs go through several stages in their development – Global innovation hubs are holistic, set trends and are linked to other hubs

. Stages of innovation centre development

Complexity/ Developmental Maturity Uncoordinated Regional cluster Global innovation innovation program hub activities > Beginnings of central coordination by state or > Trend-setter – Model for > Spontaneous "green Science & other hubs shoots" of R&D activity – private enterprise No centralized planning > Lack of dedicated technology park > Complete eco-system – Symbiosis of start-ups, > infrastructure and end- > Well-defined area with Growth typically stems SMEs and big business from proximity to to-end eco-system dedicated infrastructure universities and other and resources (local & foreign) institutes > Proactive policy to attract > End-to-end support for talent and companies whole value chain (research to > Linkages to other hubs may not be strong commercialization) > Strong links to other hubs

Phase I Phase II Phase III Phase IV Age (Phase I may be skipped if development is heavily state-led) Infrastructure development Completeness of innovation eco-system

Source: "Understanding Research, Science & Technology Park – Global Best Practices" – National Academies Press CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT There is no single path to success for innovation hubs – Whatever the model, there needs to be active enterprise champions

. Alternative innovation hub models

Comments Enterprise-led State-driven > Paths of successful hubs vary Role of government widely – No single recipe for success I II III Model Government-led Organic growth Mixed approach innovation > Models involve varying degrees of involvement from Description> Hub organically forms > Broad category with > Construction of over time due to varying combinations of infrastructure results the state, academia and the naturally conducive involvement from state, from deliberate private sector environment academia and private government planning > E.g. around research sector > State-sponsored institutes that attract an > State involved in some research programs form > Whatever the model, each entrepreneurial aspects, but not the key the main organizational hub invariably involves community driving force kernel participation of large > No active push by > Incentives proactively enterprises as hub champions Example government initially used to attract talent s San Diego London's Tech city Dhahran Techno- > Champions serve critical roles Valley e.g. provide capital and talent, offer inter-regional and – national connections, help Enterprise champions bridge commercialization gap Qualcomm Google

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT For an innovation hub to be successful, it also needs to create a conducive ecosystem for the entire span of the tech value chain

. Innovation hub value chain

Commercialization Research Development Operations Early Late stage stage (pre- (market market) entry)

Early-stage Advanced, Technology Prototype Prototype Market Sales & Product basic focussed development development production launch marketing refinement research research

An effective innovation hub needs to:- ✓ + Enable efficient access to capital and expertise ✓ + Ensure strong intellectual property protection ✓ + Establish a self-sustaining eco-system to support advanced R&D ✓ + Attract world-class business and scientific talent, and leverage local talent pool ✓ + Build a leading business and regulatory environment supportive of new ventures ✓ + Generate external market demand

Source: 2013 Global Innovation Index Report (INSEAD, WIPO,) CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT We identified 6 leading science & technology parks around the world to draw insights and distill key success factors

. Shortlisted science & technology parks

2 Sophia Shortlisting Antipolis1) Europe (>125 criteria parks) > Degree of "self- U.S. (>150 parks) 4 Daedok contained"- Innopol ness (hard & is Japan soft China 3 Cambridge (>100 parks) infrastructure) Science (>100 parks) > Sectoral focus Park 1 Research & niche Triangle technologies Park 1) 6 Zhangjian > Perceived g Hi-Tech standing Park among other tech parks in the world

> Geographic Cyberjaya diversity

5 One-North

Source: UNESCO CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT 2 A benchmarking study was conducted to identify the best practices required to provide the right environment to foster innovation

. Outcome of benchmarking study: Summary

Research Cambridg Zhang- Triangle Sophia- e Science Daedok One- Jiang Criteria Content Park Antipolis Park Innopolis North Park Cyberjaya

> Access to talent > Funding 1 Resources opportunities > Quality of infrastructure > Linkage between research institutes Network and industry 2 > Knowledge transfer between players > Support systems > Clarity of roles in STP Regulation & development > Clear vision for the 3 Governance STP > Incentives

Overall > Overall quality of the assessment environment

Excellent Very good Good Fair

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT We studied the background and developments in each benchmark science and technology park…

Overview of Research Triangle Park ILLUSTRATIVE EXAMPLE1)

> World's largest university-related research park, situated between UNC-Chapel Hill, Duke & N.C. State University Concept > Initially grew by attracting branches of Fortune 500 firms

> Established in 1959 > Park size: Total of 7,000 acres Key > Mixed model of growth – Govt was a key driver in characteristics initial stage but minimal federal intervention today

> Biotechnology & Life Sciences > Information Technologies Focus area(s) > Nanotechnologies > Wireless Telecommunications

Latest developments Examples of major tenants

> The Research Triangle Foundation announced it has been buying up Biotech & Life Science Information several adjacent properties for mixed-use growth and focusing on Technologies providing improved living conditions to local workers and scientists > Park management wants to focus on making park more attractive to smaller entrepreneurial firms

1) Other benchmark slides are included in the Appendix

Source: RTP Concise Public Master Plan

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT … and assessed their strengths and weaknesses according to the benchmarking criteria

Assessment of Research Triangle Park ILLUSTRATIVE EXAMPLE1)

Resources Talent > Steady flow of talented graduates from the 3 funding universities

> Conference center, high-quality broadband, recreational activities Infrastructure > A new regional tram system to be built, and new housing and residential spaces > 5 incubators available on-site, providing services and advice Funding > Numerous venture capital firms implanted > Presence of organization offering research financing support (e.g: Biotechnology Center)

> Numerous invention disclosures and licence agreements with university departments Network Linkage between research institutes and industry > Public-private partnerships remain very common in the park's activities, especially with universities > Efforts made to introduce multi-use, cooperative spaces and shared amenities designed to Knowledge transfer foster collaboration and unity > Networking events organized to foster open exchange of ideas (e.g: Get connected @ RTP) > Host several iconic organizations and networks (e,g: IUPAC, the Hamner, the William Support systems Burroughs Welcome Fund, or Sigma Xi) to help recently created companies

> Stable management by The Research Triangle Foundation of North Carolina, a non-profit Regulation Clarity of roles & objectives for STP development organization & Governance > Clear vision mapped out in the Master Plan 2011 Clear vision > However, lack of measurable objectives in the Master plan

> No funding for potential tenants / specific grants for locating within the boundaries of RTP Clear incentives > Incentives to be found through state and regional agencies, especially for specific industries, such as digital media and biotechnology 1) Other benchmark slides are included in the Appendix

Source: RTP Concise Public Master Plan

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT We identified that multiple factors can contribute to the success of different STPs around the globe

. Key Success Factors

The close collaboration of industry, academia and government to Public-Private Partnerships invest in science parks and create co-development programs

Presence of committed champions Key leader/advocate of science park can foster the park's (leaders) innovation capabilities and technology knowledge

Official and unofficial networks can improve knowledge circulation Existing networks & communities and support growth of innovative ideas

Proximity of R&D institutes and a high Essential value chain components for higher-end R&D collaboration of research resources

Encouraging collaboration and use of shared spaces is key to retain Focus on knowledge transfer value-added activities within the park

Management organized with clear roles and a strong vision of the Excellent park management direction the park should follow for its expansion

Liveable city Improvement of the quality of life offered for workers is key to attracting and retaining talent

Source: Team analysis

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT We also selected 7 leading start-up city hubs across different regions to learn how each one nurtured its own start-up community

. Top 20 start-up ecosystems, 20121)

Talent index2)

24 Selected start-up ecosystems for Silicon Valley benchmarking: Los Angeles 20 Tel Aviv #2: Tel Aviv (Middle East) Seattle #3: Los Angeles (North America) Vancouver 16 #7: London (Europe) London #12: Sydney (Australia) Boston #13: Sao Paulo (South America) 12 Sydney Singapore #17: Singapore (Asia) Moscow New York City #19: Bangalore (Asia) 8 Melbourne Chicago Toronto

Berlin Waterloo 4 Paris Santiago Sao Paulo Bangalore 0 Support Index3) 0 2 4 6 8 10 12 14 16 18 20 22

North America Middle East Europe Australia South America Asia

1) Bubble size indicates ranking of each city, where Silicon Valley ranks as 1st and Santiago as 20th; 2) Talent index measures the skills of the start-up founders in each start-up ecosystem, taking into account age, education, startup experience, etc; 3) Support index measures the quality of the startup ecosystem support network

Source: Startup Ecosystem Report 2012 (Startup Genome) CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT The selected start-up hubs were benchmarked from four different angles – Funding, talent, support and trendsetting

. Benchmarking criteria

Funding Measures how active and how comprehensive the risk capital is in a startup index ecosystem

Measures how talented the founders in a given startup ecosystem are, taking into Talent account age, education, startup experience, industry domain expertise, ability to index mitigate risk and previous startup success rate

Measures the quality of the startup ecosystem’s support network, including the Support prevalence of mentorship, service providers and types of funding sources index

Measures how quickly a startup ecosystem adopts new technologies, Trendsetting management processes, and business models, where startup ecosystems that index stay on the cutting edge are expected to perform better over time

Source: Startup Ecosystem Report 2012 (Startup Genome)

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT We assessed and profiled each benchmark start-up ecosystem

Los Angeles Start-up Ecosystem ILLUSTRATIVE EXAMPLE1)

Overview Index scoring Funding Index Funding > No funding gap – Healthy mix of capital 20 sources 15 14 > Prevalence of early-stage funds (Lowercase 10 Capital, Karlin Ventures, SV Angel, Plus Capital, 5 and Double M Capital) Trendsetter 0 Talent index Index Talent > Large supply of technology-qualified talent from L.A.'s local universities 19 > Talent is honed via entrepreneurship programs in universities in partnership with local Support accelerators index > Description > Ranked 3rd in global start-ups ranking, Support Exemplary accelerator and incubator with approximately 800 start-ups infrastructure – Influx since 2011 has provided 17 educational, collaborative and supportive > USD500 million raised in funding in H1 environments for entrepreneurs and start-ups 2013

Notable > e-Commerce Trend- > Strong in creative content creation, particularly start-ups > Digital media setting in entertainment, aerospace, fashion, and > Crowdsourcing advertising > Online apps 10 > Quick to adopt new technology (e.g. programming languages like Python and Ruby) 1) Other benchmark slides are included in the Appendix

Source: Startup Ecosystem Report 2012 (Startup Genome); LA Startup Ecosystem 2013 (Be Great Partners)

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT We found that several key factors contribute to the success of start-up cities around the world . Key success factors

Talent pool with entrepreneurial culture 1 Pool of highly skilled talent with entrepreneurial mindset

Strong support network and communities Active accelerators and incubators to provide mentorship and 2 networking support to entrepreneurs and start-ups

Regulatory incentives Government grants to facilitate startups and incentives to 3 (applies to a nascent start-up city) promote angel investments

Ease of doing business environment, including supportive legislation Conducive business environment for starting new businesses and new funding structures, as well as 4 minimal bureaucracy Vibrant city with complete infrastructure and Holistic and dynamic city and living environment to attract the 5 ecosystem best global talent as well as diversity of talent

Availability of funding Availability of angel and venture capital funding to provide the 6 seed capital for start-ups

Established technology sector or niche Established technology sector or niche provides strong base of 7 technology talent and entrepreneurial spin-offs

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT B. KEY TECHNOLOGY AREAS B1. Overview of selected technologies The Blueprint concluded with the selection of 5 carefully selected technology areas

. Selection approach

Focus industries Universe of Filter 1 Filter 2 Filter 3 relevant technology areas 11 + 9 159 30 15 5 NKEAs add-ons technologies technologies technologies technologies

Filter 1 Filter 2 Filter 3

Relevance and fit with Malaysia 30% Leverage of internal capabilities 30% Demand for technology 20% Relevance to national economic strategy, Availability of talent base, access to raw Size and growth, amount of VC funding, number alignment & fit with capabilities, talent and materials, local ecosystem & size of applicable of global patents resource industries Fit with CJ context / Current size 25% 25% Relevant companies 10% Market size, global R&D spend, number of local environment Number and strength of large companies in the and international players Relevance to ICT, pre-existing infrastructure and technology space globally ecosystem, barriers to building infrastructure in CJ Overall development potential 25% CJ's competitive proposition 25% Key enablers 35% Future market growth, 'spillover' effect, Existence / strength of regional competition, Number of companies in CJ and availability of commercial viability of final output competitive advantages, spillover potential talent

Breadth of application 20% Technology potential / 20% Point of differentiation 35% Number of applicable industries, importance of readiness Differentiation against local and regional industries to Malaysian economy competition Technology maturity, commercialization potential, complexity of value chain % Weightage of criteria

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT The 5 technology focus areas comprise of ICT related technologies and 4 non-ICT technologies, beyond Cyberjaya's traditional core

Focus technology areas 5 technology focus areas 5 ICT technology sub-segments

ICT technologies Information security ICT

Green technology Creative content technologies

Biotechnology Mobile internet

Other Other Wearable technologies Cloud computing technologies

Smart grid technology Big data analytics

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT The final portfolio of technologies have strong synergies with ICT core, as well as linkages with one another

. Mapping of final technology portfolio > Portfolio emphasizes key role of ICT in Cyberjaya SSO 3) > 4 new technologies are not directly ICT-related and allows Cyberjaya to diversify Cloud computing > However, linkages with ICT still exist (e.g. bioinformatics combines Infor- biotech & IT; AR2) is matio n relevant in creative secu- rity multimedia and IT Creative wearable technologies) multimedia > Balance between Cloud Fraud mature tech (e.g. data detecti Smart BDA1) on creative content) & sensors Networ Mobile k internet Mobil cutting edge (e.g. Bio- security Creative content info e apps technologies wearables) Smart Bio- AR2) grids Tech- nology Wearable technologies

Renewa ble Bio- energies fuels Green technology

MSC focus areas Directly ICT-related Not directly ICT-related 1) Big data analytics 2) Augmented reality 3) Focus is on higher-value SSO activities e.g. KPOs

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT B2. Technology and competition overview: ICT-related technologies Technology profile: ICT – Information security

Global market for info security could reach USD 93 bn in 2017

Key global companies Homegrown companies Profile: Information security

> Technologies aimed at protecting integrity & safety of information 5 > Strongly supported by MOSTI (e.g. named as a system resources & activities, and defending against unauthorized access focus area for the country in ICT, creation of 4 Description > With IT systems' thorough infusion into government organizations, busi- Internal CyberSecurity Malaysia in 2007) ness and infrastructure, security has risen to the forefront of concerns capabilities 3 > Existing programs to supply talent (e.g. UTM, MMU) in Malaysia 2 > Establishment of MyCC Scheme 1) > Access Control Systems > Authentication & authorization 1 Sub- > Application security (e.g. > Intrusion detection & categories antivirus, secure coding) prevention 5 > Strong fit – Concentration of data centres and highly relevant to ICT activities 4 > IMPACT is headquartered in Cyberjaya, and > Growing interest, as seen with recent deal activities (e.g. Q1 Labs by IBM, Fit with 3 MOSTI also plans to site its CyberSecurity HQ SonicWALL by Dell, or nCircle by Tripwire in 2013) Cyberjaya > CIS, Centre for Information Security (Center of > Healthy growth driven by the increasing complexity & volume of 2 Excellence) is housed by the FIST2) in MMU targeted attacks, and the necessity of companies to address regulatory issues 1 Size & Global sales revenue for information security market [USD bn], 2012 – 2016E 5 > Currently no specific hub in Malaysia > Existing regional competition – S'pore with 4 potential CAGR: +8.5% Competitive attractive incentives under Infocomm 86 93 value 3 Roadmap, or Ochang Park (Korea) 62 67 > Data centres & IMPACT can serve as test-beds proposition 2 for commercial applications 2012 2013 2016 2017 1 Source: Gartner 5 > Info security solutions already being Financial Comms content & 4 commercialized Services infra Technology > Strong demand growth benefiting from growth Applicable Electronics Defence & potential & 3 of e-commerce, big data and the increasing &Electrical Security number of personal devices sectors readiness 2 Business Services 1

National Key Economic Area (NKEA) Additional sectors proposed by RB 5 Excellent 4 Very good 3 Good 2 Fair 1 Poor 1) M'sian Common Criteria Evaluation & Certification, 2) Faculty for Information Science & Technology CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Source: Gartner Regional competition: ICT – Information security S'pore becoming a hub for business IT security – Northern Asian countries already have well-developed cyber-security sectors

. Information security: Level of regional activity

Singapore South Korea > Core area of IDA's National Cyber > Recognized expertise in the field Security Masterplan 2018 (e.g. of data security and recovery scholarships for information (e.g. Myung Information security students, creation of Technologies) AISP1)) > Technavio expects the cyber South Korea > Several cyber security centers security market in Korea to post Japan (e.g: FireEye, KPMG) a CAGR of 21% during the period China > MOUs inked with Japan and 2013-2018 due to rising security South Korea to collaborate in threats cyber security matters > Highly-skilled workforce available Taiwan

India Myanmar Laos

Thailand Philippines Vietnam Cambodia Japan China > Japan aims to double the size of > Cyber security market revenues its domestic information security up to USD 4.9 bn in 2012, and Brunei market by 2020 as part of its could double by 2017 (Source: Malaysia national cyber-security strategy ABI Research) Singapore (Source: NISC) > Financial Incentives for R&D 2) > NISC aims to improve the investments in the information Aspiring technology hub Indonesia overall level of information security industry offered by the security in Japan (e.g. set to sign a Chinese Ministry of Commerce cyber-security agreement with (MOFCOM) Intensity of regional competition: Moderate the European Union) > Growing pool of local companies (e.g. CIST3)) > China, S. Korea & Japan already have advanced information security industries > Within SEA, Singapore fast establishing itself as a regional hub for business information security

Extremely high Moderate Low High competition 1) Association for Information Security Professionals 2) National Information Security competition competition competition Centre 3) China Information Security Technology CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Technology profile: ICT – Creative content technologies

Creative content technologies relate to the development and production of multimedia content Key global companies Homegrown companies Profile: Creative content technologies

> Refers to all technologies related to the development & production of 5 > Strong national support: FINAS1) (agency multimedia content responsible of developing the film industry), 4 Description > Includes both conventional technology (e.g. 3D animation; interactive Internal "Film in Malaysia Incentive" (FIMI) and the media) and more avant-garde areas like virtual & augmented reality capabilities 3 Creative Industry Development Fund > MSC Malaysia already focuses on creative in Malaysia 2 content development, and set up the CMC2) > Animated content production > Multimedia gaming (e.g. 1 Sub- > Augmented Reality (AR) alternate reality gaming) categories > Virtual Reality (VR) > Interactive media 5 > Strong synergies between ICT and AR/VR (e.g : in e-learning field) 4 > Talent available (e.g. MMU, Limkokwing) > Increased interest in AR/VR start-ups companies globally (e.g. acquisition Fit with 3 > Existing production facilities and animation of Oculus Rift by Facebook for USD 2 bn) Cyberjaya companies (e.g. Giggle Garage, or KRU, co- 2 producer of the 3D animated comedy Ribbit) Global sales revenue for Video Games and Filmed Entertainment [USD bn], 2012 – 17e 1 Size & Video games Filmed entertainment 5 > Currently no specific designated hubs or zones CAGR: +3.7% in Malaysia CAGR: +6.5% 4 potential Competitive > Competition with Mediapolis in One-North 89 106 63 87 value 3 Singapore – Already attracted Lucasfilm > Can benefit from the close collaboration of proposition 2 digital content industry and MSC 2012 2017 2012 2017 1 Source: PwC Global Media Report Comms 5 > Technology already developed and widely Tourism content & Automotive 4 commercialized (e.g. apps, location-based infra Technology services, Google Glass) Electronics 3 > Strong potential for new applications of AR/VR Applicable Healthcare Shipping potential & &Electrical (e.g. consumer electronics; auto) sectors readiness 2 Aviation & Defence & Education Avionics Security 1

National Key Economic Area (NKEA) Additional sectors proposed by RB 5 Excellent 4 Very good 3 Good 2 Fair 1 Poor

1) National Film Development Corporation Malaysia, 2) Creative Multimedia Cluster CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: PwC Regional competition: ICT – Creative content technologies Singapore making big push in creative content, while other countries have ready markets for content – Cyberjaya needs niche positioning

. Creative content technologies: Level of regional activity

Singapore South Korea > IDA1) initiated the Digital > Strong consumption of online Marketplace Programme to computer games (e.g. Nexus) support the content industry > KOOCA2) offer loans for co's to > Heavyweights attracted incl. finance content development LucasFilms, Walt Disney, > Global leader in 4G penetration South Korea Electronic Arts Asian HQ & LTE subscription, USD 1.7 bn Japan > Mediapolis seeks to be a plan to roll-out 5G network – China regional digital content hub attractive for new media services such as mobile movie > DigiPen, a leading institute for streaming or mobile TV gaming and animation has a campus in Singapore Taiwan

India Myanmar Laos

Thailand Philippines Vietnam Japan India Cambodia > Pioneer in mobile content > Filmed entertainment revenue is services (e.g. NTT DoCoMo) expected to expand by a CAGR Malaysia Brunei > Very attractive market: World’s of 9.9% from 2012 to 2017, and #1 country in app store revenue, video games sales by 18% for the Singapore USD 5.4 bn of mobile gaming same period (Source: PwC) sales in 2013 (Source: > Strong IT-skilled workforce to Indonesia CyberAgent Tokyo) support the digital content Aspiring technology hub > Key strengths of Japan: Well- development industry established creative content Intensity of regional competition: Moderate players (e.g. Nintendo, Sony), highly-skilled workforce > Singapore making an aggressive play in this space and attracted heavyweights > S. Korea content enjoys mass Asian appeal; India enjoys huge domestic market > Need for Cyberjaya to have niche positioning (e.g. animation production)

Extremely high Moderate Low 1) Infocomm Development Authority, 2) Korea Creative Content Agency High competition competition competition competition

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Technology profile: ICT – Mobile internet

Mobile internet usage will witness significant medium term growth Key global companies Homegrown companies Profile: Mobile internet

> Also known as Web 3.0, Mobile Internet refers to access to the Internet 5 > Limited capabilities in the design and via a cellular telephone service provider development of new mobile devices 4 Description > It involves a combination of mobile computing devices, high-speed Internal > However, capabilities exist in mobile software wireless connectivity, and applications capabilities 3 and applications development (e.g. GoodCore Software, Techno Softwares, iPluz, in Malaysia 2 etc) > Smartphones, tablets & other > High-speed mobile connectivity 1 Sub- handheld devices categories > Mobile software & applications 5 > High fit with Cyberjaya given the direct ICT 4 relevance Fit with > Require further growth in high value ICT > According to McKinsey, no. of smartphones in use grew 50% in 2012 and 3 activities including new mobile software and currently >1.1 billion people use smartphones and tablets Cyberjaya application R&D > Sales of smartphones projected to reach 1.3 bn units per year in 2013; 2 > Co's in Cyberjaya incl. GoodCore Software tablet sales expected to reach 200 m units 1 Size & Global mobile data traffic (exabytes per month), 2013 – 2018e 5 > Strong competitive value proposition given Cyberjaya's position as the nucleus of MSC 16 4 potential 11 Competitive Malaysia; however, growing competition from 7 other cyber-cities & centres nationwide 3 4 value 3 2 > Regional competition is also strong from proposition 2 Indonesia and China as mobile internet hubs 2013 2014 2015 2016 2017 2018 1 Source: Cisco 5 > Relatively low technology-specific risk given Wholesale Education 4 high level of technology maturity & retail Technology > Numerous commercial applications already in Applicable Financial potential & 3 existence service sectors readiness 2 Comms content & infra 1 National Key Economic Area (NKEA) Additional sectors proposed by RB 5 Excellent 4 Very good 3 Good 2 Fair 1 Poor

Source:McKinsey; Cisco CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Regional competition: ICT – Mobile internet

Active R&D programs have been launched on mobile networks and devices in Northern Asia – Moderate level of competition within SEA

. Mobile Internet: Level of regional activity

Singapore South Korea > One of the leading countries > Leader in 4G penetration - with 87% smartphone Science Ministry will invest USD penetration (Source: Nielsen) 1.7 bn to develop and roll-out a > IDA is driving cross-sectoral new 5G network application of innovative mobile > R&D collaboration between state services (e.g. mGov initiative institutes, telco players & South Korea drives the delivery of m-govt smartphones manufacturers Japan China services) > Influential research centers in > Chosen by Qualcomm as a Daedeok Innopolis (e.g. KAIST1), regional hub for R&D on next- ETRI2) which developed WiBro generation mobile chipsets technology3)) Taiwan

India Myanmar Laos

Thailand Philippines Vietnam Indonesia China Cambodia > Explosive growth of mobile > > 500 m web mobile users Internet due to cheap according to China Internet smartphones & data packages Network Information Center Malaysia Brunei (e.g. #2 market for mobile ads in > Leading telco equipment the world in 2013) manufacturers (e.g. Huawei, ZTE) Singapore > Heavy investments from Asian conducting heavy R&D in mobile messaging apps (e.g. LINE, internet Aspiring technology hub Indonesia WeChat), and sprouting local > Attracted global players to start-ups (e.g. Ruma) conduct R&D in the country (e.g. Microsoft in Shenzhen, Intensity of regional competition: Moderate Qualcomm in Shanghai) > Significant R&D being done on mobile networks & connectivity region-wide > Cyberjaya can either focus on innovative mobile services, or become the test-bed for next-generation networks in SEA

Extremely high Moderate Low 1) Korea Advanced Institute of Science and Technology, 2) Electronics & Telecomm. High competition Research Institute, 3) World's first high-speed mobile internet competition competition competition

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Technology profile: ICT – Cloud Computing

Cloud-based platforms will form the bulk of future IT spending Key global companies Homegrown companies Profile: Cloud computing

> Involves distributed computing over a network, where a program or 5 > One of the 6 focus areas of the Strategic ICT application may run on many connected computers at the same time 4 Roadmap Description > Relies on a group of computing hardware machines connected through a Internal > Government is promoting development of communication network (e.g. internet, intranet, LAN, WAN) capabilities 3 cloud computing to provide SMEs with critical software applications for enterprise in Malaysia 2 management > Infrastructure as a service > Platform as a service (PaaS) 1 Sub- (IaaS) > Cloud security categories > Software as a service (SaaS) > Cloud engineering 5 > Highly relevant given Cyberjaya's ICT focus > 4 SME Cloud Computing Adoption Prog incentive Fit with by MDeC to promote adoption of cloud > Gartner predicts bulk of new IT spending by 2016 will be for cloud 3 computing by local SMEs platforms, with nearly half of large enterprises using cloud by end 2017 Cyberjaya > Use of cloud by a number of large ICT co's in > In M'sia, cloud computing may contribute about RM5.0 billion of GNI 2 Cyberjaya currently, e.g. NTT, Cisco, HP and create approx. 11,500 jobs (Strategic ICT Roadmap) 1 Size & Cloud services by market segments [USD bn], 2010 – 2016E 5 > Strong competitive advantage locally given 300 Cyberjaya's focus on ICT compared to other Cloud Management and Security Services Competitive 4 potential 24 domestic technology parks 200 18 13 33 Cloud System Infrastructure Services (IaaS) 3 4 6 9 28 > Competition from Singapore and HK as cloud 24 43 48 value 3 100 11 13 20 39 31 16 35 Cloud Application Infrastructure Services (PaaS) 27 29 83 95 computing hubs – Countries with the most 34 43 53 61 71 proposition 0 Cloud Application Services (SaaS) 2 data centres in Asia Pacific region 201 201 201 201 201 201 201 Cloud Business Process Services (BPaaS) 1 0 1 2 3 4 5 6 Cloud Advertising 5 > Relatively mature technology with broad Financial Comms content & 4 applications, including application hosting, services infra Technology and network storage Applicable Electronics Aviation & potential & 3 > Leading constraints to the use of cloud include &Electrical Avionics information security, data ownership/ sectors readiness 2 Business custodian responsibility, and legal issues services 1 National Key Economic Area (NKEA) Additional sectors proposed by RB 5 Excellent 4 Very good 3 Good 2 Fair 1 Poor

Source: Garner; McKinsey CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Regional competition: ICT – Cloud Computing The cloud computing market is increasing in competition – Major global players have opened R&D labs in China, India & Singapore

. Cloud computing: Level of regional activity

India Singapore > Bangalore is a hub for > IDA3) offer financial incentives innovative cloud solutions for companies adopting cloud (e.g. 'HANA' from SAP, 'Cloud solutions, or investing in R&D Ecosystem Hub' from activities in cloud computing Infosys), fostering the Singapore South Korea development of local players Japan > Several R&D labs in cloud China (e.g. Netmagic) computing opened in > Active gov't efforts in cloud Singapore (e.g. IBM, Intalio), services (e.g. ‘MeghRaj’ and university research project1), use of Microsoft's centers (e.g. in NUS, or in platforms for Jammu & Singapore Polytechnic) Taiwan Kashmir e-govt services) India Myanmar Laos

Thailand Philippines Vietnam Japan China Cambodia > Fast adoption of cloud > Attractive market supported solutions due to excellent IT by the government (e.g. Malaysia Brunei infrastructure and Amazon partnership with broadband Beijing's municipality, IBM & Singapore > Japan should remain Asia's 21Vianet) largest cloud services market > Local players in cloud Aspiring technology hub Indonesia until 2020 (Source: Forrester) services (e.g. Alibaba, Wuxi > Growing demand for PaaS2) China) Intensity of regional competition: High solutions (e.g. Microsoft > Several R&D labs in Beijing increasing the capacity of (e.g. IBM, Microsoft, Yahoo!) > India, China and Japan have already attracted MNCs research activities due to their large and mature markets for cloud solutions Azure, IBM's new data centre > China Mobile & China Unicom for BlueMix solutions) will build 2 cloud computing > Growing pool of domestic companies offering cloud services e.g. China parks in Guizhou Province

Extremely high Moderate Low 1) India's government cloud infrastructure 2) Platform-as-a-service High competition 3) Infocomm Development Authority 4) National University of S'pore competition competition competition

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Technology profile: ICT – Big Data Analytics

The global big data market is expected to reach USD 17 bn by 2015

Key global companies Homegrown companies Profile: Big Data Analytics (BDA)

> BDA is the analysis of data sets so large and complex that it becomes 5 > BDA's applications cut across multiple NKEAs difficult to process using on-hand database management tools or 4 > BDA is one of the pillars of "Digital Malaysia" Description traditional data processing applications Internal > Events like the annual Big Data Worldshow capabilities 3 help to increase M'sia's profile as a BDA hub > Other strengths: Low electricity tariffs; existing in Malaysia 2 talent pool; presence of agencies (MDeC) > Big data infrastructure > Data sharing & transfer 1 Sub- > Capture & storage > Data analytics & visualization categories > Data search & mining 5 > Strong potential to build on established data 4 centre business in Cyberjaya Fit with > Aligned with MDeC's objective to move up > IDC predicts that the global market for big data technology and services 3 value chain toward more KPO activities will grow to USD 16.9 bn by 2015 (39% CAGR) Cyberjaya > Many existing homegrown companies e.g. > Growth of individual segments of the market varies from 27% for servers 2 Pulse Group, Web Bytes to 61% for storage 1

Global big data market [USD bn], 5 > Currently no designated BDA hub in M'sia Size & 2010-15e CAGR: +39% > Closest competitor is S'pore, which has potential 16.9 Competitive 4 announced ambitions to become a regional 9.7 12.9 3.2 4.8 6.8 value 3 BDA hub – Appointed a Chief Data Scientist > S'pore Economic Devt. Board is focusing on proposition 2 attracting data-centric companies 2010 2011 2012 2013 2014 2015 1 Servers Storage Networking Software Services 5 > Very mature – Broad commercial applications Oil, Gas & Wholesale Comms Aviation & content & Chemicals Waste mgt already exist Energy & Retail avionics 4 infra Technology > Big part of value chain already present in the Palm Oil & Defence & form of data centre activity in Cyberjaya Applicable Healthcare Biotechnology Shipping potential & 3 Rubber Healthcare Security sectors readiness 2 Electronics Consumer Public Business Automotive &Electrical services products transport 1 National Key Economic Area (NKEA) Additional sectors proposed by RB 5 Excellent 4 Very good 3 Good 2 Fair 1 Poor

Source: Desktop research; IDC CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Regional competition: ICT – Big Data Analytics Singapore and China have been actively attracting major players in BDA to locate in their country by offering attractive incentives

. Big Data Analytics (BDA): Level of regional activity

Singapore Thailand > IDA1) hired Chief Data > IBM decided to open its new Scientist Prabir Sen to lead business innovation analytics its Data Sciences Group centre in BKK last year – > Events to bring together data Serves as its SEA data hub providers and specialists (e.g. > Other strengths: educated South Korea Japan Data Innovation Challenge) workforce, well developed China > IDA collaborates with infrastructure and steady Institutes of Higher Learning growth in high-tech industry to provide academic programs and facilitate industry attachments Taiwan India Myanmar Laos

Thailand Philippines Vietnam China India Cambodia > Market generates huge > Market generates huge amount of data due to size amount of data due to size Malaysia Brunei > Leading local firms starting > Nasscomm predicts BDA mkt to include BDA into to be worth USD 1 bn by '15 Singapore corporate strategy (e.g. > Many local BDA start-ups are Aspiring technology hub Indonesia Alibaba) sprouting e.g. Bizosys, > Guizhou aggressively Crayon Data positioning itself as BDA hub Intensity of regional competition: Extremely high > China's top 3 telco carriers > Singapore making aggressive play, while Thailand has cheaper cost base building big data facilities in Guiyang, Guizhou's capital, > China and India have more massive big data potential – More attractive to co's investing > RMB 15 bn > Singapore and China (Guizhou) actively attracting big names using incentives

1) Infocomm Development Authority Extremely high Moderate Low High competition competition competition competition Source: Desktop research CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT B3. Technology and competition overview: Other technologies Technology profile: Green technology

Green technology applies environmental science to conserve the environment Key global companies Homegrown companies

Profile: Green technology

> Application of environmental science to conserve the environment and 5 > Strong focus via National Green Technology and to curb negative impacts of human involvement Policy (NGTP) in 2009 4 Description > E.g. Biofuels – fuels produced from biomass conversion; Solar Internal > Malaysian Green Technology Corporation photovoltaics - generating electrical power from solar radiation capabilities 3 (under KeTTHA) as champion > Green Technology Financing Scheme for co's in Malaysia 2 which are producers/users of green tech > Biofuels > Hybrid and electric technologies 1 Sub- > Carbon capture > Solar photovoltaics categories > Clean coal > Hydropower / wind power 5 > Cyberjaya embarked on green tech agenda in 2010 in sync with NGTP 4 Fit with > Sepang Municipal Council offers tax incentives > Clean Edge estimates the global clean-energy industry to be worth 3 for green buildings USD248 bn in 2013, and will grow to USD398 bn in 2023 Cyberjaya > Aims to be a green township – However, – Biofuel market to grow from USD98 bn in 2013 to USD146 bn by 2023 2 lacking in terms of implementation – Solar market to grow from USD91 bn in 2013 to USD158 bn by 2023 1 Size & 5 > Competition exists from other parks with Global clean energy projected size [USD bn], 2013 – 2023E green technology focus e.g. Technology Park 4 potential 98 Competitive Malaysia, Senai Hi-Tech Park and Kulim Hi-Tech Biofuels 2013 2023 146 value 3 Park Solar 91 > 158 proposition Regional competition, e.g. HK Science & Tech 248 2 Park, Singapore's CleanTech One TOTAL 398 1 Source: Clean Edge 5 > Wide breadth of commercial applications with Oil, Gas & Biotech- Shipping 4 mix of established technologies (e.g. green Energy nology Technology buildings) and emerging technologies areas Aviation & Public 3 (e.g. biofuels; solar photovoltaics) Applicable Tourism potential & avionics transport sectors readiness 2 Consumer Automotive Waste mgt products 1

National Key Economic Area (NKEA) Additional sectors proposed by RB 5 Excellent 4 Very good 3 Good 2 Fair 1 Poor

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: Plunkett Research, Clean Edge, Inc Regional competition: Green technology

Fast growing markets of China and India are investing aggressively in green tech – Japan and South Korea among market leaders . Green technology: Level of regional activity

China Japan > World's largest investor in clean > World's fastest growing clean energy ($54 bn in 2013) energy market in 2013 - ranks > Govt provides low-interest loans, 3rd in clean energy investment funds industry-wide R&D and after China and US ($28.6 bn in provides subsidies for private 2013) co's to purchase clean tech > Long history with solar – Sharp South Korea Japan > Biggest exporter of solar power has been developing solar tech China components and has one of the for >50 years biggest wind turbine manuf. > Ongoing efforts to displace industries nuclear energy has propelled nation's clean energy sector Taiwan

India Myanmar Laos

Thailand Philippines Vietnam South Korea India Cambodia

> Targets 11% renewable energy > Investing in clean technology to Brunei share in final energy keep up with demand from a Malaysia consumption by 2030 growing population Singapore > In 2013, USD600 m was invested > Within the G-20, the Indian in the solar sector, and USD100 renewables market remained Aspiring technology hub Indonesia m in wind sector the eighth largest for the second year in a row > Samsung is competing aggressively in green tech, > Ambitious clean energy target in Intensity of regional competition: Moderate growing its solar manufacturing India’s 12th five-year plan capacity from 150 MW now to 3 > China continues to invest heavily in clean energy driven by government incentives GW by 2015 > Japan is investing significantly in clean energy to diversify from nuclear > Cyberjaya may be able to position itself to compete in South East Asia

Extremely high Moderate Low High competition competition competition competition

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Technology profile: Biotechnology

Biotech uses biological systems or their derivatives to produce useful products and processes Key global companies Homegrown companies Profile: Biotechnology

> Technological application that uses biological systems, organisms, or 5 > Strong emphasis via the National Biotech derivatives thereof, to make or modify products and processes for Policy ('05) and Bioeconomy Transformation 4 Description specific use, e.g. to combat diseases, reduce carbon footprint and feed Internal Programme ('12) and dedicated agency, the world capabilities 3 BiotechCorp, to drive growth of biotech ind'y > 225 BioNexus status companies; foreign co's in Malaysia 2 present incl. Arkema, Gevo and MetEX > Genomics & genetic modif'n > Biomass 1 Sub- > Bioinformatics > Tissue culture > Bioelectricity > Bioengineering categories 5 > Not ICT related, save for bioinformatics, (develop't of methods for storing, retrieving, 4 organizing and analyzing biological data) Fit with > Ernst & Young (EY) estimates that there are 598 listed companies 3 > Lack of existing facilities for biotech (e.g. globally, with market capitalisation of USD477.3 billion as at 2012 Cyberjaya biotech laboratories; hospitals) > EY also estimates global R&D expenses of USD25.3 billion in 2012 2 > Not a focus area of study in universities 1 Total Capital Raised in North America and Europe [USD bn], 2002-2012 Size & 40 5 > Competition from Bio-Xcell, dedicated biotech park in Iskandar and other parks with biotech 4 potential 20 Competitive co's e.g. Techpark @ Enstek, Technology Park value 3 M'sia & Kulim Hi-Tech Park 0 > Regional competition from Biopolis (S'pore) proposition 2 and Hong Kong Science Park 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1 Source: EY 5 > Developed technology area with breadth of Oil, Gas & Automotiv Healthcare applications Energy e Technology 4 > Sizeable domestic markets in place to use Palm Oil & Consumer 3 outputs arising from the biotechnology Applicable Waste mgt potential & Rubber products industry e.g. use of genetic R&D for yield sectors readiness 2 improvement within palm oil and rubber Biotech- Agriculture nology 1

National Key Economic Area (NKEA) Additional sectors proposed by RB 5 Excellent 4 Very good 3 Good 2 Fair 1 Poor

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: EY Biotechnology Industry Report 2013 Regional competition: Biotechnology

Japan and China are very competitive in biotechnology due to their large markets – S'pore becoming an R&D hub for Southeast Asia

. Biotechnology: Level of regional activity

Japan China > Highly-skilled scientific > Ministry of Science & Tech- workforce, and leading local nology offers tax incentives biopharma companies (e.g. for R&D activities in Takeda, Eisai) biotechnology South Korea Japan > Companies can conduct co- > Significant research been China research programs with done in ZhangJiang Science government agencies (e.g. Park, Shanghai, with both Ministry of Health and MNCs (e.g. Roche, Pfizer), Welfare) and development contractors Taiwan > World's #2 pharma market (e.g. Hutchison MediPharma, Wuxi) India Myanmar for sales revenue, USD 111 bn Laos in 2011 (Source: IMS Health) > Attractive market due to its Thailand Philippines very large population Vietnam Cambodia Singapore Thailand

> Talent availability, world-class > Attractive tax incentives Malaysia Brunei research institutes (e.g. NUS offered by the BOI2) for Cancer Science Institute) and biotech-related activities Singapore testing facilities offered by (R&D, manufacturing), the surrounding hospitals additional ones for locating in Aspiring technology hub Indonesia attracted several influential Thailand Science Park3) R&D centers in Biopolis (e.g. > BIOTEC (a research centre Intensity of regional competition: High Abbott, GSK) under the Ministry of Science > Strong support from the gov't &Tech), active in co-research > Several leading companies have opened their Asian R&D labs in Singapore or in China, (e.g. R&D incentives, public programs (e.g. with Novartis) mainly for their skilled workforce and significant incentives offered research initiatives, funds > Thailand also making push in biotech, leveraging on its strong healthcare system 1) > High-quality hospitals, available from the EDB ) offering testing facilities for biotech co's Extremely high Moderate Low High competition competition competition competition 1) Economic Development Board, 2) Board of Investment, a government agency under the ministry of Industry, 3) Located in Rangsit, north of Bangkok CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Technology profile: Wearable technologies

The global wearables technology market is expected to grow at 25% CAGR between 2012-2018

Key global companies Homegrown companies Profile: Wearable technologies

> Wearable technology (or "fashion electronics") refers to clothing & 5 > Wearables are mentioned as one of the hot accessories incorporating computer and advanced electronic topics for development under Digital M'sia Internal 4 roadmap – However, no specific blueprint Description technologies capabilities 3 exists > Designs often incorporate practical functions and features, but may > Lack of local companies investing into also have a purely aesthetic agenda in Malaysia 2 wearable R&D > E-textiles & intelligent clothing > Digital accessories (e.g. smart 1 Sub- > Health-related devices (e.g. watches, glasses, headgear) categories activity trackers, heart monitors) > Embedded technologies 5 > Can potentially leverage on key IT companies located in Cyberjaya (e.g. HP, Dell) 4 Fit with > Higher-value add activity within ICT, fully aligned > Juniper Research identified 2014 as key year for wearable tech in terms 3 with MDeC's objectives of roll-outs and market traction – Predicts 70 m items to be sold by Cyberjaya > May require experience in electronics 2017 2 development, which Cyberjaya does not have > ABI Research is even more bullish, expecting more than 485 m wearable devices shipping by 2018 1 Global wearable technology market [USD bn], 2012-16e 5 > No designated hub for wearable tech in M'sia Size & > Penang could be potential hub given Intel's potential 40 CAGR: +25.3% Competitive 4 strong presence there 20 value 3 > Strong competition from other Asian cities (e.g. Tianjin Economic park in China, or Singapore for 0 proposition 2 healthcare-oriented wearables) 2012 2013 2014 2015 2016 2017 2018 1 Source: IHS, CBN Insights 5 > Globally recognized as a very high potential Defence & Electronics Healthcare group of technologies & Electrical Security Technology 4 > Strong demand outlook especially for health & Consumer fitness wearables (e.g. blood pressure Applicable Education potential & 3 products monitors, hearing aids) sectors readiness 2 Comms Biotech- content & infra nology 1 National Key Economic Area (NKEA) Additional sectors proposed by RB 5 Excellent 4 Very good 3 Good 2 Fair 1 Poor

Source: IHS, CBN Insights CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Regional competition: Wearable technologies

Activity on wearables is currently concentrated in more advanced countries in the northeast – Competition in SEA mainly from S'pore

. Wearable technology (WT): Level of regional activity

Singapore Japan > Poised to ride the wave with its > NTT Corp / Toray Industries will expertise in manufacturing, soon release shirts that can electronics & software monitor people’s heart rate & application take electrocardiograms > A*STAR's Exploit Technologies > Sony will push wristbands that South Korea (tech transfer arm) actively digitally record and data on daily Japan nurtures devt of homegrown WT activities China prototypes > Smaller local start-ups also > Host of global conferences e.g. entering into the fray e.g. MOFF1) Startup Asia 2014 Taiwan

India Myanmar Laos

Thailand Philippines Vietnam Cambodia Taiwan South Korea > Flagship brands like Acer, HTC > Samsung is a global WT leader not major players – Taiwan's with offerings like Samsung Gear Malaysia Brunei focus will be in parts supply and – LG also entering the fray with device assembly G-watch Singapore > That said, Google actively > Local universities and institutes investing in / buying WT patents carrying out cutting-edge Aspiring technology hub Indonesia from local tech co's e.g. Himax, research e.g. body heat to Hon Hai charge WT devices (Korean > Regular host of global WT events Advanced Institute of Science Intensity of regional competition: Moderate e.g. Wearable Technology and Technology, or KAIST) Conference 2013 > Research activity concentrated in more advanced countries in northeast Asia > Taiwan set to serve as a key WT device assembly hub for the world > Moderate competition within SEA itself, primarily from S'pore

Extremely high Moderate Low High competition 1) Wristband toy gadget equipped with acceleration sensors and gyros, that detects competition competition competition childrens’ arm movements and translates them as sounds CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Technology profile: Smart grid technology The global smart grid market is expected to be worth USD 100 bn by 2016 Key global companies Homegrown companies

Profile: Smart grid technology

> Modernized electrical grid that uses analog or digital ICT to gather and 5 > Strong fit with government's aim to reduce energy consumption and carbon footprint act on information (e.g. info about behavior of suppliers and 4 Description consumers) in an automated way to improve efficiency, reliability and Internal > Existing national projects (e.g. Melaka Smart economics of the production and distribution of electricity capabilities 3 City 2030) & local players conducting R&D (e.g. TNB collaboration with Trilliant in Selangor, in Malaysia 2 GreenTech M'sia partnership w/ GE) > Integrated communications > Variable Frquency mode of ops 1 Sub- > Sensing & measurement (e.g. > Smart power generation (match smart meters) production with demand) 5 > ICT is core technology behind smart grids categories > … 4 > Some companies with smart grid expertise Fit with located in Cyberjaya (e.g. Shell, Fujitsu, > Healthy growth due to improvements in ICT (e.g. smart sensors, intelligent 3 Mahindra Satyam) – But no R&D activities networks) and global willingness to reduce energy consumption Cyberjaya conducted here > Growing interest from VC funds and large MNCs ( e.g. Consert acquired by 2 Toshiba, Nest by Google, Cisco large investment in AMI 1)) 1 Size & Global sales revenue for smart grid [USD bn], 2010– 2016E 5 > Melaka earmarked to be a "showcase" city CAGR: +25% Europe for smart grid technology by 2030 potential + America Competitive 4 > Existing regional competition to attract R&D 100 2) 72 88 value 3 players (e.g. IES pilot project or EPGC in 44 59 Asia Singapore, State Energy Smart Grid R&D 26 33 proposition 19 25 34 45 57 71 81 2 Center in Shanghai) 2010 2011 2012 2013 2014e 2015e 2016e 1 Source: Copenhagen Cleantech Cluster; MEC Intelligence 5 > Strong demand outlook due to global efforts Oil & Gas to reduce energy consumption Technology 4 > Solutions already commercialized, used and Applicable Electronics potential & 3 providing encouraging results (e.g : in &Electrical Massachusetts, Telegestore in Italy) sectors readiness 2 Defence & Security 1 National Key Economic Area (NKEA) Additional sectors proposed by RB 5 Excellent 4 Very good 3 Good 2 Fair 1 Poor 1) Advanced Meter Infrastructure, 2) Experimental Power Grid Centre CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: Copenhagen Cleantech Cluster; MEC Intelligence Regional competition: Smart grid technology

Countries in the region are embarking on smart grid pilots for nation- wide roll-out – Cyberview can still serve as a "showcase" for M'sia

. Smart grid technologies: Level of regional activity

Singapore Thailand > EMA1) conducting Intelligent > Energy agencies launched Smart Energy System pilots in new Grid roadmap in 2011 – public housing estates in Investing USD 4bn over 16 yrs Punggol – Testing smart meters, > Smart Grid pilot in Mae Hong in-home displays, etc Son began last year and South Korea > EMA also embarked on a micro- expected to be completed by Japan grid test-bed on Pulau Ubin Dec 2015 – If successful, to be China using intermittent renewable rolled out nationwide energy > Chulalongkorn University also launching a Smart Grid pilot project in several provinces Taiwan

India Myanmar Laos

Thailand Philippines Vietnam Cambodia China India > According to State Grid > In the midst of its R-APDRP2) Corporation, 2011-15 will be programme which directs USD Malaysia Brunei dedicated to promotion of smart 10 bn over coming yrs to grid grid construction modernization – Tata Singapore > China spent more on smart grids Consultancy Services playing a than the U.S. for the first time in lead role Aspiring technology hub Indonesia 2013 – USD 4.3 bn invested > Ministry of Power shortlisted 14 accounts for ~1/3 of world total Smart Grid Pilot Projects to be > China has installed ~250 m smart implemented by state-owned Intensity of regional competition: Moderate meters nationwide distribution utilities > Many countries in region already conducting state-led pilots for smart grids > Cyberjaya can still serve as a test-bed for smart grid technology, to be rolled out on a national level once proven successful

Extremely high Moderate Low High competition 1) Energy Market Authority, 2) Restructured Accelerated Power Development and Reform competition competition competition Programme CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT C. POSITIONING STRATEGY AND ACTION PLAN Positioning strategy: ICT – Information security 6 6

Cyberjaya could position itself as a centre for regional collaboration on cybersecurity in South East Asia

Information security: Positioning strategy for Cyberjaya

SWOT analysis for Cyberjaya Cyberview's role

Strengths Weaknesses > Specific agencies already set up (e.g. MDeC, Cybersecurity Dept in MOSTI) – Cyberview to engage > Strongly supported by > No weaknesses identified at Driver agencies on CJ's focus areas & jointly develop plans MOSTI (e.g. CyberSecurity present > Cyberview to serve as intermediary to facilitate M'sia created in '07) Champion > Existing programs to supply discussion among stakeholders, incl. companies looking to set up, investors & property owners talent (e.g. UTM, MMU) Facilitator > IMPACT is headquartered in Cyberjaya; MOSTI also plans to site its CyberSecurity HQ Positioning strategies here > CIS (Centre for Information Market CJ as centre for regional collaboration within SEA on cybersecurity, Security) is housed in MMU A. leveraging presence of IMPACT and Cybersecurity HQ

Emphasize talent pool from universities like MMU that can provide ready, > Strong demand growth > Existing regional B. high-skilled labor to information security companies relocating to CJ benefiting from growth of e- competition – S'pore with commerce, big data and the attractive incentives under increasing number of Infocomm Roadmap, or Stress financial incentives from govt agencies for information security personal devices Ochang Park (Korea) C. companies located in CJ (to be worked out with MDeC, MOSTI, MIDA etc) Target companies

1 Cisco 4 FireEye 7 - 10 - 2 IBM 5 Check Point 8 - Opportunities Threats Barracuda 3 Symantec 6 Networks 9 - 1) Positioning strategy slides for all other shortlisted technologies are included in the Appendix Action plan: ICT – Information security 6 7 Related agencies such as MIMOS and IMPACT will need to be engaged during the action plan implementation

Information security: Action plan (High-level)

2014 2015 2016 2017 Strategic Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Thrust Initiatives

First contact with top 5 companies Follow-up with Approach 2nd Reassess & update shortlist of target priority companies A Relevant (Round 1) Round 1 co's technology areas & companies agencies to be (Round 2) Initiating consulted > Companies to be contacted: Cisco, IBM, > 2nd round of > (If required) > To factor in new emerging areas and contact with before Symantec, FireEye, Check Point meetings where > To be "activated" if companies companies approaching > To align with MDeC, MIDA if there are incentive packages negative replies > Roland Berger can assist in steering this companies ongoing discussions with target companies will be presented received from 1st process and discussed tier companies

Trigger discussions & align Seek Cabinet approval for Assemble and present incentive package to attract target companies B with relevant agencies proposed plans Establishing > Initiate talks with MIDA, > Sector-specific incentives may > E.g. tax benefits, research grants, discount on office rentals / land sales, training grants regulatory InvestKL require approval from Cabinet > Meet with MOSTI, KKMM, > Approval process expected to framework MDeC to discuss possibility of take ~9-12 months coming up with customized fiscal incentives C Talk to MIMOS Define strategic R&D plan Execute R&D and talent development plans > Understand MIMOS' > Set quantitative long-term program of Fostering existing platforms public investment for R&D required > MOSTI & MIDA to serve as lead agencies technology Talk to IMPACT Develop talent development > Establish collaboration with MIMOS and other relevant agencies (e.g. Cybersecurity M'sia) or industry players to make available existing technology platforms in Cyberjaya platforms programs > Stocktake to clarify > Discuss with Education Ministry & relevant activities to leverage universities to develop suitable programs 1) Positioning strategy slides for all other shortlisted technologies are included in the Appendix Positioning strategy: ICT – Creative content technologies

Cyberview should facilitate the development of the creative content industry & develop CJ as a national hub for creative industries Creative content technologies: Positioning strategy for Cyberjaya

SWOT analysis for Cyberjaya Cyberview's role

Strengths Weaknesses > The ecosystem to develop creative content already exists in Malaysia (gov't agencies providing incentives, > Strong national support: > Besides animation studios Driver universities, local companies) – Cyberview should FINAS1), which offers and mobile apps developers, encourage closer collaboration financial incentives (FIMI2)), lack of a strong industry Champion CMC3) under MSC Malaysia base (e.g. gaming industry, > Cyberview should be able to sell and advocate this creative ecosystem to attract foreign companies – one of MDeC's main focus filmed entertainment) Facilitator areas > Shortfall of talent in 2013 > Presence in Cyberjaya of (based on MDeC statistics) universities specialized in Positioning strategies this area (MMU, Limkokwing Uni.) Bring the main players of the industry (e.g. FINAS) in Cyberjaya, market it as > Established local creative A. co's in Cyberjaya (e.g. KRU the national hub for creative people where synergies are created Studios, Giggle Garage) Emphasize talent pool from universities like MMU that can provide a > Strong demand outlook for > Singapore made a strong B. creative workforce with the right mindset for companies in Cyberjaya all the sub-segments: push in creative content augmented reality, gaming and already attracted industry, etc. leading players (e.g. C. Stress financial incentives from govt agencies for creative multimedia > Increasing focus on LucasFilm, EA) companies located in CJ (to be worked out with MDeC, FINAS, etc) developing content adapted > Competition from to specific geographic areas Northern Asian markets Target companies – most global players are not due to their size & skilled very present in SEA workforce (e.g. Japan for mobile apps, India for 1 Dreamworks 4 Electronic Arts 7 (Back-up) Frog Design 10 - films) 2 Blizzard 5 Studio Ghibli 8 - Opportunities Threats (Back-up) Moving 3 Disney 6 Picture) 9 -

1) National Film Development Corporation Malaysia, agency and authority entrusted with the responsibility of developing film industry in Malaysia, 2) Film in Malaysia Incentive, 3) Creative Multimedia Cluster Action plan: ICT – Creative content technologies

A closer collaboration with MDeC should be the first step to encourage the development of the creative content industry in M'sia

Creative content technologies: Action plan (High-level)

2014 2015 2016 2017

Strategic Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Thrust Initiatives

First contact with top 5 companies Follow-up with Approach 2nd Reassess & update shortlist of target priority companies A Relevant (Round 1) Round 1 co's technology areas & companies agencies to be (Round 2) Initiating consulted > Companies to be contacted: Dreamworks, > 2nd round of > (If required) > To factor in new emerging areas and contact with before Blizzard, Disney, Electronic Arts, Studio meetings where > To be "activated" if companies companies approaching Ghibli incentive packages negative replies > Roland Berger can assist in steering this companies > To align with MDeC, MIDA if there are will be presented received from 1st process ongoing discussions with target companies and discussed tier companies

Trigger discussions & align Seek Cabinet approval for Assemble and present incentive package to attract target companies B with relevant agencies proposed plans Establishing > Initiate talks with MIDA, > Sector-specific incentives may > E.g. tax benefits, research grants, discount on office rentals / land sales, training grants regulatory InvestKL require approval from Cabinet > Meet with MOSTI, KKMM, > Approval process expected to framework MDeC to discuss possibility of take ~9-12 months coming up with customized fiscal incentives C Talk to MDeC Define strategic R&D plan Execute R&D and talent development plans > Set quantitative long-term program of > Fostering Understand current public investment for R&D required development > MDeC to serve as lead agency local content program > Establish collaboration with MAGIC and relevant agencies like MIMOS or industry players to > Determine if new Develop talent development make technology platforms available, for entrepreneurs to easily develop and market their development agencies need to be programs ideas > Discuss with Education Ministry & relevant created (following universities to develop suitable programs the model of FINAS1))

1) National Film Development Corporation Malaysia, agency and authority entrusted with the responsibility of developing film industry in Malaysia Positioning strategy: ICT – Mobile internet

Cyberjaya can be positioned as a hub for the development of mobile software and applications, leveraging on the talent pool

Mobile Internet: Positioning strategy for Cyberjaya

SWOT analysis for Cyberjaya Cyberview's role

Strengths Weaknesses > Specific agencies are already in place (e.g. MDeC, MIMOS) – Cyberview to engage agencies on CJ's focus > In line with the National ICT > Hardware aspect, i.e. Driver areas & jointly develop plans Roadmap focus area of development of mobile > Cyberview to serve as intermediary to facilitate "ubiquitous connectivity" devices is not within Champion > Supported under the Digital Cyberjaya's strengths (e.g. discussion among stakeholders, incl. companies looking to set up, investors & property owners Malaysia initiative high cost of investment, Facilitator > Complements the active need for manufacturing promotion by MIMOS of the facilities and skill sets in "Internet of Things" concept hardware development) Positioning strategies > Existing courses on software engineering offered in Market CJ as hub for development of mobile software and applications, several universities (e.g. A. UTM, UM) leveraging existing technology platforms by MIMOS Collaborate with universities, e.g. MMU & Limkokwing to highlight talent > Relatively low capital > Existing regional B. pool in software engineering in approaching mobile software companies requirement for competition in mobile development of mobile hardware development software and applications from South Korea and Stress financial incentives from govt agencies for mobile internet companies creates opportunities for China C. located in CJ (to be worked out with MDeC, MOSTI, MIDA etc) start-ups > IDA1) in S'pore is driving > Increasing use of mobile cross-sectoral application Target companies internet leads to continued of innovative mobile demand for new services (e.g. mGov applications and software initiative drives the 1 Google 4 Apple 7 - 10 - delivery of m-govt services) 2 Facebook 5 Samsung 8 - Opportunities Threats (Backup) King Digital 3 Twitter 6 Entertainm't 9 - 1) Infocomm Development Authority Action plan: ICT – Mobile internet

Strong collaboration with relevant agencies required to produce compelling positioning to attract target mobile internet companies

Mobile Internet: Action plan (High-level)

2014 2015 2016 2017 Strategic Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Thrust Initiatives

First contact with top 5 companies Follow-up with Approach 2nd Reassess & update shortlist of target priority companies A Relevant (Round 1) Round 1 co's technology areas & companies agencies to be (Round 2) Initiating consulted > Companies to be contacted: Google, > 2nd round of > (If required) > To factor in new emerging areas and contact with before Facebook, Twitter, Apple and Samsung meetings where > To be "activated" if companies companies approaching > To align with MDeC, MIDA if there are incentive packages negative replies > Roland Berger can assist in steering this companies ongoing discussions with target companies will be presented received from 1st process and discussed tier companies

Trigger discussions & align Seek Cabinet approval for Assemble and present incentive package to attract target companies B with relevant agencies proposed plans Establishing > Initiate talks with MIDA, > Sector-specific incentives may > E.g. tax benefits, research grants, discount on office rentals / land sales, training grants regulatory InvestKL require approval from Cabinet > Meet with MOSTI, KKMM, > Approval process expected to framework MDeC to discuss possibility of take ~9-12 months coming up with customized fiscal incentives C Talk to MIMOS Define strategic R&D plan Execute R&D and talent development plans > Understand MIMOS' > Set quantitative long-term program of Fostering existing platforms public investment for R&D required > MOSTI & MIDA to serve as lead agencies technology Talk to Develop talent development > Establish collaboration with MIMOS and other relevant agencies or industry players to make available existing technology platforms in Cyberjaya platforms universities programs > Identify platforms > Discuss with Education Ministry & relevant within unis e.g. universities to develop suitable programs MMU Positioning strategy: ICT – Cloud computing

Cyberjaya has a strong value proposition to attract companies in cloud computing given its position as a data center hub in Malaysia

Cloud Computing: Positioning strategy for Cyberjaya

SWOT analysis for Cyberjaya Cyberview's role

Strengths Weaknesses > Specific agencies are already in place (e.g. MDeC, MIMOS) – Cyberview to engage agencies on CJ's focus areas & > One of the focus areas of > No weaknesses identified at Driver jointly develop plans the National ICT Roadmap present > Cyberview to serve as intermediary to facilitate discussion Champion > In line with Digital among stakeholders, incl. companies looking to set up, Malaysia's Shared Cloud investors & property owners Enterprise Services project Facilitator > Ability to leverage on the MSC Cloud Computing Initiative Positioning strategies > Numerous data centers already located in Cyberjaya Market CJ as cloud computing hub, given numerous data centers located in CJ demonstrates availability of A. and lower-cost base compared to Singapore experienced talent Highlight talent pool in cloud computing stemming from universities e.g. MMU > Increasing adoption of cloud > High degree of regional B. and UTM, as well as experienced talent working in CJ computing solutions by competition including enterprises due to the Singapore (IDA offers benefits of reduced capital financial incentives for Emphasise incentives & programmes for co's involved in cloud located in CJ, outlay required companies adopting cloud C. building on the MSC M'sia Cloud Computing Initiative solutions), India (Bangalore Is hub for innovative cloud Target companies solutions) and China (government provides support for cloud via 1 Amazon 4 Google 7 - 10 - collaborations) 2 Microsoft 5 RackSpace 8 - Opportunities Threats 3 Salesforce 6 - 9 - 1) Infocomm Development Authority Action plan: ICT – Cloud computing

Cyberjaya should capitalize on cloud computing programs by other agencies e.g. MDeC & MIMOS and collaborate to attract companies

Cloud Computing: Action plan (High-level)

2014 2015 2016 2017 Strategic Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Thrust Initiatives

First contact with top 5 companies Follow-up with Approach 2nd Reassess & update shortlist of target Relevant priority companies A (Round 1) Round 1 co's technology areas & companies agencies to be (Round 2) Initiating consulted > Companies to be contacted: Amazon, > 2nd round of > (If required) > To factor in new emerging areas and contact with before Microsoft, Salesforce, Google & Rackspace meetings where > To be "activated" if companies approaching > Identify needs of companies wishing to set incentive packages negative replies > Roland Berger can assist in steering this companies up cloud computing centres in CJ and offer will be presented received from 1st process companies tailored solutions (e.g. customized buildings) and discussed tier companies

Trigger discussions & align Seek Cabinet approval for Assemble and present incentive package to attract target companies B with relevant agencies proposed plans Establishing > Initiate talks with MIDA, > Sector-specific incentives may > E.g. tax benefits, research grants, discount on office rentals / land sales, training grants regulatory InvestKL require approval from Cabinet > Meet with MOSTI, KKMM, > Approval process expected to framework MDeC to discuss possibility of take ~9-12 months coming up with customized fiscal incentives Talk to MIMOS Engage with MDeC Execute cloud technology development programmes and talent development C plans > Understand existing > Build on the current MSC Cloud Technology Fostering cloud platforms Initiative to develop Cyberjaya-specific > progs2) MDeC to serve as lead agency technology Engage MSC Cloud Tech Partners1) Develop talent progs > Establish collaboration with MIMOS and other relevant agencies or industry players (e..g. platforms the MSC M'sia Cloud Technology Partners) to make available existing technology platforms > Identify cloud platforms available > Engage MoE & unis to in Cyberjaya develop suitable progs 1) 6 partners identified by MDeC: Microsoft, Maxis, Exabytes, Skali, TM and Emerge; 2) E.g. Incubation and training programmes to encourage cloud software development by independent software vendors located in Cyberjaya Positioning strategy: ICT – Big data analytics

Cyberview has a clear value proposition to attract BDA players - it should work on incentives to accelerate big data adoption in M'sia Big data analytics: Positioning strategy for Cyberjaya

SWOT analysis for Cyberjaya Cyberview's role

Strengths Weaknesses > Specific agencies set up (e.g. MDeC, MIMOS) – Cyberview to engage these agencies & see how they can help to Driver > Can build on the established > Under-supply of big data increase CJ's attractiveness data centre activity in CJ (data scientists currently in M'sia > Cyberview should work on plans with relevant agencies to access, industry players) Champion > Pool of home-grown innovative encourage the widespread adoption of BDA, first for co's companies in Cyberjaya (e.g. in CJ and then on a national scale Pulse Group, Predictry) Facilitator > Strong support from national agencies (e.g. MDeC, Ministry of Communication and Positioning strategies Multimedia, Mampu1)) Market Cyberjaya as the most suitable hub for BDA in Malaysia given the A. prevalence of data centres

Leverage on the existing network of SMEs and innovative start-ups to position > Strong demand growth due to > Strong competition in Asia, B. CJ as a national hub for BDA innovation and development increasing amount of data both from India and China due generated and new applications to huge amount of data (e.g. marketing, branding) generated by their markets, Stress financial incentives from govt agencies towards BDA research activities & > Programs being developed to and from S'pore which is C. technology adoption (to be worked out with MDeC, MOSTI, etc.) tackle the workforce shortage heavily investing in staff issue (e.g. Pulsate plans to set training and appointed a chief up a data academy in Cyberjaya data scientist Target companies to train 3,000 specialists by 2020) 1 Oracle 4 EMC 7 - 10 -

2 Hortonworks 5 Teradata 8 - Opportunities Threats 3 Cloudera 6 - 9 -

1) Malaysian Administrative Modernization and Management Planning Unit, which announced the creation of a product development and commercialization fund in 2015 to support innovative and market-driven BDA products and services Action plan: ICT – Big data analytics 7 5

Developing BDA in Malaysia requires structural changes in the education system output, this can be driven by Cyberview & MDeC

Big data analytics (BDA): Action plan (High-level)

2014 2015 2016 2017 Strategic Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Thrust Initiatives

First contact with top 5 companies Follow-up with Approach 2nd Reassess & update shortlist of target A Relevant (Round 1) Round 1 co's priority technology areas & companies agencies to be companies Initiating consulted (Round 2) > Companies to be contacted: Oracle, Contact other > To factor in new emerging areas and contact with before Hortonworks, Cloudera, EMC, Teradata > (If required) companies BDA co's in CJ1) companies approaching > To align with MDeC, MIDA if there are > To be "activated" if > Roland Berger can assist in steering this companies ongoing discussions with target companies negative replies process > Present & discuss received from 1st incentives packages tier companies Talk to relevant agencies Seek Cabinet approval for Assemble and present incentive package to attract target companies B proposed plans > Discuss with MDeC, MCMC about Establishing possible customized incentives > Sector-specific incentives may > E.g. tax benefits for companies developing BDA solutions, training grants, rebates for regulatory require approval from Cabinet companies adopting BDA tools Talk to MDeC & industry framework > Approval process expected to > Understand & review BDA adop- take ~9-12 months tion program under "354 Roadmap" Talk to MIMOS, MDeC & Define strategic R&D plan Execute R&D and talent development plans C industry > Set quantitative long-term program of Creating the public investment for R&D required > Evaluate industry needs for technology > Set up big data academies (e.g. Pulsate's training centre) and workforce & technology Define skills training requirements university programs ecosystem programs > MDeC to serve as lead agencies > Assess MIMOS existing platforms > Engage education and industry training > Establish collaboration with MIMOS and/or other relevant > Assess MDeC's talent devlpt plans players to develop relevant programs agencies/ industry players to make available existing technology platforms in Cyberjaya 1) This applies to companies present in Cyberjaya, involved in BDA R&D activities but elsewhere, and not part of the 1st or 2nd priority companies (e.g. IBM) Positioning strategy: Green technology

Cyberjaya can position itself as a test-bed for new green technology projects; also stands to benefit from government support

Green technology: Positioning strategy for Cyberjaya

SWOT analysis for Cyberjaya Cyberview's role

Strengths Weaknesses > Cyberview needs to engage specific agencies (e.g. KeTTHA4)) and relevant industry associations (e.g. > CJ accorded pioneer green > Some sub-segments of Driver MPIA5)) to foster collaboration and develop its own city status in 2010 in sync green technology do not competitive edge with MGTP1) (sets directly fit with CJ (e.g. Champion environmental targets, such green manufacturing) > Cyberview should focus on offering testing facilities for green tech companies (e.g. renewable energies) as reducing the peak > Limited industry base Facilitator temperature) currently in CJ > Strong national support (e.g. MGTC2), tax incentives Positioning strategies for co's in green areas such as waste recycling, creation of the GTFS3) A. Market CJ as a leading hub in SEA in different green niche areas (e.g. waste > Skilled workforce available recycling, energy efficient buildings, and electric transportation) Highlight the talents and the land availability in CJ, as well as the possibility > Low competition in SEA – > Domestic competition B. of using the town as a test-bed for new green technologies opportunity to become the exists from other parks in regional leader in this area Malaysia, such as Stress financial incentives from govt agencies towards green technology > Growing demand due to Technology Park Malaysia C. global awareness – may or Kulim Hi-Tech Park companies and their adoption (to be worked out with KeTTHA ) increase further with the UN > Established competition in Climate Change Conf. in Asia in specific sub- Target companies Paris in 2015 segments (e.g. wind > Fast-growing areas of turbine & solar panels in development, such as China, bio-gas in India) 1 Veolia 4 Siemens 7 Solazyme 10 First Solar energy efficiency 2 Honeywell 5 Yingli 8 LanzaTech Opportunities Threats 3 General Electric 6 ABB 9 KiOR

1) Malaysian Green Technology Policy, created in 2009; 2) Malaysian Green Technology Corporation; 3) Green Technology Financing Scheme, provides soft loans to companies that supply and utilize green tech in their businesses; 4) Ministry of Energy, Green Technology and Water; 5) Malaysian Photovoltaic Industry Association Action plan: Green technology

To do so, the first step should be to understand industry needs, both in terms of policy incentives and infrastructure

Green technology: Action plan (High-level)

2014 2015 2016 2017 Strategic Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Thrust Initiatives

A Relevant Contact top 10 companies & follow-up discussions Reassess & update shortlist of agencies to be • Companies to be contacted: Veolia, Honeywell, GE, target technology areas & Initiating consulted Yingli Siemens, ABB, Solazyme, LanzaTech, KiOR, First companies • To factor in new emerging areas and contact with before Solar Contact other relevant co's approaching Talk to relevant development agencies or public services1) companies companies • Roland Berger can assist in steering this companies • To align with KeTTHA & MIDA if there are ongoing • Discuss possiblity of using CJ as process discussions with target companies a test-bed or national showcase Talk to relevant agencies Seek Cabinet approval for Assemble and present incentive package to attract target companies B proposed plans • Discuss with MOSTI & KeTTHA Establishing about customized incentives • Sector-specific incentives may • E.g. tax benefits for companies involved in green technology & for companies developing regulatory Talk to KeTTHA & industry require approval from Cabinet environment-friendly processes • Approval process expected to framework 2) • Understand MGTP programs & take ~9-12 months industry players needs to increase adoption of green technology C Talk to MGTC3) & industry Define public development plan Execute infrastructure & public development plans • Evaluate industry needs for • Set quantitative long-term program of public Fostering public R&D programs, workforce R&D investment and talent development technology and testing facilities in Cyberjaya • KeTTHA to serve as lead agency • Assess KeTTHA's existing Define infrastructure investment plan • Set up test-bed facilities in Cyberjaya, follow-up with university platforms technology development plans talent programs • Engage with relevant partners to set up • Establish collaboration with relevant agencies/ industry players to infrastructure and test-bed facilities in CJ make available their current development projects in Cyberjaya 1) This applies to government services agencies, that may be interested in testing green technologies or in collaborating with companies in Cyberjaya, such as the Land Transport Authority or Tenega Nasional; 2) Malaysian Green Technology Policy; 3) Malaysian Green Technology Corporation Positioning strategy: Biotechnology

Cyberjaya must carefully carve out a competitive niche and position itself as a development hub for bioinformatics

Biotechnology: Positioning strategy for Cyberjaya

SWOT analysis for Cyberjaya Cyberview's role

Strengths Weaknesses > BiotechCorp is the dedicated biotechnology agency – Cyberview to engage BiotechCorp on CJ's focus areas & > Strong national support > No previous experience in Driver jointly develop plans with the National biotech and would need to > Cyberview to serve as intermediary to facilitate Biotechnology Policy (NBP) establish its niche in the Champion and Bioeconomy industry discussion among stakeholders, incl. companies looking Transformation Prog. (BTP) to set up, investors & property owners > Ability to leverage and work Facilitator with BiotechCorp, the national biotech agency to Positioning strategies drive forward the development plans > Bioinformatics development Market CJ as a biotech hub, with focus on bioinformatics to leverage on the is synergistic with the plans A. ICT capabilities of Cyberjaya to develop big data in CJ Highlight potential to merge talents in biotech and growing expertise in data > Potential to capitalize on ICT > Domestic competition B. analytics, which can pave the way for a bioinformatics hub expertise in Cyberjaya to from other parks e.g. develop the bioinformatics Technology Park Malaysia Emphasise incentives for BioNexus co's and financial incentives for biotech market, and to position > Strong regional C. Cyberjaya as a competition from countries co's specialising in bioinformatics and located in CJ (to be worked out with bioinformatics hub such as Japan, China and BiotechCorp etc) Singapore Target companies

1 Celgene 4 United Thera. 7 Regeneron 10 Genentech 2 Biogen 5 Life Tech. 8 Alexion Opportunities Threats 3 Amgen 6 Vertex Pharma. 9 Genzyme Action plan: Biotechnology

Efforts must be focused on the right framework and collaborations to attract companies to develop bioinformatics R&D in Cyberjaya Biotechnology: Action plan (High-level)

2014 2015 2016 2017 Strategic Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Thrust Initiatives

First contact with top 10 companies (Round 1) Approach 2nd Reassess & update shortlist of target priority companies A Relevant technology areas & companies agencies to be (Round 2) Initiating consulted > Companies to be contacted: Celgene, Engage biotech > (If required) > To factor in new emerging areas and contact with before BioGen, AmGen, United Therapeutics, Life companies co's in M'sia1) > To be "activated" if companies approaching Technologies, Vertex Pharma, Regeneron, negative replies > Roland Berger can assist in steering this companies Alexion, Genzyme and Genentech received from 1st process > Align with ongoing efforts of BiotechCorp > Invite them to set tier companies up bioinfo centers in CJ Trigger discussions & align Seek Cabinet approval for Assemble and present incentive package to attract target companies B with relevant agencies proposed plans Establishing > Initiate talks with MIDA, InvestKL > Sector-specific incentives may > E.g. tax benefits, training grants, rebates, assistance to fund R&D, etc regulatory > Meet with BiotechCorp on require approval from Cabinet existing BioNexus incentives and > Approval process expected to framework potential new incentives to take ~9-12 months promote bioinformatics in CJ

C Engage BiotechCorp Define strategic R&D plan Execute R&D development programmes and talent development plans > Understand existing > Set quantitative long-term program of Creating the biotech platforms public investment for R&D in bioinformatics technology > BiotechCorp to serve as lead agency Engage industry players Develop talent programs > Establish collaboration with BiotechCorp and industry players to make available existing ecosystem biotech platforms in Cyberjaya > Both biotech and data analytics > Engage relevant universities to cos to identify cross-synergies develop bioinformatics programs potential 1) This applies to biotech companies located in other parts of Malaysia Positioning strategy: Wearable technologies

Cyberjaya can position itself as a hub for wearable technology given the synergies with its ICT capabilities; Cyberview to act as champion

Wearable Technology (WT): Positioning strategy for Cyberjaya

SWOT analysis for Cyberjaya Cyberview's role

Strengths Weaknesses > Relevant agencies exist, e.g. MDeC, MIMOS, but the technology cuts across multiple disciplines, incl sensor > Ability to leverage CJ's ICT > Hardware aspect is less Driver technology, wireless technology, software experience and expertise aligned with CJ's areas of development, microelectronics etc Champion > In line with Digital M'sia's strength - i.e. highly > aim of developing a digital competitive with low-cost Cyberview to serve as active advocate to promote WT among relevant agencies economy producers from China and Facilitator > Complementary with Taiwan; requires higher MIMOS efforts in the capital investment development of "Internet of Positioning strategies Things" > Universities currently Market CJ as a hub for development of WT, capitalizing on ICT expertise and provide talent supply, e.g. A. USM, UM, UTM software development know-how Highlight availability of talent across disciplines of ICT, sensor and wireless > Potential to leverage > Regional competition from B. tech, microelectronics and E&E from various local universities incl. USM, national advances in sensor more advanced countries UTM and UM and wireless technologies to such as Japan, Taiwan and develop technologies for South Korea who are at the Emphasise financial incentives for co's involved in wearable technology wearables forefront of WT C. located in CJ (to be worked out with MDeC, MOSTI, MIDA etc) > Strong national capabilities in semiconductor and Target companies microelectronic manufacturing in Penang provide easy access to 1 Samsung Elec. 4 Google 7 Jawbone 10 Pebble Tech components 2 Adidas 5 Nike 8 Sony Opportunities Threats 3 Garmin 6 Fitbit 9 Eurotech Action plan: Wearable technologies

Cyberview should collaborate with other agencies to highlight complementary technology strengths in attracting companies to CJ

Wearable Technology (WT): Action plan (High-level)

2014 2015 2016 2017 Strategic Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Thrust Initiatives

A Relevant First contact with top 10 companies (Round 1) Follow-up with Reassess & update shortlist of target agencies to be Round 1 co's technology areas & companies Initiating consulted > Companies to be contacted: Samsung Electronics, Adidas, Garmin, > 2nd round of > To factor in new emerging areas and contact with before Google, Nike, Fitbit, Jawbone, Sony, Eurotech and Pebble meetings where companies companies approaching Technology incentive packages > Roland Berger can assist in steering this companies > Align with ongoing efforts of MIDA, InvestKL will be presented process and discussed

Trigger discussions & align Seek Cabinet approval for Assemble and present incentive package to attract target companies B with relevant agencies proposed plans Establishing > Initiate talks with MIDA, InvestKL > Sector-specific incentives may > E.g. tax benefits, training grants, rebates, assistance to fund R&D, etc regulatory > Meet with MDeC, MOSTI on require approval from Cabinet potential incentives to promote > Approval process expected to framework WT in CJ take ~9-12 months

C Engage MIMOS Define strategic R&D plan Execute R&D development programmes and talent development plans > Understand existing > Set quantitative long-term program of Creating the platforms for WT1) public investment for R&D required technology > Cyberview to serve as active advocate or champion for WT Engage relevant industry players Develop talent progs > Establish collaboration with MIMOS and industry players to make available existing ecosystem platforms relating to WT, e.g. sensor & wireless technologies as well as microelectronics in > Identify players offering > Engage unis to develop WT Cyberjaya complementary tech, e.g. sensor & programs and training wireless tech 1) Including numerous sensor and wireless platforms already developed and owned by MIMOS Positioning strategy: Smart grid technology

The interest for smart grids in Malaysia is fast-growing – Cyberjaya should position itself as the hub which fosters R&D collaboration

Smart grid technology: Positioning strategy for Cyberjaya

SWOT analysis for Cyberjaya Cyberview's role

Strengths Weaknesses > Engage government agencies (e.g. SEDA3), KeTTHA4)) and relevant industry players (mainly Tenaga Nasional) > Fit easily with CJ given the > Currently no R&D activity Driver to develop more projects in M'sia use of ICT as a core conducted on smart grids in > Cyberview should offer testing grid facilities, and focus technology Cyberjaya Champion > Consistent with on attracting global players to foster their collaboration with the relevant M'sian companies a government's aim to reduce Facilitator energy consumption – can benefit from incentives under MGTP1) Positioning strategies > Growing industry interest (e.g. partnerships set up Market Cyberjaya as the most appropriate hub for smart grids, given the between MGTC2), Tenaga & A. co's like GE or Trilliant, or prominent ICT aspect and the green city status of Cyberjaya Silver Springs) Offer up testing facilities for smart grid technology, as well as the possibility > Pool of companies in > Possibility to see B. for foreign co's to collaborate with local players and government agencies Cyberjaya active in smart competition emerging for commercial roll-out grid activities elsewhere from other Malaysian tech (e.g. Fujitsu, Mahindra) parks focusing on ICT & C. Stress financial incentives from govt agencies towards real-world smart > Increasing number of real- green technology, such as grids projects (to be worked out with SEDA3) , MOSTI or KeTTHA) world project in Malaysia Technology Park Malaysia (e.g. Melaka, Mukah Smart Target companies City) Tendril 1 Itron 4 IBM 7 ABB 10 Networks 2 Echelon 5 S&C 8 Siemens Opportunities Threats 3 Silver Springs 6 Schneider 9 General Electric 1) Malaysian Green Technology Policy 2) Malaysian Green Technology Corporation 3) Sustainable Energy Development Authority Action plan: Smart grid technology

Cyberjaya should make sure suitable incentives are in place, and provide a conducive environment for target smart grid companies

Smart grid technology: Action plan (High-level)

2014 2015 2016 2017 Strategic Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Thrust Initiatives Contact top 10 companies & discussions follow-up Reassess & update shortlist of target A Relevant technology areas & companies agencies to be • Companies to be contacted: Itron, Echelon, Silver Initiating Springs, IBM, S&C, Schneider, ABB, Siemens, GE, Tendril consulted Networks • To factor in new emerging areas and contact with before Contact other relevant co's companies approaching Talk to relevant development agencies in CJ1) & Tenaga N. • Roland Berger can assist in steering this companies process companies • To align with KeTTHA, MIDA if there are ongoing • Present & discuss incentive discussions with target companies packages Talk to relevant agencies Seek Cabinet approval for Assemble and present incentive package to attract target companies B proposed plans • Discuss with SEDA, KeTTHA Establishing about possible customized • Sector-specific incentives may • E.g. tax benefits for municipalities implementing smart grids projects incentives regulatory Talk to MGTC2) & Tenaga N. require approval from Cabinet framework • Approval process expected to • Understand MGTP3) programs take ~9-12 months • Engage Tenaga Nasional to under-stand future development plans C Talk to agencies & industry Define public development plan Execute infrastructure & public development plans • Evaluate industry needs for • Set quantitative long-term program of public Fostering public R&D programs, workforce R&D investment and talent development • SEDA, MDeC, KeTTHA to serve as lead agencies technology and testing facilities in Cyberjaya • Set up test-bed facilities in Cyberjaya, follow-up with university talent • Assess SEDA/MDeC's existing Define infrastructure investment plan programs platforms development plans and MIMOS • Establish collaboration with MIMOS and/or relevant agencies/ industry • Engage with relevant partners to set up technology platforms players to make available their current development projects in Cyberjaya infrastructure and test-bed facilities in CJ

1) This applies to companies present in Cyberjaya, involved in smart grid activities but elsewhere, and not part of the top 10 priority companies (e.g. Mahindra, Huawei) 2) Malaysian Green Technology Corporation 3) Malaysian Green Technology Policy 4) Sustainable Energy Development Authority D. IMPACT The Global Technology Hub implementation is expected to deliver GNI impact of RM 2.4 bn and 6,600 new jobs between 2014-2020

Conclusions

5 focus technology areas … Defined action plan in place … GNI and jobs boost

1 ICT technologies 1 Initiate contact with companies Total GNI impact 1), 2014-2020 1a Information security RM 2.4 1b Creative content tech billion 1c Mobile internet 2 Establish regulatory framework 1d Cloud computing

1e Big data analytics Total jobs created 1), 2014-2020 2 Green technology 3 Biotechnology 6,600 3 Foster technology platforms jobs 4 Wearable technologies 5 Smart grid technology

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Related industry sectors will also be positively impacted through this catalytic initiative

Impact of GTH to related industry sectors Non-exhaustive

Benefits to related industry Manufacturing ICT services sectors Software Logistics development Animation > Industry ecosystem: production Nurtures an ecosystem of Shared service companies in related outsourcing Media and content business sectors across the Information Creative value chain, lowering the content development security Mobile overall cost of doing Engineering internet business services Smart grid E-Commerce Global Cloud > Catalytic investment: Technology computing Power Energy efficiency Hub Anchor investments in Wearables core industry sectors will Electrical and serve as a catalyst to the Big data electronics Chemicals Biotechnology analytics development of new Green business opportunities and technology Property industry areas Business analytics development > Technology transfer: Healthcare Data centers Investments of foreign Agriculture investments will benefit Construction local workforce and Pharmaceuticals enterprises through direct and indirect transfer of knowledge and expertise Technology sectors under Global Technology Hub Related industry sectors

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT E. APPENDIX E1. Benchmarking: Technology parks Benchmarking – Technology parks: Research Triangle Park, US

The Research Triangle Park is the world's largest university- related park, mainly focusing on IT and Life Sciences

Overview of Research Triangle Park

> Established in 1959 > World's largest university-related research park, situated between UNC-Chapel Hill, Duke & N.C. State University Concept > Park size: Total of 7,000 acres > Mixed dev't model – Govt was key driver in initial stages > Park management is now focusing on making park more attractive to smaller entrepreneurial firms

Focus > Biotech & Life Sciences> Nanotechnologies areas > IT > Wireless Telco > Managed by The Research Triangle Foundation, a Managem private non-profit organization ent > The B.O.D. includes both academia and industry professionals > Various recreation activities (e.g: sports leagues, bike Examples of major tenants paths in wildlife reserves) – However, main challenge is to attract youth Biotech & Life Science Information Technologies Liveable > Management recently bought adjacent properties along I- aspects 40 to be developed into the Park centre – Signature landmark ("Convergence Center") planned to improve park's visibility > Rail line planned to improve the park's connectivity CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: RTP Concise Public Master Plan , Roland Berger analysis Benchmarking – Technology parks: Research Triangle Park, US

The park leverages a strong innovation tradition and collaboration schemes to attract both start-ups companies and large R&D centers

Assessment of Research Triangle Park

Resources Talent > Steady flow of talented graduates from the 3 funding universities

Infrastructure (hard and > Conference center, high-quality broadband, 5 incubators on-site providing services and advices > A new regional tram system to be built, and new affordable housing and residential spaces soft) > Recreation activities not attractive to young professionals (e.g: nightlife, cultural events)

> Funding Numerous venture capital firms implanted > Presence of organization offering research financing support (e.g: Biotechnology Center)

> Numerous invention disclosures and licence agreements with university departments Network Linkage between research institutes and industry > Public-private partnerships remain very common in the park's activities, especially with universities > Efforts made to introduce multi-use, cooperative spaces and shared amenities designed to foster Knowledge transfer collaboration and unity > Networking events to foster open exchange of ideas (e.g: Get connected @ RTP, RTP 1800)

> Host several iconic organizations and networks (e,g: IUPAC, the Hamner, the William Burroughs Support systems Welcome Fund, or Sigma Xi) to help recently created companies

Clarity of roles & > Stable management by The Research Triangle Foundation of North Carolina, a non-profit Regulation & organization objectives > Involvement of both industrial players and academia in the decision-making process Governance for STP management > Clear vision mapped out in the Master Plan 2011 Clear vision > However, lack of measurable objectives in the Master plan

> No funding for potential tenants / specific grants for locating within the boundaries of RTP Clear incentives > Incentives to be found through state and regional agencies, especially for specific industries, such as digital media and biotechnology

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: RTP Concise Public Master Plan , Roland Berger analysis Benchmarking – Technology parks: Sophia-Antipolis, France

Sophia-Antipolis represents France's main national competency center for Bio-chemistry and Information Technologies

Overview of Sophia-Antipolis

> Established in 1969 > Europe's largest park, founded to foster the development of collaborative research between industry and universities > Park size: Total of 6,000 acres Concept > Mixed model of development > Park is applying for the newly introduced 'French Tech' label which would give it better access to public funding

> Biotech & Life Sciences> Multimedia Focus areas > IT > Energy, Environment

> Publicly owned land, jointly managed by two associations: Managemen - Foundation Sophia-Antipolis (operational development) t - Symisa (Syndicat mixte de Sophia Antipolis) – Gov't reps

> 9,102 inhabitants with a large student community Examples of major tenants > Park surrounded by large national park and several large villages Chemistry/Biochemistry Information Technologies Liveable > aspects Many retail outlets, recreational activities (e.g: golf, tennis, fitness) and international schools to attract foreign workers > Transportation services is the key concern – New bus system is already planned and aerial tram system being studied

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: Foundation Sophia-Antipolis, Roland Berger analysis Benchmarking – Technology parks: Sophia-Antipolis, France

The park's attractiveness is supported by an exceptional environment, and its well-established networks and support services

Assessment of Sophia-Antipolis

Resources Talent > Many campuses of top universities and engineering/business schools on-site > Ability to attract the students thanks to the quality of life and the environment Infrastructure (hard and > Weak public transportation services (traffic jams, high-frequency bus systems only planned for 2017) soft) > Commercial areas, and several incubation facilities available(e.g: Sophia-Antipolis Business Hub)

> Sophia Business Angels, specialized in ICT, healthcare, robotics and sustainable development Funding > Close collaboration with banks and government agencies providing financial grants > Declining activity from private venture capital funds

Linkage between research > Existing programs linking academic research/industries and public institutes/start-ups Network > SATT South-East organizes collaborative work projects, foster communication in the park, and bring institutes and industry innovation from public research to industrial sector via commercial licensing for companies > S-A 'Business hub': Co-working spaces & shared innovation platforms (e.g: 'Comm4Innov') Knowledge transfer > Campus@SophiaTech: Research and teaching center devoted to networks, bioinformatics > Network and training sessions organized, especially for start-ups and SMEs

> Formal association of stakeholders ("Secure comms solutions" cluster) to facilitate engagement Support systems > Also other associations available to help create links and synergies, and to support recently created companies

Clarity of roles & objectives > 2 main associations with separate responsibilities, are responsible for the park's development Regulation & "Foundation Sophia-Antipolis" and Symisa (which is made of several public shareholders) for STP management Governance > Slow decision-making process for strategic issues due to multiple stakeholders involved

Clear vision > New vision for the park recently published (Sophia 2020) > Clear vision for the infrastructure improvement, lack of measurable development KPIs

> No policies specific to the park Clear incentives > New policies fostering research and job creation, through tax deduction > Park still suffers from lack of investor confidence due to frequent regulatory changes in France

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: Foundation Sophia-Antipolis, Roland Berger analysis Benchmarking – Technology parks: Cambridge Science Park, UK

The Cambridge Science Park focuses on cutting-edge research, leveraging heavily on the University of Cambridge

Overview of Cambridge Science Park

> Established in 1970 > UK's oldest park, close to Cambridge to take full advantage of the concentration of scientific expertise and facilities > Park size: Total of 152 acres Concept > Mainly organic growth – Govt was only a driver in initial stage > In 2014, Trinity announced it has been working on an extension of the park, with 3 new research facilities

> Bio-medical > Materials Focus areas > Computer / Telco > Energy, Environment

> Trinity is the landowner, developer and promoter of the park Managemen > Park management services are carried out by Bidwells, a t property specialist

> Various amenities to improve quality of life (e.g: Childcare Examples of major tenants facilities, health and fitness club) > Railway and bus tunnel projects are still under discussion Biomedical/Pharmaceuticals Computer/Telecoms Liveable > aspects To address rising property prices, Cambridge University is working on "North West Development" ,a £1bn development to build new houses, a nursery, retail areas and medical centres

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: Cambride Science Park Newsletter, Trinity college, Roland Berger analysis Benchmarking – Technology parks: Cambridge Science Park, UK

The park created one of the most comprehensive innovation ecosystems in Europe

Assessment of Cambridge Science Park

Resources Talent > Strongly benefits from its proximity to Cambridge University

Infrastructure (hard and > Specific services for start-ups, such as incubation facilities > Several facilities available (e.g: gym, nursery, pubs), investments for building more housing options soft) > Transportation infrastructure needs to be improved (fast train project, new roads being studied)

> Funding Large number of angels funds and venture funds, very active in the area > Includes the regional office of 3i, the UK’s leading venture capital company

> Large number of spin-off companies from the university's research department Network Linkage between research institutes and industry > Management priority remains ensuring that academic research is close to industry applications

> Shared facilities available, and networking events and conferences organized on-site Knowledge transfer > Existing knowledge transfer program much more focused on exchange between large companies and university students/research rather than between large companies and SMEs

> Creation of 'Cambridge Enterprise' to support the University's entrepreneurs, and make them Support systems benefit from existing networks and industry contacts

> Promotion by the University's college, and minimal bureaucracy present Regulation & Clarity of roles & objectives for STP management > No central management body – Land management carried out by a local property specialist Governance > No holistic vision – Only the objective to bring together academia and industry for innovation Clear vision > No qualitative or quantitative KPIs

> New tax incentives for qualifying patents, though not park-specific Clear incentives > Still room for improvement in terms of measures encouraging research funding and innovation

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Source: Cambride Science Park Newsletter, Trinity college, Roland Berger analysis Benchmarking – Technology parks: Daedok Innopolis, South Korea

Daedeok Innopolis focuses on promoting innovation in emerging technologies within IT, biotechnology and nanotechnology

Overview of Daedeok Innopolis

> Established in 1973 as Daedeok Science town > Started with government sponsorship as a pure research center – Evolved into a complete R&D innovation cluster Zone IV

> Park size: Total of 16,750 acres Zone III Concept > Government-led initiative > Daedeok is part of the Innopolis network since 2005, which Zone I Zone II gathers 4 parks under one name Zone V

> Biotech & Life Sciences > Nanotechnologies Zone I Focus areas > IT > Space technologies

2 > Zone I (27 km ) Daedeok Science Town The park is located on Daejeon City-owned lands and managed 2 Managemen by the Innopolis Foundation Zone II (4.3 km ) Daedeok Tchno Valley Zone II (3.2 km2) Daedeok Industrial Complex t > Innopolis is a non-profit organization under the Ministry of Zone IV (31.2 km2) Northern Green Bok Science Zone V (3.9 km2) Agency for Defense > International school and several museums (e.g : Buyeo National Examples of major tenants museum) with regular festivals organized > More affordable housing, a buzzing city center and Technology companies Public research institutes Liveable entertainment areas will be built to improve attractiveness to aspects younger population > New roads are also planned, as well as a bridge between the park and Daejon City to increase its integration and connectivity CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: World Technopolis Association, Roland Berger analysis Benchmarking – Technology parks: Daedok Innopolis, South Korea

The park leverages park-specific incentives and proximity to public research centers to attract key national industry players

Assessment of Daedeok Innopolis

1) Resources Talent > Leading university campuses on the Science Park (including KAIST ) > 11% of Korean PhD-level researchers specialized in Engineering and Biology located on-site

Infrastructure (hard and > Focus on quality of life offered, including recreational activities, and transportation infrastructure soft) > Incubation facilities and support services offered, but can be improved

> Innopolis Foundation funds available to foster the development and growth of local companies Funding > Small presence of VC funds or business angels compared to other parks

Network Linkage between research > Hub-and-spoke system linking research capacity with advanced industries institutes and industry > Numerous shared research centers created (e.g: KAIST/Hyundai Heavy Industries)

> Strong tradition of transfer knowledge from research institutes to surrounding companies Knowledge transfer > Weak technology transfer during the collaboration between MNCs and SMEs > Cooperation agreements with other tech parks, to foster know-how that benefits park tenants > Support available from Innopolis Foundation for technology at the commercialization stage Support systems > No clear mentorship program to help SMEs and start-ups

Clarity of roles & objectives > Developed and managed by Daedeok Innopolis Foundation, under jurisdictional control of Ministry of Regulation & Science, ICT and Future Planning for STP management Governance > Highest-level management common between the three other Innpopolis parks Clear vision > Strong vision of the center's role (from a research institute park to a global innovation cluster) > Quantitative and qualitative objectives clearly set out

Clear incentives > Tax benefits and less strict regulations (e.g. pertaining to construction) for Innopolis-status companies

1) Korean Advanced Institute of Science & Technology CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: World Technopolis Association, Roland Berger analysis Benchmarking – Technology parks: One-North, Singapore

Singapore's One-North attracts and clusters major IT and Life Sciences international players and research institutes

Overview of One-North

> Established in 2001 > Developed as a model of integrated platforms with areas Vista Xchange dedicated to specific research fields, such as Biopolis (Business & Lifestyle) > Park size: Total of 490 acres Biopolis Concept (Biomedical & Life Sciences) > The park's development relies on strong Govt leadership > P&G invested SGD 250m in 2014 to build a innovation centre, Fusionopolis 1) (ICT, Science, collaborating with A*STAR on new innovations for consumers Engineering & Media) Wessex Estate (Arts & Creative) > Biotech & Life Sciences > Media Focus areas > IT > Physical Sciences

> Managed by JTC, Singapore's lead agency to spearhead the Managemen planning, promotion & development of the industrial landscape Mediapolis t > Overall development under the Ministry of Trade & Industry

> Close proximity to MRT station & connected by major roads Examples of major tenants > Designated green spaces within the park (Rochester Park) > Cultural & recreational activities (e.g: SPAC2)), and facilities Information Technologies Biomedical/Pharmaceuticals Liveable designed for workers (e.g: Learning Vision for childcare) aspects > High price of existing housing supply (e.g: One-North Residence)

1) Agency for Science, Technology and Research 2) Star Performing Arts Centre CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: EDB Singapore, Ministry of Trade and Industry, Roland Berger analysis Benchmarking – Technology parks: One-North, Singapore

The park capitalized on talent and regulations to become a key gateway for companies looking to establish R&D centers in Asia

Assessment of One-North

Resources Talent > Proximity to world-class business schools (e.g: INSEAD) and educational institutes (e.g: NUS) > Full scholarship provided to 1,000 PhD candidates to study overseas and come back to Singapore

Infrastructure (hard and > Efforts to create a liveable city: housing options (Wessex Estate), recreational activities (Star soft) Performing Arts Centre) and numerous facilities (chilcare centers, retail areas), green parks, etc. > JTC Launchpad : Cutting-edge facilities and incubators to create vibrant start-up communities > Global VC players (e.g : CVC) and Government research funds on-site, especially in Block 71 Funding > The VC scene is not very active due to low level of tech entrepreneurial activity

Network Linkage between research > Partnerships and co-development facilitated between universities and private companies (e.g: institutes and industry AstraZeneca with NUS Medical School on cancer research)

> Shared amenities to promote collaboration between researchers in both private and public sectors Knowledge transfer > Public labs work alongside corporate labs to transfer and accelerate the development of technologies

> No support programs for start-ups and SMEs except for access to incubation facilities Support systems > Agreement to make innovation testing possible (e.g: in the Kent Ridge public hospital for Biopolis)

> Developed and managed by JTC, an industrial estate management company under the Ministry of Regulation & Clarity of roles & objectives Trade and Industry for STP management Governance > Make the hub as big as ones in the US by lowering entry barriers for new companies in Asia Clear vision > Clearly laid out action plans to achieve this vision

> Considerable tax incentives offered for R&D expenses Clear incentives > No park-specific tax incentives offered beyond its attractiveness (talent, cutting-edge infrastructure)

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Source: EDB Singapore, Ministry of Trade and Industry, Roland Berger analysis Benchmarking – Technology parks: Zhangjiang Park, China

Zhangjiang Park gathers numerous foreign-based companies in the field of Life Sciences and Information Technologies

Overview of Zhangjiang Park

> Established in 1992 > In 1999, Shanghai Municipality identified key industries in which the park should play a leading role in innovation > Park size: Total of 600 acres Concept > Government-led initiative – Aggressive state policy > Used as a pilot where administrative functions are assumed by the park instead of the municipality (e.g: business registration)

> Biotech & Life Sciences > Semiconductors Focus areas > IT > Multimedia gaming

> Managed by Zhangjiang Hi-Tech Park Development Management > Falls under the Municipality authorities, but the park is used as a testbed for policy deregulation and has administrative powers > Close to the city center and to Pudong International airport Examples of major tenants > Cosmopolitan life in Shanghai attracts many foreign executives IT companies Pharmaceuticals Chemistry Liveable > Tram service connects park to the Shanghai Railway – 10 min aspects away from the Lujiazui area, known to be one of the most happening places in town (e.g: recreation, retail, housing) > Growing supply of affordable housing for younger crowd

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: Shanghai Pudong Town Hall, Roland Berger analysis Benchmarking – Technology parks: Zhangjiang Park, China

The park successfully attracted R&D operations thanks to incentives used and availability of talent and funding

Assessment of Zhangjiang Park

> Benefits from the city's top university networks Resources Talent > Policies to recruit overseas Chinese students, who largely prefer to live in Shanghai

Infrastructure (hard and > Govt and high-tech companies provide strong support to main Zhangjiang incubator soft) > Facilities, housing and tramways – Convenient transportation to the international airport

> Grants from National Technology Innovation Fund Funding > Creation of Pudong New Area Venture funds, that led to numerous PE funds gathering and clustering in the park

Linkage between research > Presence of specialized institutes (e.g: Medicine Institute of the Chinese Academy of Medical Network Sciences) institutes and industry > Some joint programs exist between these research institutions and multinational R&D departments

> Some SMEs can benefit from programs that outsource research to large MNCs (e.g. AstraZeneca) Knowledge transfer > Due to Intellectual Property issue, knowledge transfer remains underdeveloped

> No mentorship program available for smaller companies Support systems > Advisory programs can be provided by Zhangjiang Hi-Tech Park Development special department

> Managed by Zhangjiang Hi-Tech Park Development, under the Municipality's authorities – Regulation & Clarity of roles & objectives for STP management Responsible for both real estate services and park development decisions Governance > Be a national model for innovation and a laboratory for new administration schemes Clear vision > No clear KPIs set up by the Municipality

> Park-specific policies exist, relating to R&D expenses and equity incentives for employees Clear incentives > Expeditious customs clearance provided on-site

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Source: Shanghai Pudong Town Hall, Roland Berger analysis E2. Benchmarking: Start-up hubs Benchmarking – Start-up hubs: Tel Aviv

Tel Aviv ranks 2nd globally, due to its strong entrepreneurial culture, highly developed funding ecosystem and large supply of talent

Tel Aviv Start-up Ecosystem

Overview Index scoring Funding Index Funding > Healthy funding ecosystem throughout start-up 20 lifecycle 15 20 > Funding sources slightly more focused on angels, 10 less on family/friends 5 Trendsetter 0 Talent index Index Talent > Plentiful supply of talent; strong enterpreneurial culture; 40% Masters/ PhD students 16 > 39% of hi-tech employees work in R&D departments of MNCs – Significant knowledge transfer Support index Description > Globally ranked number 2 Support > Vibrant support ecosystem (e.g. platforms for > Highest density of startups in the world discussion between start-up founders and 16 investors) > Highest output of startups and a healthy mix of startups in all stages

> Tel Aviv entrepreneurs concentrate four times Notable > Mobile/online Trend- more on new markets than on niche markets apps setting start-ups > However, speed of adoption of new technologies, > Consumer business models and management processes is electronics 4 relatively low MIRABILIS

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: Startup Ecosystem Report 2012 (Startup Genome); Roland Berger analysis Benchmarking – Start-up hubs: Los Angeles

Los Angeles is ranked 3rd in the global start-up ranking, mainly due to strong talent pool, support system and diverse funding sources Los Angeles Start-up Ecosystem

Overview Index scoring Funding Index Funding > No funding gap – Healthy mix of capital sources 20 > Prevalence of early-stage funds (Lowercase Capital, 15 14 Karlin Ventures, SV Angel, Plus Capital, and Double 10 M Capital) 5 Trendsetter 0 Talent index Index Talent > Large supply of technology-qualified talent from L.A.'s local universities 19 > Talent is honed via entrepreneurship programs in universities in partnership with local accelerators Support index > Exemplary accelerator and incubator infrastructure Description Support > Ranked 3rd in global start-ups ranking, with – Influx since 2011 has provided educational, approximately 800 start-ups 17 collaborative and supportive environments for > USD500 million raised in funding in H1 2013 entrepreneurs and start-ups

Notable > e-Commerce > Strong in creative content creation, particularly in start-ups > Digital media Trend- setting entertainment, aerospace, fashion, and advertising > Crowdsourcing > Quick to adopt new technology (e.g. programming > Online apps 10 languages like Python and Ruby)

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: Startup Ecosystem Report 2012 (Startup Genome); LA Startup Ecosystem 2013 (Be Great Partners); Roland Berger analysis Benchmarking – Start-up hubs: London

London is the leading start-up hub in Europe due to its talent pool, strong support system and reputation as a global metropolis

London Start-up Ecosystem

Overview Index scoring Funding > Strong government support and equity Index Funding 20 crowdfunding 15 17 > However, funding gap still exists due to lack of 10 super angels and micro VCs which target deal sizes 5 of USD500k to USD2.5 mil Trendsetter 0 Talent index Index > Easy access to talent with some of the top Talent universities in the world and diverse talent 12 > However, London entrepreneurs are less ambitious and more risk averse than those in Silicon Valley Support index > Prevalence of support networks, shared Support Description > Most successful start-up ecosystem in Europe, workspaces, mentorship, tech incubators & capital with the largest output of start-ups 20 infrastructure helps promote strong start-up > Investors closed 135 deals with start-ups in ecosystem 2013 > Tax incentives offered to stimulate startup investment > Online games/apps Notable > Slower technology adoption than in Silicon Valley Trend- start-ups > Online lender (e.g. London startups relying more heavily on PHP, setting > Home swap club and less on Java, Ruby, and Python) > e-Commerce 3

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: Startup Ecosystem Report 2012 (Startup Genome); Roland Berger analysis Benchmarking – Start-up hubs: Sydney

Sydney's start-up scene is highly innovative and talented – However, funding for start-ups still remains scarce

Sydney Start-up Ecosystem

Overview Index scoring Funding Index Funding > Limited funding from angels and venture capital 20 firms 15 7 > Majority of start-ups are self-funded – Few rely on 10 funding from friends/family 5 Trendsetter 0 Talent index Index Talent > High level of education of workforce with diverse skills & experience 15 > Influence of experience on start-up success outweighs education – Most start-up Support entrepreneurs have previous business experience index > Support during the ideation stage still limited but Description > Houses 950 tech start-ups, or 63% of total Support tech start-ups in Australia access is widening with recent growth in 9 incubators, accelerators and angel groups > Access to govt and large companies still difficult

Notable > e-Commerce > Strong trend-setting ability - 30% of start-ups start-ups Trend- > Software setting record a high degree of novelty in their products / company services > Online apps 20 > Strength in manufacturing, retailing and consumer service-oriented industries

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: The start-up economy by PwC, 2013; Australia Small Business, 2012; Startup Ecosystem Report 2012 (Startup Genome); Roland Berger analysis Benchmarking – Start-up hubs: Sao Paulo

Sao Paulo is a fast-growing start-up ecosystem – However, challenges remain in terms of talent, support and funding

Sao Paulo Start-up Ecosystem

Overview Index scoring Funding Index Funding > Large concentration of accelerators and venture 20 capital funds; however, there is still a funding gap 15 11 (Sao Paulo start-ups raise 86% less capital than 10 Silicon Valley start-ups) 5 Trendsetter 0 Talent index Index > Young and energetic workforce; however, lacking in Talent terms of experience (entrepreneurs in Sao Paulo 2 are 59% less likely to be serial entrepreneurs compared to entrepreneurs in Silicon Valley)

Support index Support > Lack of regulatory incentives for start-ups and Description > Largest start-up ecosystem in Brazil, with 605 structural issues (e.g. legal system does not allow start-ups 10 funding structures such as options/convertible notes) > Cost of doing business still high due to high taxes and bureauracy Notable > e-Commerce Trend- > Lower technology adoption than in Silicon Valley start-ups > Aggregator setting > Sao Paulo start-ups rely heavily on PHP and .NET, > Social network less on Java and Ruby > Online education 5

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: Startup Ecosystem Report 2012 (Startup Genome), Roland Berger analysis Benchmarking – Start-up hubs: Singapore

Singapore is the leading start-up hub in Asia due to start-up friendly legislation, top-notch talent, and proximity to major Asian markets Singapore's Start-up Ecosystem

Overview Index scoring Funding Index Funding > Active early-stage funds spawned from government 20 funding e.g. NRF's TIF1), and SPRING's SEED2) 15 13 > Rely more on incubators and self-funding, less on 10 accelerators, super angels and VCs 5 Trendsetter 0 Talent index Index > Talent Highly educated work force and English-speaking multicultural society 13 > 52% of entrepreneurs have Master/PHD education

Support index > Highly active accelerators like Joyful Frog Digital > Support Description Leading start-up ecosystem in Asia Incubator provide funding and mentoring to local > #1 spot in the World Bank's "Ease of Doing 5 startups; Presence of intermediary organization Business" ranking between entrepreneurs and angels (e.g. BANSEA)

Notable > e-Commerce > Lower technology adoption in Singapore than in start-ups Trend- > Aggregators setting Silicon Valley (e.g. heavier reliance on PHP, Java, and .NET, with no use of Ruby) 2

1) National Research Foundation's Technology Incubation Scheme; 2) Startup Enterprise Development Scheme by CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT SPRING, a Government agency set up to promote development of local SMEs Source: Startup Ecosystem Report 2012 (Startup Genome), Roland Berger analysis Benchmarking – Start-up hubs: Bangalore

While opportunities are present for Bangalore's start-up scene, it must overcome challenges in all key areas

Bangalore's Start-up Ecosystem

Overview Index scoring

Funding > Home to large number of venture capitals but Index Funding 20 lacking in angel investors 15 3 > Overall funding gap, with 74% less funding raised in 10 Bangalore compared to Silicon Valley 5 Trendsetter 0 Talent index Index Talent > Talented workforce but lacks entrepreneurship culture 3 > Entrepreneurship is not the first career path choice - Lack of support from educational institutions

Support index Description > Accounts for 41% of all new ventures Support > Lacks incubators launched in India 6 > Requires more government support to establish > 4th largest tech cluster after Silicon Valley, funded or supported incubators to bring together Boston & London entrepreneurs at ideation stage

Notable > e-Commerce Trend- > Low rate of technology adoption – Bangalore start-ups > Software co. setting engineers heavily rely on PHP and Java, and much (acquired by Facebook) less on Ruby and Python compared to their peers in > Digital agency 1 Silicon Valley

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Source: Startup Ecosystem Report 2012 (Startup Genome), Roland Berger analysis Benchmarking – Start-up hubs

Overall, the top start-up hubs excel in at least 3 out of 4 criteria – Most hubs rank highly in terms of talent, funding and support

> The top start-up cities (i.e. Tel Aviv - #2 Los Angeles - #3 London - #7 Tel Aviv, Los Angeles and London) excel in at least 3 of the 4 benchmark criteria Funding Funding Funding Index Index Index > Most leading start-up cities 20 20 20 15 15 15 rank highly in terms of talent, 10 10 10 funding and support Trend- Trend- Trend- 5 Talent 5 Talent 5 Talent setter 0 setter 0 setter 0 index index index > Only 2 of the selected cities Index Index Index excel as trendsetters (i.e. Los Angeles and Sydney) Support Support Support index index index

Sydney - #12 Sao Paulo - #13 Singapore - #17 Bangalore - #19

Funding Funding Funding Funding Index Index Index Index 20 20 20 20 15 15 15 15 10 10 10 10 Trend- Trend- Trend- Trend- 5 Talent 5 Talent 5 Talent 5 Talent setter 0 setter 0 setter 0 setter 0 index index index index Index Index Index Index

Support Support Support Support index index index index

Source: Startup Ecosystem Report 2012 (Startup Genome); Roland Berger analysis CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT Thank You

For Enquiries

Technology Hub Division Contact Person : Puan Siti Shafinaz Telephone : 03 – 8315 6111 Email : [email protected]