Johor Bioeconomy Report 2015 - J

Transcription

Johor Bioeconomy Report 2015
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CONTENTS
A NOTE FROM JOHOR’S MENTERI BESAR
EXECUTIVE SUMMARY
PROJECT BACKGROUND AND OBJECTIVES
BIOTECHNOLOGY IN JOHOR
OVERVIEW OF THE JOHOR BIOTECHNOLOGY MASTERPLAN
ABOUT J-BIOTECH
BIOECONOMY REVIEW
DEFINITION OF BIOECONOMY
BIOECONOMY IN MALAYSIA
UNLOCKING JOHOR’S BIOECONOMY POTENTIAL
THE JOHOR BIOECONOMY
ACCELERATING JOHOR’S BIOECONOMY GROWTH
JOHOR BIOECONOMY FOCUS OVERVIEW
J-BIOTECH INITIATIVES
JOHOR BIOECONOMY ECOSYSTEM DEVELOPMENT
JOHOR BIO-TALENT DEVELOPMENT CENTRE
BIOECONOMY COMMUNITY DEVELOPMENT PROGRAMME (BCDP)
BIO SME PROGRAMME
J-BIOTECH’S SPECIAL PROJECTS
BIO DESARU
JOHOR HALAL PARK
BIODIVERSITY
KEY EVENTS HIGHLIGHTS
Please note; all data included in this paper is from published sources or Frost
& Sullivan’s proprietary information, or from industry participants.
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A NOTE FROM
JOHOR’S MENTERI BESAR
“
... the bio-based industry investment
recorded strong accomplishment
with total approved investments
worth RM670.3 million exceeding its
initial projection value for the year at
RM500 million.
“
Dato’ Mohamed Khaled bin Nordin
Menteri Besar Johor
Assalamualaikum Warahmatullahi Wabarakatuh,
Salam Sejahtera and Salam Muafakat Johor.
In today’s global economic setting, a bio-based
economy is a growth engine with a promising future.
A technology-focused industry, bioeconomy offers
technological solutions for many of the health and
resource-based problems faced in the world.
The Malaysian economy grew steadily, beating
expectations in 2015. We are proud to report that
bio-based industries in Malaysia remain firmly on
track towards revitalising the economy. Despite a
slight contraction in growth from 3.6 percent in 2014
to 3.4 percent in 2015, bio-based industries continue
to play a vital strategic role in the country’s economic
development. As a rapidly developing country that
practises a global and open economy, Malaysia
remains resilient in the face of the challenging global
and local economic environment.
The launch of the Bioeconomy Transformation
Programme by the Prime Minister, YAB Dato’ Sri
Mohd Najib Tun Abdul Razak, highlights Malaysia’s
commitment in creating a national bioeconomy
agenda that is in line with economic growth that
centres on the development of the people and
industrial commercialisation.
Malaysia is also a destination that is rich in biodiversity,
and it aims to unlock its full potential in this new area
of economic growth, in keeping with our aspirations
to realise Vision 2020. Johor possesses tremendous
potential in the development of a conducive
bio-based and a healthy biodiversity ecosystem.
Johor Biotechnology & Biodiversity Corporation
(J-Biotech) is the primary agency responsible for
executing the state’s bioeconomy initiative. Under
this initiative, there are various industrial and business
development projects to encourage a sustainable
ecosystem growth.
In light of the increasingly challenging economic
environment, it is important to ensure that Johor’s
economic development remains viable. Therefore,
the emphasis on the bioeconomy as a new catalyst for
driving growth in the state is very much welcomed.
Bioeconomy is one of the new economic growth areas
showing consistent and compelling development in
stimulating Johor’s economy. This is evident from
the various development programmes successfully
implemented and executed by J-Biotech. Exemplary
programmes include the Bioeconomy Community
Development (BCDP) and BioSMEs Programme,
where state agencies are engaged in developing
a sustainable bio-based industry, while helping to
improve people’s livelihoods, broadening business
networks and benefitting bio-based SMEs.
The State Government is confident that the positive
A NOTE FROM
JOHOR’S MENTERI BESAR
development of the bioeconomy sector in Johor
will continue to strive forward. In 2015 alone, the
bio-based industry investment recorded strong
accomplishment with total approved investments
worth RM670.3 million exceeding its initial projection
value for the year at RM500 million.
Johor is truly a unique location. We have the longest
coastline in Malaysia that hosts an immense variety
of fascinating, even rare, flora, fauna and marine life.
As the agency entrusted to protect Johor’s rich
biodiversity, J-Biotech continues to spearhead
various conservation and preservation efforts. A
major highlight was the release of 200 seahorses at
Sungai Pulai Ramsar Site by HRH the Sultan of Johor,
Sultan Ibrahim ibni Almarhum Sultan Iskandar, last
November, which made its way into the Malaysia
Book of Records. This biodiversity preservation and
conservation project is a collaborative project with
Universiti Malaysia Terengganu (UMT) and underlines
J-Biotech’s sustainable collaborative model for R&D
and innovation.
efforts to spur economic growth and sustainable
bio-based biodiversity conservation programmes,
the Johor Bioeconomy Report showcases Johor’s
aspirations in becoming Malaysia’s premier
bioeconomy southern gateway. Building on an
extensive base of industry examples, the report
demonstrates the need to start thinking in terms of
a “sustainable bio-based economy”, major growth
levers available in Johor’s bio-based economy and
compelling opportunities for potential investors.
The Government of Johor is committed to creating
the conditions necessary to shape Johor into a
competitive investment destination with distinct
advantages that enable businesses to thrive,
generate lasting employment opportunities, and
lead to sustainable developments that benefit the
people of Johor.
J-Biotech plays a pivotal role in its continued efforts
to unlock the potential of Johor’s bio-based clusters
and develop a thriving bioeconomy in the state and
I wish you continued success.
In accordance with the Johor State Government’s
Dato’ Mohamed Khaled bin Nordin
Menteri Besar Johor
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EXECUTIVE SUMMARY
“
The growth potential of bioeconomy
in Johor is high, with the investments
which J-Biotech attracted grew at a
robust 22% compound annual growth
rate (CAGR) over the 2008 to 2015
period.
“
Biotechnology continues to deliver tangible benefits
in the agriculture and healthcare sectors, fuelling
the growth of bioeconomy globally. Since 1992, the
United States and the European countries have been
the leading players in biotechnology, generating
substantial revenues over the past two decades
(1990-2010). The increased growth in the global
biotechnology industry and the opportunities it offers
to large enterprises as well as Small and Medium
Enterprises (SMEs) has captivated the attention of
countries in Asia.
Recognising the potential of the biotechnology
industry, in 2005, Malaysia launched the National
Biotechnology Policy (NBP), making it the first country
in Southeast Asia to launch a national bioeconomy
initiative and the second to do so in Asia after China.
The policy is not only expected to streamline existing
activities contributing to Malaysia’s bioeconomy, but
enable the country to emerge as one of the most
competitive biotechnology hubs in the Asia-Pacific
region.
Johor is a Malaysian state rich in land and natural
Wan Amir-Jeffery bin Wan Abdul Majid
Chief Executive Officer
resources that has high potential for developing a
thriving bioeconomy. It has a flourishing agriculture
sector that can positively contribute to the growth
of bioeconomy. The forward-thinking government
is committed to investing in a knowledge-based
economy. The state’s young, vibrant population
is ready to embrace the wide-ranging career
opportunities the biotechnology and bio-based
sectors have to offer. Johor is an attractive location
for investment due to the availability of employable
knowledge workers and access to raw materials.
These attributes coupled with a favourable
competitive environment open up diverse investment
opportunities to stimulate the growth of bioeconomy
in Johor.
As a state-driven initiative, J-Biotech actively
promotes the growth of biotechnology and biobased sectors that contribute to Johor’s bioeconomy.
J-Biotech, a statutory body under the purview of
the Johor State Government, is the prime mover of
biotechnology and biodiversity activities to transform
Johor into the southern gateway of the Malaysian
biotechnology sector. To date, several initiatives have
been commissioned by J-Biotech together with other
agencies such as the Johor Bio-Talent Programme,
Bioeconomy Community Development Programme,
Bio SMEs Programme and the development of the
Johor Halal Park. Some of these programmes are
at a prime stage of development while others are
under initiation stage.
Displaying significant growth in biotechnology
and bio-based industries, most of the investments
contributing to the state’s bioeconomy are located in
Bio Desaru, a subsidiary of J-Biotech focusing on the
food and agriculture cluster. From 2008 to 2015, a
total of RM1.6 billion worth of investments has been
channelled into Bio Desaru, with the total cumulative
investment facilitated by J-Biotech amounting to
approximately RM2.3 billion. The growth potential
of bioeconomy in Johor is high, with the investments
which J-Biotech attracted grew at a robust 22%
compound annual growth rate (CAGR) over the
2008 to 2015 period. The Malaysian Investment
Development Authority (MIDA) also recognises
Johor as the country’s top investment destination
due to its positive macroeconomic features. MIDA
recorded an impressive 15 investments in Johor in
2015 under the Food Manufacturing and Scientific
and Measurement Equipment industries, which
fall under the bio-based industry, totalling RM1.80
billion1.
As the lead agency promoting the growth of
biotechnology in Johor, J-Biotech has signed
several MoUs and MoAs with foreign and domestic
companies and continues to conduct outreach
programmes throughout the state to promote
stakeholder engagements and drive bioeconomy
initiatives. These programmes serve as efficient
platforms for bio-based SMEs to promote their
companies and products, maximise commercial
opportunities and increase awareness about the
biotechnology industry and bioeconomy career
opportunities among the potential talent pool.
The Johor Bioeconomy Report not only highlights
J-Biotech’s ongoing commitment to influence
the bioeconomy growth agenda in Johor, but
the objective is to follow it through with targeted
initiatives in the critical areas of research, policy
advise to key stakeholders and the government, and
the development of human capital in the bio-based
sector, amongst other initiatives.
The ultimate aim of bioeconomy in Johor is to
enable the state to remain innovative, economically
competitive and resource-efficient while creating
attractive jobs for the people of Johor and being a
significant contributor to the national bioeconomy.
Given the promising progress of bioeconomy in Johor,
J-Biotech, with the support of the State Government,
is driving an exciting transformation agenda by
employing innovative and high-end technologies,
promoting innovative collaboration between science
and industry, fostering new bioeconomy publicprivate partnerships, and investing in the knowledge
and training of resources to enhance the state’s
competitive position as the southern biotechnology
gateway for the country.
Wan Amir-Jeffery bin Wan Abdul Majid
Chief Executive Officer
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MIDA
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PROJECT BACKGROUND
AND OBJECTIVES
The launch of the National Biotechnology Policy
(NBP) in 2005, which states Malaysia’s vision “To
position biotechnology as the new economic engine
to enhance prosperity and wellness of the nation
by 2020” signalled Malaysia’s commitment to the
build this sector. The policy starts from capacity
development to commercialisation and finally,
placing Malaysia as a competitive, leading edge
biotechnology hub at the global level by 2020. The
goals are to have the bioeconomy contributing 5.0
percent of national GDP by 2020 and to create almost
300,000 new jobs – both directly and indirectly – by
2020.
Located in the Southern part of
Johor Government envisions the
southern gateway of the Malaysian
industry and developed the Johor
Malaysia, the
state as the
biotechnology
Biotechnology
Masterplan in 2005. Under the purview of the
Johor Biotechnology and Biodiversity Corporation
(J-Biotech), the Masterplan marks its first decade
in 2015. Hence, J-Biotech is keen to assess the
achievements of its Programmes as well as highlight
future developments.
Frost & Sullivan has therefore been engaged to
develop a report with the aim of providing a formal,
independent stakeholder-based management report
on J-Biotech’s overall Programme achievements
for the Masterplan. The report will serve as an
important and insightful tool to support J-Biotech’s
implementation of its plans as well as showcase
potential opportunities for growth in the sector in
Johor. The report aims to assist policy makers, industry
players and investors capture a true indication of the
current and future state of the industry.
Frost & Sullivan used three sources of information to develop this report as highlighted below:
Bioeconomy Transformation Programme Annual Report 2014
Unit Perancang Ekonomi Negeri Johor Annual Report 2013/2014
SECONDARY
SOURCES
Websites of government agencies (eg: PEMANDU, Department of Statistics,
MOSTI, MIDA), investors and programmes
Database from previous projects conducted in the biotechnology sectors
FROST & SULLIVAN
KNOWLEDGEBASE
AND EXPERTISE IN
BIOECONOMY
Database from previous project conducted for other agencies involved in
bioeconomy
Interviews with representatives from each division in J-Biotech
Interviews with J-Biotech’s subsidiaries
PRIMARY
RESEARCH
Interviews with other agencies involved in Johor’s bioeconomy
Primary data from J-Biotech, BioDesaru and MIDA
A half-day project initiation workshop with J-Biotech was also conducted on 21st September 2015. The prime
objective of the workshop was to understand the perspective of the corporation on the overall success and
achievement of Johor’s bioeconomy and their vision for its future development.
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BIOTECHNOLOGY IN JOHOR
OVERVIEW OF THE JOHOR BIOTECHNOLOGY MASTERPLAN
Since 1992, biotechnology has been a rapidly
growing segment in the United States, with revenues
soaring from USD8 billion in 1992 to more than
USD324 billion in 20122. Similarly, since the early
2000s, Europe and Canada have shown remarkable
growth in the biotechnology sector. The remarkable
success of the biotechnology industry in these
countries is capturing the attention of Asia-Pacific
countries, namely Malaysia, Japan, Korea, Singapore,
Thailand, Australia and China.
harness the potential of the biotechnology sector.
This is partly due to its rich biodiversity and abundant
natural resources and other significant competitive
advantages including a dedicated Federal agency in
Malaysian Biotechnology Corporation to develop the
industry. To realise the country’s vision and progress
further in biotechnology, the National Biotechnology
Policy (NBP) was launched in 2005 by the then Prime
Minister, Tun Abdullah Ahmad Badawi. Malaysian
Biotechnology Corporation (BiotechCorp) was also
established in 2005 to facilitate the growth and
Biotechnology is one of the sectors slated to operations under the NBP that is tasked to leverage
accelerate Malaysia’s transformation into a highly Malaysia’s commercially ready facilities globally
industrialised nation by 2020. Since the early 2000s, between 2015 and 2020.
Malaysia has consistently intensified its efforts to
The
availability of rich natural
resources and strategic location are
opening up new opportunities for
Johor to develop its biotechnology
industry.
Similarly, the Johor Government has clear ambitions Several initiatives have materialised in Johor since
to make the State as the southern gateway of the the announcement of the Masterplan including the
Malaysian biotechnology industry. The availability formation of J-Biotech, a state agency tasked to
of rich natural resources and strategic location are promote the growth of biotechnology businesses
opening up new opportunities for Johor to develop and develop industry-ready talent.
its biotechnology industry. To spur the industry
forward, the Johor Government established the Johor The Johor Biotechnology and Biodiversity
Biotechnology Masterplan in 2005 to streamline Corporation (J-Biotech), under the purview of
existing and upcoming initiatives over the next 10 the Johor Government, focuses on governing the
years. The Masterplan outlines the primary focus implementation and coordination of biotechnology
areas, action plans, and policies aimed at improving programmes to align with the Masterplan and the
management efficacy to ensure the sustainability of Federal Government.
biotech-related investments in the state.
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Nature Biotechnology, Volume 34, Number 3, March 2016 : Estimating the biotech sector’s contribution to the US economy
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The Johor Biotechnology Masterplan identifies key areas of development, as shown in the chart below:
Figure 1 : Key Development Areas in the Johor Biotechnology Masterplan 2005
Source : Johor Biotechnology Masterplan (2005)
The development areas have been determined
based on their potential to propel the economy
through bio-based industries as well as market needs.
Most of the main areas in the Johor Biotechnology
Masterplan involve the agriculture sector. Industries
supporting the growth of Agriculture Biotechnology
(AgBiotech) such as bio-refinery, bio-manufacturing,
integrated bio-farming, and bio-product validations
are being developed to realise the state’s goals of
creating a sustainable environment and increasing
production output to meet local, regional and global
demands.
As the governing body, J-Biotech implements
and coordinates activities as mapped in the
Johor Biotechnology Masterplan. As a driver of
biotechnology and biodiversity initiatives, J-Biotech’s
main objective is to promote integrated relationships
within the agro-biotech agencies, industry, academia
etc. as a priority, to support the growth of related
projects from farm-to-table or waste-to-wealth.
J-Biotech aims to attract, engage and develop
human resource capabilities to continue to meet
the evolving needs of biotechnology and bio-based
companies. It is the one-stop centre that facilitates
the setting up of biotechnology and bio-based
investments and collaborations, showcase the state’s
ability to become a holistic agro-biotech business
hub, and help preserve Johor’s rich biodiversity. At
the same time, J-Biotech also engages with parties
involved in the BioIndustrial and BioMedical sectors
to enable them to realise their ambitions of becoming
a value-added partner in technology development,
product-based player or a partner in human capital
development.
Over the past 10 years, J-Biotech has spearheaded
several initiatives to maximise Johor’s potential
and success in the biotechnology industry and
bioeconomy, taking advantage of its rich biodiversity
and natural resources. As agriculture is the main
contributing sector to Johor’s economy, it is adopted
as a key focus area by J-Biotech to boost Johor’s
biotechnology industry. By facilitating technology
transfers and encouraging investments, J-Biotech
aims to transform the agriculture sector with
advanced biotechnological practices. J-Biotech
continues to foster partnerships with key agencies in
developing Johor as a biotechnology investment hub
in the region by capitalising on the state’s excellent
accessibility and proximity to neighbouring markets.
Bio Desaru, an Organic Food Valley, an initiative led
by J-Biotech, is poised to accelerate expansion in
agro-related areas by creating an ecosystem with the
right ingredients that will draw investors with proven
technologies and high-value added activities.
J-Biotech is in the process of reviewing the Johor
Biotechnology Masterplan. The review of the
Masterplan will update and set new objectives
and explore additional biotechnology initiatives
to be facilitated by J-Biotech. These initiatives will
attract future R&D investments, stimulate growth in
AgBiotech, BioIndustrial and BioMedical segments,
and create an industry-ready workforce, reinforcing
Johor’s bioeconomy potential.
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ABOUT J-BIOTECH
J-Biotech, a statutory body under the purview of the
Johor State Government, is envisaged as a prime
mover of biotechnology and biodiversity activities
to transform Johor into the southern gateway of
the Malaysian biotechnology sector. Following the
launch of the National Biotechnology Policy (NBP) in
2005, the corporation was set up to transform Johor
into a thriving bio-based economy.
As a facilitation agency, J-Biotech attracts and
manages biotechnology and bio-based investment
inflows into Johor from within and outside Malaysia.
The agency is responsible for providing an
environment that is conducive and well-suited for
the growth of bio-based industries. J-Biotech also
provides support and assistance to small and medium
enterprises (SMEs) dedicated to biotechnology to
set up operations in Johor and nurture the existing
Bio SMEs. Since its inception, J-Biotech continues
to emphasise the importance of Johor’s biodiversity
and the sustainable growth of the biotechnology
industry in developing the bioeconomy ecosystem.
Key functions of J-Biotech are as follows:
Acts as the Biotechnology and Biobased Investment Facilitation Agency
(State Government-Linked Company)
Develops the Bioeconomy Ecosystem
through Developmental and
Commercialization Programmes
Focuses on Biodiversity Preservation
and Conservation, Research and
Development (R&D) and Sustainable
Commercialisation
Collaborates with State and Federal
Agencies to implement initiatives for
the Industry and Entrepreneurs
As part of its efforts to excel in all its core activities, J-Biotech strives to uphold the following corporate
values that focus on teamwork, integrity, excellence and adaptability.
TEAMWORK ensures effectiveness
and efficiency at work as well as
a good relationship with external
parties
including government
officials and investors
INTEGRITY builds the foundation
of trust between J-Biotech and
its partners, leading to future
partnerships and collaborations.
J-Biotech also aims to deliver highquality work and services
J-Biotech endeavours to achieve
EXCELLENCE in its programmes
and projects to ensure the end result
contributes to the development of
Johor’s bioeconomy
Agile and ADAPTABLE, J-Biotech
is equipped and ready to address
different situations and environments
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SUBSIDIARY BUSINESS
To maximise the potential of Johor’s bioeconomy sector, Johor Biotechnology and Biodiversity Corporation
(J-Biotech) has established several subsidiaries targeted at bolstering investments in specific areas under its
wholly owned subsidiary company, J-Biotech Holdings (JBH):
BIO DESARU SDN BHD (BDSB) - THE ORGANIC FOOD VALLEY
An Ag-Biotech food valley comprising of 9,000 acres of land focusing on implementing
integrated bio farming including bio-agriculture, bio-aquaculture, bio-livestock and biotourism activities through the application of upstream biotechnology and implementation
of bio-security.
J-BIOTECH SDN BHD (JBSB)
Principal consulting arm for J-Biotech group providing professional services, with panel
of registered consultants, to the investors in the course of developing biotechnology,
biodiversity and bio based projects.
J-BIO ECOGREEN SDN BHD (JBEG)
Pioneer in production of bio-based products to meet the demand for beneficial microbes
and consultancy services for agriculture, aquaculture, livestock and environment including
product application and project monitoring.
J-BIOTECH SAINTIFIK SDN BHD (JBSSB)
JBSSB
Pioneer in providing laboratory and analytical certification services through the provision of
laboratory testing and consultancy in the life sciences, food safety, environment for water
& wastewater sectors.
In operation for several years, the subsidiaries have made significant socio-economic contributions to Johor’s
bioeconomy and biotechnology industry.
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BIOECONOMY REVIEW
DEFINITION OF BIOECONOMY
The rapid expansion of biotechnology over the past
two decades has boosted exponential advancements
in agriculture and healthcare, contributing to
significant economic growth globally. With the
increasing impact of biotechnology, several member
countries from the Organisation for Economic Cooperation and Development (OECD), developed
their respective national strategies and policies in
late 2010, to harness the potential of bioeconomy
based upon the benefits of production from biobased resources. This has resulted in a number of
varying definitions that are unique to each country or
region’s demands and capabilities.
Figure 2: Definition of Bioeconomy by Region
BIOECONOMY ...
... is a world where biotechnology contributes to a significant
share of economic output [through] the use of advanced
knowledge of genes and complex cell processes to develop
new processes and products, the use of renewable biomass and
efficient bioprocesses to support sustainable production, and
the integration of biotechnology knowledge and applications
across sectors. 3
... is economic activity that is fuelled by research and innovation
in the biological sciences...[It] relies on the expansion of
emerging technologies such as synthetic biology (the direct
engineering of microbes and plants), proteomics (the largescale study and manipulation of proteins in an organism), and
bioinformatics (computational tools for expanding the use of
biological and related data), as well as new technologies as yet
unimagined.4
... encompasses the production of renewable biological
resources and their conversion into food, feed, bio-based
products, and bioenergy. It includes agriculture, forestry,
fisheries, food and pulp and paper production, as well as parts
of chemical, biotechnological, and energy industries.5
The Bioeconomy to 2030: Designing a Policy Agenda by OECD
National Economy Blueprint 2012 by the White House
5
European Commission
3
4
14
... refers to an economy based on the research, development,
and application of life sciences and biotechnology, and
established upon the foundation of biotechnological products
and industries.6
... is defined as, a new concept, covers a broad range of
economic activities, all benefiting from discoveries, and related
products and services arising out of the biosciences.7
...refers to the sustainable production and conversion of
biomass for a range of food, health, fibre, and other industrial
products as well as energy. It encompasses all industries
and sectors producing, managing, or otherwise making use
of biological resources (including organic waste), such as
agriculture, forestry, and fisheries. The modern bioeconomy is
based on knowledge and innovation in biosciences, together
with other technologies such as engineering, chemistry,
computer science, and nanotechnologies.8
Chinese Social Science Net. Available at: http://english.cssn.cn/research/interdiciplinary/201402/t20140210_960629.shtml
Technology Innovation Policy for the Bioeconomy by the Korea Institute of Science and Technology Evaluation and Planning
8
Australia Government: Department of Industry, Innovation and Science. Available at: http://industry.gov.au/industry/IndustrySectors/nanotechnology/IndustrialBiotechnology/Pages/BioeconomyandIndustrialBiotechnolo gy.aspx
6
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BIOECONOMY IN MALAYSIA
Being a member of OECD, Malaysia shares a
similar definition to other member nations, where
bioeconomy spans across a broad range of activities
due to the abundance of natural resources available
in the region. Malaysia defines bioeconomy as all
economic activity that is derived from the continued
commercial application of biotechnology. It
encompasses the production of renewable biological
resources and their conversion into food, feed,
chemicals, energy, and healthcare wellness products
via innovative and efficient technologies9. Based
on this definition, Malaysia is uniquely positioned
to drive economic diversification as it has multiple
pillars to create a robust ecosystem to support the
growth of bioeconomy.
Malaysia is the first country in Southeast Asia to
launch a national bioeconomy initiative, and the
second to do so in Asia after China10. The policy is
not only expected to streamline existing activities
contributing to Malaysia’s bioeconomy, but enable
the country to emerge as one of the most competitive
biotechnology hubs in the Asia-Pacific region.
As of 2013, the bioeconomy industry contributed
up to 11.9% of Malaysia’s total GDP, at RM120.8
billion. At an average annual growth rate of
15.0%, the industry is forecasted to be valued
at RM181.2 billion by 2030.
Figure 3: Malaysia’s Bioeconomy Gross Domestic Product Contribution (RM billion), 2013-2030F
13.4%
11.9%
181.2
149.1
120.8
PERCENTAGE (%) DENOTES
BIOECONOMY GDP
CONTRIBUTION TO TOTAL
GDP OF MALAYSIA
106.7
2010
2013
2020
(projected)
2030
(projected)
Source : Bioeconomy Transformation Programme Annual Report (2014) by BiotechCorp
The Bioeconomy Transformation Programme (BTP)
was launched and officiated by the Honourable
Prime Minister of Malaysia on October 30, 2012,
with 10 Entry Point Projects and 20 Trigger Projects
aiming to generate total investments of RM10 billion
9
Malaysian Biotechnology Corporation
Ministry of Science, Technology and Innovation, Malaysia
10
by 2020. Under the BTP, the action plans and key
development areas are aligned with the National
Biotechnology Policy (NBP) with nine national thrusts
that aim to facilitate the growth of the private sector
in the country’s bioeconomy.
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Figure 4: Nine Thrusts of the National Biotechnology Policy, Malaysia
1
2
Enhance value
creation of the
agriculture sector
5
Increase
opportunities for
bio-processing and
bio-manufacturing
6
Provide the right
financial infrastructur
e
for market funding
and incentives
Commercialise
discoveries of
health-related
natural products
and bio-generic
drugs
7
Review legal and
regulatory framework
for biotechnology
processes and
businesses
3
Build human capital
through education,
training and
research activities
8
Provide dedicated
government support
through agencies to
spearhead development
of biotechnology
industries
4
Establish centres of
excellence for
biotechnology
9
Strategically build
internationalrecognition
for Malaysia’s
biotechnology industry
Source: Bioeconomy Transformation Programme Annual Report (2013) by BiotechCorp
The BTP’s ultimate vision is to stimulate the
development of bioeconomy, targeting to contribute
up to RM48 billion to the Gross National Income (GNI)
by 2020, generating 170,000 jobs and attracting
total investments worth RM50 billion. In addition to
the 20 Trigger Projects approved in 2012, a total of
five new BTP Trigger Projects were approved in 2014,
collectively expecting to generate RM4.2 billion of
GNI by 2020, create 18,100 jobs, and capture total
investments worth RM13.7 billion.
To realise these objectives, agencies such as
BiotechCorp and MIDA are leading various initiatives
to attract high-value investments. Projects developed
under the Bioeconomy Community Development
Programme (BCDP) include Seed Production, Bee
Farming, Dairy Farming, Oyster Farming, High-Value
Herbs Farming, Stevia Farming and Herb Farming
that involve nine states, to act as a catalyst towards
achieving the BTP’s 2020 objectives.
Figure 5: BTP Achievements in 2012–2014 (as of September 2014) and Targets for 2020
Source: Bioeconomy Transformation Programme Annual Report (2013, 2014) by BiotechCorp
17
Based on the framework laid out by BiotechCorp, the focus areas contributing to the Malaysian bioeconomy
sector are shown below:
Figure 6: Segments Contributing to Malaysia’s Bioeconomy
AGRICULTURE
BIOTECHNOLOGY
(AgBiotech)
BIOINDUSTRIAL
BIOMEDICAL
APPROVED INVESTMENTS IN 2013
RM919.3
million
RM850.1 million
RM69.2 million
RM2.3
billion
RM1.7 billion
RM617 million
RM948
million
RM238.8 million
RM709.2 million
JOBS CREATED IN 2013
1,615 jobs 390 jobs 2,613 jobs
Source: Bioeconomy Transformation Programme, Annual Report 2014 by BiotechCorp
According to the BTP, bioeconomy workshops and
capacity building over the past two years have
enabled the initiation and operation of several major
projects contributing to Malaysia’s bioeconomy. The
BioIndustrial sector continues to be a mainstay of
bioeconomy, contributing to more than half of the
investments approved for bio-related developments
in Malaysia and driving strategic partnerships to
develop more efficient forest plantations and biomass
production. The abundance of raw materials in the
country, such as palm oil, rubber and agriculture
biomass waste, is also one of the major contributors
spurring the expansion of bio-related industries.
The growth of bioeconomy in Malaysia is evident
from the achievements in each focus segment. The
AgBiotech sector has also accounted for a significant
portion of approved investments in the past two
11
Malaysian Palm Oil Board
years due to growing demand for higher quality and
more efficient crop production. The bio-industrial
sector is also increasingly attracting activities
and investments from both foreign and domestic
investors. The vast oil palm plantations in Malaysia
are spurring the expansion of downstream industries
such as biomass and biofuels. Not surprisingly, the
palm oil industry continues to draw both domestic
and foreign investors due to the immense supply
of this natural resource in Malaysia, with about 20
million tonnes of crude palm oil produced in 201511.
The Biomedical industry continues to flourish in the
country, enabling the development of healthcare
and pharmaceutical-related manufacturing and
industries. In 2013, approximately RM2.3 billion of
investments was approved under the Biomedical
segment in Malaysia, creating 390 job opportunities
in the industry.
18
Figure 7: Biotechnology Projects Contributing to Bioeconomy in Malaysia
Haemonetics
Malaysia
Biomedical
Biomedical
Production of crops
using tissue culture
technology
Manufacturing facility
for intraocular lens
(IOLs)
Blood management
solutions
INVESTMENT VALUE
Kulim Hi-Tech
Park
Agriculture
PRODUCTS / SERVICES
Centre Of
Excellence
Agriculture
Biotechnology
(COE AgBio)
FOCUS SECTOR
COMPANY / PROJECT
NORTHERN CORRIDOR ECONOMIC REGION (NCER)
RM192 million
12
RM105 million
13
Food, Biopolymers,
renewable chemicals
and biofuels
INVESTMENT VALUE
Bioindustrial
PRODUCTS / SERVICES
Kertih
Biopolymer
Park
(COE AgBio)
FOCUS SECTOR
COMPANY / PROJECT
EAST COAST ECONOMIC REGION (ECER)
RM4 billion
14
Organic food and
vegetables, livestock,
dairy products,
aquaculture products
RM1.6 billion 15
Green & Smart
Bio-based
Biogas plant that will
utilise biomass,
namely palm oil mill
effluents
RM54.5 million 16
Johor Halal
Park
Bio-XCell
(Iskandar Malaysia)
Biocon
MyBiomassW
Bioindustrial,
Halal
Industrial,
Medical
BioMedical
aste to Wealth
Commercial hub,
Bio Halal Lab,
Bio-Processing
facilities, Bio SME park
Biotechnology ParkR
INVESTMENT VALUE
Agriculture
PRODUCTS / SERVICES
Bio Desaru
FOCUS SECTOR
COMPANY / PROJECT
JOHOR STATE INITIATIVE
Under
Development
M1.6 billion
Insulin, monoclonal
antibodies and
recombinant proteins
production
RM590 million 18
High-value green
chemical from oil
palm biomass
RM512 million
The Star ,13&16 The Star 13 November 2014, Malaysia’s biotech landscape finally starting to emerge. Available at: http://www.thestar.com.my/lifestyle/
features/2014/11/13/malaysias-biotech-landscape-finally-starting-to-emerge/ [Accessed: 9 December 2015]
13
Penang Chief Minister’s Office
15
Primary data from Bio Desaru as of 2015
16
Primary data from J-Biotech’s Investment Facilitation Division as of 2015
18
Biocon Malaysia
19
Malaysian Investment Development Authority (MIDA), Malaysian Industry-Government Group for High Technology (MIGHT)
12,14 &17
17
19
19
SABAH DEVELOPMENT CORRIDOR (SDC)
Marine Integrated
Cluster (MIC)
Agriculture
Biopharmaceuticals,
Biodiagnostics, functional
food, Horticultural
products, nutraceuticals,
microbials, and probiotics
Dairy products, beef
RM1.5 billion20
INVESTMENT VALUE
Keningau
Integrated
Livestock Centre
(KILC)
Medical, Industrial
Biofuel, biomass,
biochemicals
PRODUCTS / SERVICES
Sabah Agro
Industrial
Precinct (SAIP)
Industrial
(palm oil industry)
FOCUS SECTOR
COMPANY / PROJECT
Palm Oil Industry
Cluster (POIC)
Projected to
generate
RM763 million
in investments 21
Aquaculture products,
cosmetics ingredients,
pharmaceuticals
Agriculture,
Industrial
Food biotechnology
INVESTMENT VALUE
Agriculture
PRODUCTS / SERVICES
Tanjung Manis
Halal Hub (TMHH)
FOCUS SECTOR
COMPANY / PROJECT
SARAWAK CORRIDOR OF RENEWABLE ENERGY (SCORE)
Under
development
The Star 13 November 2014, Malaysia’s biotech landscape finally starting to emerge. Available at: http://www.thestar.com.my/lifestyle/features/2014/11/13/malaysias-biotech-landscape-finally-starting-to-emerge/ [Accessed: 9 December 2015]
21
The Daily Express 21 April 2015, RM51.6b invested in Sabah biotech sector to date. Available at: http://www.dailyexpress.com.my/news.cfm?NewsID=99118 [Accessed: 9 December 2015]
20
20
Below are the descriptions of some high impact investments that contribute to the country’s bioeconomy:
SECTOR
COMPANY/
PARTNERSHIP
DESCRIPTION
Bio Desaru
AGBIOTECH
Bio Desaru is a project by J-Biotech that focuses on integrated bio
farming including bio-agriculture, bio-aquaculture, bio-livestock
and biotourism upstream activities through the application of
biotechnology and implementation of bio-security.
Biocon
BIOMEDICAL
Biocon is a company based in India that produces biopharmaceutical
products such as insulin, monoclonal antibodies and recombinant
proteins. The company invested RM 590 million to set up a facility
in Malaysia which is recognized as an Entry Point Project (EPP) by
the government.
CJ CheilJedang
and Arkema SA
This collaboration between France’s Arkema and South Korea’s
CJ CheilJedang (CJ) has opened a $565m biomethionine and
thiochemicals plant in Kertih BioPolymer Park. The plant will
produce methyl mercaptan as well as dimethyl disulfide (DMDS)
for animal feed production.
Gevo
US-based biochemical company Gevo Inc. has invested RM1.65
billion to set up a biogas manufacturing plant that will produce
bioisobutanol from biomass at the Kertih BioPolymer Park.
Mitsui & Co.,
Sime Darby and
Tenaga Nasional
This collaboration between three companies is planning to
develop biogas projects at eight of Sime Darby’s palm oil mills in
Malaysia. The biogas plants will produce bioethanol from oil palm
empty fruit bunch.
Green & Smart
Green & Smart Sdn Bhd is an Independent Power Producer in
Renewable Energy that will utilise biomass, namely palm oil mill
effluents, in biogas plant to generate renewable energy. This
project is also identified as one of the BTP trigger projects.
MyBiomass
An industrial bio-refinery plant by MyBiomass will be operational
in Johor by end of 2016. The plant will produce high-value
green chemicals for various industries including pharmaceuticals,
materials and energy by utilizing oil palm biomass as feedstock.
BIOINDUSTRIAL
BIOBASED
WASTE TO
WEALTH
Among the companies awarded the BioNexus status,
those that focus on the agriculture and healthcare
sectors dominate the biotechnology industry.
Malaysia’s biomedical industry is attracting keen
interest from global firms to set up manufacturing
plants and research facilities in the country. For
example, Biocon (India) has invested more than
USD200 million in the Iskandar region, Johor,
focusing on the production of insulin for diabetic
patients.22
Several factors contribute to the emergence of
Malaysia as a top biotechnology destination in
Asia-Pacific including active support and successful
implementation of strategies by the Government,
legislation which allows ease of entry resulting in a
steadily growing bioeconomy, and legislation easing
the entry process. However, there are some innovation
gaps within Malaysia’s R&D for biotechnology, such
as social readiness for bioeconomy. The PESTLE
(Political, Economic, Social, Technological, Legal,
and Environmental) analysis gives an overview of the
whole environment from many different angles for
Malaysia’s bioeconomy that enables us to evaluate
the current feasibility of investing in bioeconomy in
Malaysia.
Reuters 28 November 2015, Indian drugmaker Biocon’s revenue could hit US$1 billion in 4 years. Available at: http://www.reuters.com/article/biotech-biocon-chairman-idUSL8N13N0CO20151128#UzcRi4Ih76wglWVx.99 [Accessed: 9 December 2015]
22
PESTLE
CRITERIA
21
ANALYSIS OF
MALAYSIA’S BIOECONOMY
Malaysia is a safe and politically stable country making it a preferred destination
for foreign investment. The Government remains committed to building a strong
bioeconomy with progressive policies and national strategies to stimulate the
growth of biotechnology and bio-based industries.
Malaysia introduced the National Biotechnology Policy (NBP) in 2005 with a
long-term goal of becoming the top biotechnology hub in Asia-Pacific.23 This will
promote the growth of biotechnology industry in Malaysia with the active support
from the government.
POLITICAL
As another initiative by the Government to drive the biotechnology industry, the
Malaysian Biotechnology Corporation (BiotechCorp) was also established in 2005
to facilitate the growth and operations under the NBP. Between 2015 and 2020,
the NBP plans to leverage Malaysia’s commercially ready facilities globally.
The Bioeconomy Transformation Programme, endorsed by the National
Bioeconomy Council in 2012 to set up bio-based projects between private and
public sectors, is anticipated to accelerate the growth of bio-economy in the
country. Under this programme, 10 EPPs have commenced operations under the
AgBiotech, BioMedical, and BioIndustrial sectors.
Malaysia attributed 11.9% of its GDP in 2013
to bioeconomy. Under the BTP, Malaysia aspires
to achieve a steady 15% yearly growth that is
expected to contribute up to RM181.2 billion by
2030.
ECONOMIC
Under Malaysia’s Ninth and Tenth National Plans, a total of RM3.57 billion has
been allocated to fund science and technology-related research and programmes.
BiotechCorp offers tax incentives and privileges to qualified companies that
provide value-added biotech or life sciences activities.
Malaysia’s labour force is growing rapidly, reaching 67% of total population in
2013 with an unemployment rate of 3.1% in the same year. 24 The healthy labour
force growth rate is anticipated to attract investors to Malaysia, particularly in
biotechnology and bio-based industries.
SOCIAL
Malaysian Biotechnology Corporation
Department of Statistics Malaysia
25
Tracer Study Ministry of Education
23
24
In 2013, Malaysia was estimated to have produced more than 220,000 graduates,
of which 16% are science graduates.25 This indicates the potential number of
candidates who can be trained and absorbed into the biotechnology and biobased industries.
22
PESTLE
CRITERIA
ANALYSIS OF
MALAYSIA’S BIOECONOMY
The transition to a bio-based economy can only be achieved with science and
research. R&D in bio-related activities are primarily undertaken at academic
institutions such as Universiti Teknologi Malaysia, Universiti Sains Malaysia and
Universiti Putra Malaysia. Several independent bio-related R&D facilities are also
available in Malaysia such as Malaysia Genome Institute and Institute of Medical
Research, encouraging more in-depth studies and new product creation, making
biotechnology and bio-based industries attractive areas for investment.
TECHNOLOGICAL
The Ministry of Science and Technology has allocated substantial funding from
the National Budget towards the ScienceFund, TechnoFund, and InnoFund to
accelerate innovations in the biotechnology value chain
Malaysia established the National Biosafety Board (NBB) to facilitate approvals
pertaining to biotechnology activities and businesses under the supervision of the
Genetic Modification Advisory Committee (GMAC).
The government approved the Biosafety Act of Malaysia in 2009 to oversee and
manage regulations on living modified organisms (LMOs) and products from such
organisms. This can potentially influence the biotechnology industry in Malaysia
to become more stringent in the release or import of LMOs.26
LEGAL
Malaysia complies with Good Manufacturing Process regulations for
pharmaceuticals, and its conditions are suitable for working of multinational and
local biopharmaceutical companies, which will boost the manufacturing industry
In 2012, the Malaysia Biomass Industry Confederation (MBIC) was set up to
execute the action tasks formed under the EU-Malaysia Biomass Sustainable
Production Initiative.
The primary goal of the MBIC is to achieve economic and environmental
sustainability through the growth of the biomass industry in Malaysia.
ENVIRONMENTAL
Governing policies to encourage environmental sustainability initiatives include
the National Biotechnology Policy, the Renewable Energy Policy and Act, and the
Green Technology Policy.
Source: Frost & Sullivan analysis
26
Malaysian Biotechnology Information Centre
23
UNLOCKING JOHOR’S BIOECONOMY POTENTIAL
While the introduction of the BTP is triggering projects
across Malaysia, Johor’s participation in the programme
became significantly more active in 2014. In 2014, there
are 25 trigger projects (total of 95 commercially-ready
projects) initiated under the BTP. Of the total projects, 11
of them are located in Johor. Despite being a new player
under the BTP, about 50% of the BTP projects are secured
in Johor. As the state progress towards 2020, more BTP
trigger projects are expected to be secured in Johor.
J-Biotech is confident of boosting investments in the
bio-based and biotechnology sectors in the state. The
Corporation set a target to secure up to RM500 million
in investments in 2015, which is more than 10 times the
previous year’s value. From 2008 to the end of 2015,
about RM2.3 billion of cumulative investments were
secured by J-Biotech. By 2020, J-Biotech aims to achieve
a total investment of RM3 billion in these industries.27 To
achieve this target, J-Biotech is collaborating with multiple
government agencies and multinational corporations
to promote Johor’s unique, attractive and competitive
offerings to the region.
KEY GROWTH DRIVERS OF THE BIOTECHNOLOGY
INDUSTRY IN JOHOR
27
J-Biotech
24
- Johor’s GDP (2014): RM76.3 billion
- Total investments in Johor (2014): RM21.1 billion
- Johor’s GDP (2015): RM93.7 billion
- Total investments in Johor (2015): RM30 billion
The expansion of Johor’s bioeconomy landscape is
largely based on multiple initiatives by both Federal
and State agencies via a state-level framework
of policies and action plans, optimistic economic
outlook, and connectivity and accessibility to
25
both domestic and global trade. Improvement is
being made in terms of establishing state-specific
regulations, boosting R&D in the biotechnology
sector, and producing a highly-skilled talent pool to
encourage further growth of the industry.
KEY ENABLERS OF JOHOR’S BIOECONOMY
The Johor State Government is moving towards creating a sustainable green state to
support the initiatives and development in biotechnology and bio-based sectors.
BiotechCorp established Bio-XCell Sdn Bhd, a subsidiary operating a biotech industrial
park in Iskandar, Johor. The development aims to promote the growth of bio-based
industries and manufacturing facilities in the state.
Iskandar Regional Development Authority (IRDA) is tasked to promote the growth of
sustainable infrastructure and businesses in Johor’s new metropolis, Iskandar Malaysia.
KEY
INITIATIVES
J-Biotech was established by the state authorities to facilitate local and foreign
investments as well as stimulate the growth of biotechnology and bio-related sectors
in Johor. J-Biotech also collaborates with UM Land on the upcoming Johor Halal Park
to provide state-of-the-art facilities and infrastructure for prospective investors.
Johor has secured 11 trigger projects under the BTP that are expected to contribute to
Malaysia’s optimistic bioeconomy outlook.
MIDA provides tax incentives for new investments in Iskandar Malaysia.
BiotechCorp offers benefits such as tax incentives, funding support, bill of guarantees,
and capacity building programmes to Bio-Nexus companies regardless of the type of
investment.
INCENTIVES
IRDA also provides corporate tax exemption incentive for 10 years to IDR status
companies which have been approved to carry out business in an approved area within
Iskandar Development Region.
Johor has a strong focus on education and talent training, with three public universities,
nine private institutions, 28 training facilities, and three polytechnics.
In 2013, the state produced nearly 60,000 science and non-science graduates.28
Up to 46% of Johor’s total population could potentially contribute to the workforce of
the state.29
TALENT
There is an increasing demand from the manufacturing and industrial sectors for semiskilled graduates in Johor that is currently being addressed by the Johor Bio Talent
Programme, an initiative by J-Biotech.
Biotechnology R&D is mainly carried out at universities in Johor, such as Universiti
Teknologi Malaysia and Universiti Tun Hussein Onn Malaysia, and several other
independent research facilities.
TECHNOLOGY
DEVELOPMENT
28
29
Tracer Study Ministry of Education
Department of Statistics Malaysia
R&D activity is an underpenetrated segment of the biotechnology industry in Johor
which indicates the opportunities available for investors to set up R&D facilities in
Johor.
Source: Frost & Sullivan analysis
26
GROWTH INITIATIVES FOR JOHOR’S BIOECONOMY
DEVELOPMENT OF SUPPORTING INFRASTRUCTURE
Several segments in the biotechnology industry require the application of advanced
biotechnology to produce high value products. J-Biotech and UMLand is working
together to set up the Johor Halal Park which will house the state-of-the-art R&D facilities
in order to ensure that the advanced biotechnology sector continues to grow in Johor.
Opportunities are also available for investors such as Contract Research Organizations
(CROs) and Contract Manufacturing Organizations (CMOs).
PROVISION OF FUNDING AND INCENTIVES
Access to funds is a core component of a successful biotechnology sector. The provision
of seed funding that is specific for biotechnology and bio-based industry will boost the
growth of the sector. Currently, there are no bioeconomy specific incentives, however,
several agencies offer non-bioeconomy specific incentives to investors in Johor. For
instance, BiotechCorp provides selected benefits to Bio-Nexus companies in Johor, while
MIDA provides attractive tax breaks to developments in the Iskandar Malaysia region.
HUMAN CAPITAL ALIGNMENT
As the NBP moves into commercialisation phase, the state is looking at training and
supporting bio-entrepreneurs and scientists to be aligned to regional and global best
practices with R&D that is market-driven. Building expertise in niche biotechnology
areas such as molecular biotechnology, regenerative medicine and biofuel through local
and international experts is developing expertise which may not have been available
previously. Johor’s young population is projected to create substantial talent pool
availability in the near future. Johor Bio Talent Programme, an initiative by J-Biotech,
provides comprehensive industry relevant trainings to employable graduates to existing
biotechnology industries.
DEVELOPMENT OF CHANNELS TO PROMOTE BIO SMEs
Bio SMEs, primarily in the AgBiotech sector, will significantly contribute to Johor’s
bioeconomy. The J-Biotech-led Bio SME Programme is a useful platform to assist and
provide Bio SMEs with suitable channels to market their products. The model employed
in Johor enables potential investors to act as anchor companies and support the Bio
SMEs in Johor to better market their products and services.
27
THE JOHOR BIOECONOMY
ACCELERATING JOHOR’S BIOECONOMY GROWTH
Currently, biotechnology and agriculture are the
primary drivers of Johor’s bioeconomy. The growth
potential of Johor’s bioeconomy can be measured
by the estimated Gross Domestic Product (GDP),
Foreign Direct Investment (FDI), Domestic Direct
Investment (DDI) and Job Opportunities.
Source: MIDA, Bioeconomy Transformation Programme (2014) by BiotechCorp, UPENJ,
Frost & Sullivan analysis
28
JOB OPPORTUNITIES
In 2014, approximately 5,942 projects making
up the direct investments are expected to create
178,360 job opportunities in Malaysia covering all
industries, of which many belong to high technology
and high value-added industries. Of this, the
services sector accounts for the largest share with an
estimated 98,540 job opportunities, followed by the
manufacturing sector with 78,340 job opportunities,
and the primary sector with 1,480 employment
opportunities.
In 2015, MIDA estimated more than 1,300 jobs to
be generated from investments made under the biobased and biotechnology industry in Johor.
JOHOR BIOECONOMY FOCUS OVERVIEW
The National Biotechnology Policy, under the purview of BiotechCorp, has earmarked three focus areas,
namely AgBiotech, BioMedical and BioIndustrial, as key contributors to building the nation’s bioeconomy.
At the state level, J-Biotech has identified five focus areas to drive Johor’s Bioeconomy:
AgBiotech
BioMedical
BioIndustrial
FOCUS
AREAS
Bio-based
Waste to Wealth
AgBiotech
Agriculture and food production mainly drive Johor’s
economy due to the abundance of raw materials
and arable land. AgBiotech is the most mature and
developed segment under the Johor Bioeconomy
Focus Overview. It is also a key sector of the Johor
State Government’s aspirations to transform the
state’s agriculture and food production into a thriving
industry by 2018. To further develop and add value
to the agriculture and food production industry
in Johor, the Johor State Government is working
closely with other agencies to attract investments
from foreign and domestic players.
Although most investments for AgBiotech are placed under Bio Desaru Sdn Bhd, a subsidiary of J-Biotech,
there are initiatives being spearheaded by other agencies as well. Ongoing AgBiotech projects in Johor
include:
Rentas Saga Sdn Bhd has invested in Bio Desaru Sdn Bhd, for the monodon grow-out and hatchery
projects, amounting to RM350 million of total investments. The investment from this project is currently
the largest in the Bio Desaru Organic Food Valley.
Five projects in Johor under the purview of the Bioeconomy Community Development Programme
(BCDP), initiated by BiotechCorp and J-Biotech. The projects include a honeybee farm developed
by Flora Bee Hive Enterprise Sdn Bhd; a dairy farm to be developed by Holstein Milk Company Sdn
Bhd; a herb farm developed by BioAlpha Sdn Bhd; and a hybrid corn farm by Green World Genetics
Sdn Bhd. These projects are expected to generate an average income of RM3,000 each to about 100
farmers in 5 years.
29
In 2014, World Green Biotech (WGB) Sdn Bhd and the Shandong Academy of Agricultural Sciences
(SAAS) signed a Memorandum of Understanding (MoU) on R&D of edible fungus cultivation. To date,
approximately RM20 million has been invested in the cultivation of King Oyster mushrooms in Kota
Tinggi.
Until
2015,
accumulated
investments
of
approximately RM2 billion have been recorded
under Johor’s AgBiotech segment, making it
the most active and thriving sector in the state’s
bioeconomy. Although the AgBiotech segment in
Johor is considered well-developed, various R&D
and commercial opportunities exist as the sector is
currently employing conventional crop production
methods. Significant opportunities exist to increase
the adoption of new agricultural practices and
crop and other farm output yield improvements
under the AgBiotech segment. There is huge
potential for industry players possessing advanced
biotechnology know-how such as technologies to
develop environmentally friendly biofertilisers and
soil enhancers, efficient crop cultivation method or
high-quality seeds. Livestock is another area under
AgBiotech which presents tremendous opportunities
for prospective investors with the growing demand
for high-quality livestock breed and feed.
BioIndustrial
Realising the potential of biotechnology application
in the industry, the state is eager to look into the
possibilities of generating industrial products and
processes via a set of practices that use living
cells (such as bacteria, yeast, algae) or component
cells like enzymes. Bioremediation, fine chemicals,
speciality chemicals and bioprospecting are the key
elements of the BioIndustrial segment.
Bioindustrial is a key focus segment in Johor, with some investments taking place in the Bio-XCell
biotechnology park and ecosystem facility located in Iskandar Puteri, Johor.
In 2014, a biotechnology company, Verdezyne Inc, together with Sime Darby Plantation announced
a collaboration with Bio-XCell to build the first commercial-scale renewable chemicals manufacturing
plant. The US-based company plans to establish and operate the world’s first processing plant for
renewable feedstock derived-dodecanedioic acid (DDDA) plant in the Bio-XCell biotechnology park
in Iskandar Puteri, Iskandar Johor and estimates that 25% of its products will be bought by a Dutch
partner. The development of the plant will bring in a total investment of RM250 million into Johor.
Due to its vast scope, the bioindustrial segment
presents diverse opportunities for investors to
produce value-added industrial products. Food
manufacturing is an area under the BioIndustrial
segment that can be penetrated by industry players
that are looking to invest in Johor. The active
agriculture sector in Johor reflects the abundance
of raw materials for investors to venture into food
manufacturing to produce food ingredients, flavours
and nutraceuticals. Another area of interest is
bioprospecting, which is the search for wild species
with valuable genetics that might improve crop and
have therapeutic values. There is evident opportunity
for bioprospecting as Johor is rich in both terrestrial
and marine biodiversity.
BioMedical
Biomedical is another focus area in Johor’s
bioeconomy, with several high-impact investments
in the segment. The state aims to use living cells
and cell materials to research and produce highvalue pharmaceutical and diagnostic products that
help treat and prevent human diseases. Under this
segment, investments in Contract Manufacturing,
Contract Research, Contract Research and
Manufacturing Services, Medical Devices, Stem Cell
and Tissue Engineering are amongst the main focus
areas.
30
High-impact investments in Johor under the biomedical segment include:
A substantial investment by Biocon Ltd that has set up a biotech manufacturing plant in the Bio-XCell
biotechnology park. The company has invested RM592mil in establishing an insulin, monoclonal
antibodies, other high-end biologics and therapeutics facility that is expected to generate job
opportunities in Johor. The investment showcases Malaysia’s strengths in high-end biopharmaceutical
manufacturing and will attract more foreign investors to the state.
GN ReSound, a global leader in innovative hearing technologies from Denmark has launched its
newest manufacturing and distribution facility in Kulai, Johor. The facility will serve as GN ReSound’s
global production capacity and distribution hub for the region. Approximately 450 jobs will be
generated from this investment.
A medical and interventional devices company based in India, Opto Circuits, has set up a multi
parameter patient monitors production facility in Johor Bahru.
Johor can leverage on the existing industry
operations and supporting infrastructure to attract
biomedical companies. Strong logistics, proximity
to international airports, strong human capital
development programmes and other strong
government incentives and support makes Johor a
strong value proposition for biomedical companies.
Biotechnology parks such as Bio-XCell and the
upcoming Johor Halal Park provide the required
facilities to support R&D and production activities for
prospective investors.
Bio-based
The bio-based segment is focusing on the
manufacture of material intentionally made from
substances derived from living (or once-living)
organism (biomass). Several target products of this
industry are biofuels or energy sources, bioplastic,
oleochemical and biomaterials. The handful of
investments in the sector nationwide are prompting
the Government of Malaysia to include bio-based and
oleochemical production as one of the nation’s entry
point programmes. In Johor, the bio-based segment
continues to flourish with lucrative investments that
include the following:
New investment in 2015 by Green & Smart Sdn Bhd for a biogas plant that will utilise biomass,
namely palm oil mill effluents. This project is one of the BTP trigger projects and has contributed
RM54.4 million of investment to Johor’s bioeconomy. About 68 job opportunities are expected to be
created from this project by 2020.
By 2016, Johor is expected to host a biomass refinery that will convert oil palm biomass waste into
high-value green chemical for numerous industries including pharmaceutical, materials and energy.
The biomass plant is to be developed by MYBiomass Sdn Bhd, a joint-venture Sime Darby and Felda
Global Ventures, with funding from the Malaysian Industry-Government Group for High Technology
(MIGHT). This project will bring approximately RM512 million of investments and generate revenues
up to RM100 billion by 2025.
More investments are expected to be secured in
Johor under the bio-based focus segment. Due
to increasing agricultural activity, biomass from
plantations such as oil palm and pineapple are
abundant in Johor. The accessibility of raw materials
indicates the tremendous opportunity available in
the bio-based segment for companies that possess
the technology to convert biomass into value-added
products.
31
Waste to Wealth
Johor encourages investments that promote the
use of biomass, green technology and sustainable
activities. Under the waste-to-wealth segment,
materials that are considered waste will be
converted to value-added products utilising variable
technologies for wealth. The focus areas of this
segment include compost, recyclables and biofuel.
Although the waste-to-wealth segment is at its inception, several small and medium enterprises (SMEs) are
already showing strong interest to invest in this segment.
Current projects include investments from SMEs such as Builders Biomass Sdn Bhd that operates a
manufacturing factory converting agricultural waste into BiOEn pellets and Global Fibre Sdn Bhd
that produces biomass fuel from palm biomass fibre, one of the largest byproducts of palm plants
in Johor.
Despite the waste-to-wealth industry being at a
nascent stage, it has shown real potential thus far
with more than RM500 million worth of accumulated
investments anticipated by 2016. As Johor moves
towards becoming a sustainable and green state,
the objective encourages the participation of
potential investors in the waste-to-wealth sector.
Opportunities are extensive for green technology
industry players as there are approximately 12 waste
disposal sites that could benefit from advanced green
technologies. Johor is the biggest palm oil producer
in Malaysia. The abundance of palm oil by-products
reflects the immense possibilities to convert this
agricultural waste into value-added products.
32
J-BIOTECH INITIATIVES
J-Biotech’s initiatives are aligned with a focus on two areas; to develop the ecosystem for Johor’s bioeconomy
and facilitation of special projects in biotechnology and bio-based sectors. The two main focus areas of
J-Biotech’s initiatives are:
J-BIOTECH’S INITIATIVES
FOCUS AREAS
Johor Bioeconomy Ecosystem
Development
KEY INITIATIVES
Johor Bio-Talent Development Centre
Bioeconomy Community Development Programme (BCDP)
Bio SME Programme
Bio Desaru
Facilitation of Special Projects
Johor Halal Park
Biodiversity
Detailed descriptions of J-Biotech’s initiatives are illustrated in the following segments.
JOHOR BIOECONOMY ECOSYSTEM DEVELOPMENT
The Bioeconomy Transformation Programme (BTP)
was announced in 2012 by the Honourable Prime
Minister of Malaysia to transform the country into
a global and high-income bioeconomy by 2020.
The fundamental vision of the BTP is to elevate the
country to a developed-nation status, targeting
Gross National Income (GNI) per capita of RM48
billion. To achieve this, approximately RM50 billion
in investments are anticipated in the industry,
potentially creating 170,000 new jobs by 2020.
Recognising the emerging R&D and investment
opportunities under the BTP, J-Biotech has
embarked on a developmental growth phase to
transform Johor into a thriving bioeconomy hub,
considering the critical success factors to create a
viable and robust ecosystem.
Core components of the ecosystem include
developing bio-based SMEs; intensifying R&D and
technology efforts; the Bioeconomy Community
Development Programme (BCDP), a communitybased contract farming initiative that facilitates
technology know-how transfer to improve local
community skills and market chain; and the Johor
Bio Talent Development Programme, all of which are
interdependent.
33
JOHOR BIO-TALENT DEVELOPMENT CENTRE
...aims to address competency gaps, facilitate
talent development for the biotechnology
and bio-based industry with knowledge and
technology sharing, promote entrepreneur
development, and stimulate R&D.
Background
Established in February 2015, the Johor Bio
Talent Development Programme aims to address
competency gaps, facilitate talent development
for the biotechnology and bio-based industry
with knowledge and technology sharing, promote
entrepreneur development, and stimulate R&D.
An initiative by J-Biotech, the Johor Bio Talent
Development Centre intends to produce industryready talent pool to meet the needs and specifications
of the biotechnology industry. The Ministry of Higher
Education collaborates with the Johor Bio Talent
Development Centre by providing funds through the
Industry Centre of Excellence (ICoE) Biotechnology,
as well as to coordinate programmes with the
relevant public institutions of learning.
The Johor Bio Talent Programme has outlined the following objectives to fulfil the State Government’s vision
of enhancing the competitiveness of human capital in Johor.
To develop national human capital
resources at all levels of study
including school leavers, certificate
holders,
undergraduates,
and
postgraduates.
To boost strategic relationships
between J-Biotech, industries,
institutions of higher learning,
and agencies for human capital
development and technologysharing initiatives.
To facilitate a continuous supply
of competent workforce for the
bioeconomy industry in Johor.
To produce a readily deployable
talent pool that meets the
requirements and specifications of
the industry.
Vision of the Johor Bio Talent Development Centre
The Johor Bio Talent Development Centre has the following vision:
To produce industry-ready talents at all levels for the nation for the biobased and biotechnology sector.
To support human capital development initiatives to realise the vision of
Johor as a high-income state.
34
Main Functions and Focus Areas
Anticipating the rapid growth in bioeconomy, the
Johor State Government has committed to ensuring
the industry’s sustainability with industry-ready talent
to support biotechnology and bio-based industry
growth through the Johor Bio Talent Development
Centre. The Centre trains students based on industry
specifications and requirements provided by the
industry partners to produce industry-ready and
market relevant candidates for the biotechnology
and bio-based industries.
The Johor Bio Talent Development Centre focuses on four primary areas, namely AgBiotech, Bioindustrial,
Biomedical, and Bio-based industries. Its human capital development targets three segments:
Potential Employees
Training the Trainers
Current Employees
Prospective
employees
will be provided industrial
training
through
a
structured
internship
programme,
talent
development programme
and industry attachment.
Trainers will be trained with
industry-driven modules
to enable them to obtain
industry perspective and
knowledge to enhance
existing courses.
Enhance the skills of
existing employees via the
Certificate
Recognition
Programme.
To improve the suitability of candidates, the
Centre works with leading industry participants
and government agencies, namely, BiotechCorp,
ICoE and the Ministry of Higher Education, as well
as institutions of higher learning such as Universiti
Teknologi Malaysia (UTM), Universiti Tun Hussein Onn
Malaysia (UTHM), Universiti Putra Malaysia (UPM),
Universiti Malaysia Perlis (UniMAP), and Universiti
Malaysia Pahang (UMP). Through these initiatives
and partnerships, the Johor Bio Talent Development
Centre is able to help the industry secure the best
talents, shorten graduates’ assimilation process
within the sector, and increase employability.
35
Current Status
Since its inception, the Johor BioTalent Development
Centre has trained 1,813 candidates based on
programmes, surpassing the targeted 1,600
students to be trained based on programmes for
2015. Of this, about 100 are final-year students,
with 71% finding employment before graduation.
The Centre is partnering with 17 industry partners,
of which 53% are multinational companies. These
industry partners provide the specifications to the
Centre to produce industry driven modules to train
the students ultimately bridging the gap between
industry needs and the skills to offer. The Centre
engages with industry experts to understand their
requirements for human capital before structuring
a training module. Through this partnership the
Centre is able to gauge industry hiring trends and
demands through their projection. Through the
industry partnership and findings obtained from the
in house primary research conducted by the Johor
Bio Talent Development Centre, approximately 30%
of demand for human capital is inclined towards
skilled requirements and 70% is for semi-skilled in
2015. The pattern is expected to remain almost
the same for the next two years. The manpower
requirements based on the 17 industries and the
industry size for 2015 has also been identified by the
Johor Bio Talent Development Centre, where 39%
of the workforce demand comes from multinational
companies while the remaining 61% is required by
the small and medium enterprises. 30
Figure 8: Human Capital Demand by Skills (2015-2017F)
SKILLED
SEMI-SKILLED
2015
28%
72%
2016
16%
84%
2017
22%
78%
Note: The demands shown in the chart are based on the discussion with 17 industry players. It may change from time
to time due to the fluidity of the demand.
In collaboration with the industry players, Johor Bio Talent Development Centre is also able to lay out the
specifications of market-ready talents required by the industry.
Figure 9: Specifications of Market Ready Talent based on 2015 Industry Engagements
Understanding of HALAL guidelines
Food Safety Management
Food Technology
Knowledge
and Exposure
Food Defence (training from industry expert)
HPLC
cGMP
GCMS
Biosafety
Waste water management in biotechnology
sector
Supply Chain and Logistics Management
Integrated Pest Management
Boiler Certification
30
JBTDC Industry Database, J-Biotech Strategic Planning Department Secondary Research
Knowledge
in Laboratory
Equipment
36
Areas of Development for the Johor Bio Talent Development Centre
Expansion of Semi-Skilled Talent Pool
Obtaining an adequate pool of semi-skilled
candidates to be trained under its programme is one
of the key development areas for the Centre. Most
potential trainees are selected from Community
Colleges, Polytechnic Colleges, and Federal Land
Development Authority (FELDA). Due to the high
employability rate and demand from the industry,
most semi-skilled graduates are hired by the
industry even before the candidates graduate, as
the requirements are slanted towards semi-skilled.
Demand for this talent pool is pervasive; about
70% of the required talent pool is semi-skilled. This
is due to most manufacturing companies are semiautomated and require a semi-skilled workforce to
support production and operations. To address this
issue, the Centre is working to enhance engagement
levels with prospective training institutions to expand
the talent pool for semi-skilled requirements.
Bridging Gaps with Industry
There is a significant gap between industry demand
and availability of suitable talent, presenting immense
opportunities for the Johor Bio Talent Development
Centre to bridge this gap and develop Johor’s
bioeconomy. There is tremendous scope for growth
due to the buy-in from the industry and the Centre’s
ability to produce industry-specific talent based on
requirements, especially for existing industries.
Developing New Programmes and Initiatives
Johor Bio Talent Development Centre consistently
devises and structures programmes and initiatives
to develop these areas by understanding the
specifications and requirements of the industries
involved in this initiatives. In the long term, the
Centre plans to embed the sector specifications
into the university syllabus and courses to equip
graduates with critical skills required by the industry.
Programmes Organised by the Johor Bio Talent Development Centre
Throughout 2015, the Centre launched several
initiatives to reach out to employable graduates
and train these graduates based on industry
requirements. Outreach programmes have been
organised at educational institutions such as the
Universiti Tun Hussein Onn Malaysia (UTHM) and
Universiti Teknologi Malaysia (UTM). The initiative
has been successful in connecting with employable
graduates from first year onwards. The Centre
facilitates industry-driven training to students
from first to final year via a structured internship
programme. Apart from training, the graduates can
also benefit from lectures by leading experts and
subject matter experts from the biotechnology and
bio-based industries on the requirements of the
workplace.
The Centre recently organised an event with Majlis
Profesor Negara and several industry players to
address the gaps currently present between the
industrial needs and the available talent pool,
while promoting the initiatives by Johor Bio Talent
Development Centre.
To ensure the continuity of the Centre’s success, there
are several programmes in collaboration with other
agencies in the pipeline to be executed in upcoming
years through collaborative efforts.
37
BIOECONOMY COMMUNITY DEVELOPMENT PROGRAMME (BCDP)
Background
The
Bioeconomy
Community
Development
Programme (BCDP) in Johor was launched in 2014 by
the Menteri Besar Johor, Y.A.B Datuk Seri Mohamed
Khaled Nordin, in conjunction with the BioMalaysia
2014. The Prime Minister, the Honourable Dato’ Sri
Mohd Najib bin Tun Abdul Razak, in his Malaysia
2014 Budget speech stated that the government
had implemented the BCDP as an initiative to drive
competitiveness and the contribution of bioeconomy
to the nation’s economic growth. The BCDP
programme, under specific projects, aims to develop
idle lands via the application of biotechnology as well
as contract farming to add more value to the agrobased industry and increase the income of farmers.
According to the Menteri Besar of Johor, the
BCDP aspires to create sustainable economic
development propelled by the biotechnology
and bio-based industries in the state. Participating
farmers are expected to earn a minimum of RM3,000
while developing their entrepreneurial skills and
undertaking contract farming via sharing of technology
with BioNexus -status and bio-based companies.
Through collaboration with anchor companies, the
agricultural practices in Johor can be transformed to
increase the yield and value of the state’s agricultural
products. The programme is intended to be an
inclusive model for local communities to partake
in high-value bio-based downstream requirements
of bio-based and biotechnology companies. This
will give them the opportunity to positively impose
themselves as players in the downstream process.
The Bioeconomy Community Development Programme aims to adhere to the following objectives to
achieve the aspirations of the state government:
1
To proceed implementation in 5 districts in Johor with the participation of 100 farmers
2
To increase the rural community’s income in line with Vision 2020 – an average income of
within 5 years.
RM3,000 per month per farmer.
3
To generate economic value from idle land.
4
To provide equitable economic opportunities for Johoreans.
5
To optimise the supply chain dynamics of the industry.
Vision of BCDP
Although the programme is at an early stage, the BCDP aims to fulfil these aspirations:
To develop more idle land in Johor.
To optimise the supply chain of bio-based industries.
To provide income generation activities for local community.
38
Bioeconomy Community Development Programme Model
The BCDP is a collaboration between four parties, each having its own responsibility.
Figure 10: Collaboration Model of BCDP
Develop the concept
Assess anchor companies recommended by BiotechCorp
Facilitate anchor companies to obtain financial support
from various agencies
Obtain land from the State Government
Identify local cooperation for participants
Identify suitable anchor companies and link to
J-Biotech
Provide funding
DISTRICT
COOPERATION
CONTRACT
FARMING
ANCHOR
COMPANIES
Identify suitable local
participants
Raw materials produced
from BCDP
Buy-back guarantee of raw
materials produced from
BCDP
Participant Income
Current Status
The BCDP in Johor is showing positive progress
as it is currently at the end of Phase 1 and about
to move to Phase 2 starting May 2016. In Phase 1,
which commenced in April 2015, idle land suitable
for the pilot plantation was identified. To date, about
320 acres of idle land in Kota Tinggi have been
developed by the BCDP. The project is being led by
DAIRY FARM
Holstein Milk Co. Sdn Bhd
J-Biotech in collaboration with BiotechCorp and a cooperative, Permuafakatan Kota Tinggi. The buy-back
requirements from the Bioeconomy Transformational
Programme (BTP) and BioNexus status companies
have also been finalised in Phase 1. Five companies
serving different segments have been identified as
anchor companies for the BCDP in Johor as below:
NAPIER FARM
Terra Garden Biotech (M) Sdn Bhd
BEE FARM
Flora Bee Hive Enterprise Sdn Bhd
HERBAL FARM
Bio Alpha Sdn Bhd
STEVIA FARM
PureCircle (M) Sdn Bhd
A fair trade mechanism for the BCDP has also been
formulated for the buy-back contracts and funding
requirements. J-Biotech, together with BiotechCorp
and the cooperative, has also ensured buy-ins from
stakeholders, such as farmers, cooperatives and
state agencies, within the Phase 1 of BCDP.
Phase 2, beginning in May 2016, is the implementation
phase where legal agreements between cooperatives,
farmers and anchor companies will be executed,
along with the establishment of the administrative
and supervisory structure for the programme. In
Phase 2, the implementation and development of
contract farming schemes will commence as well.
Phase 3, kicked-off in June 2016, is the growth
phase where the BCDP scheme structure and
implementation will be continuously monitored and
improved. There may be a possible expansion of the
programme to include more farmers, projects and
idle land.
Figure 11: BCDP Roll Out Plan for 2015
PHASE 1: PLAN
PHASE 2: IMPLEMENT
Identify idle land suitable
for pilot plantation
Execute legal
agreements between
cooperatives, farmers and
BTP/BNX companies
Continuous monitoring
and improvement
of scheme structure/
implementation
Establish administrative/
supervisory structure
Possible expansion to
include more farmers,
projects/ crops, and idle
lands
Finalise buyback
requirements from anchor
companies
Formulate fair-trade
mechanism for buy-back
contracts and funding
requirements
Begin implementation
and development of
contract farming schemes
PHASE 3: GROW
Ensure buy-in from
stakeholders (e.g.
farmers, cooperatives,
state agencies, etc.)
APRIL 2015
39
MAY 2016
JUNE 2016
40
Areas of Development for BCDP
The areas of development for the programme are listed below:
Obtaining land from
the State Government.
Identifying a suitable
and competent anchor
company.
1
3
2
4
Selecting suitable
local participants.
Managing and
allocating funding.
J-Biotech, BiotechCorp Malaysia, anchor companies, and district cooperatives are working together
to overcome these challenges effectively. In terms of obtaining land, J-Biotech has managed to acquire
approval from the Kota Tinggi Land Office to proceed with the infrastructure development for the BCDP.
J-Biotech is currently in discussion with BiotechCorp to address fund allocations and management.
41
BIO SMES PROGRAMME
Background
The Bio SME Programme, spearheaded by J-Biotech,
is another initiative that primarily targets the high
number of small and medium enterprises (SMEs) in
Johor’s bioeconomy. Launched in 2014 by the Johor
Menteri Besar, the programme aims to spur the
growth of bio-based SMEs by providing a conducive
ecosystem for the bio-based industry in Johor and
facilitating more local entrepreneurs to engage in
high-value economic chains.
According to the 2011 Census Report on SMEs,
around 650,000 SMEs are operating in Malaysia,
accounting for 97.3% of total business establishments
in the country. The SME Masterplan, released in July
2013, plans to increase the contribution of SMEs to
the economy from 32% of GDP to an estimated 41%
by 2020. From 2004 to 2012, the GDP contribution
by SMEs in the country grew at a favourable rate of
6.6% of the overall GDP growth rate. In Johor, the
CAGR of SMEs’ GDP contribution was 6.9% from
2010 to 2013, exceeding the national GDP growth
of 5.7% and indicating Johor’s progressive economy
stimulating the growth of SMEs.31
The Bio SME Programme plans to promote the growth of Bio SMEs in Johor by adhering to the following
objectives:
1
To facilitate the growth of 50 Bio SMEs in Johor in 5 years, in line with the 7 key enablers.
2
To guide and increase the competitiveness of Johor’s Bio SMEs by addressing the
companies’ immediate business needs and directly contributing to their exponential.
3
To act as a platform to strengthen the biotechnology industry in Johor through the
profiling of Bio SMEs in the state.
Vision of Bio SME Programme
The programme has envisioned realising the following targets:
To develop a Bio SME Park within the Johor Halal Park.
To provide better market access for the identified Bio SMEs
in Johor.
Bio SME Programme Module
J-Biotech is working closely with UTM to ensure
the relevance and effectiveness of the programme
offered to Bio SMEs. The Investment Facilitation
Division of J-Biotech is partnering with the Faculty of
Management, UTM, to identify underlying concerns
31
SME Corp Malaysia
and facilitate the growth of Bio SMEs. As a result of
this partnership, J-Biotech and UTM have conducted
several in-depth studies on Johor’s Bio SMEs and
coordinated several courses using appropriate
modules to guide these companies.
42
The programme serves to guide Bio SMEs in Johor and increase their competitiveness via the following
strategies:
Assist Bio SMEs in improving productivity and marketing
Provide platforms for Bio SMEs that require information to increase their competitiveness
Support Bio SMEs to acquire facilitation and assistance from the Government
Aid Bio SMEs to increase the quality of their products and services
J-Biotech has several programmes to enhance the performance of Bio SMEs in Johor:
GUIDANCE
PROGRAMME
BIOECONOMY
AWARENESS PROGRAMME
The
programme
involves
the
participation of identified Bio SMEs
and aims to create awareness
regarding bioeconomy among SMEs
in the state.
Selected Bio SMEs are mentored
by both government and private
agencies via this programme.
Current Status
To date, 10 Bio SMEs in Johor have been identified
under the Bio SME Programme. Based on the survey
and study conducted on the Bio SME Programme, the
majority of identified Bio SMEs face similar issues. In
2015, the Bio SME Programme is focusing on three
out seven key enablers which include weakness in
planning and managing business, access to funding,
and marketing to help Bio SMEs address various
challenges.
Figure 12: 7 Enablers Identified by the Bio SME Programme
Weakness in
planning
and
managing
business
Technology
acquisition
Marketing
Access to
funding
Accreditation
management
Following
standards
Skilled
workforce
43
Throughout 2015, several activities have been organised with the following objectives to aid the 10 identified
Bio SMEs:
1
To identify and provide an overview of Bio SME profiles in Johor.
2
To understand the challenges Bio SMEs face and the facilitation they require.
3
To provide a platform for Bio SMEs to exchange opinions and ideas
4
To help Bio SMEs understand effective business management and marketing techniques.
5
To equip Bio SMEs with an in-depth understanding of basic accounting and funding by
government and private agencies.
Areas of Development for Bio SME Programme
Several areas of development have been identified in the programme:
To gather more information on the SMEs that currently operate in the bio-based
industry.
To increasing awareness among SMEs on their involvement in the bio-based industry.
J-Biotech has a strong programme to identify and
select the relevant SMEs and track their progress and
contributions to the bio-based industry. J-Biotech is
collaborating with agencies such as the Entrepreneur
Development Centre (EDC), the Department of
Agriculture and the Ministry of Domestic Trade, CoOperatives and Consumerism to identify and actively
promote the BioSMEs and their bio-based products.
44
J-BIOTECH’S SPECIAL PROJECTS
Several special projects have been coordinated by
J-Biotech to attract investments and further develop
the growth of bioeconomy in Johor. To date, three
projects have been initiated, which are the Bio Desaru,
Johor Halal Park and Biodiversity. Apart from Johor
Halal Park, which is still in development phase, both
Bio Desaru and Biodiversity have shown tremendous
progress and have contributed significantly to the
growth of Johor’s bioeconomy.
BIO DESARU
Background
Bio Desaru is an initiative by J-Biotech to develop
Johor’s Integrated Bio-Agriculture (AgBiotech) sector.
As a motion to set a new benchmark and to be a role
model for Malaysia’s agricultural industry, the Johor
State Government has allocated approximately
9,000 acres of land in Desaru, Kota Tinggi district,
to be developed as Bio Desaru The Organic Food
Valley (Bio Desaru). The organic food valley project is
located a short distance to the Senai Airport and can
be easily accessed via the Senai-Desaru Expressway.
The state envisions Bio Desaru as eventually evolving
into a Regional Organic Food Hub and Agro-Tourism
Centre, significantly contributing to the growth of
the agriculture industry and bioeconomy in Johor.
Bio Desaru comprises of the development of the main
Integrated Biotech-Driven Agro-Food Production
Hub in Johor which involves activities related to BioAgriculture, Bio-Aquaculture, Bio-Livestock, and BioTourism. It complements Johor’s efforts to intensify
the quality food value chain through the extensive
and efficient application of modern technology
in commercialised farming, and due focus on BioSecurity and eco-conservation as its mission and
vision.
Bio-Security is a disease barrier module that minimises
and prevents the spread of disease or infection. It
involves multiple compliance requirements at the
farm level. Components include a Bio-Security Buffer
Zone, Bio-Security Check Point, Bio-Security Audit,
Bio-Security Quarantine Zone, and Bio-Security
Services.
With a focus on developing commercial-scale farming,
Bio Desaru aims to attract local and international
investors for technology sharing collaboration and
encourage modern practices in upstream activities.
J-Biotech is also promoting Bio Desaru as the State
Biotech-Driven Agro-Food Production Hub and
a one-stop centre for organic and AgBiotech farm
produce.
Future Vision of Bio Desaru
As Bio Desaru continues to develop, it has these visions for the future:
To become a regional Integrated Biotech-Driven Agro-Food Production
Hub and Bio-Tourism destination of choice.
To establish a complete agri-bio infrastructure with Bio-Security compliance
in Johor.
J-Biotech, through its Food Programme Cluster led
by Bio Desaru Sdn Bhd (BDSB), has attracted several
national and international anchor companies as
investors for food-based production and upstream
activities. Investing companies are recognised
under existing programmes or incentives offered by
the relevant ministries or agencies. Accreditations
include the BioNexus status offered to companies
under the Malaysian Biotechnology Corporation, and
the Anchor Company status offered by the Ministry
of Agriculture and Agro-Based Industry through its
National Key Economic Area (NKEA) programme.
BDSB, as the Master Developer of Bio Desaru,
is responsible for the development of common
infrastructure and the overall development of Bio
Desaru. In facilitating the project development,
BDSB provides services to investors through its
One-Stop Agency (OSA) for project development
assistance and support. It has also set up the BioSecurity Farm Committee (BSFC) as a platform for
investors to present project updates or issues. A BioSecurity Steering Committee (BSSC) has also been
formed, under which heads or directors of relevant
technical departments and agencies from both the
45
State and Federal levels provide advice, references,
and support, particularly in regard to Bio-Security or
consignment issues, and for project development
and requirements. The integrated Bio-Security
practised in Bio Desaru aims to safeguard the
quality and integrity of products produced by key
market participants.
As per the Masterplan, Bio Desaru emphasises the development of food-based upstream activities across
the following four main clusters to be established in the Organic Food Valley:
BIO-AGRICULTURE
BIO-AQUACULTURE
BIO-LIVESTOCK
BIO-TOURISM
Land is divided based on the suitability and requirements of the projects. Under the Bio-Tourism initiative,
land that is deemed not suitable for upstream activities is developed, while wellness and eco-conservation
concepts are applied to promote nature-friendly and bio-wellness projects.
Current Status
To date, there are 27 committed projects that have
been established through collaboration agreements
with investors for upstream activities. Approximately
30% of these projects are complete and currently
operational. These include the largest Vanamae
Shrimp Hatchery by Asia Aquaculture (M) Sdn Bhd;
the Swiftlet Birdhouse project by Swiftlet Garden
Sdn Bhd; Grand Parent Stock Poultry by Leong Hup
(GPS) Sdn Bhd; Layer Poultry by PK Agro-Industrial
Products (M) Sdn Bhd; Herbs Farm by BioAlpha
(Johor Herbal) Sdn Bhd, a BioNexus status company;
Organic Pepper Farm by J-Biotech Onego Sdn Bhd;
Matag Coconut Farm by BD Palmae Sdn Bhd; and
the Aloe Vera Farm by PIJ Plantation and Agriculture
Sdn Bhd.
Most other projects are under construction, including
the Hybrid Grouper project by RE Millennium Sdn
Bhd; Integrated Shrimp Farm by JEFI Aquatech
(Desaru) Sdn Bhd; Triploid Oyster Farm by Tropical
Oyster Sdn Bhd; Premium Grouper Project by LH
Aquaculture Sdn Bhd; Integrated Deer Farm by SLK
Gemilang Sdn Bhd; AFS Dairy and Breed Farm by
The Holstein Milk Co. Sdn Bhd, an Anchor Company
under the NKEA programme; a Dairy Farm by RM
Inter-Trade Sdn Bhd; Pitaya (Dragon Fruit) Farm by
Integrasi Teguh Sdn Bhd; and a Matag Coconut
Plantation by J-Biotech LH Agriculture Sdn Bhd.
In 2015, several new projects for upstream activities
were secured and signed with investors including the
Monodon Shrimp Hatchery and Grow-out projects
by Rentas Saga Sdn Bhd, the Integrated Livestock
Farm by ST Farm Sdn Bhd, and the Pandan Coconut
Farm by PK Agro Sdn Bhd.
Bio Desaru started developing its Bio-Tourism project
in 2015 by signing an agreement with KOREF Desaru
Leisure Farm Sdn Bhd to develop an Eco-Tourism
and Organic Farm that highlights eco-conservation
and organic crops plantation. The initiative is likely
to attract local and foreign visitors who enjoy nature
and farming activities.
In line with these projects, BDSB is focusing on
the development and completion of common
infrastructure, such as the construction of BioSecurity Buffer Zone and Check Point under BioSecurity infrastructure, common infrastructure for the
Aquaculture Cluster under the NKEA programme,
and securing funds through the Public-Private
Partnership (PPP) Unit to develop the remaining
common infrastructure. As the Master Builder
applying the Bio-Security concept, BDSB consistently
offers and provides Bio-Security services to all its
investors.
46
Investments in Bio Desaru
To date, there are 27 committed projects involving
almost RM1.2 billion of total investments. BioAquaculture activities contribute the highest share
of the investment at approximately RM620 million,
followed by Bio-Livestock activities at nearly
RM380 million. Bio-Agriculture activities contribute
RM240 million while Bio-Tourism (initiated in 2015),
contributes an estimated RM5 million.
The project with the highest investment value is
the Gaharu Plantation by Niagaharuman Sdn Bhd,
accounting for 80% of the total investment in
agriculture. Under the Aquaculture Cluster, there
are three ongoing projects totalling RM197 million
in investments. A hybrid grouper farm project by RE
Millennium Sdn Bhd is the highest contributor to
the total investment under the Aquaculture Cluster
with RM80 million in investments. A total of RM380
million has been invested under the Livestock Cluster,
with seven ongoing projects currently secured in
Bio Desaru. The Mega Poultry (M) Sdn Bhd poultry
(broiler) farm has the highest investment of RM100
million.
Figure 13: Committed Projects in Bio Desaru by 2015
Several new investments have been secured adding
another RM365.8 million to the total investments
in Bio Desaru in 2015. Besides new projects under
Bio-Agriculture, Bio-Aquaculture, and Bio-Livestock
clusters, there are two new investments under the
Bio-Ecotourism cluster.
Figure 14: New Signed Projects in 2015
Source: Bio Desaru
47
Areas of Development for Bio Desaru
Infrastructure
One of the main requirements of Bio Desaru is to
develop common infrastructure to accommodate
all projects and apply the Bio Desaru development
concept in creating an integrated food production
hub. The Buffer Zone and Bio-Security Check
Points are critical components of the Bio Desaru
infrastructure to ensure quality and uninterrupted
production. The infrastructural development is
projected to be completed in the next two to three
years.
Funding
Bio Desaru, in coordination with related investors,
has also secured funding from the NKEA
programme, under the Entry Point Programme (EPP)
#6: Replicating Integrated Zone of Aquaculture
Model (IZAQs) through the Department of Fisheries,
Malaysia, for common infrastructure development of
its Aquaculture Cluster. BDSB is securing funds for
the development of other common infrastructure
components from the Federal Government.
Policy
Inadequate policies or acts pertaining to organic
food production could potentially hinder the
development of Bio Desaru as an Organic Food
Valley and integrated food production hub. As a
result, national, as well as international standards
and guidelines are being adopted to develop Bio
Desaru’s Bio-Security frameworks and policies
Expansion
Bio Desaru is well-positioned to become an
apprentice platform to food safety and security as
well as manage food reserves and contribute to the
food security aspect for the country. There are plans
to expand Bio Desaru to another district in Johor.
Other states and countries have invited Bio Desaru
to set up a similar organic food production hub in
the country using the same model.
48
JOHOR HALAL PARK
Background
The Halal market is flourishing, both globally and
nationally. Investment in the Halal industry is highly
attractive as it could potentially deliver lucrative
returns. The current global Halal product market is
worth more than USD2 trillion annually, of which the
Halal food market accounts for 16% of the global
food industry. In 2013, the global Halal food market
was worth USD1.1 trillion; and is projected to reach
USD1.6 trillion by 2018. Taking advantage of the
high demand in the Halal industry, Malaysia offers
13 Halal standards that are recognised globally
and meet international benchmarks. Malaysia’s
MS1500:2004 has been accepted by the Codex
Alimentarius Commission of the United Nations as
the global Halal standard.32
According to Malaysia’s Halal Development Centre
(HDC), the Halal industry contribution to GDP
in 2013 was estimated to be 5%. The RMK-11
initiatives are expected to generate 3.7% additional
Halal industry contribution to GDP as the country
progresses to 2020, where the GDP contribution by
the Halal industry is projected to reach 8.7%. The
export revenue from Halal SMEs in Malaysia in 2013
as recorded by the HDC reached RM7.01 billion and
is expected to increase to RM19 billion by 2020 with
the RMK-11 initiatives. 33
Given the tremendous potential of the Halal
market, J-Biotech and UM Land has collaborated to
develop Johor Halal Park – Malaysia’s first integrated
international Bio-Halal Industrial Park. The proposed
area of development is situated in Pasir Gudang,
spanning over 350 acres of land, to be developed in
three phases, with RM1.5 billion Gross Development
Value (GDV). The strategic location is optimal for
easy access to established industrial areas and
shipping ports around Johor and nearby Singapore.
With construction set to be completed by 2017,
the park is expected to attract about RM180 million
worth of investments in the first phase. The venture
will receive the support of various government
agencies to make the project a success. The value
add brought by each party to the venture will enable
the project to become the most attractive Halal hub
for multiple building blocks of seamless halal service
and infrastructure provider. J-Biotech will be able to
leverage on its strength as a state GLC to expedite
the implementation of the project through the much
needed approach from the government.
The collaboration to develop the Johor Halal Park is progressing in line with the following objectives:
To provide a conducive halal and bio-based ecosystem to support R&D as well as
commercialisation efforts for halal AgBiotech and food production sectors.
To enable companies to accelerate halal bio-based businesses and commercialisation
activities via the development of facilities that match international standards.
To offer halal facilitation services to investors to address requirements such as locations for
operations, raw materials, incentives and other related services.
Vision of Johor Halal Park
The Johor Halal Park aspires to achieve these objectives in the future:
To become a one-stop global integrated bio-halal park providing key valueadded services and infrastructure.
To promote and provide platforms for SMEs to venture into the global biohalal industry.
To provide international standard facilities and park management services.
To facilitate and integrate local and international halal and bio-based
companies to collaborate for mutual benefits.
To adopt green and energy efficient design as part of an environmentally
friendly theme.
32
33
JT Laboratories Press Conference, 23rd January 2016
Halal Development Corporation
A first-of-its-kind halal integrated park, the Johor
Halal Park is a joint venture between J-Biotech and
UM Land, a premier development company. The
facility aims to serve as a one-stop centre for both
halal and bio-based industries. The park is expected
to host a halal centre of excellence that matches
international standards, as well as clearing warehouse
49
to process materials, exports and imports, a centre
for product packaging, and excellent logistics and
cold-chain services. The Johor Halal Park will provide
well-equipped facilities for industry participants with
an emphasis on bio-based SMEs to attract domestic
direct investments.
The main focus areas of the Johor Halal Park are to:
Promote local Bio SMEs as well as start-up companies in line with
the State Government’s goal of developing local entrepreneurs and
elevating them to a higher level.
Boost the participation of anchor companies and complete the value
chain for the biotechnology industry, providing market access via export
and import of goods and services with the support of local entrepreneurs.
Multiply biotechnology as well as BioIndustrial investments in Johor with
the aim of transforming the state into one of the leading bioeconomy
hubs in the region and to promote the bio-halal sector in Johor.
Based on these functions and priority areas, the Johor Halal Park is split into three phases, shown below:
Figure 15: Conceptual Layout and Major Phases of the Johor Halal Park
JOHOR HALAL
PARK
Source: Johor’s Southern Gateway of the Biotechnology Industry
50
Highlights of the Johor Halal Park
J-Biotech and UM Land aim to develop the Johor
Halal Park into a halal hub of international standards.
The park is to be developed with herbal landscaping
and will comprise of bio-based businesses from
various investors. The HALMAS incentives will
provide the centre with additional benefits and
financial incentives to attract potential investors.
The Park will also be equipped with world-class
infrastructure and facilities and have international
industry linkages for market access, technology and
business collaboration and encourage innovative
industry development.
The Johor Halal Park features several unique aspects to attract prospective investors:
A one-stop industrial centre
10-year tax exemption from Halal Development Corporation (HDC)
Freehold industrial property located along the Malacca Straits
Allowable sale for foreign ownership
Led by both the Federal and State governments
Current Status
In August 2015, UM Land and J-Biotech signed a
Memorandum of Understanding (MoU) with Halal
Industry Development Corp Sdn Bhd (HDC) to
facilitate the development of the first integrated
halal park. The park will be accredited by HALMAS,
to recognise operators of the Johor Halal Park as
being of the highest quality, integrity and safety.
The development of the Johor Halal Park is currently
at Phase 1, covering 50 acres of land to be developed
into a halal and bio-based manufacturing units with a
Halal Center of Excellence. The construction of Phase
1 began in 2014 and is expected to be completed by
2017. To date, about 30% of the development work
on Phase 1 has been completed. Phase 1 has been
conceptualised to house 89 industrial lots, 36 shop
offices, and FWE amounting to RM250 million of the
Gross Development Value.
One component of the Johor Halal Park, the Halal
Analytical Lab, also known as JT Laboratories,
is expected to commence operations in the first
quarter of 2017. The lab is a collaboration between
the Majlis Agama Islam Negeri Johor (MAINJ) and
JBiotech Saintifik Sdn Bhd.
51
BIODIVERSITY
Background
Malaysia is known to be rich in biodiversity and the
country is committed to biodiversity conservation
as part of its development process. In the 10th
Malaysia Plan, the government has planned out
several initiatives to preserve and conserve the
biodiversity. At the state level, a number of studies
conducted have indicated the decline in the
population of several marine species in Johor such
as the dugong, sea horse and giant clam. To ensure
sustainability of the bioecosystem and environment
in Johor, J-Biotech has initiated a biodiversity
conservation research programme. J-Biotech’s
biodiversity R&D and conservation programme aim
to position Johor as a biodiversity-friendly and ecosustainable location where biodiversity resources
are valued, conserved, restored, and wisely utilised
by maintaining ecosystem services, sustaining a
healthy environment, and delivering the essentials
on biodiversity for the whole nation.
Realising that the natural ecosystem is a valuable
and irreplaceable resource for various scientific,
technical, economic, social and many other uses,
J-Biotech is working closely with various parties to
ensure sustainability and common sense becomes
the guiding principle to allow future generations to
have access to the benefits of the diverse natural
ecosystem that have so long been enjoyed by many
people in Johor and the rest of the country.
The focus clusters of the Johor’s Biodiversity and Bioconservation are as below:
Research (R&D)
Conservation
Biodiversity
Education and
Community
Awareness
Corporate
Sponsorship
Programme
Biodiversity
Database
The key objectives of the biodiversity R&D and conservation programmes are:
To multiply efforts in the conservation
research programme for the State’s
biodiversity resources, both terrestrial and
marine, through innovative R&D solutions.
To protect the State’s biodiversity from
depleting bio-resources by implementing
environmental friendly and ecosustainable
development planning.
Vision of the Biodiversity Research Programme
With concerted efforts to advance biodiversity conservation and promote sustainable development,
J-Biotech’s biodiversity R&D and conservation programme envisions to achieve the following targets in the
future:
To continue conserving the state’s biodiversity resources - terrestrial
and marine - through innovative R&D solutions.
To lead the conservation of biological diversity and ecosystem
through upstream and downstream approaches.
·To significantly enrich the state’s biodiversity resources and its
ecosystems, and make them more sustainable and attractive for
eco-development investments.
52
Programmes Conducted by the Biodiversity Research Programme
Most of the programmes carried out by J-Biotech mainly focus on the following aspects:
Increasing community awareness
about
the
importance
of
biodiversity through collaborations
with academic institutions, state
agencies, NGOs and private
organisations.
Sharing information on biodiversity
resources by providing continuous
updates to the relevant State and
Federal agencies and the public.
Organising
community
programmes/campaigns
to
educate and engage the public on
biodiversity.
Strengthening
the
potential
workforce’s knowledge and skills
via consistent professional learning
programmes.
J-Biotech has conducted several biodiversity projects
in collaboration with various companies. The projects
have helped to establish the Johor BioDiversity
Database, or JBioDi, that keeps track of plant and
herbal species in the region, and increase awareness
on the conservation of seahorses and giant clams.
J-Biotech also plans to release short videos for
primary and secondary schools to equip students
with the knowledge, skills and understanding of
biodiversity.
Current Status
J-Biotech have successfully conducted multiple
conservation and R&D projects. J-Biotech has
collaborated with Universiti Sains Malaysia to release
more than 400 giant clam seedlings in Johor. In
another project, J-Biotech helped to cultivate more
than 200 seahorses and released them to their natural
habitat. Since 2008, the programme has been leading
research on marine conservation to identify ways to
protect seahorses and their surrounding ecosystem.
Biodiversity research developed in collaboration
with Universiti Malaysia Terengganu (UMT), and the
involvement of various agencies, open a new chapter
in marine conservation efforts in Johor that includes
commercialisation aspects to generate sustainable
development.
The first phase of the seahorse conservation research
programme has been a success, involving studies
on the breeding activities and nursery, where
seahorses are reared in an artificial environment and
returned to their original habitat later. The second
phase of the research involves the investigation of
downstream value-added activities including the
extraction of bioactive compounds for medical and
clinical purposes.
To protect and preserve the marine environment,
J-Biotech, in collaboration with UMT, is developing
the Johor Seahorse Hatchery Sanctuary at the
Sungai Pulai Ramsar site. The Sanctuary will serve
as a research centre for marine conservation and
development in addition to functioning as a marine
platform for Edu-tourism.
J-Biotech also continuously updates its database for
herbal plants in Johor. Compared to other databases
in the country, the site provides detailed information
on the chemical compounds of herbal plants and the
uses of these plants.
53
Areas of Development for J-Biotech’s Biodiversity R&D and Conservation Programme
While there are ample opportunities, there are still areas of development available for J-Biotech’s biodiversity
R&D and conservation programme in its implementation.
Talent
Due to the nature of research programmes, J-Biotech
requires a pool of talented professionals who have
the necessary soft skills and research expertise. A
shortage of qualified talent could adversely impact
relevant research efforts.
Funding
While the lack of funding does not significantly
hamper the progress of J-Biotech’s project
implementation, it nevertheless remains an area of
development. J-Biotech is promoting investments
from private companies to support its conservation
activities that double up as their corporate social
responsibility programmes.
55
KEY EVENTS HIGHLIGHTS
MOA SIGNING BETWEEN BIO DESARU
SDN BHD AND THE HOLSTEIN MILK
COMPANY SDN BHD
SDN BHD AND KOREF DESARU
LEISURE PARK SDN BHD
FEB 23, 2015
PERTH, AUSTRALIA
AUG 14, 2015
KOREF ECO FARM, KLUANG JOHOR
A memorandum of agreement was signed and
exchanged in Perth, Australia, on February 23,
2015. Bio Desaru Sdn Bhd was represented by En.
Wan Amir-Jeffery bin Wan Abd Majid, the CEO of
J-Biotech Holdings and Bio Desaru Sdn Bhd while
En. Azmi bin Zainal represented the Holstein Milk
Company. The Holstein Milk Company will undertake
cow dairy production activities across 300 acres of
land in Bio Desaru at an expected investment of
RM400 million. The project will enable Malaysia
to reduce its dependence on the import of dairy
products.
Bio Desaru Sdn Bhd signed a MoA with KOREF
Desaru Leisure Park Sdn Bhd to develop an
Integrated Leisure Farm Resort. The collaboration
aims to develop sustainable organic food production
and apply technology from Taiwan Leisure Farm
to enhance sustainability and profitability. The
investment is expected to yield between 10% and
30% annual returns on investment and generate 84
jobs in 30 years.
SDN BHD AND RENTAS SAGA SDN
BHD
APR 7, 2015
KOTA ISKANDAR, ISKANDAR PUTERI
A MoA was signed between Bio Desaru Sdn Bhd
and Rentas Saga Sdn Bhd to develop an efficient
and sustainable shrimp farm in Bio Desaru. Rentas
Saga plans to expand its nucleus breeding centre in
collaboration with the Charoen Pokphand Group, a
shrimp farming company based in Bangkok. Rentas
Saga will also undertake technology transfer of shrimp
breeding, hatchery, and grow-out components
from the Charoen Pokphand Food Group and Asia
Aquaculture. The proposed development is divided
into two components: Grow-Out Farm and Nucleus
Breeding Center & Industrial Hatchery.
MOU SIGNING BETWEEN J-BIOTECH
AND UNITED MALAYAN (UM) LAND
BHD
AUG 18, 2015
BIOMALAYSIA 2015, PWTC KUALA LUMPUR
J-Biotech and UM Land Bhd signed an MoU to
develop the Johor Halal Park at Cahaya Baru,
Johor. The Johor Halal Park aims to spur Johor’s
bioeconomy, as the park is expected to promote
local Bio SMEs, intensify the participation of anchor
companies, increase biotechnology and other biobased investments, and promote the bio-Halal
sector in Johor.
MOU SIGNING BETWEEN J-BIOTECH
AND MAJLIS AGAMA ISLAM JOHOR
Majlis Agama Islam Johor is collaborating with
J-Biotech to develop laboratory analysis focusing
on Halal and biotechnology research. Both parties
will work towards developing the Johor Halalan
Toyyiban Roadmap to address and resolve various
issues in the Halal system.
MOU SIGNING BETWEEN BIO DESARU
SDN BHD AND ALIRAN BUDAYA SDN
BHD
The collaboration aims to result in the development
of basic infrastructure such as clinics, convenience
stores, police stations, Bio Desaru site offices, centres
for semi-processed products and restaurants.
56
FIRST JOHOR BIO TALENT BOOTCAMP
MARCH 21, 2015
UNIVERSITI TEKNOLOGI MALAYSIA
J-Biotech successfully organised the first Johor Bio
Talent Bootcamp providing a platform for students
to look for job opportunities in the biotechnology
industry. Students were encouraged to engage
with various industries and foster industry-relevant
relationships. The event also served as a platform for
companies to promote their organization and hire
the market ready talents.
MINI AGRO JOHOR
MARCH 21–23, 2015
DATARAN BANDARAYA, JOHOR BAHRU
The Mini Agro Johor was held in conjunction with
the Coronation of Sultan Ibrahim Almarhum Sultan
Iskandar of Johor. J-Biotech, together with agencies
under the Ministry of Agriculture and Agro-based
Industry as well as the Chairman of Agriculture and
Agro-based Industry, State of Johor, organised this
event as a platform for entrepreneurs in the agrobased industry and SMEs to promote their products
in the market.
SCIENTIFIC EXPEDITION & MARINE
AWARENESS CAMPAIGN
MARCH 28–31, 2015
MERSING, JOHOR
The 4-day Marine Park Programme and Scientific
Expedition was held in Mersing, Johor, with the
theme “Healthy Oceans, Healthy Planet”. The
campaign was jointly organised by the Department
of Marine Park Malaysia (JTLM), University Malaysia
Terengganu (UMT), J-Biotech, and Johor National
Parks Corporation. The event aimed to create public
awareness on the importance of conservation and
preservation of natural resources, particularly of
underwater creatures. The Scientific Expedition was
carried out on March 29, 2015, lasting 3 days. One of
the highlights of the expedition was the participation
of RV Discovery UMT, a research vessel that carries
out oceanography research.
ROAD TO HARI PELADANG, PENTERNAK
& NELAYAN KEBANGSAAN (NATIONAL
FARMERS, BREEDERS & FISHERMEN’S
DAY) (HPPNK) 2015
APRIL 17–19, 2015
JALAN MAHARANI, MUAR
J-Biotech participated in the Road to HPPNK 2015,
an initiative by the Ministry of Agriculture and
Agro- based Industry to promote its branding and
initiatives such as Johor Bio Talent, the Bioeconomy
Community Development Programme (BCDP), and
the Bio SMEs programme.
JELAJAH BIOEKONOMI JOHOR
APRIL 22 TO JUNE 26, 2015
ASTRO AWANI 501
A 10-episode J-Biotech TV series entitled “Jelajah
Bioekonomi Johor” on Astro Awani 501 focusing on
SMEs operating in the biotechnology industry and
highlighting the progress of Johor’s bioeconomy.
MPN INDUSTRIAL AND INNOVATION
FORUM
APRIL 27, 2015
PULAI SPRINGS RESORT, JOHOR
Jointly organised by the Majlis Profesor Negara
(MPN), J-Biotech, BiotechCorp, and Industry
Centre of Excellence (ICoE), the MPN Industrial
and Innovation Forum provided a platform for
companies and academics from the biotechnology
industry to share industry perspectives to develop
human capital, and knowledge and technology
sharing areas that would progress and benefit the
stakeholders involved.
PROGRAM
GERAK
NEGERI JOHOR
USAHAWAN
MAY 29–31, 2015
ANGSANA, JOHOR
The Entrepreneur Development Centre with MARA
and SME Corp organised the Program Gerak
Usahawan Negeri Johor where J-Biotech introduced
initiatives to facilitate and support SMEs.
JOHOR PAVILION AT BIOMALAYSIA
2015
AUG 17 - 19, 2015
PUTRA WORLD TRADE CENTRE, KUALA LUMPUR
BiotechCorp organised BioMalaysia 2015, where
J-Biotech set up a Johor Pavilion to promote the
development of Johor Bio SMEs at an international
level, particularly to ASEAN countries. This is a
step forward for Johor’s Bio SMEs to expand their
market opportunities and business network, and
identify potential joint product development with
researchers from the industry. The Johor Pavilion
was inaugurated by the Menteri Besar Johor, Y.A.B
Datuk Seri Mohamed Khaled Nordin, at the Merdeka
Hall, Putra World Trade Centre (PWTC), on August
18, 2015.
EXPO MILANO 2015
SEPT 27 - OCT 1, 2015
MILAN, ITALY
J-Biotech was part of the Johor State Delegation to
the Expo Milano 2015, to strengthen its engagement
with prospective Italian and European investors. The
objectives of J-Biotech’s participation are to position
Johor and Malaysia as a global hub for biotechnology
and bio-based investment, increase the visibility of
Johor and Malaysia as a high potential destination for
ventures in biotechnology and bio-based businesses,
and share best practices and technologies of biobased products with the European Union.
JOHOR BIO TALENT BOOTCAMP
OCT 24, 2015
M SUITES HOTEL, JOHOR
J-Biotech organised the second Johor Bio Talent
Bootcamp at the M Suites Hotel to engage students
from Community Colleges, Polytechnic Colleges,
and Universities in the Southern region. The
programme helped to increase students’ awareness
of current biotechnology and bio-based industry
demands and enable industry representatives to
share their expectations with the students. Certified
trainers were also on hand to provide training under
this programme.
57
SEA HORSE BOOK LAUNCH AND
SEA HORSE JUVENILES RELEASING
CEREMONY
NOV 4, 2015
JABATAN LAUT MALAYSIA, WILAYAH SELATAN
J-Biotech together with Universiti Malaysia
Terengganu (UMT) organised a book launch and
Seahorse Releasing Ceremony. The ceremony was
graced by the Sultan of Johor, HRH Sultan Ibrahim
Ibni Almarhum Sultan Iskandar. To celebrate the
launch of the book entitled Seahorses: Heritage from
Pristine Johor Straits, nearly 200 seahorses were
released into their natural habitat in Sungai Pulai. The
seahorses were bred since 2008 with the application
of biotechnology in seaweed-abundant areas along
the Johor Straits, encompassing Sungai Pulai, Sungai
Johor, Kukup and Pulau Sibu. J-Biotech and UMT
have also set up the Johor Seahorse Sanctuary and
Hatchery located in Sungai Pulai, the first seahorse
hatchery in Malaysia.
BIO
KICK-START
PROGRAMME
IN CONJUNCTION WITH AGROJOHOR 2015
NOV 6 - 10, 2015
PUSAT PERTANIAN MODEN, KLUANG
Bio Kick-Start is a collaboration between J-Biotech,
Nouvelles Beauty Centre Sdn Bhd, Holstein Milk (M)
Sdn Bhd, Astronautics Association of Malaysia, Johor
PETROSAINS Centre, and Universiti Tun Hussein
Onn (UTHM). The programme aims to promote
J-Biotech as the prime mover of biotechnology and
biodiversity activities in Johor to local universities
and schools in the state. Students from higher
educational institutions and secondary schools are
encouraged to work towards new research, discovery,
and business opportunities.
58

Johor Bioeconomy Report 2015 - J

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