example of the font size langkawi international smart green city forum 2015 17 october 2015 1

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Langkawi International Smart Green City Forum 201517 October 2015

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Agenda

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• A Regional Approach To Economic Development

• Playing The Role Of Enabler And Facilitator

• Ensuring Inclusiveness And Sustainability

A Regional Approach To Economic Development

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Agriculture Based

Economy

1957 to late 1970s

Resource Led Economy

1980s to mid 1990sKnowledge Economy

Late 1990s onwards

Moving into the knowledge economy

Malaysia’s 5-year plans to head towards Vision 2020


Five regional enablers to drive economic development

Koridor Utara covers 7% of Malaysia’s land area but contributes over 20% of Malaysia’s GDPKoridor Utara covers 7% of Malaysia’s land area, but

contributes over 20% of Malaysia’s GDP

>60%

…most liveable city in Asia

…of tourist expenditure

…of agriculture regions for paddy growing

>30%

8th…of manufacturing exports

Regional development is constantly evolving, owing to the changing needs and circumstances of the community. It is a dynamic process, not a goal.

Historical

Geographical

Social/Cultural

RegionalEconomic

Development Nation Building


Regional programmes cannot work unless they fit the cultural and social context in which they are being implemented. A region’s social and cultural aspects must be understood

Three changing elements that influence regional development

Playing The Role Of Enabler And Facilitator

Enabling Eco-system

Human Capital Development Programmes

NCIA’s Mandate:Created under Act 687, NCIA is the entity mandated to drive the Government’s regional strategies in the context of the economic development agenda

Koridor Utara’s development is driven by four key thrust areas


NCIA’s Mandate:

Council members of NCIA

Created under Act 687, NCIA is the entity mandated to drive the Government’s regional strategies in the context of the economic development agenda


The private sector to spearhead economic development

BusinessesDriver of economic

opportunities

The PublicBeneficiaries

and partners in the delivery of

economic initiatives

AcademiaKnowledge

transfer partners

GovernmentEnabler and facilitator for

economic development

Common Agenda

Shared Measurement

Mutually Reinforcing Activities

Continuous Communication

Backbone Support

Shared vision

Shared results & accountability

Delivery of co-ordinated plan of action via differentiated approaches

Consistent & open communication

Escalation feature, with ability to convene participating organisations

Government Businesses

Academia The Public


Top-down approach

Bottom-upapproach

Institutions are determined by laws written by political leaders.

Institutions arise from social norms, customs, traditions and values of individuals and that written laws only serve to formalise what has already been shaped by individuals.

NCIA has been positioned by Ministries and Agencies (including State and Local Governments) as a regional enabler for their respective programmes. The NCIA

ApproachMembers of NCIA Council and management committees comprise representatives of each of the 4 states. Committees at State level also include NCIA representatives

What happens in the background of each private sector engagement

Government

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Deal flows to catalyse economic growth via private sector endeavour


Why has the private sector been identified to

spearhead economic development?

The Private Sector

Assistance on building arrangements

Job Opportunities

Business Opportunities

Supporting Enablers

Businesses

NCIA Phase 2 Strategy Driven By Key Growth Nodes

The Growth Nodes Strategy is guided by six (6) strategic studies

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Businesses

Snapshot: Economic Impact From Key Growth Nodes

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Lembah Chuping Kedah Science & Technology Park

12,674Total number of jobs created as of 2025

49,321Total number of jobs created as of 2030

RM2.58bGNI contribution per year from Lembah

Chuping’s proposed industries as of 2025

RM72.68bTotal output impact from construction

and operations from 2016 - 2030

Lembah Chuping Kedah

Science & Tech Park

Greater Kamunting

Businesses

Two New Green Initiatives in Koridor Utara

Snapshot: Chuping Valley

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Businesses

Solar Energy Generation

Green Materials

Manufacturing

Halal Industries

Green E&E Manufacturing

Automotive Industrial

E&E Property

There are varied industry applications for Green Materials

Perlis exhibits high levels of solar radiation An increase in the amount of renewable energy investment implies demand

Not all parts of the E&E value chain are extensively undertaken in Penang

There has been growing international demand for halal products

Pharmaceutical goods are higher value added compared to F&B

R&D/Design

Raw/ Intermediate Component Production

Testing/ Packaging/ Assembly

Final Testing/ Packaging/ Assembly

Distribution/ Installation

Proposed Value Chain Focus of Lembah Chuping

Value Chain Focus of PenangLegend:

Average Annual Solar Radiation in Malaysia (MJ/m2/day)

2012 20130

0.5

1

1.5

2

Malaysian Investments in Approved Renewable Energy Pro-jects (RM bil)

RM

bill

ion

2010 2013 20200

20406080

100120

Malaysian Halal Exports 2010-2020e (expected)

RM

bill

ion

(CAGR) ~ 12.9%

(CAGR) ~ 16.3%

Increase of 42%

Pharmaceuticals F&B0.00

0.10

0.20

0.30

0.40

0.50

0.60

Malaysian Value Add Per Gross Output (2012)

RM

RM 0.40

RM 0.15

General E&E Value Chain

Snapshot: Kedah Science And Technology Park

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“To be world-class in the promotion and commercialisation of applied scientific research and technology”

KSTP’s Vision

Businesses

Collaborative efforts with USM, UniMAP, UUM and also KUISAS have enabled NCIA to set up knowledge receptacle and knowledge transfer initiatives in Koridor Utara

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Ensuring Inclusiveness And Sustainability

Leveraging on the institutions of higher learning

GRADUATE/ POSTGRADUATE

INTERNS: to enhance their personal &

professional development.

ACADEMIA: to take in knowledge from

industry/community into their teaching,

R&D and consultancy activities.

INDUSTRY: to utilise the resources of IPTAs

to enhance their capabilities.

COMMUNITY: to benefit from the

knowledge generated in IPTA to improve

quality of life within the community.

Benefiting communities in Koridor Utara

Academia


• When a company locates itself in a particular area, we are presented with various avenues for collaboration.

• The normal view is “what is good for a company is also good for the community”, as the company would be able to create jobs and business opportunities.

The NCIA Shared Value Concept (SVC): A new way forward?

Getting the local communities involved

But SVC states that what is good for the community can also be good for the company.

The Public


ECONOMIC IMPACT:a) Reduced urban-rural

disparitiesb) Equitable distribution of

sustainable economic opportunities

c) Increased household incomes, job opportunities, business profitability,

and standard of living

SOCIAL IMPACT:a) Improved community well-

being b) Enhanced collaborations

with multiple stakeholdersc) Improved relationships

between the business community and the people


The Public


Re-imagining the supply chain

Re-conceiving products & markets

Re-thinking engagement models (eg clustering) to ensure economic spill-overs to local communities


The Nestle Paddy Club represents a real game changer for paddy growing

The Public

‘Raw material/ paddy straw

UPSTREAM

Contract farmers

(150 pax) Nestlé has access to a reliable, traceable and controllable source

of rice for infant cereals manufacturing

Workers(150 pax)

Nestle-appointed

Milling Co 1

Nestle-appointed

Milling Co 2

MARKETING(Finished goods and ready for consumption) through

milling company

Paddy straws to be processed into organic fertilizer

SVC :i. Nestle will buy back all

paddy production from farmers.

ii. Nestle provide Agro Organica , an organic fertilizer to their farmers at discounted prices.

UPSTREAM DOWNSTREAM MARKETING

DOWNSTREAM(Nestle products &

organic fertilizer from paddy straws)

Nestle Paddy Club

The Public

(I) Increase Farmers’ Income

a) Current: RM10,400(RM2,600.00 x 2 Hectares x 2 seasons per year)

b) Expected: RM30,800(RM7,700 x 2 Hectares x 2 seasons per year) (II) Increase of RM20,400 per Contract Farmer per year

a) 196% increase in income per Contract FarmerPaddy Production Kg / Hectare / Season

Contract Buy-Back Price / Kg

Estimate Production Cost / Hectare

Profit/ Hectare / Season

Before

4,000 RM1.40 RM3,000 RM2,600

After

8,000 RM1.40 RM3,500 RM7,700

Creation of 150 contract farmers

Public Funding = RM2.0 Mil

Total Private Funding = RM10.0 Mil (to be invested in Koridor Utara)

Timeline = From Year 2014 – 2018 ( 5 Years)* Proposed funding for infrastructure cost covering 300 hectares.

Location: Kerpan, Kedah

Farm size: 300 hectares

Project components:i. Upgrading Farm

Infrastructure and Facilities

ii. Purchasing Machinery and Equipment

Note: Higher production cost due to compliance with Nestle’s SOP requirements.

Nestle Paddy Club

The Public


Re-imagining the supply chain

Re-conceiving products & markets

Re-thinking engagement models (eg clustering) to ensure economic spill-overs to local communities


SuriaKU project represents a real game changer for the solar industry

The Public

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The Public

SuriaKU : Proof of Concept Owner : Pn Rupeah Bte AliAddress : No 414, Kampung Ulu Pauh, 02600 Arau, PerlisDate of Installion: 17January 2014Date of FiAH approved : 4 September 2014Date of connection to national grid : 23 October 2014

The Public

And In Conclusion…

• Shared value• CIC

Come with us to the North of Malaysia – the Northern Corridor Economic Region is the key to

your continued success.

This is our commitment

to you…

Example of the font size Reach for the Stars!

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example of the font size langkawi international smart green city forum 2015 17 october 2015 1

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