Leveraging Borneo’s Strength

through Value-driven Bioeconomy

YBhg. Dato’ Dr Mohd Nazlee Kamal

Malaysian Biotechnology Corporation

20 April 2015

Building a Solid Foundation for a Sustainable Bio-based

Industry

Innovations are

driving a growing

demand for

sustainable and

bio-based

products from

renewable bio-

based materials

The application of bio-based technologies is the GAME CHANGER that

transform conventional processes and industries in the bioeconomy into major

contributors to the national economy

Why Borneo?

Strategic location in the ASEAN region

Strategic position to link to rapidly growing Peninsula

Malaysia, Brunei, Indonesia, the Philippines and the

rest of ASEAN

Borneo rainforests are one of the

most biologically diverse ecosystems

15,000 species of flowering plants and

3,000 species of trees

221 species of terrestrial mammals

420 species of birds

440 species of freshwater fish

Established agriculture sector

Long coastline for Aquaculture

Land for forest plantation and oil palm –

source of renewable feedstock supply

Economic Diversification from Bioeconomy

Bioeconomy Enhance and Add Value to Existing Industries & Key

Economic Sectors in Borneo

Agriculture Forestry and Timber Oil and Gas

Core

Economic

Sectors

BioIndustrial

inputs Food and Feed Value Added

Products Bioenergy Green Agenda Bioresources

The Bioeconomy Transformation Programme will achieve this by

encouraging the creation of collaborative biotechnology clusters in Borneo

Bioeconomy is expected to enhance and add value to existing industries and economic

sectors by strengthening its sectoral niche and by developing its resource-based industries

Bioeconomy

An Important Agenda to Drive Borneo Sustainability

Economic activities based on processes using biological sources to

generate sustainable economic, social and environmental development

The Vision

Malaysia’s bioeconomy to be a

significant contributor to the nation’s

economy by 2020 and beyond

Bioeconomy has the potential to:

• Make the country more competitive

internationally

• Creation of value added jobs

• Enhance food security and healthcare

• Create greener economy as the country

shifts towards a low-carbon economy

• Increase Nation’s income by exploiting

our bio-resources to high value products

using bio-based technology

BiotechCorp’s Roles to Nurture and Accelerate the

Growth of Borneo’s Bio-based Industry

Prime Mover for

Bio-based Industry

Facilitation Role

SME Development for

Bio-based Industry

Foreign and Domestic

Direct Investment

Advocacy

This year saw Malaysian Biotechnology

Corporation being awarded:

WBM Industry Champion 2015

Global Leadership Award Excellence

in Biotechnology Sector 2015

“This award really means a lot to the team particularly for what it shows in our efforts to push the bio

industry in Malaysia. It is testament that what we are doing is on the right track and we look forward to

pushing this industry further in Malaysia” YBhg Dato Dr Mohd Nazlee Kamal, CEO of BiotechCorp

Synergy between Stakeholders

The Key Enablers of the Malaysian Bioeconomy

Government Ministries

State Governments

Implementing Agencies

PPPs Universities

Venture

Capital

PPPs

Industrial

Partners

Entrepreneurs

Public policy & advocacy for

the bio-based sector

Facilitate & coordinate

integration of the

implementation plans

Support & regulate key

programmes

Generate knowledge &

develop new innovative

technologies, processes &

products

Programme implementation

Infrastructure development

Provide incentives & industry

support

Funding & Financing

Scale-up, industrialisation &

commercialisation

Job creation

Banks/Financial Institutions

SCOPE

BIOECONOMY

KEY

ENABLERS

KEY ROLES

Research Institutes

Governance & Strategic

Oversight

Implementation & Facilitation

Support

Commercialisation & Market

Access

Bioeconomy Transformation

Programme can leverage on

key economic corridors and

clusters in Sabah and

Sarawak by;

• Collaborating with economic

corridors and clusters

• Provide human capital

development

• Enhancing Public Private

Partnership (PPP) through

BioNexus Partnering

Program

• Creation of successful

BioNexus status companies

Cluster Development in Key Economic Corridors in

Borneo

Sabah

1. Sabah: Drug

Development & Drug

Discovery Cluster

2. High Impact Agriculture

Centre - Kundasang

3. POIC Lahad Datu

Sarawak

4. Sarawak Agarwood

Industry

5. Sarawak Corridor of

Renewable Energy

6. Sarawak Drug

Development & Drug

Discovery Cluster

Biological Research

Institution

BIONEXUS

STATUS

27+ Universities and Colleges

4 BioNexus Partners Facilities

8 companies in Sabah

8 companies in Sarawak

3 Biological Research Institutions

Institutions Of

Higher Learning

Targeting Upstream Bioeconomy as a Key Driver

of Entire Value Chain

Developing upstream sector through Bioeconomy Community Development Programme

(BCDP) creates ripple effect through entire value chain:

Upstream Downstream

Raw Material Product

Value Add

Product

• Improved yield,

productivity &

standards

From… To…

• Conventional

methods

• Low productivity

Market

High tech

processing

activities

Multiplier

effect

BioNexus Go

Global, BioShoppe

Bio-based

Technologies

FOCUS ON HIGH GROWTH AREAS

Bio-Cosmeceuticals, Wellness and Pharma Nutrition

Global growth CAGR of 6.3%

Contribution of RM532 mil to GDP in 2020

Capitalise on Malaysia biodiversity and bio-based companies

Major component of rural

bioeconomy

9

Transforming Rural Community through Bioeconomy

Advanced bio-based

technologies Today’s rural economy

• Poor utilisation of land

• Rural-urban income disparity

• Low-value economic activity

• Gaps in value chain

BCDP on

Bio-cosmeceuticals,

Wellness and Pharma

Nutrition

Optimising supply chain

dynamics of industry

Increase the revenue

of BioNexus status

companies

Bioeconomy can be an enabler for social

inclusiveness as the nation develops

Issues:

OLD PRACTICE MODERN PRACTICE

OUTCOME

• Traits technology and

Genome editing

• Marker Assisted

Selection

• Biosensors

• Smart Greenhouse

Multiplier Effect:

Increasing the income of

the rural community

Transforming Rural Community through Bioeconomy –

Our Strength through BioNexus Companies

BioNexus companies in Bio-cosmeceuticals, Wellness and Pharma Nutrition

Black Gold

Global

Sdn Bhd

Agro Science

Resources

Sdn Bhd

GT Bioscience

Sdn Bhd

Bio Delta

Sdn Bhd

Brazilia Propolis

Sdn Bhd

Biotechnology as an Enabler for High Value

Generation

12

Raw Materials

• High Value Herbs

• Phyllanthus Niruri

• Ling Zhi

• Mangosteen

• Spirulina

• Tiger’s milk mushroom

• Oyster

High Value Bio-Processes and Products

SeaHarvest Aquamarine

Liquid fermentation

Nova-PhytoTechTM Extraction and Nova-PhytoMatrixTM formulation

Xanthones Extraction

Ganoderma Extraction

High-mineralised oyster extraction and adsorption purification

Alginate Extraction

12

BCDP Impact for the 7 pilot projects

High value Herbs - Bio-Alpha Sdn Bhd

Royal Jelly – Flora Beehive Enterprise Sdn Bhd

Stevia – PureCircle Sdn Bhd

Dairy – The Holstein Milk Co. Sdn Bhd

Pilot Projects – Kota Tinggi, Johor

Royal Jelly – Flora Beehive Enterprise Sdn Bhd

High value Herbs – Bio-Alpha Sdn Bhd

Oyster – SeaHarvest Aquamarine Sdn Bhd

Pilot Project – Kuala Linggi, Malacca

Pilot Project – Pasir Raja, Terengganu

Pilot Project – Balik Pulau, Penang

Number of Farmers

47

Additional

Income

Average RM

4,210 per month per farmer

1

2

Lives directly impacted

230

Nearly

Impact on local

economy

RM

5.2 million yearly*

3

*Multiplier effect based on marginal propensity to consume

Pilot project model will be

replicated in suitable

locations and states, creating

even larger national impact

Targeted Pilot Projects:

Targeted 10 BCDP collaborations

Melaka

Perak

P. Pinang

Cassava

Prawn

Sabah

Bio-Aromatic

Boer Goats

Johor

Prawn

Sea Cucumber

Gaharu

Terengganu

Kenaf Century Marine Products

Kayu Gaharu Sdn Bhd

BioNestro Sdn Bhd

Maribumi Starchtech Sdn Bhd

KLAS Farm Sdn Bhd

Wibawa Biotech Sdn Bhd

Kenaf Biosolutions Sdn Bhd

Tropical Bioessence Sdn Bhd &

Gaya Naturals Sdn Bhd

Other anchor companies with existing demand for

materials have been identified for BCDP in 2015

Cassava Balong Tapioca Sdn Bhd

Betel Leaf Spektra Biotech Sdn Bhd

Herbs Northern Borneo Herbal

Biotechnology Sdn Bhd

Bio-Aromatic Gaya Naturals Sdn Bhd

Kedah

Bee Farming

Seeds Producer

Flora Beehive Enterprise Sdn

Bhd

Greenworld Genetics Sdn Bhd

BioShoppe

Incubator for Branding & Marketing

Overarching Aim To provide market access &

visibility for BioNexus products

Towards creating homegrown

champions with export potential

To create more Bio-preneurs &

franchising opportunities

is a commercialisation incubator

for branding and marketing

Provides a soft landing for nascent BioNexus

companies to familiarise themselves with the retail

pharmacy environment

BioShoppe Strategy

*Subject to funding received under

RMK-11

10 outlets each

year (2016-2020)

Bioeconomy Community

Development Programme

Increase in

production

capacity Increase

volumes and

sales by 2X Increase demand

for raw materials

Kacip Fatimah Hempedu Bumi Misai Kucing

Products of BioNexus Status

companies

NATURAL HEALTH SUPPLEMENT

HEALTH & BEAUTY

ESSENTIAL OIL & AROMATHERAPY

FUNCTIONAL FOOD & BEVERAGES

Impactful Projects to generate

Socio-Economic Benefits

Impactful Projects to Generate Socio-Economic Benefits

World’s First Integrated Lobster Aquaculture Park in Semporna

Formulation of an “live feed”

& artificial feed using

microorganisms

(e.g. microalgae)

Cultivation of different types of

micro-algae as “live feed” for early

stage feeding of larvae/fry. Different

stages of development will require

different formulation of “live feed”

(12 different development stages)

Selective breeding &

Biological filtration system

Selective breeding; use of

microorganism as additive to

maintain water quality, improve

growth & survival rates of larvae/fry

The First Fully Integrated

Lobster Aquaculture in the

World

Employment:

16,800 people

GNI in 2020:

RM300 million

Investment:

RM 2 billion

TECHNOLOGY

IMPACT

To implement sustainable temperate farming through

integrated crop management approach.

The project will utilise bio-pesticides, bio-fertilisers,

beneficial insects, integrated weed management, etc.

The project will also uptake initiatives on the

conversion of agiculture waste into useful products

e.g. biofertiliser, biochemicals, etc.

Impactful Projects to Generate Socio-Economic Benefits

AgriBiotech Centre of Excellence for Highland Farming Ranau

Phase 1 main product is

Tilapia and can be processed

into Tilapia fillet, marine

collagen and gelatin

Employment (BioNexus

Entities):

445 people

GNI in 2020:

NA

Overall Investment:

RM 2.2 billion

IMPACT

TECHNOLOGY

Proposed to use biotech

method and unique

culturing system to culture

the Chlorella purified strain

Optimum production and

eco-friendly culturing

system

BioNexus Entities: Sea Party Aquaculture & Sea Party Microbes

Impactful Projects to Generate Socio-Economic Benefits

Tilapia Fish Farming at Tanjung Manis - Taiwan Food Park, Sarawak

Projecting Malaysia’s Bioeconomy Growth

US$34 b

2010

Total Bioeconomy potential

Expected activities

enhanced by bio-based

technology

2030

GDP

Contribution

Year

US$22 b

2020

US$27

US$47 b

US$16 b

US$57 billion

billion

Transition toward higher value downstream activities using bio-based

technology can increase total Bioeconomy potential (15% growth):

Stimulated

introduction of bio-

based technology into

other sectors

Conclusion

Biodiversity & Bio-

based Resources Enhanced

Economic Value of

Bioeconomy Synergy between

local & international

stakeholders Bioeconomy

Transformation

Programme

1. Value-added bioeconomy activities will create direct and ripple effect for sustainable

industry and socio-economic development through coordinated programmes.

2. Borneo can enhance its economic potential from its biodiversity and bio-based

resources…

Bio-based Technology

Industrial cluster

strategy

… to drive investment into Bioeconomy as an economically attractive and environmentally

sustainable approach to move forward the bio-based industries to greater heights.

Market access

strategy National

Biotechnology

Policy

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