“INDUSTRY – ACADEMIA LINKAGE PROGRAMS (MALAYSIA)”€¦ · “INDUSTRY – ACADEMIA LINKAGE...
Transcript of “INDUSTRY – ACADEMIA LINKAGE PROGRAMS (MALAYSIA)”€¦ · “INDUSTRY – ACADEMIA LINKAGE...
“INDUSTRY – ACADEMIA
LINKAGE PROGRAMS
(MALAYSIA)”
Mr. Mohd Izham Abdullah
Senior Manager, SMIDEC
APEC SME Innovation Center
Lexington Hotel
Seoul, Korea
Table of Contents
• Overview - SMEs In Malaysia
• SME Innovation
• Policies and Strategies
• Advancement of Technology
• Emerging Technologies
• Capacity Building
• The Way Forward
OVERVIEW
SMEs In Malaysia
“Companies in the manufacturing,
manufacturing related services and
agro-based industries with annual
sales turnover not exceeding RM25
million (USD6.6 mil) OR full time
employees not exceeding 150”
MANUFACTURING, MANUFACTURINGMANUFACTURING, MANUFACTURING
RELATED SERVICES AND RELATED SERVICES AND
AGROAGRO--BASED INDUSTRYBASED INDUSTRY
DEFINITION OF SMEs
SERVICES, PRIMARY AGRICULTURESERVICES, PRIMARY AGRICULTURE
AND INFORMATION ANDAND INFORMATION AND
COMMUNICATION TECHNOLOGY (ICT)COMMUNICATION TECHNOLOGY (ICT)
“Companies in the services, primary
agriculture and Information &
Communication Technology (ICT)
sectors with annual sales turnover not
exceeding RM5 million(USD1.3mill) OR
full time employees not exceeding 50”
DEFINITION OF SMEs DEFINITION OF SMEs ((…… contcont’’d)d)
Detailed definition of SMEs by Size
Sales turnover
between RM1million
(USD263,000) and
RM5 million (USD1.3
mill) OR full time
employees between
20 and 50
Sales turnover
between
RM200,000
(USD52,600) and
less than RM1
million
(USD263,000) OR
full time
employees
between 5 and 19
Sales turnover of
less than RM200,000
(USD52,600) OR full
time employees less
than 5
Services, Primary
Agriculture and
Information &
Communication
Technology (ICT)
Sales turnover
between RM10
million (USD2.6) and
RM25 million
(USD6.6 mill) OR full
time employees
between 51 and 150
Sales turnover
between
RM250,000 (USD
65,800) and less
than RM10 million
(USD2.6 mill) OR
full time
employees
between 5 and 50
Sales turnover of
less than RM250,000
(USD65,800) OR full
time employees less
than 5
Manufacturing,
Manufacturing-
Related Services
and Agro-based
industries
Medium EnterpriseSmall enterpriseMicro-enterpriseCategory
DISTRIBUTION OF SMEs BY SIZE IN THE
MANUFACTURING SECTOR
DISTRIBUTION OF SMEs BY SIZE IN THE
SERVICES SECTOR
Source : Department of Statistics, Census 2000
SME Innovation
• Innovation :
- a new way of doing things
- gives a new spin to old ideas
- technology competitiveness
• Innovation in :
- product
- business
- process
• To support innovation :
- latest technology and equipment
- dedicated team
- patenting
• Mechanism of innovation
- reverse engineering
- creation of mentors
DRIVING SMEs GROWTH THROUGH INNOVATION
CURRENT USAGE OF
TECHNOLOGIES
Status of Malaysian companies:
� Upgrading of machineries & equipments in the last 2
years – 60%
� Improvement of products & processes - 40%
� Dependence on obsolete/old technology – 70%
� Low expenditure of R&D activities – 0.7% of GDP
� Majority MNCs involved in high technology
production & exports
Source : Malaysian Productivity & Investment
Survey (PICS)
Expenditure in R&D by the Private Sector
• Total Expenditure - RM 1,633.1 million
• Current Expenditure - RM 932.7 million
- Labour Cost - RM 248.9 million
- Operating Cost - RM 683.8 million
- Capital Expenditure - RM 700.3 million
Human Resources
• Total Number of Research Personnel
(Headcount) - 5,177
SMEs INVOLVEMENT IN R&D
(Source : Mastic Report, 2004/2005)
INNOVATION READINESS
Key drivers of Innovation (Adaptation & Creation)
Manufacturing(%) Services(%)
• R&D Activities 20 12
• Firm-firm Linkages 37 41
• Industry – University 10 14
• Firm – Research Institutions 21 17
• Firm – Government Agencies 23 15
Source : Malaysian Productivity & Investment
Survey (PICS)
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Sou
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Ger
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Sin
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Uni
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Kin
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Can
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Nor
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Aus
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Chi
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elan
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Mal
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haila
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hilli
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1995
2002
% in GDP
TOTAL R& D EXPENDITUREBY SELECTED COUNTRIES
SME PERFORMANCE REPORT
8th Malaysia Plan (2001-2005 ) on Science, Technology & Innovation
Expenditure – RM 3.3 billion
9th Malaysia Plan (2006-2010) on Science, Technology & Innovation
Allocation – RM 5.2 billion
2003 (%) 2004 (%)
• Undertook process improvements 59 60.6
• New product development 44 38.1
• Innovation in technology 22 19.4
• Products patented 3 4.5
TOTAL R&D EXPENDITURE
Total R&D Expenditure, 1992-2002
0
500
1000
1500
2000
2500
3000
Yr 1992 Yr 1994 Yr 1996 Yr 1998 Yr 2000 Yr 2002
Year
RM
mil
lio
n
0.1
0.4
0.5
0.6
0.7
0.2
0.3
0.37
0.34
0.22
0.39
0.49
0.69
% in GDP
POLICIES & STRATEGIES
ENCOURAGING INNOVATION
The Second Science and Technology
Policy (STEP 2) :
� To strengthen S&T;
� To spur greater technological
development;
� To promote a more innovation-led
economic growth.
ENCOURAGING INNOVATION
• S&T
• R&D
• HRD
Adequate Financing
Creativity
&
Innovation
� SMEs direction:
INNOVATION & CREATIVITY
OEM
ODM
OBM
Through innovation and R&D activities
STRENGTHEN LINKAGES
IndustryUniversities/
Researchers
Government/Funding
Technology
Databank
Commercialisation
• In 2005, MITI has set up an Academia Industry Consultative
Council
• A special mechanism and forum to gather industry and
academia
• To jointly provide input and formulate strategies for capacity
building for the nation trade and industry sectors
• Under the Industrial Master Plan 3 (IMP3), SMIDEC will
establish & focus four cornered platforms for academia,
industry, Government and also financers.
Academia Industry Consultative Council
EMERGING
TECHNOLOGIES
• SMEs to acquire new and emerging
technologies;
• Technology transfer from MNCs;
• Undertake feasibility studies for
technology based industry;
• SMEs to integrate ICT into business
processes; and
• MNCs and LSIs move towards
global outsourcing.
EMERGING TECHNOLOGIES
• Economically viable for commercial
adoption;
• Potential to enhance competitiveness;
• Compliance with international
requirement; and
• Capacity to adopt and adapt
technologies.
EMERGING TECHNOLOGIES
• Biotechnology
• Nanotechnology
• Radio Frequency Identification (RFID)
• Wireless Technology
• Micro-Electro-Mechanical System
• Photonics
• Laser Technology
• Fuel Cell Technology
EMERGING TECHNOLOGIES
CHALLENGES
• Minimising costs of acquiring enabling
technology;
• Enhance knowledge and awareness of
technologies;
• Improve knowledge management in the
complex system processes;
• Convergence of technology; and
• Skilled manpower to support and manage
ICT – skills shortage & mismatch.
CHALLENGES
CAPACITY BUILDING
• Stimulate creativity and innovativeness in
business;
• Continued support in both technical
and soft skills; and
• Inculcate entrepreneurship among top
management of SMEs.
QUALITY HUMAN CAPITAL
• Emplacement of university trainees at
business premises or factories;
• Programmes for SMEs in strategic
business planning and new business
models; and
• Provide greater assistance to SMEs to
enhance their technological capabilities.
QUALITY HUMAN CAPITAL
• Improving access to knowledge on ICT
and other enabling technologies; and
• Enhance awareness on Intellectual
Property (IP) to promote R&D and
technological collaboration.
QUALITY HUMAN CAPITAL
• To enhance the skills and capabilities in technical and
managerial levels including information technology and
industrial design.
• 50% grant on training fees
- PUSPATRI - NPC - MINT
- GMI - MFI - NSSDC
- KISMEC - TATI - MISDC
- PESDC - PSDC (Penang) - SIRIM
- SHRDC - PSDC (Pahang) - NIOSH
- SSTC - PPKS - TPM
- IKRAM - IGM - BIP - UTM
SKILLS UPGRADING PROGRAMME
SME EXPERT ADVISORY PANEL
� SEAP programme is implemented through the
emplacement of industrial experts at the
factory sites of SMEs to solve SME’s specific
problems.
� The Programme is to assist SMEs to upgrade
their technological capability, to achieve
efficiency and to increase productivity.
SME EXPERT ADVISORY PANEL
(…contd)
� Expertise available in areas of:
� Productivity and Quality Improvement;
� Production Control;
� Business System Management and Analysis;
� International Standards e.g. HACCP,GMP;
� Production Process Improvement and Maintenance;
� Industrial Engineering;
� Product Development and Design; and
� ICT Adoption.
�Provides advisory services and consultation to
SMEs through:
�Business Clinics
�Virtual SME Information Centre
http : //www.smidec.gov.my
�Toll Free Line : 1-800-18-1801
SME ADVISORY SERVICES
THE WAY FORWARD
• Role of industry associations in promoting
of ICT and enabling technologies;
• To improve co-ordination and collaboration between:
- Government Research Institutes (GRIs);
- Science and Technology Parks (S&T Parks); and
- Institutions of Higher Learning (IHLs).
• Enhanced HRM:
- Conducive employment & environment
- Productivity - linked wage system .
THE WAY FORWARD
CURRENT
Goal
Price Focus
Production Oriented
Production Driven
Cost Oriented
Efficient
Machine Based
Local, National
FUTURE
Vision
Value Chain Analysis
Total Quality Oriented
Customer Driven
Speed Oriented
Innovative
Information Based
Global
Paradigm Shift of SMEs
Vs
THANK YOUTHANK YOUTHANK YOU
701D, Level 7, Tower D, Uptown 5,No.5, Jalan SS21/39Damansara Utama
47400 Petaling JayaSELANGOR, MALAYSIA
Tel. No. 603 – 7628 7400Fax No.: 603 - 7660 1919Tol Free: 1800-18-1801
Email : [email protected]