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CYBERJAYA

Global Technology Hub


Blueprint

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

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

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

FOREWORD
Yang Berbahagia Tan Sri Dr. Mohd Irwan Serigar Abdullah
Treasury Secretary General
Malaysia Ministry of Finance
Technology, beyond the spectrum ofeconomic development. It is an area
Information Communication Technology iswhere innovation and creativity that can
rapidly becoming a key resource to fosterconsolidate
growth,
generate
new
innovation and boost economic and socialemployment
and
create
business
prosperity for Malaysia. The contribution toopportunities. The role of technology has
the national GDP from the digital economyglobally made a paradigm shift to become
is expected to reach 17% as we movea critical enabler, a demand driver and
towards year 2020. Technology is a majortaking the centre stage in some of the
contributor and key driver to the nationalleading economies and enterprises today.
In the economic sense, technology have become a new form of asset class,
equivalent to data or oil. The competitive advantage for many countries has shifted
towards process technology which are man-made and in replacement of natural
comparative advantage. That is the power and opportunities driven in this era of
technology and internet
As the government puts in place many digital measures under the New Economic
Model, Economic Transformation Plan, Government Transformation Plan and Digital
Malaysia to place Malaysia firmly on the global digital map, we must ensure that we
have a complete ecosystem that continues to progress in tandem with our national
digital agenda. With this strategic injection of push to our national initiatives, it
realigns our national initiatives to a leaner and stronger approach to work inclusively
across all agencies. By doing so, our country will keep in pace with the much
competitive global economy.

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

FOREWORD

Economic growth will be more targeted with efficient use of


resources by converting to technology-led industries in
sectors that Malaysia has the competitive advantage.
Development of a Global Technology Hub into a vibrant,
productive and liveable city comparable to major cities in the
world is critical in our mission to attract talent, businesses and
investments to Malaysia. This investment in technology
advancement will set an example for Malaysias very own
Global Technology Hub to be replicated for sharing of
economic benefits in other urban cities to create a robust and
vibrant community in line with the current global environment
and national priorities.

initiated for pushing technology and the idea of a Global


Technology Hub in Cyberjaya is timely and brings new focus
to technology for Malaysia.

To develop Malaysia with a mission towards a progressive


and high-income nation, we must consistently keep our sights
set on making sure we deliver and occasionally adjusting as
needed to achieve it. Our past strategies of driving economic
development needs to be consistently injected with strategic
approaches to keep the economic development resilient and
the determination drive forging. This collaborative study

I have full confidence that the Global Technology Hub


blueprint will bring about positive changes which will benefit
all Malaysians. The Government and Ministry of Finance is
committed to ensure delivery of goals underpinned by the
blueprint and I am personally committed. Lets take this
journey with a mighty stride as a nation together for
Malaysia.

I would like to take this opportunity to express my


appreciation to all Regulators, Agencies and Ministry
departments who contributed towards the development of this
Global Technology Hub blueprint. The successful completion
of the study has only earmarked the beginning of our
transformation journey for fast-tracking our technology
innovation. It will not be easy and we must work inclusively to
brace the challenges.

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

EXECUTIVE SUMMARY
In 2013, Cyberview Sdn Bhd received a new mandate from
the Malaysian government to transform Cyberjaya into a
Global Technology Hub. This new hub shall not be limited to
ICT and at the same time accelerate Cyberjayas global
leadership in Information Communications Technology.
This initiative aims to create high technology jobs for
Malaysians and to make Cyberjaya a preferred investment
hub for technology companies while reaffirming Cyberjaya's
existing position as a premier ICT location.
Committed to the new duties given, Cyberviews team set
out on a study to formulate a strategic blueprint. This
blueprint will identify common key success factors of global
technology cities to develop focus areas that will expedite
achievement of the aspirations from the new mandate.

The Strategic Blueprint also developed the various


positioning strategies for Cyberjaya as well as potential
target companies to attract in each technology focus areas.

Cyberjaya will seek to secure, in close collaboration with all


other relevant agencies, a set of key enablers to nurture an
attractive ecosystem for targeted investments, for instance,
talent, infrastructure, R&D institutions and platforms,
incentives and funding, networks, broadband access and
liveability.
The Strategic Blueprint is expected to have a significant
impact in terms of GNI creation, job creation, development
of new industries and industry specific ecosystems as well as
technology transfer.

As part of the Strategic Blueprint, Cyberjaya will focus on


drawing investments to and developing the ecosystem for 5
technology focus areas, in close collaboration with all
relevant agencies :
ICT

NON-ICT

(consists of 5 selected sub-areas)

Information Security

Green Technology

Creative Content Technologies

Biotechnology

Mobile Internet

Wearable Technologies

Cloud Computing

Smart Grid Technology

Big Data Analytics

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Contents

Page

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

5
6
11
20
25

Key technology areas


B1. Overview of selected technologies
B2. Technology and competition overview: ICT-related technologies
B3. Technology and competition overview: Other technologies

38
39
42
53

Positioning strategy & action plan

62

Impact

81

Appendix
E1. Benchmarking: Technology parks
E2. Benchmarking: Start-up hubs

84
85
98

A. CONTEXT

A1.
Technology in the national agenda

As a first step, we analyzed relevant policy documents to gain


deeper insights into technological priorities at the national level
Malaysia's national development plans
New Economic
Model (NEM)
(2009)

Vision
documents

Economic
Transformation
Program (ETP)
(2010)

Conceptual
blueprints

Operational
roadmaps

Sector-specific
action plans

9th Malaysia
Plan 2006-2010
(2006)

Strategic
ICT Roadmap
(2013)

Government
Transformation
Program (GTP)
(2013)

10th Malaysia
Plan 2011-2015
(2010)

SME Master
Plan 2012-2020
(2012)

Digital Malaysia
354 Roadmap
(2014)

S&T Master
Plan
(2003)

3rd Industrial
Master Plan
2006-2020
(2006)

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

By doing this, we had to reconcile the different priority areas


defined in each national policy document
Development plans focus areas
New Economic
Model (NEM)
(2009)

8 Strategic
Reform
Initiatives
(SRIs)

> Re-energising the private sector


> Developing a quality workforce and
reducing dependency on foreign
labour
> Creating a competitive domestic
economy
> Strengthening the public sector

Economic
Transformation
Program (ETP)
(2010)

12 National
Key Economic Areas
(NKEAs)

> Greater Kuala Lumpur/Klang


Valley
> Oil, Gas & Energy
> Palm oil & Rubber
> Wholesale & Retail
> Financial Services
> Tourism

Operational
roadmaps

Digital Malaysia
354 Roadmap
(2014)

3 ICT FAs 1)
5 Sub-sectors > ICT services, eCommerce, ICT manufacturing, ICT trade, content &
media
4 Digital
communities > Digital entrepreneur, B40, Youth, SME

Sectorspecific
action plans

Strategic
ICT Roadmap
(2013)

Vision
documents

Conceptual
blueprints

> Transparent and marketfriendly affirmative action


> Building the knowledge base
and infrastructure
> Enhancing the sources of
growth
> Ensuring sustainability of
growth
> Electronics & Electrical
> Business Services
> Communication content &
Infrastructure
> Education
> Agriculture
> Healthcare

> Access, Adoption, Use

6 ICT

FAs1)

> Cloud Computing


> Wireless Intelligence
> Big Data & Analytics

> Security
> E-services
> Ubiquitous connectivity

1) Focus Areas

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

The national reports emphasize the need to identify specific niches


where Malaysia can leverage its strengths to develop an edge
Key findings: Vision documents & conceptual blueprints
General perspectives on
technology
New Economic
Model

> Shift focus from importing foreign


technology to encouraging homegrown
innovation
> Need for niche-focused development
> Need for a closer collaboration between
private sector, academia and R&D centers
> Lack of support for innovative SMEs

ETP

> Shift from a low-cost to a knowledge-based


economy to avoid 'the middle-income trap'
> Need for a cluster development approach

GTP

Perspectives on ICT and


ICT-related sectors
> Need for more incentives towards ICT
companies to relocate into clusters
> Need for broadband expansion to leverage
advanced infrastructure by :
Attracting data and processing centers
Focusing on content development
(mainly eGovernment, eLearning and
eHealth)

New technology niches


identified
> High-value green industries and services
> Renewable energies (photovoltaic, biomassusing technologies), biodegradable products
> Oils, cosmetics, nutraceuticals
> High-value added products for palm oil
(e.g: Mechanization, biotech seed research)

> Need for latest infrastructure rollout (e.g: 4G) > Sub-segments within education and
healthcare sectors where modern
> Shift from providing infrastructure and
telecommunications can be applied
access to applications and content

> Need for private sector-led growth and


more private-public partnerships

> Need for strengthened advanced services


(e.g: Creative content, payments, ecommerce)

> N/A

> Need for increased availability and usage of


Mobile Computerized Access Devices
(MCADs)

> N/A

Key implications for Cyberjaya


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

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

They also spelt out the need for technology clusters in Malaysia to
serve as local catalysts for commercially-oriented technologies
Key findings: Operational roadmaps
General perspectives on
technology

9th Malaysian
Plan

> Need for 'technology-oriented incubators'

Perspectives on ICT and ICTrelated sectors


> Need to enhance ICT-related skills

> Agriculture: Biotech, ICT applications

> Need for incentives for market-oriented


> Lack of linkages between local and world
R&D to increase the commercialization rate
class research institutions
> Lack of S&T programs for students
> Lack of industry involvement in academic
programs and research

New technology niches identified

> Potential niche areas: Semiconductors,


microelectronics, grid computing, language
engineering, information security

> Need for flexible approach towards


researchers' equity ownership in spin-off
companies

> Rubber: Processing, biotech (new products)


> Oil palm biomass & biofuel: Oleochemical,
biotech (e.g: Nutraceutical, pharmaceutical)
> Oil & gas : Oil recovery technologies
> Advanced materials: Photonics, polymer
composites, energy storage devices
> Advanced manufacturing: Robotics, smart
sensors, high-technology packaging
> Aerospace: Small aircrafts, MRO1), NSP2)

10th
Malaysian
Plan

> Need for more venture capital activity


and improvement in access to financial
support for SMEs
> Lack of incentives for knowledge transfer
> Need for refocused corridors on key
industry clusters attracting both
competitive MNCs and SMEs

> Lack of product acceptability, branding and


cross-discipline expertise

> Nanotechnology: Nanoparticles, machining,


nanostructured catalysts and membranes

> Potential niche areas : Digital content


development, e-commerce, SSO, esolutions, bioinformatics

Key implications for Cyberjaya


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

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

A2.
Cyberjayas current situation

Cyberjaya has undergone significant development since its


establishment in 1996 It now faces a depleting land bank
Overview of Cyberjaya land developments
Cyberjaya the nucleus of MSC Malaysia

Cyberjaya
Lake
Gardens

Lim Kok Wing


University

Multimedia
University
Cyberview Resort
& Spa

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

Undeveloped land

Land under construction

Existing buildings

Green lung/parks

Schools/universities/public services buildings

> However, following significant developments within the


township, Cyberjaya now faces depleting land bank
> Cyberview will need to strategize its future development
plans taking into account the remaining land bank available

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Cyberjaya has grown steadily, with rapid growth in office


occupancy and number of companies operating
Number of knowledge
workers [#]
35,000

Office space [m sq ft] & occupancy [%]

CAGR

29,979

70%

CAGR

7.1

8%

65%
6.9

8%
2011

2013

3%
2011

Knowledge workers

Office space

Student population [#]


23,000
21,986

Occupancy

2012
E

Number of companies operating [#]


815

CAGR
621

2%
2011
Student population

CAGR

2013

15%
2011

2013

Number of companies

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Over its short 18-year history, Cyberview has evolved from a


landowner to becoming an active Cyber City Manager
Cyberjaya development: Timeline
1996

2003 / 2004
Phase I:
Establishment
of an ICT hub

Phase II:
Growing into a
global ICT hub

Today

2010 / 2011
Phase III:
Sustaining
competitiveness

2020

Phase IV:
Transition to Global
Technology Hub

Establishment of
physical infrastructure
(e.g. fibre optic cabling,
dual feed power
system)

Growth in number of MNCs Sustaining competitiveness


(e.g. Dell, IBM, Ericsson),
amidst aggressive rollout of new
local companies and startcybercentres nationwide
ups in Cyberjaya

Cyberview's
role

Landowner
Develop basic
infrastructure to
enhance attractiveness

Facilitator
Cyber City Manager
Sell and lease land,
Drive growth of Cyberjaya to transform it from a premier global
construct buildings, support ICT hub into a global technology hub
MSC via Cyberjaya dev't

Multimedia
Super
Corridor:
Key strategic
thrusts

> Developing the local > Building ICT as an enabler > Creating global test bed for
ICT industry
for growth
new multimedia/IT
> Establishing 1 corridor > Rollout of MSC cyberapplications
(i.e. Cyberjaya)
centre/city status to 14
> Aggressive rollout to 19 new
> Launch of 7 flagship
new qualified locations2)
qualified locations
applications1)
> Deeper implementation of nationwide3)
7 flagship applications
> Focusing on 4 new clusters
(creative multimedia, SSO,
infotech, IHL4) & incubators)

Key
developments
in Cyberjaya

Aspiration to transform into a


global technology hub in the
face of competition locally and
overseas

> Expanding MSC Malaysia to


encompass the whole of
Malaysia
> Linkage of MSC cyber-cities
to global cities

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

Cyberview's official vision, mission and objectives have


recently been adjusted to reflect the new strategic direction
for Cyberjaya
Changes to vision, mission statement & objectives

Vision

Mission
statement

Objectives

Previous

As of 6 Dec 2013

"To become the preferred investment location


in the region for technology companies that
harmonises the dynamics of human,
environment and technology."

"Leader in the development of Global Technology


Hubs."

"To realize Cyberjaya as a premier ICT hub and


to be preferred location for ICT, Multimedia
and Services innovation and operations; and
to fulfill specific Government initiatives in
support of the innovation economy by 2020."

"To provide the ecosystem in creating a preferred


investment location for technology companies,
with Cyberjaya as the showcase."

"Cyberview's main objective is to ensure the


development of Cyberjaya in accordance with
the Government guidelines and aspirations
and to also advise the Government on
MSC/Cyberjaya development matters."

Primary Objective: Elevate Cyberjaya into a


Global Technology Hub
Secondary Objective: Strengthen Cyberviews
position to become Leader in the development of
Global Technology Hubs

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Cyberview needs to play different roles depending on the life-cycle


stage of the technologies it wishes to promote in Cyberjaya
Cyberview: Potential roles in technology promotion
Technology
life-cycle stage

More
active

Emerging
(Innovation)

> Single agency currently does not exist to nurture


technology
> Cyberview can play a galvanizing role to form
agency and serve as key driving force to transform
Cyberjaya into a hub for the emerging technology

Early stage
(Syndication)

> Relevant agencies exist but technology cuts across


multiple
> Roles not clearly delineated among agencies
> Cyberview can serve as active advocate to promote
the technology among relevant agencies

Mature
(Diffusion &
Substitution)

> Established agencies with clearly defined roles and


action plans to develop the technology
> Cyberview can serve as intermediary to facilitate
discussions among stakeholders, incl. companies
looking to set up, investors and property owners

Driver

II

Champion

III

Facilitator
More
passive

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

To achieve its vision, Cyberjaya must overcome certain


challenges to develop a competitive edge and build up the
necessary resources
Cyberjaya: Key challenges for the future
Area

A
Competition

B
Resources

Description/implication

Challenge
1
Growing
competition

1
Talent
shortage &
mismatch

Stiffening competition from


local and foreign innovation
hubs

Lack of skilled manpower


especially in high technology
applications

> Liberalization of cyber-centre status to more locations nationwide has


increased competition, leading to certain lost accounts for Cyberjaya
> Financial incentives and relocation requirement no longer sufficient to
support Cyberjaya's growth Need to build a competitive edge
> Cyberjaya also faces competition from regional science and technology
parks, e.g. Biopolis in Singapore (healthcare) and Hsinchu in Taiwan (hightech)
> Significant challenge in attracting the right talent to Cyberjaya has been a
major deterrent to high tech foreign investors looking to set-up high-value
operations
> Talent retention is also an issue with high staff poaching
> Further alignment with universities required in order to ensure programs
that produce the required talent and skills to meet Cyberjaya's demands

Lack of "soft" infrastructure


Lack of infra- for a "livable township"
structure
"Hard" infrastructure in need
of upgrade

3
Lack of
funding

Lack of funds for investments,


and the risk of having low
investor take-up

> To be a complete and livable city, Cyberjaya requires investments in


additional infrastructure such as hospitals, mosques, and other amenities
> Its vision of being a global technology hub also necessitates upgrades to its
existing infrastructure including wi-fi enhancements and ultra-broadband

> Meaningful seed funding is required for start-ups in new technology areas
Need to attract angel investors and venture capital
> Developing Cyberjaya to a global technology hub also requires significant
financial investments for infrastructure upgrade

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

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

These challenges were taken into account in the technology


selection phase and treated as gaps to bridge
Cyberjaya: Key challenges for the future (cont'd)
Area

C
Networks

Challenge
1

Poor link
bet. R&D &
business

Incomplete ecosystem for


high-value research

> The ecosystem for high-value applied R&D is still immature Lack of
university-industry commercial partnerships to perform research that is
commercially viable
> Local companies do not sufficiently engage in meaningful R&D

Poor
knowledge
transfer

Lack of success in technology


transfer from MNCs to local
counterparts

> Limited interaction between MNCs and local companies to allow for
technology transfer
> Lack of sharing culture between MNCs and GLCs with local companies in
Cyberjaya

Lack of support and


opportunities for SMEs

> Poor linkages between SMEs and government agencies Malaysian


government is the largest spender on high-technology products, yet there is
limited use of local technologies by the government

Unclear
role
definitions

Potential conflict of interest


among main stakeholders in
Cyberjaya

> Clear distinction of roles required between multiple entities governing


Cyberjaya's development, e.g. Cyberview, local state authority, Setia Haruman
and MDEC, to avoid potential conflicts

Need for clarity of positioning


and stakeholder buy-in

> Need for translation of Cyberview's vision into clear actionable plans and KPIs
> The new vision must be cascaded to all staff members via communication
programmes to ensure buy-in

Inadequate
SME support

D
Governance
& regulation

Description/implication

Lack of
clear vision

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

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

In addition, Cyberjaya still has considerable room for


improvement in developing itself into a holistic, liveable
township
Township elements: Assessment of Cyberjaya
Comments

Physical connectivity

> Good highway access


> Lack of public
transportation into
and within Cyberjaya

Physical amenities

Digital connectivity

> Slow speed of fixed


broadband network
> Inadequate wireless
network connection
and speed

> Dual feed power supply


> Proper water supply and
sewerage systems
> Centralised district cooling
system

Residential property

Commercial activity/
Entertainment
> Growing number of
F&B outlets
> Insufficient retail
outlets, malls and
entertainment
Hard infrastructure

Recreational space

Elements of a
Comprehensive
township

> Prevalence of homes for


mid-high income levels
> Lack of affordable housing

Healthcare
services

> Cyberpark
> Putrajaya lake
> Community club
house

Education system

> Several public and


private schools
> Several colleges and
universities (e.g. MMU,
LimKokWing, CUCMS)

> No hospital within Cyberjaya


> Lack of clinics / doctors

Soft infrastructure

Good or adequate

> Hard infrastructure is


mostly in place But
improvements needed
in physical & digital
connectivity to make
city more attractive
> Still lagging in softer
infrastructure Need
to increase commercial
vibrancy and improve
access to healthcare &
other amenities
> Chicken-and-egg
problem: How to
attract critical mass of
residents to entice
service providers to set
up facilities?

Lacking

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

A3.
Technology trends that are shaping
Asia Pacific

Six key drivers are shaping the landscape of technology


trends in Asia Pacific
Asia Pacific key drivers of technology trends
Connected intelligence
Data to insights

Scarcity of resources
Climate change
Life science solutions
Reverse innovation

Everything from consumers, cities, supply chains, homes, commerce and


enterprises will be connected through the internet, fundamentally changing how
we conduct our daily lives
The digital age continues to drive a surge in data generation The strive to gain
more granular insights from this influx of data will be a crucial competitive
differentiator
The scarcity of energy and resources, fueled by strong demand in emerging
markets, will drive a push for new energy management solutions

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

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

Future innovations will be developed and adopted first in emerging markets, as


opposed to being adopted first in matured markets before being trickled down to
the emerging markets

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

A hyper-connected world and the increased influx of data will


present new technological innovations and possibilities
Key drivers (1/3)
1 Connected intelligence

Implications

> Trend description:


Various computing
devices will be
connected together
through the internet
This will connect
consumers, cities,
supply chains, homes,
commerce and
enterprises and
revolutionize the way
we conduct our daily
business

> Various new opportunities


exist in the onset of
connected intelligence, for
example:
Cities: Traffic monitoring,
infrastructure
management
Supply chains: Speed to
market, streamlined
process
Homes: Lighting and
energy management,
smart meters
Commerce: Digital media
signage, vending machines
Enterprises: Connected
workforce, automated
business processes
Consumers: Wearables

Data to insights
Implications

> Businesses evolve to


leverage available data to
yield insights into their
customer base and make
more informed data-based
> Trend description:
decisions and achieve a
The digitalization of data
competitive edge
is increasingly driven by
internet usage growth, > Yields many new
increased mobility, social technology opportunity
areas e.g., data centers,
media, digitalization of
conventional formats and analytics services,
consulting services etc.
improved technology
performance
> Broad based sector
applications e.g., retail,
More sophisticated
manufacturing, banking,
analytics today helps to
health care, public sector
make sense out of the
administration, personal
data influx and create
location data applications
economic value
etc.

Source: Gartner; IDC


CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Strong economic growth in emerging markets will intensify


the scarcity of resources and issues of climate change issues
Key drivers (2/3)
3 Scarcity of resources

4 Climate change
Implications

> Trend description:


Population and economic
growth, urbanization and
expanding middle class
will increase demand for
energy and resources
Securing reliable and
economically viable
access, promoting
efficient usage, demand
management and
formulating new energy
and resource paradigms
will be on top of the
agenda

> New innovations and


technological paradigms
will be needed to better
manage the scarcity of
energy and resources
> This would include
research and
commercialization of green
and sustainable
technologies, energy
efficient technologies e.g.,
smart grids, recycling and
new energy supply and
delivery methods e.g., biobased fuels

Implications

> Trend description:


Increasing
concentrations of
greenhouse gases have
been a main driver of
rising temperatures
resulting in various
environmental
implications
Sustained dominant
share of hydrocarbon
fuels in the energy mix
and rapid economic
growth in developing
nations sustain CO2
emissions

> Smart urbanization needed


in the developing world
balancing economic
growth imperatives with
environmental
sustainability
> Commercialization of
green and sustainable
technologies, renewable
energy technologies e.g.,
solar, wind, energy storage,
smart grids etc. will need
to be accelerated
> New green mobility
concepts will be groundtested and adopted

Source: RBSE Trend Compendium 2030

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Asia Pacific will become a hub for innovation while the life
sciences will open the door to new technological innovations
Key drivers (3/3)
5

6 Reverse innovation

Life science solutions

Implications
> The life sciences can
potentially offer novel
solutions to major
problems faced by the
world today e.g., energy
> Trend description:
scarcity, poverty, food
Basic technological
security, climate change
innovations often come
etc.
in certain cycles e.g., the
> Research and development
invention of the steam
in life sciences will spur
engine, telegraphy,
new discoveries and
automobile, nuclear,
technologies in the fields
aerospace, ICT
of pharmaceuticals,
The theme of the next
medicine, biotechnology
cycle will be life sciences
(agricultural, industrial,
and will drive solutions
medical) etc.
to various health and
resource problems

Implications
> The traditional strategy of
innovating for home
markets (developed
countries) and exporting
with minor modifications
> Trend description:
to local market needs no
A reverse innovation is
longer works
any innovation that is
> To win in emerging
adopted first in the
markets the innovation
developing world
of technology must be
Traditionally, innovations local and may even later be
flow from the developed
exported from the
world to the developing
developing world to the
world this no longer
developed world
holds true, and in fact,
> Innovation must today
the reverse is occuring
happen in close proximity
to its market base

Source: RBSE Trend Compendium 2030; "Reverse Innovation" Vijay Govindarajan & Chris Trimble
CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

A4.
Benchmarking of other
technology hubs

Tech hubs go through several stages in their development Global


innovation hubs are holistic, set trends and are linked to other hubs
Stages of innovation centre development
Complexity/
Developmental
Maturity
Uncoordinated
innovation
activities
> Spontaneous "green
shoots" of R&D activity
No centralized planning
> Growth typically stems
from proximity to
universities and other
institutes

Phase I
(Phase I may be skipped if
development is heavily state-led)

Regional cluster
program
> Beginnings of central
coordination by state or
private enterprise
> Lack of dedicated
infrastructure and endto-end eco-system

Phase II

Global innovation

hub
Science &
technology park
> Well-defined area with
dedicated infrastructure
and resources
> Proactive policy to attract
talent and companies
> Linkages to other hubs
may not be strong

Phase III

> Trend-setter Model for


other hubs
> Complete eco-system
Symbiosis of start-ups,
SMEs and big business
(local & foreign)
> End-to-end support for
whole value chain
(research to
commercialization)
> Strong links to other
hubs

Phase IV

Infrastructure development
Completeness of innovation eco-system

Source: "Understanding Research, Science & Technology Park Global Best Practices" National Academies Press
CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Age

There is no single path to success for innovation hubs Whatever


the model, there needs to be active enterprise champions
Alternative innovation hub models
State-driven

Enterprise-led
Role of government
Model

II

Government-led
innovation

Mixed approach

Hub organically forms


over time due to
naturally conducive
environment
> E.g. around research
institutes that attract an
entrepreneurial
community
> No active push by
government initially

> Broad category with


varying combinations of
involvement from state,
academia and private
sector
> State involved in some
aspects, but not the key
driving force

> Construction of
infrastructure results
from deliberate
government planning
> State-sponsored
research programs form
the main organizational
kernel
> Incentives proactively
used to attract talent

San Diego

London's Tech city

Dhahran TechnoValley

Description>

Example
s

III

Organic growth

Enterprise champions

Qualcomm

Comments
> Paths of successful hubs vary
widely No single recipe for
success
> Models involve varying
degrees of involvement from
the state, academia and the
private sector
> Whatever the model, each
hub invariably involves
participation of large
enterprises as hub champions

> Champions serve critical roles


e.g. provide capital and talent,
offer inter-regional and
national connections, help
bridge commercialization gap

Google

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

For an innovation hub to be successful, it also needs to create a


conducive ecosystem for the entire span of the tech value chain
Innovation hub value chain
Commercialization
Research

Development

Early
stage (premarket)

Early-stage
basic
research

Advanced,
focussed
research

Technology
development

Prototype
development

Prototype
production

Operations
Late stage
(market
entry)

Market
launch

Sales &
marketing

Product
refinement

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

Source: 2013 Global Innovation Index Report (INSEAD, WIPO,)

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

We identified 6 leading science & technology parks around


the world to draw insights and distill key success factors
Shortlisted science & technology parks

2 Sophia

Shortlisting
criteria
> Degree of "selfcontained"ness (hard &
soft
infrastructure)
> Sectoral focus
& niche
technologies
> Perceived
standing
among other
tech parks in
the world
> Geographic
diversity

Antipolis1)

Europe (>125
parks)
U.S.
(>150 parks)

4 Daedok

Innopol
is
Japan
(>100 parks)

China
(>100 parks)

3 Cambridge
Science

Park

1 Research
Triangle
Park 1)

6 Zhangjian
g Hi-Tech
Park

Cyberjaya

5 One-North
Source: UNESCO

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

A benchmarking study was conducted to identify the best practices


required to provide the right environment to foster innovation
Outcome of benchmarking study: Summary
Research
Triangle
Park

Criteria

Content

1 Resources

> Access to talent


> Funding
opportunities
> Quality of
infrastructure

2 Network

> Linkage between


research institutes
and industry
> Knowledge transfer
between players
> Support systems

&
3 Regulation
Governance

> Clarity of roles in STP


development
> Clear vision for the
STP
> Incentives

Overall
assessment
Excellent

SophiaAntipolis

Cambridg
e Science
Park

Daedok
Innopolis

OneNorth

ZhangJiang
Park

> Overall quality of the


environment
Very good

Good

Fair

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Cyberjaya

We studied the background and developments in each


benchmark science and technology park
Overview of Research Triangle Park

Concept

Key
characteristics

Focus area(s)

ILLUSTRATIVE EXAMPLE1)

> World's largest university-related research park, situated


between UNC-Chapel Hill, Duke & N.C. State University
> Initially grew by attracting branches of Fortune 500 firms
> Established in 1959
> Park size: Total of 7,000 acres
> Mixed model of growth Govt was a key driver in
initial stage but minimal federal intervention today
>
>
>
>

Biotechnology & Life Sciences


Information Technologies
Nanotechnologies
Wireless Telecommunications

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

Examples of major tenants


Biotech & Life Science
Technologies

Information

1) Other benchmark slides are included in the Appendix


Source: RTP Concise Public Master Plan

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

and assessed their strengths and weaknesses according to


the benchmarking criteria
Assessment of Research Triangle Park
Resources

Network

ILLUSTRATIVE EXAMPLE1)

Talent

> Steady flow of talented graduates from the 3 funding universities

Infrastructure

> Conference center, high-quality broadband, recreational activities


> A new regional tram system to be built, and new housing and residential spaces
> 5 incubators available on-site, providing services and advice

Funding

> Numerous venture capital firms implanted


> Presence of organization offering research financing support (e.g: Biotechnology Center)

Linkage between research


institutes and industry

Knowledge transfer

Support systems
Clarity of roles & objectives
Regulation
for STP development
& Governance

> Numerous invention disclosures and licence agreements with university departments
> Public-private partnerships remain very common in the park's activities, especially with
universities
> Efforts made to introduce multi-use, cooperative spaces and shared amenities designed to
foster collaboration and unity
> Networking events organized to foster open exchange of ideas (e.g: Get connected @ RTP)
> Host several iconic organizations and networks (e,g: IUPAC, the Hamner, the William
Burroughs Welcome Fund, or Sigma Xi) to help recently created companies
> Stable management by The Research Triangle Foundation of North Carolina, a non-profit
organization

Clear vision

> Clear vision mapped out in the Master Plan 2011


> However, lack of measurable objectives in the Master plan

Clear incentives

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

1) Other benchmark slides are included in the Appendix


Source: RTP Concise Public Master Plan

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

We identified that multiple factors can contribute to the


success of different STPs around the globe
Key Success Factors
Public-Private Partnerships

The close collaboration of industry, academia and government to


invest in science parks and create co-development programs

Presence of committed champions


(leaders)

Key leader/advocate of science park can foster the park's


innovation capabilities and technology knowledge

Existing networks & communities

Official and unofficial networks can improve knowledge circulation


and support growth of innovative ideas

Proximity of R&D institutes and a high


collaboration of research resources

Essential value chain components for higher-end R&D

Focus on knowledge transfer

Encouraging collaboration and use of shared spaces is key to retain


value-added activities within the park

Excellent park management

Management organized with clear roles and a strong vision of the


direction the park should follow for its expansion

Liveable city

Improvement of the quality of life offered for workers is key to


attracting and retaining talent

Source: Team analysis


CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

We also selected 7 leading start-up city hubs across different regions to learn how
each one nurtured its own start-up community
Top 20 start-up ecosystems, 20121)
Talent index2)
24

Selected start-up ecosystems for


benchmarking:

Silicon Valley

Los Angeles
20

Tel Aviv

#2: Tel Aviv (Middle East)

Seattle

#3: Los Angeles (North America)

Vancouver

16

#7: London (Europe)


London

#12: Sydney (Australia)

Boston

#13: Sao Paulo (South America)

Sydney

12

Singapore
8

Melbourne
Berlin

#17: Singapore (Asia)

New York City

Moscow

Chicago

#19: Bangalore (Asia)


Toronto

Waterloo
Paris

4
Santiago

Sao Paulo

Bangalore

Support Index3)

0
0

North America

4
Middle East

8
Europe

10
Australia

12

14
South America

16

18

20

22

Asia

1) Bubble size indicates ranking of each city, where Silicon Valley ranks as 1st and Santiago as 20th; 2) Talent index measures the skills of the start-up founders in each
start-up ecosystem, taking into account age, education, startup experience, etc; 3) Support index measures the quality of the startup ecosystem support network
Source: Startup Ecosystem Report 2012 (Startup Genome)

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

The selected start-up hubs were benchmarked from four


different angles Funding, talent, support and trendsetting
Benchmarking criteria
Funding
index

Talent
index

Support
index

Trendsetting
index

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

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

Measures the quality of the startup ecosystems support network, including the
prevalence of mentorship, service providers and types of funding sources

Measures how quickly a startup ecosystem adopts new technologies,


management processes, and business models, where startup ecosystems that
stay on the cutting edge are expected to perform better over time

Source: Startup Ecosystem Report 2012 (Startup Genome)


CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

We assessed and profiled each benchmark start-up ecosystem


Los Angeles Start-up Ecosystem
Overview

ILLUSTRATIVE EXAMPLE1)
Index scoring

Funding
Index
20
15
10
5
0

Trendsetter
Index

Funding

14
Talent index

Talent

19
Support
index

Description

Notable
start-ups

> Ranked 3rd in global start-ups ranking,


with approximately 800 start-ups
> USD500 million raised in funding in H1
2013
>
>
>
>

e-Commerce
Digital media
Crowdsourcing
Online apps

Support

17
Trendsetting

10

> No funding gap Healthy mix of capital


sources
> Prevalence of early-stage funds (Lowercase
Capital, Karlin Ventures, SV Angel, Plus Capital,
and Double M Capital)
> Large supply of technology-qualified talent
from L.A.'s local universities
> Talent is honed via entrepreneurship programs
in universities in partnership with local
accelerators
> Exemplary accelerator and incubator
infrastructure Influx since 2011 has provided
educational, collaborative and supportive
environments for entrepreneurs and start-ups
> Strong in creative content creation, particularly
in entertainment, aerospace, fashion, and
advertising
> Quick to adopt new technology (e.g.
programming languages like Python and Ruby)

1) Other benchmark slides are included in the Appendix


Source: Startup Ecosystem Report 2012 (Startup Genome); LA Startup Ecosystem 2013 (Be Great Partners)
CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

We found that several key factors contribute to the success of


start-up cities around the world
Key success factors

Talent pool with entrepreneurial culture

Strong support network and communities

Active accelerators and incubators to provide mentorship and


networking support to entrepreneurs and start-ups

Regulatory incentives

Government grants to facilitate startups and incentives to


promote angel investments

(applies to a nascent start-up city)

Pool of highly skilled talent with entrepreneurial mindset

Ease of doing business environment, including supportive legislation


for starting new businesses and new funding structures, as well as
minimal bureaucracy

Conducive business environment

Vibrant city with complete infrastructure and


ecosystem

Availability of funding

Availability of angel and venture capital funding to provide the


seed capital for start-ups

Established technology sector or niche

Established technology sector or niche provides strong base of


technology talent and entrepreneurial spin-offs

Holistic and dynamic city and living environment to attract the


best global talent as well as diversity of talent

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

B. KEY TECHNOLOGY AREAS

B1.
Overview of selected technologies

The Blueprint concluded with the selection of 5 carefully


selected technology areas
Selection approach
Focus industries

Universe of
relevant
technology areas

11 + 9
NKEAs add-ons
Filter

Filter

Filter

159

30

15

technologies

technologies

technologies

Filter

Filter

Relevance and fit with Malaysia 30%


Relevance to national economic strategy,

Leverage of internal capabilities 30%


Availability of talent base, access to raw

alignment & fit with capabilities, talent and


resource

materials, local ecosystem & size of applicable


industries

Current size
Market size, global R&D spend, number of local
and international players

Overall development potential


Future market growth, 'spillover' effect,
commercial viability of final output

Breadth of application
Number of applicable industries, importance of
industries to Malaysian economy

25%

Fit with CJ context /


environment
CJ's competitive proposition

20%

Technology potential /
readiness

Existence / strength of regional competition,


competitive advantages, spillover potential

Technology maturity, commercialization


potential, complexity of value chain

5
technologies
3

Demand for technology


Size and growth, amount of VC funding, number
of global patents

25%

Relevant companies

25%

Key enablers

20%

Point of differentiation

Relevance to ICT, pre-existing infrastructure and


ecosystem, barriers to building infrastructure in CJ

25%

Filter

Number and strength of large companies in the


technology space globally

Number of companies in CJ and availability of


talent

Differentiation against local and regional


competition

Weightage of criteria
CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

20%

10%

35%

35%

The 5 technology focus areas comprise of ICT related technologies


and 4 non-ICT technologies, beyond Cyberjaya's traditional core
Focus technology areas

Other
technologies

ICT

5 technology focus areas

5 ICT technology sub-segments

ICT technologies

Information security

Green technology

Creative content technologies

Biotechnology

Mobile internet

Wearable technologies

Cloud computing

Smart grid technology

Big data analytics

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

The final portfolio of technologies have strong synergies


with ICT core, as well as linkages with one another
Mapping of final technology portfolio
SSO 3)
Cloud
computing

Informatio
n
security

IT
Smart
sensors
Smart
grids
Renewa
ble
energies
Green technology

Cloud
data 1)

BDA

Bioinfo
BioTechnology

Fraud
detecti
on
Networ
k
security

Creative
multimedia
Mobile
internet Mobil
e apps

Creative content
technologies
AR2)
Wearable technologies

> Portfolio emphasizes key


role of ICT in Cyberjaya
> 4 new technologies are
not directly ICT-related
and allows Cyberjaya to
diversify
> However, linkages with
ICT still exist (e.g.
bioinformatics combines
biotech & IT; AR2) is
relevant in creative
multimedia and
wearable technologies)
> Balance between
mature tech (e.g.
creative content) &
cutting edge (e.g.
wearables)

Biofuels

MSC focus areas


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

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

B2.
Technology and competition
overview: ICT-related technologies

Technology profile: ICT Information security

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


Key global companies

Homegrown
companies

Profile: Information security

Description

Subcategories

> Technologies aimed at protecting integrity & safety of information


system resources & activities, and defending against unauthorized access
> With IT systems' thorough infusion into government organizations, business and infrastructure, security has risen to the forefront of concerns

> Access Control Systems


> Application security (e.g.
antivirus, secure coding)

5
4

Internal
capabilities
in Malaysia

> Authentication & authorization


> Intrusion detection &
prevention

1
5
4

> Growing interest, as seen with recent deal activities (e.g. Q1 Labs by IBM,
SonicWALL by Dell, or nCircle by Tripwire in 2013)
> Healthy growth driven by the increasing complexity & volume of
targeted attacks, and the necessity of companies to address regulatory
issues

Size &
potential

Fit with
Cyberjaya

3
2

Competitive
value
proposition

CAGR: +8.5%

67

2012

2013

86

93

2016

2017

Applicable
sectors

Electronics
&Electrical

Technology
potential &
readiness

Defence &
Security

Business
Services

> Currently no specific hub in Malaysia


> Existing regional competition S'pore with
attractive incentives under Infocomm
Roadmap, or Ochang Park (Korea)
> Data centres & IMPACT can serve as test-beds
for commercial applications

4
3
2

> Info security solutions already being


commercialized
> Strong demand growth benefiting from growth
of e-commerce, big data and the increasing
number of personal devices

1
Additional sectors proposed by RB

1) M'sian Common Criteria Evaluation & Certification, 2) Faculty for Information Science & Technology
Source: Gartner

Comms
content &
infra

National Key Economic Area (NKEA)

Source: Gartner

Financial
Services

> Strong fit Concentration of data centres and


highly relevant to ICT activities
> IMPACT is headquartered in Cyberjaya, and
MOSTI also plans to site its CyberSecurity HQ
> CIS, Centre for Information Security (Center of
Excellence) is housed by the FIST2) in MMU

Global sales revenue for information security market [USD bn], 2012 2016E

62

> Strongly supported by MOSTI (e.g. named as a


focus area for the country in ICT, creation of
CyberSecurity Malaysia in 2007)
> Existing programs to supply talent (e.g. UTM,
MMU)
> Establishment of MyCC Scheme 1)

Excellent

Very good

Good

Fair

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Poor

Regional competition: ICT Information security

S'pore becoming a hub for business IT security Northern Asian


countries already have well-developed cyber-security sectors
Information security: Level of regional activity
Singapore

South Korea

> Core area of IDA's National Cyber


Security Masterplan 2018 (e.g.
scholarships for information
security students, creation of
AISP1))

> Recognized expertise in the field


of data security and recovery
(e.g. Myung Information
Technologies)

> Several cyber security centers


(e.g: FireEye, KPMG)
> MOUs inked with Japan and
South Korea to collaborate in
cyber security matters

> Technavio expects the cyber


security market in Korea to post
a CAGR of 21% during the period
2013-2018 due to rising security
threats

South Korea

> Highly-skilled workforce


available

Taiwan

India

Myanmar

Laos
Thailand

Japan

China

> Japan aims to double the size of


its domestic information security
market by 2020 as part of its
national cyber-security strategy
(Source: NISC)

> Cyber security market revenues


up to USD 4.9 bn in 2012, and
could double by 2017 (Source:
ABI Research)

> NISC2) aims to improve the


overall level of information
security in Japan (e.g. set to sign a
cyber-security agreement with
the European Union)

> Financial Incentives for R&D


investments in the information
security industry offered by the
Chinese Ministry of Commerce
(MOFCOM)
> Growing pool of local companies
(e.g. CIST3))

Japan

China

Philippines

Vietnam
Cambodia

Brunei

Malaysia

Singapore
Aspiring technology hub

Indonesia

Intensity of regional competition: Moderate


> China, S. Korea & Japan already have advanced information security industries
> Within SEA, Singapore fast establishing itself as a regional hub for business information
security

1) Association for Information Security Professionals 2) National Information Security


Centre 3) China Information Security Technology

Extremely high
competition

High competition

Moderate
competition

Low
competition

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Technology profile: ICT Creative content technologies

Creative content technologies relate to the development and


production of multimedia content
Key global companies

Homegrown
companies

Profile: Creative content technologies

Description

Subcategories

> Refers to all technologies related to the development & production of


multimedia content
> Includes both conventional technology (e.g. 3D animation; interactive
media) and more avant-garde areas like virtual & augmented reality

> Animated content production


> Augmented Reality (AR)
> Virtual Reality (VR)

Internal
capabilities
in Malaysia

> Multimedia gaming (e.g.


alternate reality gaming)
> Interactive media

5
4

Fit with
Cyberjaya

3
2
1

Video games

Filmed entertainment
CAGR: +3.7%

CAGR: +6.5%

2012

87

89

106

2017

2012

2017

Competitive
value
proposition

Tourism

Comms
content &
infra

3
2

5
Automotive

Electronics
&Electrical

Healthcare

Shipping

Education

Aviation &
Avionics

Defence &
Security

National Key Economic Area (NKEA)

Additional sectors proposed by RB

1) National Film Development Corporation Malaysia, 2) Creative Multimedia Cluster

> Strong synergies between ICT and AR/VR (e.g :


in e-learning field)
> Talent available (e.g. MMU, Limkokwing)
> Existing production facilities and animation
companies (e.g. Giggle Garage, or KRU, coproducer of the 3D animated comedy Ribbit)
> Currently no specific designated hubs or zones
in Malaysia
> Competition with Mediapolis in One-North
Singapore Already attracted Lucasfilm
> Can benefit from the close collaboration of
digital content industry and MSC

Source: PwC Global Media Report

Source: PwC

Global sales revenue for Video Games and Filmed Entertainment


[USD bn], 2012 17e

63

Applicable
sectors

> Increased interest in AR/VR start-ups companies globally (e.g. acquisition


of Oculus Rift by Facebook for USD 2 bn)

Size &
potential

> Strong national support: FINAS1) (agency


responsible of developing the film industry),
"Film in Malaysia Incentive" (FIMI) and the
Creative Industry Development Fund
> MSC Malaysia already focuses on creative
content development, and set up the CMC2)

Technology
potential &
readiness

4
3
2

> Technology already developed and widely


commercialized (e.g. apps, location-based
services, Google Glass)
> Strong potential for new applications of AR/VR
(e.g. consumer electronics; auto)

1
5

Excellent

Very good

Good

Fair

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Poor

Regional competition: ICT Creative content technologies

Singapore making big push in creative content, while other countries


have ready markets for content Cyberjaya needs niche positioning
Creative content technologies: Level of regional activity
Singapore

South Korea

>

> Strong consumption of online


computer games (e.g. Nexus)

IDA1)

initiated the Digital


Marketplace Programme to
support the content industry

> Heavyweights attracted incl.


LucasFilms, Walt Disney,
Electronic Arts Asian HQ
> Mediapolis seeks to be a
regional digital content hub
> DigiPen, a leading institute for
gaming and animation has a
campus in Singapore

> KOOCA2) offer loans for co's to


finance content development

> Global leader in 4G penetration


& LTE subscription, USD 1.7 bn
plan to roll-out 5G network
attractive for new media
services such as mobile movie
streaming or mobile TV

South Korea

Taiwan

India

Myanmar

Laos
Thailand

Japan

India

> Pioneer in mobile content


services (e.g. NTT DoCoMo)

> Filmed entertainment revenue is


expected to expand by a CAGR
of 9.9% from 2012 to 2017, and
video games sales by 18% for the
same period (Source: PwC)

> Very attractive market: Worlds


#1 country in app store revenue,
USD 5.4 bn of mobile gaming
sales in 2013 (Source:
CyberAgent Tokyo)

> Key strengths of Japan: Wellestablished creative content


players (e.g. Nintendo, Sony),
highly-skilled workforce

Japan

China

> Strong IT-skilled workforce to


support the digital content
development industry

Philippines

Vietnam
Cambodia

Brunei

Malaysia

Singapore
Aspiring technology hub

Indonesia

Intensity of regional competition: Moderate


> Singapore making an aggressive play in this space and attracted heavyweights
> S. Korea content enjoys mass Asian appeal; India enjoys huge domestic market
> Need for Cyberjaya to have niche positioning (e.g. animation production)

1) Infocomm Development Authority, 2) Korea Creative Content Agency

Extremely high
competition

High competition

Moderate
competition

Low
competition

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Technology profile: ICT Mobile internet

Mobile internet usage will witness significant medium term growth


Key global companies

Homegrown
companies

Profile: Mobile internet

Description

Subcategories

> Also known as Web 3.0, Mobile Internet refers to access to the Internet
via a cellular telephone service provider
> It involves a combination of mobile computing devices, high-speed
wireless connectivity, and applications

Internal
capabilities
in Malaysia

> Smartphones, tablets & other > High-speed mobile connectivity


handheld devices
> Mobile software & applications
> According to McKinsey, no. of smartphones in use grew 50% in 2012 and
currently >1.1 billion people use smartphones and tablets
> Sales of smartphones projected to reach 1.3 bn units per year in 2013;
tablet sales expected to reach 200 m units

Size &
potential

Global mobile data traffic (exabytes per month), 2013 2018e


16
11
7
4
3
2
2013

2014

2015

2016

2017

Applicable
sectors

3
2
1
5
4

Fit with
Cyberjaya

3
2

Competitive
value
proposition

2018

4
3
2

Technology
potential &
readiness

Financial
service
Comms
content &
infra

National Key Economic Area (NKEA)

> Strong competitive value proposition given


Cyberjaya's position as the nucleus of MSC
Malaysia; however, growing competition from
other cyber-cities & centres nationwide
> Regional competition is also strong from
Indonesia and China as mobile internet hubs

1
5

Education

> High fit with Cyberjaya given the direct ICT


relevance
> Require further growth in high value ICT
activities including new mobile software and
application R&D
> Co's in Cyberjaya incl. GoodCore Software

Source: Cisco

Wholesale
& retail

> Limited capabilities in the design and


development of new mobile devices
> However, capabilities exist in mobile software
and applications development (e.g.
GoodCore Software, Techno Softwares, iPluz,
etc)

4
3

> Relatively low technology-specific risk given


high level of technology maturity
> Numerous commercial applications already in
existence

2
1

Additional sectors proposed by RB

Excellent

Very good

Good

Source:McKinsey; Cisco

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Fair

Poor

Regional competition: ICT Mobile internet

Active R&D programs have been launched on mobile networks and


devices in Northern Asia Moderate level of competition within SEA
Mobile Internet: Level of regional activity
Singapore

South Korea

> One of the leading countries


with 87% smartphone
penetration (Source: Nielsen)

> Leader in 4G penetration Science Ministry will invest USD


1.7 bn to develop and roll-out a
new 5G network

> IDA is driving cross-sectoral


application of innovative mobile
services (e.g. mGov initiative
drives the delivery of m-govt
services)
> Chosen by Qualcomm as a
regional hub for R&D on nextgeneration mobile chipsets

> R&D collaboration between state


institutes, telco players &
smartphones manufacturers

South Korea

Japan

China

> Influential research centers in


Daedeok Innopolis (e.g. KAIST1),
ETRI2) which developed WiBro
technology3))

Taiwan

India

Myanmar

Laos
Thailand

Indonesia

China

> Explosive growth of mobile


Internet due to cheap
smartphones & data packages
(e.g. #2 market for mobile ads in
the world in 2013)

> > 500 m web mobile users


according to China Internet
Network Information Center

> Heavy investments from Asian


messaging apps (e.g. LINE,
WeChat), and sprouting local
start-ups (e.g. Ruma)

> Leading telco equipment


manufacturers (e.g. Huawei, ZTE)
conducting heavy R&D in mobile
internet
> Attracted global players to
conduct R&D in the country (e.g.
Microsoft in Shenzhen,
Qualcomm in Shanghai)

Philippines

Vietnam
Cambodia

Brunei

Malaysia

Singapore
Aspiring technology hub

Indonesia

Intensity of regional competition: Moderate


> Significant R&D being done on mobile networks & connectivity region-wide

> Cyberjaya can either focus on innovative mobile services, or become the test-bed for
next-generation networks in SEA

1) Korea Advanced Institute of Science and Technology, 2) Electronics & Telecomm.


Research Institute, 3) World's first high-speed mobile internet

Extremely high
competition

High competition

Moderate
competition

Low
competition

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Technology profile: ICT Cloud Computing

Cloud-based platforms will form the bulk of future IT spending


Key global companies

Homegrown
companies

Profile: Cloud computing


Description

Subcategories

> Involves distributed computing over a network, where a program or


application may run on many connected computers at the same time
> Relies on a group of computing hardware machines connected through a
communication network (e.g. internet, intranet, LAN, WAN)
> Infrastructure as a service
(IaaS)
> Software as a service (SaaS)

Cloud services by market segments [USD bn], 2010 2016E


300
Cloud Management and Security Services
24
200
18
13
Cloud System Infrastructure Services (IaaS)
33
3
4
9
28 48
6
24 43
11
13
20 39
100
31 16 35
Cloud Application Infrastructure Services (PaaS)
95
27
29
83
71
61
53
43
0 34
Cloud Application Services (SaaS)
201 201 201 201 201 201 201
0
1
2
3
4
5
6

Applicable
sectors

Financial
services

Comms
content &
infra

Electronics
&Electrical

Aviation &
Avionics

Fit with
Cyberjaya

5
4
3
2
1

> Highly relevant given Cyberjaya's ICT focus


> SME Cloud Computing Adoption Prog incentive
by MDeC to promote adoption of cloud
computing by local SMEs
> Use of cloud by a number of large ICT co's in
Cyberjaya currently, e.g. NTT, Cisco, HP

5
4
3
2
1

> Strong competitive advantage locally given


Cyberjaya's focus on ICT compared to other
domestic technology parks
> Competition from Singapore and HK as cloud
computing hubs Countries with the most
data centres in Asia Pacific region

Competitive

value
proposition

Cloud Business Process Services (BPaaS)


Cloud Advertising

Technology
potential &
readiness

Business
services

National Key Economic Area (NKEA)

> One of the 6 focus areas of the Strategic ICT


Roadmap
> Government is promoting development of
cloud computing to provide SMEs with critical
software applications for enterprise
management

> Platform as a service (PaaS)


> Cloud security
> Cloud engineering

> Gartner predicts bulk of new IT spending by 2016 will be for cloud
platforms, with nearly half of large enterprises using cloud by end 2017
> In M'sia, cloud computing may contribute about RM5.0 billion of GNI
and create approx. 11,500 jobs (Strategic ICT Roadmap)

Size &
potential

Internal
capabilities
in Malaysia

5
4
3
2
1

Additional sectors proposed by RB

5 Excellent

5 > Relatively mature technology with broad


applications, including application hosting,
4
and network storage
3 > Leading constraints to the use of cloud include
information security, data ownership/
2
custodian responsibility, and legal issues
1
4 Very good 3 Good
2 Fair
1 Poor

Source: Garner; McKinsey


CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Regional competition: ICT Cloud Computing

The cloud computing market is increasing in competition Major


global players have opened R&D labs in China, India & Singapore
Cloud computing: Level of regional activity
India

Singapore

> Bangalore is a hub for


innovative cloud solutions
(e.g. 'HANA' from SAP, 'Cloud
Ecosystem Hub' from
Infosys), fostering the
development of local players
(e.g. Netmagic)

> IDA3) offer financial incentives


for companies adopting cloud
solutions, or investing in R&D
activities in cloud computing
Singapore

> Active gov't efforts in cloud


services (e.g. MeghRaj
project1), use of Microsoft's
platforms for Jammu &
Kashmir e-govt services)

> Several R&D labs in cloud


computing opened in
Singapore (e.g. IBM, Intalio),
and university research
centers (e.g. in NUS, or in
Singapore Polytechnic)

South Korea

Taiwan

India

Myanmar

Laos
Thailand

Japan

China

> Fast adoption of cloud


solutions due to excellent IT
infrastructure and
broadband

> Attractive market supported


by the government (e.g.
Amazon partnership with
Beijing's municipality, IBM &
21Vianet)

> Japan should remain Asia's


largest cloud services market
until 2020 (Source: Forrester)
> Growing demand for PaaS2)
solutions (e.g. Microsoft
increasing the capacity of
Azure, IBM's new data centre
for BlueMix solutions)

> Local players in cloud


services (e.g. Alibaba, Wuxi
China)
> Several R&D labs in Beijing
(e.g. IBM, Microsoft, Yahoo!)
> China Mobile & China Unicom
will build 2 cloud computing
parks in Guizhou Province

1) India's government cloud infrastructure 2) Platform-as-a-service


3) Infocomm Development Authority 4) National University of S'pore

Japan

China

Philippines

Vietnam
Cambodia

Brunei

Malaysia

Singapore
Aspiring technology hub

Indonesia

Intensity of regional competition: High


> India, China and Japan have already attracted MNCs research activities due to their large
and mature markets for cloud solutions
> Growing pool of domestic companies offering cloud services e.g. China

Extremely high
competition

High competition

Moderate
competition

Low
competition

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Technology profile: ICT Big Data Analytics

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


Key global companies

Homegrown
companies

Profile: Big Data Analytics (BDA)


Description

> BDA is the analysis of data sets so large and complex that it becomes
difficult to process using on-hand database management tools or
traditional data processing applications

Subcategories

> Big data infrastructure


> Capture & storage
> Data search & mining

Fit with
Cyberjaya

5
4
3
2
1

> Strong potential to build on established data


centre business in Cyberjaya
> Aligned with MDeC's objective to move up
value chain toward more KPO activities
> Many existing homegrown companies e.g.
Pulse Group, Web Bytes

Competitive
value
proposition

5
4
3
2
1

> Currently no designated BDA hub in M'sia


> Closest competitor is S'pore, which has
announced ambitions to become a regional
BDA hub Appointed a Chief Data Scientist
> S'pore Economic Devt. Board is focusing on
attracting data-centric companies

Global big data market [USD bn],


CAGR: +39%
2010-15e

4.8

6.8

9.7

12.9

16.9

3.2
2010

2011

2012

2013

2014

2015

Servers
Oil, Gas &
Energy

Applicable
sectors

> BDA's applications cut across multiple NKEAs


> BDA is one of the pillars of "Digital Malaysia"
> Events like the annual Big Data Worldshow
help to increase M'sia's profile as a BDA hub
> Other strengths: Low electricity tariffs; existing
talent pool; presence of agencies (MDeC)

> Data sharing & transfer


> Data analytics & visualization

> IDC predicts that the global market for big data technology and services
will grow to USD 16.9 bn by 2015 (39% CAGR)
> Growth of individual segments of the market varies from 27% for servers
to 61% for storage

Size &
potential

Internal
capabilities
in Malaysia

5
4
3
2
1

Storage
Wholesale
& Retail

Networking
Comms
content &
infra

Software

Aviation &
avionics

Services

Chemicals

Waste mgt
Defence &
Security

Palm Oil &


Rubber

Healthcare

Healthcare

Biotechnology

Shipping

Electronics
&Electrical

Business
services

Consumer
products

Automotive

Public
transport

National Key Economic Area (NKEA)

Source: Desktop research; IDC

Additional sectors proposed by RB

Technology
potential &
readiness
5 Excellent

5 > Very mature Broad commercial applications


exist
4 > already
Big part of value chain already present in the
form of data centre activity in Cyberjaya
3
2
1
4 Very good 3 Good
2 Fair
1 Poor

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Regional competition: ICT Big Data Analytics

Singapore and China have been actively attracting major players in


BDA to locate in their country by offering attractive incentives
Big Data Analytics (BDA): Level of regional activity
Singapore

Thailand

>

> IBM decided to open its new


business innovation analytics
centre in BKK last year
Serves as its SEA data hub

IDA1)

hired Chief Data


Scientist Prabir Sen to lead
its Data Sciences Group

> Events to bring together data


providers and specialists (e.g.
Data Innovation Challenge)
> IDA collaborates with
Institutes of Higher Learning
to provide academic
programs and facilitate
industry attachments

> Other strengths: educated


workforce, well developed
infrastructure and steady
growth in high-tech industry

South Korea

Taiwan

India

Myanmar

Laos
Thailand

China

India

> Market generates huge


amount of data due to size

> Market generates huge


amount of data due to size

> Leading local firms starting


to include BDA into
corporate strategy (e.g.
Alibaba)

> Nasscomm predicts BDA mkt


to be worth USD 1 bn by '15

> Guizhou aggressively


positioning itself as BDA hub

> Many local BDA start-ups are


sprouting e.g. Bizosys,
Crayon Data

> China's top 3 telco carriers


building big data facilities in
Guiyang, Guizhou's capital,
investing > RMB 15 bn

1) Infocomm Development Authority


Source: Desktop research

Japan

China

Philippines

Vietnam
Cambodia

Brunei

Malaysia

Singapore
Aspiring technology hub

Indonesia

Intensity of regional competition: Extremely high


> Singapore making aggressive play, while Thailand has cheaper cost base
> China and India have more massive big data potential More attractive to co's
> Singapore and China (Guizhou) actively attracting big names using incentives
Extremely high
competition

High competition

Moderate
competition

Low
competition

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

B3.
Technology and competition
overview: Other technologies

Technology profile: Green technology

Green technology applies environmental science to conserve


the environment
Homegrown companies

Key global companies

Profile: Green technology

Description

Subcategories

> Application of environmental science to conserve the environment and


and to curb negative impacts of human involvement
> E.g. Biofuels fuels produced from biomass conversion; Solar
photovoltaics - generating electrical power from solar radiation

> Biofuels
> Carbon capture
> Clean coal

Internal
capabilities
in Malaysia

> Hybrid and electric technologies


> Solar photovoltaics
> Hydropower / wind power

98
91

Solar

158

TOTAL

Fit with
Cyberjaya

3
2

248

Competitive
value
proposition

2023

398

Biotechnology

Shipping

Tourism

Aviation &
avionics

Public
transport

Consumer
products

Automotive

Waste mgt

National Key Economic Area (NKEA)

4
3
2

Additional sectors proposed by RB

> Competition exists from other parks with


green technology focus e.g. Technology Park
Malaysia, Senai Hi-Tech Park and Kulim Hi-Tech
Park
> Regional competition, e.g. HK Science & Tech
Park, Singapore's CleanTech One

1
5

Oil, Gas &


Energy

> Cyberjaya embarked on green tech agenda in


2010 in sync with NGTP
> Sepang Municipal Council offers tax incentives
for green buildings
> Aims to be a green township However,
lacking in terms of implementation

Source: Clean Edge

Applicable
sectors

5
2013

146

Global clean energy projected size [USD bn], 2013 2023E


Biofuels

> Strong focus via National Green Technology


Policy (NGTP) in 2009
> Malaysian Green Technology Corporation
(under KeTTHA) as champion
> Green Technology Financing Scheme for co's
which are producers/users of green tech

> Clean Edge estimates the global clean-energy industry to be worth


USD248 bn in 2013, and will grow to USD398 bn in 2023
Biofuel market to grow from USD98 bn in 2013 to USD146 bn by 2023
Solar market to grow from USD91 bn in 2013 to USD158 bn by 2023

Size &
potential

Technology
potential &
readiness

4
3

> Wide breadth of commercial applications with


mix of established technologies (e.g. green
buildings) and emerging technologies areas
(e.g. biofuels; solar photovoltaics)

2
1

Excellent

Very good

Good

Fair

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT


Source: Plunkett Research, Clean Edge, Inc

Poor

Regional competition: Green technology

Fast growing markets of China and India are investing aggressively


in green tech Japan and South Korea among market leaders
Green technology: Level of regional activity
China

Japan

> World's largest investor in clean


energy ($54 bn in 2013)

> World's fastest growing clean


energy market in 2013 - ranks
3rd in clean energy investment
after China and US ($28.6 bn in
2013)

> Govt provides low-interest loans,


funds industry-wide R&D and
provides subsidies for private
co's to purchase clean tech
> Biggest exporter of solar power
components and has one of the
biggest wind turbine manuf.
industries

South Korea

> Long history with solar Sharp


has been developing solar tech
for >50 years

Japan

China

> Ongoing efforts to displace


nuclear energy has propelled
nation's clean energy sector
Taiwan

India

Myanmar

Laos
Thailand

South Korea

India

> Targets 11% renewable energy


share in final energy
consumption by 2030

> Investing in clean technology to


keep up with demand from a
growing population

> In 2013, USD600 m was invested


in the solar sector, and USD100
m in wind sector

> Within the G-20, the Indian


renewables market remained
the eighth largest for the second
year in a row

> Samsung is competing


aggressively in green tech,
growing its solar manufacturing
capacity from 150 MW now to 3
GW by 2015

> Ambitious clean energy target in


Indias 12th five-year plan

Philippines

Vietnam
Cambodia

Brunei

Malaysia

Singapore
Aspiring technology hub

Indonesia

Intensity of regional competition: Moderate


> China continues to invest heavily in clean energy driven by government incentives
> Japan is investing significantly in clean energy to diversify from nuclear
> Cyberjaya may be able to position itself to compete in South East Asia
Extremely high
competition

High competition

Moderate
competition

Low
competition

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Technology profile: Biotechnology

Biotech uses biological systems or their derivatives to produce


useful products and processes
Key global companies

Homegrown
companies

Profile: Biotechnology

Description

Subcategories

> Technological application that uses biological systems, organisms, or


derivatives thereof, to make or modify products and processes for
specific use, e.g. to combat diseases, reduce carbon footprint and feed
the world
> Genomics & genetic modif'n
> Bioinformatics
> Bioelectricity

Internal
capabilities
in Malaysia

> Biomass
> Tissue culture
> Bioengineering

4
3
2

> Strong emphasis via the National Biotech


Policy ('05) and Bioeconomy Transformation
Programme ('12) and dedicated agency,
BiotechCorp, to drive growth of biotech ind'y
> 225 BioNexus status companies; foreign co's
present incl. Arkema, Gevo and MetEX

1
5
4

Fit with
Cyberjaya

> Ernst & Young (EY) estimates that there are 598 listed companies
globally, with market capitalisation of USD477.3 billion as at 2012
> EY also estimates global R&D expenses of USD25.3 billion in 2012

3
2

> Not ICT related, save for bioinformatics,


(develop't of methods for storing, retrieving,
organizing and analyzing biological data)
> Lack of existing facilities for biotech (e.g.
biotech laboratories; hospitals)
> Not a focus area of study in universities

1
Total Capital Raised in North America and Europe [USD bn], 2002-2012

Size &
potential

40

Competitive
value
proposition

20
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

4
3
2

Source: EY

Applicable
sectors

Oil, Gas &


Energy

Healthcare

Automotiv
e

Palm Oil &


Rubber

Consumer
products

Waste mgt

Agriculture

Biotechnology

National Key Economic Area (NKEA)

> Competition from Bio-Xcell, dedicated biotech


park in Iskandar and other parks with biotech
co's e.g. Techpark @ Enstek, Technology Park
M'sia & Kulim Hi-Tech Park
> Regional competition from Biopolis (S'pore)
and Hong Kong Science Park

Technology
potential &
readiness

3
2

> Developed technology area with breadth of


applications
> Sizeable domestic markets in place to use
outputs arising from the biotechnology
industry e.g. use of genetic R&D for yield
improvement within palm oil and rubber

1
Additional sectors proposed by RB

Excellent

Very good

Good

Fair

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT


Source: EY Biotechnology Industry Report 2013

Poor

Regional competition: Biotechnology

Japan and China are very competitive in biotechnology due to their


large markets S'pore becoming an R&D hub for Southeast Asia
Biotechnology: Level of regional activity
Japan

China

> Highly-skilled scientific


workforce, and leading local
biopharma companies (e.g.
Takeda, Eisai)

> Ministry of Science & Technology offers tax incentives


for R&D activities in
biotechnology

> Companies can conduct coresearch programs with


government agencies (e.g.
Ministry of Health and
Welfare)

> Significant research been


done in ZhangJiang Science
Park, Shanghai, with both
MNCs (e.g. Roche, Pfizer),
and development contractors
(e.g. Hutchison MediPharma,
Wuxi)

> World's #2 pharma market


for sales revenue, USD 111 bn
in 2011 (Source: IMS Health)

Thailand

> Talent availability, world-class


research institutes (e.g. NUS
Cancer Science Institute) and
testing facilities offered by
the surrounding hospitals
attracted several influential
R&D centers in Biopolis (e.g.
Abbott, GSK)

> Attractive tax incentives


offered by the BOI2) for
biotech-related activities
(R&D, manufacturing),
additional ones for locating in
Thailand Science Park3)
> BIOTEC (a research centre
under the Ministry of Science
&Tech), active in co-research
programs (e.g. with Novartis)

> High-quality hospitals,


offering testing facilities for
biotech co's

1) Economic Development Board, 2) Board of Investment, a government


agency under the ministry of Industry, 3) Located in Rangsit, north of Bangkok

Japan

China

Taiwan

India

Myanmar

> Attractive market due to its


very large population

Singapore

> Strong support from the gov't


(e.g. R&D incentives, public
research initiatives, funds
available from the EDB1))

South Korea

Laos
Thailand

Philippines

Vietnam
Cambodia

Brunei

Malaysia

Singapore
Aspiring technology hub

Indonesia

Intensity of regional competition: High


> Several leading companies have opened their Asian R&D labs in Singapore or in China,
mainly for their skilled workforce and significant incentives offered
> Thailand also making push in biotech, leveraging on its strong healthcare system

Extremely high
competition

High competition

Moderate
competition

Low
competition

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Technology profile: Wearable technologies

The global wearables technology market is expected to grow


at 25% CAGR between 2012-2018
Key global companies

Homegrown
companies

Profile: Wearable technologies


Description

Subcategories

> Wearable technology (or "fashion electronics") refers to clothing &


accessories incorporating computer and advanced electronic
technologies
> Designs often incorporate practical functions and features, but may
also have a purely aesthetic agenda

Internal
capabilities
in Malaysia

> E-textiles & intelligent clothing > Digital accessories (e.g. smart
> Health-related devices (e.g.
watches, glasses, headgear)
activity trackers, heart monitors) > Embedded technologies

Fit with
Cyberjaya

3
2

Competitive
value
proposition

20
0
2013

2014

2015

2016

2017

2018

4
3
2

Applicable
sectors

Healthcare

Education

Consumer
products

Comms
content &
infra

Biotechnology

National Key Economic Area (NKEA)


Source: IHS, CBN Insights

Defence &
Security

> No designated hub for wearable tech in M'sia


> Penang could be potential hub given Intel's
strong presence there
> Strong competition from other Asian cities (e.g.
Tianjin Economic park in China, or Singapore for
healthcare-oriented wearables)

Source: IHS, CBN Insights


Electronics
& Electrical

> Can potentially leverage on key IT companies


located in Cyberjaya (e.g. HP, Dell)
> Higher-value add activity within ICT, fully aligned
with MDeC's objectives
> May require experience in electronics
development, which Cyberjaya does not have

1
5

CAGR: +25.3%

2012

2
5

Global wearable technology market [USD bn], 2012-16e


40

3
1

> Juniper Research identified 2014 as key year for wearable tech in terms
of roll-outs and market traction Predicts 70 m items to be sold by
2017
> ABI Research is even more bullish, expecting more than 485 m wearable
devices shipping by 2018

Size &
potential

> Wearables are mentioned as one of the hot


topics for development under Digital M'sia
roadmap However, no specific blueprint
exists
> Lack of local companies investing into
wearable R&D

Technology
potential &
readiness

4
3
2

> Globally recognized as a very high potential


group of technologies
> Strong demand outlook especially for health &
fitness wearables (e.g. blood pressure
monitors, hearing aids)

1
Additional sectors proposed by RB

5 Excellent

4 Very good

3 Good

2 Fair

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

1 Poor

Regional competition: Wearable technologies

Activity on wearables is currently concentrated in more advanced


countries in the northeast Competition in SEA mainly from S'pore
Wearable technology (WT): Level of regional activity
Singapore

Japan

> Poised to ride the wave with its


expertise in manufacturing,
electronics & software
application

> NTT Corp / Toray Industries will


soon release shirts that can
monitor peoples heart rate &
take electrocardiograms

> A*STAR's Exploit Technologies


(tech transfer arm) actively
nurtures devt of homegrown WT
prototypes

> Sony will push wristbands that


digitally record and data on daily
activities

> Host of global conferences e.g.


Startup Asia 2014

South Korea

Japan

China

> Smaller local start-ups also


entering into the fray e.g. MOFF1)
Taiwan

India

Myanmar

Laos
Thailand

Taiwan

South Korea

> Flagship brands like Acer, HTC


not major players Taiwan's
focus will be in parts supply and
device assembly

> Samsung is a global WT leader


with offerings like Samsung Gear
LG also entering the fray with
G-watch

> That said, Google actively


investing in / buying WT patents
from local tech co's e.g. Himax,
Hon Hai

> Local universities and institutes


carrying out cutting-edge
research e.g. body heat to
charge WT devices (Korean
Advanced Institute of Science
and Technology, or KAIST)

> Regular host of global WT events


e.g. Wearable Technology
Conference 2013

Philippines

Vietnam
Cambodia

Brunei

Malaysia

Singapore
Aspiring technology hub

Indonesia

Intensity of regional competition: Moderate


> Research activity concentrated in more advanced countries in northeast Asia
> Taiwan set to serve as a key WT device assembly hub for the world
> Moderate competition within SEA itself, primarily from S'pore

1) Wristband toy gadget equipped with acceleration sensors and gyros, that detects
childrens arm movements and translates them as sounds

Extremely high
competition

High competition

Moderate
competition

Low
competition

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Technology profile: Smart grid technology

The global smart grid market is expected to be worth


USD 100 bn by 2016
Key global companies

Homegrown companies

Profile: Smart grid technology


Description

Subcategories

> Modernized electrical grid that uses analog or digital ICT to gather and
act on information (e.g. info about behavior of suppliers and
consumers) in an automated way to improve efficiency, reliability and
economics of the production and distribution of electricity

> Integrated communications


> Sensing & measurement (e.g.
smart meters)

Internal
capabilities
in Malaysia

> Variable Frquency mode of ops


> Smart power generation (match
production with demand)
>

33
25
2011

72

44

59

34
2012

45

57

2013

2014e

71
2015e

Fit with
Cyberjaya

3
2

100
Asia

81

Competitive
value
proposition

2016e

Oil & Gas

Defence &
Security

National Key Economic Area (NKEA)

3
2

> Melaka earmarked to be a "showcase" city


for smart grid technology by 2030
> Existing regional competition to attract R&D
players (e.g. IES pilot project or EPGC2) in
Singapore, State Energy Smart Grid R&D
Center in Shanghai)

5
4
3
2

> Strong demand outlook due to global efforts


to reduce energy consumption
> Solutions already commercialized, used and
providing encouraging results (e.g : in
Massachusetts, Telegestore in Italy)

1
Additional sectors proposed by RB

1) Advanced Meter Infrastructure, 2) Experimental Power Grid Centre


Source: Copenhagen Cleantech Cluster; MEC Intelligence

Technology
potential &
readiness

Electronics
&Electrical

> ICT is core technology behind smart grids


> Some companies with smart grid expertise
located in Cyberjaya (e.g. Shell, Fujitsu,
Mahindra Satyam) But no R&D activities
conducted here

Source: Copenhagen Cleantech Cluster; MEC Intelligence

Applicable
sectors

5
Europe
+ America

CAGR: +25%

26
19
2010

Global sales revenue for smart grid [USD bn], 2010 2016E

88

> Strong fit with government's aim to reduce


energy consumption and carbon footprint
> Existing national projects (e.g. Melaka Smart
City 2030) & local players conducting R&D (e.g.
TNB collaboration with Trilliant in Selangor,
GreenTech M'sia partnership w/ GE)

> Healthy growth due to improvements in ICT (e.g. smart sensors, intelligent
networks) and global willingness to reduce energy consumption
> Growing interest from VC funds and large MNCs ( e.g. Consert acquired by
Toshiba, Nest by Google, Cisco large investment in AMI 1))

Size &
potential

5 Excellent

4 Very good

3 Good

2 Fair

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

1 Poor

Regional competition: Smart grid technology

Countries in the region are embarking on smart grid pilots for nationwide roll-out Cyberview can still serve as a "showcase" for M'sia
Smart grid technologies: Level of regional activity
Singapore

Thailand

> EMA1) conducting Intelligent


Energy System pilots in new
public housing estates in
Punggol Testing smart meters,
in-home displays, etc

> Energy agencies launched Smart


Grid roadmap in 2011
Investing USD 4bn over 16 yrs

> EMA also embarked on a microgrid test-bed on Pulau Ubin


using intermittent renewable
energy

> Smart Grid pilot in Mae Hong


Son began last year and
expected to be completed by
Dec 2015 If successful, to be
rolled out nationwide

South Korea

> Chulalongkorn University also


launching a Smart Grid pilot
project in several provinces

Taiwan

India

Myanmar

Laos
Thailand

Philippines

Vietnam
Cambodia

China

India

> According to State Grid


Corporation, 2011-15 will be
dedicated to promotion of smart
grid construction

> In the midst of its R-APDRP2)


programme which directs USD
10 bn over coming yrs to grid
modernization Tata
Consultancy Services playing a
lead role

> China spent more on smart grids


than the U.S. for the first time in
2013 USD 4.3 bn invested
accounts for ~1/3 of world total
> China has installed ~250 m smart
meters nationwide

> Ministry of Power shortlisted 14


Smart Grid Pilot Projects to be
implemented by state-owned
distribution utilities

Japan

China

Brunei

Malaysia

Singapore
Aspiring technology hub

Indonesia

Intensity of regional competition: Moderate


> Many countries in region already conducting state-led pilots for smart grids
> Cyberjaya can still serve as a test-bed for smart grid technology, to be rolled out on a
national level once proven successful

1) Energy Market Authority, 2) Restructured Accelerated Power Development and Reform


Programme

Extremely high
competition

High competition

Moderate
competition

Low
competition

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

C. POSITIONING STRATEGY
AND ACTION PLAN

Positioning strategy: ICT Information security

Cyberjaya could position itself as a centre for regional


collaboration on cybersecurity in South East Asia
Information security: Positioning strategy for Cyberjaya
SWOT analysis for Cyberjaya
Strengths

Cyberview's role
Weaknesses

> Strongly supported by


MOSTI (e.g. CyberSecurity
M'sia created in '07)
> Existing programs to supply
talent (e.g. UTM, MMU)
> IMPACT is headquartered in
Cyberjaya; MOSTI also plans
to site its CyberSecurity HQ
here
> CIS (Centre for Information
Security) is housed in MMU

> No weaknesses identified at


present

> Strong demand growth


benefiting from growth of ecommerce, big data and the
increasing number of
personal devices

> Existing regional


competition S'pore with
attractive incentives under
Infocomm Roadmap, or
Ochang Park (Korea)

Driver
Champion
Facilitator

> Specific agencies already set up (e.g. MDeC,


Cybersecurity Dept in MOSTI) Cyberview to engage
agencies on CJ's focus areas & jointly develop plans
> Cyberview to serve as intermediary to facilitate
discussion among stakeholders, incl. companies
looking to set up, investors & property owners

Positioning strategies
CJ as centre for regional collaboration within SEA on cybersecurity,
A. Market
leveraging presence of IMPACT and Cybersecurity HQ
talent pool from universities like MMU that can provide ready,
B. Emphasize
high-skilled labor to information security companies relocating to CJ
financial incentives from govt agencies for information security
C. Stress
companies located in CJ (to be worked out with MDeC, MOSTI, MIDA etc)

Target companies

Opportunities

Threats

1 Cisco

4 FireEye

2 IBM

5 Check Point

3 Symantec

Barracuda
6 Networks

1) Positioning strategy slides for all other shortlisted technologies are included in the Appendix

10

Action plan: ICT Information security

Related agencies such as MIMOS and IMPACT will need to be


engaged during the action plan implementation
Information security: Action plan (High-level)
2014
Strategic
Thrust

A
Initiating
contact with
companies

B
Establishing
regulatory
framework

C
Fostering
technology
platforms

Q3

2015
Q4

Q1

Q2

2016
Q3

Q4

Q1

Q2

2017
Q3

Q4

Q1

Q2

Q3

Q4

Initiatives
Relevant
agencies to be
consulted
before
approaching
companies

First contact with top 5 companies


(Round 1)
> Companies to be contacted: Cisco, IBM,
Symantec, FireEye, Check Point
> To align with MDeC, MIDA if there are
ongoing discussions with target companies

Trigger discussions & align


with relevant agencies
> Initiate talks with MIDA,
InvestKL
> Meet with MOSTI, KKMM,
MDeC to discuss possibility of
coming up with customized
fiscal incentives

Talk to MIMOS

Seek Cabinet approval for


proposed plans
> Sector-specific incentives may
require approval from Cabinet
> Approval process expected to
take ~9-12 months

Define strategic R&D plan

> Understand MIMOS' > Set quantitative long-term program of


existing platforms
public investment for R&D required

Talk to IMPACT

Develop talent development


programs

> Stocktake to clarify > Discuss with Education Ministry & relevant
activities to leverage
universities to develop suitable programs

1) Positioning strategy slides for all other shortlisted technologies are included in the Appendix

Follow-up with
Round 1 co's

Approach 2nd
priority companies
(Round 2)

> 2nd round of


> (If required)
meetings where
> To be "activated" if
incentive packages
negative replies
will be presented
received from 1st
and discussed
tier companies

Reassess & update shortlist of target


technology areas & companies
> To factor in new emerging areas and
companies
> Roland Berger can assist in steering this
process

Assemble and present incentive package to attract target companies


> E.g. tax benefits, research grants, discount on office rentals / land sales, training grants

Execute R&D and talent development plans


> MOSTI & MIDA to serve as lead agencies
> Establish collaboration with MIMOS and other relevant agencies (e.g. Cybersecurity M'sia)
or industry players to make available existing technology platforms in Cyberjaya

Positioning strategy: ICT Creative content technologies

Cyberview should facilitate the development of the creative content


industry & develop CJ as a national hub for creative industries
Creative content technologies: Positioning strategy for Cyberjaya
SWOT analysis for Cyberjaya
Strengths

Cyberview's role

> Strong national support:


FINAS1), which offers
financial incentives (FIMI2)),
CMC3) under MSC Malaysia
one of MDeC's main focus
areas
> Presence in Cyberjaya of
universities specialized in
this area (MMU, Limkokwing
Uni.)
> Established local creative
co's in Cyberjaya (e.g. KRU
Studios, Giggle Garage)

> Besides animation studios


and mobile apps developers,
lack of a strong industry
base (e.g. gaming industry,
filmed entertainment)
> Shortfall of talent in 2013
(based on MDeC statistics)

> Strong demand outlook for


all the sub-segments:
augmented reality, gaming
industry, etc.
> Increasing focus on
developing content adapted
to specific geographic areas
most global players are not
very present in SEA

> Singapore made a strong


push in creative content
and already attracted
leading players (e.g.
LucasFilm, EA)
> Competition from
Northern Asian markets
due to their size & skilled
workforce (e.g. Japan for
mobile apps, India for
films)

Opportunities

> The ecosystem to develop creative content already


exists in Malaysia (gov't agencies providing incentives,
universities, local companies) Cyberview should
encourage closer collaboration
> Cyberview should be able to sell and advocate this
creative ecosystem to attract foreign companies

Weaknesses
Driver
Champion
Facilitator

Positioning strategies
the main players of the industry (e.g. FINAS) in Cyberjaya, market it as
A. Bring
the national hub for creative people where synergies are created

Threats

talent pool from universities like MMU that can provide a


B. Emphasize
creative workforce with the right mindset for companies in Cyberjaya
financial incentives from govt agencies for creative multimedia
C. Stress
companies located in CJ (to be worked out with MDeC, FINAS, etc)

Target companies
1 Dreamworks

4 Electronic Arts

(Back-up) Frog Design

2 Blizzard

5 Studio Ghibli

3 Disney

(Back-up) Moving
Picture)

10

1) National Film Development Corporation Malaysia, agency and authority entrusted with the responsibility of developing film industry in Malaysia, 2) Film in Malaysia Incentive,
3) Creative Multimedia Cluster

Action plan: ICT Creative content technologies

A closer collaboration with MDeC should be the first step to


encourage the development of the creative content industry in M'sia
Creative content technologies: Action plan (High-level)
2014
Strategic
Thrust

A
Initiating
contact with
companies

B
Establishing
regulatory
framework

C
Fostering
local content
development

Q3

2015
Q4

Q1

Q2

2016
Q3

Q4

Q1

Q2

2017
Q3

Q4

Q1

Q2

Q3

Q4

Initiatives
Relevant
agencies to be
consulted
before
approaching
companies

First contact with top 5 companies


(Round 1)
> Companies to be contacted: Dreamworks,
Blizzard, Disney, Electronic Arts, Studio
Ghibli
> To align with MDeC, MIDA if there are
ongoing discussions with target companies

Trigger discussions & align


with relevant agencies
> Initiate talks with MIDA,
InvestKL
> Meet with MOSTI, KKMM,
MDeC to discuss possibility of
coming up with customized
fiscal incentives

Talk to MDeC

Seek Cabinet approval for


proposed plans
> Sector-specific incentives may
require approval from Cabinet
> Approval process expected to
take ~9-12 months

Define strategic R&D plan

> Set quantitative long-term program of


> Understand current
public investment for R&D required
development
program
Develop talent development
> Determine if new
agencies need to be programs
> Discuss with Education Ministry & relevant
created (following
universities to develop suitable programs
the model of FINAS1))

Follow-up with
Round 1 co's

Approach 2nd
priority companies
(Round 2)

> 2nd round of


> (If required)
meetings where
> To be "activated" if
incentive packages
negative replies
will be presented
received from 1st
and discussed
tier companies

Reassess & update shortlist of target


technology areas & companies
> To factor in new emerging areas and
companies
> Roland Berger can assist in steering this
process

Assemble and present incentive package to attract target companies


> E.g. tax benefits, research grants, discount on office rentals / land sales, training grants

Execute R&D and talent development plans


> MDeC to serve as lead agency
> Establish collaboration with MAGIC and relevant agencies like MIMOS or industry players to
make technology platforms available, for entrepreneurs to easily develop and market their
ideas

1) National Film Development Corporation Malaysia, agency and authority entrusted with the responsibility of developing film industry in Malaysia

Positioning strategy: ICT Mobile internet

Cyberjaya can be positioned as a hub for the development of


mobile software and applications, leveraging on the talent pool
Mobile Internet: Positioning strategy for Cyberjaya
SWOT analysis for Cyberjaya
Strengths

Cyberview's role

> In line with the National ICT


Roadmap focus area of
"ubiquitous connectivity"
> Supported under the Digital
Malaysia initiative
> Complements the active
promotion by MIMOS of the
"Internet of Things" concept
> Existing courses on software
engineering offered in
several universities (e.g.
UTM, UM)

> Hardware aspect, i.e.


development of mobile
devices is not within
Cyberjaya's strengths (e.g.
high cost of investment,
need for manufacturing
facilities and skill sets in
hardware development)

> Relatively low capital


requirement for
development of mobile
software and applications
creates opportunities for
start-ups
> Increasing use of mobile
internet leads to continued
demand for new
applications and software

> Existing regional


competition in mobile
hardware development
from South Korea and
China
> IDA1) in S'pore is driving
cross-sectoral application
of innovative mobile
services (e.g. mGov
initiative drives the
delivery of m-govt services)

Opportunities
1) Infocomm Development Authority

> Specific agencies are already in place (e.g. MDeC,


MIMOS) Cyberview to engage agencies on CJ's focus
areas & jointly develop plans
> Cyberview to serve as intermediary to facilitate
discussion among stakeholders, incl. companies
looking to set up, investors & property owners

Weaknesses
Driver
Champion
Facilitator

Positioning strategies
CJ as hub for development of mobile software and applications,
A. Market
leveraging existing technology platforms by MIMOS

Threats

with universities, e.g. MMU & Limkokwing to highlight talent


B. Collaborate
pool in software engineering in approaching mobile software companies
financial incentives from govt agencies for mobile internet companies
C. Stress
located in CJ (to be worked out with MDeC, MOSTI, MIDA etc)

Target companies
1 Google

4 Apple

2 Facebook

5 Samsung

3 Twitter

(Backup) King Digital


Entertainm't

10

Action plan: ICT Mobile internet

Strong collaboration with relevant agencies required to produce


compelling positioning to attract target mobile internet companies
Mobile Internet: Action plan (High-level)
2014
Strategic
Thrust

A
Initiating
contact with
companies

B
Establishing
regulatory
framework

C
Fostering
technology
platforms

Q3

2015
Q4

Q1

Q2

2016
Q3

Q4

Q1

Q2

2017
Q3

Q4

Q1

Q2

Q3

Q4

Initiatives
Relevant
agencies to be
consulted
before
approaching
companies

First contact with top 5 companies


(Round 1)
> Companies to be contacted: Google,
Facebook, Twitter, Apple and Samsung
> To align with MDeC, MIDA if there are
ongoing discussions with target companies

Trigger discussions & align


with relevant agencies
> Initiate talks with MIDA,
InvestKL
> Meet with MOSTI, KKMM,
MDeC to discuss possibility of
coming up with customized
fiscal incentives

Talk to MIMOS

Seek Cabinet approval for


proposed plans
> Sector-specific incentives may
require approval from Cabinet
> Approval process expected to
take ~9-12 months

Define strategic R&D plan

> Understand MIMOS' > Set quantitative long-term program of


existing platforms
public investment for R&D required

Talk to
universities

> Identify platforms


within unis e.g.
MMU

Develop talent development


programs

> Discuss with Education Ministry & relevant


universities to develop suitable programs

Follow-up with
Round 1 co's

Approach 2nd
priority companies
(Round 2)

> 2nd round of


> (If required)
meetings where
> To be "activated" if
incentive packages
negative replies
will be presented
received from 1st
and discussed
tier companies

Reassess & update shortlist of target


technology areas & companies
> To factor in new emerging areas and
companies
> Roland Berger can assist in steering this
process

Assemble and present incentive package to attract target companies


> E.g. tax benefits, research grants, discount on office rentals / land sales, training grants

Execute R&D and talent development plans


> MOSTI & MIDA to serve as lead agencies
> Establish collaboration with MIMOS and other relevant agencies or industry players to make
available existing technology platforms in Cyberjaya

Positioning strategy: ICT Cloud computing

Cyberjaya has a strong value proposition to attract companies in


cloud computing given its position as a data center hub in Malaysia
Cloud Computing: Positioning strategy for Cyberjaya
SWOT analysis for Cyberjaya
Strengths

Cyberview's role

> One of the focus areas of


the National ICT Roadmap
> In line with Digital
Malaysia's Shared Cloud
Enterprise Services project
> Ability to leverage on the
MSC Cloud Computing
Initiative
> Numerous data centers
already located in Cyberjaya
demonstrates availability of
experienced talent

> No weaknesses identified at


present

> Increasing adoption of cloud


computing solutions by
enterprises due to the
benefits of reduced capital
outlay required

> High degree of regional


competition including
Singapore (IDA offers
financial incentives for
companies adopting cloud
solutions), India (Bangalore
Is hub for innovative cloud
solutions) and China
(government provides
support for cloud via
collaborations)

Opportunities
1) Infocomm Development Authority

> Specific agencies are already in place (e.g. MDeC, MIMOS)


Cyberview to engage agencies on CJ's focus areas &
jointly develop plans
> Cyberview to serve as intermediary to facilitate discussion
among stakeholders, incl. companies looking to set up,
investors & property owners

Weaknesses
Driver
Champion
Facilitator

Positioning strategies
CJ as cloud computing hub, given numerous data centers located in CJ
A. Market
and lower-cost base compared to Singapore

Threats

talent pool in cloud computing stemming from universities e.g. MMU


B. Highlight
and UTM, as well as experienced talent working in CJ
incentives & programmes for co's involved in cloud located in CJ,
C. Emphasise
building on the MSC M'sia Cloud Computing Initiative

Target companies
1 Amazon

Google

2 Microsoft

RackSpace

3 Salesforce

10

Action plan: ICT Cloud computing

Cyberjaya should capitalize on cloud computing programs by other


agencies e.g. MDeC & MIMOS and collaborate to attract companies
Cloud Computing: Action plan (High-level)
2014
Strategic
Thrust

A
Initiating
contact with
companies

B
Establishing
regulatory
framework

C
Fostering
technology
platforms

Q3

2015
Q4

Q1

Q2

2016
Q3

Q4

Q1

Q2

2017
Q3

Q4

Q1

Q2

Q3

Q4

Initiatives
Relevant
agencies to be
consulted
before
approaching
companies

First contact with top 5 companies


(Round 1)

> Initiate talks with MIDA,


InvestKL
> Meet with MOSTI, KKMM,
MDeC to discuss possibility of
coming up with customized
fiscal incentives

> Understand existing


cloud platforms

Approach 2nd
priority companies
(Round 2)

> Companies to be contacted: Amazon,


> 2nd round of
> (If required)
Microsoft, Salesforce, Google & Rackspace
meetings where
> To be "activated" if
> Identify needs of companies wishing to set
incentive packages
negative replies
up cloud computing centres in CJ and offer
will be presented
received from 1st
tailored solutions (e.g. customized buildings) and discussed
tier companies

Trigger discussions & align


with relevant agencies

Talk to MIMOS

Follow-up with
Round 1 co's

Seek Cabinet approval for


proposed plans
> Sector-specific incentives may
require approval from Cabinet
> Approval process expected to
take ~9-12 months

Engage with MDeC

Reassess & update shortlist of target


technology areas & companies
> To factor in new emerging areas and
companies
> Roland Berger can assist in steering this
process

Assemble and present incentive package to attract target companies


> E.g. tax benefits, research grants, discount on office rentals / land sales, training grants

Execute cloud technology development programmes and talent development


plans

> Build on the current MSC Cloud Technology


Initiative to develop Cyberjaya-specific
> MDeC to serve as lead agency
progs2)
> Establish collaboration with MIMOS and other relevant agencies or industry players (e..g.
1)
Engage MSC Cloud Tech Partners
Develop talent progs
the MSC M'sia Cloud Technology Partners) to make available existing technology platforms
in Cyberjaya
> Identify cloud platforms available
> Engage MoE & unis to
develop suitable progs

1) 6 partners identified by MDeC: Microsoft, Maxis, Exabytes, Skali, TM and Emerge; 2) E.g. Incubation and training programmes to encourage cloud software
development by independent software vendors located in Cyberjaya

Positioning strategy: ICT Big data analytics

Cyberview has a clear value proposition to attract BDA players - it


should work on incentives to accelerate big data adoption in M'sia
Big data analytics: Positioning strategy for Cyberjaya
SWOT analysis for Cyberjaya
Strengths
> Can build on the established
data centre activity in CJ (data
access, industry players)
> Pool of home-grown innovative
companies in Cyberjaya (e.g.
Pulse Group, Predictry)
> Strong support from national
agencies (e.g. MDeC, Ministry
of Communication and
Multimedia, Mampu1))

> Strong demand growth due to


increasing amount of data
generated and new applications
(e.g. marketing, branding)
> Programs being developed to
tackle the workforce shortage
issue (e.g. Pulsate plans to set
up a data academy in Cyberjaya
to train 3,000 specialists by
2020)

Opportunities

Cyberview's role
> Specific agencies set up (e.g. MDeC, MIMOS) Cyberview
to engage these agencies & see how they can help to
increase CJ's attractiveness
> Cyberview should work on plans with relevant agencies to
encourage the widespread adoption of BDA, first for co's
in CJ and then on a national scale

Weaknesses
Driver

> Under-supply of big data


scientists currently in M'sia

Champion
Facilitator

Positioning strategies

> Strong competition in Asia,


both from India and China due
to huge amount of data
generated by their markets,
and from S'pore which is
heavily investing in staff
training and appointed a chief
data scientist

Threats

A.

Market Cyberjaya as the most suitable hub for BDA in Malaysia given the
prevalence of data centres

B.

Leverage on the existing network of SMEs and innovative start-ups to position


CJ as a national hub for BDA innovation and development

C.

Stress financial incentives from govt agencies towards BDA research activities &
technology adoption (to be worked out with MDeC, MOSTI, etc.)

Target companies
1 Oracle

4 EMC

2 Hortonworks

5 Teradata

3 Cloudera

6 -

10

1) Malaysian Administrative Modernization and Management Planning Unit, which announced the creation of a product development and commercialization fund in 2015 to support
innovative and market-driven BDA products and services

Action plan: ICT Big data analytics

Developing BDA in Malaysia requires structural changes in the


education system output, this can be driven by Cyberview & MDeC
Big data analytics (BDA): Action plan (High-level)
2014
Strategic
Thrust

A
Initiating
contact with
companies

B
Establishing
regulatory
framework

C
Creating the
technology
ecosystem

Q3

2015
Q4

Q1

Q2

2016
Q3

Q4

Q1

Q2

2017
Q3

Q4

Q1

Q2

Q3

Q4

Initiatives
Relevant
agencies to be
consulted
before
approaching
companies

First contact with top 5 companies


(Round 1)
> Companies to be contacted: Oracle,
Hortonworks, Cloudera, EMC, Teradata
> To align with MDeC, MIDA if there are
ongoing discussions with target companies

Talk to relevant agencies


> Discuss with MDeC, MCMC about
possible customized incentives

Seek Cabinet approval for


proposed plans

> Sector-specific incentives may


require approval from Cabinet
> Approval process expected to
> Understand & review BDA adop- take ~9-12 months
tion program under "354
Roadmap"

Talk to MDeC & industry

Talk to MIMOS, MDeC &


industry

Follow-up with
Round 1 co's
Contact other
BDA co's in CJ1)

Approach 2nd
priority
companies
(Round 2)

> (If required)


> To be "activated" if
negative replies
> Present & discuss received from 1st
incentives packages tier companies

Reassess & update shortlist of target


technology areas & companies
> To factor in new emerging areas and
companies
> Roland Berger can assist in steering this
process

Assemble and present incentive package to attract target companies


> E.g. tax benefits for companies developing BDA solutions, training grants, rebates for
companies adopting BDA tools

Define strategic R&D plan


> Set quantitative long-term program of
public investment for R&D required

> Evaluate industry needs for


workforce & technology
Define skills training requirements
programs
> Assess MIMOS existing platforms > Engage education and industry training
> Assess MDeC's talent devlpt plans players to develop relevant programs

Execute R&D and talent development plans


> Set up big data academies (e.g. Pulsate's training centre) and
university programs
> MDeC to serve as lead agencies
> Establish collaboration with MIMOS and/or other relevant
agencies/ industry players to make available existing
technology platforms in Cyberjaya

1) This applies to companies present in Cyberjaya, involved in BDA R&D activities but elsewhere, and not part of the 1st or 2nd priority companies (e.g. IBM)

Positioning strategy: Green technology

Cyberjaya can position itself as a test-bed for new green technology


projects; also stands to benefit from government support
Green technology: Positioning strategy for Cyberjaya
SWOT analysis for Cyberjaya
Strengths

Cyberview's role
Weaknesses

> CJ accorded pioneer green


city status in 2010 in sync
with MGTP1) (sets
environmental targets, such
as reducing the peak
temperature)
> Strong national support
(e.g. MGTC2), tax incentives
for co's in green areas such
as waste recycling, creation
of the GTFS3)
> Skilled workforce available

> Some sub-segments of


green technology do not
directly fit with CJ (e.g.
green manufacturing)
> Limited industry base
currently in CJ

> Low competition in SEA


opportunity to become the
regional leader in this area
> Growing demand due to
global awareness may
increase further with the UN
Climate Change Conf. in
Paris in 2015
> Fast-growing areas of
development, such as
energy efficiency

> Domestic competition


exists from other parks in
Malaysia, such as
Technology Park Malaysia
or Kulim Hi-Tech Park
> Established competition in
Asia in specific subsegments (e.g. wind
turbine & solar panels in
China, bio-gas in India)

Opportunities

Driver
Champion
Facilitator

> Cyberview needs to engage specific agencies (e.g.


KeTTHA4)) and relevant industry associations (e.g.
MPIA5)) to foster collaboration and develop its own
competitive edge
> Cyberview should focus on offering testing facilities for
green tech companies (e.g. renewable energies)

Positioning strategies
CJ as a leading hub in SEA in different green niche areas (e.g. waste
A. Market
recycling, energy efficient buildings, and electric transportation)

Threats

the talents and the land availability in CJ, as well as the possibility
B. Highlight
of using the town as a test-bed for new green technologies
financial incentives from govt agencies towards green technology
C. Stress
companies and their adoption (to be worked out with KeTTHA )

Target companies
1 Veolia

4 Siemens

7 Solazyme

2 Honeywell

5 Yingli

8 LanzaTech

3 General Electric

6 ABB

9 KiOR

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

10 First Solar

Action plan: Green technology

To do so, the first step should be to understand industry


needs, both in terms of policy incentives and infrastructure
Green technology: Action plan (High-level)
2014
Strategic
Thrust

A
Initiating
contact with
companies

B
Establishing
regulatory
framework

C
Fostering
technology
platforms

Q3

2015
Q4

Q1

Q2

2016
Q3

Q4

Q1

Q2

2017
Q3

Q4

Q1

Q2

Q3

Q4

Initiatives
Relevant
agencies to be
consulted
before
approaching
companies

Contact top 10 companies & follow-up discussions

Reassess & update shortlist of


target technology areas &
companies

Companies to be contacted: Veolia, Honeywell, GE,


Yingli Siemens, ABB, Solazyme, LanzaTech, KiOR, First
Solar

Contact other relevant co's


or public services1)

Talk to relevant development agencies

To align with KeTTHA & MIDA if there are ongoing


discussions with target companies

Talk to relevant agencies


Discuss with MOSTI & KeTTHA
about customized incentives

Talk to KeTTHA & industry


Understand MGTP2) programs &
industry players needs to increase
adoption of green technology

Talk to MGTC3) & industry

Seek Cabinet approval for


proposed plans
Sector-specific incentives may
require approval from Cabinet
Approval process expected to
take ~9-12 months

Discuss possiblity of using CJ as


a test-bed or national showcase

To factor in new emerging areas and


companies
Roland Berger can assist in steering this
process

Assemble and present incentive package to attract target companies


E.g. tax benefits for companies involved in green technology & for companies developing
environment-friendly processes

Define public development plan

Evaluate industry needs for


Set quantitative long-term program of public
public R&D programs, workforce R&D investment and talent development

and testing facilities in Cyberjaya

Define infrastructure investment plan


Assess KeTTHA's existing
technology development plans
Engage with relevant partners to set up

infrastructure and test-bed facilities in CJ

Execute infrastructure & public development plans


KeTTHA to serve as lead agency
Set up test-bed facilities in Cyberjaya, follow-up with university
talent programs
Establish collaboration with relevant agencies/ industry players to
make available their current development projects in Cyberjaya

1) This applies to government services agencies, that may be interested in testing green technologies or in collaborating with companies in Cyberjaya, such as the Land
Transport Authority or Tenega Nasional; 2) Malaysian Green Technology Policy; 3) Malaysian Green Technology Corporation

Positioning strategy: Biotechnology

Cyberjaya must carefully carve out a competitive niche and


position itself as a development hub for bioinformatics
Biotechnology: Positioning strategy for Cyberjaya
SWOT analysis for Cyberjaya
Strengths

Cyberview's role
Weaknesses

> Strong national support


with the National
Biotechnology Policy (NBP)
and Bioeconomy
Transformation Prog. (BTP)
> Ability to leverage and work
with BiotechCorp, the
national biotech agency to
drive forward the
development plans
> Bioinformatics development
is synergistic with the plans
to develop big data in CJ

> No previous experience in


biotech and would need to
establish its niche in the
industry

> Potential to capitalize on ICT


expertise in Cyberjaya to
develop the bioinformatics
market, and to position
Cyberjaya as a
bioinformatics hub

> Domestic competition


from other parks e.g.
Technology Park Malaysia
> Strong regional
competition from countries
such as Japan, China and
Singapore

Opportunities

Driver
Champion
Facilitator

> BiotechCorp is the dedicated biotechnology agency


Cyberview to engage BiotechCorp on CJ's focus areas &
jointly develop plans
> Cyberview to serve as intermediary to facilitate
discussion among stakeholders, incl. companies looking
to set up, investors & property owners

Positioning strategies
CJ as a biotech hub, with focus on bioinformatics to leverage on the
A. Market
ICT capabilities of Cyberjaya

Threats

potential to merge talents in biotech and growing expertise in data


B. Highlight
analytics, which can pave the way for a bioinformatics hub
incentives for BioNexus co's and financial incentives for biotech
C. Emphasise
co's specialising in bioinformatics and located in CJ (to be worked out with
BiotechCorp etc)

Target companies
1 Celgene

4 United Thera.

7 Regeneron

2 Biogen

5 Life Tech.

8 Alexion

3 Amgen

6 Vertex Pharma.

9 Genzyme

10 Genentech

Action plan: Biotechnology

Efforts must be focused on the right framework and


collaborations to attract companies to develop bioinformatics
R&D in Cyberjaya
Biotechnology: Action plan (High-level)
2014
Strategic
Thrust

A
Initiating
contact with
companies

B
Establishing
regulatory
framework

C
Creating the
technology
ecosystem

Q3

2015
Q4

Q1

Q2

2016
Q3

Q4

Q1

Q2

2017
Q3

Q4

Q1

Q2

Q3

Q4

Initiatives
Relevant
agencies to be
consulted
before
approaching
companies

First contact with top 10 companies (Round 1)


> Companies to be contacted: Celgene,
BioGen, AmGen, United Therapeutics, Life
Technologies, Vertex Pharma, Regeneron,
Alexion, Genzyme and Genentech
> Align with ongoing efforts of BiotechCorp

Trigger discussions & align


with relevant agencies

Seek Cabinet approval for


proposed plans

> Initiate talks with MIDA, InvestKL > Sector-specific incentives may
> Meet with BiotechCorp on
require approval from Cabinet
existing BioNexus incentives and > Approval process expected to
potential new incentives to
take ~9-12 months
promote bioinformatics in CJ
Engage BiotechCorp
> Understand existing
biotech platforms

Define strategic R&D plan


> Set quantitative long-term program of
public investment for R&D in bioinformatics

Engage industry players

Develop talent programs

> Both biotech and data analytics > Engage relevant universities to
cos to identify cross-synergies
develop bioinformatics programs
potential
1) This applies to biotech companies located in other parts of Malaysia

Engage biotech
co's in M'sia1)
> Invite them to set
up bioinfo centers
in CJ

Approach 2nd
priority companies
(Round 2)

Reassess & update shortlist of target


technology areas & companies

> (If required)


> To be "activated" if
negative replies
received from 1st
tier companies

> To factor in new emerging areas and


companies
> Roland Berger can assist in steering this
process

Assemble and present incentive package to attract target companies


> E.g. tax benefits, training grants, rebates, assistance to fund R&D, etc

Execute R&D development programmes and talent development plans


> BiotechCorp to serve as lead agency
> Establish collaboration with BiotechCorp and industry players to make available existing
biotech platforms in Cyberjaya

Positioning strategy: Wearable technologies

Cyberjaya can position itself as a hub for wearable technology given


the synergies with its ICT capabilities; Cyberview to act as champion
Wearable Technology (WT): Positioning strategy for Cyberjaya
SWOT analysis for Cyberjaya
Strengths

Cyberview's role
Weaknesses

> Ability to leverage CJ's ICT


experience and expertise
> In line with Digital M'sia's
aim of developing a digital
economy
> Complementary with
MIMOS efforts in the
development of "Internet of
Things"
> Universities currently
provide talent supply, e.g.
USM, UM, UTM

> Hardware aspect is less


aligned with CJ's areas of
strength - i.e. highly
competitive with low-cost
producers from China and
Taiwan; requires higher
capital investment

> Potential to leverage


national advances in sensor
and wireless technologies to
develop technologies for
wearables
> Strong national capabilities
in semiconductor and
microelectronic
manufacturing in Penang
provide easy access to
components

> Regional competition from


more advanced countries
such as Japan, Taiwan and
South Korea who are at the
forefront of WT

Opportunities

Driver
Champion
Facilitator

> Relevant agencies exist, e.g. MDeC, MIMOS, but the


technology cuts across multiple disciplines, incl sensor
technology, wireless technology, software
development, microelectronics etc
> Cyberview to serve as active advocate to promote WT
among relevant agencies

Positioning strategies
CJ as a hub for development of WT, capitalizing on ICT expertise and
A. Market
software development know-how
availability of talent across disciplines of ICT, sensor and wireless
B. Highlight
tech, microelectronics and E&E from various local universities incl. USM,

C.

UTM and UM
Emphasise financial incentives for co's involved in wearable technology
located in CJ (to be worked out with MDeC, MOSTI, MIDA etc)

Target companies

Threats

1 Samsung Elec.

4 Google

7 Jawbone

2 Adidas

5 Nike

8 Sony

3 Garmin

6 Fitbit

9 Eurotech

10 Pebble Tech

Action plan: Wearable technologies

Cyberview should collaborate with other agencies to highlight


complementary technology strengths in attracting companies to CJ
Wearable Technology (WT): Action plan (High-level)
2014
Strategic
Thrust

A
Initiating
contact with
companies

B
Establishing
regulatory
framework

C
Creating the
technology
ecosystem

Q3

2015
Q4

Q1

Q2

2016
Q3

Q4

Q1

Q2

2017
Q3

Q4

Q1

Q2

Q3

Q4

Initiatives
Relevant
agencies to be
consulted
before
approaching
companies

First contact with top 10 companies (Round 1)


> Companies to be contacted: Samsung Electronics, Adidas, Garmin,
Google, Nike, Fitbit, Jawbone, Sony, Eurotech and Pebble
Technology
> Align with ongoing efforts of MIDA, InvestKL

Trigger discussions & align


with relevant agencies

Seek Cabinet approval for


proposed plans

> Initiate talks with MIDA, InvestKL > Sector-specific incentives may
> Meet with MDeC, MOSTI on
require approval from Cabinet
potential incentives to promote > Approval process expected to
WT in CJ
take ~9-12 months

Engage MIMOS
> Understand existing
platforms for WT1)

Define strategic R&D plan

> Identify players offering


complementary tech, e.g. sensor &
wireless tech

> 2nd round of


meetings where
incentive packages
will be presented
and discussed

Reassess & update shortlist of target


technology areas & companies
> To factor in new emerging areas and
companies
> Roland Berger can assist in steering this
process

Assemble and present incentive package to attract target companies


> E.g. tax benefits, training grants, rebates, assistance to fund R&D, etc

Execute R&D development programmes and talent development plans

> Set quantitative long-term program of


public investment for R&D required

Engage relevant industry players

Follow-up with
Round 1 co's

> Cyberview to serve as active advocate or champion for WT


> Establish collaboration with MIMOS and industry players to make available existing
platforms relating to WT, e.g. sensor & wireless technologies as well as microelectronics in
> Engage unis to develop WT Cyberjaya
programs and training

Develop talent progs

1) Including numerous sensor and wireless platforms already developed and owned by MIMOS

Positioning strategy: Smart grid technology

The interest for smart grids in Malaysia is fast-growing Cyberjaya


should position itself as the hub which fosters R&D collaboration
Smart grid technology: Positioning strategy for Cyberjaya
SWOT analysis for Cyberjaya
Strengths

Cyberview's role
Weaknesses

> Fit easily with CJ given the


use of ICT as a core
technology
> Consistent with
government's aim to reduce
energy consumption can
benefit from incentives
under MGTP1)
> Growing industry interest
(e.g. partnerships set up
between MGTC2), Tenaga &
co's like GE or Trilliant, or
Silver Springs)

> Currently no R&D activity


conducted on smart grids in
Cyberjaya

> Pool of companies in


Cyberjaya active in smart
grid activities elsewhere
(e.g. Fujitsu, Mahindra)
> Increasing number of realworld project in Malaysia
(e.g. Melaka, Mukah Smart
City)

> Possibility to see


competition emerging
from other Malaysian tech
parks focusing on ICT &
green technology, such as
Technology Park Malaysia

Opportunities

Driver
Champion
Facilitator

> Engage government agencies (e.g. SEDA3), KeTTHA4))


and relevant industry players (mainly Tenaga Nasional)
to develop more projects in M'sia
> Cyberview should offer testing grid facilities, and focus
on attracting global players to foster their
collaboration with the relevant M'sian companies a

Positioning strategies
Cyberjaya as the most appropriate hub for smart grids, given the
A. Market
prominent ICT aspect and the green city status of Cyberjaya

Threats

up testing facilities for smart grid technology, as well as the possibility


B. Offer
for foreign co's to collaborate with local players and government agencies

C.

for commercial roll-out


Stress financial incentives from govt agencies towards real-world smart
grids projects (to be worked out with SEDA3) , MOSTI or KeTTHA)

Target companies
1 Itron

4 IBM

7 ABB

2 Echelon

5 S&C

8 Siemens

3 Silver Springs

6 Schneider

9 General Electric

1) Malaysian Green Technology Policy 2) Malaysian Green Technology Corporation 3) Sustainable Energy Development Authority

10

Tendril
Networks

Action plan: Smart grid technology

Cyberjaya should make sure suitable incentives are in place, and


provide a conducive environment for target smart grid companies
Smart grid technology: Action plan (High-level)
2014
Strategic
Thrust

A
Initiating
contact with
companies

B
Establishing
regulatory
framework

C
Fostering
technology
platforms

Q3

2015
Q4

Q1

Q2

2016
Q3

Q4

Q1

Q2

2017
Q3

Q4

Q1

Q2

Q3

Q4

Initiatives
Contact top 10 companies & discussions follow-up

Relevant
agencies to be
consulted
before
approaching
companies

Reassess & update shortlist of target


technology areas & companies

Companies to be contacted: Itron, Echelon, Silver


Springs, IBM, S&C, Schneider, ABB, Siemens, GE, Tendril
Networks

Contact other relevant co's


in CJ1) & Tenaga N.

Talk to relevant development agencies


To align with KeTTHA, MIDA if there are ongoing
discussions with target companies

Talk to relevant agencies


Discuss with SEDA, KeTTHA
about possible customized
incentives 2)

Talk to MGTC & Tenaga N.

Understand MGTP3) programs


Engage Tenaga Nasional to
under-stand future development
plans

Talk to agencies & industry

Seek Cabinet approval for


proposed plans
Sector-specific incentives may
require approval from Cabinet
Approval process expected to
take ~9-12 months

Present & discuss incentive


packages

To factor in new emerging areas and


companies
Roland Berger can assist in steering this
process

Assemble and present incentive package to attract target companies


E.g. tax benefits for municipalities implementing smart grids projects

Define public development plan

Evaluate industry needs for


Set quantitative long-term program of public

public R&D programs, workforce R&D investment and talent development

and testing facilities in Cyberjaya


Define infrastructure investment plan
Assess SEDA/MDeC's existing

development plans and MIMOS


Engage with relevant partners to set up
technology platforms
infrastructure and test-bed facilities in CJ

Execute infrastructure & public development plans


SEDA, MDeC, KeTTHA to serve as lead agencies
Set up test-bed facilities in Cyberjaya, follow-up with university talent
programs
Establish collaboration with MIMOS and/or relevant agencies/ industry
players to make available their current development projects in Cyberjaya

1) This applies to companies present in Cyberjaya, involved in smart grid activities but elsewhere, and not part of the top 10 priority companies (e.g. Mahindra, Huawei)
2) Malaysian Green Technology Corporation 3) Malaysian Green Technology Policy 4) Sustainable Energy Development Authority

D. IMPACT

The Global Technology Hub implementation is expected to


deliver GNI impact of RM 2.4 bn and 6,600 new jobs between
2014-2020
Conclusions
5 focus technology areas
1

ICT technologies
1a

Information security

1b

Creative content tech

1c

Mobile internet

1d

Cloud computing

1e

Big data analytics

Green technology

Biotechnology

Wearable technologies

Smart grid technology

Defined action plan in place


1 Initiate contact with companies

GNI and jobs boost


Total GNI impact 1), 2014-2020

RM 2.4
billion
2 Establish regulatory framework
Total jobs created 1), 2014-2020

6,600
jobs

3 Foster technology platforms

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Related industry sectors will also be positively impacted


through this catalytic initiative
Impact of GTH to related industry sectors
Non-exhaustive
Manufacturing
Software
development

Engineering
services

ICT services

Logistics

Shared service
outsourcing
Information
security

Creative
content

Animation
production

Chemicals

Media and content


development

Mobile
internet

E-Commerce

Smart grid

Energy efficiency

Benefits to related industry


sectors

Wearables

Biotechnology

Business analytics

Cloud
computing

Global
Technology
Hub
Big data
analytics
Green
technology

Healthcare
Agriculture

Electrical and
electronics
Property
development

Data centers

Construction

Pharmaceuticals

Technology sectors under Global Technology Hub

Power

> Industry ecosystem:


Nurtures an ecosystem of
companies in related
business sectors across the
value chain, lowering the
overall cost of doing
business
> Catalytic investment:
Anchor investments in
core industry sectors will
serve as a catalyst to the
development of new
business opportunities and
industry areas
> Technology transfer:
Investments of foreign
investments will benefit
local workforce and
enterprises through direct
and indirect transfer of
knowledge and expertise

Related industry sectors

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

E. APPENDIX

E1.
Benchmarking: Technology parks

Benchmarking Technology parks: Research Triangle Park, US

The Research Triangle Park is the world's largest universityrelated park, mainly focusing on IT and Life Sciences
Overview of Research Triangle Park

Concept

Focus
areas

> Established in 1959


> World's largest university-related research park, situated
between UNC-Chapel Hill, Duke & N.C. State University
> Park size: Total of 7,000 acres
> Mixed dev't model Govt was key driver in initial stages
> Park management is now focusing on making park more
attractive to smaller entrepreneurial firms
> Biotech & Life Sciences> Nanotechnologies
> IT
> Wireless Telco
> Managed by The Research Triangle Foundation, a

private non-profit organization


Managem
> The B.O.D. includes both academia and industry
ent
professionals

Liveable
aspects

> Various recreation activities (e.g: sports leagues, bike


Examples of major tenants
paths in wildlife reserves) However, main challenge is to
attract youth
Biotech & Life Science
Information Technologies
> Management recently bought adjacent properties along I40 to be developed into the Park centre Signature
landmark ("Convergence Center") planned to improve
park's visibility
> Rail line planned to improve the park's connectivity
CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Source: RTP Concise Public Master Plan , Roland Berger analysis

Benchmarking Technology parks: Research Triangle Park, US

The park leverages a strong innovation tradition and collaboration


schemes to attract both start-ups companies and large R&D centers
Assessment of Research Triangle Park
Resources

Talent

> Steady flow of talented graduates from the 3 funding universities

Infrastructure (hard and


soft)

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

Funding
Network

Linkage between research


institutes and industry
Knowledge transfer
Support systems

Regulation & Clarity of roles &


objectives
Governance for STP management
Clear vision
Clear incentives

> Numerous venture capital firms implanted


> Presence of organization offering research financing support (e.g: Biotechnology Center)
> Numerous invention disclosures and licence agreements with university departments
> Public-private partnerships remain very common in the park's activities, especially with universities
> Efforts made to introduce multi-use, cooperative spaces and shared amenities designed to foster
collaboration and unity
> Networking events to foster open exchange of ideas (e.g: Get connected @ RTP, RTP 1800)
> Host several iconic organizations and networks (e,g: IUPAC, the Hamner, the William Burroughs
Welcome Fund, or Sigma Xi) to help recently created companies
> Stable management by The Research Triangle Foundation of North Carolina, a non-profit
organization
> Involvement of both industrial players and academia in the decision-making process
> Clear vision mapped out in the Master Plan 2011
> However, lack of measurable objectives in the Master plan
> No funding for potential tenants / specific grants for locating within the boundaries of RTP
> Incentives to be found through state and regional agencies, especially for specific industries,
such as digital media and biotechnology
CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Source: RTP Concise Public Master Plan , Roland Berger analysis

Benchmarking Technology parks: Sophia-Antipolis, France

Sophia-Antipolis represents France's main national competency


center for Bio-chemistry and Information Technologies
Overview of Sophia-Antipolis

Concept

> Established in 1969


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

> Biotech & Life Sciences> Multimedia


Focus areas > IT
> Energy, Environment
Managemen
t

> Publicly owned land, jointly managed by two associations:


- Foundation Sophia-Antipolis (operational development)
- Symisa (Syndicat mixte de Sophia Antipolis) Gov't reps

Liveable
aspects

Examples of major tenants


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

Source: Foundation Sophia-Antipolis, Roland Berger analysis

Benchmarking Technology parks: Sophia-Antipolis, France

The park's attractiveness is supported by an exceptional


environment, and its well-established networks and support services
Assessment of Sophia-Antipolis
Resources

Talent

> Many campuses of top universities and engineering/business schools on-site


> Ability to attract the students thanks to the quality of life and the environment

Infrastructure (hard and


soft)

Network

Regulation &
Governance

> Weak public transportation services (traffic jams, high-frequency bus systems only planned for 2017)
> Commercial areas, and several incubation facilities available(e.g: Sophia-Antipolis Business Hub)

Funding

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

Linkage between research


institutes and industry

> Existing programs linking academic research/industries and public institutes/start-ups


> SATT South-East organizes collaborative work projects, foster communication in the park, and bring
innovation from public research to industrial sector via commercial licensing for companies

Knowledge transfer

> S-A 'Business hub': Co-working spaces & shared innovation platforms (e.g: 'Comm4Innov')
> Campus@SophiaTech: Research and teaching center devoted to networks, bioinformatics
> Network and training sessions organized, especially for start-ups and SMEs

Support systems

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

Clarity of roles & objectives


for STP management

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

Clear vision
Clear incentives

Source: Foundation Sophia-Antipolis, Roland Berger analysis

> New vision for the park recently published (Sophia 2020)
> Clear vision for the infrastructure improvement, lack of measurable development KPIs
> No policies specific to the park
> New policies fostering research and job creation, through tax deduction
> Park still suffers from lack of investor confidence due to frequent regulatory changes in France
CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Benchmarking Technology parks: Cambridge Science Park, UK

The Cambridge Science Park focuses on cutting-edge research,


leveraging heavily on the University of Cambridge
Overview of Cambridge Science Park

Concept

> Established in 1970


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

> Bio-medical

Focus areas > Computer / Telco

> Materials
> Energy, Environment

> Trinity is the landowner, developer and promoter of the park

Managemen > Park management services are carried out by Bidwells, a


t
property specialist

Liveable
aspects

> Various amenities to improve quality of life (e.g: Childcare


facilities, health and fitness club)
> Railway and bus tunnel projects are still under discussion
> To address rising property prices, Cambridge University is
working on "North West Development" ,a 1bn development
to build new houses, a nursery, retail areas and medical
centres

Examples of major tenants


Biomedical/Pharmaceuticals

Computer/Telecoms

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Source: Cambride Science Park Newsletter, Trinity college, Roland Berger analysis

Benchmarking Technology parks: Cambridge Science Park, UK

The park created one of the most comprehensive innovation


ecosystems in Europe
Assessment of Cambridge Science Park
Resources

Talent

> Strongly benefits from its proximity to Cambridge University

Infrastructure (hard and


soft)

> Specific services for start-ups, such as incubation facilities


> Several facilities available (e.g: gym, nursery, pubs), investments for building more housing options
> Transportation infrastructure needs to be improved (fast train project, new roads being studied)

Funding

Network

Regulation &
Governance

Linkage between research


institutes and industry

> Large number of angels funds and venture funds, very active in the area
> Includes the regional office of 3i, the UKs leading venture capital company
> Large number of spin-off companies from the university's research department
> Management priority remains ensuring that academic research is close to industry applications

Knowledge transfer

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

Support systems

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

Clarity of roles & objectives


for STP management
Clear vision
Clear incentives

> Promotion by the University's college, and minimal bureaucracy present


> No central management body Land management carried out by a local property specialist
> No holistic vision Only the objective to bring together academia and industry for innovation
> No qualitative or quantitative KPIs
> New tax incentives for qualifying patents, though not park-specific
> Still room for improvement in terms of measures encouraging research funding and innovation
CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Source: Cambride Science Park Newsletter, Trinity college, Roland Berger analysis

Benchmarking Technology parks: Daedok Innopolis, South Korea

Daedeok Innopolis focuses on promoting innovation in emerging


technologies within IT, biotechnology and nanotechnology
Overview of Daedeok Innopolis

Concept

Focus areas

> Established in 1973 as Daedeok Science town


> Started with government sponsorship as a pure research
center Evolved into a complete R&D innovation cluster
> Park size: Total of 16,750 acres
> Government-led initiative
> Daedeok is part of the Innopolis network since 2005, which
gathers 4 parks under one name

Zone III

Zone I

Zone II

Zone V

> Biotech & Life Sciences > Nanotechnologies


> IT
> Space technologies

> The park is located on Daejeon City-owned lands and managed


Managemen by the Innopolis Foundation
t
> Innopolis is a non-profit organization under the Ministry of
Science

Liveable
aspects

Zone IV

Zone I

Zone I (27 km2) Daedeok Science Town


Zone II (4.3 km2) Daedeok Tchno Valley

Zone II (3.2 km2) Daedeok Industrial Complex


Zone IV (31.2 km2) Northern Green Bok
Zone V (3.9 km2) Agency for Defense

> International school and several museums (e.g : Buyeo National Examples of major tenants
museum) with regular festivals organized
> More affordable housing, a buzzing city center and
Technology companies
Public research institutes
entertainment areas will be built to improve attractiveness to
younger population
> New roads are also planned, as well as a bridge between the
park and Daejon City to increase its integration and
connectivity
CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Source: World Technopolis Association, Roland Berger analysis

Benchmarking Technology parks: Daedok Innopolis, South Korea

The park leverages park-specific incentives and proximity to


public research centers to attract key national industry players
Assessment of Daedeok Innopolis
Resources

Talent
Infrastructure (hard and
soft)

Funding
Network

Linkage between research


institutes and industry
Knowledge transfer
Support systems

Regulation &
Governance

> Leading university campuses on the Science Park (including KAIST 1))
> 11% of Korean PhD-level researchers specialized in Engineering and Biology located on-site
> Focus on quality of life offered, including recreational activities, and transportation infrastructure
> Incubation facilities and support services offered, but can be improved
> Innopolis Foundation funds available to foster the development and growth of local companies
> Small presence of VC funds or business angels compared to other parks
> Hub-and-spoke system linking research capacity with advanced industries
> Numerous shared research centers created (e.g: KAIST/Hyundai Heavy Industries)
> Strong tradition of transfer knowledge from research institutes to surrounding companies
> Weak technology transfer during the collaboration between MNCs and SMEs
> Cooperation agreements with other tech parks, to foster know-how that benefits park tenants
> Support available from Innopolis Foundation for technology at the commercialization stage
> No clear mentorship program to help SMEs and start-ups

Clarity of roles & objectives


for STP management

> Developed and managed by Daedeok Innopolis Foundation, under jurisdictional control of Ministry of
Science, ICT and Future Planning
> Highest-level management common between the three other Innpopolis parks

Clear vision

> Strong vision of the center's role (from a research institute park to a global innovation cluster)

Clear incentives

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

1) Korean Advanced Institute of Science & Technology


Source: World Technopolis Association, Roland Berger analysis

> Quantitative and qualitative objectives clearly set out

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Benchmarking Technology parks: One-North, Singapore

Singapore's One-North attracts and clusters major IT and Life


Sciences international players and research institutes
Overview of One-North

Concept

> Established in 2001


> Developed as a model of integrated platforms with areas
dedicated to specific research fields, such as Biopolis
> Park size: Total of 490 acres
> The park's development relies on strong Govt leadership
> P&G invested SGD 250m in 2014 to build a innovation centre,
collaborating with A*STAR1) on new innovations for consumers

Vista Xchange
(Business & Lifestyle)

Biopolis
(Biomedical & Life Sciences)

Fusionopolis
(ICT, Science,
Engineering & Media)

Wessex Estate
(Arts & Creative)

> Biotech & Life Sciences > Media


> Physical Sciences

Focus areas > IT

> Managed by JTC, Singapore's lead agency to spearhead the

Managemen planning, promotion & development of the industrial landscape


t
> Overall development under the Ministry of Trade & Industry

Liveable
aspects

> Close proximity to MRT station & connected by major roads


> Designated green spaces within the park (Rochester Park)
> Cultural & recreational activities (e.g: SPAC2)), and facilities
designed for workers (e.g: Learning Vision for childcare)
> High price of existing housing supply (e.g: One-North
Residence)

1) Agency for Science, Technology and Research 2) Star Performing Arts Centre
Source: EDB Singapore, Ministry of Trade and Industry, Roland Berger analysis

Mediapolis

Examples of major tenants


Information Technologies

Biomedical/Pharmaceuticals

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Benchmarking Technology parks: One-North, Singapore

The park capitalized on talent and regulations to become a key


gateway for companies looking to establish R&D centers in Asia
Assessment of One-North
Resources

Talent
Infrastructure (hard and
soft)

Funding
Network

Linkage between research


institutes and industry
Knowledge transfer
Support systems

Regulation &
Governance

Clarity of roles & objectives


for STP management

Clear vision
Clear incentives

> Proximity to world-class business schools (e.g: INSEAD) and educational institutes (e.g: NUS)
> Full scholarship provided to 1,000 PhD candidates to study overseas and come back to Singapore
> Efforts to create a liveable city: housing options (Wessex Estate), recreational activities (Star
Performing Arts Centre) and numerous facilities (chilcare centers, retail areas), green parks, etc.
> JTC Launchpad : Cutting-edge facilities and incubators to create vibrant start-up communities
> Global VC players (e.g : CVC) and Government research funds on-site, especially in Block 71
> The VC scene is not very active due to low level of tech entrepreneurial activity
> Partnerships and co-development facilitated between universities and private companies (e.g:
AstraZeneca with NUS Medical School on cancer research)
> Shared amenities to promote collaboration between researchers in both private and public sectors
> Public labs work alongside corporate labs to transfer and accelerate the development of technologies
> No support programs for start-ups and SMEs except for access to incubation facilities
> Agreement to make innovation testing possible (e.g: in the Kent Ridge public hospital for Biopolis)
> Developed and managed by JTC, an industrial estate management company under the Ministry of
Trade and Industry
> Make the hub as big as ones in the US by lowering entry barriers for new companies in Asia
> Clearly laid out action plans to achieve this vision
> Considerable tax incentives offered for R&D expenses
> No park-specific tax incentives offered beyond its attractiveness (talent, cutting-edge
infrastructure)
CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Source: EDB Singapore, Ministry of Trade and Industry, Roland Berger analysis

Benchmarking Technology parks: Zhangjiang Park, China

Zhangjiang Park gathers numerous foreign-based companies


in the field of Life Sciences and Information Technologies
Overview of Zhangjiang Park

Concept

> Established in 1992


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

> Biotech & Life Sciences > Semiconductors


> Multimedia gaming

Focus areas > IT

> Managed by Zhangjiang Hi-Tech Park Development


Management > Falls under the Municipality authorities, but the park is used
as a testbed for policy deregulation and has administrative
powers

Liveable
aspects

> Close to the city center and to Pudong International airport


> Cosmopolitan life in Shanghai attracts many foreign executives
> Tram service connects park to the Shanghai Railway 10 min
away from the Lujiazui area, known to be one of the most
happening places in town (e.g: recreation, retail, housing)
> Growing supply of affordable housing for younger crowd

Examples of major tenants


IT companies

Pharmaceuticals

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT


Source: Shanghai Pudong Town Hall, Roland Berger analysis

Chemistry

Benchmarking Technology parks: Zhangjiang Park, China

The park successfully attracted R&D operations thanks to


incentives used and availability of talent and funding
Assessment of Zhangjiang Park
Resources

Talent
Infrastructure (hard and
soft)

Network

> Policies to recruit overseas Chinese students, who largely prefer to live in Shanghai
> Govt and high-tech companies provide strong support to main Zhangjiang incubator
> Facilities, housing and tramways Convenient transportation to the international airport

Funding

> Grants from National Technology Innovation Fund


> Creation of Pudong New Area Venture funds, that led to numerous PE funds gathering and
clustering in the park

Linkage between research


institutes and industry

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

Knowledge transfer
Support systems

Regulation &
Governance

> Benefits from the city's top university networks

Clarity of roles & objectives


for STP management

Clear vision
Clear incentives

> Some SMEs can benefit from programs that outsource research to large MNCs (e.g. AstraZeneca)
> Due to Intellectual Property issue, knowledge transfer remains underdeveloped
> No mentorship program available for smaller companies
> Advisory programs can be provided by Zhangjiang Hi-Tech Park Development special department
> Managed by Zhangjiang Hi-Tech Park Development, under the Municipality's authorities
Responsible for both real estate services and park development decisions
> Be a national model for innovation and a laboratory for new administration schemes
> No clear KPIs set up by the Municipality

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

Source: Shanghai Pudong Town Hall, Roland Berger analysis

E2.
Benchmarking: Start-up hubs

Benchmarking Start-up hubs: Tel Aviv

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

Trendsetter
Index

Index scoring
Funding
Index
20
15
10
5
0

Funding

20
Talent index

Talent

16
Support
index

Description

Notable
start-ups

> Globally ranked number 2


> Highest density of startups in the world
> Highest output of startups and a healthy mix
of startups in all stages

Support

> Mobile/online
apps
> Consumer
electronics

Trendsetting
MIRABILIS

16

> Healthy funding ecosystem throughout start-up


lifecycle
> Funding sources slightly more focused on angels,
less on family/friends

> Plentiful supply of talent; strong enterpreneurial


culture; 40% Masters/ PhD students
> 39% of hi-tech employees work in R&D
departments of MNCs Significant knowledge
transfer
> Vibrant support ecosystem (e.g. platforms for
discussion between start-up founders and
investors)

> Tel Aviv entrepreneurs concentrate four times


more on new markets than on niche markets
> However, speed of adoption of new technologies,
business models and management processes is
relatively low
CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Source: Startup Ecosystem Report 2012 (Startup Genome); Roland Berger analysis

Benchmarking Start-up hubs: Los Angeles

Los Angeles is ranked 3rd in the global start-up ranking,


mainly due to strong talent pool, support system and diverse
funding sources
Los Angeles Start-up Ecosystem
Overview

Index scoring
Funding
Index
20
15
10
5
0

Trendsetter
Index

Funding

14
Talent index

Talent

19
Support
index

Description

Notable
start-ups

> Ranked 3rd in global start-ups ranking, with


approximately 800 start-ups
> USD500 million raised in funding in H1 2013
>
>
>
>

e-Commerce
Digital media
Crowdsourcing
Online apps

Support

17
Trendsetting

10

> No funding gap Healthy mix of capital sources


> Prevalence of early-stage funds (Lowercase Capital,
Karlin Ventures, SV Angel, Plus Capital, and Double
M Capital)
> Large supply of technology-qualified talent from
L.A.'s local universities
> Talent is honed via entrepreneurship programs in
universities in partnership with local accelerators
> Exemplary accelerator and incubator infrastructure
Influx since 2011 has provided educational,
collaborative and supportive environments for
entrepreneurs and start-ups

> Strong in creative content creation, particularly in


entertainment, aerospace, fashion, and advertising
> Quick to adopt new technology (e.g. programming
languages like Python and Ruby)
CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

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

Benchmarking Start-up hubs: London

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

Index scoring
Funding
Index
20
15
10
5
0

Trendsetter
Index

Funding

17
Talent index

Talent

12
Support
index

Description

Notable
start-ups

> Most successful start-up ecosystem in Europe,


with the largest output of start-ups
> Investors closed 135 deals with start-ups in
2013
>
>
>
>

Online games/apps
Online lender
Home swap club
e-Commerce

Support

20
Trendsetting

> Strong government support and equity


crowdfunding
> However, funding gap still exists due to lack of
super angels and micro VCs which target deal sizes
of USD500k to USD2.5 mil
> Easy access to talent with some of the top
universities in the world and diverse talent
> However, London entrepreneurs are less ambitious
and more risk averse than those in Silicon Valley
> Prevalence of support networks, shared
workspaces, mentorship, tech incubators & capital
infrastructure helps promote strong start-up
ecosystem
> Tax incentives offered to stimulate startup
investment
> Slower technology adoption than in Silicon Valley
(e.g. London startups relying more heavily on PHP,
and less on Java, Ruby, and Python)

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Source: Startup Ecosystem Report 2012 (Startup Genome); Roland Berger analysis

Benchmarking Start-up hubs: Sydney

Sydney's start-up scene is highly innovative and talented


However, funding for start-ups still remains scarce
Sydney Start-up Ecosystem
Overview

Trendsetter
Index

Index scoring
Funding
Index
20
15
10
5
0

Funding

7
Talent index

Talent

15
Support
index

Description

Notable
start-ups

> Houses 950 tech start-ups, or 63% of total


tech start-ups in Australia

> e-Commerce
> Software
company
> Online apps

Support

9
Trendsetting

20

> Limited funding from angels and venture capital


firms
> Majority of start-ups are self-funded Few rely on
funding from friends/family
> High level of education of workforce with diverse
skills & experience
> Influence of experience on start-up success
outweighs education Most start-up
entrepreneurs have previous business experience
> Support during the ideation stage still limited but
access is widening with recent growth in
incubators, accelerators and angel groups
> Access to govt and large companies still difficult
> Strong trend-setting ability - 30% of start-ups
record a high degree of novelty in their products /
services
> Strength in manufacturing, retailing and consumer
service-oriented industries
CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Source: The start-up economy by PwC, 2013; Australia Small Business, 2012; Startup Ecosystem Report 2012 (Startup Genome); Roland Berger analysis

Benchmarking Start-up hubs: Sao Paulo

Sao Paulo is a fast-growing start-up ecosystem However,


challenges remain in terms of talent, support and funding
Sao Paulo Start-up Ecosystem
Overview

Index scoring
Funding
Index
20
15
10
5
0

Trendsetter
Index

Funding

11
Talent index

Talent

2
Support
index

Description

Notable
start-ups

> Largest start-up ecosystem in Brazil, with 605


start-ups

>
>
>
>

e-Commerce
Aggregator
Social network
Online education

Support

10
Trendsetting

> Large concentration of accelerators and venture


capital funds; however, there is still a funding gap
(Sao Paulo start-ups raise 86% less capital than
Silicon Valley start-ups)
> Young and energetic workforce; however, lacking in
terms of experience (entrepreneurs in Sao Paulo
are 59% less likely to be serial entrepreneurs
compared to entrepreneurs in Silicon Valley)

> Lack of regulatory incentives for start-ups and


structural issues (e.g. legal system does not allow
funding structures such as options/convertible
notes)
> Cost of doing business still high due to high taxes
and bureauracy
> Lower technology adoption than in Silicon Valley
> Sao Paulo start-ups rely heavily on PHP and .NET,
less on Java and Ruby

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Source: Startup Ecosystem Report 2012 (Startup Genome), Roland Berger analysis

Benchmarking Start-up hubs: Singapore

Singapore is the leading start-up hub in Asia due to start-up


friendly legislation, top-notch talent, and proximity to major
Asian markets
Singapore's Start-up Ecosystem
Overview

Trendsetter
Index

Index scoring
Funding
Index
20
15
10
5
0

Funding

13
Talent index

Talent

13
Support
index

Description

Notable
start-ups

> Leading start-up ecosystem in Asia


> #1 spot in the World Bank's "Ease of Doing
Business" ranking
> e-Commerce
> Aggregators

Support

5
Trendsetting

2
1) National Research Foundation's Technology Incubation Scheme; 2) Startup Enterprise Development Scheme by
SPRING, a Government agency set up to promote development of local SMEs
Source: Startup Ecosystem Report 2012 (Startup Genome), Roland Berger analysis

> Active early-stage funds spawned from government


funding e.g. NRF's TIF1), and SPRING's SEED2)
> Rely more on incubators and self-funding, less on
accelerators, super angels and VCs
> Highly educated work force and English-speaking
multicultural society
> 52% of entrepreneurs have Master/PHD education

> Highly active accelerators like Joyful Frog Digital


Incubator provide funding and mentoring to local
startups; Presence of intermediary organization
between entrepreneurs and angels (e.g. BANSEA)

> Lower technology adoption in Singapore than in


Silicon Valley (e.g. heavier reliance on PHP, Java,
and .NET, with no use of Ruby)

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Benchmarking Start-up hubs: Bangalore

While opportunities are present for Bangalore's start-up


scene, it must overcome challenges in all key areas
Bangalore's Start-up Ecosystem
Overview

Trendsetter
Index

Index scoring
Funding
Index
20
15
10
5
0

Funding

3
Talent index

Talent

3
Support
index

Description

Notable
start-ups

> Accounts for 41% of all new ventures


launched in India
> 4th largest tech cluster after Silicon Valley,
Boston & London

Support

> e-Commerce
> Software co.
> Digital agency

Trendsetting

(acquired by Facebook)

> Home to large number of venture capitals but


lacking in angel investors
> Overall funding gap, with 74% less funding raised in
Bangalore compared to Silicon Valley
> Talented workforce but lacks entrepreneurship
culture
> Entrepreneurship is not the first career path choice
- Lack of support from educational institutions

> Lacks incubators


> Requires more government support to establish
funded or supported incubators to bring together
entrepreneurs at ideation stage
> Low rate of technology adoption Bangalore
engineers heavily rely on PHP and Java, and much
less on Ruby and Python compared to their peers in
Silicon Valley

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Source: Startup Ecosystem Report 2012 (Startup Genome), Roland Berger analysis

Benchmarking Start-up hubs

Overall, the top start-up hubs excel in at least 3 out of 4 criteria


Most hubs rank highly in terms of talent, funding and support
Tel Aviv - #2

Los Angeles - #3
Funding
Index

Trendsetter
Index

20
15
10
5
0

Talent
index

Trendsetter
Index

Support
index

Funding
Index

Talent
index

Funding
Index

Talent
index

Trendsetter
Index

Support
index
Source: Startup Ecosystem Report 2012 (Startup Genome); Roland Berger analysis

Support
index

> Most leading start-up cities


rank highly in terms of talent,
funding and support
Talent
index

Singapore - #17

Funding
Index
20
15
10
5
0

20
15
10
5
0

> Only 2 of the selected cities


excel as trendsetters (i.e. Los
Angeles and Sydney)

Support
index

Sao Paulo - #13

20
15
10
5
0

Trendsetter
Index

Support
index

Sydney - #12

Trendsetter
Index

London - #7

Funding
Index
20
15
10
5
0

> The top start-up cities (i.e.


Tel Aviv, Los Angeles and
London) excel in at least 3 of
the 4 benchmark criteria

Bangalore - #19

Funding
Index

Talent
index

Trendsetter
Index

20
15
10
5
0

Funding
Index

Talent
index

Support
index

Trendsetter
Index

20
15
10
5
0

Support
index

CYBERJAYA GLOBAL TECHNOLOGY HUB BLUEPRINT

Talent
index

Thank You
For Enquiries
Technology Hub Division
Contact Person
:
Telephone
:
Email
:

Puan Siti Shafinaz


03 8315 6111
gth@cyberview.com.my

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