National Nanotechnology Directorate Driving NanoMalaysia Agenda Towards 2020
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1 National Nanotechnology Directorate Driving NanoMalaysia Agenda Dr. Abdul Kadir Masrom Undersecretary & Director National Nanotechnology Directorate Ministry of Science, Technology and Innovation (MOSTI) Putrajaya, Malaysia 1 1
2 Contents 1. Introduction 2. Nanotechnology and Economic Growth 3. The Malaysia Landscape Malaysia Transformation ETP, NKEA, Vision NT as a driver for Growth Malaysian NT Initiatives & National Nanotechnology Directorate NT Shaping the destiny of Malaysia Today 5. Developing National Commercial Capability in Nanotechnology 6. Jumpstarting NT 2
3 MOVING FORWARD The National Nanotechnology Strategic Direction and Action Plan aims to lay the foundations of a thriving nanotechnology industry in Malaysia; one that will be a major revenue generator for the nation till 2020 and beyond. This will start with a specific end-goal achieving 1% of the GNI by 2020 So the journey begins. 3 3
4 APPENDIX A-2 Nanotechnology has been described as the next major global growth engine and it is a technology that is rapidly moving from laboratory to production
5 How we respond to this new technology evolution Strategies Action Plan Road Map Economic Contributions 5
6 How will nanotechnology change the world? Two views & Four perspectives Nanotechnology leads to radical discontinuity Utopia: material goods free, environment cleaned up, disease ended, the end of ageing and death Dystopia: loss of control of technology leads to extinction of the human race No radical discontinuity, but continued incremental progress Nanotechnology will replace IT as the major driver of economic growth Nanotechnology will lead to environmental degradation and a growing gulf between rich and poor 6
7 Nanotechnology as a driver of economic growth We believe nanotechnology could be the next growth innovation. Like the internet, nanotech risks being overhyped, but also like the internet, where there s smoke there s fire. The Next Small Thing: Merrill Lynch Tech Trends research report. 7
8 Why is nanotechnology important for our economy? NT is often referred to as horizontal, key or enabling since it can pervade virtually all technological sectors. It often brings together different areas of science and benefits from an interdisciplinary or converging approach and is expected to lead to innovations that can contribute towards addressing many of the problems facing today s society. 8
9 Three phases of nanotechnology Incremental nanotechnology Continuation of existing trends in materials science, colloid science - typified by nanomaterials Evolutionary nanotechnology Overcoming well-known technology barriers Radical nanotechnology Entirely new products and technologies 9
10 The Convergent - Bio-nanotechnology Incorporation of biological nanocomponents into synthetic structures Potentially a route to quick results Drug delivery (including gene therapy) Tissue engineering Biomimetic light harvesting systems Likely to provide ethical dilemmas 10
11 4 Sectors that pull the global economy into its expansion starting from late 2009: Nanotech solar energy, surface computing wireless data 11
12 THE MALAYSIAN LANDSCAPE 12
13 WEF Competitiveness Report: Malaysia in the 25 th position out of 144 countries. Upgraded to a transition economy one that is moving towards an innovation-driven economy. However, a major area of concern is Malaysia s low level of technological readiness. Needs to increase its levels of innovativeness and entrepreneurship. essential stepping stones towards becoming an innovation-driven economy as stated in the New Economic Model (NEM). 13
14 Major global player in sectors energy, palm oil, electronics and electrical products, Malaysia s competitiveness advantage dependent on technological advances in these areas. nanotechnology will have a pervasive impact across these sectors Second National Science and Technology Policy (STP II) launched in 2003 had identified nanotechnology and photonics as priority emerging technologies. 14
15 Economic Transformation 15
16 Transformation of Malaysia 16
17 Towards Achieving Vision 2020 re-generate growth through new initiatives for the Malaysian economy in 2010 for the coming decade. To fulfil the 2020 goal New Economic Model (NEM) and Economic Transformation Programme (ETP) Introducing lift the national per capita income to between USD 15,000 and USD 20,000. Goal 17
18 Goals of New Economic Model(NEM) 18
19 The challenge is to identify a key strategic driver that will deliver growth and high income in the years ahead. This driver must fulfil our native requirements and should leverage upon existing strengths. 19
20 Innovation: Driver of Economic Growth Innovation has always been an important growth driver and its pace is accelerating. New applications in nanotechnology and renewable energy are for example set to trigger new growth opportunities across a wide range of industries. The innovation momentum has picked up speed in recent years, as highlighted by the number of registered patents every year, up 35 percent since Technological innovation can spur a country s economic growth. The market potential could reach multiple billion of dollars in the next years. 20
21 Malaysia Transformation- Achieving Vision2020 VISION 2020 Specific goal of attaining developed nation status by years Maintaining an annual growth rate of 6% per annum 6% per annum New Economic Model (NEM) intends to transform Malaysia into a high income nation by 2020 To achieve per capita income (PCI) USD15k- USD20k (RM45k-RM60k) from RM23.7k(2010) 8 Years Vision 2020 Economic Transformation Program (ETP) 12 National Key Economic Areas (NKEAs) 21
22 22
23 The NKEAs were selected because they are significant engines of future growth and their expected contribution to GNI in 2020 will help Malaysia achieve highincome status. 23
24 Education Oil, Gas and Energy Tourism Financial Services Wholesale and Retail NKEAs 11 Industry Sectors + Greater KL / KV Electronics and Electrical Business Services Healthcare Agriculture Palm Oil 24
25 EPPs: The beginning of an evolving journey towards becoming a high-income economy The Economic Transformation Programme was launched with 131 Entry Point Projects (EPPs). The National Key Economic Areas (NKEAs) are the engines of growth, while the Entry Point Projects are the spark plugs that will fire up these engines, to a new level of performance. These are high impact projects, matched with specific ideas and actions, to spur the growth of the NKEAs. To-date, 18 Entry Point Projects have been launched driven and led by the private sector. All the EPPs within the NKEAs will lead Malaysia towards achieving a high- income nation status by
26 TECHNOLOGY THE DRIVER OF GROWTH AND HIGH INCOME Growth will be powered by the 12 National Key Economic Areas (NKEA) Nanotechnology incidentally stands at the apex of high technology. Nanotechnology, identified as the high growth generator, is pivotal to Malaysia becoming a developed nation by
27 Nanotechnology As New Driver for Growth Nanotechnology development would be given priority and be made one of the resources of the country's new economic model..thus, it is important for Malaysia to not be left behind in the field of nanotechnology and we have decided to give it importance YAB Dato Sri Mohd Najib Tun Razak 29 Oct
28 Nanotechnology As Economic Transformation Agents 28
29 Malaysia Transformation & Nanotechnology as Transformation agent June National Council for Scientific Research and Development (NCSRD) conduct a study through funds provided by the Economic Planning Unit. business and R&D opportunities evaluate country rediness Report of the study was published May 2007, Key findings of this study include: 29
30 Six targeted products and technologies identified. They are: Photovoltaic (PV) Solar cells Li-ion Batteries Plant Vaccines Drug Delivery Systems Nanobiochips Nanobiosensors 30
31 2001 Inclusion of Nanotechnology into the Intensification of Research in Priority Areas (IRPA) 2005 Declaration of the need for a national nanotechnology initiative during the Malaysia Nanotechnology Forum 2006 Launch of the Malaysian Nanotechnology Initiatives by the then Deputy Prime Minister (now the Prime Minister) 2007 Commissioning of a study by the Economic Planning Unit (EPU) on the Identification of Business and R&D Opportunities in the Applications of Nanotechnology in Malaysia 2009 Establishment of the National Nanotechnology Directorate (NND) 2010 Launching of the National Nanotechnology Statement 2011 Identification of NanoMalaysia Centers of Excellence Introduction of Top-down Nanotechnology Research Grant (NanoFund) 2011 Incorporation of Nano Malaysia Berhad (NMB) to be the lead driver for the nanotechnology industry in Malaysia. 31
32 National Nanotechnology Initiative The NNI was established in 2005 to advance nanotechnology and related sciences by clustering local resources and knowledge between Malaysian researchers, industry and the government. The Ministry of of Science, Technology and and Innovation 32
33 The NNI dealt with promoting: World-class nanotechnology research institutions; Strong expenditure on nanotechnology R&D; Competitive business environment; Robust education and training systems; Highly skilled, educated, and diverse workforce; and Efficient infrastructure and integrated nanotechnology activity 33
34 NNI strategies : NNI strategies included: Improving Malaysian economic competitiveness to face global challenges; Accelerating scientific breakthroughs on selective beneficial nanotechnologies; Enhancing societal and environmental contributions from nanotechnology. The NNI paved way for the establishment of the National Nanotechnology Directorate under the Ministry of Science, Technology and Innovation in The National Nanotechnology Directorate (NND) facilitates nanotechnology development in Malaysia by acting as a central coordination agency. 34
35 NATIONAL NANOTECHNOLOGY DIRECTORATE (NND) : Mandates To develop national capability and capacity through the development of policies, infrastructure and facilities, To boost human capital in the field; To plan and coordinate development of NT-based industries Education and public awareness programmes Building capacity and R&D facilities Health, safety and environment al initiatives 35
36 The NND helped accelerate various key activities related to nanotechnology through initiatives such as: The launch of the National Nanotechnology Statement (NNS) in 2010 The incorporation of NanoMalaysia Berhad in 2012 Establishment of National Nanotechnology Centres of Excellence in 2011 Development of the NanoMalaysia Centre in Iskandar Malaysia in
37 The National Nanotechnology Policy Statement It is envisioned that nanotechnology will be a transdisciplinary strategic growth engine for Malaysia. This will be achieved through a symbiotic national nanotechnology ecosystem that will ensure sustainable development. 37
38 NATIONAL NANOTECHNOLOGY STATEMENT The government of Malaysia aspires to exploit nanotechnology as an enabling engine for new economic growth, sustainable development and societal wellbeing: Nanotechnology development initiatives provide platforms for science and engineering research, in order to create innovative and marketable products and services. Nanotechnology is an innovative and converging field of knowledge. 38
39 The National Nanotechnology Statement has five themes. They are: Theme 5: Promotion of commercialisation and industrialisation Theme 1: Inculcation of a nanotechnology culture Theme 2: Strengthening of research and innovation as a national niche focus area Theme 4: Upholding of regulations and acts Theme 3: Enhancement of collaboration and networking 39
40 NANOMALAYSIA BERHAD NanoMalaysia Berhad was incorporated in 2011 as a company limited by guarantee (CLG) to act as a business entity entrusted with nanotechnology commercialisation activities. Some of its roles include: Managing and developing Nano Malaysia Centre and other approved Strategic Infrastructure and Facilities for the NND Pre-commercialisation and commercialisation of nanotechnology products To plan and coordinate Research, Development and Commercialisation activities in Malaysia Bringing in venture funds and international investments in nanotechnology International linkages and networking To facilitate the positioning of Malaysia s nanotechnology industries and products in the global supply and value chain. 40
41 NanoMalaysia Center The NanoMalaysia Centre (NMC) will be established as a central coordination body for nanotechnology development in Malaysia. Provide world-class R&D&C and infrastructure in Malaysia Location: Senai Hi-Tech Park, Developed under Public Private Partnership Infrastructure development for R&D and pre-commercialisation activities Infrastructure development for nanotechnology business and incubator programmes. Key goals of the NMC are to: Position Malaysia as a hub for nanotechnology knowledge and applications Promote commercialisation activities by local companies Collaborate with the IRDA in areas such as education and expertise development, research and Promote local nanotechnology products abroad Coordinate nanotechnology R&D&C activities in Malaysia. It is envisaged that the establishment of NanoMalaysia Centre and its specific corporate vehicle namely NanoMalaysia Berhad, will facilitate and provide commercialisation platforms including technology incubator facilities. 41
42 NATIONAL CENTRES OF EXCELLENCE IN NANOTECHNOLOGY The NanoMalaysia CoEs support nanotechnology R&D and provide shared facilities and human capital training. The NanoMalaysia COEs are: (Fig. 9) Institute of Micro Engineering and Nanoelectronics (IMEN), UKM: It focuses on Nanoelectromechanical Systems (NEMS) and Labon-Chips for the biomedical industry. Institute of Nanoelectronics and Engineering (INEE), UNIMAP: Focuses on Nano DNA Chips for medical diagnostics. Centre for Innovative Nanostructures and Nanodevices (COINN), UTP: Focuses on Solar energy. NEMS/MEMS Research Laboratory, MIMOS: Focuses on Self Powered Breath Sensors for Intelligent Wearable & Healthcare Monitoring Systems. Enabling Science and Nanotechnology Research, Ibnu Sina Institute for Fundamental Science Studies (IIFS), UTM: Focuses on Novel Functional Nanomaterials: Synthesis and Computational Design 42
43 NT Road Map 43
44 KEY THRUST AREAS AND NT ECOSYSTEM Strategic Development and Management of Nanotechnology in Malaysia Global Marketing and Strategic Procurement Development of World Class Industry Players Nurturing Entrepreneurship in Nanotechnology Developing a Comprehensive Regulatory and Safety Framework Establishment of Strategic-Driven Nanotechnology Research, Development and Commercialisation Programmes Development of Human Capital for Nanotechnology Development of World Class Facilities and Infrastructure Inculcating Nanotechnology Facilitating Global Smart Partnership and Collaboration Promoting and Facilitating Investments in Nanotechnology 44
45 45
46 Sustaining A High Income Economy The Strategic Role of Nanotechnology Nanotechnology is a cross-cutting industrial enabler that will strategically sustain the nation s position as a competitive highincome economy. This will likely continue beyond the year The High Income Economy Technology as a Strategic Driver For the next 8 years, the country will see increased income generated from domestic production of nanotechnology products as well as corporate income from overseas nanotechnology activities. 46
47 Nanotechnology Projects supporting NKEAs Education Oil, Gas and Energy Tourism Financial Services NKEAs 11 Industry Sectors + Greater KL / KV NKEAs 11 Industry Sectors + Greater KL / KV Wholesale and Retail Electronics and Electrical Business Services Healthcare Agriculture Palm Oil 47
48 How NT fit into 12 NKEAs Nanotechnology will impact all 12 NKEAs in varying degrees The National NT Policy and strategy will therefore effectuate key developmental goals till 2020 and beyond Two choices Opting for foreign NT inputs, or Developing our own NT superstructure naturally preferred as indigenous NT is poised to be a major growth area for Malaysia in its own right NND formulate National NT Agenda supports the VISION 2020 and transforming Malaysia into a developed economy within the next 8 years 48
49 NT as next growth driver Focus on 4 sectors food and agriculture; energy and environment; and medical and healthcare; electronics devices and systems HIGH VALUE ADDITIONS: create an initial momentum for the development of the local nanotechnology sector LEVERAGING UPON EXISTING KEY MARKETS: introduction of additional nano products for wider industrial applications NATURAL EXPANSION BASED ON EXISTING AREAS OF STRENGTH: 49
50 NANOTECHNOLOGY AS THE NEXT GROWTH DRIVER FOR MALAYSIA Nanotechnology is a prerequisite for future economic prosperity, sustainable living, knowledge creation and technological competitiveness. It is the pivot upon which all other future industries will thrive and succeed as more than 30% of global products will incorporate nanotechnology by Malaysia is in a prime position to exploit these opportunities. Leveraging upon Existing Key Markets High Value Addition s The Next Big Thing Natural Expansion Based on Existing Areas of Strength Strategic Enabling Technology Harnessing Our Current Natural and Human Resources 50
51 Electronics and Semiconductors Agro- Products and Processed Foods Leveraging Existing Markets Nanotechnology Ready ICT Oil & Gas and Energy Palm Oilbased Products Malaysia is a leading exporter of oil and gas products, electronics and semiconductors, oil palm products, agro products, halal food as well as ICT components. Green and sustainable technologies have also emerged as a new growth industry in Malaysia. These sectors are either nanotech-ready or they can help incorporate enabling nanotechnologies have access to global markets via these sectors use them as a launching pad to introduce premium, nano-enhanced products and services. Harnessing Nanotechnology for Sustained National Prosperity Natural Foundation Bio-based Sciences Environmental Sciences Chemistry Bio-based Sciences (Nanobiochemicals) Malaysia also has an advantage in bio-sciences due to its natural biodiversity and its vibrant palm oil industry. It is in biodiversity where Malaysia has an incomparable edge. It is designated as one of the top 12 megabiodiversity nations in the world. 51
52 18 Relevant EPPs that will contribute to initiate project in NT 52
53 11 Nanotechnology projects that will impact 18 EPPs 1 Bio-security Products 2 Nano Diagnostic Systems 3 Nano- Nutrition 4 Water Treatment Systems 5 Nano Delivery Systems 6 Bio Fuels 7 Food Nanocoatings 8 Anti-Corrosion Nanocoatings 9 Third Generation Solar Cells Hydrogen Reactors Oil and Gas Drilling Fluids 53
54 The fastest route to build nano-capability acquisition and/or establishment of JVs with foreign companies in developed economies. Malaysian GLCs and PLCs can strategically identify companies that have technologies that can be channelled to develop niche products for existing markets. 54
55 Developing National Commercial Capability in Nanotechnology Two-pronged track are required. i. One will relate to domestic commercialisation activities ii. To tackle greater MNC investments to attract new manufacturing and R&D operations in nanotechnology. The latter approach will either support existing operations in Malaysia or will establish new set-ups that can benefit from incentives for the establishment of local nanotechnology facilities. The national nanotechnology policy is conscious of the importance of having a competent pool of human capital to build domestic capability, as well to provide the right resources for MNCs that may want to establish Malaysia as a global base for successful nanotechnology ventures. 55
56 Developing National Commercial Capability in Nanotechnology The NND has identified approximately 70 organisations that are actively involved in nanotechnology development. In addition, about 40 MNCs currently have operations in Malaysia in sectors such as Energy and Utilities; Food and Beverages; Oil, Gas and Petrochemicals; Chemicals and Minerals; Electrical and Electronics; and ICT and Communications. These MNCs are actively developing nanotechnology at their group levels, and can be tapped to become early investors in local nanotechnology. 56
57 Developing National Commercial Capability in Nanotechnology Three approaches to Create a Global Nanotechnology Industry The Petronas Experience Local Firms GLCs and PLCs can fasttrack nanotechnology growth through JVs with MNCs to complement current products for niche markets. The Palm Oil Experience Local Firms New technology based companies can be nurtured and developed either through venture funds or via joint-ventures with domestic GLCs and PLCs The Semiconductor Experience To encourage MNCs in Malaysia to undertake new investments in the four nanotechnology target clusters Strategy Fast-Track (Domestic Capability Development via Global Placement) Strategy Medium Growth (Domestic Capability Development) Strategy Fast-Track (Domestic Capability Development via MNCs) Income Earned from a Foreign Country Domestic Income Domestic Income from MNC activities 57
58 Developing National Commercial Capability in Nanotechnology The Palm Oil Experience Advantages of this approach: A route to commercialise locally developed technologies Develop domestic in-country capabilities Encourage collaboration between local industries and the research community Develop local venture capital industries for nanotechnology The NND has identified approximately 50 companies that are actively involved in nanotechnology development, and more than 20 organisations, involved in research and development 58
59 Developing National Commercial Capability in Nanotechnology The Semiconductor Experience The electronic industry, especially the semiconductor sub-sector, has developed thousands of competent professionals in the industry. Malaysia can now encourage MNCs in targeted sectors such as oil and gas (including petrochemicals), electrical and electronics, and pharmaceuticals and healthcare to bring their nanotechnology-specific operations into Malaysia. This is possible based on the fact that many of the current MNCs operating in Malaysia have nanotechnology-related activities within their group. To get MNCs to introduce their nanotechnology operations into Malaysia, this document has identified MNCs belonging to the Malaysian International Chamber of Commerce and Industry. Particular areas include: 59
60 Agriculture and Plantations Energy and Utilities Food and Beverages Oil, Gas and Petrochemicals Chemicals and Minerals Electrical and Electronics ICT and Communications 60
61 MNCs in Malaysia Having Nanotechnology Activities at Group Level Industry Category Number of Company Having Nanotechnology Within the Group Energy and Utilities 4 3 Food and Beverages 16 3 Oil, Gas and Petrochemicals 22 6 Chemical and Minerals 26 6 Electrical and Electronics ICT and Communications 6 2 Total
62 Total Potential Commercial Players in Nanotechnology Approach Number of Potential Players The Petronas Experience 38 The Palm Oil Experience 70 The Semiconductor Experience 43 Total
63 What is the potential of 1% GNI by 2020 for Malaysia 63
64 4 CHAPTER 4 JUMPSTARTING NANOTECHNOLOGY 64 64
65 65
66 IDENTIFYING POTENTIAL JUMPSTART SECTORS Identify potential commercial nanotechnology sectors There are several possible sectors that can be explored to jumpstart local nanotechnology. Among them are: Construction Healthcare Automotive Agriculture and Food Energy and Oil & Gas Electricals and Electronics ICTs Chemicals 66
67 67
68 IDENTIFYING POTENTIAL JUMPSTART SECTORS PROPOSED KEY SECTORS FOR JUMPSTARTING NANOTECHNOLOGY IN MALAYSIA Key Sectors to Jumpstart Malaysian Nanotechnology The elements identified earlier under Market Presence and Technological Capability were then used as the basis of sectorial assessments. The tables in the next page shows the results of these assessments. 68
69 IDENTIFYING POTENTIAL JUMPSTART SECTORS SECTORS AND MARKET PRESENCE SECTORS AND TECHNOLOGICAL CAPABILITY 69
70 IDENTIFYING POTENTIAL JUMPSTART SECTORS Sectorial Assessment Existing Markets to Tap, and with Technological Capability to Develop Nanotechnology 70 70
71 HIGH Introduction IMPACT R&D AND NKEAs The research, development and commercialisation aspects of nanotechnology are probably its most crucial components. This is where the integration of resources will ultimately produce world class products and services that will generate income for the nation. Malaysia will need a sound human capital development program, world-class infrastructure and funding to deliver strategic outcomes. Issues and Challenges Among the issues that may inhibit the progress of nanotechnology in Malaysia is the lack of: Strategic Direction Human Capital Funding Infrastructure Jumpstarting the Nanotechnology Industry through EPPs Collaboration Industry/Research Community The Strategic Direction Malaysia will have to balance between opportunities and risks that will be encountered in making nanotechnology a strategic growth area for the country. The proposed approach is to leverage upon sectors where we already have relatively strong market positions. This is where early markets for nanotechnology will be created. Food and Agriculture Energy and Environment Wellness, Medical and Electronics, Devices and Leveraging Upon Existing Market Presence - Ensuring Sustainable Healthcare Initiatives Systems Jumpstarting Malaysia s Entry into Nanotechnology through Four Key Sectors Four key economic clusters have been identified as early movers for nanotechnology for Malaysia 71 71
72 HIGH IMPACT R&D AND NT for NKEAs 1 Bio-security Products 2 Nano Diagnostic Systems 3 Nano- Nutrition 4 Water Treatment Systems 5 Nano Delivery Systems 6 Bio Fuels 7 Food Nanocoatings 8 Anti-Corrosion Nanocoatings 9 Third Generation Solar Cells Hydrogen Reactors Oil and Gas Drilling Fluids Jumpstarting the Nanotechnology Industry through EPPs Food and Agriculture Energy and Environment Wellness, Medical and Healthcare Leveraging Upon Existing Market Presence - Ensuring Sustainable Initiatives Electronics, Devices and Systems 72
73 Jumpstarting Nanotechnology Through EPPs 1 Bio-security Products 2 Nano Diagnostic Systems 3 Nano- Nutrition 4 Water Treatment Systems 5 Nano Delivery Systems 6 Bio-Fuels 7 Food Nanocoatings 8 Anti-Corrosion Nanocoatings 9 Third Generation Solar Cells 10 Hydrogen 11 Reactors Oil and Gas Drilling Fluids High Impact Products for the Entry Point Projects 73
74 Conclusion NND was established to spear head NT development in Malaysia. NND was entrusted to strenghten national NT capabilities and Capacities through development and implementation of policies, support NT infrastructure and physical facilities, support early education in NT and developed human capital in the field. A strategci approach to jumpstart the NT industry was adopted by aligning NT to national socio-economic planning innitiatives such as; The New Economic Model(NEM) The Economic Transformation Programme (ETP) The national NT agenda leverages upon Malaysia s key sectors to provide impact contributions to 18 EPPs identified under the 12 NKEAs The NT agenda starts with a primary outcome NT to contribute to at least 1% of Malaysia s GNI by
75 Thank You 75
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