THE BIOECONOMY TRANSFORMATION PROGRAMME AGENDA FOR BORNEO KOTA KINABALU, SABAH 19 FEBRUARY 2013

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1 THE BIOECONOMY TRANSFORMATION PROGRAMME AGENDA FOR BORNEO KOTA KINABALU, SABAH 19 FEBRUARY 2013

2 The outcome of the future depends on the choices made today. The good news is, WE HAVE A CHOICE.

3 Our world population is growing fast and we mean really, really FAST. (We reached the 7 billion mark on 31 October 2011.) billion by

4 Malaysia s population today is 29.6 million million by

5 Rice is the world's number one staple food and feeds half the world's population. On average, hectare of land produces rice for 19 people.

6 Today, there s just enough rice to meet the demand. What about tomorrow?

7 WHITE POLLUTION We use 438 billion units of disposable take-out boxes & hot drink cups every year, which works out to be 140,000 units per second!

8 Source:

9 Polystyrene foam takes hundreds of years to biodegrade. The waste we throw today will have to be dealt with by the future generation for many years to come.

10 We are looking ahead to the We must be prepared for the

11 Bioeconomy Transformation Programme: Taking the Step Towards Tomorrow GNI in 2020 RM3.6 billion Investment by 2020 RM10.0 billion Enriching the Nation, Securing the Future New job opportunities 16,300

12 10 Entry Point Projects under BTP: Transforming Discoveries into Opportunities Industrial bio inputs 1 Biochemicals 2 Biomaterials 3 4 Bio-based farm inputs High value bioingredients 5 6 High value food varieties Biosimilars 7 8 Drug discovery Molecular screening 9 10 Stem cells and regenerative medicine

13 Established Ecosystem of Bioparks and Economic Corridors to Support Bioeconomy Agenda Agri-biotech cluster P.PINANG PERLIS KEDAH Melaka Biopharma Park MELAKA IRDA : ISKANDAR MALAYSIA NCER : NORTHERN CORRIDOR ECONOMIC REGION KELANTAN TERENGGANU PAHANG JOHOR ECER : EAST CORRIDOR ECONOMIC REGION Kerteh Bio-Polymer Park Mukah Tanjung Manis SDC : SABAH DEVELOPMENT CORRIDOR SARAWAK SABAH POIC Lahad Datu POIC Sandakan Tawau Biorefinery clusters SCORE: SARAWAK CORRIDOR OF RENEWABLE ENERGY

14 Importance of Borneo Participation in BTP Bioeconomy to leverage on Borneo s natural strengths Strategic location in the ASEAN region Borneo rainforests are one of the most biologically diverse ecosystems on Earth

15 Importance of Borneo Participation in BTP Bioeconomy to leverage on Borneo s natural strengths Long coastline for Aquaculture activities Available land for forest plantation and oil palm source of renewable feedstock

16 BiotechCorp s Roles to Ensure Success of BTP Projects in Borneo Collaboration with economic corridors and clusters Human Capital development Enhancing Public Private Partnership through BioNexus Partnering Program Enablers in Borneo Creation of successful BioNexus status companies

17 Impactful Projects to Generate Socio-Economic Benefits

18 Technology Impact & Location Lobster Farming : Great Economic Change in Sabah GNI in 2020: RM300 million Employment: 16,800 people Investment: RM 2 billion The First Fully Integrated Lobster Aquaculture in the World Formulation of an live feed & artificial feed using microorganisms (e.g. microalgae) Selective breeding & Biological filtration system Cultivation of different types of micro-algae as live feed for early stage feeding of larvae/fry. Different stages of development will require different formulation of live feed (12 different development stages) Selective breeding; use of microorganism as additive to maintain water quality, improve growth & survival rates of larvae/fry

19 Despite rice being Malaysian s staple food, the country currently still relies heavily on imports. Annual Consumption 2.8 million tonnes 1 Malaysia imports about 1.1 million tonnes of rice annually (mainly from Vietnam and Thailand). Import of rice costs Malaysia over RM1 billion annually. Annual Local Production 1.7 million tonnes Annual Import of Rice 1.1 million tonnes

20 Hybrid Rice Project: Improving Sufficiency Level, Improving Lives Hybrid Rice Trigger Project Help nation achieve Food Security Improve Rice Self Sufficiency Level (Save RM4.2 billion on rice imports by 2020) Improve farmers yearly income by 63% (up to RM1.6 billion by 2020)

21 AgriBiotech Centre of Excellence for Highland Farming - Kundasang, Sabah To implement sustainable temperate farming through integrated crop management approach. The project will utilise biopesticides, bio-fertilisers, beneficial insects, integrated weed management, etc. The project will also uptake initiatives on the conversion of agiculture waste into useful products e.g. biofertiliser, biochemicals, etc.

22 Getting Higher Value from Energy Crops and Biomass Oil palm Leucaena leucocephala Existing plantation infrastructure in Borneo abundant source of renewable resources as cellulosic feedstock. Acacia mangium Creating new industries e.g. bio-based chemicals, bioplastics Sago

23 Developing Biorefinery Clusters Leveraging on strengths of oil palm and petrochemical industries in Borneo to drive sustainable access to cellulosic sugar market. USD 600 BILLION (2025) BY 2025 GLOBAL MARKET USD 164 BILLION (2010) FOR BIOREFINERY CHEMICALS WILL GROW BY 4X

24 Public-Private Partnership to Convert Biomass into Cellulosic Sugar Oil Palm Millers Facilitate biomass conversion Production of industrial sugar Supply industrial sugar to biorefinery clusters Form Partnership - Retrofitting of the mills - Funding scheme as enabler - Other assistance Priority to mills close to biorefinery clusters

25 Discovering Values From the Biodiversity Pharmaceutical and nutraceutical potential High value bio-ingredients Biodiversity make scents

26 Increase in Malaysia s GNI 1 2 Creation of Quality Jobs for Malaysians Improving the Income of the Rakyat 3 4 Promotion of a Green Economy Improve Health and Well-Being of the Rakyat 5

27 Concluding Remarks Bioeconomy Transformation Programme aims to deliver economic, national and social priorities: Significantly impact the economy, productivity, environment, welfare and prosperity of Malaysia. Foster public-private interactions in developing and exploring high-impact opportunities in biotechnology. Leverage and realize biotechnology as an engine of economic growth in accordance with the action plan outlined in the National Biotechnology Policy.

28 THANK YOU Ready To Inspire Commercializing Innovation in Biotechnology