IR 4 Building the Innovation Ecosystem Mahadhir Aziz

IR 4: Building the Innovation Ecosystem Mahadhir Aziz Futurise Centre 26 April 2018

Investor Relations Services To drive the transformation of Cyberjaya into a Global Technology Hub Industry Development Initiatives Tech Hub Development & Management Services Ø Growing township focusing on technology-based companies Ø Develop sustainable innovation ecosystems geared towards future economy Ø Support & complement national initiatives and global agenda 2

Global Technology Hub Blueprint – Future State Based from Global Startup Ecosystem Report 2017 • Startup Genome assessed 55 startup ecosystems across 28 countries and unveils insights from 10, 000+ startups including: • Global rankings and benchmarks on key factors such as funding, talent, market reach, corporate involvement, ambition, overall performance, and more. • A snapshot of region‐specific data that highlights an ecosystem’s current state. • Trend essays that address the global connectedness of startup founders, concentration of respective value creation, and the urgency for cities to invest now. By Startup Genome, in partnership with Global Entrepreneurship Network Startup Genome examined how cities help growing and sustaining vibrant startup ecosystems through nine major factors: 1. 2. 3. 4. 5. 6. 7. 8. 9. Funding, Market reach, Global connectedness, Technical talent, Startup experience, Resource attraction, Corporate involvement, Founder ambition and Strategy. • Silicon Valley, together with London and New York City, forms the top tier of startup ecosystems. • 25% of startups around the world are to London; 30 % for New York City. No other startup ecosystem comes close to these three in terms of what we call “inbound” global connections 3

Global Technology Hub Blueprint – Future State Based from Genome Global Startup Ecosystem Report 2017 The Need for Global Connectedness • • Networks and connections have long been assumed to be important in determining the strength of startup ecosystems. Attempts to quantify this have been good but limited by data availability. Based on analysis, the report find that globally-connected startup ecosystems grow faster and perform better than less‐connected places. List of some of the new factors and metrics developed as part of expanded Ecosystem Assessment Framework : ‐ • Global Connectedness: quantifies the international relationships between startup, and how they developed. Startup’s ability to reach outside its own ecosystem with the ability to attract foreign customers. • Resource Attraction and Leakages: function of ecosystem performance and lifecycle evolution, quantify the movement of startups and entrepreneurs between ecosystems, and attraction of offices of VC firms. • Founder Ambition: quantifies the product is considered to be new or first in the world, or a local version, and going global • Founder Go-Global Strategy: measures whether its going global from the outset or first targets its local market, and whether its customer acquisition team is located, targeted, and skilled to succeed. • Corporate Involvement: measure the perception that corporations are interested in working with startups. Greater Global Connectedness leads to higher performance for startups and their ecosystems. Establishing more relationships between founders and executives in other parts of the world brings in more ideas and more innovation, resulting in faster startup growth and more vibrant ecosystems. Startups thrive on relationships and the exchange of ideas—with customers, investors, corporations, and, especially, other startups. 4

Global Technology Hub Blueprint – Future State Support towards Future Economy “Future Economy” is defined as a vibrant and resilient economy that creates opportunities for all by enabling people to have deep skills and be inspired to learn throughout their lives, allowing businesses to be innovative and nimble, creating cities that are vibrant, connected to the world, continually renewing itself, and Governments that are coordinated, inclusive and responsive Circular Economy A circular economy is a regenerative system in which resource input and waste, emission, and energy leakage are minimised by slowing, closing, and narrowing material and energy loops. This can be achieved through long‐lasting design, maintenance, repair, reuse, remanufacturing, refurbishing, and recycling The world is shifting from the traditional model of consumption known as the Linear Economic Model ‐ Make, Use, Dispose ‐ to a model of true sustainability. 5

Global Technology Hub Blueprint – Future State Support towards Future Economy “Future Economy” is defined as a vibrant and resilient economy that creates opportunities for all by enabling people to have deep skills and be inspired to learn throughout their lives, allowing businesses to be innovative and nimble, creating cities that are vibrant, connected to the world, continually renewing itself, and Governments that are coordinated, inclusive and responsive Gig Economy In a Gig Economy, temporary, flexible jobs are commonplace and companies tend toward hiring independent contractors and freelancers instead of full‐ time employees. A gig economy undermines the traditional economy of full‐time workers who rarely change positions and instead focus on a lifetime career. Due to the large numbers of people willing to work part‐ time or temporary positions, the result of a gig economy is cheaper, more efficient services for those willing to use them. Those who don't engage in using technological services such as the Internet tend to be left behind by the benefits of the gig economy. Cities tend to have the most highly developed services and are the most entrenched in the gig economy. 6

Global Technology Hub Blueprint – Future State Support towards Future Economy “Future Economy” is defined as a vibrant and resilient economy that creates opportunities for all by enabling people to have deep skills and be inspired to learn throughout their lives, allowing businesses to be innovative and nimble, creating cities that are vibrant, connected to the world, continually renewing itself, and Governments that are coordinated, inclusive and responsive Digital Economy describes the range of economic and social activities that are enabled by information and communications technologies. It includes activities like banking, buying and selling, and accessing education or entertainment using the internet and connected devices. The digital economy is not separate to the economy. It impacts all industries and business types, and influences the way we interact with each other every day. The World Economic Forum’s Networked Readiness Index 2016 measures how well an economy is using information and communications technologies to boost competitiveness and well‐being. Networked readiness shows how ready each country is to reap the benefits of Industry Revolution 4. 0 transition. 7

Global Technology Hub Blueprint – Future State Support towards Future Economy “Future Economy” is defined as a vibrant and resilient economy that creates opportunities for all by enabling people to have deep skills and be inspired to learn throughout their lives, allowing businesses to be innovative and nimble, creating cities that are vibrant, connected to the world, continually renewing itself, and Governments that are coordinated, inclusive and responsive Future Economy Model Benchmarking o The Committee on the Future Economy (CFE) was convened in January 2016 to review Singapore’s economic strategies o CFE’s strategies aim to keep Singapore open and connected to the world, while building value-creating economy, multitude opportunities with sustainable wage growth & meaningful careers to its citizen o 7 strategies has been laid out to allow economic growth of 2‐ 3% per year on average Future Economy 7 strategies 1 Deepen and diversify international connections 2 Acquire and utilise deep skills 3 Strengthen enterprise capabilities to innovate and scale up 4 Build strong digital capabilities 5 Develop a vibrant and connected city of opportunity 6 Develop and implement Industry Transformation Maps (ITMs) 7 Partner each other to enable innovation and growth 8

Global Technology Hub Blueprint – Future State Support towards UN Sustainable Development Goals • The Sustainable Development Goals Report 2017 reviews progress made towards the 17 Goals in the second year of implementation of the 2030 Agenda for Sustainable Development. • In 2015, countries adopted the 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals. • Sustainable development has been defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. • Sustainable development calls for concerted efforts towards building an inclusive, sustainable and resilient future for people and planet. • For sustainable development to be achieved, it is crucial to harmonize three core elements: economic growth, social inclusion and environmental protection. These elements are interconnected and all are crucial for the well‐being of individuals and societies. • To this end, there must be promotion of sustainable, inclusive and equitable economic growth, creating greater opportunities for all, reducing inequalities, raising basic standards of living, fostering equitable social development and inclusion, and promoting integrated and sustainable management of natural resources and ecosystems. 9

Global Technology Hub Blueprint – Future State Support towards Transformasi Nasional 2050 • Transformasi Nasional 2050’ or TN 50 is an initiative to plan for the future of Malaysia in the period 2020 to 2050. • It is a new vision for Malaysia, announced by the Prime Minister of Malaysia during the 2017 Budget. • From the vision of becoming a developed nation, Malaysia should strive to be amongst the top countries in the world in economic development, citizen wellbeing and innovation. • TN 50 aims to transform Malaysia into a nation of caliber with a new mindset, and the youths of all races will form the core of this new transformation plan. MALAYSIA’S KEY DEVELOPMENT ERAS 10

Global Technology Hub Blueprint – Future State Support towards Industry Revolution 4. 0 (IR 4. 0) Signifies the trend of automation and data exchange in manufacturing technologies which creates what has been called a "smart factory. Also defines as advanced production and operations techniques with smart digital technologies to create a digital enterprise that would not only be interconnected and autonomous but could communicate, analyze, and use data to drive further intelligent action back in the physical world. It also represents the ways in which smart, connected technology would become embedded within organizations, people, and assets, and is marked by the emergence of capabilities such as robotics, analytics, artificial intelligence and cognitive technologies, nanotechnology, quantum computing, wearables, the Internet of Things, additive manufacturing, and advanced materials. Industrial Revolution Pillars Industrial Revolution Phases Impact of IR 4. 0 will affect many areas, most notably: o Services and business models o Reliability and continuous productivity o IT security o Machine safety o Product lifecycles o Industry value chain o Workers' education and skills o Socio‐economic factors o Industry Demonstration IR 4. 0 Technology Roadmap o IR 4. 0 roadmap visualizes every further step on the route towards an entirely digital enterprise. IR 4. 0 is driven by digital transformation in vertical/horizontal value chains and product/service offerings of the companies. o The required key technologies for IR 4. 0 transformation such as artificial intelligence, internet of things, machine learning, cloud systems, cybersecurity, adaptive robotics cause radical changes in the business processes of organizations 11

Global Technology Hub Blueprint – Future State Support towards Rancangan Malaysia Ke-11 • The Eleventh Plan is formulated with the rakyat as the center piece of all development efforts. • The people economy will be given priority, reinforcing the Government’s commitment to bring further development to the people by enriching their lives, providing people with dignity, and uplifting their potential to partake in the country’s prosperity that is generated. • All segments of society must benefit from the country’s economic prosperity in order to create an advanced economy and inclusive nation by 2020. • In line with this, national growth targets will include not only GDP growth and per capita income, but also household income and the Malaysian Wellbeing Index to assess the impact of economic growth on people’s wellbeing. 12

The Big Picture: GTH Blueprint 2. 0 SMART CITY FUTURISE CENTRE Ø INNOVATIONS Ø REGULATIONS Ø COMMERCIALIZATION Ø EFFICIENCY OF PUBLIC SERVICES Ø QUALITY OF LIFE & SAFETY Ø SUSTAINABLE FOR ENVIRONMENT LIVING LAB REGULATORY SANDBOX Ø Ø TALENT ACCELERATOR PILOT ENTERPRISE Ø CWS Ø SMART CITY PROGRAMS ROBOTICS MALAYSIA COINNOV 8 Ø TEST BED Ø RETAIL (F&B) Ø ARTS & CULTURE BOET GTH Sphere INFRA DEVT. Ø Ø GREEN BUILDINGS SOLAR PANELS SENSOR NETWORKS OPEN DATA PLATFORMS 13

FUTURISE Centre @ Cyberjaya An innovation and IP commercialization hub with facilities and programmes to strengthen Cyberjaya’s position as the Global Technology Hub 14

Industry Focus GTH Industry Focus FINANCIAL SERVICES HEALTHCARE TRANSPORTATION EDUCATION AGRICULTURE GOVT. & PUBLIC SERVICES AEROSPACE RETAIL & CONSUMER NANO TECH FUTURISE additional Industry Focus 15

Strategic Components of a Sustainable Ecosystem Technology focus; ICT, IOT, IR 4. 0. TECHNOLOGY § Community Focused Mentorship/Coaching Pitch Nights Weekly Events Investor Office Hours Alumni Networks Workshops 10 Technology Enablers PROGRAMMES INFRASTRUCTURE § § § § Innovation Labs Innovation Showcase Co Working Space Maker Lab Co ‐Secretarial Business Advisory Finance/Accounting Legal FUNDING § Cyberjaya Innovation Fund For The Future (CIFF) Robotics Lab Global Certification Prototype & IP Commercialisation COMMUNITY § § § Government Corporates Academia Entrepreneurs Citizen Marketplace for entrepreneurship, creativity and innovation training programs A startup builder aimed to help corporates design and develop their ideas into viable startups 16

Global Technology Hub Blueprint 2. 0 Support towards UN Sustainable Development Goals System Integration SD G Internet Of Things 50 GLOBAL TECH HUB Artificial Intelligence . 0 IR 4 HEA RMK Big Data Analytics Robotics TN Green Technology E CAR LTH Creative Content OM ON EC Y ET CI SO Cloud Computing Y Information Security Mobile Internet In support to global initiatives on sustainable development 17

Global Technology Hub Blueprint 2. 0 Support towards Transformasi Nasional 2050 SE & EN PU T BL AN IC System Integration VI CE S Robotics 50 . 0 IR 4 GLOBAL TECH HUB Artificial Intelligence Green Technology RETA Creative Content UMER TN E CAR Information Security CI SO Mobile Internet Y ET Cloud Computing Y LTH HEA RMK Big Data Analytics SE R CONS SD G Internet Of Things RO NM IL & IN VI OM ST FR A N FI L VT. ON RU CT I RV A CI EN GO EC UR E S CE EDUCATION 18

Global Technology Hub Blueprint 2. 0 Support towards IR 4. 0 VT. & G SD SE RV IC System Integration ES Robotics TN 50 GLOBAL TECH HUB Artificial Intelligence . 0 IR 4 HEA RMK Big Data Analytics NM EN T IC Internet Of Things RO PU BL N FI IN VI Green Technology E CAR RETA LTH Creative Content UMER AN I RV E S CONS FR A CI AL EN GO IL & ST RU CT UR E S CE OM ON EC Y ET CI SO Cloud Computing Y Information Security Mobile Internet EDUCATION 19

Global Technology Hub Blueprint 2. 0 Support towards Commerce Technology (DFTZ) VI VT. VI & EN PU T BL AN IC Robotics TN 50 . 0 Green Technology RETA Creative Content UMER IR 4 GLOBAL TECH HUB Artificial Intelligence E CAR CI SO Y ET Cloud Computing Y Information Security Mobile Internet OM LTH HEA RMK Big Data Analytics ES CONS SD G Internet Of Things SE RV IC System Integration IL & N FI RO NM ON L A CI R SE EN GO EC IN FR AS T RU CT UR E S CE EDUCATION 20

EN VI GO VT. & EN PU T BL AN IC Sytem Integration SD G Internet Of Things SE R VI CE S Robotics TN 50 GLOBAL TECH HUB Artificial Intelligence . 0 IR 4 HEA RMK Big Data Analytics RO NM Green Technology E CAR RETA LTH Creative Content CONS UMER N FI L A CI I RV E S S CE IL & IN F RA ST RU CT UR E Global Technology Hub Blueprint 2. 0 Support towards Rancangan Malaysia Ke-11 OM ON EC Y ET CI SO Cloud Computing Y Information Security Mobile Internet EDUCATION Align to support government initiatives based on related strategic thrust 21

Cyberjaya’s Smart City initiative National Regulatory Sandbox Mechanism allowing users to self‐ certify their eligibility for access Data sets of as wide and varied nature as feasible, including market, product and consumer transactional data provided data privacy standards are met Providing a dedicated communication, collaboration and feedback channel for each participant type Permissions for data access should be managed by the data provider Tools allowing understanding and transparency of how sandbox assets are being used Design Components Providing users with a set of domains specific artefacts, design patterns and terminology that describe successful operational architectures Connecting sandbox users with interested providers of professional service advice Allowing solutions tested in the sandbox to be easily and digitally accessible by observers anywhere Providing industry‐level assurance that solutions tested in the sandbox confirm to existing national or international industry standards, best practices defined by competent bodies 22

2 Cyberjaya’s Smart. City initiative Cyberjaya Smart 3 FUTURISE Centre’s Strategic Impact Commercialisation of Intellectual Properties Creation of Innovators Strategic Partner Creation of Intellectual Properties 23

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