Annuar Bin Mohd Saffar

ROUNDTABLE SESSION:Innovative Potential of Moscow City“Kulim Technology Park (Malaysia) Development:Distinctive Features for Success”ByAnnuar Bin Mohd SaffarVice President (Industrial Development & Research), Kulim Tech ParkHonorary (Past) President, Asian Association of Business Incubation5 MARCH 2011

KHTP: Location (SE Asia Map)

KHTP Strategic LocationDistances to Transportation HubsAirport: 43 km/50 minsContainer Terminal: 26 km/30 minsRailway Station: 26 km/30 minsContainer TerminalUPEN VISIT, 2.1.12Penang Bridge2 nd Penang Bridge (under construction)

KHTP MasterplanUPEN VISIT, 2.1.12

Kulim Hi-Technology Park Profile• Development NameKulim Hi-Tech Park (KHTP)• Name of Management Company Name:Kulim Technology Park Corporation (KTPC)• Area SizeFrom 3600 (1996) to 4400 acres (present)UPEN VISIT, 2.1.12• Development Concept:- Development of Hinterland (remote area)- Integrated City (not just a Technology Park!)- Six (6) Zones- Industrial, Housing, Recreation, Education, Institutional, Urban• Year Established: 1996 (16 years ago)

Kulim Hi-Technology Park Achievement• Total FDI and DDI- USD 10 billion ,• Number of MNCs and Large Local Companies- 25 (investment between USD 200 mil to USD 1.5 billion)• Support, Associate and Incubatee Companies- 53UPEN VISIT, 2.1.12• Employment in Park- more than 26,000 people work or study in the park• Housing- more than 5000 units (>20,000 lives in the park• Impact on DistrictPopulation of Kulim District Doubled from 150,000 to 300,000

Industrial Tenants in KHTP

Support and Associate CompaniesD SBD-Mens Resources SB

ReinvestmentsInfineon Technologies:Re-investment = USD 1 billionTotal Investmentt = USD 2 billionUPEN VISIT, 2.1.12

Distinctive Features as Success Factors1. Physical Infrastructures:a. New 26-km Highway (Butterworth-Kulim Expressway)- Fast Transportation from KHTP to Seaportb. New 220 MW Independent Power Plant- Dedicated, Monopoly electricity supply regulated by Energy Commission- Reliable (99.999%), Quality Power (almost ZERO dips)- Semiconductor industry need HIGH QUALITY Powerc. New Water Treatment and 30 km Supply Line- Treatment Plant and water supply pipeline just for KHTP- Semiconductor industry needs ABUNDANT WaterUPEN VISIT, 2.1.122. “Modified” Local Authority for KHTPa. Only Two (2) such “special” Local Authorities in Malaysia (Total = 148)b. Acts and Laws were Modified.c. Fast Approval (less than 2 weeks).

Distinctive Features as Success Factors3. Focused Technologiesa. Semiconductor Wafer Fabrication industryb. Advanced Electronics (semiconductor downstream) industryc. Solar Photovoltaicd. Renewable Energye. Medical Devices and 7 other technologies4. Cluster Development ProgramsUPEN VISIT, 2.1.12- regular Supply Chain and Cluster Development Seminars- to attract foreign vendors for multinational companies (MNCS)5. Entrepreneur and Vendor Development Programs- Regular Innovation and Business Excellence Program- to groom local vendors for MNCs and large companies

Distinctive Features as Success Factors6. Business Incubation Programs- to nurture NEW START-UP Companies- Four (4) of these companies are at Hannover Messe 2012 !!!7. The Park is Expandable, Anytime- Agriculture Plantations next door can be acquired- Development within 5 km radius must obtain approval fromlocal authorityUPEN VISIT, 2.1.128. Support from Federal Ministry of Finance- Soft Loan, Interest-free loan for Land Acquisition- Grant for infrastructures (roads, pipelines, sewerage, treatment)- No Operation budget, must cover it from business activities.9. Type of Organization: For-Profit

15 Feb 2012