OPENING SPEECH DELIVERED BY YAB DATUK SERI PANGLIMA MUSA AMAN,

CHIEF MINISTER OF SABAH AT THE SDC SEMINAR ON INVESTMENT OPPORTUNITIES IN KNOWLEDGE-INTENSIVE INDUSTRIES: PRODUCT INNOVATION DRIVEN BY TECHNOLOGY CONVERGENCE, HOTEL LE MERIDIEN,

4 MARCH 2010, 9.45 AM

I am honoured to deliver the opening speech for the SDC Seminar On Investment Opportunities In Knowledge-Intensive Industries: Product Innovation Driven By Technology Convergence. I would like to thank the organisers, the Sabah Economic Development and Investment Authority (SEDIA) which collaborated with the Institute for Development Studies (IDS) Sabah and the State Economic Planning Unit for putting together this important seminar.

Knowledge-intensive industries are driving the new economy in the era of globalisation, backed by rapid progress in technology, changing lifestyles and the push for sustainable development. This convergence offers Sabah a rare opportunity to transform its economy, leveraging on the state’s natural resources in a sustainable manner, as outlined in the Sabah Development Corridor (SDC) Blueprint. The SDC serves as a platform for the transformation process, and is guided by three principles: capturing higher value economic activities, promoting balanced economic growth with distribution, and attaining sustainable development via environmental conservation.

The introduction of the concept of One Malaysia: People First, Performance Now and concurrent with this, the move by the prime minister to shift the national economy towards a high income, innovation driven service-based economy have provided the much needed impetus for Sabah to make a quantum leap into a higher development trajectory via dovetailing its development initiative into the national agenda.

Among areas Sabah can explore are information and communication technology, agro-biotechnology, nano-technology, creative technology and green technology. The acquisition of technological competence in these fields is clearly pertinent and a precondition for Sabah together with the rest of the nation to carve new frontiers and build new competitiveness in order to attract investment.

I believe we recognise that the country, and Sabah in particular, can no longer afford to attract investors merely by relying on cheap labour. We need to shift towards an innovation driven, service-based economy powered by the creativity and talents of its human capital. Failure to shift towards the new economic model will bar us from making headway in national income growth in comparison to its real potential, and the nation may eventually lose its growth momentum and slide backwards. As the nation embarks on preparing for the Tenth Malaysia Plan, it is timely for us to take stock of past development performance and identify measures needed to enable us to shift towards a high income, innovation driven service-based economy.

I wish to assure you all that we in Sabah are aware of the need to shift gears to a high income, innovation driven service-based economy. The State Government has introduced various programmes to lay the foundation to enable the state to participate in knowledge-intensive sub-sectors. For example, we recognise the potential of biotechnology and acknowledge it is a catalyst for new growth areas in the state's economy as well as a source of new wealth and income for the people.

Biotechnology could also assist in enhancing the competitiveness of the agriculture, manufacturing and services sectors. In recognition of the potential of biotechnology, I am happy to note that the State Government through the Halatuju has highlighted the need to develop biotechnology capabilities. There is fertile environment for the development of new sources of growth such as agro-biopharmacy, bio-medicine, wellness and healthcare, renewable energy and eco-friendly products.

In order to add value to its rich biodiversity, Sabah needs a systematic programme that covers research, development and commercialisation. To cultivate the biotechnology sector, the State Government launched the Sabah Biotechnology Action Blueprint to provide a road map and policy framework for the sector. In support of this, the SDC Blueprint has laid out the necessary ingredients to catalyse the emergence of knowledge-based bio-industry in Sabah. The measures outlined under the SDC include the creation of an Agrobio Innovation Zone, the Sandakan and Interior Education Hubs, Palm Oil Industrial Clusters, Sabah Agro-Industrial Precinct and others.

The strong link between biotechnology and natural resources has allowed Sabah to host some important scientific research through government agencies and universities. On research concerning forest eco-system conservation, I am pleased to highlight that the Danum Valley Field Centre (DVFC) is recognised as one of the top three field centres in the world for tropical rainforest research.

Aside from Danum Valley, Sabah can also leverage other conservation areas such as Maliau Basin, Imbak Canyon and the islands off the coastline within the Coral Triangle to attract leading scientists and top talents to Sabah. Sabah is also actively involved in the Heart of Borneo project which seeks to manage and conserve the second largest contiguous forest landscape in the world by leveraging on trans-boundary collaboration of governments, engaging local interests in short- and long-term planning, and securing sustainable and long-term finance. Sabah is gaining global recognition as a leading location for conservation and tropical biodiversity research in the world.

We are confident these initiatives will contribute towards sustainable development via judicious usage of natural resources, conservation of biological resources and environmental protection. Conservation and research have also been a strong driving force for eco-tourism. The conservation and rehabilitation of the natural environment will enhance the value the state’s natural capital and our push for sustainable development.

I also like to highlight here that SEDIA has been implementing various measures under the SDC to lay the basic foundation in designated economic clusters as indicated earlier. I am happy to inform you that SDC projects under the Ninth Malaysia Plan are at various stages of implementation. We have also received good response from the private sector, especially from foreign investors on investment potentials within the SDC.

The convergence of technologies and increasing global awareness for sustainable development are providing the right pre-conditions for the state under SDC initiatives to leverage on the natural factor endowments. I believe there are tremendous opportunities to create new sources of economic growth from knowledge-intensive industries, especially in areas of chemical and pharmaceutical products; biomass and eco-friendly products; renewable energy and environmental services. Utilisation of biomass and turning agricultural wastes into products driven by innovation is another potential area Sabah could explore as new source of economic growth by applying appropriate green or zero waste technologies.

As the Chairman of SEDIA, I wish to take this opportunity to invite captains of industries, corporate leaders, entrepreneurs and researchers to work closely with the government to explore and initiate new ventures in the knowledge intensive industries in Sabah via the SDC initiative. As the one stop authority, SEDIA is your solutions provider and partner in SDC, and will assist with fast-tracking your ventures.

I believe speakers at this seminar will highlight the direction, policy measures and programmes lined up by the government and investment opportunities under the SDC to spawn the development of knowledge-intensive industries in Sabah.

I would like to take this opportunity to thank all speakers and participants for attending this seminar. On this note, ladies and gentlemen, it gives me great pleasure declare open the SDC Seminar On Investment Opportunities In Knowledge-Intensive Industries: Product Innovation Driven By Technology Convergence.

Thank you.