Chuping Valley Development Plan
2.6.6 Telecommunication
         Based on the meeting with Telekom Malaysia Berhad (TMB)
         Alor Setar, Kedah, the existing telecommunication
         infrastructure in Kangar, Perlis are as follows:-
         a) There is an existing TMB Exchange located in Padang
              Besar without High Speed Broadband (HSBB) Services.
              The nearest HSBB Exchange is located in Kangar. This
              exchange shall be upgraded by TMB to meet the demand
              from the customers.
2.6.7 Gas Supply
         a) Natural Gas Supply
                   The construction of Natural Gas Distribution System
                   (NGDS) in Lembah Chuping will be undertaken by Gas
                   Malaysia Berhad (Gas Malaysia), which was
                   established in 16 May 1992 to sell, market and
                   distribute gas as well as to construct, operate and main
                   the NGDS.
                   Gas Malaysia is the only company licensed under the
                   Gas Supply Act, 1993 by Suruhanjaya Tenaga (ST),
                   with the approval of the Ministry to supply and sell
                   reticulated natural gas in Malaysia.
                   The schedule and phasing of construction of
                   construction of Natural Gas Distribution Pipeworks in
                   the Lembah Chuping Development Area is based on
                   commercial considerations i.e. the investment of the
                   Natural Gas Distribution Pipeworks must be justified by
                   natural gas demand by the industries.
                   The Natural Gas Distribution Pipeworks will be laid
                   within the Utility Reserve along the roads in the
                   Lembah Chuping Development.
                   It is noted that even without the Natural Gas
                   Distribution Pipeworks, compressed natural gas (CNG)
                   can still be supplied by Gas Malaysia by tanker truck to
                   the industries in Lembah Chuping. In this case, the
                   consumer needs to install a bulk tank and the
                   associated facilities at his premise to receive and store
                   the compressed natural gas purchased.
         b) Industrial Gases
                   As heavy industries and chemical industries are not
                   targeted for Lembah Chuping, large demand of
                   industrial gases such as Nitrogen, Oxygen, Carbon
                   Dioxide, Hydrogen etc is not foreseen. Hence, there is
                   no justification for the development of infrastructure for
                   supplying industrial gases via piped distribution system
                   in Lembah Chuping.
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Chuping Valley Development Plan
For small demand, the industrial gases can be supplied
in bulk or in bottles (steel cylinders) via land
transportation from the supplier’s northern region
facilities. For bulk purchase of industrial gases, the
customer needs to install a bulk tank and associated
facility at his premise to receive and store each type of
industrial gas purchased.
             Figure 2.26: Gas Malaysia’s Supply Area
   Figure 2.27: Petronas Gas’s Infrastructure in Peninsular
                                Malaysia
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Chuping Valley Development Plan
                                                                                    Attachment A
           Environmental Quality (Industrial Effluent) Regulations 2009
                                         Fifth Schedule
Acceptable Conditions for Discharge of Industrial Effluent or Mixed Effluent of
                                      Standards A and B
           Parameter              Unit               Standard
                                   oC               AB
                                    -
     (i)   Temperature           mg/L         40 40
     (ii)  pH Value              mg/L
    (iii)  BOD5 at 20oC          mg/L         6.0 – 9.0 5.5 – 9.0
    (iv)   Suspended Solids      mg/L
     (v)   Mercury               mg/L         20 50
    (vi)   Cadmium               mg/L
   (vii)   Chromium, Hexavalent  mg/L         50 100
   (viii)  Chromium, Trivalent   mg/L
    (ix)   Arsenic               mg/L         0.005  0.05
     (x)   Cyanide               mg/L
    (xi)   Lead                  mg/L         0.01   0.02
   (xii)   Copper                mg/L
   (xiii)  Manganese             mg/L         0.05   0.05
  (xiv)    Nickel                mg/L
   (xv)    Tin                   mg/L         0.20   1.0
  (xvi)    Zinc                  mg/L
  (xvii)   Boron                 mg/L         0.05   0.10
 (xviii)   Iron (Fe)             mg/L
  (xix)    Silver                mg/L         0.05   0.10
   (xx)    Aluminium             mg/L
  (xxi)    Selenium              mg/L         0.10   0.5
  (xxii)   Barium                mg/L
 (xxiii)   Fluoride              mg/L         0.20   1.0
 (xxiv)    Formaldehyde          mg/L
  (xxv)    Phenol                mg/L         0.20   1.0
 (xxvi)    Free Chlorine         mg/L
(xxvii)    Sulphide              mg/L         0.20   1.0
(xxviii)   Oil and Grease        ADMI*
 (xxix)    Ammoniacal Nitrogen                0.20   1.0
  (xxx)    Colour
                                              2.0 2.0
                                              1.0 4.0
                                              1.0 5.0
                                              0.1 1.0
                                              10 15
                                              0.02   0.5
                                              1.0 2.0
                                              2.0 5.0
                                              1.0 2.0
                                              0.001  1.0
                                              1.0 2.0
                                              0.50   0.50
                                              1.0 10
                                              10 20
                                              100 200
*ADMI – American Dye Manufacturers Institute
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Chuping Valley Development Plan
                                                    Attachment B
Environmental Quality (Sewage) Regulations 2009
                     Second Schedule
Acceptable Conditions of Sewage Discharge of Standards A and B
(i) New Sewage Treatment System
                       Parameter         Unit          Standard
                                                    AB
(a) Temperature                           oC   40 40
(b) pH Value                               -   6.0 – 9.0 5.5 – 9.0
(c) BOD5 at 20oC                         mg/L  20 50
(d) COD                                  mg/L  120 200
(e) Suspended Solids                     mg/L  50 100
(f) Oil and Grease                       mg/L  5.0 10.0
(g) Ammoniacal Nitrogen (enclosed water  mg/L  5.0 5.0
      body)                              mg/L 10.0  20.0
(h) Ammoniacal Nitrogen (river)          mg/L 20.0  50.0
(i) Nitrate – Nitrogen (river)           mg/L 10.0  10.0
(j) Nitrate – Nitrogen (enclosed water
                                         mg/L 5.0   10.0
      body)
(k) Phosphorus (enclosed water body)
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Chuping Valley Development Plan
                                                                                    Attachment C
First Schedule of Environmental Quality (Scheduled Waste) Regulations
                                                2005
                                       FIRST SCHEDULE
                                          (Regulation 2)
SW 1 Metal and metal-bearing wastes
SW 101 Waste containing arsenic or its compound
SW 102 Waste of lead acid batteries in whole or crushed form
SW 103 Waste of batteries containing cadmium and nickel or mercury or
                lithium
SW 104 Dust, slag, dross or ash containing aluminium, arsenic, mercury,
                lead, cadmium, chromium, nickel, copper, vanadium, beryllium,
                antimony, tellurium, thallium or selenium excluding slag from iron
                and steel factory
SW 105 Galvanic sludges
SW 106 Residues from recovery of acid pickling liquor
SW 107 Slags from copper processing for further processing or refining
                containing arsenic, lead or
                cadmium
SW 108 Leaching residues from zinc processing in dust and sludges form
SW 109 Waste containing mercury or its compound
SW 110 Waste from electrical and electronic assemblies containing
                components such as accumulators, mercury-switches, glass from
                cathode-ray tubes and other activated glass or polychlorinated
                biphenylcapacitors, or contaminated with cadmium, mercury,
                lead, nickel, chromium, copper, lithium, silver,
                manganese or polychlorinated biphenyl
SW 2 Wastes containing principally inorganic constituents which may
contain metals and organic materials
SW 201 Asbestos wastes in sludges, dust or fibre forms
SW 202 Waste catalysts
SW 203 Immobilized scheduled wastes including chemically fixed,
                encapsulated, solidified or stabilized sludges
SW 204 Sludges containing one or several metals including chromium,
                copper, nickel, zinc, lead, cadmium, aluminium, tin, vanadium
                and beryllium
SW 205 Waste gypsum arising from chemical industry or power plant
SW 206 Spent inorganic acids
SW 207 Sludges containing fluoride
SW 3 Wastes containing principally organic constituents which may
contain metals and inorganic materials
SW 301 Spent organic acids with pH less or equal to 2 which are
                corrosive or hazardous
SW 302 Flux waste containing mixture of organic acids, solvents or
                compounds of ammonium chloride
SW 303 Adhesive or glue waste containing organic solvents excluding
                solid polymeric materials
SW 304 Press cake from pretreatment of glycerol soap lye
SW 305 Spent lubricating oil
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Chuping Valley Development Plan
SW 306  Spent hydraulic oil
SW 307  Spent mineral oil-water emulsion
SW 308  Oil tanker sludges
SW 309  Oil-water mixture such as ballast water
SW 310  Sludge from mineral oil storage tank
SW 311  Waste of oil or oily sludge
SW 312  Oily residue from automotive workshop, service station oil or
        grease interceptor
SW 313  Oil contaminated earth from re-refining of used lubricating oil
SW 314  Oil or sludge from oil refinery plant maintenance operation
SW 315  Tar or tarry residues from oil refinery or petrochemical plant
SW 316  Acid sludge
SW 317  Spent organometallic compounds including tetraethyl lead,
        tetramethyl lead and organotin compounds
SW 318  Waste, substances and articles containing or contaminated with
        polychlorinated biphenyls (PCB) or polychlorinated triphenyls
SW 319  (PCT)
        Waste of phenols or phenol compounds including chlorophenol in
SW 320  the form of liquids or sludges
SW 321  Waste containing formaldehyde
        Rubber or latex wastes or sludges containing organic solvents or
SW 322  heavy metals
SW 323  Waste of non-halogenated organic solvents
SW 324  Waste of halogenated organic solvents
        Waste of halogenated or unhalogenated non-aqueous distillation
SW 325  residues arising from organic solvents recovery process
        Uncured resin waste containing organic solvents or heavy metals
SW 326  including epoxy resin and phenolic resin
SW 327  Waste of organic phosphorus compound
        Waste of thermal fluids (heat transfer) such as ethylene glycol
SW 4 Wastes which may contain either inorganic or organic
constituents
SW 401 Spent alkalis containing heavy metals
SW 402 Spent alkalis with pH more or equal to 11.5 which are corrosive
                or hazardous
SW 403 Discarded drugs containing psychotropic substances or
                containing substances that are toxic, harmful, carcinogenic,
                mutagenic or teratogenic
SW 404 Pathogenic wastes, clinical wastes or quarantined materials
SW 405 Waste arising from the preparation and production of
                pharmaceutical product
SW 406 Clinker, slag and ashes from scheduled wastes incinerator
SW 407 Waste containing dioxins or furans
SW 408 Contaminated soil, debris or matter resulting from cleaning-up of
                a spill of chemical, mineral oil or scheduled wastes
SW 409 Disposed containers, bags or equipment contaminated with
                chemicals, pesticides, mineral oil or scheduled wastes
SW 410 Rags, plastics, papers or filters contaminated with scheduled
                wastes
SW 411 Spent activated carbon excluding carbon from the treatment of
                potable water and processes of the food industry and vitamin
                production
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Chuping Valley Development Plan
SW 412  Sludges containing cyanide
SW 413  Spent salt containing cyanide
SW 414  Spent aqueous alkaline solution containing cyanide
SW 415  Spent quenching oils containing cyanides
SW 416  Sludges of inks, paints, pigments, lacquer, dye or varnish
SW 417  Waste of inks, paints, pigments, lacquer, dye or varnish
SW 418  Discarded or off-specification inks, paints, pigments, lacquer, dye
        or varnish products containing organic solvent
SW 419  Spent di-isocyanates and residues of isocyanate compounds
        excluding solid polymeric material from foam manufacturing
SW 420  process
SW 421  Leachate from scheduled waste landfill
SW 422  A mixture of scheduled wastes
SW 423  A mixture of scheduled and non-scheduled wastes
        Spent processing solution, discarded photographic chemicals or
SW 424  discarded photographic Wastes
SW 425  Spent oxidizing agent
        Wastes from the production, formulation, trade or use of
SW 426  pesticides, herbicides or biocides
        Off-specification products from the production, formulation, trade
SW 427  or use of pesticides,
        herbicides or biocides
SW 428  Mineral sludges including calcium hydroxide sludges,
        phosphating sludges, calcium sulphite sludges and carbonates
SW 429  sludges
SW 430  Wastes from wood preserving operation using inorganic salts
SW 431  containing copper, chromium or arsenic of fluoride compounds or
SW 432  using compound containing chlorinated phenol or creosote
        Chemicals that are discarded or off-specification
        Obsolete laboratory chemicals
        Waste from manufacturing or processing or use of explosives
        Waste containing, consisting of or contaminated with peroxides
SW 5 Other wastes
SW 501 Any residues from treatment or recovery of scheduled wastes
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Chuping Valley Development Plan
                                                                                    Attachment D
  Contaminated Land Management and Control Guidelines No. 1: Malaysian
           Recommended Site Screening Levels for Contaminated Land
List of Industries or Site Usages that can Potentially Contaminate Subsurface
                                     Soil and Groundwater
1. Abrasive blasting
2. Acid or alkali plant
3. Agrichemical spray contractor
4. Agricultural land
5. Airport
6. Analysts – commercial analytical laboratory
7. Asbestos products
8. Asphalt or bitumen
9. Battery manufacturing or recycling
10. Brake lining manufacturer
11. Cement or lime manufacturing
12. Chemical manufacturing and storage
13. Coal and coke yard
14. Concrete and cement
15. Drum and tank re-conditioning
16. Electrical transformers
17. Electronics – manufacturing, repairing, reconditioning
18. Engine re-conditioning
19. Explosive production or bulk storage
20. Fertilizer manufacturing
21. Gasworks
22. Landfill site
23. Livestock dips or spray races
24. Metal surface treatment or coating
25. Mining and mineral processing
26. Motor vehicle workshop
27. Paint manufacturing and formulation
28. Pesticides formulation, packaging and/or distribution
29. Toxic and Hazardous waste storage, reuse, recycling, recovery, treatment
    and disposal
30. Herbicides formulation, packaging and/or distribution
31. Other agrichemical formulation, packaging and/or distribution
32. Petroleum industries
33. Pharmaceutical manufacturing
34. Port activities
35. Printing
36. Railway yard
37. Sawmill
38. Service station
39. Shipyard
40. Smelting or refining
41. Transport depot
42. Storage tanks for fuel and chemicals
43. Storage, reuse, recycling, recovery, treatment or disposal for wastes other
    than toxic and hazardous wastes.
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Chuping Valley Development Plan
44. Wood treatment or disposal
45. Wool, hide and skin production
46. Any site that has been, or could have been, subject to the migration of
    hazardous substances present in the soil or water on adjacent sites
47. Any other facility or activity that stores, uses or disposes of hazardous
    substances
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Chuping Valley Development Plan
SUMMARY
Lembah Chuping is a former sugar cane plantation, which is currently a
vacant land with some parts of the land have been planted with cash crops.
Rimba Mas Mas Forest Reserve is located to the north east near the
Thailand border. Based on Rancangan Tempatan Majlis Perbandaran
Kangar 2009-2020, Lembah Chuping has been zoned for mixed
developments.
The topography of Lembah Chuping is generally flat and undulating with
majority is between 0 - 39m above sea level. In terms of geology, there are
two distinct geological formations identified within the Lembah Chuping
namely, the Chuping Limestone and the Kubang Pasu formation. There are
existing trapezoidal earth drains at the both sides of this road which are
shallow and vegetated. There are two river systems which drain Lembah
Chuping i.e. Sg. Jarum & Sg. Jerneh.
Lembah Chuping Project site located within water catchment area for the
Timah Tasoh Dam. The site is virtually free from flooding except for a
portion to the north east. There is substantial amount of groundwater
present within the site.
The existing road connecting Lembah Chuping to surrounding areas is
Federal Route 79 (FR 79), which link Padang Besar to Ulu Pauh. Another
transportation asset for Perlis is the KTMB electrified double tracking railway
connecting Perlis to Penang Port and major cities such as Ipoh, Kuala
Lumpur and Johor Bahru.
Currently, there is no existing main water supply at Lembah Chuping. The
nearest reservoir to supply treated water to the Lembah Chuping site is from
Timah Tasoh water treatment plant. The current capacity of reservoir is not
sufficient for the additional water demand of the proposed Lembah Chuping
area.
In terms of sewerage system, there is no existing sewer lines and sewage
treatment plant (STP) in Lembah Chuping. The existing sludge treatment
facility is located at Wang Bintong, which is 47.6km from Lembah Chuping.
There is an existing 33kV overhead cable, which is located within the site
boundary from PMU Bukit Keteri and PMU Padang Besar. A part from that,
there are two (2) nos. existing 11kV overhead cables along the main road to
Padang Besar and also two (2) nos. existing 11kV substations which are
located near the main road to Padang Besar and near the existing lake
within the development area, respectively. These substations are
interconnected to each other by 11kV underground cables.
In term of telecommunication, there is an existing TMB Exchange located in
Padang Besar without High Speed Broadband (HSBB) Services. The
nearest HSBB Exchange is located in Kangar.
Currently, there is no gas pipeline available within Lembah Chuping area.
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Chuping Valley Development Plan
NEXT STEP
• Man-made ponds inside Lembah Chuping area will be converted to
     detention ponds for the future development.
• Some of the existing irrigation channels need to be maintained as part of
     the future drainage system.
• Existing water treatment plant and reservoir are required to be upgraded,
     and a new main trunk is required to be laid from the treatment plant /
     reservoir to the Lembah Chuping with an estimated length is about 15
     kilometres.
• A new trunk sewers, intermediate pump stations and new STP are
     required to be provided for this development. Space has to be allowed
     within the premises of the STP to accommodate the sludge treatment,
     sludge handling and storage facilities.
• Existing 33kV overhead cable will need to be relocated after the
     commissioning of the new 132/33kV PMU.
• Existing TMB exchange in Padang Besar needs to be upgraded by TMB
     to meet the demand from Lembah Chuping and to provide High Speed
     Broadband (HSBB) network with speed of up to 5 - 100 Mbps.
• Gas Malaysia need to provide the Natural Gas Distribution Pipelines in
     the Lembah Chuping to cater for the expected demand.
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Chuping Valley Development Plan
3.0 BENCHMARKING
                  ANALYSIS
Chuping Valley Development Plan
3.0 BENCHMARKING ANALYSIS
3.1 Introduction to Benchmarking Analysis
         Benchmarking analysis is one of the key techniques used in a
         strategic study to evaluate the competitive position of an entity against
         its peers. These insights, based on qualitative and quantitative
         analysis, will be used as part of the decision-making process to
         enhance the industrial park’s competitiveness. It is imperative for this
         activity to be conducted in order to identify the good practices for
         Lembah Chuping to emulate in for its future development.
3.2 Benchmarking Methodology
         Our benchmarking methodology involves developing parameters and
         criteria for evaluation, identifying reliable sources of information,
         collecting and analysing the information on the selected model parks
         respectively:
 Develop    •Internal Factor    Identify   • Primary Data       Data    • Case Study Review   Analysis of  • Critical Success Factor
Parameter   •External Factor   Source of   • Secondary Data  Gathering  • Desktop Research        Park     • Benchmark
                              Information
    and                                                                                      Performance     Observation
  Criteria
                              Figure 3.1: Benchmarking Methodology
            Step 1: Develop Evaluation Parameters and Criteria
            The model parks parameters are developed based on our examination
            of internal and external factors that may influence a park’s success.
            Internal factors are elements within the park’s control whereas
            external factors are elements beyond the park’s control. Each
            parameter will then be broken down to its constituent criteria that are
            central to each parameter.
            Step 2: Identify Sources of Information
            Dependable and up-to-date sources for primary and secondary data
            are identified to provide information relevant to the parameters and
            criteria that have been developed.
            Step 3: Data Gathering
            Once the parameters and criteria as well as sources of information
            have been identified, the following action is to gather and filter the
            relevant data and information for the analysis of each model park.
            Step 4: Analysis of Park Performance
            Comparative analysis of each model park will be conducted according
            to the selected parameters and criteria to identify critical success
            factors and good practices that are suitable for Lembah Chuping to
            emulate. Detailed analysis will be further elaborated in this report.
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Chuping Valley Development Plan
3.3 Introduction to the Model Parks
         The Five (5) model parks that have been selected for the
         benchmarking analysis are as follows:
                  Figure 3.2: Five (5) Selected Model Parks
3.3.1 Profiling of Model Parks
         Subsequently, details of each park (data as of 2014) such as
         origin country, total land size, annual turnover, number of
         resident companies and R&D centres, total employment, main
         sectors involved and rationale for its selection are provided as
         follow:
Total Land Size: Not Available                                                        Total Land Size: 3,316 acres
Annual Turnover: Euro 10.2 billion                                                    Annual Turnover: NT$1.1125 trillion
Resident Companies: 170                                                               Resident Companies: 481
R&D Centre: 4                                                                         R&D Centre: 7
Total Employment: 32,000                                                              Total Employment: 148,608
Main Sectors:                                                                         M ain Sectors:
Solar  Green  Waste Water                                                             Bio-tech        Telco
Farm   Tech    Treat ment
       Total Land Size: 4,000 Acres                  Total Land Size: 700 acres       Total Land Size: 158 acres
       Annual Turnover: Not Available                Annual Turnover: Not available   Annual Turnover: Not available
       Resident Companies: 60                        Resident Companies: 25           Resident Companies: 380
       R&D Centre: 4                                 R&D Centre: 1                    R&D Centre: 10
       Total Employment: 20,000                      Total Employment: Not Available  Total Employment: 9,000
       M ain Sectors:                                M ain Sectors:                   Main Sectors:
       High-Tech                    Telco  Bio-tech                                   Biomedical ICT      Food
       industries                                                                                     technology
                                                     ICT Bio-tech
              Figure 3.3: Profile of Each Selected Model Park
3.3.2 Rationale for Model Parks Selection
         The rationales for five (5) model parks selection, which include
         the unique characteristics for each park are provided below:
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Chuping Valley Development Plan
                                Techpark @ Enstek
   i. Strong Presence of Halal Industries
         • Techpark has attracted a total investment of RM 2.41 billion to the
              park in 2013, which is the 2nd highest investment among all Halal
              Parks in Malaysia after Selangor Halal Hub with a total investment
              of RM 2.45 billion in 20131.
         • Techpark was accredited with the HALMAS2 status in 20103.
         • Techpark has the largest number of halal pharmaceutical
              companies among all halal parks in Malaysia (six (6) in total).
  ii. Largest Biotechnology Cluster in Malaysia
         • Techpark houses the largest biotechnology cluster in Malaysia4,
              incorporating agriculture and life science research, development
              and innovation, pharmaceuticals and development and
              manufacturing of related specialised equipment5.
         • Examples of biotechnology companies involved in R&D initiatives
              in the park are:
                        Figure 3.4: Example of Companies with respective R&D initiatives6
 iii. Adoption of Green Technology Usage Policy
         • Implements the policy of maintaining green technology usage
              within its surroundings.
         Techpark inculcates a culture of environmental protection where
         residents will have to satisfy the criteria of zero or low green house
         gas emission. The resident industries are strongly encouraged to
         conserve the use of energy and opt for renewable energy resources in
         their businesses7.
Source: Techpark@Enstek
1 Halal Development Corporation – Halal Parks Investment Value
2 HALMAS - An accreditation given to Halal Park for meeting the model Halal Park standards.
3 Technology hub Techpark@Enstek receives HALMAS certification;
  http://techpark.enstek.com/index.php?option=com_content&view=article&id=77:technology-hub-
 techparkenstek-
  receives-halmas-certification&catid=51:june
4 Techpark@Enstek Awarded HALMAS Certification;
  http://www.hdcglobal.com/upload-web/cms-editor-files/06a9234b-5937-4e73-8cef-
 ff3fe2a2ac96/file/209.pdf
5 World Report, Hi-tech park is a magnet for biotech companies, http://www.worldreport-
 ind.com/malaysia2/hitechpark.htm
6 Techpark@Enstek – E – Brochure;
  http://www.techpark.enstek.com/index.php?option=com_content&view=article&id=59&Itemid=69
7 Techpark@Enstek - “The Dawning era of Creativity in Green Technology”;
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Chuping Valley Development Plan
                    Kulim Hi - Tech Park
i. Strong Focus on Solar Industry
      • There are tenant companies which are involved in diferrent
           activities within the solar energy industry. Some of these
           companies produce parts required which are used in the industry.
           In addition, there is also a tenant company which harvests solar
           energy for use in the park.
             Table 3.1: Type of Business Involved in Solar Industry
Companies / Agency     Types of Businesses Involved in Solar
                       Industry
Silterra Malaysia and  Fabricate solar wafer in the park.
Infineon Technologies
Von Ardenne            Supplies plasma and provides expertise in
                       electron beam and thin-film technologies for PV.
Panasonic              Operates as a vertically integrated solar
                       manufacturer, producing products ranging from
                       solar wafers to solar cells and modules.
First Solar            Operates a 160-acre solar farm in the park
                       capable to produce approximately 1.5 Gigawatt
                       of electricity annually8.
SIRIM                  Sets national standards for solar products,
                       which would help to maintain safety and
                       competitiveness of Malaysian products in the
                       international markets9.
ii. Resilient Government Support
KHTP has been receiving support from government agencies, namely
the Malaysian Investment Development Authority (MIDA), Northern
Corridor Implementation Authority (NCIA) and the Kedah Investment
Centre (KIC).
                             KIC
                                   Kedah Investment
                                          Centre
             MIDA                                    NCIA
             Malaysian Investment                    Northern Corridor
                  Development                         Implementation
                     Authority
                                                          Authority
                                   KHTP
                                   Kulim High Tech
                                           Park
           Figure 3.5: Support Provided to KHTP by Government Agencies
8 Malaysian Investment Development Authority – First Solar Invests in new Test Site;
 www.mida.gov.my/home/2263/news/first-solar-invests-in-new-test-site-/
9 Economic Transformation Programme – Chapter 11: Revitalising the Electronics and Electrical Sector;
 http://etp.pemandu.gov.my/upload/etp_handbook_chapter_11_electronics_and_electrical.pdf
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Chuping Valley Development Plan
         MIDA has been consistently promoting the park at the international
         level through its trade missions by providing information to potential
         investors on the available opportunities in Malaysia.
         Additionally, NCIA is dedicated to promote and drive the development
         of the Northern Corridor Economic Region into a world class
         economic area.
         KIC serves to stimulate investment by encouraging industrialization
         and other trades and services, and facilitates the activities of both
         foreign and local investors in the state of Kedah.
 iii. Presence of Institutions of Higher Learning at Surrounding Areas
         • Existence of nearby universities and technical institutes (e.g.
              Universiti Sains Malaysia, Universiti Utara Malaysia and Politeknik
              Tunku Sultanah Bahiyah) in the vicinity of park provide tenants
              companies access to talent pool.
Source: Kulim Hi - Tech Park
                             Eco World Styria
   i. One of the Global Forerunners in Green Industries
         • Companies in Eco World Styria have involved in Green industries-
              related projects at international level (e.g. the world’s biggest solar
              thermal plant in Saudi Arabia, the European Union “Renewable
              Energy House” in Brussels which is equipped with Styrian biomass
              and solar solutions, and the 2008 Olympic Village in Beijing which
              is equipped with solar heating technology from the park) 10.
         • Its high level of maturity in Green industries would be a good role
              model to other aspiring players in such industries. Since the
              beginning of the 1980s, Green energy usage in Styria has
              constantly surpassed 20 percent of all energy sources, and is
              expected to rise to 85 percent by year 202011.
  ii. Comprehensive Green Technology Cluster
         The existing green technology cluster in Eco World Styria is presented
         as follows:
                            - This space intentionally left blank -
10 Green Tech Valley – Green Building;
   http://www.eco.at/cms/1361/Green_Building//
11 Invest in Austria – Environmental Technologies
 http://investinaustria.at/EN/Home/Sectors/Environmental%20Technologies/Environmental+Technologies.
 aspx
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                                  Solar Energy
                                  • Solar energy companies in Eco World Styria have been developing
                                    solutions for the use of solar energy since the 1970s.
                                  • Solar technologies such as solar heat processing, solar thermal storage
                                    and solar pow ered cooling devices are produced by solar companies in
                                    the park
                                Biomass, biogas and biodiesel
                                • Eco World Styria’s leading position in the w orldw ide bio-energy scene
                                 w as built from decades of experience in processing biogenic raw
                                 materials, converting biomass into heat, pow er and biogas in the
                                 industrial and commercial areas as w ell as generation of biodiesel
                                 technologies using w astes.
                                  M aterial Flow M anagement
                                  • Austria has a recycling rate of more than 70% , w hich is the one of the
                                   highest as compared to other industrialised countries.
                                  • Eco World Styria has the facilities for fuel extraction f rom w aste, w hich
                                   is used for heat and pow er generation purposes to help in minimising
                                   pollution. M oreover, the tenant companies have the expertise in
                                   shredding and composting bio-w aste and glass recycling.
                               Waste and Waste Water
                               • As Styria is located in the Alpine region Importance has been placed by
                                tenant companies tow ards w astewater management and sewerage
                                sludge treatment in order to preserve the quality of w ater resources in
                                Styria.
                            Energy Efficient
                            • The state of Styria has established standards for smart energy
                             solutions through the establishment of its flagship project called Smart
                             City Graz. M easures to save energy, costs and resources as well as to
                             increase energy efficiency among companies have been developed.
                   Figure 3.6: Green Technology Cluster in Eco World Styria
 iii. Extensive R&D effort
         • Research initiatives carried out in the park cover industries such
              as life sciences, environmental and energy, information and
              communication technologies (ICT).
         • Austria has achieved the Research & Development expenditure to
              Gross Domestic Product (R&D/GDP) ratio of 2.84 in 2012, which
              was significantly higher than the European Union (EU) average
              ratio of 2.0612. The expenditure level of R&D sector in Eco World
              Styria itself has reached 4.7% of Austria’s GDP, which was the
              second highest in Europe and was also above the Treaty of
              Lisbon’s goal of 3% for 201013.
Source: Eco World Styria
12 Gross Domestic Expenditure on R&D, 2001 – 2012 (% of GDP);
   http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/File:Gross_domestic_expenditure_on_R%26D,
   2002%E2%80%9312_%28%25_of_GDP%29_YB14.png
13 Eco World Styria – Facts Regarding the No.1 Environmental Technology Location – Styria;
   http://www.eco.at/cms/913/Facts%20about%20ECO/
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                             Singapore Science Park
   i. Conducive Business Environment
         • Singapore is one of the most business-friendly countries in the
              world14 based on the following factors:-
              a. Government intervention in businesses is kept low;
              b. It has stable institutions with transparent government policy
                   making processes and efficient legal framework for settling
                   disputes; and
              c. It has strong and clear laws for investor protection including
                   that for property rights and intellectual property.
   ii. Effective Usage of Limited Land Size
         • With a land area of merely 718.3 km and a population of 5.4
              million people15, Singapore is the second densest country in the
              world after Monaco. Owing to the limited availability of land,
              effective land usage has been one of the main considerations in
              the operations of most industries in Singapore.
         • For example, the stack-up factory development was first
              introduced and built by Jurong Town Corporation (JTC) in year
              2000 at Woodlands, Singapore. The revolutionary idea of stacking
              the traditional factories on top of each other optimises land use
              and at the same time is able to accommodate more people and
              inventories16. Hence, it would be worthwhile to explore some good
              practices of Singaporean industries for ideas on effective land
              use.
                             Figure 3.7: Stack-Up Factory in Singapore
             Due to land constraints, stack-up factory development was first introduced
             and built by Jurong Town Corporation (JTC) in year 2000 at Woodlands,
             Singapore. The revolutionary idea of stacking the traditional factories on
             top of each other optimises land use and at the same time is able to
             accommodate more people and inventories.
14 Future Ready Singapore – Facts and Ranking: Competitiveness and Business Environment;
   http://www.edb.gov.sg/content/edb/en/why-singapore/about-singapore/facts-and-rankings/rankings.html
15 World Bank - Population, Total;
   http://data.worldbank.org/indicator/SP.POP.TOTL
16 JTC awards for the first time stack-up factory development to private developers;
   http://www.jtc.gov.sg/News/Press-Releases/Pages/20080602%28PR%29.aspx
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Chuping Valley Development Plan
 iii. Availability of Skilled Employees
         • It is closely connected to the National University of Singapore
              (NUS)17, which is one of the world’s top universities. As such, the
              park is supported by the availability of a pool of potential skilled
              employees to meet the talent demand created by its resident
              industries.
         • The competitive wages offered by tenant companies is also a
              factor in attracting well educated and highly skilled employees to
              work in the park.
 iv. Strong Park Management Support
         • The park has also established partnerships with other industrial
                and technology parks with similar visions and missions (such as
                the Sophia Antipolis Science Park in France, the Heidelberg
                Technology Park in Germany, and the Technopolis in Finland) in
                order to facilitate the growth of industries in the park18. These
                partnerships have induced networking opportunities to tenant
                companies for potential synergistic collaborations.
Source: Singapore Science Park
                   Hsinchu Science and Industrial Park
   i. Attractive Incentives and Benefit.
         • Taiwan offers attractive tax benefits and incentives to businesses
              for increasing their investments in the island. For investors’
              benefit, tax reforms have been initiated in recent years to lower
              rates and to simplify the taxation system.
         • As an effort to attract more foreign investments into Taiwan,
              foreign investors are accorded with same benefits and rights as
              local investors to promote equality.
  ii. Comprehensive High-Technology Manufacturing Cluster
         • Taiwan has achieved global high-technology industry records by
              generating annual revenue of more than USD 40 billion over the
              past five years from 2009 to 201319.
          • As of 2013, more than 70% of the global IT products have been
              manufactured by companies in this park20, which include
              integrated circuits, semiconductors, LCD panels, computers and
              peripherals, optoelectronic devices, telecommunications
              equipment, and precision machinery.
17 Singapore Science Park – Location Map;
   http://sciencepark.com.sg/location.html
18 Singapore Science Park – Our Partners;
   http://www.sciencepark.com.sg/ourpartners.html
19 World Economic Forum – Repository of Talent Mobility Good Practices in Hsinchu Science Park;
   http://www.weforum.org/best-practices/talent-mobility/hsinchu-science-park
20 An Introduction to Hsinchu Science Park;
   http://www.sipa.gov.tw/english/home.jsp?serno=201003210015&mserno=201003210003&menudata=En
   glishMenu&contlink=content/introduction_2_1.jsp&level3=Y&serno3=201003210021
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Chuping Valley Development Plan
 iii. Growing Focus towards Biotechnology Sector
         • The park houses firms in the biotechnology industries focusing on
              areas like pharmaceuticals and high-end medical equipment
              manufacturing21. Furthermore, industries are encouraged to
              integrate the advantages of ICT design and manufacturing
              activities in the park together with biomedical sector to promote
              new biomedical technology development in Taiwan22.
 iv. Presence of R&D Initiatives
         • The presence of R&D initiatives have contributed to the
              development of the park. Given its close proximity to academic
              institutions such as the National Chiao Tung University, the
              National Tsing Hua University and the Industrial Technology
              Research Institute, the park has collaborated with these
              institutions and other parks to establish a “Biotechnology
              Development Belt” led by the National Health Research Institute
              for biotechnology research purposes.
Source: Hsinchu Science and Industrial Park
         Limitations
         Although using other model parks as comparisons is an useful method
         for formulating strategies for the development of Lembah Chuping, it
         must be noted that there are inherent limitations to the approach
         which compares industrial parks directly to one another based on a
         set of preselected indicators.
         For instance, data comparability can be influenced by major disparities
         in the geographical size of the industrial parks compared. Besides
         that, the availability, or lack thereof, of reliable consistent datasets
         across cities can prove to be a challenge. In addition, various
         considerations would need to be taken into account based on the
         unique identities of industrial parks to avoid inequitable comparisons.
         Therefore, a careful deliberation of these elements has been
         paramount in performing the benchmarking analysis addressed in
         subsection 2.5.
3.4 Introduction to Evaluation Parameters
         Six (6) parameters have been identified for the selection of model
         industrial parks in this benchmarking exercise. These parameters will
         serve as the basis in identifying the recommended practices adopted
         by these parks which could serve as learning points in planning for
         Lembah Chuping. Each parameter is elaborated as follow:
         i. Infrastructure Completeness
              The infrastructure completeness within and around the industrial
              park is vital to create an environment that would attract businesses
              to establish themselves in the proposed park. Hence, in selecting
              a suitable comparison for benchmarking, the selected park and its
21 Government Entry Point – Science Parks;
   http://www.taiwan.gov.tw/ct.asp?xItem=27510&ctNode=1906&mp=1001
22 Hsinchu Biomedical Science Park;
   http://www.hbmsp.sipa.gov.tw/BIOWEB/indexE.htm
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                                                                      Page 3-9
Chuping Valley Development Plan
    surroundings would need to have the necessary infrastructure for
    transportation, telecommunications and internet, electricity, water
    supply, and waste management in place for its occupants.
ii. Institutions of Higher Learning and R&D Initiatives
    In selecting the model parks, the presence of institutions of higher
    learning in nearby areas will be assessed. The greater the
    availability of such institutions with relevant courses, the greater
    the opportunities for investors to gain access to the relevant
    subject matter experts who could provide technical guidance
    and/or collaboration opportunities in developing the industry. The
    proximity of abundant talent pools would be highly beneficial for
    businesses with skilled labour requirements. Subsequently,
    another key evaluation criterion for park selection is the extent of
    R&D initiatives carried out in these model parks with, ideally,
    extensive collaborations between businesses and research
    institutions particularly for high value-adding industries in the green
    and biotechnology sectors.
iii. Attracting Skilled Labours
    The selection of industrial parks also needs to consider their ability
    in attracting skilled labour from other places to these parks through
    initiatives such as incentives made available to expatriates. The
    initiatives implemented by these selected parks will be evaluated
    for their practicability in the context of Lembah Chuping.
iv. Park Operating Model
    The benchmarking assessment takes into account the provision of
    strong and dedicated support from a competent park management
    to its tenants. The support given could be in the form of incentives,
    prompt action taken to resolve issues faced by tenants, as well as
    putting in place specific infrastructure dedicated to tenants
    operating in highly technical industries such as biotechnology and
    pharmaceutical. Adding to those mentioned, account is also taken
    of activities for instances, business advisory and networking
    opportunities support for start-up companies carried out by the
    park management to lure potential investors.
v. Business Environment
    The business environment that a company operates in can alter
    and affect the growth and expansion of that company as different
    countries will have their own distinct business environment as a
    result of their respective regulations, legal framework, economic
    policies, financial and institutional systems in place.
vi. Incentives and benefits
    The incentives and benefits offered to the businesses operating in
    the model parks will be compared against one another to identify
    suitable incentives and benefits for the development of Lembah
    Chuping. These incentives and benefits would include tax
    incentives, financial aid such as low or interest-free loans and
    grants etc that could be considered as probable incentives to draw
    potential investors to Lembah Chuping.
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Chuping Valley Development Plan
3.5 Analysis and Ratings for Model Parks
A detailed analysis based on the identified six (6) parameters will be
conducted for each model park. The perceived ratings (from a scale of
1 to 5) of the selected model parks based on each parameter as well
as the key drivers and features that position these parks as thriving
setups will be provided. The description for each rating is provided as
follow:
Ratings    Descriptions
1 Poor
2 Fair
3 Good
4 Very Good
5 Excellent
Figure 3.8: Ratings and Descriptions
i. Infrastructure Completeness
    Infrastructure completeness is one of the key drivers in luring
    potential businesses to establish operations in Lembah Chuping.
    Basic amenities within and/or nearby each model park, such as
    the availability and proximity to import and export facilities,
    comprehensive road connectivity, high speed broadband network,
    power supply, water treatment plant, and specialised waste
    management facilities will be evaluated. The table below sets out
    the aforementioned infrastructures in each model park:
Eco World  KHTP                                 SSP
           5
           4
           3
           2
           1
           0
Techpark                                  HSIP
Figure 3.9: Model Park Ratings for Infrastructure Completeness
- This space intentionally left blank
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Chuping Valley Development Plan
                                          Key Findings
Proximity to Import and Export Facilities
Table 3.2: Proximity of Model Parks to Import and Export Facilities
            Proximity between Model Parks and Import and Export Facilities
(a) Model Parks         (b) Nearest International Airport   Distance between (a) & (b)
Techpark @ Enstek       Kuala Lumpur International Airport  Approximately 22 km
Kulim Hi-Tech Park      Bayan Lepas International Airport   Approximately 50 km
Singapore Science Park  Changi International Airport        Approximately 28 km
Eco World Styria        Graz International Airport          Approximately 13 km
Hsinchu Science and     Taoyuan International Airport       Approximately 58 km
    Indsutrial Park
Source: KPMG Analysis
Based on our findings, all five (5) industrial parks are located substantially
close to the import and export facilities (in the form of an international airport).
The closer the proximity between parks and the import and export facilities,
the greater the convenience for the transportation of goods to be carried out.
Furthermore, closer proximity to the airport could also help businesses in
reducing underlying supply chain management risks level in terms of costs
and lead time for the movement of goods.
As such, constant improvement efforts to be carried out on the connectivity
between Lembah Chuping and existing and future import and export facilities
will be beneficial for the future businesses in Lembah Chuping.
                        - This space intentionally left blank -
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                                          Key Findings
Accessibility between Model Parks and Major/ Satellite Cities
           Table 3.3: Proximity between Model Parks and Major/Satellite Cities
                    Proximity between Model Parks and Major/ Satellite Cities
(a) Model Parks          (b) Nearest Major/ Satellite Cities  Distance between (a) & (b)
Techpark @ Enstek                    Sepang, Selangor         Approximately 9 km
                              Seremban, Negeri Sembilan       Approximately 27 km
                            Port Dickson, Negeri Sembilan     Approximately 35 km
                         Wilayah Persekutuan Kuala Lumpur     Approximately 70 km
                         Butterworth, Pulau Pinang            Approximately 20 km
Kulim Hi-Tech Park       Bukit Mertajam, Pulau Pinang         Approximately 28 km
                         Simpang Empat, Pulau Pinang          Approximately 28 km
                         Danga Bay, Johor                     Approximately 29 km
Singapore Science Park   Johor Bahru, Johor                   Approximately 33 km
                         Nusajaya, Johor                      Approximately 50 km
Eco World Styria          Graz City                            Approximately 5 km
                         Vienna City                          Approximately 210 km
    Hsinchu Science and  Hsinchu City                         Approximately 6 km
        Indsutrial Park   Taipei City                         Approximately 80 km
Source: KPMG Analysis
Based on the figure above, all five (5) model parks are located substantially
close to the nearby major/satellite cities. On top of that, the presence of
comprehensive road connectivity has helped in providing traveling
convenience for visitors and employees of these model parks. Such great
accessibility between both locations has also created a pull factor in attracting
potential businesses to establish operations in the parks. Thus, a
comprehensive road network is necessary to connect Lembah Chuping with
the surrounding major/satellite cities.
                        - This space intentionally left blank -
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Chuping Valley Development Plan
                                          Key Findings
High Speed Broadband Network
                                                  Average Connection Bandwidth to Internet Users
                      10 9.4
                                                                                                                                            8.9
                       9 8.4
                       8
Connection Bandwidth  7                                              + 247%
                      6 + 208%                                                                                                                   + 218%
                      5                                                                                                                              World
                                                                                                                                                 Average: 3.9
                      4 3.5
                                                    - 8%
                      3
                      2
                      1
                      0
                         Malaysia (Techpark & KHTP) Singapore (SSP)  Austria (Eco World)  Taiwan (HSIP)
                      Source: Akamai Technologies – State of Internet Ranking 2014
                      Figure 3.10: Average Connection Bandwidth to Internet Users in Each Country
Based on the “State of the Internet” report published by Akamai Technologies
in 201423, the average connection bandwidth speed for internet users in
Austria (9.4 Mbps), Taiwan (8.9 Mbps) and Singapore (8.4 Mbps) have
exceeded the world average internet connection speed of 3.9 Mbps.
Conversely, the average internet connection speed in Malaysia (3.5 Mbps)
falls below the said world average connection speed.
A high speed broadband network with stable bandwidth is a necessity as it
connects businesses and individuals in the parks to the global marketplace
with the ease of information exchange, hence increasing overall productivity
through a reduction of lead time and costs. Hence, in spite of the potential
incurrence of high costs in terms of broadband network and bandwidth
upgrading work, it is vital for Lembah Chuping to establish a comprehensive
high speed broadband network with stable bandwidths in order to cater to the
future demand from its tenant businesses.
                         - This space intentionally left blank -
23 Akamai Technologies – Akamai’s State of the Internet;
   http://www.akamai.com/dl/akamai/akamai-soti-q114.pdf?WT.mc_id=soti_Q114
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Chuping Valley Development Plan
                                          Key Findings
Proximity Between Model Parks and Nearby Power Plant
          Table 3.4: Proximity between Model Parks and Nearby Power Plan t24
                                        Proximity between Model Parks and Nearby Power Plant
    Model Parks                       Proximity between Model Availability of Independent Power
Techpark @ Enstek
                                      Parks and Nearby Power Plant  Plant inside the Model Park
                                      Approximately 13.8 km         x
                  Kulim Hi-Tech Park  Approximately 44.1 km         √
                                      Approximately 7.8 km          x
                  Singapore Science   Approximately 39.6 km         √
                           Park       Approximately 79.8 km         √
                   Eco World Styria
                Hsinchu Science and
                     Indsutrial Park
Source: KPMG Analysis
Based on the above, the distances between two (2) respective model parks,
i.e. Techpark@Enstek and Singapore Science Park and their corresponding
nearby power plant are considered to be substantially close when compared
to the rest of the other parks.
Assessing the case of Kulim Hi-Tech Park, Eco World Styria and Hsinchu
Science and Industrial Park, the nearby power plants are located quite some
distance away from these industrial parks. As such, this could potentially
disrupt the stability of power supply from the power grid to the parks, which
could be costly to businesses due to the unforeseen hindrance to their
operations processes. Due to that, dedicated power plants have been built in
these parks in order to mitigate the underlying risks of power supply
disruption.
Apart from relying on the electricity supply from the nearby power plant,
consideration should be given to the setting up of a power plant within
Lembah Chuping itself to provide stable and reliable power supply to the park.
                            - This space intentionally left blank -
24 Availability of Independent Power Plant in Kulim Hi – Tech Park;
   http://www.minconsult.com/div_6_p1.html
   Availability of Independent Power Plant in Eco World Styria;
   http://www.eco.at/cms/847//Energy_Efficiency_and_more/
   Availability of Independent Power Plant in Hsinchu Science and Indutrial Park;
   http://www.deltapowersolutions.com/en/mcis/success-stories-delta-mcis-ups-protected-high-tech-
   manufacturing-in-taiwans-hsinchu-science-park-during-power-
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Chuping Valley Development Plan
                                          Key Findings
Proximity between Model Parks and Water Treatment Plant
         Table 3.5: Proximity between Model Parks and Water Treatment Plant25
                      Proximity between Model Parks and Nearby Water Treatment Plant
Model Parks                Proximity between Model Parks Availability of Water Treatment
                         and Nearby Water Treatment Plant Plant inside the Model Park
    Techpark @ Enstek    Approximately 76.6 km                    x
                         Approximately 26.9 km                    x
     Kulim Hi-Tech Park  Approximately 10.1 km                    x
                         Approximately 7.9 km                     √
 Singapore Science Park  Approximately 5.9 km                     x
      Eco World Styria
   Hsinchu Science and
        Industrial Park
Source: KPMG Analysis
The availability of a water treatment plant near to the park is as equally
important as having a stable and consistent water supply for industrial use.
Based on the figure above, the respective distance to a water treatment plant
from the four (4) model parks are considered to be relatively close. Even more
so, there is an independent water treatment plant located in Eco World Styria
that serves to meet the demand for water from businesses in the park.
In the case of Lembah Chuping, it is advisable to have an independent water
treatment plant at the surrounding areas to recycle waste water into clean
water for industrial use due to the underlying risks of water shortage caused
by the low water pressure in Timah Tasoh Dam.
                         - This space intentionally left blank -
25 Availability of Water Treatment Plant in Eco World Styria;
   http://www.eco.at/cms/847//Energy_Efficiency_and_more/
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Chuping Valley Development Plan
                                          Key Findings
Availability of Specialised Waste Management Facilities in the Model
Parks
Table 3.6: Availability of Specialised Waste Management Facilities in the Model
Park26
Availability of Specialised Waste Management Recycling Facilities
                                  in the Model Parks
Model Parks             Types of Specialised Waste Management
                         Recycling Facilities in Each Model Park
   Techpark @ Enstek                              N/A
   Kulim Hi-Tech Park
                           TCM (Total Chemical Management);
Singapore Science Park              UltraPure Water (UPW)
     Eco World Styria         SEMBCROP (Onsite Solid Waste
  Hsinchu Science and                      Management)
      Industrial Park   Fuel extraction from Waste Shredding and
                           composting bio-waste glass recycling
                                                  N/A
Establishing waste management recycling facilities could not only help in
converting recyclable waste into a new product, but also could help
businesses in reducing overall waste management costs.
There are different types of specialised waste management recycling facilities
established in each of the model parks. This indicates that these parks are
committed to reducing their carbon footprint.
Notably, during the 2014 Asia Pacific Climate Change Adaptation Forum,
Datuk Seri Mohd Najib Tun Razak, the Prime Minister, has emphasised that
the government has put in place new policies to promote energy-efficient
vehicles and a low carbon footprint city framework, which is in line with the
Copenhagen pledge that has been made to reduce the intensity of carbon
emissions27.
Hence, it is encouraged to establish specialised waste management facilities
in Lembah Chuping in line with the initiatives by the Malaysian government to
reduce the country’s overall carbon footprint.
ii. Institutions of Higher Learning and R&D Initiatives
    Two criteria will be assessed for this parameter, which are (i) the
    number of student enrollment for science – related courses in the
    nearby institutions of higher learning and (ii) the R&D budget allocated
    to these institutions. The first criteria will assess the potential talent
    pool which could be tapped by model parks from these institutions.
26 Specialised Waste Management Recycling Facilities in Kulim Hi – Tech Park;
   http://www.khtp.com.my/component/sobipro/?pid=58&sid=118:BASF-Malaysia-Sdn-Bhd&Itemid=0
   Specialised Waste Management Recycling Facilities in Singapore Science Park;
   http://www.sembcorp.com/en/business-on-site-services-solid_waste_management.aspx
   Specialised Waste Management Recycling Facilities in Eco World Styria;
   http://www.greenchipstocks.com/articles/eco-world-styria/1376
27 The Star - Najib calls for consistent action to reduce carbon emissions;
   http://www.thestar.com.my/News/Nation/2014/10/02/Fulfil-climate-agenda-pledges-Najib-calls-for-
   consistent-action-to-reduce-carbon-emissions/
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Chuping Valley Development Plan
Conversely, the second criteria will assess the level of extensiveness
in terms of R&D initiatives carried out by these institutions through
amount of budget allocated to them.
Eco World  KHTP        SSP
           5
           4
           3
           2
           1
           0
Techpark         HSIP
Figure 3.11: Model Park Ratings for Institutions of Higher Learning and R&D
Initiatives
- This space intentionally left blank -
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Chuping Valley Development Plan
                        Key Findings
Student Enrollment for Science-Related Courses
                Table 3.7: Student Enrollment for Science-Related Courses28
                     Student Enrollment for Science-Related Courses
Model Parks             Institutions of Higher Learning    No. of Student Enrollment
                        Surrounding the Model Parks            for Science-Related
                                                                       Courses
Techpark @ Enstek       Multimedia University, Cyberjaya             N/A
                           INTI International University             N/A
Kulim Hi-Tech Park            University Sains Malaysia              25,000
                        Politeknik Tunku Sultanah Bahiyah            1,100
Singapore Science       National University of Singapore             5,836
         Park              National University Hospital               N/A
                        Institute of Microelectronics                N/A
Eco World Styria        Graz University of Technology                11,600
                              University of Leoben                     N/A
Hsinchu Science and      National Tsing Hua University               12,355
    Industrial Park     National Chiao Tung University                 430
Source: KPMG Analysis
*N/A: Data Unavailable
Based on the figure above, there is supply of human talent with science-related
background produced by each institution of higher learning that businesses in
each model park could leverage.
Therefore, it is important for institutions of higher learning to be able to produce
a consistent supply of human talent in order to fulfill the demand for manpower
by businesses. These talents would be helpful for contributing fresh
perspectives for industry innovation.
Thus, in order to develop Lembah Chuping into a Green-technology focused
park, the park management of Lembah Chuping could assist future businesses
leverage the availability of human talent from institutions of higher learning
located at the surrounding areas, as such an ambitious development would
require an extensive supply of highly skilled human talent.
28 Student Enrollment for Science-Related Courses in University Sains Malaysia;
   http://postgraduate.my/institution/universiti-sains-malaysia/
   Student Enrollment for Science-Related Courses in Politeknik Tunku Sultanah Bahiyah;
   http://ecrim.ptsb.edu.my/
   Student Enrollment for Science-Related Courses in National University of Singapore;
   https://share.nus.edu.sg/registrar/info/statistics/ug-grad-20132014.pdf
   Student Enrollment for Science-Related Courses in Graz University of Technology;
   http://portal.tugraz.at/portal/page/portal/TU_Graz/Studium_Lehre
   Student Enrollment for Science-Related Courses in National Tsing Hua University;
   http://www.nthu.edu.tw/english/content_edu.php
   Student Enrollment for Science-Related Courses in National Chiao Tung University;
   http://www.mse.nctu.edu.tw/en/intro.html
                                                                                                                June 2015
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Chuping Valley Development Plan
Research and Development Budget for Institutions of Higher Learning
                     Table 3.8: R&D Budget for Institutions of Higher Learning29
                  Research and Development (R&D) Budget for Institutions of Higher Learning
Model Parks             Institutions of Higher          R&D Budget                          Remarks
                     Learning Surrounding the
                              Model Parks
Techpark @ Enstek    Multimedia University, Cyberjaya   N/A                                  N/A
                        INTI International University   N/A                                  N/A
                     University Sains Malaysia          i. Collaboration with Internatonal     i. Maximum duration not
                                                                Researcher: RM 300,000                 exceeding 3 years
Kulim Hi-Tech Park
                                                            ii. Collaboration with local    ii. Duration of research should
                                                                 researcher: RM 200,000           be at least 12 months and
                                                                                                    maximum of 36 months
                                                                                            Supported by Escience (MOSTI)
                     Politeknik Tunku Sultanah Bahiyah  Maximum of RM 500,000               depending on the type and
                                                                                                      duration of projects
                                                                                            i. SGD 40,750 granted by the
                                                                                                 Government of Singapore.
                     National University of Singapore    i. Approximately RM 105,000        ii. 3 years flexible research
                                                        ii. Approximately RM 2.6 Million        grant up to SGD 1 Million
Singapore Science                                                                                   granted by Temasek
         Park
                     National University Hospital       N/A                                 Research Fellowship.
                                                                                                     N/A
                     Institute of Microelectronics                     N/A                               N/A
                                                        Approximately RM 42,000             Not more than €10,000
Eco World Styria     Graz University of Technology
                           University of Leoben                        N/A                    supported by the Initial
                                                                                                Funding Programme
 Hsinchu Science      National Tsing Hua University     Approximately RM 230 Million        NTD 2.11 Billion
and Industrial Park  National Chiao Tung University     Approximately RM 6.7 Million         USD 2 Million
Source: KPMG Analysis
The figure above reflects the level of support given by the government in
respective countries to educational institutions to stimulate R&D efforts. The
strong government funding support for these institutions for R&D would
eventually benefit the industrial parks as these institutions are better equipped
to collaborate with the parks for R&D initiatives. At both the country and
industrial park levels, the respective R&D initiatives are spelled out as follow:
29 R&D Budget in Universiti Sains Malaysia;
   http://www.research.usm.my/forms/ircf/Garis%20Panduan%20IReC%20Fund%20(V2).pdf
   R&D Budget in Politeknik Tunku Sultanah Bahiyah;
   http://ernd.mosti.gov.my/eScience/download/GUIDELINES%20-%20SCIENCEFUND.pdf
   R&D Budget in National University of Singapore;
   https://share.nus.edu.sg/registrar/info/statistics/gd-grad-20132014.pdf
   R&D Budget in Graz University of Technology;
   http://studyabroad.rutgers.edu/index.cfm?FuseAction=programs.ViewProgram&Program_ID=10259http:/
   /portal.tugraz.at/portal/page/portal/Files/FTH/files/HP%20ab%20September%202013/Anschubfinanzieru
   ng%204/Anschubfinanzierung_4AS_Leitfaden_en_2014-08-09.pdf
   R&D Budget in National Tsing Hua University;
   http://www.is.tsinghua.edu.cn/EN/general/tsinghua.html#section_2
   R&D Budget in National Chiao Tung University; http://www.mse.nctu.edu.tw/en/intro.html
                                                                                                                 June 2015
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Chuping Valley Development Plan
Techpark@Enstek
10,000                                                                         9,422          1.2
                                                                                        1.07  1
9,000                                                     1.01           1.07
                                                          7,200         8,511
8,000
7,000                                   0.79                                                  0.8
                                        5,071
6,000                     0.63   0.64                                                              GERD/GDP (%)
5,000               0.59                                                                      0.6
4,000           2,501
        0.5
                                 3,647
3,000                     2,844                                                               0.4
2,000 1,672                                                                                   0.2
1,000
0                                                                                             0
          2000
                2002      2004   2006   2008              2009          2010   2011
                          Total Expenditure (RM million)  GERD/GDP (%)
Source: Malaysia Science and Technology Information Centre
                     Figure 3.12: R&D Intensity to the Malaysian GDP
• Malaysia has been increasingly focusing on R&D since the past 10
    years. Based on statistics from the Malaysian Science and Technology
    Information Centre (MASTIC), the R&D intensity (measured by the
    percentage of gross expenditure spent in R&D (GERD) to the
    Malaysian GDP (GERD/GDP)) has shown an increment since 2004. In
    2011, the GERD/GDP was 1.07%, an increment of 67.19% compared
    to 2006. This has exceeded the targeted GERD/GDP of 1.0% by 2015
    set by the Economic Planning Unit30.
• As host to the largest biotechnology cluster in Malaysia, companies
    have established R&D centres in Techpark@Enstek for industry
    research. FELDA, Malaysia’s largest palm oil producer, is currently
    operating an oil palm tissue culture R&D centre, which specialises in
    biotechnology research for oil palm and other domestic crops31.
Kulim Hi – Tech Park
    • Companies in Kulim High Tech Park have been leveraging the financial
         incentives available for R&D to collaborate extensively with the nearby
         higher learning institutions in seeking innovation, differentiation and
         value-add to their respective industries.
Singapore Science Park
    • The Government of Singapore has put in substantial efforts in building
         a comprehensive R&D ecosystem comprising public sector research
         bodies (e.g. Agency for Science, Technology & Research or A*STAR),
         academic research institutes and corporate R&D laboratories32. Public
 30 Malaysia Science and Technology Information Centre – Research and Development (R&D)
    Survey;
    http://www.mastic.gov.my/en/web/guest/statistik-kajian-rnd-kebangsaan
 31 E-Brochure: Techpark@Enstek;
    http://www.techpark.enstek.com/index.php?option=com_content&view=article&id=59&Itemid=69
 32 Structural Policy Country Notes – Singapore;
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                                                                                                                  Page 3-21
Chuping Valley Development Plan
expenditure on R&D has been invested into different sectors as shown
in the figure below:-
               Source: A*STAR R&D Survey 2011
                      Figure 3.13: Public Expenditure on R&D in Singapore
R&D has helped to sustain the competitiveness of established sectors such as
manufacturing and electronics and seeded new growth sectors such as
Biomedical Sciences and Clean Tech33.
For instance, Singapore Science Park offers variety of purpose-built office
space ideal for R&D especially in IT industry such as The Galen Building, The
Kendall Building, The Aries Building and The Alpha Building. These facilities
share the following similarities:-
    • Located closely to the National University of Singapore (NUS), which
         would foster closer and more frequent R&D collaborations between the
         park tenants and NUS. Moreover, industries would have easier access
         to the relevant technical experts from NUS.
    • Multi-national and local companies as well as R&D organisations are
         placed together within the same campus-like setting. Apart from easy
         interactions between these companies and R&D organisations, it would
         be more convenient for companies to source for expertise and facilities
         for R&D projects.
Eco World Styria
    • With a research intensity (measured by gross domestic expenditure on
         R&D as percentage of GDP) of 2.88% in 2014, Austria invests much
         more in R&D than the European Union average ratio of 2.06%34. For
         the energy sector, research expenditure was substantially incurred in
         the areas of energy efficiency (52.7%) and renewable energy sources
         (27.1%) in 2011 with apparent prioritisations on the two sectors.
   http://www.oecd.org/dev/asia-pacific/Singapore.pdf
33 National Research Foundation – Prime Minister’s Office of Singapore, 2014;
   http://www.nrf.gov.sg/research/r-d-ecosystem/r-d-investments
34 Statistics Austria; http://www.statistik.at/web_en/press/076605
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Chuping Valley Development Plan
                Energy research expenditure in Austria in 2011, in total
                      5.10%
        10.10%
                               Energy Efficiency
  1.80%                        Fossil Fuels
2.20%
                               Renewable energy sources
                       52.70%  Nuclear fission and fusion
                               Hydrogen and fuel cells
27.10%                         Other power and storage
                               technologies
                               Other cross-cutting tehnologies or
                               research
                0.90%
       Source: BWMIT: Energy Research Expenditure in Austria 2011
Figure 3.14: Energy Research Expenditure in Austria in 2011
• As of 2012, four (4) research institutions have been established in Eco
    World Styria. These insititutions together with the universities and
    industrial networks around Styria, collaborate to carry out extensive
    green technology research35.
Hsinchu Science and Industrial Park
    • The Government of Taiwan is committed to promote R&D initiatives in
         Taiwan. Taiwan’s ratio of R&D expenditure to GDP was 3.1% in 2012.
         To emphasise the government’s proactiveness, this ratio has been
         increasing since 2001. As illustrated in the chart below, IT related
         sectors have accounted for almost three (3) quarters of total R&D
         expenditure in Taiwan for 201236.
         Taiwan's R&D expenditure as a percentage of GDP
                                 (As of year 2012)
        21.2%                  Computer, electronics and
                               optical
2.9%
3.2%                           Chemicals and related
                               products
                               Electrical machinery
                                                                                  Others
                                                    72.7%
        Source: Ministry of Economic Affairs, Taiwan
Figure 3.15:Taiwan’s R&D Expenditure as a percentage of GDP
35 The European House – Ambrosetti;
   http://www.ambrosetti.eu/45A46B42-4E2E-424E-884B-58FEC754AFCC/FinalDownload/DownloadId-
   2025FD61C2D429A70D9309A5DBDE7563/45A46B42-4E2E-424E-884B-
58FEC754AFCC/en/workshops-and-
   forums/special-events/resources-special-events/Schwabpresentazione.pdf
36 Taiwan Today – Taiwan’s R&D spending tops 3 percent of GDP;
   http://taiwantoday.tw/ct.asp?xItem=219742&ctNode=421
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Chuping Valley Development Plan
• Known as Taiwan’s “Silicon Valley”, Hsinchu Science and Industrial
    Park has been encouraging companies to continuously strengthen their
    R&D efforts to promote Taiwan’s industrial development and
    competitive advantage by raising technology standards. Consequently,
    a number of research institutions have been established within the park
    and one of them is the Industrial Technology Research Institute (ITRI).
    The areas of research by ITRI include information and communications,
    electronics and optoelectronics, chemical and nanotechnology, medical
    device and biomedical, mechanical and systems, green energy and
    environment37. ITRI plays a pivotal role in technology introduction,
    talent cultivation, information provision, spin-off companies
    establishment, provision of incubation centres, and technology transfer.
• Besides ITRI, other R&D centres which can be found in the park are the
    National Synchrotron Radiation Research Center and National Applied
    Research Laboratories. The National Applied Research Laboratories
    operate five (5) labs here including the National Nano Device
    Laboratories and National Space Organization. These institutions
    extend abundant academic support to the companies in Hsinchu
    Science and Industrial Park38.
     iii. Availability of Skilled Labour
          Easy access to skilled labour is another pre-requisite for an
          industrial park to perform well. This is one of the key reasons the
          selected model parks have been built in close proximity to the
          universities and/or higher learning institutions. It is more
          convenient for the industries to source for skilled labour from these
          learning institutions.
Eco World  KHTP        SSP
           5
           4
           3
           2
           1
           0
Techpark         HSIP
Figure 3.16: Model Park Ratings for Availability of Skilled Labours
37 Industrial Technology Research Institute – Industrial Technology Research Institute (ITRI);
   https://2014w.itri.org.tw/eng/Content/Messagess/contents.aspx?SiteID=1&MmmID=617731
   521661672477
38 Introduction to Hsinchu Science and Industrial Park;
   http://www.sipa.gov.tw/english/home.jsp?serno=201009060001&mserno=201009060001&menudata=En
   glishMenu&contlink=content/20100906114346.jsp
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Chuping Valley Development Plan
                                           Key Findings
 Proximity to Learning Institutions
 Universities and higher learning institutions which are located in close
 proximity to industrial parks are viewed as likely reliable sources for skilled
 workers to cater for the demand from the industrial parks.
 The National University of Singapore (“NUS’), which is ranked as the best
 university in Asia by QS University rankings in 201439 is located in close
 proximity to the Singapore Science Park (“SSP”). The close proximity of the
 SSP to such a highly regarded university has benefited the park tenants as
 NUS constantly supplies highly skilled workers to the park.
 Besides supplying manpower to the parks, these universities provide
 consulting services and collaborative research assistance to tenants nearby.
 For instance, National Tsing Hua University (NHTU) and National Chiao
 Tung University (NCTU), being two of Taiwan’s highly prestigious higher
 learning institutions in the discipline of basic science and applied
 engineering, have close R&D collaborations with tenants in Hsinchu Science
 and Industrial Park.
 Proximity to Major Cities
 • The comprehensiveness of established infrastructure for utilities, public
      transportation, healthcare, and education in major cities are pull factors
      for people to work in such places. Industrial parks located closely to
      major cities would find it easier to source for skilled labor as compared to
      being located in rural and sub-rural areas. Graz, the second largest city in
      Austria is located within 5km of Eco World Styria whereas SSP is located
      within the Singapore City.
 Level of English Language Proficiency
                                     ENGLISH AND THE EASE OF DOING BUSINESS
          Source: Doing Business 2014 – Understanding Regulations for SME Enterprises
                      Figure 3.17: English and the Ease of Doing Business
 English Language has become more important than ever due to globalization
 and urbanization. Today, it is one of the most commonly used languages to
 communicate and interact with each other in the international business and
 scientific communities. A country whose population has a high proficiency
 level in English is regarded to be more “friendly” to businesses. Moreoever, it
 was found that there is a positive correlation between the proficiency of
39 QS University Rankings: Asia 2014;
   http://www.topuniversities.com/university-rankings/asian-university-
   rankings/2014#sorting=rank+region=+country=+faculty=+stars=false+search=
                                                                                                                 June 2015
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Chuping Valley Development Plan
                                          Key Findings
English and the ease of doing business in a country.
                      Figure 3.18: EF English Proficiency Index Ranking
Austria, which ranked 7th in EF English Proficiency Index 2014 is the highest
ranked country as compared to Malaysia, Singapore and Taiwan.
Education Levels in the Country
Education levels plays a significant role in a country’s economic
development. A higher level of education attainment among the population in
a country will increase the availability and productivity of skilled labor in that
country.
For instance, Singapore has placed a huge emphasis on its education
system to develop quality human resources to support its ambitious plans for
sustainable economic growth.
Incentives for Expatriates
A country with a shortage of skilled labor tends to rely on expatriates to fill
the gap. It has to strike a right balance between its dependency on
expatriates and having to safeguard the interests of its own citizens.
Malaysia and Singapore have increased their efforts in recent years to attract
and retain expatriates by introducing programs that offer attractive benefits
for expatriates to obtain residence passes and/or work permits in these two
respective countries. Besides that, they also provide various incentives (other
than tax incentives) such as the option to provide passes to the expatriates’
spouses and children if they are able to meet certain criteria. These reflect
the commitment of both countries to draw expatriates in meeting the demand
for skilled labor.
        iv. Park Operating Model
             It is necessary for businesses within an industrial park to receive
             continuous support from the park management in promoting
             operational sustainability. The support provided by park
             management could address matters such as operational support
             services, business development, provision of park support
             infrastructure, benefits and incentives. Below are the types of
             support offered by each of the selected industrial parks to its
             residents:-
                                                                                                               June 2015
                                                                                                               Page 3-26
Chuping Valley Development Plan
Eco World  KHTP        SSP
           5
           4
           3
           2
           1
Techpark         HSIP
                  Figure 3.19: Model Park Ratings for Park Operating Model
                                          Key Findings
Business Advisory Support
• Ascendas (the park operator of SSP) provides various services to park
    tenants for business growth and expansion opportunities. The types of
    services rendered are market research, business development, market
    entry strategies, market & financial planning, partner sourcing, capital fund
    raising, competitor benchmarking, regulatory, compliance and advisory
    services. With these, park tenants are able to leverage Ascendas’s
    extensive business network to create business opportunities with potential
    partners and clients40.
• With the constant changes in accounting guidelines and governance
    policies, Hsinchu Science and Industrial Park conducts seminars and
    workshops to promote knowledge of tax implications, new requirements of
    the Company Act, corporate registration and regulations that are pertinent
    to the operation of its resident companies’ businesses41.
Business Development Support
• Eco World Styria has been in collaboration with 13 European
    environmental engineering clusters in a project called INNOVA Project
    Eco-Innovative Cluster Partnership for growth and internationalization
    (“INNOVA Project Eco CluP”). With such a vast networking opportunity
    within Europe, various partnerships and collaborations are formed for
    research and development purposes, together with support measures in
    place for growth and the expansion of global business of the companies in
    Eco World Styria42.
• Techpark has a strong collaboration with the government and private
    agencies to develop the halal industries in the park to foster greater
    synergy between the park tenants and these agencies to encourage a
    broader and deeper development of the halal industry as a whole.
    Initiatives such as training modules have been developed by these
    agencies to educate industry players. Moreover, the HDC is dedicated to
    providing assistance to the park’s tenants on the development of halal
40 Singapore Science Park, “Business Programs”;
   http://www.sciencepark.com.sg/businessprograms.html#point1
41 Hsinchu Science Park 2013 Annual Report, 2013;
  http://www.sipa.gov.tw/english/file/20140721163829.pdf
42 Green Tech Valley, “ECOCLUP (EU-PROJECT)”;
  http://www.eco.at/cms/918/EcoCluP_(EU_Project)/
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                                                                                                                 Page 3-27
Chuping Valley Development Plan
                                          Key Findings
    related matters. Such assistance has certainly helped the development of
    halal industry in Techpark.
Talent Recruitment and Cultivation Support
• Hsinchu Science and Industrial Park has a proactive approach to develop
    human capacity and capabilities in the park. The park operator has
    initiated a subsidy program for universities and colleges nearby to offer
    courses that can meet the park’s industries’ needs and to enhance the
    professional competence of their prospective graduates. Besides that,
    internships are available at various enterprises to build a close link
    between industry and academia.
• The park operator of Singapore Science Park has also offered internships
    and recruitment programs for its tenants. Park tenants would have the
    opportunity to leverage Ascendas’ partnerships with recruitment firms and
    its established connection with business institutions in the region to bring
    in professional expertise on recruitment, succession planning and
    headhunting services. Besides that, park tenants are able to access a
    wide range of talented undergraduates and post-graduates by leveraging
    Ascendas’s close ties with reputable tertiary education institutions.43
         v. Business Environment
              Two criteria will be assessed for this parameter, which include the
              (i) ease of doing business and (ii) restriction on full foreign
              ownership.
Eco World  KHTP                                                 SSP
           5
           4
           3
           2
           1
Techpark         HSIP
Figure 3.20: Model Park Ratings for Business Environment
43 Singapore Science Park - Business Programs;
   http://www.sciencepark.com.sg/businessprograms.html#point10
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Chuping Valley Development Plan
                        Key Findings
Ease of doing business
World Bank “Ease of Doing Business” Ranking
                        2015  2014    2013
Singapore               1             11
Malaysia                18            20 12
Taiwan                  19            16 16
Austria                 21            30 29
Figure 3.21: "Ease of Doing Business" Ranking
• The ease of incorporating a company, efficiency in processing business
    documents44 and simplicity of tax payment system in Singapore are the
    few key factors that propel Singapore as the top destination for ease of
    doing business. These key factors are used in the evaluation of the
    countries as reported in the World Bank`s “Doing Business” report in
    2015 which ranked Singapore as the top country in the the world to do
    business in45.
• The elimination of red-tape and bureaucracy enables companies in
    Singapore to save time and cost and has positioned Singapore as one of
    the top investment destinations for foreign investors in the world. With a
    strong governance and robust structure in place, SSP has become home
    to more than 350 MNCs, local companies and national institutions with
    over 7,500 researchers, engineers and support staff46.
Restriction on full foreign ownership
• Singapore and Austria allow full foreign ownership in most industries
    within their countries. As such, these countries will be more appealing to
    foreign investors as less restriction are imposed upon them.
• On the other hand, Malaysia has relaxed its policy on foreign ownership
    in the manufacturing sector in the early 2000s. It has further liberalised
    the services sector in 200947 to attract more foreign investors,
    professionals and technology to strengthen the competitiveness of
    Malaysian businesses. Nonetheless, full foreign ownership is still
    restricted for certain industries, for example metal fabrication.
44 Business documents refer to import and export documents, business permits and other relevant
   documentation
45 “World Bank - Doing Business 2013”;
   http://www.google.com.my/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=2&cad=rja&uact=8&ved
   =0CCUQFjAB&url=http%3A%2F%2Fsiteresources.worldbank.org%2FEXTANNREP2013%2FResources
   %2F9304887-1377201212378%2F9305896-
   1377544753431%2F1_AnnualReport2013_EN.pdf&ei=u9NpVNamFs6juQSy6oDIBA&usg=AFQjCNFMm
   T9LHZMBXkbY6Ay0njx1UQcWTA&bvm=bv.79142246,d.c2E
46 Ascendas – Singapore Science Park;
   http://www.ascendas.com/downloads/Brochure_SporeSciencePark.pdf
47 Malaysia Liberalisation of Service Sector;
   http://malaysiabizadvisory.com/malaysia-liberalisation-of-services-sector/
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Chuping Valley Development Plan
vi. Incentives and Benefits
    Incentives and benefits are offered to industries in encouraging
    their growth as well as to promote more investments in these
    industries. They can be in the form of tax and non-tax incentives.
    Examples of tax incentives are tax exemption and relief, and duty
    and/or tax reductions etc. On the other hand, non-tax incentives
    are grants, funding support and technical support services.
    Over the years, countries have been progressively increasing their
    expenditures on R&D as they have a positive correlation with the
    national productivity and growth performance. According to
    research by Battelle, the total global gross expenditure on R&D
    has reached approximately USD1.6 trillion in 2014 and recorded
    an average annual growth rate of 3.28% from 2012-201448.
                                               Total Global Gross Expenditure on R&D
Gross Expenditure on R&D (Billion'USD)  1,640
                                        1,620
                                        1,600
                                        1,580
                                        1,560
                                        1,540                                           1,618
                                        1,520         1,558
                                        1,500
                                        1,480  1,517
                                        1,460
                                               2012   2013                              2014
                                               Figure 3.22: Total Global Gross Expenditure of R&D
From our observations, there are some distinguishing features in
the design of incentives offered in these benchmarked countries to
promote investment and innovation in their respective industrial
parks. Park tenants in few industrial or science parks are granted
with preferential/concessionary incentives as compared to
industries outside the parks as spelled out below:-
                                               - This space intentionally left blank -
48 2014 Global Funding R&D Funding Forecast “December 2013”,
http://www.battelle.org/docs/tpp/2014_global_rd_funding_forecast.pdf
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Chuping Valley Development Plan
Industrial Parks     Type of Incentives
 Hsinchu Science     Tenants from science/industrial parks are given the
and Industrial Park  privilege to enjoy various tax and non-tax incentives
                     such as lower corporate income tax, tax relief on
Techpark@Enstek      export products or labor services, added protection of
                     investors’ rights.
  Kulim Hi - Tech
          Park       Techpark has been accredited with HALMAS status,
                     which enables Halal park operators, Halal industry
                     and logistic players to enjoy exclusive tax incentives.
                     KHTP as one of the Multimedia Super Corridor (MSC)
                     Malaysia cybercities has been granted with incentives
                     targeted at new start-up companies with MSC status.
                     These incentives are in the form of duty and tax
                     exemptions, investment tax allowance, R&D grants
                     and freedom to raise capital and borrowings globally
                     for MSC Malaysia infrastructure projects.49
                     - This space intentionally left blank -
49 2015 Budget Commentary and Tax Information by the Malaysian Institute of Certified Public Accountants
   (MICPA), Malaysian Institute of Accountatns (MIA) and Chartered Tax Institute of Malaysia (CTIM)
                                                                                                                 June 2015
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Chuping Valley Development Plan
SUMMARY
A benchmarking analysis has been carried out using a selection five (5)
model parks comprising 2 from within Malaysia and 3 from the rest of the
world to identify the critical success factors and good practices that are
suitable for Lembah Chuping to emulate.
The rationale(s) for the selection of the 5 model parks used for comparison
are stated as below:
                Table 3.9: Rationale for Selection of Benchmarked Parks
      Model Parks                                 Rationale(s)
Techpark @ Enstek       • Strong presence of Halal Industries
                        • Largest Biotechnology Clusters in Malaysia
Kulim Hi-Tech Park      • Adoption of Green Technology Usage Policy
                        • Focus on Solar Industry
Eco World Styria        • Resilient Government Support
                        • Presence of Institutions of Higher Learning at
Singapore Science Park
                             Surrounding Areas
Hsinchu Science and
Industrial Park         • Global Forerunners in Green Industries
                        • Comprehensive Green Technology Cluster
                        • Extensive R&D Effort
                        • Conducive Business Environment
                        • Effective Usage of Land Size
                        • Availability of Skilled Labour
                        • Attractive Incentives and Benefits
                        • Comprehensive High-Technology Manufacturing Cluster
                        • Focus towards Biotechnology Sector
Below are the key findings from our benchmarking analysis:
  i) Infrastructure Completeness
         • Proximity of an industrial park to import/export facilities will
              reduce supply chain risks and the cost of doing business in the
              park.
         • A Comprehensive road networks around the industrial park is
              essential to improve the accessibility of the parks to major/satellite
              cities.
         • The availability of a reliable broadband network is important to
              ease the business operations in the park.
         • Setting up a dedicated power plant is necessary in the park if the
              proximity between the parks and nearest power plants is a factor
              for the provision of a stable electricity supply.
         • Water treatment plant in the surrounding areas of Lembah
              Chuping will able to recycle waste water due to low water pressure
              in Lembah Chuping.
         • The setting up of specialized waste management facilities will be
              in line with the aspiration of turning Lembah Chuping into a green-
              technology park.
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Chuping Valley Development Plan
ii) Institutions of Higher Learning(“IHL”) and R&D Initiatives
         • Businesses in the park should leverage the availability of human
              talent from IHL around the park. Therefore, it is important to
              ensure that an adequate supply of human talent from these IHLs is
              able to cater for the demand of the industrial park.
         • The availability of R&D grant for collaboration between institutions
              and businesses in the park will increase the R&D initiatives co-
              operation to develop commercially-viable products.
iii) Availability of Skilled Labour
         • IHL that are close to the industrial parks will provide an adequate
              supply of skilled labours and enhance collaborative research
              opportunities.
         • Industrial parks which are located closer to major cities are more
              likely to attract skilled workers as infrastructures are readily
              available in major cities.
         • A high level of English proficiency among skilled workers in a
              country is perceived to be more appealing for investors to set up
              their businesses in a country.
         • The availability of incentives and less-stringent entry rules on
              immigration would attract more foreign knowledge workers into the
              country.
iv) Business Environment
         • A more conducive business environment in a country would attract
              greater investments as investors are drawn by the ease of doing
              business and a high level of protection of investor’s rights in this
              country.
         • Excessive restriction on foreign ownership in a country would
              reduce the attractiveness to foreign investors.
v) Park Operating Model
         • The Business Advisory Support Services would allow residents in
              the industrial park to keep abreast with the new developments in
              business operations as well as tax and regulatory compliance
              matters.
         • Park operator should assist residents in industrial park by
              promoting networking opportunities and industry collaborations to
              grow the businesses in the park.
         • Support from the park operator to source human talent to cater for
              the manpower demand from the industrial park is essential.
vi) Incentives and Benefits
         • Incentives and Benefits which are tailored specifically for an
              industrial park would enhance the attractiveness of an industrial
              park in attracting investors to the park.
         • Eligibility criteria for incentives and benefits that are offered in an
              industrial park should be relaxed and less stringent.
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4.0 PROPOSED
       INDUSTRIES
Chuping Valley Development Plan
4.0 PROPOSED INDUSTRIES
         This section presents the proposed concept, theme and industries
         proposed for Lembah Chuping1. This is followed by an estimate of the
         economic impact of these industries to Perlis’ economy in terms of
         GDP contribution and job creation.
4.1 Concept of Lembah Chuping
         It is proposed that the development of Lembah Chuping be centred on
         Green technology and Green manufacturing processes.
         Manufacturing is considered environmentally-friendly (or Green) when
         one (or more) of the below stages of the value chain are compliant
         with all the characteristics outlined below (Figure 4.1). Emphasis will
         be put on the use of ‘Raw Materials’ and the undertaking of
         ‘Manufacturing’ processes in accordance with the defined criteria.
            Source: KPMG analysis and The Construction Specifier (1999)
             Figure 4.1: Characteristics of a Green Manufacturing Process
         There are four (4) main reasons for this proposed Green concept for
         Lembah Chuping:
         i) Preservation of the Surrounding Environment
                                                           AB
                                       C
                       Figure 4.2: Map of the Area Surrounding Lembah Chuping
1 Henceforth the proposed development of the Chuping Valley area, as will be analysed in this report, shall
   be referred to as “Lembah Chuping”.
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Chuping Valley Development Plan
         Lembah Chuping (Point A - Figure 4.2) currently borders an
         environmentally sensitive forest reserve area (Point B - Figure 4.2),
         while also located approximately 5 km from the Timah Tasoh dam
         (Point C - Figure 4.2); a reservoir that regulates the flow of Sungai
         Korok to provide domestic and industrial water supply to Kangar2.
         Both these areas are significant to Perlis’ agricultural activities, in
         addition to the water supply of the state’s population. Therefore, to
         preserve the area, industrialisation in Lembah Chuping should be
         producing minimal industrial waste and harmful emissions. Emphasis
         shall be put on attracting investors undertaking Green manufacturing
         processes to minimise the effect on the surrounding environment.
         ii) Alignment to Government Policy
           Figure 4.3: Growth in Green Initiatives (8th, 9th and 10th Malaysia Plans)
         In accordance to national goals of promoting Green technology, the
         number of Green initiatives in Malaysia has increased over the past 14
         years; across both initiatives in Renewable Energy (RE) and Energy
         Efficiency (EE) (Figure 4.3). Future policies indicate a continued focus
         on developing these abilities; the implementation of the Green
         Malaysia Plan 20303 will serve as a reference for the Government in
         developing programmes and activities pertaining to Green technology
         and Green practices in the 11th and 12th Malaysia Plans4. As Lembah
         Chuping’s concept is aligned with federal initiatives, this presents an
         opportunity for developments in Lembah Chuping to leverage on
         Green incentives offered by the Federal Government.
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2 http://www.water.gov.my/index.php?option=com_content&task=view&id=296&Itemid=835
3 Details the strategic direction for the country to implement green technology policies that will drive the
change into a green economy, through the harmonisation of economic growth with environmental
sustainability
4 http://www.greentechmalaysia.my/content.asp?zoneid=2&cmscategoryid=412#.VRif_PmUdws
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Chuping Valley Development Plan
iii) Financial Benefits for Potential Investors in the Form of
         Reduced Costs
                    Figure 4.4: UTM Energy Costs (2009-2012)
In addition to environmental benefits from the switch to renewable
energy and energy efficient processes, recent research has also
revealed financial benefits to potential investors themselves. A recent
study conducted by Aberdeen Group on sustainability initiatives (of
more than 200 global MNCs – many of them in manufacturing)
illustrated the potential cost savings of ‘going Green’. Those deemed
“best in class” had achieved an impressive 9% reduction in carbon
footprint while cutting energy costs by 6%, facilities costs by 7%,
paper costs by 10% and transportation/logistics costs by 7%5. In
addition, UTM (Universiti Teknologi Malaysia) invested RM 1.5 mil in
2009 into a campus-wide switch to energy efficient lighting (T9 to T5
lamps). Their investment has yielded RM 1.3 mil in energy savings per
year, with a payback period of 1.2 years (Figure 4.4). These trends
indicate the financial viability of ‘going Green’ – which provides
additional incentives for companies to start making their business
operations more sustainable.
iv) First Mover Advantage
Fuel Resources (Exojoules)
                                                                                Time (years)
           Source: Adeco Solar website
Figure 4.5: Expected Supply of Fossil Fuels (2000-2090)
5 http://millyardcommunications.com/index.php?src=news&refno=2409&category=News
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