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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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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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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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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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
- This space intentionally left blank -
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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:
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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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Chuping Valley Development Plan
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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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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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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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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Chuping Valley Development Plan
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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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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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 -
June 2015
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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;
June 2015
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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
June 2015
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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
June 2015
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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
June 2015
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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
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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)/
June 2015
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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
June 2015
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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/
June 2015
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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
June 2015
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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.
June 2015
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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.
June 2015
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Chuping Valley Development Plan
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June 2015
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Chuping Valley Development Plan
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”.
June 2015
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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.
- This space intentionally left blank -
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
June 2015
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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
June 2015
Page 4-3
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