perdana leadership foundation ceo forum 2013: the rest of the world and malaysia: external...
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Mr Prakash Chandra, President and CEO of Siemens Malaysia, talks about the external challenges to Malaysia's growth as well as the key growth levers of the present and future. He emphasizes two themes: technology-driven growth as well as knowledge-based capital. The presentation was delivered at the Perdana Leadership Foundation CEO Forum 2013, an annual event organised by the Perdana Leadership Foundation that gathers more than 30 CEOs and analysts in 9 plenary and concurrent sessions to discuss matters affecting business and economics in the country and region. The sixth CEO Forum will take place on 24th September 2014 at Berjaya Times Square Convention Centre, Kuala Lumpur. For more information, visit www.perdana.org.my/ceoforum.TRANSCRIPT
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The Rest of the World and Malaysia:
External Challenges to Malaysia’s
Growth
Prakash Chandran | President & CEO, Siemens Malaysia Sdn Bhd
2013-June-18
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Page 2 Prakash Chandran
External Challenges to Malaysia’s Growth
US Economic Situation “Tepid” recovery in the US economy - IMF
Eurozone Crisis Economy likely to shrink by 0.6%, not the forecasted 0.5% - ECB
China Slow growth continues. Fiscal revenue increase of only 0.27trillion yuan, YTD
2013-June-18
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Page 3 Prakash Chandran
Growth Levers
Technology Infrastructure
Political
stability Ethics
Economic policies
People-aided
accelerators
External
investors
Natural
resources City
development
Bilateral & regional
corporation
Competitive
value
addition
2013-June-18
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Page 4 Prakash Chandran
To Rise Above the Challenge – 2 Key Themes
• invest in R&D
• ensure innovation Technology-driven growth
• to accelerate growth we need to compete in higher-value activities
Knowledge-based capital
2013-June-18
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Page 5 Prakash Chandran
Technology-driven growth:
Research and innovation complement each other
Research is transforming
money into knowledge
Innovation is transforming
knowledge into money
Consequences:
• Research is a necessary
though not sufficient
precondition for innovation
(Innovation is the invention plus
market success)
• Economic value is only created
by successful innovations
• Business strategy drives R&D
strategy
2013-June-18
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Page 6 Prakash Chandran
Technology-driven growth:
Consistent innovation strategy
Innovation Strategy
Consistent with respect to:
Technology
strategy
Standards
strategy
Human
Capital
Development
R&D
resource
strategy
Patent
strategy Processes
• Focus on trendsetting technology
portfolios and achieve leading position
• Increase patents in trendsetting
technologies
• Effective R&D spending
• Full leverage of our capabilities and
assets to tap further potential
2013-June-18
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Page 7 Prakash Chandran
Research
Institutes
Technology-driven growth:
Networks are the breeding grounds for innovation
(“Open innovation”)
Start-up /
VCs
Competitors
Key
Customers
Technological
partners
Other
Industries
Think Tanks
Universities
MALAYSIA
2013-June-18
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Page 8 Prakash Chandran
What is knowledge-based capital
Computerised Information
• Software
• Database
Innovative Property
• Patents
• Copyrights
• Licenses
• Trademarks
Economic Competencies
• Brand equity
• Human capital
• People network
• Process knowledge
• Productivity / enterprise efficiency
2013-June-18
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Page 9 Prakash Chandran
Knowledge-based capital:
Investment
In 2008, only 5 OECD countries (France, Germany, Japan, Korea & US) invested
heavily in R&D, amounting to 74% of the total OECD R&D spending
2013-June-18
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Page 10 Prakash Chandran
• Facilitates entrepreneurial activity – essential to
encourage economic growth
• Skills shortfalls represent a bottleneck
• Increased sophistication of production processes in
many industries
• Need for new business process skills as a result of
major investments in ICT
• Process standardisation
• Productivity improvement
• Improvement in competitiveness
Knowledge-based capital:
Why it is important
2013-June-18
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Page 11 Prakash Chandran
• Good conditions for the financing of KBC-
intensive firms
• Bridge businesses and information sources –
benefits could be had from including all forms
of KBC
• Better measurements to gain a fuller
understanding of innovation, investment and
growth
• Harness existing international collaboration
opportunities
• Open market accessibility
Knowledge-based capital:
How to make it work
2013-June-18
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Page 12 Prakash Chandran
Thank you.