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A project co-funded by the European Union.
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A project co-funded by the European Union.
Business Opportunities & IPR for
ICT, Smart City Technology and
Internet of Things in Malaysia
South-East Asia IPR SME Helpdesk
Dr. Chris Hemingway
EU-Malaysia Chamber of Commerce & Industry
Mr. Jesse Chooi
27 February 2018
Welcome to the Webinar!
Mitchel SmoldersProject Officer
South-East Asia IPR SME Helpdesk
27 February 2018Copyright © 2017 South-East Asia IPR SME Helpdesk &
The Europe-Malaysia Chamber of Commerce and IndustryAll rights reserved.
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Welcome to the Webinar!
Rita MooreEvent and Business Support Manager
Project: SEBSEAM-M
Support for European Business in South East Asia Markets – Malaysia
Lead applicant: EUMCCI
EU-Malaysia Chamber of Commerce and Industry
EUMCCI in Brief
ADVOCACYNETWORKING EVENT PLATFORM
11 Committees1600 Companies +20 Events
Know Your Market Foster Partnerships Enter Malaysia
Strong network across
Malaysia, ASEAN, and Europe
as the EU Chamber of
Chambers.
Business Opportunities
through events all year
round.
Strong voice to government
through industry
committees.
IoT Trade Mission to Malaysia
Dates: 23rd - 26th April 2018
• Sunday, 22nd of April – Arrival
•Monday and Tuesday, 23rd and 24th of April - IoT
Business Platform Asia & B2B Meetings
•Wednesday, 25th of April - Map the IoT market
• Thursday, 26th of April - Meet the Industry Stakeholders,
B2B Meetings and Departure
MAP THE IOT MARKET
• Learn and understand the IoT market in Malaysia• Participate in Info-Sessions• Site Visits
KICK-OFF BUSINESS WITH POTENTIAL PARTNERS
• Networking Opportunities• Business Linkages Activities• B2B Matching Sessions
HIGHLIGHTS:
OVERVIEW:
Contact: Rita Moore [email protected]
Speaker’s bio
Name: Mr. Jesse Chooi Firm: Malaysia Digital Economy Corporation (MDEC)Location: Kuala Lumpur, MalaysiaEmail: [email protected]
Jesse Chooi Tze Kheong is an experienced professional in the ICTindustry with a career spanning over 20 years in the areas of marketresearch, industry analysis, technology funding and businessdevelopment. He is currently the head of Research and Advisory,Investment and Industry Development. In this role, he works closelywith the Business Development teams to target and close newinvestments for Malaysia’s Digital Economy. Prior to this, he headedIoT Strategy and Business Development at MDEC, where hedeveloped the strategy and tactical execution for IoT IndustryDevelopment and Adoption. Prior to MDEC, he was attached withIBM, IDC and Nielsen.
Jesse holds an MBA from University of Dubuque, Iowa, USA and aDiploma in Marketing from the Chartered Institute of Marketing, UK.
Jesse ChooiHead, Research and AdvisoryInvestment & Industry Development (IID)
27 February 2018
EUMCCI WEBINAR:ICT-SMART TECHNOLOGY
SECTOR
Contents
03
Overview of
Malaysian ICT
Industry
04
Malaysia ICT
Spending By
Segments
05
Key Demand Drivers
08
Key Challenges
09
Case Studies
10
State of Digital
Transformation in
Malaysia
102.5203.3
35.2 60.9 26.9
455.1429.5
96.4
712.1
100.1
2…
5500
6700
2900
4300
E-commerce revenue to drive digital economy E-commerce contribution to GDP increased from 4.4% in
2013 to 4.8% in 2016
Initiatives such as DFTZ and cyber sale events will
further boost the e-commerce activities in the country
Contribution of ICT towards Malaysia’s GDP The contribution has increased from 16.4% in 2013 to
18.2% in 2016, worth $54.1 bn
In 2016, ICT services makes up 40.0% of the total ICT
share, followed by manufacturing (36.1% ) and ICT trade
(13.8%)
Revenue forecast by technologies, Malaysia,
2015-2020 ($ mn)Malaysian ICT industry is expected to enjoy stable growth
Malaysian Government targets the digital economy to
contribute approximately 20% of the GDP by 202020% of GDP
Increased spending National IoT Strategic Roadmap is one of the factors
that drove the 63.5% growth in IoT revenue from 2015
to 2020
Cloud computing services, big data analytics, managed
security services and data centre services are expected
to achieve double-digit CAGR during the same period
Source: MOSTI, DOSM, Industry Report, Frost & SullivanSource: DOSM, Industry Report, Frost & Sullivan
Malaysia ICT Spending by Segment
ICT spending in Malaysia is expected to grow with a CAGR
of 3.0% across various segments between 2015-2020
ICT applications and infrastructure segments will see a
CAGR of 10.7% and 6.8% respectively
Business services will grow 6.0% and become the top ICT
spender in Malaysia as enterprises increasingly harness
technology usage to improve business costs, agility,
flexibility and scalability
The high growth rate forecasted in the applications,
infrastructure and business services segments are largely
due to government initiatives and the increased demand
for ICT applications in these segments
Source: Industry Reports, Frost & Sullivan
27.1%
22.7%
17.4%
9.6%
6.3%
5.6%4.2%
4.0%3.0%
Business Services
Source: Industry Reports, Frost & Sullivan
2015
2020
Total Spending
2015: $10.1 bn
2020: $11.7 bn
End-User ICT Spending by Segments, Malaysia,2015 & 2020, (%)
23.3%
26.4%17.6%
10.4%
5.2%3.9%
5.1%5.1%
3.0%
Key Demand Drivers - Industry 4.0
The Government has taken various initiatives to
encourage Malaysian companies to embrace
Industry 4.0
This task has been taken up by various
government agencies and government owned
or government-linked organisations
These agencies and organisations assist in
overcoming the challenges of accelerating
Industry 4.0, as manufacturing remains a major
segment of the local economy and significant
contributor to GDP
Grants worth $62.3 mn have been allocated for
Smart Manufacturing services, aimed at
supporting investment and business activities
The government will also extend incentives for
Fast Capital Allowance by 200% on automation
appliances for assessment year of 2018 until
2020 in the manufacturing and services sector
World Economic Forum’s Future of production capability, Drivers of production ranking
Country Rank
United States 1
Singapore 2
Switzerland 3
Malaysia 22
China 25
Thailand 35
India 44
Indonesia 59
Source: MITI, Pikom, WeForum, Frost & SullivanNote: 1 USD = 3.9348 MYR
Top technology in Industry 4.0(Fastest growing revenue)
Top industries by IoT adoption
Manufacturing 40%
IoT Healthcare 30%
BDA Retail 8%
Cloud Security 7%
Industry 4.0 & IoT in Malaysia
Embracing Industry 4.0
Source: MITI, Pikom, WeForum,
Key demand drivers - Digital Economy
Digital inclusivity and generating income for people
$25.4 mn has been allocated for the eRezeki and eUsahawan
programmes to ensure the Digital Economy continues to be inclusive
for the well-being of the people
Currently in its third year of implementation, the programmes would
complete training of 341,745 participants, with an estimated total
income and revenue of $138.3 mn
Digital Free Trade Zone
KLIA Aeropolis is a massive game changer which will see Malaysia’s
SMEs doubling exports, and establish Malaysia as a regional trans-
shipment hub for e-commerce logistics and create 60,000 jobs by 2025
Kuala Lumpur Internet City (KLIC) will be the largest digital hub for
global tech-based industries, comprising key players in the tech
ecosystem facilitating end-to-end support, networking and knowledge-
sharing to drive innovation in the internet economy and the e-
commerce industry
Future Education
Talent Development
$63.5 mn has been allocated for the Future education through National Transformation 2050 (TN50)
Develop Science, Technology, Engineering and Mathematics
(STEM) centres and improve Computer Science modules,
including for Coding programmes
2000 Smart Classrooms
Training of skills such as coding, app development, robotics,
embedded programming and creative technology
Premier Digital TechUniversities & Polytechnics
Partnership between MDEC and Ministry of Higher Education
Several Institutions of Higher Learning were recognised for
their offering top-notch digital technology courses and
ensuring highly-skilled graduates continue to flourish and
fill future digital job demands
Partnerships with key industry players, including IBM,
Fusionex, F-Secure, Inspidea, Streamline Studios, Grab, and
industry associations such as PIKOM
8 Universities 5 Polytechnics
Source: MDEC, Frost & SullivanNote: 1 USD = 3.9348 MYR
Key demand drivers - Public Sector ICT Strategic Plan 2016 - 2020
Integrated digital services Provide quality end to end digital services
Inclusive and citizen centric digital services
Data driven Government Manage and realise the value of data in a
holistic and efficient manner
Strengthen cross agency data sharing
Optimise shared services and strengthen cyber security Increase sharing of ICT resources through a
centralised and structured initiative
Ensure secure and trusted digital services
Collaborative and dynamic ICT governance Strengthen leadership and governance for
planning and coordination of digital initiatives
Strengthen ICT management and organisation
functionality to be more dynamic and efficient
Professional and capable work force Strengthen capabilities of Public Sector ICT
personnel
5 30Strategic
thrusts
12Strategies
Programmes
People
Competency and expertise of ICT Personnel
Efficiency in management of ICT Personnel
Process
Efficient and effective ICT Project
Performance measurement and evaluation
Efficient and effective ICT Governance
Technology
One stop access to government services
Multiple digital channels
Use of technology to optimise citizens
engagement
Sharing of resources
Leverage on data sharing
Delivering innovative public sector
services without incurring high capital
expenditure
Source: MAMPU, Frost & Sullivan
Cloud-First Strategy
Faster delivery of public sector
services
Public Sector ICT Strategic Plan 2016-2020
Supports the achievement of Vision
2020
Aligns the use of technology with the
business direction of the Public Sector
Aligns the ICT implementation with ICT
agenda of the Public Sector
Ensures return of investment through
exploitation of technology and a
structured and well planned ICT
implementation
Focuses on productivity and innovation
5 Strategic Thrusts
Public Sector ICT Opportunities
Accessible through web-based tools and
applications
Key Challenges
Skilled workers shortage
The emergence of disruptive technologies has led to the rise of ICT adoption across
industries
However, the talent gap has widen as roles change to evolve around the new
technologies. Not only are skilled technical workers in short supply, current workers
need to be upskilled to work with new technologies in place
The government is working towards aligning technology oriented skillset
development with industry demands through various initiatives such as TN50
Refusal of adoption
Lack of expertise
− Local SMEs often lag behind in adoption technology in their operations due to
lack of expertise in the technology
Cost of investments
− High initial investment for new technologies is driving cost-conscious
companies away from ICT adoption
Affordable labour cost
− Companies are less motivated to adopt disruptive technologies such as
automation due to the abundance of low-cost labour in the market
25%
10th
12.9%
Malware has affected four out of every 10
Malaysian internet user in 2015
Malaysia ranks 10th in global botnet
incidences in 2017, with Asia-Pacific as a
whole accounting for more than 50% of
such incidences globally
12.9% of computers running on Microsoft
real-time security products in Malaysia
reported malware encounter in Q1 of 2017
Cybersecurity Threats in Malaysia
31%
2,100
Only 31% of the organisations in Malaysia
required all their staffs to take part in IT
security awareness training
More than 2,100 servers in Malaysia have
been compromised and their access were
sold to hackers on an underground
cybercrime shopping website, 10th most
demanded in the world
Source: Pikom, Frost & Sullivan
18
Air Liquide is investing $24 mn in its Smart Innovative Operations (SIO) centre which focuses on remote management of production
for 18 Air Liquide units, spanning eight countries across the Southeast Asia region
The centre will integrate, optimise and remotely control the operations of Air Liquide’s production units, leveraging predictive
analytics and digital technologies
In 2017, Air Liquide has also set up shared business services for financial transactions for its operations in the Southeast Asia region
Success Stories
In 2016, GE Power Services launched its first Remote Monitoring and Diagnostics (M&D) Centre in Kuala Lumpur
200 gas and steam turbines, boilers and generators in over 70 plants across 10 countries in the region will gain access to remote
M&D services that help increase plant performance through data analytics
Multiculturalism of the talent pool, diverse skill set within the power industry with engineering expertise and central location
within Asia are among the factors that drove GE power to choose Malaysia as its M&D centre location
The Centre of Excellence (CoE) for Google at Tech Mahindra’s Global Solution Centre in Cyberjaya aims to be a hub for
innovation in the region with focus on nurturing and building solutions with the best combination of products and technologies
In 2009, Tech Mahindra enlarged its Global Solution Centre (GSC) operations in Malaysia by moving more global software
development and delivery operations
The facility has 18 configurable Offshore Development Centre blocks, 1,100-seat development block and a data centre to host
1,100 servers – its largest technology development and delivery facility outside of India
NTT Communications has an established technology hub in Cyberjaya as a part of the MSC initiative
The launch of Cyberjaya 4 data centre has increases its data centre facility’s total capacity by 40%, with 140,000 square feet of
space added that enables it to offer business solutions including cloud deployments and traditional colocation
The data center campus features an integrated operations center and a “Proof of Concept and Innovation Lab,” which are
equipped with the latest converged infrastructure, aiming to accelerate the commercialization of innovative technologies
Source: Various websites, Frost & SullivanNote: 1 USD = 3.9348 MYR
January 2018
January 2018
December 2016
March 2015
State of Digital Transformation in Malaysia
The strong ICT adoption rate in real estate was driven by the high usage of internet in interacting with government organisations and information acquisition compared to other sub-sectors. Digital training is relatively weak in this sector as opposed to Financial and Insurance/Takaful sector
Information and Communication was the 2nd higher ICT adoption since the sector has always been becoming the benchmark for other sectors and actively exploring new innovations. 100% of the businesses in this sector conduct their businesses via internet and has a strong Web presence usage in business
Financial and Insurance/Takaful sector is known for its digitalisationefforts in various operations such as internet banking
The adoption in manufacturing was led by the higher adoption of ICT in delivering products online while automation and industry 4.0 initiatives would further improve the adoption rate in the future
The 5th highest ICT adoption sector is outshining most of the other sectors in owning ICT assets as professional, scientific and technical sector relying heavily on ICT in daily operations
As for the laggard in Malaysia, the low digitalisation in Food and Beverages sector has dragged the productivity which recorded only RM24,971 compared to average of RM82,456 in Q3 2017. The Retail and F&B Productivity Nexus was proposed to drawn up to spur a growth of at least 7.2% in labour productivity with 3 flagship programmes – retail digitalisation, organisation to organisation growth venture and top transformers
Sub-sector ICT Adoption Rate
Real estate
Information and Communication
Financial and Insurance/Takaful
Manufacturing
Professional, Scientific and Technical
51%
44.4%
43.7%
38.7%
Malaysia’s ICT adoption’s trend is led by Real Estate sub-sector
35.9%
Source: DOSM, Frost & Sullivan AnalysisSource: DOSM, Frost & Sullivan Analysis
Speaker’s bio
Name: Dr Chris Hemingway Firm: Marks & ClerkLocation: Kuala Lumpur, MalaysiaEmail: [email protected]
Chris is a director of the Malaysia office of the Marks & Clerk group, the largest international firm ofpatent and trade mark attorneys in the world. He specialises in the drafting and prosecution ofpatent applications.
Chris holds a PhD in Microbiology from the University of Warwick and is a Registered MalaysianPatent, Trade Mark and Design agent in addition to being a Chartered UK patent attorney and aEuropean patent attorney. Chris is a member of the Executive Committees of the MalaysianIntellectual Property Association (MIPA) and The International Association for the Protection ofIntellectual Property (AIPPI), has represented Malaysia on the Patent and Design Committees forthe Asian Patent Attorneys Association (APAA), is a member of the International Federation ofIntellectual Property Attorneys (FICPI) and the British-Malaysian Chamber of Commerce (BMCC),and has been named as an IP Star in the annual World IP Survey conducted by ManagingIntellectual Property since it started in 2014.
Chris joined the Helpdesk network in August 2013.
27 February 2018Copyright © 2017 South-East Asia IPR SME Helpdesk &
The Europe-Malaysia Chamber of Commerce and IndustryAll rights reserved.
Main types of Intellectual Property
27 February 2018Copyright © 2017 South-East Asia IPR SME Helpdesk &
The Europe-Malaysia Chamber of Commerce and IndustryAll rights reserved.
• Patents protect inventions and new innovations
• Trade marks protect brands
• Industrial designs protect the appearance of articles
• Copyright protects the expression of an idea • e.g. literary, artistic, musical and dramatic works
• Common law• e.g. protects a person’s goods from being ‘passed off’ as another’s
• Contract law• Know-how and trade secrets
• Confidentiality & non-disclosure agreements (NDAs)
• Competition law• Anti-trust – protects against abuse of dominant position
PR
IMA
RY
SEC
ON
DA
RY
Co-existence of IP rights
27 February 2018Copyright © 2017 South-East Asia IPR SME Helpdesk &
The Europe-Malaysia Chamber of Commerce and IndustryAll rights reserved.
Patent for sliding
mechanism
Trade mark for
Samsung brand
Registered design
for overall shape
of handphone
Copyright for text in manual
Malaysian Legal System
27 February 2018Copyright © 2017 South-East Asia IPR SME Helpdesk &
The Europe-Malaysia Chamber of Commerce and IndustryAll rights reserved.
• Common law, based on UK (with Australian influence). Constitution also provides for Syariah (Islamic) law
• General compliance with most IP treaties• some inconsistencies e.g. Trade mark and design right terms operate from priority date (if claimed)
• Fused legal profession, like US, but IP agents separate, like UK.
• Ministry of Domestic Trade enforcement officers empowered to raid premises and seize goods which infringe trade marks or copyright
• IP cases heard in dedicated High Court, typically within 12-18 months
• Appeal stages to Court of Appeal (three judges) and, with leave, to apex Federal Court (five judges)
• Adversarial system, no jury trials
Administration of Malaysian IP
27 February 2018Copyright © 2017 South-East Asia IPR SME Helpdesk &
The Europe-Malaysia Chamber of Commerce and IndustryAll rights reserved.
• IP matters administered by Intellectual Property Corporation of Malaysia (MyIPO).• Internal patent examination - examiners typically have technical background.
• Member of PCT since 2006
• Expected to join Madrid Protocol soon
• General compliance with CPTPP (successor to TPPA)
• Unusually strong Utility Model type protection (known as ‘Utility Innovation’)
• Voluntary Registration of Copyright
• Annual Filing Statistics (approximate)• 8,000 patent applications (in top 25 of world)
• 40,000 trademarks
• 1,800 Registered Designs
IP Registration: Patents
27 February 2018Copyright © 2017 South-East Asia IPR SME Helpdesk &
The Europe-Malaysia Chamber of Commerce and IndustryAll rights reserved.
• Protects invention – solution to a specific problem in the field of technology
• Applications usually in English
• Patentability exclusions similar to UK• e.g. Business methods, medical methods, but not software
• Published after 18 months, then examined• In-house local examiner, often refer to examination reports in other jurisdictions
• Only 2 months to reply (can extend for extra fees)
• Several acceleration options (PPH [JPO/EPO], ASPEC, Expedited)
• Modified examination = alternative to Substantive examination• Application granted on basis of granted patent in other jurisdiction, namely AU/EP/GB/JP/KR/US
• Inter-convertable with ‘Utility Innovation’ application• unusually strong as fully examined, novelty only, 20 year term
• Term = up to 20 years from filing date (if filed on/after 1st August 2001)• if filed before 1st August 2001, the maximum term is the longer of (a) 20 years from filing date; or (b)
15 years from grant date
• renewal fees paid on anniversary of grant date not filing date
IP Registration: Trade Marks
27 February 2018Copyright © 2017 South-East Asia IPR SME Helpdesk &
The Europe-Malaysia Chamber of Commerce and IndustryAll rights reserved.
• A mark (word, logo, graphic) capable of distinguishing goods/services of one proprietor from those of another
• Non-traditional marks not yet allowed
• Examined on absolute grounds and relative grounds• Examiners appear to be quite pedantic at present, often raise objections
• Published for opposition• registered if no objections after 2 months
• Application may be deemed ‘abandoned’ if procedure not completed within 12 months
IP Registration: Industrial Designs
27 February 2018Copyright © 2017 South-East Asia IPR SME Helpdesk &
The Europe-Malaysia Chamber of Commerce and IndustryAll rights reserved.
• Protection relates to shape, configuration, pattern or ornament applied to an article by any industrial process
• Require worldwide novelty for applications filed on or after 1st July 2013
• Examined on formalities only (unless clearly lacks novelty)• Examiners appear to be quite pedantic at present, often raise objections
• Relatively high official fees, dependent on number of views to be published
• Usually registered within 6-9 months
• Protection can be quite limited and specific
Poll I
• IP lessons learned - What can be patented?
1) A confidential contract between McDonalds and their supplier
2) Huawei’s new modem which significantly increases internet connection speed
3) The external appearance of the new iPhone
4) Ed Sheeran’s latest hit song
5) The new Microsoft Windows logo
27 February 2018Copyright © 2017 South-East Asia IPR SME Helpdesk &
The Europe-Malaysia Chamber of Commerce and IndustryAll rights reserved.
IOT Case Study
27 February 2018Copyright © 2017 South-East Asia IPR SME Helpdesk &
The Europe-Malaysia Chamber of Commerce and IndustryAll rights reserved.
• A,B,C = Broadcast data receivers (satellite TV decoders) connected to internet
• Electronic Program Guide (EPG) includes ‘recommender’ function
• Receive (and transmit) program recommendations from friends or third parties with similar viewing habits
A B
C
US7571452B2 – filed 13 Nov 2001; granted 4 Aug 2009 – claim 1:
1. A method for recommending one or more available items to a user, comprising the steps of:
generating a user recommendation score for at least one of said available items that reflects a history of selecting said one or more items by said user;
receiving a selection of at least one third party recommender from said user;
selecting from said at least one selected third party recommender at least one third party recommendation for said at least one of said available items that reflects a history of selecting said one or more items by said at least one selected third party recommender;
generating a third party recommendation score for said at least one of said available items based on said selected third party recommendation; and
Using a computer or other calculating device to calculate an adjusted recommendation score for said at least one of said available items for said user, wherein said user recommendation score is adjusted based on said third party recommendation score.
IOT Case Study
27 February 2018Copyright © 2017 South-East Asia IPR SME Helpdesk &
The Europe-Malaysia Chamber of Commerce and IndustryAll rights reserved.
When to apply for IP?
27 February 2018Copyright © 2017 South-East Asia IPR SME Helpdesk &
The Europe-Malaysia Chamber of Commerce and IndustryAll rights reserved.
• Patent / Design – critical to apply before invention is made public • conference, publication, sales, etc
• Anything public before application date may be considered against registrability of application
• Exception – patents in Malaysia allow 12-month grace period to self-disclosure
• Trade Mark – can apply later, but consider clearance searches before brand is built up• ‘If it’s worth stealing it’s worth protecting’
• Copyright – n/a (automatic)
• Consider Non-disclosure agreements where appropriate
• Sometimes trade secret may be better?
• Seek professional advice early!
Question & Answer
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The Europe-Malaysia Chamber of Commerce and IndustryAll rights reserved.
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