prakash chandran | president & ceo, siemens … 18, 2013 · prakash chandran | president &...

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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

Restricted © Siemens AG 2013 All rights reserved.

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


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


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


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


Prakash Chandran


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


Prakash Chandran

Research

Institutes


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


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


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


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


Why it is important

2013-June-18


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


How to make it work

2013-June-18


Prakash Chandran

Thank you.

prakash chandran | president & ceo, siemens … 18, 2013 · prakash chandran | president &...

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