This is the transcript of the interview I did with Joanne Lim from EXPOMAL, the organisers of IGEM 2011 and my thoughts on Green Technology today.
1. How would you describe the green tech (GT) you are involved in? What is it? What makes it green and how does it impact the environment?
I am involved in a field called bioplastics, an innovation which basically moves away from traditional plastics. Bioplastics can be divided into 3 categories, treated plastic, biobased, and compostable. The treated plastic category is where we take traditional plastic and add an organic additive which would enable plastic to biodegrade naturally when disposed in a landfill environment.
As for biobased plastics, the material is derived from a renewable resource, in our case it is corn starch, which is then mixed with conventional plastic. By doing so, we are able to reduce the carbon footprint of our product by up to 50%. This is especially helpful for countries that incinerate their waste and seek to reduce their carbon emissions. Finally, there are the compostable products, where they would naturally compost in an industrial composting facility in 180 days.
2. When did your interest in this area start?
Working for a company that manufactures disposable food and packaging beverage products, we see our products being used on a daily basis. Slowly, it begins to sink in how plastic much we actually use and there is a need to make a change, in order for the business to be sustainable both financially and towards the environment. So in 2009, we decided to embark on a journey to find an alternative, and we developed a partnership with a bioplastic supplier from China. So in November 2009, JASA Eco was born.
3. How did you develop the product/company from an idea to a commercial viability?
The product range we conceived was a relatively straightforward one. People use plates, bowls and cutlery all the time, so the first step was to do for a direct replacement, by introducing our first range which was the biobased range of product. We were looking for something more commercially viable, using the green aspects of the product as an unique selling point. However, development of the product, especially in Malaysia, is no mean feat as the general public still has a certain amount of apathy towards eco-friendly products, especially when they come at a premium. Along with our suppliers who double up as our partners, we have persevered and slowly but surely opportunities presented themselves. With plastic prices linked to world oil prices, the relative stability of bioplastic pricing is a great selling point for those who want to bring their spending under control. Now we have enquiries stemming out of the United States, Brazil and Australia for our product, which has been extremely positive.
4. Did anyone (govt/organization/resource centre) assist you in making this happen? If yes, please share with us who and how they helped.
We did not receive any government assistance. We had applied for funding through KeTTHA, MITI and MIDA to no avail.
5. Ball-park estimate on your investment so far?
From 2009 to date, we have spent between RM1.5 to RM2 million for the research and development of the product, advertising and promotion, press launches, Capital Expenditure, modification and man hours on the project.
6. What would be a successful ROI for you? Is it in terms of monetary value or market outreach?
There are two things that I would like to see. First would be the acceptance of our products into the mainstream market. Secondly, it would be that bioplastics grow to take up a substantial portion of our turnover, as more and more people make that transition. The period we are looking at would be 5 years, meaning that by 2014, we should have successfully recovered our investment and grown to the business to a stage where our bioplastic sales would equal or exceed our plastic sales.
7. How do you see the growth of GT in your industry sector?
Green technology is growing rapidly in our industry. Obviously, it is still not a fair fight as compared with plastic, but with bioplastics posting a 20% year on year growth, the future of bioplastics is certainly looking up.
8. From the time you started till now, how would you assess your competitors? Are there more players in the market now?
We believe that we would have an advantage as we started the process much earlier than our competitors. The bioplastic market is not like the plastic market, in the sense it is not a commodity product. It is a specialized market which requires specialized knowledge.
Despite this, some other competitors have merely tried to be opportunistic and market normal plastic products as bioplastic to dupe the buying public. In respect of this, the enforcement for biodegradable or eco-friendly products must improve, especially in Malaysia, in order for eco-friendly products to have a genuine opportunity to survive. Yes, it would be accurate to say that there are more players in the international bioplastics market, but whether or not they are genuine is left to be seen.
9. What do you need to take this innovation/endeavour to the next level?
Obviously, the first thing we need is for the public to respond positively to our product and take a pro-active role to ensure bioplastics can survive. Despite all the environmental arguments for the propagation of bioplastics, we still live in a market economy reality, where the consumers are king. Environmental legislation and the lead from governments and corporate businesses must be the key forces to drive the demand for these products, including introducing incentives to the public and companies to use green products. Regulation must be tight, like in the European Union or the United States, in order to protect the consumer against fraudulent claims or product misrepresentation.
Naturally the other thing which would help is direct funding from the federal government in the form of grants for research and development, not merely soft loans which banks would have to provide the majority of financing. R&D is essential for product development and finding new ways to ensure that we are able to develop the technology further and make it more economically viable for the market to afford. This would ensure long term and sustainable growth for the eco-friendly product market.
10. How do you think the GT Ministry in Malaysia can improve on their role in assisting innovators/entrepreneurs like you?
Despite Green Technology Funds and the like promised by the Prime Minister, I hope that the GT Ministry would be able to see that the companies which require funding to further their businesses are not merely start ups, but businesses which are currently engaged in producing other products, but using the profits and proceeds to fund green technology initiatives. I believe that you should not simply throw money to any kind of idea just because it’s ‘Green’ but really it should go towards workable, marketable products which can be successfully commercialized. It is about the small players as well, not just for the solar panel and wind turbine makers of the world. Bioplastics can be used over such a wide range of applications, but its true potential can be unlocked with appropriate backing and funding.
Additionally, the ministry should propose to parliament to pass environmental legislation which promotes the public and industry to use green products and services, as this is in the interests of businesses going forward, in order to become a more sustainable, greener country as a whole.
11. What would your advice be to companies/individuals who are keen to pursue GT as a viable commercial business niche?
Green Technology is an exciting new venture for any company, and it is one which is steadily growing. However, if you are to do it yourself, make sure you have enough financial backing, the right people and partners to help with your research and product development. You should have a good idea about the market which you would have to market it in and also assess your risk of going in. A lot of money would be spent on promotion and education to enable the market to see the value of the product. On top of this, the products must be price competitive. Patience is the name of the game, and this is a long term initiative, and to approach it as a quick source of revenue generation would be a grave mistake.
12. What have been your greatest challenges so far? In your darkest moments, what was the driving factor to persist in this line?
Since the whole concept is a new one, although I am technically selling cutlery, plates and bowls, it is not so simple. Challenges crop up at every corner and smooth sailing is hardly an option. Because of the additional cost and the amount of international legislation which regulates green products, buyers are normally reluctant to commit.
The greatest challenge is really when it comes down to selling the product. You have to go through piles of information, test reports and then when you think you have given the customer all the information they require, they hesitate to decide because they are skeptical it can sell.
There are long periods where you feel you are running around and getting nowhere fast and where a deal can take over 12 months to conclude. However, despite all of this, optimism can be found when we look into the market. Change is happening, although at a slower pace than you hope.
Nevertheless, you need to have the drive within you, and the passion to make the change for the good of the industry and for the good of the environment. If you do not believe that you are able to make a positive impact on the environment and if you do not genuinely want to initiate change, going into green business is a challenge.
13. In your opinion, which country is the leader in GT?
The region of the globe which is showing the highest promise in Green Technology would be the European Union, and I can single out Germany as the country which is the most progressive in making the change. Other countries who’s efforts are commendable are Canada, Switzerland and even the Maldives, the little island state which was the first country in the world to become carbon neutral.
14. How do you think Malaysia can achieve world recognition as a leader in GT innovation?
I believe the first step is to take it seriously. Despite a dedicated ministry and the prime minister’s announcements, there is so little progress in this country with respect to Green Technology. If the Government never makes it a priority, there will be a constant reluctance for industry to change. Unfortunately, we cannot rely on companies or the public to safeguard the interests of the environment.
For years, NGOs have been screaming at the top of their lungs for change to take place, but change can only take place if the government implements the infrastructure and enforces their use. We are so privileged to live in a country with 500 million year old rainforest, but tragically our major cities are covered with smog. When I drive down the highway and see a lorry billowing out black smoke which has been approved by Puspakom, I believe the government is more interested in the money and just pays lip service to the environment.
We need new waste management projects, recycling initiatives, compost facilities, reforestation activities, stopping development on virgin rainforest and introducing heavy fines and penalties for open burning and littering. We have to move away from petroleum based industries, step away from coal and oil to generate electricity, finance alternative renewable energy projects, introduce safe and green public transport, introduce incentives to develop and market green technology, and legislation forcing companies to cut their carbon footprint. Only then can we stand up and say we are making in-roads to being a world leading in Green Technology. It would be fair to say, we have a long way to go.
15. Are you excited about the future?
The future of Green Technology is certainly very exciting, but what I would hope for is more support. We want to make a change in the world for the better, so our future generations can inherit a world which is clean, green and beautiful instead of a gigantic garbage dump as it seems to be turning into now. What the future holds is uncertain, but I am quietly optimistic people will begin to wake up to reality.
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