4Scope of ATSB®ATSB® main current activities in the upstream and spin-off space technologies
5ATSB® Milestones 2001 2000 2008 Near Future & Beyond 2009 2011 RazakSAT-2 & other small satellites2009RazakSAT® world 1st remote sensing satellite launched into the Near Equatorial Orbit (NeqO)2001MACSAT(now known as RazakSAT®) was announced as Malaysia’s next satellite to be launched2000TiungSAT-1 was launchedMalaysia’s first satellite2008Malaysian Cabinet approved COMMSAT2011CubeSAT & InnoSAT to be launched
6Malaysian Involvement in Space Development Malaysia is a producer of space technology but needs to continue to develop its technological competitiveness and commercialisation implementationDevelopment so far is focused on Remote Sensing SatellitesFactors complicating development and implementationIndigenous subcomponent manufacturing is still complicated due to a lack of depth in the underlying local industryR&D takes a long time to complete, things out of expectations can and will occurThe pioneering spirit needs to be further nurtured in Malaysia as it is still difficult to accept calculated riskDespite these problems, technology Development of Space Technology in Malaysia has been successful
8Comparative of Remote Sensing Revenue vs Communications Interesting conclusions can be derived by comparing Space Revenues from Space Remote Sensing and CommunicationsComparative of Value of StudiesState of The Space Industry, 2005Prepared for International Space Business Council by Futron CorporationState of the Satellite Industry Report,2010Sponsored by Satellite Industry Association prepared by Futron Corporation
11Inference of Comparative Analysis The Forecast and Revenue of the Communications Satellite Market growth matches to a far better degree than that of the Remote Sensing MarketThis can be inferred that the reactions of the Communications Market is more predictableWhy is this?
12Competitive Study on Remote Sensing Business - Partial or Comprehensive Many of the researches in the Space Borne services area have focused on:Technical, scientific and policy issuesThe development/public-private funding and social benefitsVery few studies have been conducted on the marketing/business aspects of the fast developing and advanced technology based business of Spaceborne Remote SensingThe other class of literature on the remote sensing market potential is the survey reports by global consultancy firms which list out the projected market potential quantities but focus very less on the factors contributing and the methodology adopted.
13Remote sensing: Pseudo vs Real Remote Sensing markets are less predictable than Communications market because the demand is “pseudo” ie dependent on governmental changing requirements (for example war)Also, sales of remote sensing images for decorative art is a real but insignificant market.Remote sensing products are likely to sustain themselves in commercial markets only to the extent they improve the productivity of customers e.g. by cost avoidance or increase revenues through demand or consumer driven
14Factors Influencing the Commercialisation of Remote Sensing
15Remote sensing: External factors (macro) PoliticalRestriction due to security concernSocio culturalChanges of the future requirement may have adverse effect on the marketTechnologicalNew technological advancement lead to under utilised of data collected /archive - costEnvironmentRecent development in climate changes lead to delay in response timeFactors that require market to evolve
16Politics vs Technology Champion in TechnologyTools for decision makingEffectiveness of technology improvingsociety wellbeingBudgetRelevantAdding valueMaking changesChampion in PoliticsPolitical systems on effectiveness improving society
17Major obstacle: Financial Challenges To survive in the future, development of economically sustainable space remote sensing programmes is necessary:Remote Sensing is considered a luxury in a recessionSpace Development is still very capital IntensiveBusiness Case for Remote Sensing generally still unproven but must move away from subsidiesLong time for Return of InvestmentDifferent types of capital come with different levels of return on investment (ROI) requirements, depending on their tolerance for risk. A potential investor is interested in managing his total risk exposure through the life of a project, not just at a particular stage
18Barriers to Commercial Investment The high cost of entry requires several rounds of large financing. ContradictorilyEquity although can provide high value are classified as risksInvestors are reluctant to provide loans without cash flow or other collateral to secure themFinally, as the investment matures, loans become easier to get and equity becomes more appealing.Given that most remote sensing revenues are derived from value-added products, not the raw data, commercial remote sensing firms have a strong interest in exploring vertical integration and strategic partnerships whereby the lower returns from providing data need to be counterbalanced by higher returns from value-added products.
20Final SayThe path to development is not easy nor straightforward. Technological Challenges are always thereFor developing Nations, the survivability of space programmes can be called into question by just a few failures despite large successesPresently to create a sustainable economic space programme is keyDeveloped Nations have different space economic ecosystemsMultipart tariffs consideration to ensure sustainable growthFinancial Challenges are a concern for emerging space countries and can be the kiss of death that require continuous support from the governmentJoint Collaboration Development between Developing NationsIndigenously Developed Technology can be incorporated to programmes increasing partners local content contributionPartners also help programme validation by contribute financiallySupported by Public Finance Investment leveraging political & social recognition with the mission beneficial to the people