Astronautic Technology (M) Sdn. Bhd. All rights reserved, 2011, ATSB ® Malaysias Evolution to the...

Astronautic Technology (M) Sdn. Bhd. All rights reserved, 2011, ATSB®

Malaysia’s Evolution to the Next Phase of Sustainable Space

Development

Presentation

Astronautic Technology (M) Sdn. Bhd.All rights reserved, 2011, ATSB®

Table of Contents

• Introduction

• Financial Evolution of the Space Industry

• Factors Influencing the Commercialisation of Remote Sensing

• Way Forward


Introduction


ATSB® main current activities in the upstream and spin-off space technologies

Scope of ATSB®


ATSB® Milestones

2000TiungSAT-1 was launched Malaysia’s first satellite

2001MACSAT(now known as RazakSAT®) was announced as Malaysia’s next satellite to be launched

2011CubeSAT & InnoSAT to be launched

Near Future & Beyond

RazakSAT-2 & other small satellites

2009RazakSAT® world 1st remote sensing satellite launched into the Near Equatorial Orbit (NeqO)

2008Malaysian Cabinet approved COMMSAT


Malaysian Involvement in Space Development

• Malaysia is a producer of space technology but needs to continue to develop its technological competitiveness and commercialisation implementation

• Development so far is focused on Remote Sensing Satellites

• Factors complicating development and implementation– Indigenous subcomponent manufacturing is still complicated

due to a lack of depth in the underlying local industry– R&D takes a long time to complete, things out of expectations

can and will occur– The pioneering spirit needs to be further nurtured in Malaysia

as it is still difficult to accept calculated risk

• Despite these problems, technology Development of Space Technology in Malaysia has been successful


Financial Evolution of the Space Industry


Comparative of Remote Sensing Revenue vs Communications

• Interesting conclusions can be derived by comparing Space Revenues from Space Remote Sensing and Communications

• Comparative of Value of Studies– State of The Space Industry, 2005

• Prepared for International Space Business Council by Futron Corporation

– State of the Satellite Industry Report,2010• Sponsored by Satellite Industry Association prepared

by Futron Corporation


Year 2004 2005 2006 2007 2008 2009

Forecast 37,288.00 43,004.90 49,139.70 55,114.10 59,243.20 64,958.90

Revenue 35,800.00 41,300.00 48,900.00 57,900.00 68,100.00 75,300.00


Year 2004 2005 2006 2007 2008 2009

Forecast 583.1 653.0 739.0 798.8 859.6 953.3

Revenue 400.0 500.0 400.0 400.0 700.0 1,000.0


Inference 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 Market

• This can be inferred that the reactions of the Communications Market is more predictable

• Why is this?


Competitive Study on Remote Sensing Business - Partial or ComprehensiveMany of the researches in the Space Borne services area have focused on:

(a)Technical, scientific and policy issues (b)The development/public-private funding and social benefits(c)Very few studies have been conducted on the marketing/business aspects of the fast developing and advanced technology based business of Spaceborne Remote Sensing

The 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.


Remote 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


Factors Influencing the Commercialisation of

Remote Sensing


Remote sensing: External factors (macro)

Environment

Recent development in climate changes lead to delay in response time

Factors that require market to evolve


Politics vs Technology

Political systems on effectiveness improving society

Effe

ctiv

enes

s of

tech

nolo

gy im

prov

ing

soci

ety

wel

lbei

ng

Champion in Technology

RelevantAdding valueMaking changes

Tools for decision making

Champion in Politics

Budget


Major 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 recession– Space Development is still very capital Intensive– Business Case for Remote Sensing generally still

unproven but must move away from subsidies– Long time for Return of Investment

• Different 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


Barriers to Commercial Investment

The high cost of entry requires several rounds of large financing. Contradictorily

1)Equity although can provide high value are classified as risks2)Investors are reluctant to provide loans without cash flow or other collateral to secure them3)Finally, 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.


Final Thoughts


Final Say• The path to development is not easy nor straightforward. Technological

Challenges are always there– For developing Nations, the survivability of space programmes can be

called into question by just a few failures despite large successes

• Presently to create a sustainable economic space programme is key– Developed Nations have different space economic ecosystems – Multipart tariffs consideration to ensure sustainable growth– Financial Challenges are a concern for emerging space countries and

can be the kiss of death that require continuous support from the government

• Joint Collaboration Development between Developing Nations– Indigenously Developed Technology can be incorporated to

programmes increasing partners local content contribution– Partners also help programme validation by contribute financially– Supported by Public Finance Investment leveraging political & social

recognition with the mission beneficial to the people


Thank You

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