Malaysia’s clean energy industry is in a state of flux.  Ambiguity remains with the end of the Net Energy Metering (NEM) 2.0 scheme and the entry of big players.

Here we unravel some of the scenarios happening within the clean energy sector in Malaysia and reveal an independent player’s perspective, even amidst rising COVID-19 cases which have impacted all businesses.

End of Net Energy Metering Scheme (NEM) 2.0 signals uncertainty

Since January 2019, Malaysia’s current NEM2.0 scheme has allowed excess solar photovoltaic (PV) generated energy to be exported back to the grid on a “one-on-one” offset basis, meaning full returns on every kiloWatt generated. Its quota of 500 MWp ends December 31 this year.

It is highly beneficial to end-users operating in industrial, commercial, residential and agricultural sectors as excess solar energy will be directly offset to one’s electricity bill. The excess energy will then be recorded in credit form with the validity for 24 months.

Suffice to say, the uptake of NEM has grown steadily resulting in 102 megawatts (MW) generated in 2019, compared to only 27.8MWp produced in 2016 and 2018.

However, though NEM3.0 has been brought up, no further details were released. Are businesses better off signing up for NEM now and enjoy its perks or are they better off waiting to see details of its next iteration?

Household names join the clean energy bandwagon

Big players who see potential in clean energy are jumping on the bandwagon, as they see the possibility that it could one day replace traditional oil and gas.

The national oil company, Petronas, is already pivoting to clean energy after it posted an MYR21 billion (US$5 billion) loss due to weak oil prices.

Also Read: “We want to make the clean energy space more dynamic”: Electrify CEO Martin Lim

In addition, TNB has also made its move. Their latest ventures are a gain of majority equity interest in one of the largest solar platforms in the UK, Vortex Solar, and the commencement of operations of its second large-scale solar (LSS) project in Kedah just this month.

Going into Smart Energy Management

With uncertainty looming in all directions, how do independent players such as Plus Solar operate within the increasingly competitive clean energy landscape as uncertainties caused by the pandemic?

As a clean energy solutions provider which began with an investment of MYR100,000 (US$24,000) in 2012, it was with much toil, sweat and tears that we moved up to MYR150 million (US$36 million) revenue in just eight years.

Now 150 people strong, FYR 2020 was a big year for us as we recorded a 200 per cent jump in revenue but the pandemic came forcefully and created uncertainty within the ecosystem. This made us realise the need to go beyond traditional solar to survive.

In one of our key pivots which was accelerated by the pandemic, we took to tech, not limiting our offerings to just traditional solar solutions. We were able to create a smart energy performance management system (EPMS) called Source.

Though it was in the works for a few years, the pandemic showed again to be the true catalyst, expediting its roll-out to just weeks after the movement control order (MCO).

Source makes use of AIoT (AI and IoT), through sensors feeding real-time data to a central computer that learns and adapts, then eventually making smart, automatic energy decisions possible for any building. It is akin to a Fitbit, always monitoring and making improvements, and in this case, it is to a building’s energy usage performance.

Since then, many of our clients have managed to save up to 25 per cent of their operational costs by leveraging this system, and either save on bottom lines or channel their funds to more urgent areas of their businesses.

The next iteration

We have also been actively seeking to educate clients about the end of the Net Energy Metering (NEM) 2.0 scheme and take advantage of its 500 MWp quota, before it ends this December 2020.

Barely three months to go to the end of the year, NEM applications must be approved by year-end to qualify for the one-on-one compensation basis for surplus solar energy. It takes approximately 60 days for an application process thus applicants have barely 30 days before the end of the year to take advantage of the NEM2.0 scheme.

Also Read: Intelligent energy management startup wins She Loves Tech Singapore 2019

The offset of excess energy generated to the national grid is the main benefit to end-users, from residential to those operating in energy-intensive applications such as the industrial, commercial, and agricultural sectors.

Users can look forward to reduced electricity bills by generating one’s own clean energy, an increase in property value, as well as a reduction in carbon footprint.

In the months following the movement control order caused by the COVID-19 pandemic, we have successfully secured many notable brands who are taking advantage of the NEM quota to secure their cost savings and hedge against escalating electricity tariffs. Any brands that wish to ensure the same for themselves are encouraged to act on this opportunity for long-term benefits.

Though it will end, SEDA has announced the next version of this scheme, NEM3.0, though its details are not. We hope it comes as close to the same one-on-one offset basis as before so that solar energy is made even more accessible to Malaysians.

Seizing opportunity in uncertainty

Truth be told, the clean energy industry has never been more vibrant – with competition rife, end consumers will be the beneficiaries of price wars.

While we are just one of the many players here, we have managed to remain relevant to our clientele through constant innovation in our “Fitbit for buildings” as well as seizing opportunities by our push towards securing the NEM quota for clients before the end year.

These past months, we have received very good feedback from customers on our innovation with notable clients such as Tan Kian Huat Fishery and Shell MarkMaju who have experienced savings of up to 25 per cent when it comes to heating, ventilation and air conditioning (HVAC).

What the industry begs for is a supportive ecosystem, which we hope to see rolled out by the Sustainable Energy Development Authority (SEDA), with NEM 3.0 announced officially as well as further positive allocations and policies announced in the upcoming Budget 2021 by the Government.

As the pandemic goes on, Plus Solar has seized opportunities through pivoting, always towards client needs. It is clear that willingness to adapt is the answer to keeping and gaining market share for industry players of any size.

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2020 has set in place a different reality. Suddenly, there was no more waking up early and rushing for a last-minute flight, riding through a new city in a blur of cab rides from meeting to meeting, before packing for the first flight back the next morning.

Working from home (WFH) is the new normal, so how do you transpose that real-world interaction and chemistry to a video call?  How do you Pitch from Home?

Founders get anxious about this when they realise they’re not going to see investors at a conference or networking event. Ironically, with significant time saved from commuting and flying, many investors actually have more time now for meeting founders.

But it doesn’t mean that getting a meeting will be easier. Founders still have to cut through a barrage of webinar and Zoom invites. So here’s my quick advice on getting a “yes” to a meeting, and making it a home run.

Getting the Meeting

Make it an easy “yes”

Investors can’t take every meeting request. That’s why warm introductions are important. I am immediately more keen if you are referred to by another founder or investor whom I already respect.

Look through your name cards, spend time reconnecting with founders who have raised Seed and Series A rounds, and earn the right introductions.

If you’re attending a virtual webinar, ask well-researched questions and connect with the investor on social media after. If you’re reaching out cold, I’m much more likely to respond if the context connects it to a webinar I just participated in.

Also Read: Getting your story straight with a pitch deck flow

Send your deck

Before an investor will take a meeting, they may need to qualify a few things first. Does the stage of your company align with their investment strategy? Does the product/solution fit within the fund’s thesis? Is there any conflicting overlap already in the portfolio?

Your deck will help answer these questions quickly for the investor – so if they ask for a deck, don’t feel like you lost an opportunity to pitch, realise it can be a door opener.

Before the Meeting

Really get to know your investor

Once you’ve secured a meeting, our Indonesia-based Associate, Andri Wardhani, recommends analysing the fund’s investment mandate (i.e. geographical coverage, ticket size, stage, space). Look up podcasts, articles and interviews by the team to find patterns of their interest.

If you’re a brick and mortar startup, get creative

Participate in virtual industry roadshows, take warehouse videos and send product samples to your prospective investors. Anything to help them understand your day-to-day operations (short of a visit to your facilities).

Rehearse team dynamics

A startup’s team dynamic and culture reflect more on the potential ahead, more than any deck. Try to replicate your culture online. Coordinate early on who presents at which parts, and who answers certain questions.

Invest in a good quality setting

A little viewing comfort goes a long way. If you’re doing lots of calls, you may want noise-cancelling headphones.  Make sure you have good WiFi (or take advantage of Zoom’s phone dial-in feature to pair it with your video).

Take five minutes before every meeting to ensure that your set-up is working.  I also recommend if you’re gonna pitch, watch a few funny videos just beforehand to pick up your energy and get your brain in a positive mood.

Also Read: Pitch deck fundamentals: What you need to include to build an effective one

During the Meeting

Read the room

In a physical space, you can feel the energy of the room — even if you’re not consciously aware of it. Body language, eye contact, nodding and vocalisations are all clues to whether a founder is nailing the pitch.

These are mostly lost in online meetings, where you don’t always get to see or hear behind the screen. And when you are unable to grasp when an investor is engaged or distracted, it is easier to miss the mark.

Uses pauses

To make an online pitch engaging and conversational; keep it short, sweet, and pause to check in after every major point. Our Senior Associate, Jeffrey Chua, a self-proclaimed actor, advises founders to think of pitching as a play of seven acts (market, problem, solution, product, traction, revenue model, and team).

Have a short intermission between each act. Take a breath and gently ask investors if they have any questions. Address them immediately instead of leaving them to the end of the presentation.

Closing the Meeting

Always ask about the next steps

Before the end of every call, be sure to inform the investor of your fundraising time frame and your planned process. Find out what the investor’s usual process is, and ask how they will move forward. Their answers should give you a good gauge of how interested they are, and if they think you’re a good fit.

I hope it comforts founders to know that investors don’t necessarily prioritise in-person meetings in the investment process. Even before the lockdowns began, it was quite common in this region to meet mostly online – and even back founders without meeting them in person.

And as the pandemic wanes, I can imagine the industry retaining many aspects of the “new normal”. There could be much lower expectations of in-person meetings as investors and founders grow comfortable with building relationships through Zoom calls and Whatsapp messages.

Bottom line is: a great team with a great product wins every time. Keep the tips above in mind, keep working at it, and investors will be asking for your time.

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2020 has been a rollercoaster year for businesses in Singapore with COVID-19. Since PM Lee Hsien Loong’s announcement for the Circuit Breaker (CB) on April 3, there have been strict, but necessary restrictions put in place that has affected the way we live and work.

During this period where many modes of operations that were offline in nature had to be curtailed, certain industries such as aviation and tourism have taken big hits. A recent report in August stated a -5 to -7 per cent drop in Singapore’s GDP, as the country slips into a technical recession, making 2020 the worst performing year in the nation’s history.

Manufacturing output went down 6.7 per cent in comparison to 2019, while the unemployment rate rose from 2.4 per cent in March to 2.9 per cent in June, and retail sales dropped 27.8 per cent on the year in June as well. 

However, other businesses such as e-commerce and delivery platforms enjoyed a spike in sales, proving that the pandemic isn’t bad for all business. The central theme that has been essential for business continuity and success during this period is the ability to go digital and pivot.

Local company EmpatKali enables interest-free instalment payments for offline and online transactions with a “buy now, pay later” model; has been bought over by Australia-based Afterpay. While mental wellness platform Safe Space has been making waves with online counselling as a viable option and strong supplement to the traditional face-to-face approach.

Heading into 2021, businesses that took a passively defensive stance earlier on are realising that the battle with COVID-19 will be ongoing, and the new normal is being defined as businesses react to new developments. As such, businesses have to take the initiative.

Also Read: How e-tailers should prepare for Singles’ Day amidst COVID-19

For entrepreneurs who are weathering the storm, or for those who are thinking of starting this journey, here are five things to consider before taking the plunge.

Get your house in a legal order

Establish a good legal foundation for the business. Shareholders’ agreements, founders’ vesting agreements, and IP assignment agreements are some of the things that need to be made clear to keep things transparent, and for the key people involved to be accountable.

Just as it is important to know how you’re getting your capital, knowing the responsibilities, obligations, and liabilities will make things easier in the case of an exit or dispute.

Understand your financial capital

The Singaporean government has been proactive in making sure existing businesses can stay afloat. Upwards of S$100 billion (US$73 billion) through four stimulus packages this year, and an additional S$5.8 billion (US$4.2 billion) heading into Q1 of 2021 to support the economy.

Before crafting a capital budgeting plan, be sure to educate yourself on what grants or schemes are available to you. In good times this process for a business would be akin to a marathon, though the pandemic climate makes it more challenging, the principles are the same – plan for the long run.

Do not be hasty in deciding on a capital source without weighing your options. Though raising funds through investors and VCs has been a route that startups, keep in mind that not all investor money is good money. Know what you’re getting into, and what is expected of you if you decide to take that round of funding. 

Go at a workable pace

WFH (work from home) arrangements has become the default working arrangement that has led to additional challenges.

A recent report by Limelight Networks stated that 74 per cent of Singaporeans are more productive with WFH arrangements, but that came with longer working hours. Only 32 per cent of Singaporeans surveyed wanted WFH to be permanent, and 51 per cent preferred the flexibility to choose to be in the office or at home.

Also Read: Asia’s food delivery potential is set to unlock post-COVID-19. Here’s why

With WFH, entrepreneurs need to understand that different home setups and conditions make the WFH experience different. As exciting as starting a new business can be, the risk of burning out with extended working hours and always being connected is very real, and WFH can be rewarding, and not disruptive.

Be clear with your working hours, treat yourself, your partners, and your colleagues well. As with financial capital, plan for the long run.

Check your alignment, then scale up

Founders’ discord is real, between 60 per cent to 70 per cent of startups fail due to misalignment between founders and their teams. We have worked with startup founders who say one thing when they are together, but have completely different sentiments when approached alone.

Address whatever irks or bothers you. Small annoyances become much more than that if they occur more than once, and when the stakes become higher there’s more to lose that could have been avoidable.

For some startups, the real test begins when they see a degree of success. A common pitfall is when entrepreneurs over-extend themselves. Whether it is through adding new features, new products, or expanding the team, scaling up is not the only way to make a business better. We recommend taking a look at the book Small Giants: Companies that choose to be great instead of big, where there are examples of companies that have succeeded by focusing on being great.

Also Read: Singapore tech entrepreneurs raise funds to help Indonesian daily wage workers during COVID-19

Be ready to adjust, or be ready to quit

Never take things for granted, situations and context will change and taking stock of the situation regularly goes a long way. Like how bubble tea chains partnered with other food and beverage providers resulting in better sales during the period. Moving into the new normal businesses have to be ready to make adjustments when the time calls for it. 

For the businesses who are struggling and might not see any end in sight, the new normal could mean a new beginning, and quitting now to regroup is not a bad thing. In some cases, a full stop comes before the right pivot and could be the very thing that leads to success.

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Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. Become a thought leader in the community and share your opinions or ideas and earn a byline by submitting a post.

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Of all the tech industries, the deep tech industry in Singapore has gathered a large amount of interest from the government in recent years. Earlier this year, the government announced a S$300 million (US$221 million) addition into Startup SG Equity as proof of its support for the deep tech scene.

There are many reasons for this excitement. One of them is because of the technology’s immense potential to solve real-world problems.

Dr Lim Jui, CEO at SGInnovate, defines deep tech as unique, cutting-edge technologies that demand a high degree of specialisation from both its inventors and practitioners. At a working level, it means technologies derived from relatively recent research with the potential for strong intellectual property (IP) protection

These are emerging technologies that could entail elements of AI, machine learning, and blockchain that have the potential to solve bigger issues surrounding the world. For example, medical devices or drugs that can increase lifespan, AI that can forecast natural disasters, or clean energy solutions that can help mitigate the risks of global warming.

“Let’s take Tesla and SpaceX in the US, and Creative Technologies in Singapore as examples. These companies have created industries where none existed before. That’s the power of Deep Tech. SGInnovate’s mission is to pave the way for the next generation of ‘Creatives’, ‘Teslas’, and ‘SpaceX’s’, creating high-growth, intellectually stimulating, and satisfying employment for our future generations,” Dr Lim says in an interview with e27.

Having spent most of his career in the business of innovation, Dr Jui says that he has seen firsthand how Singapore’s deep tech ecosystem has evolved.

“From research being licensed to foreign MNCs, to the emergence of digital startups addressing specific technological problems, to a vibrant community of startups spanning different areas of deep tech. There is now a much greater variety and depth in our startups, making for a richer ecosystem that has attracted more investors,” he explains.

Also Read: Beyond COVID-19: A new era for deep tech startups

While deep tech is a sector that has, over the past year, been largely funded by government organisations due to the volume of investment and risk involved, the tables have turned. Plenty of investors are now taking more interest in the technology.

Currently, SGInnovate has funded many deep tech startups. Some of which include digital therapeutics startup Biofourmis, wireless laser communications startup Transcelestial, and MedTech startup See-Mode Technologies.

To talk more about the state of deep tech in Singapore, Dr Jui shares insights into Singapore as a rising hub for this industry, the organisation’s initiatives to boost deep tech, investor perks, and more.

Why Singapore?

Singapore has all the key ingredients of success for deep tech growth – a strong education system with world-class universities, a robust pool of scientific and technical talent and thought leadership in medicine, finance, and engineering.

Add to this is a friendly business environment that has a track record of strong IP protection, and consistent leadership emphasis and financial support for the startup ecosystem, it is hard not to be bullish about Singapore’s deep tech prospects.

With the increasingly vibrant Singapore startup ecosystem, the overall investment climate and opportunities for deep tech in Singapore is set to grow in the future.

Also Read:  National University of Singapore to spend US$18M to launch 250 deep-tech startups

Investing in deep tech

Deep tech investment is a high-risk, high-return endeavour. Traditional roadmaps for a business model or market conquest may not apply. And that’s on top of the technology risk and typically higher capital requirements.

So due diligence needs to be married with imagination. Yet, the history of science and technology has proven that those willing to take the plunge early will reap the biggest returns.

The best way to attract investors to invest in deep tech companies is to show them that you can do good and do well. You can make money from deep tech investments.

Just as an indication of the investment demand for Singapore deep tech startups, SGInnovate has invested about US$36 million (S$50 million) into about 70 Singapore deep tech startups over the last four years, and these companies have gone on to raise over US$479 million (S$650 million) in venture capital.

I believe we have largely succeeded in demonstrating that high returns can be generated, and we count on a strong and growing network of co-investors both locally and internationally.

It is also worthwhile to note that the Singaporean government is very supportive of investors in the deep tech field. The government had declared a US$221 million injection into Startup SG Equity for deep tech startups during its Budget 2020 announcement.

A career in deep tech for the non-techie

If someone has an interest in a deep tech career but is unsure about where to start, there are talent programmes that they can take part in, to gain the needed technical and industry skills for the deep tech industry.

Even if one comes from a non-STEM background, there are general tech roles (such as in software or UI/UX development) and other business-critical roles available within the industry.

Due to the nature of the technology, technical roles are always essential as they build their solutions and continue to maintain momentum in their technology development roadmaps. But as these startups mature, they will also need to build up their core business functions such as sales, marketing, operations, and legal.

Also Read: SOSV, 500 Startups invest US$2.55M seed round in deep tech startup SEPPURE

It is essential to adopt an entrepreneurial mindset which means always having an open mind to try new things, learning and up-skilling, as well as being flexible and adaptable during challenges.

Be ready to embrace failures, learn from it and restart again.

Upskilling workforce for Industry 4.0

Since the beginning of the pandemic, SGInnovate has been prioritising efforts around creating more deep tech job opportunities to support the community, working closely with partners and government agencies to explore new initiatives.

Some of SGInnovate’s initiatives for deep tech job seekers are:

Summation Apprenticeship Programme: A programme that matches top talent with deep tech startups with projects in emerging technologies such as AI, cybersecurity, IoT, robotics, quantum computing, and more

Infinity Series: A programme for undergraduates looking for roles in deep tech startups.

The New Frontier: A talent showcase in October which offered over 200 job openings in more than 30 startups and organisations.

Power X programme: A full-time traineeship programme for Singaporeans that blends classroom and workplace learning to equip them with skills for a new career in deep tech space.

Founded in 2016, SGInnovate is a private limited company wholly owned by the Singapore government; it aims to build and scale deep tech startups into high potential companies with global impact. Its Deep Tech Nexus Strategy is focussed on adding tangible value to the deep tech startup ecosystem in two key areas: development of Human Capital and deployment of Investment Capital.

SGInnovate seeks to back entrepreneurial scientists through equity-based investments, access to talent, and business-building advice.

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Image Credit: SGInnovate

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Indonesian telecom giant Telkom Group has announced the launch of Batch II, 2020 of its startup incubation/acceleration programme, Indigo Creative Nation (ICN).

Registration is open from October 1 to November 13.

Also Read: Rethinking Telkom Group’s plan to invest in gojek

An on-desk selection process will be conducted by Telkom from November 16-19 and a pitching session from November 24-26.

The programme will primarily focus on six categories — logistics, finance, education, travel & tourism, agriculture and health.

Startups that successfully complete the programme will receive up to Rp. 2 billion (US$130,000) each, besides mentoring and synergy programmes provided by Telkom.

In addition, participants will also get access to 180 million Telkomsel users, 7.5 million IndiHome users and 200,000 corporate customers.

“ICN is our annual initiative with the aim of increasing competitiveness, independence, and national economic growth through the development of a creative digital industry. For Batch II, we will look for startups from six categories, so they can explore digital businesses that have the potential to become new engines of growth. In addition to funding, startups will also get training activities with well-known mentors who we have curated professionally,” said Fajrin Rasyid, Digital Business Director of Telkom.

The first batch 2020 was started in May, and at least 201 startups had registered for the programme. Telkom conducted a screening process to select 35 finalists, of which 18 startups were inducted into Batch I.

Also Read: PrivyID will integrate its service into Telkomsel’s platform

Launched in 2013, ICN has fostered 31,748 digital talents spread across 17 DILos (Digital Innovation Lounges) throughout Indonesia. At least 177 digital startups have entered the programme located at 4 DiVa (Digital Valleys), namely in Jakarta, Bandung, Jogja and Makassar.

ICN’s alumni include PrivyID, Opsigo, Run System, Goers, Nodeflux, Muslim Life, Osman, OnTruck, CyberArmy and Bahaso.

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Image Credit: Telkom Indonesia

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