Can Business and Sustainability Coexist?
Dr. Rezal Khairi on Enforcing Green Practices for People, Planet, and Profit (3Ps)

Dr. Rezal Khairi, CEO of NanoMalaysia Berhad
8 August 2024 | Interview | Sustainability
In our latest exclusive interview, we dig into the mind of the visionary CEO of NanoMalaysia Berhad, Dr Rezal Khairi. With a career that blends academic expertise and industry leadership, Dr. Rezal is at the forefront of Malaysia’s nanotechnology revolution. He provides a candid look into the triple bottom line—people, planet, and profit—highlighting his belief that profitability and sustainability are inseparable. He advocates for practical, long-term sustainability practices and the transformative potential of nanotechnology, reflecting NanoMalaysia’s strategic focus on clean energy (EV) and its spin-off company, NanoTextile.

Join us as Dr. Rezal shares his personal journey from academia to the C-suite, and discusses how nanotechnology is poised to reshape Malaysia’s sustainability landscape, particularly in advanced material for the fashion industry.

Q: Tell us more about Nano Malaysia Berhad projected focus this year.

Dr. Rezal: Around 12 years ago, NanoMalaysia covered a wide range of interests. Our policy paper which covers energy, environment, electronics, food, agriculture, and healthcare wellness. That has led us to invest in nanotechnology ecosystems in those areas to provide value to the industry.

Over time, we became more concentrated. The fourth industrial revolution has pushed us to build local digital economy technologies, including the Internet, nanotech gadgets, and sensors. So we’re deploying innovative agriculture, electric mobility, etc. solutions.

However, we have prioritized clean energy in recent years. This has clarified our future direction. Recent financial interest in electric mobility, hydrogen technology, and green economy has led to different activities, projects, and programs to help Malaysia transition to cleaner energy and net zero by 2050. That sums up Nanomalaysia’s recent focus areas.

Q: With your extensive education journey, could you share a personal anecdote that inspired you to pursue a career specializing in nanotechnology?

Dr. Rezal: I couldn’t contain my enthusiasm for nanotechnology. From my first job, I worked on the academic staff at Tenaga National University for about eight years, focusing on teaching semiconductor courses. Following this, Khazanah, through Yayasan Khazanah, offered me a Ph.D. opportunity, making me the first Ph.D.-level Khazanah scholar supported by the program.

In early 2006/7, the country’s interest in establishing a nanotechnology industry grew, prompting me to respond. I chose nanotechnology for my Ph.D. and specialized at the London Centre for Nanotechnology, University College London.

Upon returning to Malaysia, I worked at Khazanah for a year. During this time, I discovered that the government had reorganized to adopt a more structured approach to the national nanotechnology agenda. One day, I opened The Star newspaper and read about the government’s ten-year NanoMalaysia program aimed at building a national nanotechnology agenda and commercializing nanotechnology. I immediately contacted MOSTI to volunteer for the program. This led to an interview with the NanoMalaysia board, and I eventually became the founding CEO, building the firm from the ground up.

Q: Are there any challenges shifting from an academician to a CEO of Nano Malaysia Berhad (NMB)?

Dr. Rezal: Academic life offers a unique perspective, creating an environment where you can pursue knowledge in different spheres and push beyond the boundaries of what you know through self-discovery and experimentation. However, transitioning to the real world introduces various limits and parameters, such as those found in business.

In the business world, you must consider commercial and financial viability. Are your solutions practical and market-fit? What is their purpose? How do they affect users? What is their environmental impact? Are there sustainability aspects? Are they worth exploring? We ask these questions to recontextualize scientific and logical knowledge into something practical for the real world, benefiting people, the earth, and economic growth, which we call profit.
“The triple bottom line—people, planet, and profit—is crucial to real-world business.Adapting to this requires robustness, agility, and adaptability to transition from the idealistic pursuit of knowledge in academia to creating something beneficial for people and economically empowering the ‘rakyat’.”

Q: How has your professional journey led you to specialize in sustainable practices, particularly within the industry of nanotechnology?

Dr. Rezal: From a previous insight regarding people, the earth, and profit, we realized that profitability and sustainability are inseparable. Sustainability encompasses the broader agenda of maintaining what you’ve developed for the long run. For instance, if you can create something with a long lifespan, you can generate more profit and benefit from it over time.

We and sustainability are inseparable. The processes we use require individuals to run them. Without people, even the best instrument or idea is useless. Sustainable practices are integral to our lives. We procreate to preserve our culture, heritage, and wealth as a progressive nation through our descendants and those we influence. We need to transform these principles into concrete and practical actions so the next generation can enjoy or preserve what we’re doing for a bright future.

Q: In your opinion, what are the most pressing environmental issues we face today, and how do you see nanotechnology playing a role in addressing these challenges?

Dr. Rezal: Decarbonization is often discussed as a means to reduce greenhouse gas emissions. However, it is important to recognize that carbon is a fundamental part of existence and should be viewed as a friend rather than an enemy. Trees require carbon dioxide (CO2) to thrive, and we need to create a balanced approach to managing carbon.

“It is important to recognize that carbon is a fundamental part of existence and should be viewed as a friend rather than an enemy.”

At its core, technology deals with atoms and molecules, enabling us to manage existing carbon in the right forms. Nanotechnology offers a unique approach by allowing precise control of atoms and molecules.

The focus should be on managing carbon positively. Emissions in the atmosphere should be sufficient for trees to thrive while preserving the environment for the long-term benefit of the planet as a whole.

Q: There has been a rise in both consumer knowledge and demand for sustainable fashion in several nations, however the trend is not as prominent in Malaysia. What are your thoughts on this occurrence, and how do you think we may get past these difficulties?

Dr. Rezal: The sustainability of the fashion industry is a complex issue that requires careful management of materials. Material management involves addressing multiple pillars, including the toxicity of materials for the environment, sustainability, and recycling. Key factors include the manufacturing process and sourcing from sustainable sources. Nanotechnology offers numerous ways to create fabrics and textiles with various properties, but it is crucial to address toxicity, recycling, and energy efficiency.

Simpler manufacturing processes, such as using biomass waste, can be more sustainable and energy-efficient. Additionally, ensuring materials are sourced from sustainable or renewable resources is essential. After the fabric is used, it can be recycled into new products. Education is crucial in promoting sustainable practices, starting with the young and instilling a desire for sustainable materials. This shift requires reinvestment to create awareness and make sustainable practices part of the value.

As the fashion industry continues to evolve, it is essential to shift the current generation’s perception and adopt sustainable practices.

Q: What are some alternative approaches that might be used to raise Malaysians' knowledge about the importance of sustainability?

Dr. Rezal: I remember when I visited Iran in 2013. They faced sanctions due to global rights issues, forcing them to focus on domestic resources and self-reliance. This led to the production of electronic devices and materials at a lower cost through creativity. This principle can be applied to the fashion industry, where people are encouraged to reuse and remanufacture old materials for future use. This is known as a forced transition. This drastic measure requires courage and can be achieved through education and setting parameters for sustainable materials in every product.

Over time, this will become the norm in the industry, influencing consumer behavior and leading to a sustainable future. However, this requires courage and the ability to adapt to changing consumer behavior.

Q: Collaboration is essential in driving sustainability initiatives. Could you share some of the current collaborations you're involved in or aware of that are focused on advancing sustainability within the textile industry?

Dr. Rezal: Well, the fact that we were able to successfully spin out NanoTextile. This shows how dedicated we are to the textile sector with our joint partnership with Nanopac. Our dedication to ensuring the textile industry’s long-term viability is reflected in NanoMalaysia’s success in the NanoCommerce sector. This is our first step into the textile sector, and we intend to offer value by investigating the many textile technologies available.

Having this nanocoated solution that is anti-viral, anti-microbial, and anti-odor opens up a lot of possibilities for nanotextiles beyond what they are doing now. Personally, I’d also like to see nanotextiles make more of an effort to incorporate technologies that are wearable and have electronic sensors, like smart textiles. Apparel that can be concealed beneath the radar system for easy movement, which the military can greatly benefit from. These are essential, and one hopes that they can inspire the company to branch out in new directions in order to establish a more long-term strategy than what they’ve got going on now.

Q: Apart from the NanoTextile project, does NanoMalaysia have any other sustainability agendas that it is working on, perhaps in the future?

Dr. Rezal: So, as mentioned earlier, we’re looking into smart textile wearables and such. At the same time, we want all our investments to employ recyclable waste material. For example, part of our biomass investments involves converting palm oil into microcellulose. The process involved spinning nanocellulose into a textile or fabric and combining it into NanoTextile solutions to generate a 360-degree sustainability circularity from waste to wealth. It will paint a stunning picture of NanoTextile to maximize this sector’s market potential.

We also seek novel ways to utilize industrial, residential, and plantation waste in mainstream textile and apparel industries. However, it will cause additional economic disruption because waste is usually thrown away and considered worthless. Companies and organizations will consider how to develop new wealth creation, entrepreneurship, and other ecosystems. As we can see now, people make biodiesel from discarded oil. Some useful ones are being converted into sustainable aviation fuel. Maybe you’ve heard in 2022 about the Malaysian Airlines operating flights to Singapore using fuel made from renewable waste and cooking oil.

Q: In your view, which emerging trends and technologies in the textile sector hold the most promise for bringing about a paradigm shift in the way that businesses approach issues of environmental responsibility in the years to come?

Dr. Rezal: If you look at the energy we have, subdivide by cloth source and origin. You must ensure that the textile originates from renewable, biomass, or sustainable sources.

So the whole process must be looked at and technology used to ensure that it is green and no chemicals are released into the environment. Thus, the green process allows for innovation to ensure a clean end-to-end process. Every manufacturing process is energy intensive, so you must make sure that sustainable practices are embedded throughout the evolution. The raw material must be clean or sustainable, the processes itself must be short in order to reduce energy used.

We examine the end-to-end process to assess how to develop a sustainable textile sector. Innovators from industry and academia struggle to acknowledge that the solution may not be ready today, yet these public pronouncements can be leveraged.

Q: In your role as Chief Executive Officer of NanoMalaysia Berhad., how do you recommend other companies achieve a healthy balance between the pursuit of their economic goals and the fulfillment of their environmental and social responsibilities?

Dr. Rezal: You’ve probably heard about ESG (Environmental, Social, and Governance) and SDG (Sustainable Development Goals). Most banks and investment authorities now consider these factors before investing in businesses because people are more aware of the need to maintain our environment for the long run. It’s obvious that businesses can’t exist without the people and the environment.

If people perish, and trees, rivers, and clean air are absent, how can we do business? We must invest in the environment first to secure sustainable profit. Once you have a place and time, business becomes feasible.

There is a widespread fallacy regarding sustainable practices, especially with advanced materials. Individuals often pursue a greenwashing agenda in the name of sustainability. For example, a company may invest in environmentally friendly initiatives and then declare itself sustainable. However, sustainability goes deeper than window dressing. It should be ingrained in a company’s culture, behavior, processes, and business model.

“Sustainability goes deeper than window dressing. It should be ingrained in a company's culture, behavior, processes, and business model.”

Back to the concept of people, planet, and profit. Incorporating this strategy is very essential. Nanotechnology began with precise atomic and molecular manipulation of materials. Scientists and engineers started nanotechnology because of precision and waste reduction. If you could make things atomically, there would be no waste. Because you can monitor everything at the atomic and molecular level. It becomes more precise and improves efficiency, consumes less energy, waste less, and has higher productivity.

For example, lubricant reduces more friction, more energy per kilogramme in the battery, Everything consumed may be recycled in a circular economy. This method will increase yield, output, energy efficiency, and sustainability. This is how we can link improved material nanotechnology to sustainability because nanotech is about accuracy. So that’s the entire green value chain. Nanotechnology was created to boost efficiency and sustainability.

Q: From your personal interactions, what are some common misconceptions about sustainable practices that you've frequently encountered, especially in advanced materials markets?

Dr. Rezal: The principles of nanotechnology can be implemented in various procedures. From a technical standpoint, lean methods enhance efficiency, which also applies to people management. For example, to drive an organization, I would use nanotechnology principles.

I call it the bottom-up approach. Building the perfect material requires choosing the right atom. Graphite cannot be made from silicon; instead, carbon is required. After choosing the right atom, structure it correctly. Water needs two hydrogen atoms and one oxygen atom. Knowing what to use and how to mix it correctly, at the right temperature, it will become safe water.

Similarly, in an organization, you need to utilize the right ideas and structure to achieve your goals. This is how you can apply scientific principles to management. Ingenuity is required to apply scientific insights to human management. For instance, a strong organization with good practices needs a strong core, which is the nucleus. The nucleus needs the right elements: appropriate people, chemistry, and so on. It takes time to develop, and your learning curve is ongoing. Sometimes you try a new combination and it doesn’t work, so you try again. There is no one-size-fits-all solution.

It is a process of learning, much like material science. I apply these principles in daily management and life to build a sustainable way.

Q: How do you respond to the argument that sustainable practices are out of reach for the majority of people because they are either too expensive or too impractical?

Dr. Rezal: When you look at the costs and benefits, having more things to manage will always cost more. Yes, of course.

But instead of focusing solely on the costs, you should also consider the benefits. Why should it be worth it? If you view sustainable practices as extra work that hurts your bottom line, you will ultimately make less money. However, by adopting sustainable practices, you give your business more time to thrive. In the long run, there will be more revenue coming in for the company than what is spent on short-term gains, leading to financial success.

In order to do that while still being sustainable, you need to think about the long run. Long-term viability is important. For example, people can handle a longer source of income better. If you believe in this approach, you would agree because this is about the longevity of your business.

“Balancing the need for additional investment should not be seen merely as a cost but as a necessary step. Without such investments, there would be no long-term profitability or continuity for your business and products. It's still hard for a lot of people to understand and use the concept in the right way, but it is essential for long-term success.”

Dr. Rezal

About the CEO of NanoMalysia Berhad, Dr Rezal Khairi

Dr. Rezal Khairi Ahmad is the Chief Executive Officer (CEO) of NanoMalaysia ​Berhad since June 2013. He possesses a PhD. in Nanotechnology, ​Electronic/Electrical Engineering from London Centre for Nanotechnology, ​University College London and Master’s degree in Electrical Engineering ​from Tenaga Nasional University. He is an Adjunct Professor of Universiti ​Teknologi Malaysia. Recently, Dr. Rezal has been designated as the Vice ​President of Asia Nano Forum for the term 2022-2024. Under his tenure, ​Dr. Rezal has successfully crafted the company structure and developed ​the business model and corporate positioning strategy relative to similar-​minded government agencies and relevant industries. His current ​endeavors include Energy Storage, Renewables, Electric Vehicles, Hydrogen ​Economy and Biomass innovation.

This interview is part of our ongoing program, What Say The Experts, where we engage with experts in the fashion and textile industry, covering 4 topics including fashion, sustainability, manufacturing, and research and development from around the world. Through these conversations, we aim to provide valuable insights and foster a deeper understanding of the multifaceted challenges and opportunities within this dynamic field.

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