BioNexus Status
BioNexus is a special status awarded to qualified international and Malaysian biotechnology companies. The status endows fiscal incentives, grants and other guarantees to assist growth. This status is awarded to qualified companies undertaking value-added biotechnology and/or life sciences activities. Apart from the overall benefits and support, BioNexus companies are assured a list of privileges as stipulated in the BioNexus Bill of Guarantees.
BioNexus Bill of Guarantees
Every BioNexus company is guaranteed the below list of privileges devised to foster an environment for research and business development:
Eligibility Criteria for BioNexus Status
We would like to draw your kind attention to the changes in the eligibility criteria for BioNexus Status application which will take effect on 1 February 2012.
The change in the eligibility criteria is necessary to enhance the quality of the BioNexus framework and meet the changing requirements of the market.
You are required to fully understand the eligibility criteria before proceeding with your application and for comprehensive guidance on the application process for BioNexus Status, you can refer to the following Guidance Papers:
How to Apply?
The Steps:
Step 1 : Pre Application
A Company interested to apply for the BioNexus Status is encouraged to contact BiotechCorp to discuss the proposed biotechnology businesses and activities. At this stage, the Company can get clarification on the BioNexus eligibility criteria, as well as associated benefits and incentives.
The Company is required to complete this online BioNexus Pre-Application Form to register interest. The Company will then be assigned an Account Manager from BiotechCorp, who will advise and guide the Company on the application process.
Step 2 : Internal Assessment
The Company commences the application process by completing the BioNexus Status Application Form (to be provided by the Account Manager) and submitting its biotechnology/life sciences business plan, financial projections and other relevant documents.
Step 3 : Formal Application
Upon complete submission and a RM2, 000 application fee in the form of a bank draft payable to Malaysian Biotechnology Corporation Sdn Bhd, the Company will be provided with a Letter of Acceptance.
Once the Letter of Acceptance has been issued, the application will be reviewed and evaluated, following which presentation will be made to the BioNexus Approval Committee.
Step 4 : Approval
An approval is only given after the relevant ministries agree to the recommendation made by the BioNexus Evaluation Committee.
If the application is approved for the BioNexus Status, the Company will receive the BioNexus Status Approval Letter; whilst the unsuccessful Company will receive a notice on the rejection of its application and the Company’s bank draft will returned.
Step 5 : Post Approval
BioNexus Status certificate will be issued.
List of BioNexus Companies
List of BioNexus CompaniesBioNexus Tax Incentives
A company undertaking biotechnology activity and has been approved with BioNexus Status by the Malaysian Biotechnology Corporation Sdn. Bhd. (BiotechCorp) may apply for the following incentives:
- An exemption from tax on 100% statutory income :
- For a period of ten (10) consecutive years of assessment from the first year the company derived statutory income from the new business; or
- For a period of five (5) consecutive years of assessment from the first year the company derived statutory income from the existing business and expansion project; or
- An exemption of 100% statutory income derived from a new business or an expansion project that is equivalent to an allowance of 100% of qualifying capital expenditure incurred for a period of five (5) years.
- A BioNexus Status company is entitled to a concessionary tax rate of 20% on statutory income from qualifying activities for ten (10) years upon the expiry of the tax exemption period.
- Tax exemption on dividends distributed by a BioNexus Status company.
- Exemption of import duty and sales tax on imported raw materials/components and machinery and equipment.
- Double deduction on expenditure incurred for R&D.
- Double deduction on expenditure incurred for the promotion of exports.
- With effect from 2 September 2006, qualifying buildings used solely for the purpose of biotechnology activities will be eligible for Industrial Building Allowance to be claimed over a period of 10 years.
- A company or an individual (that carry on business) investing in a BioNexus Status company is eligible for a tax deduction equivalent to the total investment made in seed capital or early stage financing.
Biotechnology Commercialisation Fund
Important Announcement on Funding Assistance from BiotechCorp under the Tenth Malaysian Plan – The Biotechnology Commercialisation Fund
Pursuant to our announcement made on 23rd February 2011, we are pleased to announce that the Biotechnology Commercialisation Fund (BCF), a new fund program under the Tenth Malaysia Plan (10MP), is now available.
For the purpose of submitting applications, applicants are advised to carefully read the Guidelines on Biotechnology Commercialisation Fund Loan Applications which can be downloaded by clicking on the link provided at the bottom of this page.
Applications for the BCF can be submitted beginning 3rd August 2012.
Should you have any queries regarding this matter please do not hesitate to contact Puan Nora Mohamed, Vice President of Evaluation Department.
