Bernama.com (Malaysian National News Agency), 9 May, 2007
Customised Incentives And Equity Participation For Biotech
By Saraswathi Muniappan
BOSTON (US), May 9 (Bernama) -- Customised incentives and equity participation are among the new measures being considered to attract foreign investment in Malaysia's infant biotechnology industry, Deputy Prime Minister Datuk Seri Mohd Najib Tun Razak said Tuesday.
"We have to do more than what we have been doing in the past. Just having special incentive packages and promoting investment is not good enough," Najib said at a press conference at the Kresge Business School in Harvard Boston where he had a lunch meeting with the professors.
Noting the intense competition in wooing foreign biotechnology players, he said many countries could offer similar packages as Malaysia.
Najib, who is in Boston to lead Malaysia's 350-member delegation to BIO 2007, said: "We must give customised incentives. We might even need to put in some equity participation."
"Equity holding can give us an advantage. When we have share of a company, we can influence them to conduct some of the activities (research, clinical test or production) in Malaysia," he said.
The four-day BIO 2007, the world's largest biotechnology convention, started on May 6 and has attracted more than 20,000 attendees from over 60 countries.
The lucrative biotechnology industry is estimated to record a revenue of US$90 billion (US$1=RM3.40) globally each year with annual spending of US$25 billion on research and development.
Worldwide, there are 4,300 biotechnology companies, employing over 233,600 high-end knowledge workers.
About 700 biotechnology companies are listed with a market capitalisation of about US$600 billion.
According to Najib, Malaysia has all the "ingredients" to become Asia's biotechnology hub but such an endeavour needs continuous promotional efforts and assistance from the government.
He said a number of companies present at BIO 2007 have shown that they were keen to invest in Malaysia, including one which has developed artificial blood.
Negotiations with the company concerned were still at an initial stage, Najib said.
"We want them to do production and if possible, even the clinical testing in Malaysia," he said.
Asked what could be the initial investment for this venture, Najib said: "It will be a very high-end investment."
"We are still in the process of discussions. We need to know what kind of incentives they want. The chances (of them coming) are good," he said.
Najib said James Greenwood, chief executive officer of BIO which is organising the biotechnology convention, and the Massachusetts Institute of Technology (MIT) were also impressed by Malaysia's commitment to develop the biotechnology industry.
Malaysia, he said, was singled out at many of the BIO 2007 functions that took place over the past four days.
Greenwood is also expected to come to Malaysia and conduct a special programme, he added.
Among those in Najib's entourage to BIO 2007 are Science, Technology and Innovation Minister Datuk Seri Dr Jamaludin Jarjis, Domestic Trade and Consumer Affairs Minister Datuk Mohd Shafie Apdal, Pahang Menteri Besar Datuk Seri Adnan Yaakob, Kedah Menteri Besar Datuk Seri Mahdzir Khalid and Terengganu Menteri Besar Datuk Seri Idris Jusoh.
Others include Melaka Chief Minister Datuk Seri Mohd Ali Mohd Rustam, Penang Chief Minister Tan Sri Dr Koh Tsu Koon and Deputy Finance Minister Datuk Awang Adek Hussin.
-- BERNAMA
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