Bernama.com (Malaysian National News Agency), September 01, 2006 23:45 PM

RM210 Mln For Development Of Biotechnology

KUALA LUMPUR, Sept 1 (Bernama) -- A sum of RM210 million has been allocated in Budget 2007 for the development of the biotechnology sector, Prime Minister Datuk Seri Abdullah Ahmad Badawi said Friday.

He said that among the major programmes was technology acquisition through the Biotech Acquisition Programme with a matching grant of RM60 million and commercialisation of research and development (R&D) findings to be undertaken by companies and international corporations with RM30 million provided under the Biotechnology Commercialisation Fund (BCF).

"In addition, RM59 million is allocated under the R&D initiatives for genomics and molecular biology, production of pharmaceutical and nutraceutical products, as well as promotion of agro-biotechnology activities," said Abdullah, who is Finance Minister, when tabling Budget 2007 in the Dewan Rakyat.

Abdullah said the government would set up the Bio Innovation Centre in Nilai, Negeri Sembilan, to provide site facilities and equipment for new biotechnology companies to undertake commercialisation and bio-manufacturing activities, such as biopharmaceutical and medicine technology.

He said the government had also established the Inno Bio Ventures to invest and provide training in biotechnology.

"To encourage new investments in biotechnology activities, the government proposes several new incentives as well as enhances existing ones," he said.

These were, among others, as follows:

First: bionexus companies be given income tax exemption for 10 years, beginning from the first year the company is profitable.

Second: after the expiry of the 10-year exemption period, a bionexus company will be taxed at a concessionary rate of 20 per cent for another 10 years.

Third: tax deduction equivalent to the amount of investment made in seed capital and early stage financing be given to companies or individuals investing in bionexus companies.

Fourth: stamp duty and real property gains tax exemptions be given to a bionexus company undertaking merger with or acquisition of a biotechnology company, within a period of five years.

Fifth: buildings for research activities related to biotechnology be given Accelerated Industrial Building Allowance, whereby the cost of constructing or acquiring the building is written off over a period of 10 years.

-- BERNAMA