Bernama.com (Malaysian National News Agency), September 07, 2006 15:52 PM

PM Unveils Strategic Initiatives For Biotech Industry

NILAI, Sept 7 (Bernama) -- Prime Minister Datuk Seri Abdullah Ahmad Badawi Thursday unveiled three strategic initiatives to help push Malaysia's biotechnology industry forward.

The initiatives, namely the Bionexus Status, the Malaysian Life Sciences Capital Fund and Inno Biologics Biopharmaceutical Plant would be the fundamental building blocks of Malaysia's biotechnology industry development, he said in his speech at the official launch of the Inno Biologics Biopharmaceutical manufacturing facility here.

The measures, among others, are expected to provide the needed impetus for the creation of companies, jobs and value for the country.

"Our push in biotechnology, coupled with other efforts in the manufacturing services and agriculture sector, clearly demonstrates that the country is taking determined steps to move up the value chain and in the transition to become a "knowledge-based economy" as articulated in the five thrusts of the National Mission," he said.

The prime minister who earlier chaired the inaugural Biotech Implementation Council Meeting said the Bionexus status, was recognition awarded to qualifying biotechnology companies, making them eligible for privileges contained within the Bionexus Bill of Guarantees.

The perks include freedom of ownership, freedom to bring in knowledge workers, eligibility to receive assistance for international accreditation, access to an information network linking research centres of excellence and access to shared laboratory and production facilities.

It also includes fiscal incentives namely 10 years of tax exemption on company profits as well as tax deduction on early stage investments.

Abdullah said the Bionexus status would be evaluated by an inter-ministerial committee and would be administered by the Malaysian Biotechnology Corporation.

Touching on the Malaysian Life Sciences Capital Fund, he said it was a critical component of industry development.

"This biotechnology venture capital fund has been highly anticipated by industry players since its appearance in last year's bud get speech," he said.

The prime minister said this fund has amassed US$150 million of committed funds, and is scheduled to close by mid-October this year.

Under the co-management of the Malaysian Technology Development Corporation Sdn Bhd (MTDC) and a San Francisco-based, Burill & Co, this fund is set to become one of Asia's premier sources for venture capital.

"This fund will provide investors, with an opportunity to diversify and gain knowledge in the biotechnology business," Abdullah said.

At Thursday's event, the prime minister also witnessed the signing of Memoranda of Understanding (MoU) between Biotech Corp and its strategic partners in the development of human capital expertise.

The first MoU was with the Institute For Quantitative Biomedical Research (QB3), University of California, San Francisco relating to training programmes for Malaysian biotechnology researchers and biotechnopreneurs.

In addition, Biotech Corp and Malaysian Genomics Resource Centre also announced a collaboration to provide scientists from all over the world to access an integrated bioinformatics portal.

In April 2005, the government announced the National Biotechnology Policy which outlined Nine Strategic Thrusts towards the development of the Life Sciences and Biotechnology industry in the country.

As part of the nine thrusts, Biotech Corp was established in May 2005 as the lead implementation agency for biotechnology development in Malaysia.

-- BERNAMA