News Straits Times Press, 18 August 2006

Biotech sector to focus on medical research, agriculture

MALAYSIA's push into the biotechnology sector will focus on medical research and agriculture, two areas in which it has considerable expertise, instead of going into uncharted territories.

As part of efforts to further develop the industry as the new engine of growth, the Government launched the National Biotechnology Policy in April 2005.

The policy announced by Prime Minister Datuk Seri Abdullah Ahmad Badawi hinges on nine thrusts which spell the direction and measures offered by the Government.

In announcing the initiative, Abdullah also disclosed the creation of the Malaysian Biotechnology Corp (MBC) and efforts to develop a network or nexus of centres of excellence known as Bionexus Malaysia which will represent the best institutions in specific biotechnology sub-sectors.

Its concept is almost similar to that of the successful Multimedia Super Corridor (MSC), which is a hub for information, communication and telecommunication (ICT) companies in Malaysia.

However, BioNexus is not just about grouping a cluster of biotechnology firms in one area. It hopes to bring together the best brains from global universities, R&D organisations, government agencies and private firms in one marketplace, linking them together such as via the Internet.

The biotechnology sector was one of the biggest winners under the Budget 2006 announced in September last year where the Government has allocated a sum of RM2 billion over a period of five years.

This will benefit the industry and companies that require assistance in technology and financing to develop the business.

From the RM2 billion allocated, RM463 million is for research and development, RM100 million for biotechnology programmes, RM529.80 million for biotechnology business development and RM928.50 million for infrastructure.

Abdullah in his 2006 budget speech also announced the setting up of the Life Science Fund with an initial fund size of RM100 million.

It was to pool investments from various institutions, including government-linked companies and seek to spur biotechnology in at least three strategic areas - agriculture, health (including pharmaceuticals and nutraceuticals) and industrial biotechnology.

The fund will be available not only to companies that have products to commercialise, but also for starting up new ventures.

The Government has projected that the biotechnology industry will contribute at least 2.5 per cent to the country's gross domestic product by 2010.