Life sciences fund a good first move, say biotech entrepreneurs

The Star :BIOTECH entrepreneurs say the Malaysian Life Sciences Fund (MLSF) is a good first step to fully develop the country's biotechnology potential, but fell short of its requirements.
While recognising that the MLSF, which has a fund allocation of RM100mil, is well-intentioned, panellists at a biotechnology forum in Kuala Lumpur yesterday said more funds should be set up. There should be streamlining of approvals and reduction in bureaucracy.
Organised by TH Properties Sdn Bhd, panellists at the forum on “The Impact of Budget 2006 on Biotechnology in Malaysia” were drawn from entrepreneurs in various biotech-related industries, as well as from the Malaysian Technology Development Corp (MTDC) and Ernst & Young.
Datuk Dr Salleh Mohd Nor, the executive director of TropBio Forest Sdn Bhd – a biotechnology firm researching jungle soil microbes – felt that there were problems with the translation of policies into implementation, and that the Government needed to invest wholeheartedly in the sector.
“There are many ideas to harness biotechnology in the country, but the execution is a problem,” he said.
Dr Rajen M, the managing director of Tropical Botanics Sdn Bhd, a herbal-extraction company, felt that private firms sometimes expected too much financing from the Government.
“We need to streamline the approval process and promote the industry as Malaysia can lay claim to having the oldest rainforests in the world, and this is an extremely good selling point,” said Rajen.
KLBiotech Sdn Bhd chief executive officer Dr Abdul Reezal Abdul Latif agreed that there was still much to be done to support the industry.
He said while it was important to capitalise on the herbal industry, development of other advanced medical services such as cell research, should not be neglected.
Sharon Low, the managing director of cell-therapy and medical services firm Stemlife Sdn Bhd, said although both MTDC and the Health Ministry had been very supportive of her firm, advanced medical services should not be neglected and would be needed to provide Malaysians with a high level of medical care.
Ernst & Young executive director (health sciences) Carol Wong said the Government's 2006 Budget had provided group tax relief aimed at encouraging companies to venture into new industries, such as biotechnology.
There were also clear incentives provided to gear Malaysia towards developing contract research organisations as well as contract manufacturing organisations, she said.
MTDC chief executive officer Azlin Alias said although the MLSF was the main vehicle to promote biotechnology, other accelerator strategies were in the works.