Incentives To Promote Biotechnology Development

KUALA LUMPUR, March 31 (Bernama) -- A comprehensive funding structure and financial incentives will be put in place to address the gaps in financing for biotechnology projects under the Ninth Malaysia Plan (9MP).
During the 9MP period, an allocation of RM2.0 billion will be provided for biotechnology development, with 45.9 percent for physical infrastructure development and the remaining 54.1 percent for soft infrastructure development.
Emphasis will be placed on research and development (R&D) and commercialisation, strategic technology acquisition, business and entrepreneurship development as well as the building of the requisite infrastructure, according to the 9MP report released today by the Economic Planning Unit of the Prime Minister's Department.
In this regard, the public sector will complement private sector financing and investment efforts, including a number of programmes to improve access to financing by the private sector.
Funding for R&D in biotechnology will be proided through existing sources as well as new funds such as the ScienceFund and TechnoFund.
To complement these sources, a dedicated Biotechnology Commercialisation Fund with an allocation of RM100 million will be set up to provide matching grants to R&D companies or companies conducting in-house R&D.
Biotechnology projects are confronted with issues such as high risk, long gestation period, substantial upfront investment and stringent regulatory compliance and in transforming it into a vibrant one, access to financing across the entire chain will be the critical factor for success, the report said.
The objective of biotechnology development during the 9MP period will be to harvest its potential as a growing source of wealth creation and enhance applications on biotechnology in various sectors of the economy.
By 2010, the target will be to at least double the number of biotechnology and biotechnology related companies to 400.
Concerted efforts will be geared towards the implementation of the National Biotechnology Policy, which was launched in 2005, to generate new sources of growth in agriculture, healthcare and industrial biotechnology as well as bioinformatics.
In this regard, the promotion of foreign and domestic investments and close collaboration with foreign entities to access new technology, expertise and markets will be intensified by the Malaysian Biotechnology Corporation.
A new approach, namely BioNexus which leverages on the strengths of existing institutions along with parallel development in industries, will be adopted.
The brand BioNexus will be promoted to market Malaysia's biotechnology initiative and attractive package of incentives will be offered to domestic and foreign BioNexus-status companies.
With the biotechnology policy framework in place, critical factors such as conducive regulatory framework, adequate financing infrastructure, human capital development and R&D capabilities will provide the essential building blocks to develop the biotechnology industry, the report said.