PM To Announce More Incentives For Biotech Companies, Says Dr Jamaludin

KUALA LUMPUR, April 4 (Bernama) -- The government is making available all the necessary funds and incentives to woo more companies and entrepreneurs to be involved in biotechnology, including those that may be announced by Prime Minister Datuk Seri Abdullah Ahmad Badawi sometime in May or June.
Science, Technology and Innovation Minister Datuk Seri Dr Jamaludin Jarjis said Tuesday that many companies perceived biotechnology as a risky proposition and for this reason, the government would like to take measures to mitigate such risks.
"The prime minister will chair the National Biotechnology Implementation Council meeting and at that time, he will announce other financial incentives to reduce the risks for investors making a foray into the biotechnology industry," he told reporters after attending a briefing for exhibitors and participants of the BIO 2006 international biotechnology conference to be held in Chicago on April 9-12.
Dr Jamaludin said that some of the initiatives were already outlined in the Ninth Malaysia Plan (9MP) which has set aside RM2.02 billion for biotechnology for the next five years.
He said that of this amount, RM100 million had been allocated for the biotechnology acquisition programme while another RM100 million was earmarked as biotechnology commercialisation fund which could be tapped by the companies involved.
"Let's suppose that to procure a particular technology costs RM5 million. The company can apply for some funds from us, we can consider, depending on how important the technology is. If the technology is so important for the nation, we can even finance up to 100 per cent.
"It will depend on the merit of the case, for example, how many jobs it can create later on. We will support them to minimise the technology risks," he said.
Dr Jamaludin said that besides the 9MP allocations, biotechnology companies could also source for funds from the RM1 billion Malaysian Life Sciences Capital Fund (MLSF) that had been set up by the government.
"We have RM100 million first and we are trying to get more money into the Life Sciences fund with the involvement of the private sector," he said.
The Malaysian Technology Development Corporation (MTDC), he said, was another avenue for companies to obtain biotechnology venture capital.