National Biotechnology Policy exceeds target by RM3b

KUALA LUMPUR: The National Biotechnology Policy (NBP), which is currently in its second phase, has exceeded its investment target by more than RM3 billion, said Minister of Science, Technology and Innovation Datuk Dr Ewon Ebin.

Presently, we have already exceeded our end of the 2015 target, which is RM9 billion in terms of investments, said Ewon. The number now stands at more than RM12 billion and we hope we can go further beyond our target.

Launched in 2005 under former prime minister Tun Abdullah Ahmad Badawi, the NBP was aimed at capitalising on the countrys resources in biodiversity and cost-competitive skilled labour to promote investment and growth in the sector. The country is nearing the end of Phase 2 of the policy, which is themed Science to Business.

Some of the goals under Phase 2 include developing expertise in drugs discovery and development based on natural resources, technology acquisition, and to intensify investment promotion.

Ewon said that since the inception of the Bioeconomy Transformation Programme (BTP), Bionexus-status companies have invested about RM4 billion in the sector. The Bionexus-status is a special status awarded to qualified international and Malaysian biotechnology companies, which allows the companies to receive fiscal incentives and grants to assist growth.

Out of the RM4 billion, the proportion of foreign and local investment is about 50:50. Some of the countries which have come in are South Korea, the US, China and European countries, he said.

Local investors tend to focus on the agricultural sector, and they invest in smaller amounts compared to foreign investors, who invest in larger amounts.

This article first appeared in The Edge Financial Daily, on July 18, 2014.

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National Biotechnology Policy exceeds target by RM3b