KUALA LUMPUR, Sept 30 (Bernama) — The Budget 2006’s allocation of funds and assistance to the bio-technology sector with focus on research and development has been described as a shot in the arm for the industry. But all would depend on how the incentives are taken up and used for industry excellence, says a leading industry figure.
“We are pleased with the allocation given to us to develop the bio-technology sector, especially to enable us to finish the programmes that have been identified,” the joint chairman (government) of Malaysian Industry-Government Group for Higher Technology (MIGHT), Tan Sri Dr Ahmad Zaharudin Idrus, said.
The incentives are a good start as the sector is still in the early stages of development, he told Bernama when contacted Friday.
“(But) We must get the momentum first before we can start spending a lot because it is a long term effort. We thank the Prime Minister Datuk Seri Abdullah Ahmad Badawi for the incentives given,” he said.
On tabling the Budget 2006, Abdullah announced that the government would set up a
Bioproducts Validation Centre in Johor Baharu at a cost of RM30 million.
The government would also contribute RM100 million to launch Malaysian Life Sciences
Capital Fund, a special fund to encourage investments in biotechnology. The fund is to be managed by the Malaysian Technology Development Corporation.
To encourage more R&D, the government would allocate RM868 million under the Ministry of Science, Technology and Innovation (MOSTI), said Abdullah who is also the Finance Minister.
The R&D grant would focus on biotechnology, advanced manufacturing, advanced
materials, Information Communications Technology, nanotechnology and alternative
sources of energy, including solar, to encourage more innovation among local companies in developing new products.
On the setting up of the validation centre, for which the blueprint is yet to be out, he said such a centre would help the industry to develop the processes.
“Validation is one of the key areas in the bio-technology sector. We need it very much in developing the standards, qualities and assurance of the products being developed,” said Dr Ahmad.
Lenfa Biotech Corporation Sdn Bhd’s senior corporate advisor, Teh Kim Seng, echoed Dr Ahmad’s comments, saying that it was a good start for the industry.
He was, however, unsatisfied with the location of the validation centre. The centre is expected to be located in Johor Baharu.
“The centre could be nearer to the capital city,” he said.
Lenfa, is a Traditional Chinese Medicine (TCM) manufacturer. It aims to be listed on the Mesdaq market of Bursa Malaysia by end of next year.
He said the grant money and funds allocated were very encouraging, especially for start-up companies in the bio-technology sector.
“It will be very useful, especially for companies who are still in the R&D stage of their products. They need such funds because it is hard to get venture capitals to come in and fund them in early stages,” he said.
Teh said the grant would also be helpful for the companies to enhance their branding and marketing in the domestic as well as regional markets.
However, he reiterated that all would depend on how the private sector would enhance and maximise their position via the incentives provided by the government.
Equator Life Science Bhd’s managing director, Murphy Koh said the goodies provided for the industry showed that the government was really committed to developing the sector and taking all the efforts possible.
Efforts should also be extended to the higher education institutes given that there is a lack of courses there to promote bio-technology, he said.
The government should also educate the industry on the incentives available and give further details on how the companies can benefit from them, he added.
Meanwhile, Global Bio-fuel Malaysia’s technical director, Lloyd Lim had a totally different view on the proposed validation centre.
“The capital fund is small. The setting up of a validation centre means more bureaucracy. It’s not more hardware that the industry needs but more software,” he said.
He said more funds and grants could have been allocated rather than setting up the validation centre.
(Source: Bernama, 30th September 2005)