Malaysia’s Strong Capabilities in Bioeconomy Attracts Over USD4.5 Billion Investments
SAN DIEGO, June 18, 2014 /PRNewswire/ — Malaysia’s diverse strengths and capabilities in the agro, healthcare and industrial sectors of biotechnology will be on full display at the annual BIO International Convention 2014 (BIO), as Malaysian Biotechnology Corporation (BiotechCorp), continues its international profiling at the Convention which will take place in in San Diego, California from 23 – 26 June 2014.
As a progressive, business-friendly hub in the heart of Asia, Malaysia has established itself as a global player in bioeconomy offering generous tax incentives for investors, technically-skilled workforce, specialized infrastructure and abundant natural biological resources to the flourishing bioeconomy ecosystem.
“Malaysia is on track to create a bioeconomy hub in the Asia Pacific. The nation’s Bioeconomy Transformation Programme (BTP) have reported approved investments exceeding US$4.5 billion with over three U.S. companies selecting Malaysia as their RHQ for the Asia-Pacific region,” said Malaysian Biotechnology Corporation (BiotechCorp) Chief Executive Dato’ Dr Mohd Nazlee Kamal.
BiotechCorp has been the chief driver for the national biotechnology development, providing strategic direction and operational assistance for both the upstream and downstream businesses.
Over the years, BiotechCorp has turned biotechnology into a game-changing engine for the country’s economy leveraging on a combination of foreign and locally developed technology and IP to gain solid foothold in the international bioeconomy industry.
“Supported by cutting-edge technology, key component suppliers, medical equipment manufacturers and ready access to a technically skilled and educated workforce, Malaysia remains a preferred destination for biotechnology investments in the region,” he added.
Among the notable global investors in Malaysia’s bioeconomy include:
-- Biocon Ltd, which built Asia's largest integrated insulin production plant, catering to the needs of diabetic patients for affordable insulin and insulin analogs; -- Stelis Biopharma, which is spending nearly US$34 million on a research and development hub; -- Gevo Inc, which has announced an investment to build the world's first bio-isobutanol plant using biomass; -- Haemonetics Corporation, an American blood management solutions provider, which has also selected Malaysia as the first Asia-Pacific location for the establishment of their high tech medical devices manufacturing facility.
Incentives such as 100% tax exemption for 10 years and double deductions for Research and Development (R&D) spending for qualified companies undertaking value-added biotechnology and/or life sciences activities under the BioNexus programme have been introduced further creating a more attractive investment environment.
The on-going focus on high-skilled workers under the Economic Transformation Programme has also ensured a diverse pool of talent – engineers, biochemists, laboratory technicians, and scientists among them – are an integral part of the fast growing bioeconomy.
While investors are increasingly recognizing the value of Malaysia as the launch pad for investment opportunities and business expansions, cross border investments between Malaysian and U.S. companies have also increased.
In a recent announcement, a Malaysian conglomerate Sime Darby took a 30 percent stake in San Diego-based Verdezyne, to fund research and development in downstream activities.
The partnership will enable Sime Darby to expand its downstream activities to include products such as plastic and nylon and also create a ripple effect throughout the Malaysian bioeconomy.
In 2013, the total investments of biotechnology companies in Malaysia were US$1.1 billion, with the bioeconomy having created more than 83,000 direct and indirect jobs.
The Bioeconomy Transformation Programme by the Malaysian government aims to diversify and accelerate Malaysia’s capabilities in biotechnology.
Under the programme, the government is targeting investments amounting to USD16 billion, creation of 170,000 new jobs and GNI of USD12 billion by 2020.
BiotechCorp is the lead development agency for the biotech industry in Malaysia and acts as a central contact point providing support, facilitation and advisory services for biotech and life sciences companies in Malaysia.
BioNexus Status companies are international and Malaysian biotech companies that qualify for fiscal incentives, grants and guarantees administered by BiotechCorp. For further details, visit www.biotechcorp.com.my.
Bioeconomy Transformation Programme (BTP) is a platform provided by the Malaysian government for the private sector to channel and maximise commercial opportunities in bio-based industries.
The BTP is designed as a Transformation Programme based on biotechnology’s potential to cut across various industries and transform Malaysia into a high income, inclusive and sustainable nation.
Through the BTP, Bioeconomy will benefit the society and nation through breakthroughs in agricultural productivity, discoveries in healthcare and the adoption of sustainable industrial processes, having the effect of both enriching our society and nation through wealth creation besides securing our future. For further information, visit www.bioeconomy.my.
For media inquiries, kindly contact:
DAZRENE AZMIL DARUS
Manager, Strategic Communications
Malaysian Biotechnology Corporation
Tel/Fax : +603 2116 5158
SOURCE Malaysian Biotechnology Corporation