Budget 2007 on Biotechnology, Halal Food and Agriculture

Biotechnology
The RM210 million allocated for biotechnology under Budget 2007 will be used for the development of major programmes, including technology acquisition through the Biotech Acquisition Programme with a matching grant of RM60 million (although it is not clear where the matching grant will come from), and commercialisation of R&D findings to be undertaken by companies and international corporations under the RM30 million Biotechnology Commercialisation Fund (BCF).

A sum of RM59 million for Research and Development for genomics and molecular biology, production of pharmaceutical and nutraceutical products and to promote agro-biotech activities.
The Biotech Acquisition Programme and Biotech Commercialisation Fund will come under the ambit of Malaysia Biotech Corporation. "All these incentives clearly show the government's commitment and foresight to spur the private sector on," said Malaysia Biotech's CEO Iskandar Mahmood.


The Government has established Inno Bio Ventures to invest and provide trainning in biotechnology while the Bio Innovation Centre in Nilai, Negeri Sembilan, will be set up to provide site facilities and equipment for new biotechnology companies to undeertake commercialisation and bio-manufacturing.


Bionexus companies would be given income tax exemptions for 10 years, beginning from the first year of profitability. The exemptions was beginning from first year of production. After this period, bionexus companies would be taxed at a concessionary rate of 20% for another 10 years.

Carotech Bhd managing director David Ho Sue San welcomed as “positive and encouraging” the incentives for Bionexus-status companies that merge with or acquire biotechnology companies within the next five years. These companies will be given stamp duty and real property gains tax exemptions.

Malaysian American Electronics Industry chairman Datuk S.H. Wong said the RM210mil allocation for developing the biotechnology sector was consistent with the Penang state government's effort to build a biotech hub.

Halal food industry

The Halal Industry Development Corp will be established under Prime Minister's Department with launching grant of RM25 million for the development of the industry.

The Malaysia International Halal Showcase and the World Halal Forum 2006 will be made annual events.

RM50 million to start up halal food parks in Pasir Mas, Kelantan; Gembang, Pahang; Chendering, Terengganu; and Padang Besar, Perlis.

RM20 million allocation to SME Bank to finance entrepreneurs to develop halal products

Agriculture

Dr Kamal Jit Singh, CEO of British Telecom's Asian Research Centre in Cyberjaya noted that the vast gap in allocation between the MSC Grant Scheme (MGS) of RM20 million for ICT research versus the RM193 million for agriculture research was because the focus is now on agriculture and no longer on ICT.

The Government has allocated RM3.6bil for the sector to increase productivity and efficiency in agricultural production and to expand market capabilities.

The Fund for Food will be increased by RM300mil to RM1.9 billion to finance food production and a non-food agriculture credit scheme, with an initial allocation of RM20mil, will be established to encourage farmers to venture into non-food agriculture.

To develop aquaculture, the Government has set aside RM92mil for Ornamental Fish Cluster projects in Penang, Kedah and Perlis and the Freshwater Fishery Research Centre in Negri Sembilan.

A further RM110mil has been allocated to implement livestock projects under various agricultural agencies and RM40mil to implement the Beef Valley project in Gemas, Negri Sembilan.

Khazanah to establish an agriculture fund of RM200mil will be established to provide venture capital to finance new technology-intensive projects.

Another agriculture fund of RM200mil will be set up by Bank Negara for integrated agriculture and livestock projects.

:Malaysia: Halal Food Agriculture Biotechnology pharmaceutical