BioNexus criteria

Malaysia has try to transform from manufacturing base economy to knowledge base economy to compete with new manufacturing countries like China and Vietnam. It has announced MSC status to promoted ICT industry in Malaysia. On biotechnology industry, Malaysia has announced BioValley under Tun Dr Mahithir and BioNexus status under Datuk Seri Abdullah Badawi.

BioNexus status is to catalyse biotechnology industry development in Malaysia by facilitating investments and encouraging more companies to invest in biotech and commercialise research and development. Its comes complete with generous financial incentives, such as hefty tax breaks and a nine-point bill of guarantees.

The excitement had been building in the biotech community, especially over the incentives, and many have expressed interest to apply.

"The full criteria and approval process will be up on our website soon," assures Iskandar Mahmood, CEO of Malaysian Biotechnology Corp Sdn Bhd (MBC), the agency in charge of facilitating the biotech industry. In the meantime, he shares the basic eligibility criteria with The Edge:

• Provide products/services based on life sciences or significant uses of biotech processes

• Possess research capabilities in promoted areas

• Employ a high percentage of knowledge workers

• Comply with enviromental regulations and guildlines

• Must be separate legal entity for qualifying activities ( to prevent it from being used as a tax evasion vehicle)

• Possess a commercially viable business plan

The most important consideration is the commercial viability of the company. "The business plan is the most important thing we look at," says Iskandar. "MBC will go through the plan together with the applicant which is where we can also play a developmental role." Since his sudden appointment to head MBC in April 2005, the former CEO of Malaysian .

Read full report on The Edge

:Malaysia:Biotechnology pharmaceutical