Bioeconomy attracts RM14.5 billion in investment to Malaysia

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) has reported approved investments exceeding USD 4.5 billion (RM14.5 billion) with over three U.S. companies selecting Malaysia as their RHQ for the Asia-Pacific region," stated Datuk Dr Mohd Nazlee Kamal, Chief Executive of the Malaysian Biotechnology Corporation (BiotechCorp) via a press statement released on Tuesday.

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.

BiotechCorp has been the chief driver for the national biotechnology development, providing strategic direction and operational assistance for both the upstream and downstream businesses.

“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," added Nazlee.

In 2013, the total investments of biotechnology companies in Malaysia were US$1.1 billion (RM35.44 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 (RM51.55 billion), creation of 170,000 new jobs and Gross National Income (GNI) of USD12 billion (RM38.66 billion) by 2020.

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.

The convention will be held from June 23 to June 26 2014 in San Diego, California.