Biotechnology seen as catalyst for innovation

The Ministry of Science, Technology and Innovation of Malaysia (MOSTI) has recognized the importance of biotechnology as one of the key drivers of the country's development, both present and future.

Biotechnology will not only drive improvements in life quality of Malaysians, but also foster the creation of knowledge and innovation in the country, crucial elements in the quest to climb up to a higher value-added stage of development, according to the authorities.

With the application of biotechnology, the ministry hopes to unlock additional value in traditionally strong sectors such as plant commodities and manufacturing. This is to create substantial value in new and upcoming sectors such as healthcare, nutraceuticals and industrial bio-processing.

The National Biotechnology Policy describes biotechnology as an enabling tool for advances in agriculture, healthcare and industry, providing immense benefits to the nation, particularly in building skills, value-added employment and improving the quality of a wide range of products and services.

Biotechnology can be defined in at least two ways. It can mean any technique that uses living organisms to make or modify products, improve plant or animal productivity or develop microorganisms for specific use. The definition encompasses new biological tools.

Malaysia has been blessed with a wealth of resources that lend themselves to the development of biotechnology. The country is renowned for its biodiversity and strength in resource-based industries, in addition to sound infrastructure, political stability, strong economic fundamentals, and cost-competitive skilled labor force.

However, in order to make full use of these resources, concerted efforts are in progress to provide a suitable environment for biotechnology to flourish.

MOSTI is assisting those who have the expertise to carry out biotech-driven research and development (R&D) or to develop biotech-driven businesses, or, as is often the case today, to do both.

The potential of biotechnology has been well acknowledged. It is very research-driven and with this, MOSTI is committed to undertake the role of developer and catalyst of the country's biotechnology sector, by unveiling the National Biotechnology Policy.

Introduced by Malaysian Prime Minister Abdullah Ahmad Badawi at the launch of BioMalaysia 2005, a premium life-science event, the policy encompasses nine thrust areas, underlining the direction and measures offered by the government for biotechnology development, for the creation of wealth and national wellbeing.

Policy thrusts

Thrust One of the National Biotechnology Policy is to transform and enhance the value creation of the agricultural sector through biotechnology.

Thrust Two is to capitalize on the strength of biodiversity to commercialize discoveries in health-related natural products and bio-generic drugs.

Thrust Three is to leverage the country's strong manufacturing sector by increasing opportunities in bio-processing and bio-manufacturing.

These three thrusts reflect one of the main principles behind the National Biotechnology Policy - which is to leverage the country's existing capabilities and to move them up the value-chain.

In this initial phase of biotechnology development, MOSTI is targeting biotech sub-sectors, which will shift Malaysia's agriculture, healthcare and manufacturing sectors to the hi-tech stage.

Thrust Four of the policy relates to the establishment of biotechnology centers of excellence, where multi-disciplinary research teams will gather in coordinated initiatives.

Thrust Five is to build the nation's human capital in biotechnology via education and training. There is no doubt that biotechnology is strengthened through the power of research and the human intellect. MOSTI, therefore, aims to enhance Malaysia's knowledge generation capabilities by nurturing research activities and by building a strong human capital base.

Thrust Six is to apply competitive "lab to market" funding and incentives to encourage committed participation from academia and the private sector, including government-linked companies.

As an initial step, it proposes the structuring of matching grants for biotech R&D and commercialization, including financial support in patent application. To assist R&D ventures even further, a fund has been established to assist in the training cost of skilled workers and the hiring of researchers in focus areas.

To encourage biotechnology investment from private sector corporations, the Malaysian government is offering 100 percent group tax relief or tax deductions for qualifying investments in biotechnology.

Biotech businesses can benefit from pre-packaged tax incentives currently provided by the government, including 10-year tax-exempt pioneer status, exemption of import duties on approved equipment and materials, double tax deductions on qualifying expenses and R&D investments, among many others.

Thrust Seven is to improve the country's innovation system by reviewing the legal and regulatory framework.

Part of this effort involves making regulatory changes to give researchers a share in the ownership of intellectual property and in the monetary rewards derived from their work, to increase the biotechnology "brain-gain" in Malaysia.

Thrust Eight sets out to build international recognition for Malaysian biotechnology.

Biotechnology has become a globalized activity and MOSTI has worked hard at putting together a comprehensive biotechnology policy that is relevant and competitive.

Therefore, the ninth and final thrust of the National Biotechnology Policy is to establish a dedicated and professional agency to spearhead the development of Malaysia's biotechnology sector.

The government has also decided to employ an approach that moves away from an infrastructure focus to one that builds on the capabilities of existing institutions.

Accordingly, a network of centers of excellence around the country is currently under construction across the country, known as BioNexus Malaysia.

This BioNexus represents the best institutes Malaysia has to offer in the specific biotechnology sub-sector. To date, three centers of excellence have been set up.

The vision behind "BioNexus Network" is the creation of a web of biotechnology companies and organizations that leverage on existing facilities, infrastructure and capabilities of universities and research institutions throughout Malaysia, and is not confined to predefined geographical parameters.

Courtesy of the Malaysian Embassy in China

(China Daily 08/31/2007 page24)