Introduction

Various initiatives and mechanisms have been introduced by the Government to promote the development of biotechnology. The Government realised that a fundamental pre-condition for the success of the advancement in the biotechnology industry, is to provide grants and loans as well as incentives to promote and support research into the public sector, and encourage more private sector investment in new technologies. The mechanisms for grants fall in the preview of the National Council for Scientific Research and Development (NCSRD) under Malaysia's Ministry of Science, Technology and Innovation (MOSTI). On the other hand, incentives are provided by the Inland Revenue Board and the Malaysian Industrial Development Authority (MIDA). Funds available for the private sector include those from venture capitalists and banks.

Grants

The purpose of grants are to support R&D activities and the commercialisation of research findings in specific areas that are of national importance to the Malaysian industry. There are a range of schemes available which have a fund allocation to biotechnology and these are administrated by various governmental bodies such as the National Biotechnology Directorate (NBD), Malaysian Technology Development Corporation (MTDC) and others. These bodies each have different objective, sector and activity focus. The criteria for eligibility and fund size varies with the type of scheme and the project under consideration. Grants are eligible for anyone who qualifies these set criteria's but would normally require some collaboration with public research institutes or universities. To view the available grant schemes for biotechnology, click here

Venture Capitalists

Venture Capital (VC) financing is widely accepted as an alternative and innovative source of funding in Malaysia. VC's help to support companies and enterprises in exchange for a percentage of ownership in the firm. There are currently approximately eight venture capital companies (VCC's) that have funds for biotechnology investments. The total funds that has been allocated specifically to the biotech sector is not clear, because for most VCC's, the sector falls under a conglomerate of sectors termed 'Life-Sciences'.