Business

Tuesday May 19, 2009

Slower growth for biotech sector

By TAN KIM BOCK


But it will remain resilient, says Biotech Corp chief executive

ATLANTA: Malaysian Biotech Corp sees slower growth in the domestic biotech sector this year due to the impact from the global economic slowdown, but remains optimistic the sector will stay resilient, according to chief executive officer Datuk Iskandar Mizal Mahmood.

Biotech Corp is the lead government agency overseeing the sector’s development.

“To be frank, it is very unrealistic for us to expect 2008 results coming through for 2009. We can’t (be looking at 18% growth),” he said, referring to the 18% jump to RM1.3bil in total approved investments last year compared with 2007.

Datuk Iskandar Mizal Mahmood ... Malaysia still has a good proposition to offer

Nevertheless, “the development of the industry is still there, the numbers coming in are still there,” Iskandar told reporters on the eve of Bio 2009, the annual global conference on biotechnology.

“We still have a good measure of resilience from external shocks ... Malaysia still has a good proposition to offer,” he added.

Although the growth in total approved investments may not match that of 2008, Biotech Corp is still targeting to nurture 50–55 BioNexus-status companies this year, about the same as last year when 50 BioNexus-status companies were set up.

A BioNexus status is equivalent to the Multimedia Super Corridor status where companies get tax breaks and government grants for research. To date, 104 companies have been awarded BioNexus status, with total approved investments of RM1.39bil.

Iskandar also sees a drop in foreign direct investments (FDIs) in the local biotech sector, saying this year’s growth would be driven more by domestic investments rather than FDIs.

Amid the slowdown, Biotech Corp would focus more on accelerating the pace of commercialisation among local biotech companies, he said, adding that a more established technology transfer framework would be set up within three years.

“We look at it as being able to generate economic activities ... not just building the research and development, but also towards turning them into viable businesses,” he said. Bio 2009 started yesterday and ends on Thursday.


For latest Bursa Malaysia indices, charts and other information click here

  • E-mail this story
  • Print this story