VATIS UPDATE Article

A RM100 million fund for biotechnology companies to take their businesses global has been launched at Bank Negara Malaysia’s (BNM) Karnival Kewangan. The government fund, dubbed the Biotechnology Commercialisation Fund (BCF) 2.0, was launched by Science, Technology and Innovation Minister Datuk Seri Wilfred Madius Tangau. He said the funds, which would be given as soft loans, were projected to assist 30 to 50 companies by the end of 2020.

“The government has taken into consideration that bio-based companies require a longer gestation period. As such, BCF shall be offered at a rate of up to 5 per cent interest, and up to 18 months’ grace period on repayment to ease the burden of repayment by companies.” The disbursement of the funds was in its second phase under the 11th Malaysia Plan, which intended to take home-grown bio-based companies to the world stage. Madius said the fund’s first phase was rolled out under the Ninth and 10th Malaysia Plan to provide seed capital for bio-based companies to establish their business and market the products. He said 20 of the 278 bionexus status companies were also being groomed to take their businesses to international markets.

Companies would be selected by the Malaysian Bioeconomy Development Corporation and the funds would be disbursed by the Malaysian Industrial Development Finance. Its chairman, Professor Tan Sri Zakri Abdul Hamid, said that BCF was offered through two schemes to accommodate the diverse needs of bio-based companies.