Malaysia Debt Ventures Berhad (MDV) today signed a Service Agreement with Malaysian Biotechnology Corporation (BiotechCorp) to further stimulate the growth of the Biotechnology sector in Malaysia through the Bioeconomy Transformation Programme (BTP). The Agreement Exchange event was witnessed by YAB Dato’ Sri Najib Tun Abdul Razak, Prime Minister of Malaysia at the University of Malaya Research Management and Innovation Complex in conjunction with the BioMalaysia & Bioeconomy Asia Pacific 2014 Conference & Exhibition.
Through the Service Agreement, MDV will serve as the Partner for the fund management in support of the BTP, a program designed to transform Malaysia’s bioeconomy sector by providing a trigger fund of up to 10% from the eligible cost to spur investments in the sector. The fund would enable the companies to commence with their pre-commercialisation of biotech products and projects, while at the same time receiving financial support from other commercial financiers. MDV provides a holistic fund management of financing services, which cover credit evaluation, project risk management and assessment, loan management and recovery services.
Datuk Md. Zubir Ansori Yahaya, Managing Director and Chief Executive Officer of MDV said that the joint effort with Biotech Corp in conjunction with the BTP is a crucial step to developing Malaysia as a global high income bioeconomy in the next few years.
“The BTP is indeed a strategic platform with possibilities and opportunities for the private companies in the Biotech sector to employ, which in return will enable the establishment of a more sustainable ecosystem of the sector, enriching the R&D and commercialisation in wide areas of Biotech including agriculture, healthcare, industrial and many others,” highlighted Datuk Md. Zubir
“To date, MDV has financed 10% – 15% of Biotech projects from our total portfolio. With MDV’s experience and expertise in providing financing services for other programmes, such as Bumiputra Biotechnology & Bio-Industry Development Fund and RMK-10 Pre-Commercialisation Fund, MDV looks forward to assist and facilitate more Biotech companies and projects under the BTP through the Service Agreement with BiotechCorp. As the Nation’s leading technology financier, MDV is in the stance of not just providing the financing facilities to these companies, but also to equip them with other necessary services for long term business’ sustainability. Therefore, MDV is pleased to work together with BiotechCorp in effort to spur the growth of the local biotech industry via the financing and services that we offer,” he emphasised further.
MDV plays developmental roles in assisting technopreneurs to scale up commercially for market access, increase probability to penetrate and meeting up market potential demands, as well as providing funding that will trigger potential commercialisation of products. To date, MDV has disbursed over RM8.5 billion worth of financing to more than 650 technology projects.