BIONEXUS APPLICATION AND INCENTIVES 20 th December 2012 Presentation at the Marine Fish Farmers Association (MFFAM) Seminar Penang.

BIONEXUS APPLICATION AND INCENTIVES

20th December 2012

Presentation at the Marine Fish Farmers Association (MFFAM) Seminar

Penang

Organization Structure

International Advisory PanelInternational Advisory Panel

Implementation CouncilImplementation Council

Ministry of ScienceMinistry of ScienceTechnology & Innovation Technology & Innovation

Chairman Board of Directors

CEO

Honorable Prime Minister of MalaysiaYAB Dato’ Seri Najib Tun Razak

Ministry of FinanceMinistry of Finance

Federal Lands Federal Lands Commisioner (JKPTG)Commisioner (JKPTG)

BIOTECHCORP - The Agency

Innovation to create wealth by utilising and advancing biotechnology for socio-economic benefits of the nation in accordance with established social and ethical norms

• Established in 2005• Primary Government Development Agency for Malaysia’s biotech industry• Identify value propositions in R&D and commerce and support these ventures via financial assistance and developmental services.

BiotechCorp’s key mandates

• Act as a one-stop-centre

• Nurture and accelerate growth of Malaysian biotechnology companies

• Create conducive environment for biotechnology

• Actively promote FDI in biotechnology

MALAYSIAN BIOTECHNOLOGY CORPORATIONMALAYSIAN BIOTECHNOLOGY CORPORATION

Position biotechnology as the new economic engine to enhance prosperity and wellness of the nation by 2020 through Healthcare, Industrial and Agriculture biotechnology

Enhance R&D and Tech Acquisition, Human Capital Development, Legal and Financial Structure

VISIONVISION

MISSIONMISSION

BioNexus Status Incentives

INCENTIVES

BILL OF GUARANTEES

TAX HOLIDAY

FACILITATION SERVICES

ONE STOP CENTRE

List of Tax Incentives Available for BioNexusStatus Company

For BioNexus Status Companies:

1.Income tax exemption on statutory income for 10 yearsor 5 years (expansion project)

2.Income tax exemption for qualifying capital expenditure3.20% tax rate after tax exempt period4.Double deduction on expenditure incurred for research & development5.Double deduction on expenditure incurred for promotion of export6.Import duty & sales tax exemption7.Industrial Building Allowance8.Stamp duty & real property gain tax exemption for merger

or acquisition

For Investors / shareholders:

9.Deduction for investment in BioNexus status companies10.Tax exempt dividend income

FACILITATION SERVICES-One stop Centre

For BioNexus Status Companies:

1.BiotechCorp has various divisions and departments eg: Financial transaction, Business Development, Government Liason, Training, BioNexus Development Division, Immigration

2.Work with Economic Corridors such as ECER, NCIA, Iskandar (IRDA), SCORE, SEDIA , Yayasan Sabah etc for incentives, funding, land etc.

3.UniversitiesFor research collaborations, joint fund applications and capacity building

4. Technology partnerships eg. CMDV (Centre for Development and Validation)

5. Funding: Soft Loan

AQUA/MARINE

Breeding

FishAlgae

Crustaceans

SaltwaterBrackishFreshwaterPrawns Crabs

Microalgae

Health

Vaccines

Diagnostic Kits

Feed / Nutrition

MAS/GENOMICS

FOCUS AREA: AQUA/MARINE BIOTECHNOLOGY

Fish Prawns

Macroalgae

Hatchery Broodstock Cultivation

Lobsters

Mollusc

Eligibility Criteria

Establish a separate legal entity for BioNexus qualifying business activities

Provider of Products or Services based on Life sciences or substantially using life-science processes in production or agriculture

Possess capability and conducts research in thrust area and knowledge worker employment

Complies with environmental and ethical laws and guidelines

BiotechCorp to be part of this ecosystem working together with the various stakeholders (DOF, MOA,

Economic Corridors and the industry players, NGOs) to ensure that the aquaculture industry

grows to ensure food security and sustainability and with the highest standards of best aquaculture

practices

Thank You