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Published on February 12, 2008

As Thailand has a strong biotechnology base, especially in food, biodiversity and healthcare, it could become a hub for biotechnology-business development in the region, said NSTDA's president Sakarindr Bhumiratana.

"There is much more biotechnology-related research work being done within the country and we believe this research could turn into real business," he said.

To help establish a biotechnology industry, NSTDA together with Tcels, a government organisation overseeing the development and investment in life sciences, has collaborated with the BoI to promote investment in this field by designing privileges for those interested in biotechnology investment in Thailand.

The collaboration finally came up with a new investment-promotion programme launched by BoI last year for biotechnology businesses.

Satit Charnjavanakul, the BoI secretary-general, said the board offered privileges for biotechnology businesses through an eight-year tax exemption, while investors would also pay zero tariffs when they imported machinery into Thailand.

Under BoI conditions, businesses which are in NSTDA's Thailand Science Park will also get additional privileges with a 50-per-cent reduction of net-profit tax for five years after the eight-year tax exemption expires.

Satit added that the BoI had also determined four key areas of biotechnology which would get investment promotion privileges. They are seed production or plant and animal breed improvement businesses; bio-pharmaceutical business; medical diagnostic kits, agriculture, food and environment businesses; and biomolecule and bio-active compound production businesses.

"The privileges will encourage investors to use Thailand as a base for biotechnology research and development. We also hope to persuade foreign investors to establish businesses here while encouraging them to join with local companies to develop biotechnology businesses together," he said.

The BoI has already approved investment privileges for a business to produce lactic acid for use as a raw material to produce synthetic components and plastics, a business to produce sugar-free substances and a scientific testing service business, for example.

With efforts to promote biotechnology investment in Thailand, Sakarindr added that there were now around 40 biotechnology-related companies emerging in the country. It's also hoped to encourage the emergence of around 100 to 200 biotechnology-related companies in the next three years. As a channel to promote the biotechnology business, Tcels's CEO Thongchai Thavichachart said the centre planned to set up a new venture-capital fund to make joint investments in potential biotechnology businesses.

"The fund will act like a venture capitalist to look for potential businesses and investment. This will assist new start-ups in the field to continue their business," he said. Tcels is in the process of drafting a plan to send to the government for approval. It's expected that the fund will initially receive seed money from the government and collaborate with other sources of funds to operate the fund.

Pongpen Sutharoj

The Nation