In Kuala Lumpur, Malaysian Industrial Development Finance Bhd has been chosen to manage the newly launched, RM100-million ($22.4-million) Biotechnology Commercialisation Fund.
The BCF is both a grant and loan program to assist biobased companies in purchasing raw materials, stocks, and consumables, as well as fees such as legal, processing, and stamping.
MIDF will be responsible for approving and disbursing the funds and supervising repayment, where required. The BCF includes a Business Sustenance Scheme with loans for working capital up to RM600,000 and the Bioeconomy Development Scheme for expansion with loans up to RM3 million. Interest rates are up to 5%, with an 18-month grace period.
The government created the fund in light of the “long gestation period required by biobased companies.” BCF is a continuation of the Biotechnology Commercialisation Grant introduced under the Ninth Malaysia Plan.